I.

National Public Private Partnership Policy of 2009

Is the policy which aims to attract private sector investment in infrastructure development and
service delivery, improve the quality and efficiency of public services, enhance public sector
capacity in project development and management, stimulate economic growth and create
employment opportunities, ensures sustainability and affordability of infrastructure and services.
The public private partnership enable the government to fulfill its responsibilities in efficient
delivery of socio-economic goods and services by ensuring efficiency,
effectiveness ,accountability ,quality and outreach of services. It is the strategic framework
developed to encourage cooperation between public and private sectors in delivering
infrastructure and public services. The public private partnership is an arrangement between
public and private sector entities whereas the private sector designs, constructs, operates,
maintains or manages the facility in accordance with government requirement.

Key issues that support PPP from the National Public Private Partnership policy of 2009:

Effective legal and Institutional framework

 An enabling environment to mobilize adequate financial and technical resources for

development and maintenance of public private partnerships
 Public Private Partnership Unit responsible for coordinating, regulating and facilitating
PPP projects
 Public Private Partnership Technical committee to evaluate and approve PPP projects
 To establish new legislation, amend existing laws and regulations for the development of
public private partnerships so as to ensure transparency and clear mechanisms
 establish a procurement process which is competitive and ensures fair, equitable,
transparent and cost effective procurement in accordance with the Public Procurement
Act No. 21 of 2004

Risk Allocation Mechanism

 to ensure equitable optimal risk allocation and management in PPP projects are delivered
on time and within budget
  Risk transfer; PPPs transfer project risks to the private sector so as to reduce the financial
burden of the public authority

Capacity building

 To ensure sustainable capacity building and technological transfer for Public Private
Partnerships
 Encourage the process of sharing skills, knowledge, management of PPP contracts and
its implementation
 Encourage interventions for technological transfer including promoting research and
development in PPPs
 Design and implement a strategy for development of human resources in PPPs

Investment opportunities and promotion

 Provide guidance to private sector participation in PPPs so as to widen investment

opportunities, innovation and technology transfer
 Promotion of Public private partnerships in investment opportunities
 PPPs attract foreign direct investment by providing a conducive environment for private
sector participation in key sectors of economy
 PPPs encourage domestic private investment that develops economic growth and
employment opportunities

Empowerment of citizens

 To safeguard the public interest

 To ensure empowerment of citizens in all socio-economic aspects is sufficiently taken
into consideration
 To ensure that PPP projects fulfill the needs of people
 To ensure that PPP provide necessary supporting environment to attract the participation
of local investors through inclusion in various socio-economic opportunities
 II. The Public Private Partnership Act (CAP.103) of 2010

Is the legal framework between public and private partnership which provide means of
implementing public infrastructure and services efficiently. The public private partnership act
provide guidelines and procedures governing the public private partnership procurement and
development of efficient delivery of improved service quality which result to incentives for
performance as well as increases the long term commitment in public private partnership
contracts.

Key issues that support PPP from the Public Private Partnership Act (CAP. 103) of 2010:

Legal framework

 Provides a legal framework for establishment ,regulation and implementation of PPP

projects
 Ensures that PPPs adhere to contractual arrangements and compliance with required
regulatory obligations

Risk allocation

 Provide mechanisms for the allocation of risks between public and private sectors
 Ensuring the risks are appropriately analyzed, assessed and managed so as to PPP project
implementation
 Ensure that the financial risks are shared between public and private sectors so as to
reduce financial constraints among parties

Project identification and approval

 Provide procedures for identifying, evaluating and approving PPP projects through
relevant stakeholders, government departments and ministries
 Ensure PPP projects provide cost effective methods of service delivery and addresses the
sustainability of social needs
 PPP project complies with government priorities and public interest along with the value
for money requirement
Contractual arrangement

 Provide legal framework for the long term commitment of PPP projects which include
contract negotiation and drafting of PPP contracts
 Ensures that the contracts are mutually enforced and complied with relevant written laws
 PPP contracts are adaptive to changing environment of the project lifecycle

Transparent procurement process

 Provide transparent procurement process which emphasizes on fairness,competition and

integrity in selecting private partners through the provision for regulatory oversight and
monitoring of PPP projects in implementation process

Transfer of technology and knowledge

 PPPs transfer knowledge and advanced technology from the private sector to public
authority which enhances the capacity building of government activities
 Provide opportunities for skill development to the public workforce

