TANZANIA Private Sector Foundation (TPSF) has praised the government’s efforts towards enforcement of the Public Procurement Act of 2011, of which some sections directs the grant for a margin of preference to local contracting firms.
The Act directs that all development projects whose capital does not exceed 10bn/- should be granted to locals, said the Foundation’s Board member, who also doubles as Managing Director for Advert Construction, Mr Dhruv Jog.
He told media practitioners yesterday in Dar es Salaam that, in a while ago, TPSF wrote to the Public Procurement Regulatory Authority (PPRA), requesting the practice for the grant of a margin of reference as per the law.
In a response, according to him, PPRA admitted that the Act was well stating that all projects whose investment not exceed 10bn/ should be granted to locals, but the problem was on the implementation of the law.
He added that, the Act’s enforcement will not only promote local contractors but also timely implementation of development projects as well as creating competitiveness in the sector between foreign and local contractors.
“Failure in the implementation of the Act has been triggering corruption when the local compete for tenders. The situation also led in to either incompleteness or sub-standard of the projects,” he said.
The PPRA letter to TPSF issued on 30th August this year stated that, section 55 (1) of PPA, 2011; Regulation 37,39 of PPR 2013 require procuring entities (PEs) to reserve procurement of goods, services and works to local firms for which financial resources are exclusively provided by a Tanzanian public body.
The procurement law under section 54 (2) and (3) of PPA, 2011; PPR Regulation 38 of PPR 2013 requires PEs to grant a margin of preference to locals when procuring goods, services and works by means of international or national tendering.
“PPRA would like to inform you that, the provision of the Public Procurement Act number 7 of 2011 (PPA), amendment (Act) 2016; Public Procurement Regulations 2013, Amendment (Regulations) 2016 are self-explicit on issues related to preference to local suppliers, service providers and contractors,” read part of the Authority’s letter.
On his part, the TPSF Chairman, Mr Salum Shamte commented that, the construction industry in Tanzania has a major role in the industrialisation development and that it remains the cornerstone for socio-economic prosperity of the nation.