Tanzania: Dormant Contractors in Zanzibar Put in Line

By Masato Masato in Zanzibar

ZANZIBAR Contractors Registration Board (ZCRB) has threatened to delete from its registry dormant contractors over failure to adhere to industry regulations, including payment of annual fees.

"We have over 280 registered contractors, but majority of them are inactive, they haven't even paid their subscription fees for years," ZCRB Assistant Registrar Engineer Said Omar Fakih told the 'Daily News'.

He, however, pitied some contractors, especially locals, whom he admitted haven't secured any job since their inception.

"We had been lenient because we know the business difficulties they are going through...but we have to observe the regulations as well," the assistant registrar said of the anticipated deregistration.

ZCRB registry has over 280 contractors, with 230 and 50, both local and foreign, respectively.

Unfortunately, the foreign contractors, though accounting for a mere 17 per cent, win the lion's share of over 90 per cent of all contracts in Zanzibar's public and private sectors.

Engineer Fakih said the board contemplates introducing threshold on the value of projects that foreign contractors should qualify to execute, arguing: "Right now, there is no limitation, we have foreign contractors working on even less than 1bn/- projects...this is not fair."

He said the regulatory board has been pushing for the procurement entities to give priority to local companies in the procuring processes, "... the regulatory framework will help to promote the domestic contractors."

ZCRB, according to its second in command, encourages its members to form joint ventures and bid for projects, which individual companies might find difficult to implement.

"The law doesn't provide for joint venture bidding, but we have been allowing our local contractors to join forces because we believe there is strength in unity," engineer Fakih argued.

The contractors' board, which remains at its formative stages, has been conducting a series of training on contract management, tendering procedures and financial management to enhance competence and competitiveness of the local companies in bidding.

Generally, the local contractors who were lucky to secure jobs, performed satisfactorily, according to the assistant registrar. "Our (domestic) contractors are so far doing their best in execution of the works they procure."