{UAH} Why would any government official sign such a deal?

Why would any government official sign such a deal?

Section 12.1 of the support agreement between government and Umeme Ltd, provides that even if Umeme defaulted in carrying out its obligations as stipulated in the agreement and initiated the termination of the agreement, government would still have to pay the company a buyout amount.

If government terminates the contract now, it will have to pay Umeme $147.6million (Shs 371bn). This amount has to be paid within 91 days and short if this, it will attract an interest of 20 per cent per annum.

On the other hand, if Umeme initiated the termination, government would have to pay it $129.5 million (Shs 325.7bn).

Now, MPs think terminating the contract is the only "viable option we have got as Uganda because the longer we stay in it, the higher the cost we shall incur the moment the contract is terminated.

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