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 Private sector speaks on  relief package projects

 Private sector speaks on relief package projects

MEMBERS of the private sector have requested the government to furnish them with 50 per cent advance payment to facilitate the implementation of projects being financed through the 1.3tri/- International Monetary Fund's relief package.

Similarly, the government should support companies in the clearance of goods demanded to fast track the execution of the projects.

The appeal comes days after President Samia Suluhu Hassan launched the 1.3tri/- robust development programme which will see major reforms in the country's socio-economic sector mainly in education, health, water and tourism.

To ensure effective execution of the programme, the President called upon the private sector to take advantage of existing opportunities which come with the implementation of the plan.

The Deputy Secretary General of the Association of Private Investors in Education, Mr Albert Katagira made the plea during a stakeholders’ meeting on enhancing participation of the private sector in strategic projects for sustainable socio-economic development held in Dar es Salaam on Thursday.

According to him, many business establishments have been crippled with the effects of Covid-19 among other reasons, noting that many businesses have suffered in the course.

"Since the project comes with a specified time frame and the funds for its execution are available, we recommend that the government supply us with 50 percent advance payment instead of the required 15 percent to fast track the project implementation," said Mr Katagira.

On the other hand, an official with Plascon Tanzania Limited whose name could not immediately be identified, was of the view that the government should encourage usage of new technology in the implementation of water projects funded through the IMF arrangement.

The official also commented that the government should quickly work on debts it will be owing entities that will be implementing the projects, noting that the debts are crippling their businesses.

The Chairman of the Tanzania Bankers Association of Tanzania, Mr Abdulmajid Nsekela, also requested the government to deposit the relief fund in the commercial banks to increase liquidity which can help the bankers to facilitate the companies eyeing to undertake various projects.

Mr Nsekela pointed out that since the process of acquiring the tender will need the bidders to have access to bid bond guarantee, performance guarantee and a finance structure, they will be more than ready to support them in meeting the project goals.

"Following normal financial procedures will need much time before they can meet the necessary requirements. Instead of storing the money in a central account, depositing them in commercial banks will help increase liquidity and facilitate the process," noted Mr Nsekela.

He pledged to ensure the banks come up with good terms to enable the companies to take part in the execution of the projects.

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Author: MAUREEN ODUNGA

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