Arua City council rejects construction of Shs 1.2 Bn clock tower
Highlights
- The proposed Arua City Tower is part of the multi-billion Arua Hill Stadium project the then Arua municipality authorities handed over to Development Infrastructure for construction in 2019
By Dramadri Federick
Arua City. The City councilors have rejected the signing of an agreement with Mobile Telecom Network (MTN) to construct a multi-million clock tower under Public Private Partnership (PPP) arrangement.
The proposed Arua city monument at the main roundabout along Pakwach road that has stalled for more than two years since its construction commenced in 2021 under the Development Infrastructure (DI) that signed a Memorandum of Understanding with Arua Municipal Council in 2019.
The rejection arose after councilors were informed that Development Infrastructure and MTN Uganda entered an agreement to complete the construction of the tower.
On 10th August, 2024 MTN Uganda hosted a consultative meeting in Arua city, in which it declared that they had signed an agreement with Development Infrastructure DI and paid Ushs 60 million to fasten the construction of the 49.5 meters high tower.
Components of the tower
According to the plan, the tower will comprise of three giant advertising screens, a museum, a coffee restaurant, and a viewing tower among others. But as DI failed to complete the facility in time, MTN Uganda requested to directly deal with the city council.
Yako Teddy Gloria, the Speaker Arua city council raised concerns over the unclear agreements between MTN Uganda and Development Infrastructure asking the council to go slow with the request from MTN Uganda to avoid legal implications.
“MTN Uganda proved to us that they got into a fresh agreement that the developer DI has now handed over the incomplete work because of financial constraints. We want to see that document in any case there is also need for Arua city council, DI, MTN Uganda and UNRA to sit together. They were already in engagement together, why did MTN come alone?” The speaker asked.
Tabling the matter before the council in an extraordinary council dated 14th October, 2024, Inzikuru Millicent, the Leader of Government Business stated that the joint Finance Committee and Executive committee sitting on 11th October 2024, had approved the partnership with MTN Uganda on condition that it’s for a period of 10 years.
She added that after 5 years of renewal, MTN Uganda takes the responsibility of maintenance and the cleanliness of the roundabout and the surrounding areas.
While Arua City Council shall receive an Annual pay of Ushs 10 million inclusive of 18% VAT and an annual increment of 5% on the principal on top of other cooperate social responsibilities.
Why it was rejected
David Kasyanku, Arua city town clerk said there is uncoordinated transaction between DI and MTN Uganda that the council must take in full considerations before approving the request adding that this might cause financial loss to the council.
We need to look at the copy of the agreement that was signed between MTN Uganda and DI establish the ingredients because MTN Uganda was not party of Arua Municipal council’s agreement with Development Infrastructure.
Kasyanku on the other side castigated the efforts of the former council under the then Arua Municipality for not doing enough in its dealings with Private partners as they signed the agreements.
“When you look at the previous agreements, we do not see where council would benefit. We need to review all the agreements signed by the municipal council and enter fresh agreements and ensure that the council is able to benefit maximally,” Kasyanku said
Whereas Wadri Sam Nyakua, the Mayor of Arua city council applauds the councilors for the unanimous decision taken, he asked for forensic audit of the transactions between MTN Uganda and Development Infrastructure.
“We want to do it transparently as possible so that when MTN Uganda, DI and the City Council Sit, we have a leveled ground,” he said.
Nyakua further stretched that they expected the MTN Uganda and DI to submit the disagreement prove and other relevant documents before the matter was brought before the attention of the City Council.
By press time, the DI officials had not responded to the council decision.
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