Annual Review – post April 2018

Title: Corridors for Growth

Programme Value £61 million: Review Date: 23/9/18
Programme Code: 204369 Start Date: 23/9/16 End Date: 23/9/21

Summary of Programme Performance

Year 16/17 17/18
Programme Score A A
Risk Rating Major Major

DevTracker Link to Business Case: http://iati.dfid.gov.uk/iati_documents/5667343.odt

DevTracker Link to Log frame: http://iati.dfid.gov.uk/iati_documents/5667344.odt

A. Summary and Overview (1-2 pages)

Description of programme (1/2 page)
The DFID Tanzania Corridors for Growth (C4G) programme aims to speed up large-scale investment in
Tanzania’s transport infrastructure and develop capacity for Public Private Partnerships (PPP’s). There
is a pressing need to invest in Tanzania’s infrastructure to meet the demands of a rapidly growing
population and economy. The programme is expected to facilitate greater domestic and international
trade which will ultimately lead to economic growth and poverty reduction.

The programme is delivered through two World Bank trust funds:

 The C4G Transport Trust Fund is a strategic investment to advance the development of transport
infrastructure in Tanzania as well as supporting regional links under the EAC’s1 Integrated
Corridor Development Strategy2. Together with the World Bank (WB) the programme is co-
financing $12m of the $420m redevelopment of Dar es Salaam Port and providing upfront
technical studies which will accelerate the start of five new major infrastructure projects in future.
 The Tanzania PPP Support Programme (TPSP) is funding project preparation and technical
assistance for a pipeline of pioneering low-risk, mainly municipal PPP’s. This will build capacity
for the scaling up of Tanzania’s PPP programme inclusive of larger complex PPP’s. The scale-
up is essential to closing the infrastructure financing gap and raising the quality of infrastructure
and other public services.

Summary supporting narrative for the overall score in this review (1/2 page)
The annual review was based on field visits and meetings with key stakeholders by two teams of DFID
advisers in June 2018 and on the Annual Reports for the two trust funds. The annual review finding is
that the second year has largely gone to plan with some key areas for further attention. Although the
Dar Port component is performing moderately below expectation, the project preparation and PPP
components are both meeting or exceeding expectation so on balance the programme has scored an A.
 The Dar Port upgrade consists of four sub-projects: Construction on berth 0-7 is on track, work
on berth 8-11, dredging and institutional strengthening are all progressing more slowly. Project
preparation for future infrastructure investments is meeting expectations, the pipeline has started
to deliver high level studies, and a strong pipeline of implementation level studies are awaiting
approval from the GoT
 The TPSP has exceeded expectation in some aspects but remains a high risk, high reward area
of work. The PPP model in Tanzania is not yet proven and the experience of uptake in other
African countries continues to provide a mixed picture, however the Tanzanian Government is

1 The EAC is the East African Community, which includes Kenya, Tanzania, Uganda, Rwanda, Burundi and South
Sudan.
2 The Integrated Corridor Development Strategy was endorsed by EAC Heads of State at their 2014 Infrastructure
Summit and remains a key action plan of the EAC
Smart Guide (version February 2018)
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 showing great interest in the programme, which has broadened to include new sectors and low
risk national level PPP‘s.

After two years of implementation the transport and PPP programmes are now well established within
the World Bank and second tier delivery partners who are mostly agencies or ministries in the
Government of Tanzania. DFID’s contribution to the implementation of the port investments is the most
visible element to top GoT decision makers, however the contributions to project preparation also allow
DFID increased access to high level officials in the line ministries and agencies. While neither funding
contributions are large enough for DFID to substantially influence either the GoT or WB programmes,
they do enable DFID to better understand the technical and political dynamics around Tanzania’s most
strategic assets and nudge decision makers towards better development outcomes. Insights gained
through programme activities allow DFID to maximise the benefits of its centrally managed contribution
to WB operations, which is one of the pillars of DFID’s strategic direction going forward.

Since the programme was approved in 2016 there have been substantial changes in context with the
Government of Tanzania (GoT) driving a more nationalistic approach to trade, less supportive of private
sector participation in strategic infrastructure and selective about accepting technical assistance. As a
result, the theory of change for the transport trust fund was amended during the first year of the
programme to include a greater focus on public sector infrastructure. Capacity building and municipal
PPP investment has been welcomed by government so there is no change to the Theory of Change for
the PPP support program.

Key Recommendations for the year ahead (1/2 page)

Given the more challenging context, maintaining progress on transport interventions is likely to be more
demanding particularly with the institutional strengthening aspects which are essential if all the desired
outcomes are to be achieved. More in-depth regular dialogue with senior GoT officials to build
consensus on key issues would be beneficial, especially where there are differing views such as how
best to deliver operational efficiency of the port and future project selection.

The WB Task Team Leader (TTL) for the Transport Trust Fund will change in October 2018 and key
DFID staff in mid-2019. This is a risk for programme delivery given the TTL and DFID staff’s shared hold
on the vision, plans, and relationships. A good handover will be essential to maintain relationships and
momentum, particularly for policy dialogue.

Good progress has been made on a range of new PPP initiatives however there is still a risk that the
target outcome of new PPP’s reaching financial close may not be achieved within the timescale of the
programme. It is recommended that attention is focussed on a limited batch of first-mover PPP’s to
prove the concept, utilising additional DFID grant funding if necessary to buy down risk for early projects.

B: DETAILED OUTPUT SCORING (suggest 1 page per output)

Output Title Dar Maritime Gateway Programme (DMGP) delivered

Output number per LF 1 Output Score B
Risk: Major Impact weighting (%): 20
Risk revised since last AR? N Impact weighting % revised N
since last AR?

Indicator(s) Milestones June 2017 Progress

1.1 Number of port projects on
target/delayed by not by more
than one year behind
expectation (15% weighting)
Target: three DSMGP projects on Partially Achieved, One project is on
track and the fourth not delayed schedule and three are delayed by less
by more than a year: than a year
Berth 0-7: Design complete and Berth 0-7: On track design and approx.
10% construction complete 20% of construction completed
Dredging Access Channel: Dredging Access Channel:
Dredging Design Completed In delay – feasibility study identified
Smart Guide (version February 2018)
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1.2 % of Transport Trust fund
procurements for which final
tender price falls within 25% of
the pre-bid estimated price
(5% weighting)
.3 Progress toward Green port
policy and ISO 14001.
(not weighted as is included
under TMEA logframe)
Berth 8-11: Feasibility Study
Underway
Institutional Strengthening:
TPA adopt plan to operate berths
1-7 as separate business units
Target 80%
Green Port Study completed, plan to
achieve ISO14001 agreed with TPA
requirements for further environmental
design which recently started
Berth 8-11: In delay – feasibility study
ToR’s being prepared by TPA
Institutional Strengthening: In delay –
TPA expect to institute separate business
units but this has not yet been officially
adopted
Achieved: 85% 6 out 7 procurement
were within 25% of the pre-tender price
estimate
Partially Achieved - Green Port Study
was completed, TPA are considering
whether to develop an Environmental
Management System as a first step
towards ISO14001 accreditation

Improving Dar Port is a priority for GoT as it is critical for Tanzania’s economy as a primary source of
revenue, and will have beneficial impacts for domestic and regional trade. The Dar es Salaam Maritime
Gateway Project consists of deepening and strengthening existing berths 1-113, constructing a new
multi-purpose berth, deepening and widening the entrance channel, and institutional strengthening.
DFID’s former Dar es Salaam Port Preparatory Phase Programme played a key role in preparing the
project and the subsequent Corridors for Growth Programme continues the UK’s engagement through a
$12m grant contribution to the overall $420m project cost. The World Bank are providing $345m in an
IBRD loan and Tanzania Ports Authority (TPA) are financing the remaining $63m from their own
sources.

Indicator 1.1 Partially Achieved

Improvements to infrastructure which makes up 95% of the project cost are progressing reasonably well
albeit with some substantial delays and delivery risks. The first $155m contract for deepening and
strengthening birth 1-7 is on track and the first refurbished births should become available for use by the
end of 2018 providing an initial improvement in facilities, pending a greater improvement once the main
dredging contract is completed. Preparation for the dredging contract and refurbishment of berth 8-11
have been making slow progress largely due to slow decision making within TPA hence the log-frame
milestones have been missed. Output and outcome level indicators should be revisited to better track the
results of the rehabilitation.

