The Contractors Assistance Fund is a facility set up with the aim of assisting contractors in securing Bid bonds and bank guarantees for advance payments from commercial banks. To facilitate this, CRB has allocated certain amount of money from its proceeds and set up a special fund to be used as security to facilitate guarantees to registered contractors when procuring bid bonds and Bank guarantees for advance mobilization loans. Depending on the level of utilization, the fund may later on provide guarantee for performance bonds and short-term financial credits.
Eligibility of Contractor
Currently eligibility to CAF Membership is to Contractors registered in classes V-VII or II and III for specialist Contractors. They should apply for registration by filling in application form and pay a non-refundable fee of Tsh 300,000/=. In addition the Contractor should submit photographs of Directors and Board resolution by Directors or Partners of the company expressing their intetion to apply for CAF.
To qualify for guarantee, the following additional conditions will apply:
- The Contractor must be current on his obligations to CRB including payment of Annual Subscription Fees and submission of Annual Returns
- The Applicant must indicate the specific contract to which the guarantee is applicable and submit tender condition and/or signed contract to CRB before a guarantee or Bond can be granted.
- The applicant must have an operating account(s) with commercial bank(s).
- The contractor can only be guaranteed for one tender / contract at any time subject to a limit of Tshs 50.0 million per guarantee.
- Applicants shall be able to pay to the bank the bank commission applicable on the Bond/bank guarantees. In addition the applicant shall pay to CRB a nominal commitment fee equal to 0.5 % of the guaranteed amount.