Thursday, September 09, 2010
   
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Preference Scheme

As a way of increasing participation of local firms in Public Procurement, Section 49 of the Public Procurement Act No. 21 of  2004 allows for a margin of preference to be given for the benefit of tenders for certain goods manufactured, mined, extracted or grown in Tanzania, for Works by Tanzanian Contractors or Services by Tanzanian Consultants or service providers. Section 50 of the same Act allows procurement not exceeding a certain limit to be set to exclusively to local persons or firms where such procurements are fully funded by a Tanzanian Public body
   
In line with Section 49 of the Act, the Minister of Finance, through the Public Procurement Regulations has approved a margin of preference based on the input of local firms in the association with foreign firms.

Margin of Preference for National & International Competitive & Domestic Contractors & Service Providers 

Input of National firm in the association

Preference %

20-40%

4

40-60%

6

60-80%

8

80-100%

10







 

 

 

 

 

Suppliers supplying goods mined or manufactured in Tanzania shall be granted a margin of preference of up to 15%.
Also in line with Section 50 of the Act, the Minister of Finance, through the Public Procurement Regulations has approved the following limits for exclusive preference: 

Project value below with Exclusive Preference will be applied

Procurement Type

Value

Works

1,000,000,000

Goods

200,000,000

Non-Consultant services

250,000,000

Disposal by Tender

Not applicable

 

 

 

 

 

 

 

 

In order to monitor and prevent the abuse in the use of the proposed preference scheme, the Regulations provides for the registration of consultants, contractors suppliers and other service providers who wish to benefit from the scheme. The approved registration list shall be used by the Procuring Entities to provide preferences as appropriate. It shall not be used to limit participation of any firm in public Tenders. However it is only the firms under this register who shall qualify for the preference scheme

On the basis of the above information, the Public Procurement Regulatory Authority now invites all local suppliers, contractors, consultants and service providers to register so as to benefit from the preference scheme. Application Forms can be collected from the Office of Chief Executive Officer, Public Procurement Regulatory Authority, PPF Tower 8th Floor, Wing 804 during working hours (08.00 – 16.00) Monday to Friday. The forms can also be downloaded by clicking the links below.

 





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