Institutional strengthening to improve port productivity focuses on supporting the restructuring of TPA
into business units on berth 1-7 where they acts as the operator and increase capacity to act as landlord
on berth 8-11 where they have a concession with a private operator4. In addition funding is available for
efficiency and environmental improvements. While funding allocated for institutional strengthening is
only 5% of the total cost it holds the potential for a transformational improvement to port services. The
component is also in delay and there are signs of misalignment with TPA priorities. Now the DSMGP
loan is effective the component needs greater attention if the full benefits of the programme are to be
realised. A new study has just been approved to identify the underlying constraints to port efficiency
from a customs perspective and It is recommended that a Political Economy Analysis (PEA) is carried
out to build on that and identify further opportunities for engagement.
The DSMGP is supported by a Technical Assistance5 (TA) team integrated within the TPA Project
Implementation Team (PIT). The TA drives planning with weekly technical meetings to update progress,
advising on what needs to be done, and flagging decisions that need to be made and implications of
delays. This indirectly builds TPA capacity but it not designed to deliver institutional change. Turnover
of senior TPA staff has been high in the past6 but this year has been relatively stable allowing greater
continuity of decision making, and the emergence of a young cadre of TPA staff allocated to the PIT.
3 This consists of the first contract for birth 1-7 and the new multi-purpose berth which has been awarded, and a
future contract for berth 8-11 for which the feasibility study ToR’s are being prepared.
4 TPA currently acts partially as a landlord having agreed a concession for berths 8-11 to a private operator, and
partially as a public service port, operating all the remaining berths as a public provider.
5 Sellhorn are waiting a WB funded single source contract, following on from a previous contract funded by TMEA.
Smart Guide (version February 2018)
iii
Indicator 1.2 Achieved – As a measure of Value for Money 85% of Trust Fund Procurement have been
within 25% of the pre-tender estimate. This reflects generally high standards for preparation of Trust
Fund Applications and Terms of Reference by the World Bank.
Indicator 1.3 Partially Achieved Progress towards a Green Port Policy and ISO14001 accreditation has
been partially achieved through the completion of the Green Port Study, funded through the now closed
Dar Port Preparatory Phase Programme. However progress to operationalise the findings have been
limited and require ongoing focus under the institutional strengthening activities of the project.

Provide supporting narrative for the score

The port component has scored a B – moderately below expectation based on an unchanged log-frame
in this reporting year. This reflects the substantial delays accumulated in 2017 on all sub-projects except
the berth 1-7 and multi-purpose berth contract. Since the start of 2018 a Steering Committee for the
DSMGP was established and chaired by the Permanent Secretary of Transport and gradual progress on
the delayed sub-projects has resumed but institutional strengthening is still lagging and needs renewed
focus. It is recommended that the log-frame be updated to reflect the delays incurred and the institution
strengthening milestones be split off as a separate indicator to raise its visibility.

Lessons identified this year, and recommendations for the year ahead linked to this output
Through a parallel DFID funded programme, Trade Mark East Africa (TMEA) have played a substantial
role in institutional strengthening particularly through the embedded Technical Assistance for TPA, ,
They completed a Port Productivity Baseline Study in 2017 which needs to be taken forward with a plan
of action and implemented. This needs to be extended to include new Standard Operating Procedures,
Key Performance Indicators, and tariff structures however TMEA’s activities have been curtailed recently
due to a delay in renewing their MoU with government and they are reducing their involvement at the
port. There is a resulting lack of clarity between DFID, WB and TMEA regarding how activities should
be taken forward which needs to be urgently resolved.

Recommendations
1. Resolve the responsibility for institutional strengthening and develop a clear plan for more timely
progress. WB and TMEA, by Nov 2018.
2. Revise the log-frame, with a separate output indicator for institutional strengthening and
milestones to deepen assessment. DFID by Dec2018.
3. Ensure the delivery plan captures key issues, decisions and their rationale by GoT, TPA and WB
to provide a clear record (retrospective and onwards) of programme progress. DFID by Oct2018
4. Establish more regular dialogue with senior GoT officials to ensure priorities and approaches are
aligned in relation to the port, as well as the linked road and rail corridors. DFID with WB, by
March 2019.
5. Update the PEA and develop an advocacy plan to address efficiency of port management and
operations, backing up the institutional reform programme. DFID with WB and TMEA, by March
2019.

Output Title Pipeline of major corridor projects progressing

Output number per LF 2 Output Score A
Risk: Major Impact weighting (%): 50%
Risk revised since last AR? N Impact weighting % revised N
since last AR?

Indicator(s) Milestones 2015/16 Progress

2.1 Number of project preparation Target: 4 project prep Exceeded Expectation Cumulatively19 TF
concept notes approved by TF applications approved for applications covering 40 studies approved
steering committee (20% inclusion on pipeline.
weighting)
2.2 Number of project preparation Target: 2 Achieved: 4 studies completed
activities completed (20%
6 As a result of government changes TPA has had four CEOs in 4 years, along with changes in key director posts.
New staff are often inexperienced in port operations which impacts on decision making.
Smart Guide (version February 2018)
iv
 weighting)
2.3 Impact Evaluation Progress Target Evaluation underway Partially achieved Evaluation ToR
(5% weighting) baseline survey completed, procurement to be launched
commenced pending government approval
2.4 % of all three component Target 80% Achieved: 81% Out of 11 procurements 9
procurements that have at least 4 met the criteria of having at least four
bidders from a multiple countries bidders, one had three bidders and one had
qualify for technical stage two bidders.
evaluation
Briefly describe the output and provide supporting narrative for the score
The Corridors for Growth project preparation facility uses grants to finance key project preparation
activities, designed to accelerate, and potentially unlock, World Bank financing for major infrastructure
projects across Tanzania. The projects currently under preparation are:

1. Lake Victoria Transport Program aims at revitalizing inland water transportation on Lake
Victoria as well as roads around the lake which will facilitate regional trade among Rwanda,
Tanzania, Uganda and Kenya.
2. Lake Tanganyika Transport Program aims at revitalizing inland water transportation on Lake
Tanganyika as well as roads around the lake, facilitating regional trade between DRC, Burundi,
Tanzania, and Zambia.
3. Southern Africa Trade and Transport Facilitation Program (SATTFP) – phase 3 is supporting
Dar es Salaam Corridor linking to Malawi and Zambia.
4. Proposed Tertiary Road Development Program aims to spread the benefit of transport
upgrades on primary corridors to adjacent rural areas for the benefit of low income communities.
As a first stage of project preparation the Tanzania Road Fund Board has requested Trust Fund
support for a National Road Inventory, Condition Survey and Spatial Database
5. Tanzania Development Corridors Transport Project will address congestion along key trading
corridors in Tanzania, particularly to rehabilitate the last road segments from Lusahunga to
Rwanda and Burundi.

The trust fund has a strong pipeline of project preparation activities, adding value to major infrastructure
initiatives across Tanzania. The flexible nature of the facility allows DFID to fund a wide variety of
projects and respond to emerging needs and projects quickly. Feedback from key stakeholders during
the annual review fieldwork was overwhelmingly positive with the facility seen as a key enabler in
allowing the World Bank to undertake projects. Without this funding, the World Bank would have to
search for alternative funding sources, including relying on smaller pots of internal funding which would
delay implementation - potentially severely.

The trust fund is also a strategic use of DFID funds because it enables DFID to engage in a measured
dialogue with GoT on major transport investments for economic growth in Tanzania in partnership with
the WB. It gives considerable insight and some influence over the World Bank’s portfolio that otherwise
would not be available to us contributing to DFID’s strategic aim of making the most of our multilateral
contributions.

Indicator 2.1 Exceeded Expectation

19 trust fund applications have been approved to date related to transport programmes within the current
WB pipeline, mainly the Lake Victoria and Lake Tanganyika Transport programmes. About £10m of
funds are committed with another £5m allocated out of a budget of £30m (annex 1 has a summary of
status). The five projects being supported are all at various stages of preparation with the first one
expected to go to the World Bank Board during the next year which is later than planned in the log-frame
however the end target is still expected to be met.

