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Private sector support - Tanzania

Improving the delivery capacity of local service providers, (consultants and contractors) and optimising the use of local resources including labour, promoting gender sensitivity and responding to the fight against AIDS are the key focus of this component. In three years (July 2000 to June 2003) CCIC has provided institutional support to consultants and contractors associations and worked with TANROADS, RFB and SDC to provide better road access in seven regions of the Tanzania mainland.

Representative Results

  • 255 km of roads rehabilitated.
  • Approximately 2,300,000 people served with improved access in seven regions.
  • 96 contractor firms trained and 54 contracts signed with trained contractors.
  • 185 technicians trained in road and bridge-work supervision.
  • 43 engineers from 20 consulting firms trained in road and bridge study, design and work supervision.
  • 307,000 worker-days generated.
  • 2,700 jobs per month created.
  • 2,683 million TShs (USD 2.683 Mil) spent on road works.
  • 322 million TShs (USD 322,000) spent for local labour wages (approx. 12% of total costs).
  • Approximately 16,000 people reaches through HIV/AIDS campaigns

Important Findings

  • In cases where contractors used local resources, there was a better profit as most projects were in very remote areas and hence difficult to get heavy equipment and back-up services in good time.
  • Local resource based methods should be introduced to all parties in the construction sector, the client organisations and service providers.
  • A rational choice of resources to be used by contractors is often not possible due to distorted market prices, e.g. under valued equipment rates.