AEBTP Project

PROJECT PROPOSAL DOCUMENT

FOR

CAPACITY EMPOWERMENT PROJECT

FOR CONSTRUCTION SECTOR IN

RWANDA

PREPARED BY

AEBTP

FOR

GRANT REQUEST

ASSOCIATION DES ENTREPRENEURS DU BATIMENT ET

TRAVAUX PUBLICS

(A.E.B.T.P.) B.P. 319 Kigali Tl. mob. : 0788303276 / 0788533335 Email :

[email protected]

Project Summary

Name of Project Capacity empowerment

project for construction

sector in Rwanda

Name of implementing

Organization AEBTP

Contact Address B.P. 319 Kigali Tel mob:

0788303276 / 0788533335

email:

[email protected]

Contact Person NSENGUMUREMYI Alexis

Position President of AEBTP

Type of Project Capacity building

Duration of Project Two years

Amount of Fund requested RWF339,300,000

Table of contents

Project Summary .................................................................................................................... 2

Table of contents .................................................................................................................... 3

Background and problems analysis ....................................................................................... 4

Preamble ................................................................................................................................ 4

Problem statement .................................................................................................................. 4

Construction Sector challenges .............................................................................................. 6

Existing solutions to the above challenges ............................................................................ 7

Objectives of this project ....................................................................................................... 8

Project Beneficiaries .............................................................................................................. 8

Project implementation strategy ............................................................................................ 9

Project Monitoring and Evaluation ...................................................................................... 10

Project feasibility and sustainability .................................................................................... 10

Project Budget ...................................................................................................................... 12

List of targeted beneficiaries ................................................................................................ 13

Background and problems analysis

Preamble

The Rwanda Association of Building and Public Works Contractors; in French Association

des Entrepreneurs du Btiment et Travaux Pratiques (AEBTP), established in November

1998, is regulated by law N 51/2001 of 30/12/2001. It brings together all building and

public works contractors in Rwanda with the aim of promoting their respective activities to

substantially contribute to economic development of Rwanda. Since its inception, the

association has advocated and promoted the interests of its members; improved conditions

under which their profession is exercised; provided training and information; encouraged

collaboration and partnerships as well as harmonizing professional relations for its

members.

AEBTP is composed by over 330 members; it is under the chamber of Industry in the

Private Sector Federation (PSF).

AEBTP has the Vision to maintain standards, ethics and high level of professional

competence in the construction field and with a mission to advance, promote and develop

contractors by providing all the expertise necessary for the socio-economic needs of

mankind.

Problem statement

The construction industry is a sector of the economy that transforms various resources into

constructed physical economic and social infrastructure necessary for socio-economic

development. It embraces the process by which the said physical infrastructure are planned,

designed, procured, constructed or produced, altered, repaired, maintained, and

demolished.

The constructed infrastructure include: Buildings, Transportation systems and facilities

which are airports, harbors, highways, subways, bridges, railroads, transit systems,

pipelines and transmission and power lines. Structures for fluid containment, control and

distribution such as water treatment and distribution, sewage collection and treatment

distribution systems, sedimentation lagoons, dams, irrigation and canal systems

underground structures, such as tunnels and mines.

The industry comprises of organizations and persons who include companies, firms and

individuals working as real estate developers, consultants, main contractors and sub-

contractors, material and component producers, plant and equipment suppliers, builders

and merchants. The industry has a very close relationship with clients and financiers.

In Rwanda Despite the boom in the construction sector that has partly led to the recent high

growth rates in the real economy; the sector is still challenged with low levels of

professionals, leading to lack of dynamism. The challenge ranges from contractors,

consultants and supervisor engineers.

The Rwandan construction industry, which many expect to go through a high growth

phase, owing to an increased number of construction projects, and a greater focus on

housing projects and large-scale infrastructure projects, is facing severe problems regarding

construction project delivery, these problems stem from a lack of capacity, skills shortage and

quality standards.

According to Rwanda skills survey (2012); construction sector report; construction sector

is very risky because many actors involved, lack necessary knowledge and skills,

experience, and guidance to undertake whatever it takes correctly and professionally. This

is evidenced by several projects that are neither completed on budget nor in time plus

reports that reveal the skills gap in the construction sector.

Generally, companies are required to effectively carry out business transactions in an

organized way to achieve the purpose of execution of operational goals. Apart from

deciding the nature and scale of operations, process details, etc., the owners have to select

the form of organization that will primarily meet goals for initiating the business

operations, achieving business objectives, and for meeting the needs of growth for

sustainability.

