BUJUMBURA July 5th (ABP) – The Cabinet met on Wednesday, June 29, 2022, under the chairmanship of the Head of State, Mr. Evariste Ndayishimiye, to analyze several items, in particular the draft decree on the cancellation of an exclusive license in favor of the PROCERV company as management authority in accordance with the contract on the establishment, operation and management of the Warubondo Special Economic Zone, signed on May 16, 2018 between the Government of Burundi and the PROCERV company.
On May 16, 2016, the Government of Burundi signed a contract with PROCERV for the establishment, operation and management of the Warubondo Special Economic Zone. Since the signing of that contract, it is clear that the company PROCERV has not honored its contractual obligations so that the special economic zone is not yet operational until today.
However, under the terms of that contract, PROCERV had undertaken to begin activities to set up the zone within a period not exceeding three months after the signing of the contract.
On March 23, 2021, a formal notice was sent to PROCERV to remind it to honor its obligations. On September 8, 2021, the Cabinet analyzed a note on urgent measures to be taken to prevent a possible malfunction of the Warubondo Special Economic Zone, and the following decisions were taken.
The ministry in charge of trade, in collaboration with the ministry of justice, will terminate the contract between PROCERV and the government of Burundi for non-compliance with the terms of the contract by the company PROCERV. Whoever built the market in the area will sign another agreement with the new acquirer. It is necessary to prepare the legal framework governing the special economic zones and proceed with the servicing of the site.
The ministry in charge of trade, in collaboration with that of infrastructures and that of hydraulics, will draw up a plan for the development and occupation of the Warubondo site according to the sectors of activity. In order to implement those recommendations, that contract was terminated on April 18, 2022 in order to entrust this project to a new acquirer who would have the technical and financial capacities. To materialize this termination, it is necessary to cancel the concession of the Warubondo site which had been granted to the company PROCERV and by the withdrawal of the exclusive license conferring management authority on the company PROCERV. It is in that logic that the draft decree was drawn up.
After discussion and debate, the Cabinet recommended revisiting the contract to analyze in depth the commitments of each party and systematically verify the shortcomings of each of the two parties. It is only at the end of this work that the file will be brought back to the Cabinet Meeting.
The Cabinet also analyzed a note on the project to set up a legal framework for the EAC dialogue committee, Burundi chapter.
The treaty establishing the East African community stipulates that the partner countries of the community undertake to promote permanent dialogue with the private sector and civil society at national and regional levels, to contribute to the implementation of the decisions agreed in framework for the implementation of projects and programs of the East African community. That dialogue is part of the multi-party partnership, and aims to ensure that the process of integration of the East African Community takes place with the participation of the citizens of the partner countries of the East African Community. The creation of a framework for permanent dialogue with the private sector and civil society is in accordance with the directive of the nineteenth meeting of the East African Community Council of Ministers, which recommends to the General Secretariat of the latter to implement the treaty creating the community.
The 26th meeting of the East African Community Council of Ministers adopted the creation of a consultative dialogue framework which is a framework for exchange between State actors, the private sector, civil society and other interest groups on the community integration process. The structure for the dialogue provides for national dialogue committees, coordinated by the ministries responsible for EAC affairs on the one hand, and a regional dialogue committee coordinated at the level of the general secretariat of the East African Community on the other hand.
The note proposes the composition of that committee and also proposes that the legal framework be put in place by decree or ordinance of the Prime Minister. Following the analysis, the Cabinet approved the establishment of that legal framework by ordinance of the Prime Minister, with some modifications and adjustments to the composition of the committee.