GoT decisions also impacted substantially on this component of the DFID Business Case, as noted in
the last annual review. Preparation was initially focused on studies linked to expansion of WB
rehabilitation of the narrow gauge railway, but GoT decided all further focus and funding for rail should
be only for construction of a parallel standard gauge railway. Component 2 focus has therefore shifted
to funding studies for the regional lakes programmes and trunk road projects, also under preparation by
the WB. More recently the programme has suffered long delays waiting for Grant Agreements with the
Smart Guide (version February 2018)
v
Government of Tanzania to be approved. These are expected to be resolved as the government finalises
its investment planning, but further delays may risk undermining the programme rationale.

Indicator 2.2 Achieved 4 studies were completed during the year, The study on Port Development and
Competition in East Africa is being developed into a flagship think piece due to be launched later this
year. The Central Corridor Safety Audit, and Great Lakes Fish Value Chain Study will both directly inform
project preparation and the Systematic Transport Risk Assessment has pioneered a new way of
quantifying climate related flooding risk for Tanzania. During the next year we expect to see more
studies completed that directly inform project preparation.

Indicator 2.3 Partially Achieved. The Impact Evaluation ToR’s have been revised and improved with
input from an evaluability study and also DFID EQUALS Quality Assurance Service. Due to the highly
analytical nature of this evaluation it fell behind the original schedule while a suitable study lead was
being identified in the World Bank. It is recommended the Logframe be updated to reflect this.

Indicator 2.4 : Achieved: Including the PPP Trust Fund 11 procurements took place this year of which 9
met the VfM criteria of having at least four bidders, one had three bidders and one had two bidders.

Lessons identified this year, and recommendations for the year ahead linked to this output
DFID developed a good application template for grants. A sample review shows clear justification with
the exception of additionality in relation to other sources of project preparation funding. The approved
applications include comments and responses which provide a clear record of the decision process.
However the grants for studies in isolation can sometimes appear to be non-strategic or ad hoc. They
need to be presented in relation to overall objectives and preparation requirements for the programme to
more clearly identify additionality and linkages. After completion, an assessment of quality of the product
would be beneficial as well as an assessment of how the studies were used with government as part of
project preparation dialogue (eg. a Strategic ESIA) and/or for policy dialogue (eg regional port study). As
the scope of studies has expanded beyond project preparation, an indicator to measure the policy impact
should be considered.

Discussions are ongoing about how to use of the remaining funds. DFID should ensure the trust fund
retains an overarching strategic rationale and does not get pulled into funding too diverse or unrelated
activities. Proposals included:
 Update the Transport Sector Investment Plan to support evidence based decision making and
planning.
 Re-consider (if/when politically appropriate) feasibility studies on remaining sections of the
narrow gauge railway to complete the rehabilitation of the rail corridor (ref WB TIRP US$300m).
This is on hold given the GoT position on the standard gauge rail.
 Consideration should also be given to opening up the project preparation facility to other
partners, to support acceleration of other priority transport sector programmes. This could
usefully strengthen overall transport sector alignment and coordination with GoT on key policy
issues and between donors linking to the overall transport sector plan and annual review
 Some grants have been broader than project preparation such as the Regional Port Study.
Broadening the scope of analytical work can be beneficial if it strategically informs dialogue on
transport sector policy, planning, performance and management in Tanzania.
 An increased focus on institutional issues would be useful to build the evidence base to tackle
major policy issues, such as the economic case for private port operations, capacity of MoT for
policy and coordination, effectiveness of the Road Fund in maintaining the network, impact of
non-tariff barriers, and a comparison of contractor capacity, costs and quality.

Recommendations
 Review the impact of accelerated project preparation on the acceleration of project effectiveness
and implementation start-up. DFID with WB, by March 2019
 Explore opportunities to broaden the vision and scope of the project preparation grants to inform
overall transport sector policy, planning, performance and management within the trust fund
process. DFID, by Dec2018.

Smart Guide (version February 2018)

vi
  Present the project preparation grants more strategically to show coherence and additionality to
the overall programmes, including the Tanzania component in relation to other country
components where relevant. DFID, by Dec 18.
 Follow up whether there is scope to increase WB project preparation funding above current
levels. DFID/IFID, by Dec 18
 Review the indicators to better measure additionality. DFID, by Dec 2018
 Consider options to open the Trust Fund up to a wider group of financiers, DFID by March 2019

Bankable PPP projects identified

Output Title
Output number per LF 3 Output Score A
Risk: Major Impact weighting (%): 30%
Risk revised since last AR? N Impact weighting % revised Y
since last AR?

Indicator(s) Milestones 2015/16 Progress

3.1 Expressions of interests (EOIs) Target: No EOI’s issued in first two n/a, Progress delayed with delivery
issued to prospective sponsors years expected in year 4
for PPP transactions
3.2 Number of feasibility/viability Target: 10 studies expected to be Achieved: I completed in year 2 with
studies completed completed in first year 23 draft studies completed
3.3 LGA staff having completed six Target: cumulative 60 staff Exceeded Expectation – 160 staff
modules of PPP training. completed PPP training. completed 6 modules of PPP training
% of trust fund procurements for and wide range of other training
which final tender price falls within activities also accomplished.
25% of the pre-bid estimated
price
Briefly describe the output and provide supporting narrative for the score
The Tanzania Public-Private Partnership Support (TPSP) Program has evolved considerably over 2017-
18. Under new leadership a broadened mandate has been agreed beyond Local Government Authority
PPP’s to include low risk7 national and Zanzibari PPP’s. Progress has been better than expected on
some fronts, notably in developing new approaches to model PPP’s, deepened engagement with the
Ministry of Finance and high level decision makers, and supporting improved PPP legislation. However
there has been substantial slippage in some other aspects of implementation, notably preparation and
approval of the Recipient Executed Trust Fund (RETF) and completing the initial batch of 14 PPP pre-
feasibility studies. The municipal PPP model is not yet proven in Tanzania and major uncertainties have
not yet been tested around developer interest, generating private finance and length of procurement.
While major risks remain, they are considered manageable therefore overall implementation progress
towards the project outcome of PPP’s reaching financial close is still considered to be on-track.

Indicator 3.1 n/a this indicator does not have a milestone this year however progress towards the 18/19
target is in delay since the initial 14 PPP’s and RETF are not ready which will have a knock-on delay to
the next stages preparing first mover PPP’s. However there is now a renewed urgency to
operationalizing the RETF and a rescheduling of project preparation activities is helping make up the
delay. Once up and running the pipeline is sufficiently strong that progress is expected to recover and
the following year (19/20) milestones should still be to be met. It is recommended that the 18/19
milestone is amended to reflect the delay.

Indicator 3.2: Achieved The submission of draft 22 pre-feasibility studies (PFSs) for municipal PPPs
(mainly markets and dala-dala/bus terminals exceeded this year’s target and also meets the target for
18/19. There is currently a temporary pause in commissioning further similar PFS’s to assess and learn
lesson from the current batch so no amendment to the logframe is needed. The PFS’s have been
valuable to build momentum and establish simplified financial models for bus terminals and markets
culminating in identification of 13 first-mover PPPs. They also provided a key learning-by-doing
7 The sectors currently being explored build on the World Bank’s operations in energy, water and waste water,
waste management, and health care.

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exercise over the year however with hindsight they could have been done through a more selective
choice of initial PPP’s and more rigorous discussions with LGA’s to raise commercial awareness. These
lesson have been taken on board and further targeted follow up with LGA’s is ongoing.

Indicator 3.3: Exceeded Expectation Training LGA staff was achieved, and exceeded as the
opportunities for training senior officals have now emerged. The PPP Node of the President’s Office-
Regional Administration and Local Government (PO-RALG) is taking a commendable lead role of
promoting and problem solving the emerging project pipeline. The Node is now leading discussion with
LGAs and stakeholders on project identification and design, and is sharing responsibility for delivering
intermediate PPP training. The cost of transport and accommodation for training has been high,
prompting an in-depth review during the course of which found no sign of wrong-doing but did provide
recommendations on how to economise and share costs with government which are now being
implemented8. Going forward training needs to be focused where it can be most effective to deliver the
first-mover PPP’s.

