$245m delays Tanzania projects

News 

Tuesday, April 22, 2014 

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO

DAR ES SALAAM, Tanzania – Contractors in Tanzania say delays in completion of contracts is due to the government not paying them their money which has accumulated to $245 million.
Speaking in Dar es Salaam last week, the Contractors Association of Tanzania (CATA) Vice Chairman Lawrence Mwakyambiki said the government needed to settle the outstanding bills of Tsh400billion ($245million) for the financial year 2012/13 it owes CATA in order to ensure the smooth implementation of the projects.
Mwakyambiki said such a delay was creating misunderstandings between the banks and contractors who had to apply for loans for the implementation of many projects.
“We usually get loans from the bank and repay after the government issues the funds for the projects but there have been delays from the government in issuing such funds and thereby making contractors to incur penalties from banks resulting from the delays in paying the loans,” Mwakyambiki said.
He pointed out that the delays from the government in paying them have also caused delays in paying their workers which later create a negative impact to both the workers and contractors including the implementation of such projects.
He also pointed out for the need to use of qualified consultants in order to ensure that their projects attain the required standards.
He said: “The government needs to ensure that consultants are used in all its infrastructure projects that are be implemented in order to ensure that these roads and other projects have the required durability thereby reducing unnecessary maintenance expenses”
The governments has recently been implementing different infrastructure projects aimed at connecting the whole regions in the country to tarmac roads that is seen a major tool in speeding up the country’s economic development.