Local Construction Industry Development Policy for Lesotho
1
Local Construction Industry Development Policy
Purpose and Outline of
Presentation
To Seek Cabinet Approval of the Local Construction
Industry Development Policy for the kingdom of Lesotho
Outline
1)
Need For Policy
2)
Challenges Facing Local Construction Industry
3)
Policy Development Process
4)
Policy Objectives
5)
Mandate of BEIL
6)
Policy Implementation
7)
Funding
1. NEED FOR POLICY
1)
The Kingdom of Lesotho does not have a Local
Construction Industry Development (LCID)
Policy
2)
The Country has been implementing huge
infrastructure development and maintenance
projects without an appropriate policy and a
regulatory framework.
3)
Infrastructure development is key to socio-
economic development.
4)
E.g. Construction of tourism buildings facilities
and roads to improve access to tourists
destinations;
3
Local construction Industry Development Policy
1. NEED FOR POLICY
cont
,
1. NEED FOR POLICY
cont.
1)
Construction of roads to provides access to
agricultural farms, industries, markets, towns
and border posts to promote local and
international trade;
2)
Infrastructure development also supports
social development, through construction of
roads to health and education facilities and
buildings
Local Construction Industry Development Policy
5
1. NEED FOR POLICY
cont.
3)
Construction of water reservoirs, such as dams
water distribution facilities, energy and
communication facilities to improve access to
basic services.
4)
It also contributes towards good governance,
through construction of infrastructure, such as
police, defence and justice facilities;
5)
Construction industry is key to infrastructure
provision;
Local Construction Industry Development Policy
6
2. CHALLENGES FACING LOCAL
CONSTRUCTION INDUSTRY
Main challenges facing the Construction industry in
Lesotho are as follows:
1)
Lack of a legally established recognized professional
Institute for all key role players (Contractors,
Consultants and Clients) to regulate the industry;
2)
Currently Government ministries register and
categorize contractors, award work to them and
monitoring such work (thus, these ministries play
the role of players and referees, simultaneously)
Local Construction Industry Development Policy
7
2. CHALLENGES
cont.
3)
Institutional fragmentation of the industry,
due to lack of an industry champion for
development, a role the institute would play;
4)
Lack of Professional registration and
regulation;
5)
Limited availability of credit and equipment
6)
Lack of Code of conduct, ethical and
professional behavior in the construction
industry
7)
High incidents of corrupt practices
Local Construction Industry Development Policy
8
2. CHALLENGES
cont.
The Main challenges above, also create
another set of problems:
1)
Lack of accreditation and limited skills
2)
Registration of Bogus/Briefcase
contractors
3)
Construction of low quality, poor and
unsustainable building and infrastructural
facilities
Local Construction Industry Development Policy
9
2. Challenges
cont.
4)
Lack of industry regulation and
accreditation opens room for
marginalization of Basotho
companies and professionals under
large infrastructural projects;
5)
As Basotho are subjected to unfair
competition from highly resourced
foreign construction companies and
foreign accredited professionals;
10
Local Construction Industry Development Policy
2. Challenges
cont.
6)
Eventually, there is considerable loss
of financial resources to foreign
countries;
7)
Furthermore, limited resources and
Small and Variable work availability
lead to an exodus of well qualified
and experienced professionals and
contractors.
11
Local Construction Industry Development Policy
3. Policy Development Process
1)
Transport Sector Policy (2006) led to development and
implementation of Integrated Transport Project (ITP).
2)
With the financial support of World Bank under this project,
MoPW conducted study to formulate a draft Construction
Industry Development Policy.
3)
Consultation with industry stakeholders were also undertaken.
4)
MoPW has formulated a Local Construction Industry
Development Policy, which will form a basis for developing a
regulatory legislative framework for the Local Construction
Industry
12
Local Construction Industry Development Policy
4. Policy Objectives
Create a national body for leadership and
coordination of development of the local
construction industry
Create a national body for the registration and
licensing of Built Environment Professionals
working within the construction industry.