Lessons identified this year, and recommendations for the year ahead linked to this output
The opportunity to broaden the programme to national level PPP’s and support PPP‘s that build on the
wider World Bank portfolio is a positive development which was approved by the programme steering
committee. However the timescale of many WB projects are beyond the remaining life of the Trust
Fund and the complexity of portfolio makes it hard to track the impact of DFID support. Therefore to
meet the immediate programme outcomes it is important that the Trust Fund does not lose its initial
focus on municipal PPP’s. To this end the World Bank have identified 13 first-mover PPP’s in the market
and transport sectors which are considered ready to progress to the next stage of full feasibility study
and transaction advisory support. Progress on national PPP’s is the ultimate goal but in the short-term
the majority of TPSP funds are therefore still focused on municipal PPP’s.

A programme principle has been that selection of PPP’s is client led, supported by specialist advice from
the trust fund. This has worked well to generate programme ownership and it does seem there are
candidate PPP’s with identifiable revenues in the pipeline. As the pipeline progresses and standard
models emerge the programme should focus on the most promising models to avoid unnecessary
expenditure on PPP’s with low prospects. Some of the PPP models, particularly the markets, also
require significant behavioral change to move from low value street hawkers to higher value stalls and
shops. Whilst they would make a visible contribution to replacing, unhygienic, crowded and low grade
public facilities, there is the risk that they create a negative image of PPPs more broadly at a time when
there is considerable suspicion of the private sector from the government of Tanzania. Appropriate
caution should therefore be applied to progressing projects which are both deliverable in the short term,
but also ideally most beneficial for the longer term success of the PPP model. The best use of DFIDs
own funds in this context may also be best targeted at making delivery of PPPs more likely and/or
ensuring their quality is strengthened so as to provide a positive advert for the model.

 DFID and World Bank to agree and document key objectives and deliverables for next 12-18
months (most likely around delivery of first-mover PPPs). The next Annual Review should be used to
clearly assess whether the programme is likely to deliver on its immediate objective, i.e. viable PPP
projects and if not, the continuation of the programme should be reconsidered) – target end Oct 2018
 Ensure design of PPP delivery processes and the WB PPP communications strategy address
concerns about length of time and complexity of PPP procurements – proposals by end Oct 2018
 Focus training programme where it can be most effective to deliver first-mover PPP’s and
influence decision makers - by end Oct 2018
 Confirm a continuation of quality independent (i.e. non World Bank staff) assurance procedures
to provide a critical friend and challenge function – by Dec 2018
 DFID and WB to consider utilisation of some proportion of overall DFID funds to support the
deliverability of specific projects, e.g. through de-risking mechanisms or covering the costs of specific
DFID-supported project components (e.g. funds directed at ensuring new construction is gender neutral
and avoids exclusion) – Mar 2019
8 The Ministry of Finance (MoF) shared the cost of 5-day PPP training course for 250 officials held in August 2018. 120 officials
from LGAs, national agencies and Zanzibar are booked to undertake the World Bank-endorsed APMG PPP Certification within
the next 6 months. TPSP supported MoF-led PPP Briefings for around 70 ministers, vice-ministers, members of parliament, and
permanent-secretary level officials in September 2018.
Smart Guide (version February 2018)
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 C: THEORY OF CHANGE AND PROGRESS TOWARDS OUTCOMES (1-2 pages)

Summarise the programme’s theory of change and any major changes in the past year (1/2 page)

Since the original business case was prepared in May 2016 the political and economic context in
Tanzania has changed substantially. The theory of change and log-frame were updated during the first
year of the programme to align more closely with the public sector led focus of the current government.
The external context remains challenging but there has not been further trajectory changes since that
would require the theory of change to be revised again.

The Theory of Change in brief is that enabling domestic and international trade is essential for industry to
grow which in-turn provides jobs for sustainable poverty reduction. Improved transport and municipal
infrastructure is necessary to reduce barriers to trade in goods and services and has complementary
social benefits of better access to health, education and climate resilience. This will be tested through
an impact evaluation of the entire World Bank/DFID funded Integrated Corridor Programme expected to
be procured later this year.

Describe where the programme is on track to contribute to the expected outcomes and impact,
and where it is off track and so what action is planned as a result in the year ahead (1/2 page)

After two years of implementation the likely trajectory of the programme is clearer and there is now the
prospect of delivering tangible results during the third year. Across the whole programme progress
towards the intermediate outcomes are lagging somewhat behind expectation but this mainly reflects
uncertain delivery assumptions made in the original log-frame and final target outcomes are largely still
expected to be achieved.

The outcome indicator for component 1, Dar Port is improved (ie reduced) berth occupancy9. This is not
expected to show any change until at least the deepened TPA berths (1-7) become available in 2020.
The outcome result should ultimately be achieved as the upgraded facilities are completed. The Impact
level indicator of port volumes is symbiotic with the health of the economy and demand for imports. Port
volumes are rising slowly following a dip in recent years but it is too early to tell what level they will reach
by the end of the programme in three years’ time.

For component 2, five major projects are under preparation with Trust Fund support which should
ultimately meet the outcome target. The project is currently suffering delays in achieving Ministry of
Finance approval of recipient executed grants which is likely delay the project start dates’ and the log
fame should be adjusted to reflect that. A sixth project to upgrade the port access roads which was
expected to benefit from DFID support and was expected to be approved this year had to be withdrawn
as the Government decided to proceed using its own funds. As a result this year’s target of one major
project reaching financial close was not met. This does not affect the rationale for the programme but
does illustrate the uncertainties in engaging with large scale infrastructure.

Under the PPP Trust Fund the logframe set an outcome milestone of one project reaching financial close
this year and two following year. This has not been achieved and in hindsight this was overly ambitious,
given the long lead-in to PPP projects. Nevertheless there are a number of promising projects in the
pipeline and the ultimate target of 410 projects reaching financial close by the end of the project is still
achievable.

To mitigate the risk of under-achievement for all of these outcomes, ongoing regular strategic dialogue
with GoT on key programme issues, reviewing and developing agreed approaches, is essential and
mechanisms are being developed for all three components to build higher level programme buy-in.

Explain major changes to the logframe in the past year (1/2 page)
9Reduced berth occupancy is an indication of more efficient loading and unloading and increased port capacity.
10 TPSP is also on-track to completed the higher WB’s target of 8 PPPs being completed (i.e. signed) under the program.
Smart Guide (version February 2018)
ix
There were no changes to the log-frame this year.

Describe any planned changes to the logframe as a result of this review (1/2 page)
This Annual Review makes recommendations for a number of minor log-frame amendments to reflect
variations in the pace of delivery and better track programme results. These changes do not affect the
nature of the programme or the ultimate log-frame targets.

D: VALUE FOR MONEY (1-2 pages)

Assess VfM compared to the proposition in the Business Case, based on the past year (1 page)

Up to end of August 2018, £21.4m million has been disbursed under the programme against the planned
budget in the business case of £25.75 million. This is broadly on track but reflects some slippage across
all three components due to the changing delivery context. Value for Money is measured through four
metrics: Economy, Efficiency, Effectiveness, and Equity:
 Economy: The key cost drivers for the port project are: Cost of civil works and related design and
supervision particularly for the port projects: The capital cost of the port upgrade is $420m of which
DFID has committed to fund $12m (approx. £10m). Of this $9.3m has been disbursed with for the
the berth 0-7 project which is underway and the dredging project which is committed under
procurement. All procurement is by international competitive bidding under World Bank supervision
so is expected to offer good value for money. TPA’s capacity to manage the project has risen during
course of year as staff on the Project Implementation Team gain experience with the support of
embedded technical assistance. An international supervision consultant has been appointed to
monitor the construction quality and contract compliance.
 Cost of project preparation consulting studies to prepare major infrastructure projects and make them
investable: Project preparation studies account for approximately $11.5m of the committed and
obligated funds to date. Economy is measured primarily through effective selection and procurement
process 7 procurements took place this year of which 6 were with 25% of the tender price meeting
the logframe milestone.. Five of the seven procurements had multiple bidders from a spread of
geographic locations, also meeting the logframe milestone. The other two had three and two bidders
respectively. Under the PPP Trust fund there were no major procurement this year. These metrics
indicate the procurement process is functioning well and should ultimately deliver value for money in
the final product. The World Bank is managing delivery of the contracts to ensure quality and timely
outputs.

