Mozambican government wants to privatise Roads and Bridges Construction and Maintenance Companies

9 November 2011

Maputo, Mozambique, 9 Nov – The Mozambican government plans to privatise its roads and bridges construction and maintenance companies (Empresas de Construção e Manutenção de Estradas e Pontes – ECMEP), which are currently facing financial and organisational troubles, according to the Mozambican press.

Cited by Mozambican daily newspaper Notícias, the deputy Public Works and Housing Minister, Francisco Pereira, said in Nampula that he was sure that the companies would no longer be managed by the State, but added that the decision made would be based on the results of a study ordered by the Government to establish the viability of the companies.

However, taking into account the difficulties faced by those companies, the deputy minister said that they should be privately managed.

Except in the city of Maputo, the ECMEP companies have offices in the country’s remaining provinces and their structure is rather heavy, which is incompatible with the crisis they are facing and has led to their lack of credibility amongst construction companies.

Notícias also said that the technical capacity of the companies has been continually eroded following the alleged sale, by employees, of equipment and vehicles as a way of reducing problems with delays in payment of salaries.

The ECMEP companies were set up as state bodies in 1988 and became limited liability companies in 11 years later. They were considered to be strategic for the road and bridges sector in Mozambique. (macauhub)