1. CONTRACTING USING LOCAL CONSTRUCTION FIRMS

2. Contracting: road sector problems
Direct execution by government no longer acceptable (donor opposition,inefficient, but feasible if it could be properly managed)
Must develop small construction and maintenance enterprises located outside the capital to do small jobs in their areas
These can be small informal sector ones for labour supply for maintenance or to sub-contract to larger formal sector equipped ones for spot improvement works
Decentralisation of management trained in contract management also necessary
But sustainability of a rural construction sector difficult because conditions for survival are not there

3. Contracting: contractor difficulties
Demand for construction weak and variable so firms must have access to working capital and be polyvalent
Jobs are small so firms must be also
Firms must minimise investment: rather rent equipment as necessary and stick to labour-based works
Contractors can be predatory and not always competent. Good contract management and training must be provided
They suffer from slow disbursement procedures: contract administration must be efficient
Good trained need a basic equipment package: credit or leasing can be part of a training programme

4. Contracting: advantages
Provides a rural work base from which firms can expand to other types of construction to survive troughs
A major contributor to rural employment and poverty reduction (maximise multiplier effects)
And with the necessary support, a promotor of gender equality
Guarantee road sustainability
Construction sector is vital to all rural development infrastructure

5. Contracting: what to do to help
Provide multi-level assistance to potential entrepreneurs (classroom and on-the-job training, guarantees of future work, credit to buy or lease basic equipment package)
Implement simplified contracting procedures
Make sure payment procedures are efficient and rapid
Finance rural infrastructure (roads, clinics, schools, etc.)
Provide effective contract supervision, sanction corruption and incompetence