THE government has disbursed 83.4bn/- to local contractors executing various infrastructure projects across the country in this fiscal year, Works Minister Abdallah Ulega has said.

Speaking in Dodoma on Wednesday during a session with local contractors, Ulega said the government is committed to settling all outstanding payments to strengthen operational capacity of local firms.

“As of July last year, contractors were owed 183bn/-. So far, 83.4bn/- has been paid, and the government continues to clear the remaining debt,” he said.

He praised local contractors for their efforts, particularly in restoring roads damaged by heavy rains and emphasized that the government will continue awarding them more projects to empower them economically and enable them to compete with foreign companies.

Registrar of the Contractors Registration Board (CRB), Edwin Nnunduma, added that currently, all projects valued below 50bn/- are reserved for local contractors. He also applauded the government’s commitment to paying contractors’ debts, appealing that the momentum be maintained to further improve the sector.

One of the local contractors, Samwel Marwa, recommended the introduction of a payment cap to guarantee timely disbursements, reduce debt burdens and minimize project costs by allowing contractors to factor in lower profit margins.

He also urged the government to regulate foreign firms that exploit loopholes by giving local contractors nominal 51 percent shares which in reality offer no ownership or benefit.