Tanzania: State Asked to Think of ACCT Interests in WB Funded Projects

THE government has been asked to ensure local contractors are given a share in World Bank (WB) funded projects because they are capable of handling them.

Association of Citizen Contractors Tanzania (ACCT) expressed concern that the government had

repeatedly been allowing foreign registered companies to bid for the projects contrary to law.

ACCT Chairman and Director for Technics Construction Group Ltd Tobias Kyando said it was taxpayers who repaid the money to WB and the government shouldn't allow what local contractors were capable of doing to be done by foreign companies.

"The law says all projects worth less than 10bn/- must be implemented by local companies. Why is it that this law doesn't apply with WB funded projects?" he queried.

Thus, ACCT appealed to the government to make amendments to the Contractors Registration Act, 1997 by inserting a clause that would oblige foreign contractors to collaborate with local firms in all stages of project implementation.

Mr Kyondo explained that local firms should be given at least 15 per cent of the jobs.

Local contractors are also concerned with the Tanzania Revenue Authority (TRA)'s habit to withhold payments even after a local firm has completed a project.

They told reporters in Dodoma yesterday that the Act derailed their progress in favour of foreign firms.

"We also ask the Contractors Registration Board (CRB) to make reforms in the criteria used to classify contractors from current hardware (equipment) based to knowledge (technical and software) based," a statement from contractors availed to 'Daily News' yesterday said.

It adds: "Local contractors have to be supported by the government to ensure they advance and operate beyond their current borders."

ACCT suggested, however, that the government should establish a bank to fund construction projects and local engineers.

For his part, Permanent Secretary in the Ministry of Works, Transport and Communications in charge of works Elius Mwakalinga said the government had been taking steps to address challenges faced by local contractors, including holding joint meetings with both parties.

"We understand their challenges such as delayed payments, but we're working hard to address them. Last month alone the government released over 100bn/- to settle outstanding debts for contractors and engineers who had implemented some projects," he said.