By 
By Kwanele Dhladhla
Gun blazing local contractors who strongly feel sidelined in the E2.5 billion roads tender financed by African Development Bank (AfDB) are not backing down as they have since tabled a comprehensive proposal to government precisely explaining why the qualification process for the multi-billion project makes it for local companies to bid successfully.
A Construction Industry Task Team which has been seen by Eswatini Daily News (EDN) encapsulates how the project has been packaged as one that makes the qualification criteria impossible for focal contractors to meet, and this precludes them from participating.
“The financial requirements are impossible for local contractors to achieve. Therefore, excluding them from participating,” the contractors submitted.
It was pointed out thar the bid security of E45.5 million was very high for local contractors.
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The contractors went on to state that the performance security of approximately E 250 million in the form of a demanded bank guarantee was a also a steep hill to climb when considering that bank guarantees generally require cash cover or collateral of the equivalent amount.
“No local contractor can meet this. Further, to this the Central Bank of Eswatini sets single obligor limits. Even local banks will have difficulty issuing an instrument of this value,” contractors emphasised.
The contractors insisted that the advance payment security of approximately E500 million, thickens the plot when it comes to the tender being successfully being bidded for by locals.
It was noted that the qualification criteria of three contracts each of a minimum value of 91 million US Dollars or (approximately E 1.6 billion) or two contracts each of a minimum value of 102 million USD (approximately. E1 billion) was another major impediment to Eswatini contractors.
“No similar project has been done in Eswatini of this value in the past 10 years. All the large roads projects that have been completed are well below this value. Therefore, it is impossible for any local contractor to qualify,” the contractors argued.
The contractors mentioned that their recommendations would not only promote fairness but were also in consideration of the practicality of Eswatini companies to be able to successfully bid for the lucrative tender given the work that has been availed locally both in the private and public space in the past years.
“Furthermore, it also aligns with the African Development Bank’s inclusive growth agenda and Eswatini’s national development priorities,” it was stated.
When unpacking their recommendations which will culminate in an amicable way forward, the contractors proposed that the Ministry of Public Works and Transport, should consider breaking the 105.8 km scope into smaller, manageable lots or segments (such as by geographic sections or lots.
“This will allow Emaswati contractors as well as consultants to competitively bid for portions of the project, rather than being excluded by the scale of a single large project.
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A proposal for the division of works into geographical or by lots to allow local firms to compete for sizable work packages. This can reduce the tender bond and performance guarantee requirements,” contractors pleaded.
The contractors also expressed to engage in fruitful discussions with government for an amicable way forward following their grievances.
