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Contractors urges Govt to enact into law 20% sub-contract policy

A consortium of Local Contractors and Allied Suppliers has called for the quick enactment of the 20 percent policy pronouncement by government that is aimed at empowering Zambian owned companies as well as creating local contracting capacity.
Speaking at a meeting with the nominated and non-nominated sub-contractors under AVIC International, China Henan and Kafulafuta Dam in Kitwe, Consortium President John Chilupula said the enactment of the policy into law will see Zambian owned companies get preference in the awarding of contracts as seen in neighboring countries.
Mr Chilupula said the consortium wants to see favorable and fair distribution of the 20 percent share to the local contractors and suppliers as it was initially intended for.
Mr Chilupula noted that in the current state the 20 percent allocation to the local companies has not benefited most companies as they have continued to have challenges with the main contractors in executing jobs as foreign companies are taking long to pay Zambian companies hence frustrating local firms.
And Kitwe District Commissioner Binwell Mpundu said government will create a conducive environment in the mining sector by ensuring that the playing field is leveled for everyone to do business.
Mr Mpundu stated that meaningful empowerment in the mining sector will only be achieved if the local people are empowered.
He noted that government requires local companies to perform exemplary in the projects that are awarded to them as will be a score cut to getting more jobs in the future.
Mr Mpundu added that some Zambian companies have performed poorly in some jobs and as such there is need for local contractors and suppliers to admit and work towards correcting the bad picture that has been created.
He added that government is aware that most foreign companies are over charging Zambian firms in terms of rates and that will government will not entertain such moves as they are tantamount to criminal activities
Last year Housing and Infrastructure Development Minister Ronald Chitotela challenged contractors and suppliers to rise up to the challenge and prove that they are worth the 20 percent stake in the projects by delivering quality works on time.
The 20 percent subcontracting policy is applicable to all civil works exceeding K30 million.


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