Enhanced local contractor participation in the Zambian water supply and sanitation sub-sector.
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Date
2024
Authors
Katotobwe, Chanda A.B.
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia.
Abstract
Water supply and sanitation (WSS) construction projects involve the construction of specialized infrastructure such as water treatment plants, pumping stations, pipelines, reservoirs, and sewage treatment facilities. These type of construction projects present unique technical, regulatory, and societal challenges, often executed by foreign contractors in developing countries like Zambia, with limited local participation. This disparity sparks debates on dependency and sustainability. Existing theories insufficiently address this issue. The overarching research inquiry investigates the dynamics surrounding the low dominance of local contractors in executing WSS projects in Zambia. Additionally, the study delves into the primary barriers confronting local contractor participation in Zambia as they compete for and secure contracts within WSS projects. Employing a Straussian Grounded Theory methodology, the study developed thick descriptors for the underlying issues explaining local contractor participation (LCP) in the WSS sector, which led to the development of theory and a framework advocating for enhanced LCP. Initially, a variety of emerging issue clusters and their corresponding phenomena were delineated and categorized into thematic descriptors. These encompassed clusters relating to procurement and taxation, funding sources, constraints on plant and equipment resources, specialized financial support,
contractor technical capacity, governmental capacity building efforts, and regulatory enforcement. Based on these identified issue categories and their observed phenomena, an LCP theory was introduced as a primary contribution of the study within the theoretical proposition framework. This theory encapsulated the theoretical propositions and strategies advocating for enhanced LCP. It posited that a comprehensive approach, tax incentives, affirmative procurement actions, and specialized financial support, could significantly enhance the involvement and competitiveness of local contractors, particularly in the construction industry, specifically within the WSS sector. Tax incentives and leniency policies reduce financial burdens on local contractors, allowing for reinvestment in business growth and improved financial stability. Simultaneously, affirmative actions in procurement ensure equitable competition, levelling the playing field against larger foreign competitors and addressing inherent disadvantages. Furthermore, integrating specialized financial support tailored to the unique needs of local contractors within the sector addresses financial barriers and facilitates their participation in projects. Following the consequential phenomena and strategies upon which these theories were based, holistic strategies and reforms associated with these three theoretical propositions included: revamping taxation policies and procurement practices; diversifying funding sources for sustainable growth; creating equitable opportunities through procurement strategies; establishing specialized financial support institutions; establishing specialized financial support institutions; strengthening policy frameworks and enforcement mechanisms; bridging the knowledge gap for local contractors; mitigating political interference for fair competition; and enhancing government capacity building initiatives. The study advocates for policy, legal and institutional restructuring based on this theory to enhance local contractor participation in WSS projects in Zambia and other developing countries.
Description
Thesis of Master of Engineering in Construction Management.