III. The Public Corporation Act of 2010

Is the institutional framework which provides efficient and effective management of public
corporations for the implementation of public private partnership agreements between public and
private sector entities so as to operate in the public interest, deliver quality services and
contribute national development. The act set rules, guidelines and procedures governing public
private partnership procurement, development and implementation of public private partnerships

The following are key issues that support PPP from the Public Corporation Act of 2010:

 Establishment of Coordination Unit and Finance Unit; coordination unit is allocated

within Tanzania Investment Centre which provide the promotion and coordination of
 public private partnership projects, develop and promote public private partnership
awareness; in relation to finance unit provide investment opportunities and
promotion,budgeting,accounting and fiscal responsibility
 Participation of Public and Private Party; involve the following attributes of both
parties such as monitoring and evaluation of projects , carrying out feasibility studies,
identification of projects ,risk sharing ,an appropriate enabling environment for legal and
institutional framework ,favorable policies and implementation strategies ;mobilizing
resources as well as providing technical expertise and managerial skills.
 Empowerment of citizens; public private partnership agreements provide an opportunity
for empowerment of citizens of Tanzania in accordance with the National Economic
Empowerment Act, ensuring that the citizens perform the duties and exercise power in
compliance with the provision of Act or any relevant laws
 Responsibilities of Public and Private partners; it specifies the responsibilities of
contracting authority and the private party so as to prepare the communication strategy
for awareness creation and consensus building for acceptance by all stakeholders of
public private partnerships along with their outcomes, benefits and associated costs and
risks.

IV. The Public Private Partnership Regulation of 2015

Is regulatory framework which governs the implementation of public private partnership

projects in a particular jurisdication. Public Pivate partnership regulations aim to create an
enabling environment for attracting private investment, delivering public infrastructure and
services effectively through partnerships between public and private sectors, promoting
efficiency and innovation. They provide clarity and consistency in the regulatory framework in
the regulatory framework governing PPP projects, reducing risks and developing the credibility
of PPP initiatives

Key issues that support PPP from the Public private partnership regulation of 2015

a) Identification and Prioritization of project based on the following

 Procedures for identifying and prioritizing public private partnership projects
  Complies with the value for money requirement and economic viability
 Ensure that Public private partnerships align with national development goals and
priorities of the public interest
 Transparency and accountability of the PPP project
 Choosing the right partnership model or arrangement of the project
b) Legal and Institutional frameworks
 Regulatory authority consultation from relevant permits and licenses responsible
for the project
 Provide legal framework for PPP projects, concepts and procedures related to
public private partnership in service delivery of public infrastructure
 Contract authority responsibilities in PPP projects, appraisal, procurement and
oversight
c) Risk allocation and management
 Provide mechanisms for allocating and managing technical, financial ,operating
risks between public and private partners
 Identifying, assessing, and mitigating risks associated with PPP projects
 Allocation of risk is best equipped to the private sector
d) Project Financing and funding
 Public private partnership encourage private investment to finance the project
 Encourage private sector participation in investment opportunities regarding
the infrastructure projects
 Prioritize the profitability on social and environmental impact assessment
 Allocate budget funds to perform functions from public private partnership
projects
 To assist in mobilization of human and financial resources necessary for
project implementation

V. The Second Five Year Development Plan (2021/22 to 2025/26)

Is the implementation of Tanzania Development Vision 2025 as the National overall

development framework and achieved the status of a middle-income economy country that focus
on building a competitive and industrial economy for human development in order to
accomplish the goals of the Vision such as improving the living conditions of Tanzanians,
uphold peace, unity and security, good governance and rule of law, well educated and learning
society, and lastly building a strong and competitive economy. The main focus is to establish a
sustainable framework that will enable to achieve the goals of National Development Vision
which include the increase the country’s capacity for production, building a competitive
economy that stimulate the country’s participation in Trade and investment as well as stimulate
human development.

Key issues that support PPP from the Second Five Year Development Plan (2021/2022 to
2025/26)

Legal and Institutional framework; the government has facilitated and supported the private
sector participation in Public private partnership projects by strengthening the applicable legal
and institutional framework whereas the government amended the Public private partnership Act,
CAP 103 to ensure better provision for supervision and coordination of public private
partnership, strengthen the institutional structure for coordinating Public private partnership
programmes under the Ministry of Finance and planning which aims to simplify and fast track
approval of Public Private partnership projects.

