Public private partnership in Tanzania’s transportation infrastructure: the way PPP is understood, challenges and the way forward

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Economic and Social Research Foundation


Meeting the required budget for robust transportation infrastructure sufficient to trigger an agriculture-led economic growth is a national challenge that calls for Public Private Partnerships (PPP) to complement government funding. The national trans- portation network is inefficient and this hampers agricultural growth, limits employment of about 75% rural citizens, and undermines Tanzania’s geographical potential as a regional trade gateway and logistical hub. Government efforts to create an ena- bling environment - especially the PPP policy, legal framework and associated institutions - have not succeeded to attract full participation of the private sector in the development of transportation infrastructure. A 2014/2015 study by ESRF assessed understanding of the PPP concept between the partners and factors associated with the low participation of the private sector actors. Findings depicted some good practices by the government, such as continued review of the institutional framework to accommo- date stakeholders’ constructive opinions and interests as well as the persistent awareness creation on the PPP concept and framework to stakeholders. The findings also identified areas of improvement for both partners including uncommon under- standing of the PPP concept, unawareness of prospects by private actors, insufficient capital market, lack of sufficient capacity by local private actors, lack of transparency along the PPP procurement chain, lack of negotiations and project monitoring skills among the relevant public officials, and double-dealing among some public officials responsible for PPP processes. The findings call for a concerted amendment of the institutional framework to enhance a common understanding of the PPP concept, create sufficient awareness of PPP prospects among the private actors, raise capital market, capacitate local private actors, and ensure transparent PPP procurement procedures while reinforcing adherence to the public code of conduct among public officials as well as building their negotiation and project management skills.


ESRF Policy Brief No.2/2016


Public Private Partnerships, Transport, Tanzania, PPP