CITIZEN ECONOMIC EMPOWERMENT ACT, 2006: SUBSIDIARY LEGISLATION

INDEX TO SUBSIDIARY LEGISLATION

Citizen Economic Empowerment (Preferential Procurement) Regulations

Citizens Economic Empowerment (Reservation Scheme) Regulations

Citizens Economic Empowerment (Reservation Scheme) Regulations

Citizens Economic Empowerment (Transportation of Heavy and Bulk Commodities by Road) (Reservation) Regulations

CITIZEN ECONOMIC EMPOWERMENT (PREFERENTIAL PROCUREMENT) REGULATIONS

[Section 19]

[Currency mentioned in this regulation should be re-denominated as stipulated under S 4 of Re-denomination Act, 2012, read with S 29 of Bank of Zambia Act, 1996.]

Arrangement of Regulations

   Regulation

   1. Title

   2. Interpretation

   3. Application of preferential procurement system

   4. Preferential treatment

   5. Reservation schemes

   6. Non-consulting services

   7. Staff of foreign bidder

   8. Evaluation of bids on functionality

   9. Cancellation and re-invitation of bids

Act 9 of 2006,

SI 36 of 2011.

1. Title

These Regulations may be cited as the Citizen Economic Employment (Preferential Procurement) Regulations, 2011.

2. Interpretation

In these Regulations, unless the context otherwise requires—

"Authority"  means the Zambia Public Procurement Authority provided for under section 5 of the Public Procurement Act, 2008;

"bid"  has the meaning assigned to it in the Public Procurement Act, 2008;

"Commission"  has the meaning assigned to it in the Act;

"functionality"  means the capacity of a service or commodity to provide an acceptable level of performance taking into account, among other things, the quality, reliability, viability and durability of the service or commodity and fitness for purpose; and

"State institution"  has the meaning assigned to it in the Act.

3. Application of preferential procurement system

A State institution shall apply a preferential procurement system in accordance with the Act and these Regulations.

4. Preferential treatment

A State institution may, in evaluating a bid, adjust the bid price in order to facilitate preferential evaluation of a bid as follows:

   (a)    for a citizen-influenced company, by four percent;

   (b)    for a citizen-empowered company, by eight percent;

   (c)    for a citizen-owned company, by 12 percent; and

   (d)    for domestically manufactured goods by a citizen-influenced company, citizen-empowered company and citizen-owned company, by 15 per cent.

5. Reservation schemes

   (1) The Commissioner and the Authority shall reserve a public procurement for a citizen-influenced company, citizen-empowered company or citizen-owned company with estimated values as follows–

   (a) with respect to goods, public procurement of goods not exceeding 3 billion kwacha (K3, 000,000,000.00); and

   (b) with respect to works–

      (i)    building construction works not exceeding 20 billion kwacha (K20, 000,000,000.00); and

      (ii)    civil and road works not exceeding 30 billion kwacha (K30, 000,000,000.00).

   (2) A citizen-influenced company, citizen-empowered company or a citizen-owned company participating in a public procurement that exceed the estimated values provided for in sub-regulation (1) shall not be eligible for reservation as specified in sub-regulation (1).

6. Non-consulting services

A procurement of a non-consulting service below the value of one billion kwacha (K1, 000,000,000.00) shall, unless it is not possible to acquire the services of a citizen-influenced company, citizen-empowerment company or citizen-owned company, be exclusively reserved for a citizen-influenced company, citizen empowerment company or citizen-owned company.