Wednesday, May 11, 2016

Local contractors nod to JPM directive to real estate developers

DAILY NEWS Reporter
ASSOCIATION of Citizen Contractors Tanzania (ACCT) has welcomed President John Magufuli’s directive to public real estate developers to hire local contractors in their projects.
“This is a historic order that will go a long way in reversing the current dominance of foreign contractors in the construction sector,” said ACCT Chairman Engineer Milton Nyerere in a statement issued in Dar es Salaam.

President Magufuli, speaking at a ceremony to commission two separate multi-storey buildings for the National Social Security Fund (NSSF) and PPF Pension Fund in Arusha on Monday, directed especially public estate developers to give priority to local contractors in the project execution.
“The other day you have NSSF or PPF funded project, make it compulsory to use the local contractors, that is the new direction,” President Magufuli directed.
Engineer Nyerere, in a statement issued in the city, described the president’s stance as a proof that he has the public interest at heart, regardless of international and regional pressure.
“We salute you Mr President! You have vindicated local contractors’ demand for top priority in the execution of multi-billion shilling projects in the country,” said the ACCT boss, noting that the Public Procurement Act, 2011 has a clause that directs public firms to award contracts of less than 10bn/- to local firms.
However, many public firms have been snubbing local contractors, denying them what is their right.
ACCT is optimistic that during President Magufuli’s tenure, many local contractors will sharpen their skills and build a strong financial base to compete even beyond borders. “ACCT wish to assure the President that we will never disappoint him...we plan to convene a meeting to chart-out a strategy of effective use of the opportunity,” said Engineer Nyerere.
Recently while gracing the opening ceremony of the ACCT Annual General Meeting in Dodoma, the Permanent Secretary in the Ministry of Works, Transport and Communications, in charge of Works sector, Engineer Joseph Nyamhanga, said the government effective 2016/17 fiscal year has resolved to offer local contractors lucrative contracts for all public funded projects under his Ministry.
“We in the fifth phase government we have resolved to see projects funded by tax payers money in the Ministry are awarded to local construction firms. The goal is to contribute to steady growth of the local contractors and benefit from home generated financial resources,” noted Engineer Nyamhanga.

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