For any construction company to succeed it must continuously focus and ensure to have a

worthy market, effective and efficient leadership, skilled and hence productive staff,

modern equipment and facilities, effective systems and controls, customer satisfaction,

innovations and creativity with adaptability.

Companies in Rwanda are instead characterized by poor growths due to insufficient

profitability and strengths for sustainability.

Therefore, capacity building for construction contractors and practitioners in Rwanda is

highly needed and appreciated.

Construction Sector challenges

An efficient construction industry requires adequate and appropriate numbers of different

professionals at all levels to effectively execute its work. The industry, however, is faced

with a number of problems.

The construction industry is experiencing a severe skills deficit gap even at the time when

the sector is increasingly gaining traction in the economy.

As the economy continues to grow, and attracting more investments, more opportunities

for the construction sector are emerging, thus bolstering the demand for skilled and

experienced labor.

While Government of Rwanda is in the process of implementing mega infrastructure

projects, such as the railway, energy generation, methane gas, oil explorations, building

roads and bridges as well as irrigation schemes and mining, and the private individuals or

organizations are investing in housing development, skilled labor and technicians are

needed to facilitate the operations.

However, the supply of qualified engineers is too insufficient to match the demand keep

pace with what the market is demanding for. Even among the ones in the market most do

not have the required experience and expertise especially in specialized engineering fields.

According to data obtained from the Ministry of Public Labor, the construction sector in

Rwanda has a total skills gap of 3,259 labor units, which accounts for 65% of the existing

labor force. The survey also indicates that the skills gap in the sector is dominated by

Artisans who account for 86%, Technicians 8%, Scientists Professional 4%, Managers 3%,

and Professionals 1% of the total skills gap. The skills gap among Technicians is

dominated by Construction Supervisors at 40%, Electronics Engineering, Technicians 18%,

and Civil Engineering Technicians 17%. The occupations with the main gaps among

Artisans are Building Construction Laborers 47.2%, Stonemasons 20.1%, odd-job persons

7% and Sweepers 10% of the total artisan skill gaps. The existing employees also need

training in soft skills such as like leadership, business communication, and innovation.

Existing solutions to the above challenges

The Government of Rwanda (GoR) through Vision 2020 seeks to transform Rwanda into a

middle income country by 2020. This requires building a knowledge-based and

technology-led economy and strengthening the private sector. As the experience from more

industrialized countries and fast growing economies indicate, achieving such a goal

depends on the quality and quantity of the human capital that a country has in both the

public and private sectors. These are also fundamentals upon which technological,

economic and social advancements are based. From this perspective, the rapid development

of human capital is Rwandas most pressing development challenge to implement

respective national programs and priority initiatives. Among the solutions to the above

challenges the Government of Rwanda put in place different mechanisms one of them is

Rapid Response project, under WDA management.

Rapid Response project is a primary gateway to the workforce system for both dislocated

workers and employers and is a component of a demand driven system. The central

purpose of Rapid Response is to help laid-off workers quickly transition to new

employment. Rapid Response acts as both a provider of direct reemployment services and

as a facilitator of additional services and resources.

Rapid Response project must take an ongoing, comprehensive approach to planning,

identifying, and responding to layoffs, and preventing or minimizing their impacts

whenever possible. To ensure high quality and maximum effectiveness, successful Rapid

Response strategies include:

Informational and Direct Reemployment Services for Workers

Convening, Facilitating, and Brokering Connections, Networks, and Partners

Solutions for Businesses in Transition; Growth and Decline

Therefore AEBTP as an association of construction contractors needs to participate in this

Rapid Response project, to end up the direct problems found in construction industry in

Rwanda.

Some of actual problems faced by construction industry in Rwanda are under the following

range:

1. Machinery operators, mechanical and conductors (bulldozers, tower crane

operations)

2. Painting,

3. Tiling,

4. Topography,

5. Surveying,

6. Plumbing,

7. Electricity

8. Works costing,

9. Usage of gypsum in construction (ceiling and wall partition).

10. Alminium and curtain walling.

Objectives of this project

In order to achieve its goals, AEBTP in this project, generally, intends to upgrade the

capacity of the workers in construction in some specific domains which normally have very

rare skilled employees (where we import employees), so that our members get the skilled

employees and therefore become more competitive on local, region and international

market.

AEBTP specifically will coordinate the whole project and here under are the specific

objectives:

To plan and prepare the trainees from different construction companies;

To hire the trainings providers in the foresaid intervention domains;

AEBTP Members will provide training space (workshops and other premises) and,

materials (equipment & Machines)

To supervise the whole training programs as well as practical part of the programs.