Business environment; Ministry of finance and planning has built an enabling environment for
the Public private partnership so as to assist government institutions to prepare PPP projects.
They provide initiatives for establishing long term finance in Tanzania Agricultural
Development Bank which ensures smooth, transparent and corruption-free environment for
investment and trade. The public private partnership to be a useful financing instrument include
enhanced political will at all levels, commitment and compliance on the established PPP Life
Cycle that includes avoiding reversal to traditional procurement for approved projects, also the
public private partnership fund so as to facilitate project preparation, viability and capacity
building.
The following are areas where these instruments conflict each other:

a) Poor legal framework in the implementation of PPP projects whereby private sector
fails to comply with common laws or jurisdication of contracting authority which
govern the public private partnership contracts,complexity in procurement procedures
can result to bureaucratic and time consuming which discourage the private sector
participation in project implementation, lack of provisions for ensuring transparency
in project selection and procurement processes with poor specific PPP legislations.
As stipulated in the Public Private Partnership Act (CAP. 103) of 2010 on Article 3
and 15
b) Weak institutional framework ;the public authority or government fail to manage
the PPP projects due to lack of expertise and capability in project preparation and
management, c unequal participation in decision making process can result to
extreme bureaucracy, political instability and uncertainty can discourage the private
sector , lack of transparency and accountability in PPP procurement process, poor
enforcement mechanisms and procedures for PPP, inadequate policies of PPP
programs. The absence of comprehensive legal and regulatory frameworks governing
PPPs, as seen in the National Public Private Partnership Policy of 2009 on Article 3,5
7,and 19.
c) Different organizational cultures and interests between partners occurs when PPPs
engage with organizations which have diverse cultures ,interests ,values that leads to
complexity, problems ,inefficiency and time consuming. Public organizations are
different from private sector in terms of organizational structures, missions,cultures
and communication styles. Hence the private sector organizations have flexible
strtuctures while the public sector have bureaucratic structures which is difficult for
both partners to effectively work together and achieve their goals. As stipulated in the
Second Five Year Development Plan on Chapter 2.6 regarding the business
environment between public and private partners.
d) Unreliable mechanisms for risk sharing and management
The public private partnership projects having insufficient procedures for dealing
with uncertainty in regulatory frameworks of project management and PPP program
implementation, absence of unreliable mechanisms for managing risks due to
 incorrect evaluation and inequitable distribution between partners, lack of necessary
skills and knowledge to identify, assess and manages risk. As stipulated in the Public
Private Partnership Regulation of 2015 concerning the risk allocation and
management between public and private partners with no clear guidelines and creates
uncertainty for investors and stakeholders in the PPP project implementation.
e) Inadequate monitoring and evaluation of PPP processes; In monitoring and
evaluating PPP projects is a challenge due to insufficient of reliable information which
makes it difficult to assess the project performance,leads to competing interests and
priorities among stakeholders,constraints in financial and human resources in monitoring
and evaluating initiatives which leads to corruption.As viewed in the Public Private
Partnership Act (CAP. 103) Article 23 involves the Ministries,Government departments
and local government authority does monitoring and evaluation of PPP processes but
provide less financial support which hinders the accessibility of information from the
private partners in PPP projects.

Moreover the Public Private Partnership provide long term cooperation and a contractual
relationship between public and private sector of up to 25 years. The private sectors in Public
private partnership projects participate in certain process of the project such as designing,
building, operation and maintenance. The long term contract makes it possible for both partners
to benefit from the cooperation, the public private partnership focuses on the sharing of risks,
costs, benefits, resources and responsibilities. During cooperation both the public and private

The Government of United Republic of Tanzania. (2010). The Public Private Partnership Act (CAP. 103).
Dar Es Salaam: Government Printers.

The Prime Minister's Office. (2009). NATIONAL PUBLIC PRIVATE PARTNERSHIP (PPP) POLICY. Dar Es
Salaam: The Government Printers.
Works Cited
The Government of United Republic of Tanzania. (2010). The Public Private Partnership Act (CAP. 103).
Dar Es Salaam: Government Printers.

The Prime Minister's Office. (2009). NATIONAL PUBLIC PRIVATE PARTNERSHIP (PPP) POLICY. Dar Es
Salaam: The Government Printers.