Reported by Kerry Howard Mwesigwa
B.I.G Establishments (U) Limited emerged victorious in a civil suit against Uganda Electricity Transmission Company Limited (UETCL) and China Camc Engineering Co. Limited as the Civil Division of the High Court in Mukono ruled that Uganda Electricity Transmission Company Limited (UETCL) must pay Uganda Shillings 440 million in compensation. B.I.G Establishments (U) Limited had filed a suit seeking a declaration that the defendants trespassed on its land and cut down its trees without its consent or compensation.
B.I.G Establishments (U) Limited, a licensee on land at Nama II Kitende Village in Mpoma Parish, had planted eucalyptus trees on the land. However, on 6th February 2017, UETCL informed the B.I.G Establishments (U) Limited that they intended to construct a 132KV Transmission line which would affect part of its trees. In June 2017, the UETCL and China Camc Engineering Co. Limited cut down the eucalyptus trees in order to pave way for the construction of the Mukono 132 KV Transmission Power line without first compensating the B.I.G Establishments (U) Limited.
In their written statement of defense filed on 17th January 2018, the UETCL denied trespass on the plaintiff’s land and contended that compensation was to be made to the plaintiff based on an approved valuation report from the Chief Government Valuer. This suit came up for hearing on several occasions, and both counsel agreed that compensation was to be made to the plaintiff pursuant to the Chief Government Valuer’s report.
The court was availed a valuation report by the Chief Government Valuer dated 12th April 2022, which approved compensation of Ug. Shs 440, 232, 000/= (Four hundred forty million two hundred thirty-two thousand shillings) to B.I.G Establishments (U) Limited. The managing director of UETCL also indicated in a letter dated 1st June 2022 that the B.I.G had already been paid Ug. Shs 209, 599, 000/= (Two hundred nine million five hundred ninety-nine thousand shillings) for 3.89 hectares, and the only balance known to them was Ug. Shs 19, 064, 500/= (Nineteen million sixty-four thousand five hundred shillings) being the value for 0.11 hectares of land.
In his ruling, Justice David Matovu adopted the report of the Chief Government Valuer dated 12th April 2022 and found that the plaintiff was entitled to a sum of Ug. Shs 440, 232, 000/= (Four hundred forty million two hundred thirty-two thousand shillings) as compensation for its eucalyptus trees. If it is true that a sum of Ug. Shs 209, 599, 000/= (Two hundred nine million five hundred ninety-nine thousand shillings) had already been paid to B.I.G as contended by the UETCL, then the BIG is entitled to Ug. Shs 230, 633, 000/= (Two hundred thirty million six hundred thirty-three thousand shillings). The court found that the Mukono 132 KV Transmission Power line was in the best interests of the people of Uganda, including the B.I.G, and for this reason, it did not award any punitive or general damages. The court also awarded interest on the outstanding balance of the compensation sum at the court rate from the date of the judgment until payment in full. B.I.G was also awarded the costs of the suit.
