International firms mandated to include local contractors under SPARK, says Minister Morgan

“The Government values and relies on the essential involvement of local contractors for the successful execution of the SPARK project. We remain committed to fostering local expertise while benefiting from international collaboration,” he said in a recent stakeholder meeting at the Ministry of Economic Growth and Job Creation.

His statement was in response to concerns raised by local contractors as the government prepares to roll out its much-hyped $40 billion national road improvement project.

Local firms have expressed fear that they will be overlooked for their overseas counterparts under SPARK, an acronym for Shared Prosperity through Accelerated Improvement to our Road Network, in which 2,000 roads will be rehabilitated within two years starting this financial year.

Former head of the Incorporated Masterbuilders Association of Jamaica Carvel Stewart says the criteria set out for local contractors to qualify for consideration under SPARK are exclusionary.

One criterion that must be met by local contractors under the programme is that they must maintain a minimum of US$12.8 million cash in its account. That’s approximately J$2 billion when converted at the current exchange rate.

Morgan, the state minister for works, noted that programme’s procurement process is in keeping with the International Competitive Bid (ICB) framework and that all international contractors participating in this process are mandated to have local partners, aligning with global best practices.

He said the roles of the local contractors would be required to assist in competitive bid proposal preparation; provide logistics support for sourcing materials, labour, and equipment; and facilitate set-up and mobilization for efficient project execution.

In other words, given their financial strength in all likelihood international contractors will receive most if not all contracts, but local firms will be engaged through subcontracting arrangements factored into the bid pricing.

International contractors will include the agreements with local subcontractors in their detailed work plans, thereby maintaining the quality and integrity of the programme, the minister said, before adding “The pre-qualification stage has been successfully completed and we are now moving to the bid-proposal stage. Pre-qualified contractors will be invited to submit their tenders."