30 June 2014

Tanzania: PPP Implementation Strategies Spelt Out

THE government has drawn up strategies for implementation of projects under the public-private partnership (PPP) initiative.

Minister of State in Prime Minister's Office (Investment and Empowerment), Dr Mary Nagu, said recently that Big Result Now would be a yardstick in implementation of the PPP projects.

"The government has already made recommendations for review of the PPP Act of 2010 to enable all PPP projects come under a strong authority to approve and oversee implementation, " Dr Nagu said.

She said the government has also recommended the establishment of PPP Facilitation Fund whose main goal would be to assist government authorities in preparing feasibility studies meeting investment criteria under PPP arrangements.

"It is an undeniable fact that countries globally such as India have put in place this system or arrangement based on its national development priorities," she said, adding that the arrangement is called "viability gap funding".

Dr Nagu said that the viability gap funding would be used to enhance capacity building of both government and private authorities despite the big challenges facing implementation of PPP projects.

According to the Minister, the fourth phase government was committed to implement most of the big projects under PPP arrangements to realize the desired development goals.

The projects lined up to be implemented under PPP/BRN include Kinyerezi 3 Power Project, Kinyerezi 4 project, Masigira Power Project, Rumakali Power Project, Rusumo Power Project, Ruhuji Power Project and Stiegler's Gorge.

Others are rehabilitation of berth number one to seven, construction of new berths number 13 and 14 at Dar es Salaam Port.

Also in the list are improving the Mtwara Port, construction of Kisarawe Container Freight Station in Coast Region, construction of new Bagamoyo Port and developing Bagamoyo Export Processing Zone (EPZ).

Dr Nagu named others as construction of Mchuchuma-Liganga Railway, improving Tanga-Arusha Railways, construction of new Arusha-Musoma Railways, Construction of Chalinze-Dar es Salaam road, construction of Terminal III at Julius Nyerere International Airport.

The Arusha, Mwanza, Mtwara, Songwe and Kilimanjaro Airports will be expanded to meet the required international standards. Construction of Railways from Dar es Salaam- Isaka-Kenza-Msongati, Tabora-Kigoma, Uvinza-Msongati, Mpanda-Karema, Isaka-Mwanza.

The project of linking the new Mbegani Port to railways and also linking TAZARA with Kasanga port, Kigoma and Mwanza. BRN initiative aims at adopting new methods of working under a specified timeframe for delivery.

There are six sectors targeted under the BRN initiative and these are education, energy, agriculture, transport, water, and resource mobilisation.

The PPP Act was a result of a PPP policy that was adopted in 2009. One year later Act No 18 was enacted and established PPP Units which are Coordination Unit at Tanzania Investment Centre (TIC) and Finance Unit at the Ministry of Finance.

PPP also seeks to address some of the challenges that have been put forward in the Five Year Development Programme and the Vision 2025.

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