The policy, therefore proposes establishment of a
Built Environment Institute of Lesotho(BEIL),
whose mandate is to regulate the entire build
environment in Lesotho
13
Local Construction Industry Development Policy
5. Mandate of BEIL
1)
Coordination, registration, licensing, accreditation and
categorization of local construction professionals and
contractors;
2)
Improvement of the capacity and competitiveness of
local construction enterprises (contractors, consultants
and associated service providers);
3)
Promoting application of good engineering practices and
technologies that are not harmful to the environment and
human health;
Local Construction Industry Development Policy
14
5. Mandate of BEIL
cont.
1)
Protection of the local industry from
unfair competition, corrupt practices
and deviation from good contract
management principles, which usually
result in high construction costs.
2)
Monitor and evaluate performance of all
key plays in the construction industry
Local Construction Industry Development Policy
15
5. Mandate of BEIL
cont.
3)
Improve Coordination, collaboration
and performance of the institutions,
associations and client organisations
supporting the development and
performance of the construction
industry
4)
Advise the Government on all matters
pertaining to the construction industry
including on training and retention of
professionals.
16
Local Construction Industry Development Policy
Mandate of MoPW and Other
Ministries
1)
MoPW and MoLG will continue to
execute construction and maintenance
of public infrastructure;
2)
MoET will be responsible for
accreditation;
17
Local Construction Industry Development Policy
Concurrences Secured from:
1)
Local Government
2)
Education
3)
Energy
4)
Tourism
5)
Trade
Local Construction Industry Development Policy
18
MINISTER OF PUBLIC
WORKS
BUILT
ENVIRONMENT
PROFESSIONALS
COUNCIL
BUILT
ENVIRONMENT
CONTRACTORS &
SUPPLIERS
Secretariat
Secretariat
6. Implementation
arrangements
BUILT ENVIRONMENT INSTITUTE OF LESOTHO “BEIL”
BUILT ENVIRONMENT INSTITUTE OF LESOTHO “BEIL”
STAKEHOLDER STRUCTURE
STAKEHOLDER STRUCTURE
Administrative
Secretary
BEP
Administrative
Secretary
BEC
6. Implementation arrangements
1)
Create Lesotho Construction Industry
Development Council.
2)
Set up CID levy on registered projects
(Rate to be set by Minister)
3)
Create Committee to Manage
Registration and Categorisation of
contractors within CID Council.
4)
Register of contractors to be published
annually (Gov. Gazette)
20
Local Construction Industry Development Policy
6. Implementation arrangements
5)
Register Projects above value to be set by
Minister.
6)
Bring Management of Levy fund to Construction
Industry council.
7)
Create Committee to Manage Development of
Contractors, (promoting best practice, Training,
Mentoring, Protection of local companies,
Support to Contractor’s Associations, JVs, sub-
contracts).
Local Construction Industry Development Policy
21
6. Implementation arrangements
1)
An experienced Professional Architect
2)
An experienced consulting Professional
Engineer
3)
An experienced Professional surveyor
4)
3 contractors from different sections of
the industry
5)
2 person from client organisations
Local Construction Industry Development Policy
22
6. Implementation arrangements
6)
A representative of local financial
institutions
7)
A representative of local construction
suppliers
8)
A representative of local groups with
special interest in construction
industry (Foundation)
9)
PS MOPW
10)
PS MOLGC
11)
PS MOF
Local Construction Industry Development Policy
23
7. Funding
1)
Initial setup and first year financing applied for from
World Bank and Government counterpart.
2)
Subsequent years from construction industry
development levy on registered projects, plus
registration fees and penalties for large infrastructure
projects.
3)
Levy fund also used to support contractors,
guarantee selected finance agreements, training and
best practice promotion.
4)
Registration of prefessionals and contractors
5)
Annual Membership subcription fees for
professional and professionals
6)
Accreditations of professionals
7)
Categoriation of contractors
Local Construction Industry Development Policy
24
Local Construction Industry Development Policy
25
Khotso Pula Nala
The presentation outlines the critical need for a Local Construction Industry Development Policy in Lesotho. It highlights the challenges faced by the local construction industry due to the absence of a policy framework. Infrastructure development is crucial for socio-economic progress, including improving access to tourist destinations, promoting trade through road construction, supporting social development, and enhancing governance through infrastructure projects.
