Thursday, February 27, 2020
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President John Magufuli has said selfishness was at the heart of reasons why local contractors fail to win tenders for big-value public works projects, TPJ has learnt.

The president, who was addressing the concerns of a construction sector stakeholder  in Dar es Salaam recently that local contractors were being sidelined when it came to major public works projects, said local contractors needed to see value in forming joint ventures as a necessary first step in winning big construction contracts.

Dr. Magufuli took issue with what he called selfish tendecies among local contractors, saying it was time they learnt to follow the trend of construction business elsewhere in the world where a project could be taken up by a joint venture made up of even seventeen firms.

"The problem with local contractors is that they never want to work together as a group," the President told the gathering of businessmen and women at the State House adding that they awere always quick to shift blame on to the authorities when they did not succeed.

Dr. Magufuli said he had expected the implementation of the Mbutu Bridge project, which was undertaken by a joint venture of local contractors, would inspire more such undertakings, but noted with concern that by the time the next big project came up, only four or five members of the ten-member group remained to form a joint bid.

He said formation of joint ventures remained the only realistic means for local contractors to be competitive as legislation was in place to support them adding that the arrangement was common elsewhere in the world.

The president said local contractors' fortunes have somehow improved in recent years following the provision requiring all road projects using funds from Road Fund to be undertaken by local contractors. 

However, the President also said he was aware that local contractors were being hampered by the need for guarantees and conceded that some areas within the Government could be to blame for some of the local contractors' woes.

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