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Message: [QUOTE="Nehanda, post: 23745, member: 2262"] Court Rules in Favor of Opecprime in Nakawa-Naguru Land Dispute. KAMPALA, Uganda—The Commercial Division of Uganda's High Court has ruled for Opecprime Properties Limited. The case was against the Attorney General and concerned a breach of a Public-Private Partnership (PPP) Settlement Agreement. The Hon. Lady Justice Harriet Grace Magala presided over the case. It concerned developing the Nakawa-Naguru Satellite City, a project that aimed to make the area a modern urban center. The dispute started in 2007. Opecprime Properties Limited and the Government of Uganda had a Public-Private Partnership Agreement. Opecprime was to develop the Nakawa-Naguru area into a satellite city. However, there were disagreements about how to implement the agreement. In 2018, the plaintiffs filed Miscellaneous Cause No. 41, which stopped the government from evicting them or changing the status quo. In 2021, the parties made a Settlement Agreement to settle the disputes. The government had to give the plaintiffs back land titles for 15.629 acres of developed property. The plots were in prime areas like Naguru Boulevard, Eureka Close, and Vanguard Place. They were meant for third-party developers working with Opecprime. But Opecprime said the government broke the agreement. It did not transfer the titles. Instead, it gave parts of the land to other entities. Opecprime filed this suit in 2022. It wanted fixes for the alleged breach. The court proceedings were delayed. The government did not present witnesses or meet submission deadlines. Evidence showed that parts of the disputed land went to other developers. This was against the Settlement Agreement. These companies include: • Karim Somani: Given Plots 30 and 32 on Vanguard Place and three acres on Eureka Close. • Roko Construction Ltd.: Given a seven-acre plot meant for rental housing under the agreement. • Other third parties: Various properties, including villas and developed plots, were also given without following the Settlement Agreement. On May 17, 2024, Justice Magala visited the site. The court-supervised the visit. Magala saw that some properties were developed into townhouses and villas. Others were not finished or were occupied by other entities. Justice Magala found the government breached the Settlement Agreement. "The Defendant failed to give the titles for the properties in Appendix A of the Settlement Agreement back to the Plaintiffs. This court finds that the Defendant breached the Settlement Agreement made between herself and the Plaintiffs on September 17, 2021," Magala ruled. The court also said it is important to keep contractual obligations. The judgment noted the government's unlawful allocations. "The Uganda Land Commission allegedly gave Plot 30 and 32 to one Karim Somani. The Plaintiffs showed no evidence to prove the property was assigned to Karim Somani. But it is on record that the property is not in the names of the Plaintiffs as agreed under the Settlement Agreement." The court awarded Shs 800 million in general damages, which compensated for the plaintiffs' economic loss and inconvenience. "Since 2021, Defendant has failed and/or refused to transfer the titles for properties under Appendix A of the Settlement Agreement. This has crippled the Plaintiffs' plans to develop the Nakawa-Naguru Satellite City. It has put the Plaintiffs at great economic inconvenience," said Magala. The court also awarded Shs 200 million in punitive damages to deter the government's oppressive conduct. The court granted a permanent injunction. This prevents further interference by the government. This ruling shows the importance of enforcing contractual obligations, especially in Public-Private Partnerships. It is not clear if the Nakawa-Naguru Satellite City project will gain new momentum after this ruling. The project has faced delays due to legal and administrative challenges. Investors are likely to see this decision as a positive step. It helps ensure legal protections for private sector participation in national development projects. [/QUOTE]

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