The Economic Association of Solomon Islands (EASI) has suggested some solutions to address the local content issues in infrastructures in the country.
Quoting today’s Island Sun newspaper, the Economic Association of Solomon Islands (EASI) has suggested some solutions to address the local content issues in infrastructures in the country.
This was after a study carried out between 2005-2017 showed that about USD$490 million had gone through the country in infrastructure projects.
EASI President, Reuben Tovutovu asked “What are some benefits to the local contents?”
Mr.Tovutovu said infrastructure is key to grow the economy, but went on to highlight some of the challenges in terms of capacity.
He said, quote.
“When you bid for international projects, you are competing with big players in region and world.
“How can you compete with them, some of them have been competing on all continents?he added.
“Not only are there financials issues but human resources too.
“Some machines needed to build road, wharves and bridges cost millions of dollars,” he said.
Mr.Tovutovu said the way forward included:
a. The serious need to identify opportunities to improve procurement practices that would facilitate local content in infrastructure implementation and delivery in the country.
b. The need to develop a greater understanding of the costs and benefits from local contents in the implementation of infrastructure in the country.
The Infrastructure policy needed to identify how local content would be rolled out over 10 years, an example being, how much percent of all infrastructure projects to be local content starting with 30 percent in year 1 to 40 percent to 50 percent in year 10.
Mr. Tovutovu said given his thinking local constructors would have confidence to invest in new and expensive equipment and machines and hire qualified manpower
He suggested it be compulsory policy that by year 10 of an infrastructure plan, at least 50 percent of the workforce were locals.
Source. Island Sun newspaper.
Yours sincerely
Frank Short