Project Beneficiaries

There are three different beneficiaries groups for this project.

The first, and primary, beneficiaries are the members of AEBTP countrywide. Now time,

330 contractors are registered as members of AEBTP, however due to that most of the

companies are small and execute very few projects per year, this project targets the first

three categories (A, B, C) in all types of construction sector: buildings, roads and bridges,

dams, marshland development and hillside irrigation and drinking water supply (see the list

on appendix), total number of companies found in the first three categories is 58. In

average, each company will provide 2 trainees per each domain aforementioned, hence the

total number of trainees will be 1,160. We hope that this project will expand to more

companies as they upgrade the categories, since the categorization process will continue

over the years, as companies acquire new capacities.

The second group of beneficiaries is made of Government institutions which follow up the

growth of the sector and its outcome in matter of legal framework and standards of the

products and services provided. This group will benefit the skilled contractors and outreach

framework of contractors. The regulatory system will base the activities on the standards of

quality work delivered by the sector as whole. As the number of trainees will increases,

importation of employees will be reduced, hence the employment of local staff will

increase, and this will also improve the competitiveness of Rwandan Companies on local

and regional market. Hence, national economy will also be improved.

The third group is made of the public and private customers who demand the products and

services from the sector. This project will help the public and private customers of the

construction sector to get the effective and efficient products/services in matter of quality

and time respect.

All the clientele groups are important and essential components of this project. It is

expected that significant improvement of the products and services as well as the growth of

the enterprises, and the partnership between Government, construction sector and

customers will be improved significantly.

Project implementation strategy

This plan is established in a period of two years, we believe that after that period AEBTP

will be able to sustain its capacity building activities by itself with the help of the

membership annual subscriptions and of course with the help of different partners.

The training shall be conducted by Participative approach which is supported by the

adults training techniques that shall include workshop, lectures, group discussions,

practical, and the case studies which will take place in different construction projects, with

the help of AEBTP Members. The above method shall be used together with the alternation

between the assimilation of the concepts and practical exercises, which is Learning by

Doing, this will also be conducted in construction projects and will be totally evaluated by

AEBTP; (Employers will be allowed to appreciate their employees on training). These

approaches and interactive techniques will be applied all along the theoretical and practical

presentations

During this project, the following activities will be carried out in order to achieve the

objectives:

- Members mobilization and sensitization for further understanding of the project,

- Preparation of trainees from different companies (local),

- Hiring skills provider agencies, according to their competitive programs and the

skills needs identified,

- Identification of construction site that can offer the training site to our trainees,

- Hiring and preparation of necessary learning machinery and equipment,

- Approve the training timetable provided by hired training provider.

- Management of trainings delivery,

Project Monitoring and Evaluation

The project will be monitored by AEBTP in its all component, the evaluation will be done

by AEBTP jointly with the direct beneficiaries. Midterm (6months) evaluation Reporting

will be done and sent to WDA Rapid Response Program. Every activities carried out will

be monitored to ascertain whether it is done correctly, at the given time frame and whether

the desired effect(s) is achieved. A monitoring format will be prepared with the help of

WDA Rapid Response Program and used daily by the monitors.

Project feasibility and sustainability

The people in the Companies, members of AEBTP are business oriented who target to

contract and execute the construction project. However, all of them said that they met

several constraints in their activities due to the shortage of skills. Therefore, they are all

aware of the importance of this project. During the field visit we discovered that most of

the contractors really need the skilled employees, but they dont know how to get them.

Hence, it is an opportunity for them to provide the identified needed special skills to local

construction employees. The contractors accepted to provide the sites and some equipment

and material for such trainings, of course the project will provide addition tools.

Project Budget

Term I (6months) Term II (6months) Term III (6months)

Item Deliverables Benef. Cost/Unit Total Benef. Cost/Unit Total Benef. Cost/Unit Total

1 Number of trainees in

Machinery operations,

Mechanical and conduction

(bulldozers, tower crane

operations)

