Africa-Press – Tanzania. INCREASING local content in the procurement of infrastructure projects in Tanzania has received a major boost, with the government committing to reserve some mega projects only for local contractors.
This move targets to build the capacity of local contractors, improve the local economy, lower project costs as well as ensure infrastructure is well maintained.
The commitment was given over the weekend in Mbeya by Works and Transportation Minister Dr Leonard Chamuriho while closing a two-day consultative meeting with 300 local contractors of Southern Zone, organised by Contractors Registration Board (CRB).
“We will continue with our mission to reserve some construction projects to be implemented by local contractors, as a strategy to build their capacity, so that they can be able to perform big projects like Standard Gauge Railway (SGR) and Julius Nyerere Hydro Power Project (JNHPP) in the future,” he promised.
The minister said the government will be happy to see all big construction projects are implemented by local contractors instead of foreigners.
He also commended the job well done by CRB for regular capacity building programmes to local contractors.
Chamuriho said if that dream will come true, the government will save a lot of money that goes outside the country because currently, many of big projects like JNHPP and SGR are implemented by foreign contractors because local contractors lack capital and enough human resource.
“As things currently stand, the procurement of infrastructure projects does little to benefit local consultants, contractors, suppliers and manufacturers,” he admitted.
“I congratulate CRB for these commendable initiatives of nurturing our local contractors, you have been regularly organising consultative meetings like this where they exchange ideas and expertise as well as speak about their challenges…
We will work on all your challenges,” said Chamuriho. He said the government is not pleased to see its strategic projects like JNHPP and SGR are implemented by foreign companies, adding that there is a need to build capacity of local companies to do that in the near future.
He told local contractors that when they are awarded tenders they have to make sure value for money is adhered to and they complete projects on time as it is stated in the contract of the project they have signed.
The CRB Chairperson, Engineer Consolatha Ngimbwa said the current trend by the government to implement its construction projects by using force accounts put local contractors in danger and she asked the government to reverse the plan to help them acquire tenders.
She said there were complaints that local contractors bid high during tender processes while some were not competent in filing tender applications, but the CRB had done enough to address that challenge.
“Honorable minister, the stage we have reached now is promising… We’re requesting the government to trust us and give us construction projects because I am sure we are going to implement them effectively and on time because we have conducted training all over the country and now they are competent enough,” said Eng Ngimbwa.
She advised local contractors to go for joint ventures, so that they can be able to get enough capital that will enable them to implement big projects.
Eng Ngimbwa said there are some local contractors who tried joint ventures and did better in the beginning but ended in mess due to selfishness.
She added that local contractors have agreed to establish a bank that would help them to secure startup funds when they win construction tenders. Eng Ngimbwa pleaded for unity among contractors to achieve their goals.
“We have many contractors associations, which I think is not good for us. We must unite and come with one strong association which would have a strong voice when we negotiate with the government.
Even the bank we wish to establish today, we cannot make it if we are not united,” she insisted.
The need to increase local labour, goods and services, ‘local content’, in the delivery of infrastructure projects in developing countries is an issue recognised by the multilateral development banks, the World Trade Organisation and all the major UN agencies.
Increasing local content in the delivery of infrastructure projects can make a major contribution to the achievement of the UN’s Millennium Development Goals.
