TANZANIA: HOW CHINESE FIRMS WIN LUCRATIVE DEALS

In comparison, says Dr Lu, Tanzania government saved about $2.5 billion by hiring Chinese firms in road construction. Tanzania is presently one of China’s most favoured destinations in Africa as shown in newly released data of Beijing aid, loan and trade in the continent—which show that the country received $5.07 billion from China as loans, grant and aid between 2001 and 2012.

But, some analysts question whether roads built by Chinese cheaply have for money in terms of durability and quality. Not only that, but the so-called $600,000 price per kilometre is also not realistic, according to one prominent road engineering consultant who spoke to The Citizen yesterday.

The source who declined to be named because he is an interested party, who works very close with Tanzania National Road Agency (Tanroads), said: “The charges mentioned by Chinese Ambassador is out-dated…It was used a decade ago, but today, charges per kilometre of tarmac road is between $850,000 and $1 million, depending on the design and nature of the works.

Some roads like the Chalinze-Morogoro cost up to $1.2million per kilometre, according to the source.

  According to the source, Chinese companies operate under a cartel when bidding for any project here. Before, tendering for any project, the Chinese companies, first consult their embassy to get the final nod.  Then, says the source, the Chinese firm would agree to bid in big numbers for one tender, but at the final stage, some would withdraw in favour of one.

 “Everyone, including local and Western companies, have dirty tricks including bribes, but the Chinese have both; strategies and bribes,” claimed the source.

The procurement rules require that any foreign company that wins for instance a tender should sub-contract 25 per cent to a local company, but the Chinese firms hardly follow what the law wants.

 Another crucial area where Chinese beat local and Western companies is cheap labour. Chinese sometime import prisoners as cheap labour in a bid to cut down their operation cost, according to a survey conducted by The Citizen.

 One contractor who works very close to Tanroads told The Citizen under the conditions of anonymity, “In projects financed by China, I have no problem if everything goes to their contractors, but what I don’t understand is adoring Chinese companies even in projects financed by Tanzanians.”  “Can a Tanzanian contractor win a multimillion dollar tender in Beijing funded by Chinese monies?” The contractor queried adding, “Though we operate in a globalised economy and highly competitive markets, we should be wise in dealing with Chinese firms.”

 China’s ambassador recently admitted that some Chinese nationals and companies are engaged in corruption and illegal ivory trade in the country.

The Citizen