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Fund improves lives of 400 local contractors
2007-10-29 08:46:27
By Mgeta Mganga
The Contractors` Assistance Fund (CAF) has managed to better lives of 400 local contractors since its establishment in 2002.
Speaking to The Guardian in Dar es Salaam recently, the Contractors Registration Board (CRB) registar Boniface Muhegi said the fund endeavoured to support small and medium local contractors in the country.
`The fund was meant to take full advantage of available work opportunities through bank guarantee. It provides a guarantee of up to 50m/- per contractor. Benefited members are contractors registered in Class Four, Seven, Two and Three for professional contractors,` disclosed Muhegi.
He said CRB has set criteria to enable local contractors get guarantee, mentioning payment of annual subscription fees and indication of specific contracts to which the guarantee is applicable as some.
`An applicant must have an operating account with commercial bank, payment of bank commission applicable on advance payment guarantee. He also has to pay to CRB 0.2 per cent as a nominal commitment fee of the guarantee amount,` added Muhegi.
Muhegi also said that CRB has initiated new strategies which would ensure that registered local contractors perform or get big projects.
About 70 per cent of shares of work opportunities in terms of value go to foreign contractors while the remaining 30 per cent is taken by local contractors despite their big number.
He said the board has deliberately decided to support local contractors to perform big projects.
Muhegi however mentioned the challenges facing many contractors as lack of modern construction equipment and equipped personnel.
`The board conducted a study to see how we can tackle the challenges to enable our local contractors engage in bigger projects without problem,` he said.
The registrar also urged the speed implementation of the construction policy which was passed by Parliament in 2005.
`This policy has a lot of advantages to the contractors.
Once implemented and legislated it would help them to a great extent`, he emphasised.
The government supports CRB establishment by creating a law which favours local contractors.
Local contractors have been given affirmative preference when it comes to announcing tenders not exceeding 1bn/-.
There are at least 100 local contractors registered in First Class who have the qualifications to acquire big projects.
CRB was established in 1997 and it marked its tenth anniversary this year.
The organisation has over 4,000 registered contractors in the country.
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