BUDS funded by
DFID
YOUR PARTNER IN PRIVATE SECTOR LED DEVELOPMENT
CLIENT LETTER OF AGREEMENT
This Letter is the Agreement between ……………………………………………………………………..…henceforth called
the Client, and the Business Uganda Development Scheme, henceforth called BUDS, for the payment of grant
assistance, following the approval on ..................................... of Grant Application No. …………………….
The Agreement is formulated under BUDS which has been established with the aim of promoting and improving
performance and skills of Uganda based private sector firms and associations active in industrial, trading, commercial
farming and business support services. The scheme is implemented by the Private Sector Foundation Uganda
(PSFU),utilising funds provided by the Department for International Development (DFID) through the Office of the
Prime Minister (OPM).
1. The approved cost-sharing relates to the grant application number noted above. The financial assistance which is
the subject of this Agreement covers the eligible activities and approved budget detailed in that application. This is
attached to this Letter of Agreement as Appendix One and is considered an integral part of this Agreement.
2. In the event of a group membership activity, the signatory of this Agreement, acting as the Client, accepts full
responsibility for the financial management of the approved activity and for meeting the requirements of BUDS to
qualify for grant assistance.
3. Under this Agreement, BUDS agrees to reimburse the Client; a maximum of 60%, on all eligible costs as agreed
upon for the approved activity. The total BUDS reimbursement amount shall be
up to a maximum of Ushs (in figures) …………………………………………………………………………….....
(words) …………………………………………………………………………………………………………………..
Such payment is dependent on:

this Agreement having been signed by the client and returned to BUDS

the Client having received and BUDS having verified the deliverables which are specified in the approved grant
application, and these being satisfactory to both.

the Client having made the payments detailed in this Agreement and these having been certified by a legal
representative of the client firm signed and returned to BUDS

Any payment made by the client in respect of this activity prior to the agreement shall not be included in this
agreement, nor may they be reimbursed.
4. This Agreement commences on receipt of it by BUDS, signed by both parties. It is the responsibility of the Client
to ensure such receipt.
5. Implementation of the approved activity can be undertaken on commencement of this Agreement. It shall be
completed by …………………………………………. the termination date specified in the grant application, on
which date this approval lapses and the funds may be de-committed and reallocated. (See paragraph 6 below.)
6. No changes or time extensions may be made to the approved activities without the formal and written advance
approval of BUDS. Approval shall not be given retrospectively, and failure to get approval may invalidate the entire
Agreement.
MANAGED BY THE PRIVATE SECTOR FOUNDATION UGANDA, PSFU
Plot 43 Nakasero Road, P. O. Box 7683, Tel. 0312-230985, 0312-263850, Fax: 0312-266440, Kampala
BUDS funded by
DFID
YOUR PARTNER IN PRIVATE SECTOR LED DEVELOPMENT
7. Applications for payment must be made within two months of the activity completion date, stated in 5 above.
Failure to do so may result in de-commitment reallocation of the funds. Any extension of the payment date
requires the written agreement in advance to, and, acceptance
8.
Provided they are in accordance with the General Regulations and the terms of this Letter of Agreement,
satisfactory applications for payment of approved expenditures will be reimbursed within fifteen (15) working
days.
9.
BUDS undertakes to maintain strict confidentiality on all aspects of any grant application and no aspect of it or
of the approved activities or anything arising from these will be divulged to any third party. All materials,
printed or otherwise, arising from the execution of the activity are the property of the client. Any reports or
documents submitted by the Client to BUDS to support an application for payment will be retained by the
Scheme for accountability purposes. Where a beneficiary specifically expresses interest in obtaining
originals, a formal request has to be made and certified copies of the same attached. The client is obliged to
retain deliverables for a minimum period of 3 years after the grant and to make them available to the project
officers on demand.
10.
In its agreements with service suppliers, the client will include a clause that BUDS or those authorised by
them may at any time verify outputs and payment receipts related to this agreement. Further, the Client
agrees and declares that, to the best of his knowledge, the consultant(s) being contracted is/are not active
civil servant(s).
11.
In accepting financial assistance from BUDS, the Client and its supplier(s) agree to co - operate in any
confidential survey of the operations of the Scheme designed to monitor the schemes progress. BUDS
reserves the right to publish data on the progress of the Scheme in an aggregated manner, in such a way that
no single firm is identifiable. All company data provided will be confidential to BUDS and will not be divulged to
any third party. BUDS may, at any time during the execution of the approved activity, seek information on its
progress, which the client will give. Normal confidentiality provisions will apply. If, for promotional purposes,
BUDS wishes to portray a given client’s “success story”, permission will first be requested of the client.
12.
In the event that the Client and/or service providers commit fraudulent acts related to this Agreement it agrees
that details of such acts, including the names of individuals, may be published in the national press. Signature
of this agreement binds the Client to advise suppliers of this clause.
13.
The Client agrees and declares that DFID, the PSFU and any other institution related to the BUDS is and are
totally and absolutely free of any form of responsibility for any act, relation or deed in which the Client and its
supplier/s may be part.
15.
In signing this letter of Agreement, the Client, the Client’s service provider(s) and BUDS, accept and submit to
each and every provision of it. In the event that a dispute arises at any time over any aspect of this letter, by
the Client accepts that the General Regulations of BUDS have over-riding authority.
Please sign one copy of this agreement, initial it and the attached Appendix on each page and return the document to
BUDS. Please retain the other copy for your records.
For the Client:
Signature
For BUDS
Signature
………………………….
Manager, BUDS
Name/Title:
Date:
Cc: Client’s consultants (tick)
MANAGED BY THE PRIVATE SECTOR FOUNDATION UGANDA, PSFU
Plot 43 Nakasero Road, P. O. Box 7683, Tel. 0312-230985, 0312-263850, Fax: 0312-266440, Kampala