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Presentation Transcript
Image result for government of lesotho logo Local Construction Industry Development Policy 1
Image result for government of lesotho logo Purpose and Outline of Presentation To Seek Cabinet Approval of the Local Construction Industry Development Policy for the kingdom of Lesotho Outline 1) Need For Policy 2) Challenges Facing Local Construction Industry 3) Policy Development Process 4) Policy Objectives 5) Mandate of BEIL 6) Policy Implementation 7) Funding
Image result for government of lesotho logo 1. NEED FOR POLICY 1) The Kingdom of Lesotho does not have a Local Construction Industry Development (LCID) Policy 2) The Country has been implementing huge infrastructure development and maintenance projects without an appropriate policy and a regulatory framework. 3) Infrastructure development is key to socio- economic development. 4) E.g. Construction of tourism buildings facilities and roads to improve access to tourists destinations; Local construction Industry Development Policy 3
Image result for government of lesotho logo 1. NEED FOR POLICY cont,
Image result for government of lesotho logo 1. NEED FOR POLICY cont. 1) Construction of roads to provides access to agricultural farms, industries, markets, towns and border posts to promote local and international trade; 2) Infrastructure development also supports social development, through construction of roads to health and education facilities and buildings Local Construction Industry Development Policy 5
Image result for government of lesotho logo 1. NEED FOR POLICY cont. 3) Construction of water reservoirs, such as dams water distribution facilities, energy and communication facilities to improve access to basic services. 4) It also contributes towards good governance, through construction of infrastructure, such as police, defence and justice facilities; 5) Construction industry is key to infrastructure provision; Local Construction Industry Development Policy 6
Image result for government of lesotho logo 2. CHALLENGES FACING LOCAL CONSTRUCTION INDUSTRY Main challenges facing the Construction industry in Lesotho are as follows: Lack of a legally established recognized professional Institute for all key role players (Contractors, Consultants and Clients) to regulate the industry; 2) Currently Government ministries register and categorize contractors, award work to them and monitoring such work (thus, these ministries play the role of players and referees, simultaneously) 1) Local Construction Industry Development Policy 7
Image result for government of lesotho logo 2. CHALLENGES cont. 3) Institutional fragmentation of the industry, due to lack of an industry champion for development, a role the institute would play; 4) Lack of Professional registration and regulation; 5) Limited availability of credit and equipment 6) Lack of Code of conduct, ethical and professional behavior in the construction industry 7) High incidents of corrupt practices Local Construction Industry Development Policy 8
Image result for government of lesotho logo 2. CHALLENGES cont. The Main challenges above, also create another set of problems: 1) Lack of accreditation and limited skills 2) Registration of Bogus/Briefcase contractors 3) Construction of low quality, poor and unsustainable building and infrastructural facilities Local Construction Industry Development Policy 9
Image result for government of lesotho logo 2. Challenges cont. 4) Lack of industry regulation and accreditation opens room for marginalization of Basotho companies and professionals under large infrastructural projects; 5) As Basotho are subjected to unfair competition from highly resourced foreign construction companies and foreign accredited professionals; Local Construction Industry Development Policy 10
Image result for government of lesotho logo 2. Challenges cont. 6) Eventually, there is considerable loss of financial resources to foreign countries; 7) Furthermore, limited resources and Small and Variable work availability lead to an exodus of well qualified and experienced professionals and contractors. Local Construction Industry Development Policy 11
Image result for government of lesotho logo 3. Policy Development Process Transport Sector Policy (2006) led to development and implementation of Integrated Transport Project (ITP). 1) With the financial support of World Bank under this project, MoPW conducted study to formulate a draft Construction Industry Development Policy. 2) Consultation with industry stakeholders were also undertaken. 3) MoPW has formulated a Local Construction Industry Development Policy, which will form a basis for developing a regulatory legislative framework for the Local Construction Industry 4) Local Construction Industry Development Policy 12
