Local companies on the spot for delaying rural electrification

Dar es Salaam. Fourteen local firms are in the spotlight over implementation of rural electrification projects below 50 percent about two months before expiry of time stipulated in their contracts, according to Rural Energy Agency (REA).

The agency said the firms are part of 21 companies that won tenders to implement rural electrification projects in the Round II of REA III that commenced in July 2021.

Analysis by REA shows that five of the seven foreign companies have completed implementation of their respective projects by 100 percent, while the remaining two have executed by 80 percent each.

However, none of the local firms have implemented the project for over 50 percent leading to looming complaints from beneficiaries of the Sh1.5 trillion projects slated to be completed in July 2023.

Rural Energy Board (REB) Chairperson Janet Mbene made the revelation during a meeting with contractors aimed at sharing performance analysis of individual companies.

Speaking during the event, Ms Mbene said analysis has found that most local companies have been operating as agents who subcontract jobs to small scale firms after winning project tenders.

“This has led projects implementation beyond stipulated time, therefore denying the population with the important service as well as sabotaging the government’s plan to economically empower local firms,” she said.

Ms Mbene who doubles as former deputy minister for Industry and Trade said local firms’ failure to complete projects on time has prompted numerous complaints from citizens and parliamentarians representing different constituencies.

“The projects have political implications in the areas of implementation as they stimulate production, therefore leading to complaints once they are not completed on time,” he said.

He said the ministry has received complaints from legislators representing Tanga, Morogoro and Mtwara regions.

“You are given six months extension to complete the projects not later than December this year,” said Ms Mbene

REA director general Hassan Saidy said quality and timely completion of projects would determine those to be considered for future projects.

“Today, you are signing extension contracts. You are supposed to sign if you are confident that the December deadline will be met,” he cautioned.

Ms Bridget Temba, a representative of Derm Group Contractors, accepted shortcomings, asking for timely payment of project funds.

“The contract demands payments of project funds 21 days after the contracts have been signed. This contractual obligation hasn’t been met leading to the said delays,” she said.

REA technical director Jones Olotu said the projects are implemented by 21 Grade One contractors through 39 contracts.