Finance Minister Matia Kasaija Issues New PPDA Regulations

The Government has issued a new set of regulations to guide public procurement and public assets disposal in the country effective 5^th February 2024. The issuance of these regulations has been occasioned by developments in the legal framework governing public procurement and public assets disposal processes as indicated below.

In 2003, the government enacted the PPDA Act as the principal law for guiding and regulating practices in respect of public procurement and asset disposal in Uganda.

The Act came into force on the 21^st of February, 2003, and has since been amended twice in 2011 and 2021.

 The 2021 amendment was assented to by His Excellency the President on 1^st June 2021 and it came into force on 1^st July 2021. It introduced new provisions, to govern the public procurement and disposal of public assets process.

The PPDA (Amendment) Act, 2021 provided for the following:

1. Reduced tiers in the Administrative Review process from three to two. Aggrieved bidders in the procurement process will no longer appeal to the PPDA but rather to the Accounting Officer and the PPDA Appeals Tribunal;
2. Reservation of selected procurement opportunities for Small and Medium Enterprises and Special Interest Groups. This is aimed at promoting local companies and business persons to benefit from public procurement opportunities;
3. Incorporation of sustainable public procurement;
4. Provision for the electronic records and communication; and
5. Amendment of the KCCA Act and Local Governments Act with respect to procurement and disposal-related proceedings.

In addition to the new provisions, the amendments also necessitated the revision of the PPDA regulations that had been issued in 2014 for central government entities and 2006 for local government entities.

It is against this background that after the requisite extensive consultations, new regulations were developed and gazetted on 8^th December 2023, and are to be applied across all government agencies effective 5^th February 2024

 The objectives of the new regulations:

1. To harmonize the PPDA Regulations. The Government will henceforth use the same Regulations for both Central Government and Local Government Entities. The Local Government (PPDA) Regulations of 2006 were therefore revoked;
2. To create efficiency in the procurement process through reduction of procurement lead times;
3. To promote the use of procurement as a social-economic tool and to practice sustainable procurement. In other words, all public procurement and disposal activities must now be subjected to scrutiny for Environmental, Social and Health Safeguards (ESHS); and
4. To simplify procurement and reduce the cost of doing business without compromising quality.
5. To provide for Procuring and Disposing Entities sourcing for equipment directly from manufacturers. (Aviation equipment, medical equipment and agricultural and industrial equipment)

 THE PPDA REGULATIONS 2023

Of the twelve PPDA Regulations of 2014 and 2006, the government amended seven Regulations, revoked the PPDA (Local Governments) Regulations, 2006, and retained four and developed two new regulations.

 The amended regulations in the seven categories include:

1. The PPDA (Procuring and Disposing Entities) Regulations, 2023;
2. The PPDA (Rules and Methods For Procurement Of Supplies, Works And Non-Consultancy Services) Regulations, 2023;
3. The PPDA (Procurement of Consultancy Services), 2023;
4. The PPDA (Disposal of Public Assets) Regulations, 2023;
5. The PPDA (Evaluation) Regulations, 2023;
6. The PPDA (Contracts) Regulations, 2023; and
7. The PPDA (Administrative Review) Regulations, 2023

The revoked:

• The PPDA (Local Governments) Regulations, 2006.

The retained regulations:

1. The PPDA Regulations, 2014
2. The PPDA (Force Account Mechanism) Regulations, 2014,
3. The PPDA (Procuring and Disposing Entities Outside Uganda) Regulations, 2014; and
4. The PPDA (Procurement of Medicines and Medical Supplies) Regulations, 2014.

  The new regulations:

1. The Public Procurement and Disposal of Public Assets (Procurement Planning) Regulations 2023 to guide the process of procurement planning; and
2. The Public Procurement and Disposal of Public Assets (Negotiations) Regulations, 2023 to guide the process of negotiations before a contract can be signed

 CONCLUSION

Effective 5^th February 2024, the public procurement and disposal of public assets system in Uganda shall be conducted in accordance with the PPDA Act, 2003 and the PPDA Regulations 2023, and the retained PPDA Regulations 2014.