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RDA must follow the law when awarding contracts – ZACCO

• The challenge is how RDA will determine eligibility of enterprises domiciled in those regions.
• A Company may have directors from 4 provinces.
• It’s very difficult to determine a domicile company or corporation in a unitary state like Zambia.

Zambia Association of Citizen Contractors (ZACCO) has called on Road Development Agency (RDA) to follow the law when awarding contracts under the re-advertised tenders for routine road maintenance works in Southern, Luapula, Copperbelt and Central Provinces.
Speaking in an interview with Money FM News, Association General Secretary Danny Simumba said the country has now moved into a situation where the law prescribes that some works should be contracted out under preferential or reservation scheme, which means that there are targeted citizens that can participate in some of the tenders.
“What we see as a challenge is how the RDA will determine the eligibility of enterprises domiciled in those regions because when you look at the Company itself, it may have directors from 4 provinces and how that will be possible will show fairness on the part of RDA because we believe that it’s very difficult to determine a domicile or a company or a corporation in a unitary state like Zambia.”
“It’s easy to do it in a federal state but for Zambia all incorporations are domiciled in Lusaka meaning that all companies in Zambia are domiciled in Lusaka, so how are you going to determine this company domiciled on the Copperbelt for example because Directors are in different places,” he wondered.
Mr. Simumba stressed the need for RDA to show fairness in the awarding of contracts in order to achieve equity.
“I think this is the discourse that we need to engage in and look at the law critically, otherwise we will not be achieving the equity that we want to achieve,” he stated.
Meanwhile, Mr. Simumba commended government’s decision to re-advertise tenders for routine maintenance works in Southern, Luapula, Copperbelt and Central Provinces.
He said this has been long overdue and the Association is eagerly waiting to see routine maintenance contractors to quickly move on site.
“This is good because it will avert potential accidents that could have been caused due to the over grown grass and bushes on our roads. This has been long overdue and it’s good that finally the advert is out and we would want to see routine maintenance contractors to move on site as quickly as possible.
“Of course, the procurement process has a prescribed procedure which is guided by the law, the Public Procurement Act number 8 of 2020, and obviously it will take care of the needs of the urgency to move routine maintenance contractors on site,” Mr. Simumba said.
Recently, Minister of Infrastructure Charles Milupi disclosed that about 8,979 kilometers worth of routine maintenance performance-based road contracts are available for bonafide local contractors, preferably women and youths, to bid in four provinces, namely Luapula, Southern, Central and Copperbelt.
Engineer Milupi said contractors who are eligible to bid for the proposed road projects, are those who live in the respective provinces, adding that 30% of the available Lots, totaling approximately 2,757 kilometers across the four provinces have been reserved for Women Contractors who shall be defined as companies where women own at least 51% shareholding at the date of bid closing.
He added that in line with the Youth Empowerment Policy, 20% of the available Lots, totaling about 1,376 kilometers across the four provinces, are reserved for the youths.
“For the sake of clarity, Youth Contractors shall be defined as companies where the youth (18-35 years old) own at least 51% shareholding at the date of bid closing. All this is thanks to your persistent efforts to push us to deliver on our campaign promises,” he said.

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