President Edgar Lungu has directed the Road Development Agency (RDA) to carry out a review of all contracts signed between foreign contractors and local contractors and ensure strict compliance with the 20 percent subcontract policy.
Speaking on Friday afternoon when he engaged the media at State House, the Head of State said he expects a detailed report within 14 days.
President Lungu emphasized that the 20 percent subcontract policy is intended to create capacity building and empower local contractors.
“Conversely, since the enactment of the National Construction Council Act of 2003, we have made great strides in ensuring that local contractors are empowered through the full implementation of the 20 percent subcontract policy,” said the Head of State.
“It has been observed that there is no problem with contracts signed between the government and foreign contractors yet there is a problem with contracts signed between foreign contractors and subcontractors in respect to rates applied, which are much lower for subcontractors.”
President Lungu stated that more importantly, scope of works for local contractors are only on drainages and road markings.
He noted that this has resulted in very limited skills transfer.
“Added to this, construction materials are procured at very high cost from the same foreign contractors,” said President Lungu.