The Domestic Construction Industry I a Survey and Project Identification Report*
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OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. 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Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] |2g |||||2=5 1 . 0 l.l 1.25 MlOROUH'Y Kl '.OI Il MON II M < MAKI uw w /w .w s I UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION 1(535 DEMOCRATIC REPUBLIC OF THE^UDAN THE DOMESTIC CONSTRUCTION INDUSTRY I A SURVEY AND PROJECT IDENTIFICATION REPORT* D.W-J. ----- 00 ' ** i (i WORLD BANK/UNIDO IMPORT No. 19 COOPERATIVE PROGRAMME Deeenfter 1981 * Thl* document ha* been reproduced without formal editing. V.82-24473 Distr. LIMITED UNID0/Ì0.498 13 April 1082 ENGLISH TAHTJ1. OF o o n u n e s P a g e No. Pref a c e ........................................................ i Currency Bguivalents and Abbreviations ...................... ii SUMMARY ....... ................................................. iii I. INTRODUCTION.................................... 1 II. CONSTRUCTION DEMAND AND ECONOMIC OCNTRIBOTICN .............. 3 A. Historical Output Figures ............... ................. 3 B. Analysis of Modem Construction Demand .................. C. Contribution to the Econcny .............................. 4 D. Future Demand for Construction ........................... 5 III. ORGANIZATION OF THE OBSTRUCTION INDUSTRY ................... 7 A. M a r k e t S h a r e .............................. » .............. 7 B. Pi±>lic Sector Contractors ................................ 7 C. Foreign Contractors and Joint Ventures .................. 11 D. Domestic Contractors ............... ....................... 13 IV. POLICIES, INSTITUTIONS AND PERFORMANCE CONSTRAINTS ......... 18 A. Government Policies and Practices ....................... 18 B. Legal and Administrative Framework ....................... 19 C. Design and Supervision Procedures ........................ 21 D. Construction Financing ......... ............. ............. 22 E. Availability of Building Materials ...................... 23 F. Professional, Technical and Craft Skills .......... 26 V. PROPOSED PROJECT TO ASSIST DG№STIC CONTRACTORS ....... 29 A. Introduction and Objectives for Phase I ................. 29 B. Costs and Financing of the Project ...................... 30 C. Financing Equipment and Spare Parts ..................... 32 D. Technical Assistance and Training ....................... 36 E. Later Phases of the Project ............ ................. 36 F. Benefits of the Project................................... 36 VI. CONCLUSIONS AND REOOJMNDATICNS .............................. 37 A. Project Proposal .......................................... 37 B. Supporting Activitieb..................................... 38 LIST OF ATCJEXES 1 Terns of Reference 2 L i s t o f Contacts 3 Interviews with Public Sector Contractors (3) 4 Inter jews with Private Sector Contraetene (21) 5 List of Matters of the 'Jkiicn of Sudanese Construction Contractors 6 The Ehoouragenent of Investment Act, 1980 7 List of Existing Operati ma l Heavy Equipment Owned by Sudanese Construction Contractors 8 List of Heavy Equipment to b e Reh a b i l i t a t e d 9 Tentative List of Equipment Required for Three Suggested Contractor Supporting Activities - 1 - ргаглсЕ The attached report analyzes the need and potential far developing the domestic construction industry in the Democratic Republic of the Sudan. It reviews historical output figures and current and future demand for construction and relates the resources and achievements of domestic contractors to the general organization of the construction industry. The description of policies, institutions and performance constraints leads to the identification of a project that would strengthen the domestic construction industry throng the provision of foreigi exchange far inport of equipment and spare parts allied to a technical assistance and training component. The first phase of the project would focus on the Khartoum metropolitan area and would have a three year duration. The report was prepared by the World Bank/UN3D0 Co-operative Programne. Consultants enplcyed for the Mission were D.W.J. Miles (Team header and principal author of the report), W.H. Barkley, J. Eijgelaar and W.C. Whitesell. The team visited the Sudan between 14 March and 7 April 1981, at which time information was gathered with the oo-operaticn and assistance of the Government of the Sudan and the UNEP field office. Coordination of the Mission's work in the Sudan was achieved through the Ministry of National Planning. The Mission wishes to express its appreciation for the wide measure of assistance and co-operation given by Ministers, officials and staff rentiers of IMF. аяррсу впотадив Currency Chit Bond (ISd) Official Rate 05$ 2.00 - ISd 1.00 Parallel Market Rate 05$ 1.25 « LSd 1.00 MBaBvntncHS AAAID Arab Authority for Agricultural Investment and Developnent BCd Bank of COMiKrue and Credit Ihtematicnal S.A. EMC Building Materials Corporation BRRI Building and Road Research Institute, university o f Khartoum EEC European Eocnanic Camunity ПО International Labour Office IRCI Industrial Research and Consultancy Institute MCPW Ministry of Construction and Public Wbrks ICC Management Development Centre MJP Ministry of National Planning PCBC The Public Corporation far Building and Construction PCIE /no Public Corporation for Irrigation Wbrks and r^rthnoving RBPC / * 2 Roads and Bridges Public Corporation UNIDO Ufoited Nations Industrial Development Organization UNDP United Nations Development Program» FISCAL YEAR 101 - SMART i. Die construction industry reflects the fulfillment of a basic huraan need and is also of crucial economic importance, since it impinges cn all other sectors in a national economy. An increasing nmber of developing countries are becoming conscious of the importance of fostering their domestic construction industries within the context of overall eocncmic planning. ii. The objective of the present study is to analyze the need and potential for developing the domestic construction industry in the Democratic Republic of the Sudan, with the aim of enabling it to participate effectively in gaining an appropriate share of the market for'civil engineering and building construction. The report commences by reviewing historical output figures, and then relates the resources and achievements of domestic OCfittactors to the general organization of the construction industry. A description of policies, institutions and performance constraints leads to the identification of a project that would strengthen the domestic construction industry through the provision of foreign exchange for import of equipnnt and spare parts allied to a technical assistance and training component aimed at improving managerial capacity and performance. iii. The first three year phase would focus cn the Khartoum metropolitan area and would cost US$ 17,157,000, of which the US$ foreign costs might be financed from external sources and the remaining I£d 4,390,000 local costs from participating domestic contractors and Government funds (arising from counterpart receipts). The full time technical assistance team would consist of five experts (two construction management specialists, one equipment specialist, one financial specialist and one general crafts supervisor) who would be expected to concentrate cn cn-the-jcb consulting advice, but also on design and on the running of practical training courses as necessary. In addition the team would co-ordinate with the Ba.ik of Judan to establish operating guidelines for the state-owned commercial banks (through which the applications for financing would be channelled) and information systems far monitoring project disbursements. Future phases of the project could be employed to broaden its scope and/or spread the benefits to other parts of the Sudan. iv. It is envisaged that the project should result in improvements in the capacity and effectiveness of domestic contractors, and in their relationships with government and financial institutions. These effects, together with improvements in the policy framework affecting domestic contractors, should