 PPP Capacity Building - The cost of PPP training has been substantial and following last year’s
annual report DFID asked the World Bank to do an in-depth analysis of the training costs incurred up
to February 2018. The report found no evidence of wrong-doing, but did make recommendations to
rationalize future costs. This has been taken on board with a bespoke video training series is now
being prepared and MoF are sharing the cost of most recent PPP training. .

 World Bank Overheads and Management Charges. There are 5% fees on funds disbursed for
recipient executed activities. Three programme funded advisers (PFA’s) are employed by the World
Bank to administer and deliver the two trust funds. One is internationally employed and two are
nationally employed staff. The PFA’s and other World Bank staff may charge to the Trust Funds their
time spent administering them and actively delivering programme outputs (eg writing ToR’s).
Approximately $600k per year of World Bank staff time is required to manage and administer the two
Trust Funds. Total Administration costs and Trust Fund Fees are expected to account for around
8%of the total fund disbursed which provides good value for money compared with other
organisations working in the sector.

Efficiency measures the degree to which DFID inputs are helping to deliver the outputs, Dar Port
Project underway and completed project preparation.

Since the change of government in 2015 power has been centralized into a few key decision makers
consequently, the decision making processes for the port and other national infrastructure is often slow,

Smart Guide (version February 2018)

x
leading to reduced programme efficiency. This does not mean DFIDs contribution is not providing
overall value for money, but rather value for money isn’t being maximised largely due to factors outside
DFIDs control. DFID’s implementing partner, the World Bank takes a long-term view believing
implementation should be client led, supporting capacity building via a ‘learning-by-doing approach’. To
validate this approach it is important to assess on a continuing basis whether the agencies and ministries
delivering the programmes are actually developing capacity, and whether projects risk falling
substantially behind schedule.

In the Transport Trust Fund 19 applications have been approved over two years, of which 6 are for
multiple studies bundled together which means that in total the number of individual studies is 40. About
half the studies are implemented by the World Bank in partnership with Tanzanian government agencies.
Of them 4 have been completed, 10 are under implementation and 7 are under procurement indicating a
high level of efficiency. The rest of the studies are implemented by Government of Tanzania however,
there has so far been a four month delay in getting final sign off by the Ministry of Finance for the initial
grant requested by the government. As a result 6 studies for roads on the Lake Victoria Transport
Programme are in delay. DFID and World Bank have been lobbying strongly and they are expected to
be approved in the near future. A further 11 studies have been approved by DFID are at various earlier
stages of being processed for approval by the Ministry of Finance. Lengthy delays reduce the efficiency
of the Trust Fund and will need to be closely monitored in the next year.

The composition of the PPP programme is substantially different to the transport programme in that the
majority of activities are aimed at behavior change with relatively modest physical outputs expected. To
that end it is essential to ensure that training and consultancy activities offer good value for money.
Initial indications are that strong momentum has been generated evidenced by interest from MP’s and
Ministers to attend recent training events in the Dodoma and rising quality of PPP concept notes being
submitted to PORALG.

Effectiveness measures the extent to which the outputs achieve the outcomes of improved
infrastructure capacity:

For the Dar Port upgrade project DFID’s financial contribution is effective in two ways, firstly it helps
reduce the loan burden but secondly and perhaps more importantly DFID’s presence is of reputational
value, allowing the World Bank to have a like-minded partner at the table advocating for sound decision
making which impacts on port effectiveness. DFID’s comparatively small funding level does not provide
significant leverage but does give us a voice regarding one of the most important pieces of infrastructure
in the country. Despite DFID and WB advocacy during the first year of the programme the government
decided not to concession berth 5-7 to a new private operator which, unless reviewed, is likely to limit the
effectiveness of upgraded infrastructure. Dar Port still has one leading private operator on berth 8-11 but
relations between it and TPA are strained and the government’s view on future concessioning is not
known. Going forward the ultimate effectiveness of the port intervention will be affected by four
important decisions the Government of Tanzania faces over the short-medium term
• Whether to proceed with upgrading berths 8-11, and how best to accommodate the existing
private operator whilst this is going ahead;
• Whether to renew a private concession on berths 8-11 once the existing one expires
• Whether to proceed with new berths 12-14 and whether to concession it to a new private
operator
• Whether the government approves the construction of a new port at Bagamoyo, 60km north of
Dar 11

These issues will have important implications for the ultimate value for money and DFID should continue
to use the access it has to advocate for well-considered and timely choices to be made.

Under project preparation the trust fund has a strong pipeline of preparatory studies adding value to
major infrastructure initiatives across Tanzania. The flexible nature of this facility allowed DFID to fund a
wide variety of projects and respond to emerging needs and projects quickly. This flexible, adaptive
approach increases value for money beyond just providing grant financing, as it allows DFID to work with
11 The prospect of a new Bagamoyo Port development has been emerging slowly for several years. Given the
expected growth in traffic it not expected to impact the existing Dar Port volume, but would negate the need to
future expansions of Dar Port
Smart Guide (version February 2018)
xi
partners to overcome obstacles to project preparation and take advantage of emerging infrastructure
opportunities quickly.

It is not always clear if DFID’s project preparation funding is critical to a project proceeding or merely
adding value. This is not to say these preparation activities are not useful, but to point out there is a
potentially variation in the additionality, and thus value for money, of DFIDs support. Selection of
activities that add value without being critical should be weighed carefully against possible competing
needs for scare development resources.

The Trust Fund was initially set up to partner with the EAC’s integrated corridor programme. Most of the
project are now identified and there is a question about whether there may be diminishing opportunities
for project preparation activities in the infrastructure sector making it increasingly difficult for DFID
Tanzania to identify and fund preparation activities which demonstrated clear value for money should be
monitored going forward to ensure the effectiveness of this facility remains in line with expectations.

Equity: Equity was introduced as a VfM measure after the programme was approved so this is first time
it has been split out as separate consideration in a C4G Annual Review. Both the Transport and PPP
programme aim to improve the lives of poor people which indirectly can reduce inequality.

Interventions under the Transport Trust Fund cover the full range of infrastructure from the national
gateway of Dar Port, through project preparation for major roads and waterway, down to last mile
infrastructure of rural roads and community jetties. In so doing it aims to support infrastructure linking
remote and usually very poor communities to national and international trade opportunities. It is likely
that in the short term the primary beneficiaries will be businesses who can grow to take advantage of the
improved infrastructure, however it is expected that overtime and with good government polices poor
people will also benefit from better access to markets and jobs. Where possible pro-poor requirements
are inserted directly into programme outputs, for instance within the transport programme a review of HR
needs for the maritime sector includes review the casual labour force and opportunities for training of low
skilled workers.

The PPP trust fund aims to introduce a new delivery method that can offer better value for money for
public investment and raise new sources of finance. This should reduce some of the burden on
stretched public finances while providing higher quality infrastructure and other public services. The
projects being selected are all pro-poor in that they are facilities such as bus stations and markets used
by people from all walks of life with a pro-poor oreintation. Introducing new user charges for improved
services carries the risk of shifting some of the poorest people to other facilities but the poor will be
provided with new opportunities to improve their livelihoods. The PPP’s will benefit a large section of
society who are still poor in global terms and will thus help to reduce inequality. Well run PPP
infrastructure will create new jobs and new services growing the economy beyond what it otherwise
would have achieved.

Explain whether and why the programme should continue from a VfM perspective, based on its
own merits and in the context of the wider portfolio (1 page)

The upgrading of Dar Port is exceptionally important to the economy of Dar, and Tanzania more widely.
Without this trade with the rest of the world will rapidly become constrained causing a bottleneck to
economic growth. Upgrading the port is a project with 50-100 year lifespan and will have long-term
benefits for the country.The Port project has however not managed to achieve the level of institutional
change that was expected when the business case was prepared which is likely to reduce value for
money below what might have been achieved. Nevertheless there is still opportunity to pursue the
reform agenda through long term engagement and advocacy. Bearing in mind the factors above DFID’s
role within the programme is assessed as providing good value for money and should continue.

