Contractors urged to form joint ventures for projects
What you need to know:
- It is imperative that local companies go for joint ventures so that they can be able to get financial and human capital with which to undertake big construction projects
Arusha. The government yesterday counselled local contractors to form joint ventures that would help them to win tenders for the construction of strategic projects, which are currently being implemented by foreign firms.
The deputy minister for Works and Transport, Mwita Waitara, said this, noting that the government is not happy to see all major construction projects being executed by foreign companies when Tanzania has “enough experts.”
Speaking during the opening of a Consultative Meeting between Contractors Registration Board (CRB) and local contractors, he also warned local contractors against bribing officials when they apply for construction tenders.
Mr Waitara said the government wishes to see all big projects that cost trillions of money are implemented by local contractors so that the money remains in the country.
“I want to assure you that there is no single government official who is happy with this trend. We are not happy at all to see all big projects are implemented by foreign companies because we work tirelessly to collect revenues, but we easily export our money and that does not augur well for our economy,” stressed Mr Waitara.
He said if the local contractors will opt for joint ventures, they will win all big construction projects and the money will remain circulating within the country.
Tanzania’s strategic projects - such as the modern Standard Gauge Railway (SGR) and the Julius Nyerere Hydro Power Project (JNHPP) which cost trillions of shillings - are being executed by foreign firms.
He recalled his previous visit to a construction site in Tanga where he was surprised to see over 90 percent of the experts at the project were locals, with only two Chinese experts.
“If that is the case, why should they use our experts who are paid little to generate those trillions? I am confident that we can make it - but only if we put aside selfishness,” he said.
The CRB chairperson, Ms Consolata Ngimbwa, asked the government to consider local companies when awarding tenders, saying they are currently facing financial difficulties.
She also urged the companies to go for joint ventures so that they can be able to get finance and human capital to implement big construction projects.
