‘PRIORITISE LOCAL CONTRACTORS FOR TENDERS’
GOVERNMENT should prioritise awarding tenders to local contractors to ease the burden of paying colossal sums of money to their foreign counterparts, Economic Association of Zambia (EAZ) president Lubinda Habaazoka has said.
And Dr Habaazoka advised Government to review the prices of projects across the region to avoid being overcharged.
This follows concerns that the conditions attached to the loans the country was procuring were rendering some infrastructure projects abnormally expensive.
When contacted, Ministry of Housing and Infrastructure Development Permanent Secretary, Charles Mushota confirmed that most foreign acquired loans came with conditions that the contractor be selected from the lending country.
“If a loan comes from China, the conditions are that the targeted project is carried out by a Chinese contractor,” he said.
Mr Mushota said the contract to construct health posts across the country was given to an Indian firm because the loan was procured from Exim Bank of India.
He, however, refuted claims that infrastructure projects in Zambia were overpriced compared to similar ones in the region. Mr Mushota reiterated that even the infamous Michael Chilufya Sata Toll Plaza on the Ndola-Kitwe dual carriageway which cost US$4.3 million was not overpriced.
Dr Habaazoka, however, advised Government to prioritise local contractors to ease the burden of paying colossal sums of money to their foreign counterparts.
He said that there were contractors in Zambia who were able to finance and carry out infrastructure projects at a cheaper rate.
Government should also review the prices of projects across the region to avoid being overcharged, he said.
He said that the projects should be thoroughly analysed by relevant authorities before they were executed.
Meanwhile, People’s Alliance for Change president Andyford Banda advised Government to stop procuring loans that came with harsh conditions.
He said that lenders should not dictate as to which contractors should be award public projects when there were tender procedures to follow.
“They are just overpricing so that they can benefit, this is the corruption that we are talking about,” Mr Banda said.