The project preparation facility uses grants to finance key project preparation activities, designed to
accelerate, and potentially unlock, World Bank financing for infrastructure projects across Tanzania.
Feedback from key stakeholders on the preparation facility was overwhelmingly positive, with the facility
seen as a key enabler in allowing the World Bank to undertake projects more quickly and with better
quality. Without this funding, the World Bank would have to search for alternative funding sources,
Smart Guide (version February 2018)
xii
including relying on smaller pots of internal funding (approx. $250k), and government contributions which
would delay implementation - potentially severely. The program is therefore assessed to offer good value
for money and should continue.

The PPP support programme is an innovative intervention in a context that has traditionally been
skeptical of private sector involvement. The programme has taken bold steps this year in the level of
engagement with government and as a result made remarkable progress. Large expenditures on
training and travel have been investigated in the course of the year and found to be justified. The
programme has good prospects of achieving its goal of proving the PPP model in Tanzania and is
therefore assessed to offer good value for money and should continue.

E: RISK (½ to 1 page)

Overview of programme risk (noting the rating from p.1) and mitigation

All three of the programme components are rated as ‘Major’ risk reflecting the uncertain context for major
infrastructure delivery and novel approach of PPP support programme. DFID’s risk appetite is generally
high for delivery risk and context risk but low for reputational, fiduciary and safeguard risk. The
programme risk register is regularly reviewed and updated. High and emerging risks are summarised
below:
 Change of Personnel: A new Task Team Leader for the Transport Trust Fund is currently in the
process of taking up his post and key DFID programme staff are also due to change during the year
ahead. Replacing the knowledge and experience built up by the WB and DFID staff over the last five
years will take time and it is likely that there will be a slow-down in TF activities in the short-term.
There is also an opportunity here to create new relationships with partners, and to reinvigorate the
reform agenda.
 Dar Port - TPA’s capacity to implement the port project has improved this year with a stable team
now in place and support from embedded technical assistance. Renewal of the Technical
Assistance contract is in delay leaving the consultant working at risk of non-payment. Loss of TA
support for TPA would be negative for the project so efforts by TPA to contract them quickly must
continue to be supported.
 Dar Port – as focus moves towards the upcoming berth 8-11 project TPA must make key decisions
on how to relocate the existing concessionaire which will have a major bearing on future private
sector involvement at the port. DFID should follow this decision closely and advocate for a smooth
transition. More broadly the risk of not achieving the institutional strengthening goals of the
programme have risen and require greater attention if future productivity gains are to be realised.
 Project Preparation: Uncertainty over government project selection and the long delay in approval of
the Lake Victoria Project Grant Agreement were unforeseen and presents a potential challenge to
the Trust Fund operations. WB and DFID will continue to seek clarity and quick sign-off but if the
delay continues alternative delivery mechanisms may need to be explored.
 Safeguards: Over the last two years the need to strengthen social safeguards across a wide range of
aid and development sectors has become prominent. Both DFID and the World Bank have rolled out
a new safeguards frameworks which it is important to comply with12.
 The PPP programme is recognised to be high-risk overall as a result of its novel approach despite
the programme being substantially de-risked by focussing on lower risk projects with conservative
targets. The PPP programme monthly update includes a comprehensive discussion of ongoing risk
factors.
 Procurement: A new risk that is likely to emerge this year is the commencement of recipient executed
procurement of consultants and technical assistance. Much of this will be done through the existing
WB funded implementation team based in PORALG which can provide good quality assurance
however vigilance will be needed to ensure good procurement procedures are agreed and followed
 Training cost: High expenditure on travel cost for training was identified this year and a detailed
examination was undertaken in February of travel expenditure by government staff. No instances

12 Participating governments have agreed that World Bank safeguard policies will apply to all PPPs
prepared under TPSP
Smart Guide (version February 2018)
xiii
 were identified of unreasonable expenditure and the proper use of thorough WB controls was
verified.

F: DELIVERY, COMMERCIAL & FINANCIAL PERFORMANCE (1-2 pages)

Performance of partners and DFID, notably on commercial, and financial issues (1-2 pages)

Partners; The World Bank is DFID’s primary partner as manager of both the trust funds and the related
investment programmes with GoT. On the transport side the World Bank have considerable technical
expertise and established systems in Tanzania, managing a portfolio of approximately $1.2bn13 with a
pipeline of a further US$1bn. The in-country partnership is welcomed by the WB as bringing an aligned
party to contribute to progress and strengthen the dialogue, as well as welcoming project preparation
funding which would otherwise not be available to the same extent and timeframe. However given the
relative budgets, DFIDs influence with the Bank is probably limited despite strong and productive
working relationships.

The WB are fair in giving DFID equal recognition even with our small proportion of funding to the port,
and appreciates the added value of two partners in discussions with GoT. Recognition of DFIDs project
preparation funding is less with GoT but substantial with the WB. However unless DFID engages in at
least modest contributions to implementation activities, our prior contribution t likely to be forgotten by
both during implementation.

DFID has good relations with government officials, the World Bank, and the related consultancy teams,
proactively updating issues and progress by attending key meetings, consulting regularly, and reviewing
project preparation requests. DFID could at times offer more of a challenge to the WB, for example on
institutional aspects to develop an agreed approach for improving port efficiency and on economics of
lacking private operators and rehabilitation of the narrow gauge for only some sections of the network.

On the PPP Trust Fund two new DFID funded specialists started in July 2017 bringing considerable
expertise and substantially stepped up engagement with stakeholders across the sector. A new and
comprehensive donor reporting regime has been put in place reflecting a systematic and targeted
approach to achieving the project outcomes.

Given the political risks and the scope and scale of the WB programmes which DFID is supporting, DFID
should retain close working with the GoT, WB and other donors. The DFID programme funded adviser
was much appreciated by all partners and acknowledged as constructive and supportive.

Finances
Programme finances are summarised in table 1 below. The total contribution paid into the Transport
Trust Fund as at August 22, 2018 amounted to US$22m. Total disbursements to the same date
amounted to US$2,180,796, with additional outstanding commitments of US$13,122,42314. Constructive
obligations have arisen for a further US$6,300,000 pending the signing of the Lake Victoria Transport
Program Grant Agreement which has been submitted to Government. There is a modest uncommitted
balance of $325,258 which will be accounted for in the next disbursal15. Following the signing of the
subsequent two grant agreements for the Tanzania Roads to Inclusion and Socioeconomic Opportunities
Program (RISE) and the Lake Tanganyika Transport Program, commitments will increase by a further
US$8m. A further $2.7m of co-financing for berths 8-11 are also committed in the Grant Agreement for
the port, but are excluded from this analysis as procurement has not due to start this financial year.

13 US$1 billion of IDA loans; Dar Es Salaam Maritime Gateway Project (DSMGP, US$345m); Tanzania Intermodal
and Rail Development Programme (TIRP, US$300m) which is funding detailed design of the realignment of rail
loops in the port as well as clarification of the institutional set-up of the new Tanzania Railway Corporation; Dar Es
Salaam Urban Transport Programme (DUTP, $425m) which is providing extensive support to TANROADS to
improve its ability to deliver.
14 This excludes the port contract for births 8-11 which is not yet under procurement, but does include WB fees of 55 for managing
recipient executed funds.
15 The $325k balance arose from differences between estimated and final contract prices
Smart Guide (version February 2018)
xiv
In terms of Bank executed activities, pending DFID approval of the TF application for the preparatory
work for the RISE16 Program, there are two bank executed activities where procurement is expected to
commence before the end of DFID FY 2018, which together are estimated to amount to
US$2,660,00017. Once these contracts are issued and the above Grant Agreements are effective, the
funds available for commitment will be in deficit to an amount of US$10.3m.

As of September 2018 $5,920,000 (£4.5m) has been paid in to the PPP Trust Fund and either spent or
committed. A further $3,175 (£2.5m) has been paid into the trust fund as a pre-payment for the next six
months activities (in line with the Trust Fund Smart Guide rules). Disbursement for the PPP programme
have slipped due to the delay in setting up the Recipient Executed Trust Fund which should become
active next year.