58 250,000 14,500,000 58 250,000 14,500,000 58 250,000 14,500,000

2 Number of trainees Painting 58 150,000 8,700,000 58 150,000 8,700,000 58 150,000 8,700,000

3 Tiling 58 100,000 5,800,000 58 100,000 5,800,000 58 100,000 5,800,000

4 Topography 58 250,000 14,500,000 58 250,000 14,500,000 58 250,000 14,500,000

5 Surveying 58 150,000 8,700,000 58 150,000 8,700,000 58 150,000 8,700,000

6 Plumbing 58 150,000 8,700,000 58 150,000 8,700,000 58 150,000 8,700,000

7 Electricity 58 200,000 11,600,000 58 200,000 11,600,000 58 200,000 11,600,000

8 Works costing 58 200,000 11,600,000 58 200,000 11,600,000 58 200,000 11,600,000

9 Usage of gypsum in

construction (ceiling and wall

partition)

58 250,000 14,500,000 58 250,000 14,500,000 58 250,000 14,500,000

10 Alminium and curtain walling 58 250,000 14,500,000 58 250,000 14,500,000 58 250,000 14,500,000

Total 580 113,100,000 580 113,100,000 580 113,100,000

GRAND TOTAL RWF 339,300,000

List of targeted beneficiaries

No CONSTRUCTION COMPANIES (CATEGORY A, B, C)

TYPE 1: BUILDINGS

CATEGORY A

1 EGECOR CREDO LTD

2 ENTREPRISE DE CONSTRUCTION SEBULIKOKO N.EMMANUEL

3 ENTREPRISE GENERALE DE CONSTRUCTIONS (E.G.C )

4 ENTREPRISE MUGARURA ALEX (EMA)

5 ENTREPRISE RUBARE JOSIAS (E.R.J)

6 FAIR CONSTRUCTION S.A.R.L

7 HORIZON CONSTRUCTION

8 HYGEBAT LTD

9 REAL CONTRACTORS LTD

CATEGORY B

10 E.C.M LTD

11 ECOSEKAT

12

ETS KAZOZA JUSTIN & CIE (ETABLISSEMENT KAZOZA JUSTIN ET

COMPAGNIE)

13 PRECISION HEAVY MACHINERY

CATEGORY C

14 ACOREBA

15 B.E.S & SUPPLY LTD

16 BETEX LTD

17 BETRA CONSTRUCTION

18 DELTA TWO CONSTRUCTION LTD

19 ECBRH LTD

20 ECODIV

21 ECOMEM CO LTD

22 ELECOM

23 EMG CONSTRUCTION COMPANY LTD

24 GEMT COMPANY LTD

25 GENUINE COMPANY "GECO" LTD

26 GOOD SUPPLY & CONSTRUCTION LTD

27 IRON ENGINEERING COMPANY (IECO LTD)

28 NOVAKI

29 STRONG CONSTRUCTIONS LTD

TYPE 2: ROADS AND BRIDGES

CATEGORY A1

30 ENTREPRISE DE CONSTRUCTION SEBULIKOKO N.EMMANUEL

31 ENTREPRISE MUBIRIGI PAUL (EMP LTD)


33 HORIZON CONSTRUCTION

34 NPD-COTRACO

CATEGORY A2

35

ENTREPRISE RWANDAISE DE GENIE CIVIL ET CONSTRUCTION

(ERGECO LTD)

36 SAM CONSTRUCT

CATEGORY B2

37 PRECISION HEAVY MACHINERY

CATEGORY C

38 ECOTIBAT

39 EGECOR CREDO LTD

40 GEMT COMPANY LTD

TYPE 2: DAMS

CATEGORY A

41 ENTREPRISE MUBIRIGI PAUL

CATEGORY B

42 EGECOR CREDO LTD

CATEGORY C

43 EMUJABO (ENTREPRISE MUHAYIMANA JEAN BAUDOUIN)

44


(ERGECO LTD)

TYPE 4: MARSHLAND DEVELOPMENT AND HILLSIDE

IRRIGATION

CATEGORY A

45 RURAL AND CIVIL ENGINEERS CONSULTANTS (RCEC) LTD

CATEGORY B

46 ECOMAF Ltd

47


(ERGECO LTD)

48 SAM CONSTRUCT

49 STAR CONSTRUCTION AND CONSULTANCY


TYPE 5: DRINKING WATER SUPPLY

CATEGORY A

51 ENTREPRISE GENERALE DE CONSTRUCTIONS (E.G.C )


53 HYGEBAT LTD

CATEGORY C

54 COMECA LTD

55 ENTREPRISE DE DIVERSES CONSTRUCTIONS [DICO]

56 ENTREPRISE MUGARURA ALEX (EMA)

57 LE GOMTRE TOPOGRAPHE CONSULTANT (G.T.C)


Source: RPPA, final categories of buildings and civil engineering works

Documents

AEBTP Project