THE government has reiterated its commitment to reserve multi-billion shilling construction projects funded by the country’s taxpayers, for qualified local contractors.
This was said here over the weekend by
the Permanent Secretary in the Ministry of Works, Communications and
Transport in charge of Works sector, Engineer Joseph Nyamhanga, when
officiating at the opening ceremony of a two- day Annual General Meeting
(AGM) of the Association of Citizen Contractors Tanzania (ACCT).
According to Engineer Nyamhanga, the
move’s implementation starting this fiscal year is part of a national
strategy to promote local contractors. “The government is duty bound to
see local contractors enjoy conducive environment to enable them become
competitive, able to fight for their rightful share in the nation’s
construction industry,” he hinted.
Engineer Nyamhanga further revealed that
as for bigger, multi-billion construction projects demanding
specialized skills yet to be implemented out of a locally raised
financing the government too looks out to come up with a mechanism
demanding a joint venture between foreign and local contractors.
“We are proud in experimenting this
because our adopted strategy proved a success at the Mbutu bridge in
Igunga district, Tabora region where 13 local contractors teamed up to
undertake over 10 billion shillings valued project.
It was a dream come true as the
contractors successfully implemented the project at a lesser cost
compared to the cost which was to be involved if foreigners were to win
the tender,” the PS said.
Engineer Nyamhanga further noted that in
the adopted strategy aimed at nursing and promoting local contractors,
the state too has come up with a decision to offer the firms with
guarantees of the agreed project cost to enable them avoid harsh and
damaging commercial banks loans requirements.
“One of the aspects which used to knock
out local firms in bidding for multi-billion shillings projects was the
obligation for them to raise cash on their own means to invest in
implementing the projects.
Given commercial banks quest for profit
and the rigid payment system in state funded projects, local contractors
always found themselves in the receiving end of the banks with
sometimes paying the total sum earned out of the implemented project to
the banks as interest arrears,” noted the Engineer.
Commenting on the state move, a
construction industry insider who preferred anonymity said the move is
perfect despite the fact that it will be a radical one and may affect
Tanzania’s relations with some developed nations as their firms will be
the major losers.
“The move if implemented will shut-out
several wealthy, big foreign contractors particularly those from China
which for over a decade have enjoyed a lion’s share of Tanzania’s ever
growing yearly construction sector budget.
Earlier, speaking at the meeting, ACCT
Chairman, Engineer Milton Nyerere, hailed President Magufuli
administration for doing right in reshaping the country’s fortunes and
working hard to regain the country’s credibility and promoting better
and strict state finance practices.
Engineer Nyerere saluted every move
taken by the administration saying not only contractors or well to do
people who are out to benefit from the nationalistic moves being
implemented by the state rather every Tanzanian is set to enjoy the
goodies delivered by the sitting government
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