Dar es Salaam. Local companies won tenders worth Sh349.02 billion in the standard gauge railway (SGR) project from January to December 2020, according to the National Economic Empowerment Council (Neec).
Foreign firms secured Sh349.67 billion worth procurement opportunities during the same period of that year.
Tanzania is implementing the first phase of SGR that stretches from Dar es Salaam to Mwanza, about 1,342km and projected to to cost $6 billion. The project attracts domestic and foreign bidders to supply construction materials for the project.
Speaking during the breakfast debate organised by Policy Forum at the weekend, the Neec empowerment officer at the section of citizen participation in strategic projects, Ms Minaeli Kilimba, said during that period the project floated 769 tenders that were open to all bidders--domestic and foreign.
“Of all the tenders, 708 were won by local firms, while the remaining 61 were won by foreign companies,” she said.
In her presentation dubbed: Citizen’s participation in strategic projects, Ms Kilimba said the government through the Tanzania Railway Corporation (TRC) agreed with the contractor to procure quality raw materials manufactured locally.
“Kamal Steel Limited, Lake Steel Limited, Lodhia Plastic Industries Limited, Nayan Enterprise, Puma Energy Tanzania Limited are among the beneficiaries,” she said.
She said 8,169 skilled Tanzanians aged between 20 and 35 were employed by the project during the said period, noting that 5,088 and 2,247 were also recruited between 35 and 45 as well as above the age of 45.
Furthermore, she said 1,910; 844; and 406 semi-skilled citizens from the three respective age groups were also employed by the project.
“At least 2,992; 809; and 232 unskilled citizens from the respective three age groups have in the SGR project,” said Ms Kilimba.
According to her, increased number of Tanzanians in the employment area and trading of commodities and services was among the commission’s achievements.
Others are preparation of the national guideline for Tanzanians participation in economic activities, training and stakeholders’ participation in different strategic projects such as the East African Crude Oil Project (EACOP).
“Also, we have managed to carry researches on participation of Tanzanians and formulate entrepreneurs training guideline as well as a database of service providers,” she said.
She outlined recorded challenges including lack of skilled and experienced businessmen in implementing large projects, lack of soft skills and internationally accredited Tanzania workforce and service providers.
Others are lack of products and services meeting international standards, policies’ failure to prioritize involvement of Tanzanians in respective sectors leading to coordination of local content in the contracts only.
“Low participation of women in the projects, insufficient financial resources and Neec working equipment are the other challenges,” she said.
According to her, others are the difference of salaries between local and foreign workforces and lack of sufficient capital to allow locals to compete for large tenders.
For her part, Save Group chairperson, Ms Salome Joseph wants strong involvement of Local Government Authority (LGA) leaders in distribution of information related to available opportunities in order to reach and allow participation.
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