Constitutional Court Dismisses Petition Against Parliament’s Guarantee for International Specialized Hospital of Uganda
Constitutional Court Dismisses Petition Against Shs 1.4 Trillion Loan Guarantee for International Specialized Hospital of Uganda
The Constitutional court has made a landmark decision by dismissing a petition filed by civil society organisation, Initiative for Social Economic Rights (ISER), seeking to stop parliament from guaranteeing Shs 1.4 trillion to an Italian investor for the construction of the International Specialized Hospital of Uganda (ISHU) in Lubowa.
In a unanimous ruling, the Constitutional court justices stated that parliament passed a resolution after the ministries of Health and Finance entered into a direct agreement for the financing of the loan, as required by Article 159 (5) of the Constitution. The petition was dismissed on the grounds that the necessary approval had been granted by parliament before the loan guarantee came into effect.
The project to build and manage specialized healthcare facilities at Entebbe Grade A hospital and the Uganda Cancer Institute was initiated in February 2013 when FINASI made a proposal to President Yoweri Museveni. The government then entered into agreements with ISHU and Finasi/Roko Construction Special Purpose Vehicle Limited for the construction of the hospital.
Despite some opposition and concerns raised by ISER regarding transparency and citizen participation in the project, the court ruled that the government had followed the proper procedures in obtaining the loan guarantee. The justices emphasized that the loan was obtained under the Public Finance Management Act and that parliament had approved the necessary resolutions.
This decision marks a significant outcome in the ongoing debate surrounding public-private partnerships and healthcare infrastructure development in Uganda. The construction of the International Specialized Hospital of Uganda in Lubowa is set to continue as planned, bringing hope for improved healthcare services in the country.