Potential investors are invited to partner with the government in Public Private Partnership Centre (PPP) stashes.
Potential investors are invited to partner with the government in Public Private Partnership Centre (PPP) stashes.
This follows government’s commitment to create an enable good environment for private sector participation.
Mr. David Kafulila, the Executive Director of the Public Private Partnership Centre (PPP) says his institution serves as a fundamental hub for coordinating and promoting PPP endeavours across the country, and with the PPP Act, it serves as a cornerstone for Tanzania’s development agenda.
According to him, these incentives are instrumental in attracting both local and foreign investors. He states that the amended legislation introduces crucial provisions aimed at expediting project execution and enhancing investor confidence.
A comprehensive institutional and legal framework was established under the PPP Policy 2009, PPP Act Cap 103, and associated Regulations, concluding in the establishment of a dedicated PPP Centre.
“Notably, Section 15 allows for exemptions from competitive bidding under specified conditions, such as urgent project needs or proprietary technology requirements held by private entities,” he points out.
Mr. Kafulila underscores that such measures streamline procurement processes while ensuring transparency and efficiency.
Talking about dispute resolution in PPP, Kafulila outlines that Section 13 introduces mechanisms for settling disputes, including international arbitration options…a move designed to mitigate risks and encourage foreign investment.
These measures, according to him, are critical in fostering a conducive environment for sustainable PPP engagements.
The Act’s implementation comes at a pivotal juncture, coinciding with Tanzania’s strategic vision to accelerate economic growth and improve infrastructure accessibility nationwide.
He reiterates that as the nation moves forward under the amended PPP Act, the convergence of public and private interests promises not only enhanced infrastructure but also sustained economic prosperity for Tanzania and its people.
He notes that the bulk of projects lined up for PPP were mostly roads construction, power generation and transmission, adding that PPP would enjoin the private sector into joint ventures with government agencies to establish then operate mega-projects.
The PPP relieves the government of its burden of funding key and costlier projects then boost Tanzania’s foreign direct investments (FDIs) by attracting foreign investments.
Other projects eyed for PPP are construction of a 205-km dual carriageway from Kibaha in Coast Region near Dar es Salaam to Morogoro, Dar es Salaam Outer Ring Road (77.5km) and Morogoro-Dodoma Expressway 258 km has been earmarked for PPP execution, now seeking potential partners.
There are also pipelines PPP transport infrastructure projects including the Dar es Salaam Rapid Transport (DART) system and the Morogoro-Dodoma Expressway to crucial energy projects such as the Ruhudji and Rumakali Hydropower plants.
Healthcare, water supply, education, defence, and agriculture sectors that are also beneficiaries of PPP initiatives, reflecting a holistic approach to national development.
Through PPP initiatives, in the transportation sector there are Dar es Salaam Rapid Transport project (DART) – Phase I to Phase VI, Construction of a Four-Star Airport Hotel at Julius Nyerere International Airport, Development of a Commercial Complex at Julius Nyerere International Airport, Construction of Commercial Complex and other facilities at Kilimanjaro International Airport, installation of Conventional Buoy Mooring project at Dar es Salaam and Tanga Ports and Dar es Salaam–Dodoma SGR Rolling Stocks.
PPP are quite complex to prepare, structure and transact, and require specialised skills not always available in ministries and institutions. Therefore, Public-Private Partnerships (PPPs) are crucial in order to increase the country’s capacity to intervene in the provision, improvement and expansion of public services.
“It is within this legal framework that the government has been establishing PPPs to carry out major works and projects, especially in the areas of infrastructure, transport and communications, agriculture throughout its value chain, energy, and industry, to make various structuring initiatives in our economy viable”, Kafulila notes.
PPP method in Bangladesh has shown tremendous success in project implementation and people have already started getting benefits from different projects under it.
The PPP authority in Tanzania traces its roots back to the early 2010s when the government recognized the need for private sector participation in infrastructure development to meet the nation’s growing demands.
According to Mr. Kafulila the PPP centre is an independent government agency aimed at reshaping Tanzania’s infrastructure landscape. President Samia Suluhu Hassan signed the Public Private Partnership (PPP) Amendment Act into law on July 5, 2023.
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