AVIC URGED TO ADHERE TO 20% SUB-CONTRACTING POLICY

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Housing and Infrastructure Development Minister Hon. Vincent Mwale and Ministry of Housing and Infrastructure Development Permanent Secretary Eng. Charles Mushota during the inspection of works on Mungwi road in Lusaka West.

Housing and Infrastructure Development Minister Honourable Vincent Mwale has urged AVIC International to abide by the 20 percent Sub-contracting Policy when undertaking Government funded projects.
Hon. Mwale said he had received a petition by some local contractors stating that AVIC International was abrogating the Government policy of 20 percent Sub-contracting.
“I want to state that Government will have a bone to chew with AVIC International if at all it is true that you are not adhering to the 20 per cent Sub-contracting Policy.
“The Government has spent huge sums of money on road infrastructure projects and we cannot sit idle and watch. We need some of the money to remain in the country and empower local contractors,” he said.
The Minister who sounded the warning when he toured Mungwi road in Lusaka West under construction said the message was not only directed to AVIC International but all foreign construction firms working on Government funded projects.
It is Government Policy that a minimum of 20 percent of all Government-funded road contracts awarded by the Road Development Agency (RDA), Local Road Authorities (LRAs) and other Government institutions should be executed by Zambian citizen-owned companies in line with the shareholding structure specified in the Citizens Economic Empowerment Act No. 9 of 2006, whose overall goal is to contribute to sustainable economic development, by building capacity in Zambian-owned companies.

Housing and Infrastructure Development Minister Hon. Vincent Mwale talking to AVIC International Country Representative, Cui Ji during the tour of Mungwi road.

 

The 20 percent Sub-contracting Policy is only applicable to all Civil Works exceeding K30 million. Contracts below the K30 million thresholds shall be reserved for citizen-owned, citizen-influenced and citizen empowered companies in line with the Citizen Economic Empowerment (Preferential Procurement) Regulations of 2011.
AVIC International Country Representative, Cui Ji said the Construction firm was adhering to the 20 percent Sub-contracting Policy but was overwhelmed by the number of nominated contractors.
He said under the L400, AVIC had engaged 45 sub-contractors from 200 nominees.