Policy, legal and regulatory framework
Public Private Partnership (PPP) is an important instrument for the Government of Tanzania to attract private investment and to improve public services. The Public Private Partnership (PPP) Policy was issued in 2009, the Public Private Partnership Act (PPP Act) passed in 2010 and the PPP Regulations passed in 2011. The new Public Procurement Act (2011) makes specific provision for PPP procurement, for both solicited and unsolicited proposals.
Further to the PPP Act, a Finance Unit (FU) has been created within the Ministry of Finance (MoF) to assess, manage and monitor fiscal risk, to assess affordability of projects, and to appraise value for money from PPPs with a view to recommend PPP projects for approval by Minister of Finance. A Coordination Unit (CU) has been created within the Tanzania Investment Centre (TIC), which reports to the Ministry of Industry, Trade and Investment. The CU is focusing on promotion and coordination of all matters relating to public private partnerships. Line ministries and other contracting authorities are required under the PPP Act to identify, appraise, develop and monitor these projects.
Currently, the government is working to create a healthy pipeline of potential projects. It is developing PPP Operational Guidelines, an Implementation Strategy and Action Plan. For easiness and timely implementation of PPP projects, the government is finalizing the setup of a PPP Facilitation Fund.
Areas of investment
PPP framework in Tanzania covers all areas of investment although the emphasis is on infrastructure development. Some of the key important sectors are; Road, Rail, Port, Airport, Power and Agriculture.