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Preference Scheme

As a way of increasing participation of local persons or firms or association of local with foreign firms in Public Procurement, Section 54 of the PPA 2011 allows for application of national preference for financial evaluation of tender for certain goods manufactured, mined, extracted or grown in Tanzania; for works by Tanzanian Contractors or services by Tanzanian consultants or service providers or association of local and foreign firms.

Regulations 32 of Public Procurement Regulation G.N 446 of 2013 (PPR GN. 446 of 2013) provide for registration of tenderers who wish to benefit from the preference scheme with the Public Procurement Regulatory Authority (PPRA).  However, it has been established that the criteria for registration of contractors and consultants by Contractors Registration Board and Engineers Registration Board respectively comply with the requirement for registration for margin of preference. In this perspective all local contractors and consultants registered with both statutory bodies are eligible for national preference.

Pursuant to Sub Regulation 33(2) of PPR GN. 446 of 2013, Tenderers who are citizens of Tanzania or associations between local and foreign firms, shall be eligible to be granted a margin of preference if they meet the criteria given in section 54 of PPA, 2011, and are registered by the Authority pursuant to Regulation 32 or any other statutory body acceptable to the Authority.

The requirement for registration is to monitor and prevent the abuse in the use of the proposed preference scheme.  The approved registration list shall be used by the Procuring Entities when applying the preference scheme. It shall not be used to limit participation of any firm in public Tenders. In this context, only tenderers who are registered with the Authority shall qualify for the preference scheme. Regulation 32(6) of PPR GN. 446 of 2013 states that:  “A procuring entity shall, in granting a margin of preference or applying exclusive preference, use the Authority’s register of tenders to determine whether or not tenderers are qualified for margin of preference or exclusive preference.”

On the basis of the above information, the Public Procurement Regulatory Authority now invites all local suppliers and service providers to register so as to benefit from the scheme.

Application forms can be collected from the Office of Chief Executive Officer, PPRA, PPF Tower 8th Floor, Wing 804 during working hours (08.00 – 16.00) Monday to Friday. To download the form please click here

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