Image result for government of lesotho logo 4. Policy Objectives Create a national body for leadership and coordination of development of the local construction industry Create a national body for the registration and licensing of Built Environment Professionals working within the construction industry. The policy, therefore proposes establishment of a Built Environment Institute of Lesotho(BEIL), whose mandate is to regulate the entire build environment in Lesotho Local Construction Industry Development Policy 13
Image result for government of lesotho logo 5. Mandate of BEIL 1) Coordination, registration, licensing, accreditation and categorization of local construction professionals and contractors; Improvement of the capacity and competitiveness of local construction enterprises (contractors, consultants and associated service providers); 3) Promoting application of good engineering practices and technologies that are not harmful to the environment and human health; 2) Local Construction Industry Development Policy 14
Image result for government of lesotho logo 5. Mandate of BEIL cont. Protection of the local industry from unfair competition, corrupt practices and deviation from good contract management principles, which usually result in high construction costs. Monitor and evaluate performance of all key plays in the construction industry 1) 2) Local Construction Industry Development Policy 15
Image result for government of lesotho logo 5. Mandate of BEIL cont. 3) Improve Coordination, collaboration and performance of the institutions, associations and client organisations supporting the development and performance of the construction industry 4) Advise the Government on all matters pertaining to the construction industry including on training and retention of professionals. Local Construction Industry Development Policy 16
Image result for government of lesotho logo Mandate of MoPW and Other Ministries MoPW and MoLG will continue to execute construction and maintenance of public infrastructure; MoET will be responsible for accreditation; 1) 2) Local Construction Industry Development Policy 17
Image result for government of lesotho logo Concurrences Secured from: Local Government 1) 2) Education 3) Energy 4) Tourism 5) Trade Local Construction Industry Development Policy 18
Image result for government of lesotho logo 6. Implementation arrangements BUILT ENVIRONMENT INSTITUTE OF LESOTHO BEIL STAKEHOLDER STRUCTURE MINISTER OF PUBLIC WORKS BEIL BOARD LESOTHO COUNCIL FOR BUILT ENVIRONMENT BUILT BUILT ENVIRONMENT PROFESSIONALS COUNCIL ENVIRONMENT CONTRACTORS & SUPPLIERS Secretariat Administrative Secretary BEP Administrative Secretary BEC
Image result for government of lesotho logo 6. Implementation arrangements Create Lesotho Construction Industry Development Council. Set up CID levy on registered projects (Rate to be set by Minister) Create Committee to Manage Registration and Categorisation of contractors within CID Council. Register of contractors to be published annually (Gov. Gazette) 1) 2) 3) 4) Local Construction Industry Development Policy 20
Image result for government of lesotho logo 6. Implementation arrangements 5) Register Projects above value to be set by Minister. 6) Bring Management of Levy fund to Construction Industry council. 7) Create Committee to Manage Development of Contractors, (promoting best practice, Training, Mentoring, Protection of local companies, Support to Contractor s Associations, JVs, sub- contracts). Local Construction Industry Development Policy 21
Image result for government of lesotho logo 6. Implementation arrangements 1) An experienced Professional Architect An experienced consulting Professional Engineer An experienced Professional surveyor 3 contractors from different sections of the industry 2 person from client organisations 2) 3) 4) 5) Local Construction Industry Development Policy 22
Image result for government of lesotho logo 6. Implementation arrangements 6) A representative of local financial institutions 7) A representative of local construction suppliers 8) A representative of local groups with special interest in construction industry (Foundation) 9) PS MOPW 10) PS MOLGC 11) PS MOF Local Construction Industry Development Policy 23
Image result for government of lesotho logo 7. Funding Initial setup and first year financing applied for from World Bank and Government counterpart. 2) Subsequent years from construction industry development levy on registered projects, plus registration fees and penalties for large infrastructure projects. 3) Levy fund also used to support contractors, guarantee selected finance agreements, training and best practice promotion. 4) Registration of prefessionals and contractors 5) Annual Membership subcription fees for professional and professionals 6) Accreditations of professionals 7) Categoriation of contractors 1) Local Construction Industry Development Policy 24
Image result for government of lesotho logo Khotso Pula Nala Local Construction Industry Development Policy 25