Table 1: Financial Overview (US$)

Transport Trust Fund Finances as of August 2018

Funds Disbursed from UKaid 21,928,477.50
Total Funds Committed18 13,122,423.00

Constructive Obligations 6,300,000

Total Disbursements 2,180,79619
Uncommitted Cash Balance as at August $325,258
22, 2018 201820

PPP Trust Fund Finances as of September 2018

Funds Disbursed from UKaid 9,095,000
Total Funds Disbursed or Committed 5,920,000
Uncommitted Prepayment 3,175,000

Date of last narrative
financial report(s)
Date of last audited
annual statement (s)
Both Trust Funds have submitted draft Annual Reports with narrative
financial reports for the year to June 2018
The World Bank Trust Funds Single Audit reports to end of June each year
are here: https://financesapp.worldbank.org/en/summaryinfo/overview/ and
the June 2018 report is saved on Vault with ref number 41343068

G: MONITORING, EVIDENCE & LEARNING (1-2 pages)

Monitoring (1/2 page)
Both Trust Funds hold quarterly technical meetings to review progress and risks. Steering committee
meetings for both Trust Funds were in held in early 2018 and the programme was audited by the NAO in
March 2018 and passed with a clean bill of health. Going forward it would be preferable to align DFIDs
annual Steering Committee meeting with the DFID’s Annual Review. The Ministry of Transport were
invited to attend the Transport Trust Fund Steering Committee meeting but were unable to participate,
effort should be made to invite them to the next meeting. Each WB project has a bi-annual
Implementation Status Review including formal discussions with GoT which DFID usually join. The
16 RISE stands for Roads for Inclusion in Socio Economic Growth Programme
17 This consists of: RISE: $1.3m, Impact Evaluation, $1m, EMS pilot evaluation, $360k
18 Outstanding Balance of Commitments including the co-financing of the DSMGP, excluding staff salaries, as at August 22, 2018.
19 See footnote 15 above.
20 Includes investment income of US$283,938.57.
Smart Guide (version February 2018)
xv
World Bank Annual Reports for both Trust Funds were issued in August in order to inform this DFID
Annual Review.

Evidence (1/2 page)

The Transport Trust Fund will shortly be launching an Impact Evaluation of the whole Integrated Corridor
Programme which will seek evidence on whether large infrastructure has a demonstrable impact on
poverty. An evaluability study has been completed and the ToR’s have been reviewed as ‘good’ by
DFID’s evaluation QA service. The evaluation will combine creation of a ex-ante predictive economic
model and an ex-post evaluation model with household survey data collection. The evaluation will seek
to share data with and from TMEA’s Impact model which is already under development but less detailed
in it’s network model.

Learning (1/2 page)

In parallel with the Annual Review Field Trips the PPP Trust commissioned an internal review of the
programme. A brief summary of observations that programme is now taking forward are that:
 Speedy dispute settlement was critical for a functioning PPP environment and that recourse to
arbitration was still problematic in Tanzania
 Building trust between government and private sector was essential,
 Small PPP’s could be replicated to build good practice but that the inclusion of national PPP’s was
necessary to maintain national level attention and to do justice to the effort put into getting the legal
and institutional framework in place
 It is necessary to continue building specialist PPP skills in government and private sector
 There is a need to streamline the PPP process
 That unified public investment framework is needed to identify which projects are suitable for PPP
procurement
 Lessons learnt during the pre-feasibility study process for the first 22 LGA PPP’s should be recorded
as a case study for future to avoid unproductive effort on future PPP’s.
 The limits of PPP finance should also be highlighted to decision makers.

Progress on recommendations from previous reviews (1/2 page)

Key Recommendations from last year’s review and resulting actions were
1. Develop a clear strategic narrative for the ports and transport corridors component, which aligns with
the interests of the Government of Tanzania. This was largely achieved through the narrative in the
Annual report and in its Annex 4 on recommendations to improve the transport network however
there is scope to simplify it into a more presentable format.
2. Further develop the advocacy strategy primarily focused on Government but also considering the
logistics community and wider private sector a distinct advocacy strategy has not been developed
although moves have been taken to influence government views through periodic meetings with
Ministry of Transport officals and the emerging DSMGP Steering Committee.
3. Ensure a common understanding of the core objectives of the Sub-Sovereign PPP programme
amongst DFID, WB and Government stakeholders. Achieved – through ongoing sensitisation the
role of the TPSP is now well understood at all levels of government and the PPP node’s ability to
share the vision has improved considerably
4. Review whether level of external scrutiny of the Trust Funds is appropriate. Partially achieved – the
PPP Trust Fund conducted a semi-independent review in parallel to DFID’s annual review. The
Transport Trust Fund currently lacks external challenge but with the imminent change of
management there is an opportunity to re-assess its role and delivery.
5. Increase the visibility of UK aid as a promoter of infrastructure and economic development in
Tanzania Partially achieved, the profile of both Trust Funds has risen considerably through regular
interaction with government counterparts but there is scope for further UKaid visibility. The function
of the Transport Trust Fund and UKaid’s contribution is understood within the ministry of Transport,
TPA and Tanroads but visibility to higher level decision makers or the wider public has not yet been
achieved. The PPP support programme has achieved a high level of visibility to Tanzanian
Ministers, MP’s and senior officials and there is scope to further promote the UKaid’s role in the
programme.

