PRESIDENT John Magufuli has urged local contractors to be patriotic; promising that his government will give them priority in public-funded projects provided they meet required conditions.
Dr Magufuli made the remarks yesterday
when opening a twoday Contractors’ Registration Board (CRB) Annual
Consultative Meeting that has drawn more than 1,000 contractors,
consultants and other stakeholders in the construction industry.
“I will give directives to all ministers
to emulate the Ministry of Works, Transport and Communication, which
ensures that a big percentage of public funded projects go to local
contractors.
But you also must discuss problems that
lead to you failing to get government projects,” he advised. President
Magufuli noted that there were many challenges facing the construction
sector; some of which were caused by the contractors themselves,
including failing to enter into joint ventures to win major government
tenders.
He said most local contractors provide
unrealistic estimates that make it difficult for the government to
favour them. The president cited an example of estimates provided by
local contractors to tenders announced by the Judiciary, which had a
budget of 24bn/- and wanted to build primary and district courts. In the
estimates, one building cost no more than 200m/-.
“One of the contractor had an estimate
amounting to 1.4bn/- while the one with the least estimate came up with
670m/-. Even if the government wants to favour you, it would be
impossible,’’ he explained.
The president said that contractors must
have the desire to work for the benefit of the country for the
government to be able to help them. “Patriotism must be above all else.
Provide viable estimates; get a small profit and build your reputation
in the industry,” he advised.
He called on contractors to report any
government officials asking for bribe during tendering processes, noting
that this could also be one of the reasons why the contractors are
providing higher project estimates.
He also noted that late payment for the
projects by the government could also be another reason. Dr Magufuli
introduced the Director-General of the Prevention of Combating
Corruption Bureau (PCCB), Mr Valentino Mlowola, to CRB as the contact
person when reporting corrupt government officials and if the
contractors felt they could not trust other PCCB officials.
“I trust Mr Mlowola. I know you did not
invite him here but I brought him along with me because I know the
degree of corruption in the sector. If you feel you don’t trust the
other PCCB officials, go straight to him,” he advised.
On the late payments for the projects,
the president said that the shortcoming is now history. “My government
has started paying what it owes in the construction projects. We have
already paid 650m/- and another 460m/- from the Road Fund.
We will clear all outstanding debts in
the sector,” he pledged. The president urged the contractors to discuss
how they can access opportunities from major economic projects,
including the 1,410km Uganda Oil Pipeline from Hoima to Tanga,
1,200kmcentral corridor standard gauge railway line that will link
Mwanza, Kigoma, Burundi and Rwanda.
Dr Magufuli expressed shock when the CRB
indicated that they did not have the agenda on major projects expected
to begin in the next financial year up for discussion on how local
contractors can access the opportunities that will come along with the
projects.
The president said the government has
set aside funds in the national budget for construction of 100km of the
1,200-km central corridor Standard Gauge railway line, wondering how
local contractors are planning to access the opportunities. Other funds
will be provided by China in the construction of the 1,200-km Standard
Gauge railway line.
He urged them to put aside their
differences and work together in joint ventures, Public Private
Partnership (PPP) projects and help each other when filling tender
documents and get the right budget estimates, to be in a better position
to get major projects in the country.
“What are your plans in ensuring that
local contractors play a major role in the construction of these major
projects that my government has worked tirelessly to acquire? I will be
very sad if there will not be any local contractor in these major
projects even to supply water, sand or gravel,” he said.
He noted that corruption was a major
stumbling block in the construction industry, which made young people to
shun the profession. Currently, the ratio in the country is 1
contractor to 6,000 Tanzanians while in other countries like Japan it is
1:50.
He promised to employ more young men and
women in his government who have shown him that they loathed corruption
and did not waver in upholding the country’s laws. “I have noted a
major impact where youth are involved.
I will employ more youth because many of
them do not like bribes. They loathe corruption. We, the elderly, are
the ones who were destroying this nation,” he noted.
President Magufuli vowed to fight
corruption in the country, noting that in the few months he has been in
office he has noted an increase in the number of international investors
showing interest to invest in the country, citing a German investor,
who is investing in fertiliser industry in Kilwa that will be the
largest in East and Central Africa.
“I have seen major changes and I will
not stop... those who thought that I will slacken my resolve are in for a
surprise. This is just the beginning. It is because of God that I am
the President of Tanzania and not anyone else so I will not fear
anybody.
I am ready to sacrifice my body for the
people of Tanzania,” Dr Magufuli stressed. Works, Transport and
Communications Minister Professor Makame Mbarawa promised that
public-funded projects will go to local contractors who will meet the
required conditions, stressing, however, that all projects must be
implemented as per contract agreements
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