18 June 2014

Tanzania: Private Sector to Help Out in Projects

Dodoma — MEMBERS of Parliament have hailed the government for plans to incorporate the private sector under the Public Private Partnership (PPP), saying that the move was a remedy in fast tracking development projects.

Debating the Government Revenue and Expenditures' Estimates for the Fiscal Year 2014/15, Mr Ridhiwan Kikwete (Chalinze- CCM) said that the move was commendable and would help in finalizing infrastructural projects.

He asked the government to ensure that the bill for the establishment of the partnership is brought in the House as soon as possible.

"With the PPP, we will be able to finish up infrastructural projects such as roads that connect Dar es Salaam to Chalinze and the Bagamoyo Harbour project will be implemented as planned," he said.

Mr Peter Serukamba (Kigoma Urban- CCM) noted that all the developed countries in the world have relied heavily on PPP in implementing development projects especially those related to infrastructure.

Mr Serukamba noted that it was high time that after the move receives the blessings of the National Assembly, the government should lay more emphasis on education, health, water and other social services and collaborate with the private sector in other areas.

"As we go towards intensifying PPP, we should also put in place a culture of respecting the private sector. The government should also ensure that the private sector is supported and this should include bailing out some ailing private companies," he said.

He added that the role of the private sector in employment creation could not be underestimated and he thus emphasized the need to glorify local investors.

Just recently the government admitted that the current law on Public-Private Partnership is bureaucratic to the extent that many private actors have been scared away.

The Minister of State in the Prime Minister's Office (Investment and Empowerment), Dr Mary Nagu, was quoted as telling the National Assembly that the government would bring in the House, a schedule of amendments to make the law more attractive to private firms.

"We want to incorporate private actors heavily in the government projects, but many have declined due to the prevailing bureaucracy in the PPP Law," she said.

She noted that the Public Private Partnership Act (PPP Act) passed in 2010 would be brought for review in the House soon. Ms Nagu added that the government will train experts who will deal with issues related to PPP, as well as establishing a special fund to coordinate all the issues related to PPP.

"I believe that private partners are crucial in development and we need to increase their involvement in developing our nation," she said.

Mr Hamad Rashid Mohamed (Wawi-CUF) asserted that the government should leave issues related to infrastructural development to private actors and focus on the welfare of public servants.

Mr Mohamed said that some African countries have the vision of engaging private partners by 80 per cent in the near future after realizing that their economies are not powerful enough to support all development projects.

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