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 ANNEX 1 -TANZANIA CORRIDORS FOR GROWTH TRUST FUND - WORK PLAN 23-8-18
EXPECTE
EXPECTED
D EXPECTED ACTIVITY
PROJECT TITLE FUTURE PROJECT OBJECTIVES
DISBURS FUNDING STATUS
INVESTMENT
AL
$12m out of total
Negotiations with
Improve the effectiveness and efficiency of the Port of Dar es $420m, Recipient
GoURT concluded
Dar es Salaam Salaam for the benefit of public and private stakeholders. DFID executed, grant
DSMGP on 25th May. WB
Maritime Gateway will co-finance with $345m WB loan and $63m TPA 2017 agreement signed
($420m) executive board
Project, (DSMGP) contribution. The project will deepen and strengthen berths 1- 21/8/17
approval on 30th
7, 8-11 and dredge the channel and harbour basin. Plus RE Bank Fee
June 2017
$0.6m
Support future port and corridor investment by assessing the
determinants of port demand, current port performance, Phase 1 Final price
Port Development and connectivity and market structure of the port sector along the $226,000
Task 1 approved
Competition in East Port/Road and East African coast. Assessment of the degree of horizontal 2017 Bank Executed,
14-2-17 Task 2
Africa: Prospects and Rail Phase 2 &3 $260k
and vertical integration of major ports and their Approved 4-8-17,
Challenges task 1-3 Final Price
respective hinterland and the port –city interface in East
and Southern Africa
objective of this assignment is fulfil the role of senior port
Approved,
Consultant Maritime DSMGP engineer in the WB/DFID team in the supervision of the Dar es
2018 $30k, Bank Executed consultant
Engineer ($420m) Salaam Maritime Gateway Program, and the preparation of the
appointed
Lake Victoria Transport Program
Evaluation of Human
Resource Needs, An assessment of the short/medium and long-term human Agreed 9-1-18,
Training Needs, and resources needs of the maritime transport sector in Tanzania, Oversight by
DSMGP,
Skills Development of and prepare a time-bound and costed business plan for each 2018 Est $250k MoWTC
LVTP, LTTP
the Maritime Transport institution (Bandari College, Dar Maritime Institute and Dar es procurement by
and Port Sector in Salaam University to meet those needs WB
Tanzania
Prepare a road safety audit, a road safety capacity Proposal by
DSMGP
CCTTFA
Central Corridor Road Phase 2 – Port management review and a safety and security audit on Final $283k
2017 Approved 17-1-
Safety Audit (CCTTFA) Access Roads critical Central Corridor infrastructure which will inform Bank Executed
17, Study
($300m) Port Access Roads investment Completed
Approved 13-3-17
Identify future corridor investment by analysing the Sole Sourced: under
Systemic Transport Port/Road/
vulnerabilities and risks due to failures of key locations in the 2017 $138,535 Bank implementation
Risk Assessment Rail/Lake
intermodal transport network of Tanzania, Executed by Oxford
University
Bathymetric survey, Lake Victoria Hydrographic, Geotechnical survey of Lake Victoria to support Oversight by EAC
$1,180k Bank
climate resilience, Transport capital investment and safety improvements. Feasibility study 2017 and LVBC,
Executed
feasibility study of Programme for the dredging of Lake Victoria. Application
Smart Guide (version February 2018)
xvii
dredging and disposal approved, 28-2-
($150m)
options for Lake Vic. 17,
Study of Critical Value
Lake Victoria Support Lake Port Investment by evaluating potential for the
Chain Infrastructure in
Transport sustainable expansion of aquaculture in both lakes, 2017 , Final: $175,000 Application
the Lake Victoria/
Programme understand how access to market could change local economy Bank Executed Agreed 16-5-17
Tanganyika Fish
($150m) and prioritize needed feeder road interventions. 
Trade.
Feasibility Study, Detailed Designs and Supporting Safeguard Est. $3m, Grant Proposal
Lake Victoria Documents for access roads on Lake Victoria. Agreement submitted, approved by
Lake Victoria Transport
Transport •Lot 1 – Nyanguge- Mara border road rehabilitation (85.5km): Recipient Executed DFID, grant
Project – Port Access 2017
Programme •Lot 2- Nyamuswe – Bulanda road upgrade (56.4 km): (part of £4.5m grant agreement
Roads
($150m) •Lot 3 - Key port access roads in Kagera, Mara and Mwanza agreement & $0.3m submitted to
region.. fee) MoFP
Lake Victoria Transport
Lake Victoria
Project – ESIA and Included in above
Transport ESIA and RAP preparation for Nyangage - Mara Border
RAP preparation for 2017 grant agreement Approved 16-7-17
Programme (26-9-17,ToR’s sent to Dir of Proc. who are preparing ToR)
Nyangage - Mara
($150m)
Border
Lake Victoria Future Support Lake Port Investment through new quantification of
Lake Victoria
water levels on Lake Victoria based on various climate Application agree
Water Level Study: Transport $194.234
scenarios. Builds on DFID funded HyCRISTAL programme 2017 21-4-17, under
HyCRISTAL Transport Programme Bank Executed
(Integrating Hydro-Climate Science into Policy Decisions for delivery
Pilot Project (HyTPP) ($150m)
Climate-Resilient Infrastructure and Livelihoods in East Africa)
Support the Lake Victoria Basin Commission to prepare a
Lake Victoria Application
Support to LVBC to strategic environmental and social impact assessment for the
Transport Final $420k Bank approved Aug
undertake Strategic Lake Victoria basin, encompassing all activities envisaged 2017
Programme Exectued 2017, under
ESIA under the LVTP, and development partners such as WB,
($150m) implementation
AfDB, JICA, TMEA, EIB, etc.
Strategic Lake Support the Lake Tanganyika Authority to prepare a strategic
GoURT have
Environmental and Tanganyika environmental and social impact assessment for the Lake
Study 1: US$ 424,350 requested start,
Social Assessment for Transport Tanganyika basin, encompassing all activities envisaged under 2018
Application
Lake Tanganyika Program the LTTP, and development partners such as WB, AfDB,
received 23-1-18
Transport Program (LTTP) JICA, TMEA, EIB, etc.
procured and
Study 2: Consulting GoURT have
administered Understanding future lake level fluctuations under several
services to assess the requested start,
by the World climate change scenarios. Securing expert judgement on the Study 2: US$ 295,253
Climate change 2018 ToR’s complete
Bank and risk to exceed critical thresholds for safe port operations (both
impacts on Lake LTA and CCTTFA
managed by high and low thresholds).
Tanganyika levels. approved.
LTA;
Consulting services to procured and Assessing the potential for the development and operation of 2018 Study 3: US$ 270,910 GoURT have
undertake an administered stage passenger and ferry services. Determining the requested start,
assessment of the by the World opportunities for private sector participation. Influencing ToR’s complete
potential for enhanced Bank and technical design/scale and future investment LTA and CCTTFA
ferry services and managed by approved.
private operation on CCTTFA

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Lake Tanganyika
Consulting services to
undertake a feasibility procured and
Determination of the optimal dredging level for the participating GoURT have
study for Lake administered
Lake Tanganyika ports and key shipping routes; and requested start,
Tanganyika ports by the World Study 4: US$ 749,905
Identification of the most appropriate dredging and disposal 2018 ToR’s complete
access and safety of Bank and
methodology; Contracting strategy for dredging works LTA and CCTTFA
navigation managed by
including bidding documents. approved.
improvement under CCTTFA.
varying lake levels
Consulting services to
procured and
undertake a feasibility GoURT have
administered
study for the Identification and evaluation of cost-effective technical and requested start,
by the World
establishment of a institutional options for the establishment of a Search and 2018 Study 5: US$ 272,814 ToR’s complete
Bank and
Search and Rescue Rescue (SAR) Service on Lake Tanganyika LTA and CCTTFA
managed by
service on Lake approved.
CCTTFA.
Tanganyika
Support future Tertiary Road Programme by development of a
geo-spatial database including inventory and condition survey Proposal
Development of Spatial
Tertiary Road for the entire road network of mainland Tanzania. Expected to Est $3.9 &175k grant approved by
Database, road
Development 2018 fee. Grant DFID, request for
inventory and condition inform the preparation of a subsequent investment project.
Programme Agreement under grant agreement
survey for Mainland Includes Technical assistant based in RFB to support
($350m) discussion received from
Tanzania implementation of above Spatial Database and Road Inventory GoURT
and Condition Survey.
Trust Fund
Southern Africa Trade SATTFP Est £1.8m Recipient Application
Feasibility Study, Detailed Designs and Supporting Safeguard
and Transport Phase 3 Executed (part of approved, Gov
Documents for Igawa to Songea Road, (Phase 3 of SATTFP) 2017
Facilitation Program- (US$200 £4.5m grant request received,
phase 3 million) agreement) Grant Agreement
in progress
SATTFP
Emergency Response Impact Evaluation of Health Impacts of Emergency Response
Phase 3
Pilot Impact and Post-Crash Medical care in Tanzania – Dar to Morogoro 2018 Est $360k Approved 9-8-18
(US$200
Assessment Road
million)
Impact evaluation of the Integrated Corridor Development Agreed in
Impact Evaluation of
Various Program and Corridors for Growth Multi-Donor Trust Fund Est. $1m principle, subject
the whole WB corridor 2018
Programmes DSMGP, Port Access Roads, TIRP, LV&LT Transport, Rural Bank Executed to evaluability
programme
Roads. study
Feasibility Study, Detailed Designs and Supporting Safeguard Approved by
Lake Victoria est. $4.12m, of which
Lake Tanganyika Documents for project roads aroun Lake Tanganyika. Letter asking DFID, awaiting
Transport $1.86m subject to
Transport Project – for funding request sent to MoFP. will need a Grant Agreement, 2018 request for grant
Programme additional financing
Road Studies $1.86m subject to additional financing being confirmed by agreement from
($150m)
World Bank and MoWTC MoFP
Technical Assistance Rural Roads- Technical assistance and consultancy services to support the 2018 Est $1.3m Application
to Support the RISE ($300m) strengthening of rural roads asset management in Tanzania. submitted.
Strengthening of Rural The activity will be aligned with the preparation an initial
Roads Management in implementation stages of the Roads to Inclusion and
Smart Guide (version February 2018)
xix
 Socioeconomic Opportunities (RISE) Program, to be
implemented by Tanzanian Rural and Urban Roads Agency
Tanzania.
(TARURA) and Tanzania National Roads Agency
(TANROADS).
Identification of Key
This includes studies on Dar Port Dwell Time, Mirror Statistics, DFID $148k Concept note
Underlying Constraints DSMGP 2018
Port customs HR, electronic cargo tracking system review. WB$40k received
to Dar Port Efficiency
Engineers to support Highway Engineer and Marine Engineer supporting Agreed under
Various
Trust Fund implementation of WB programmes, based in WB Tanzania 2017 tbc DFID business
Programmes
Implementation office for former, latter a STC case.

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