PPP Commissioner calls for bigger private sector role in public works

By Joseph Mwendapole , The Guardian
Published at 09:39 AM Sep 21 2024
David Kafulila (R), Director of the Public-Private Partnership Centre, pictured in Dar es Salaam yesterday receiving a souvenir from College of Business Education rector Prof Edda Lwoga
Photo: Joseph Mwendapole
David Kafulila (R), Director of the Public-Private Partnership Centre, pictured in Dar es Salaam yesterday receiving a souvenir from College of Business Education rector Prof Edda Lwoga

PUBLIC-PRIVATE Partnership (PPP) Commissioner David Kafulila has urged public institutions and colleges in the country to engage the private sector in project development rather than solely relying on government funding.

Speaking in Dar es Salaam yesterday at a stakeholders’ meeting organised by the College of Business Education (CBE), Kafulila highlighted the benefits of joint venture projects, stating that they enable the government to access new and modern technologies while enhancing efficiency.

“CBE has set a commendable example by developing a framework for constructing dormitories in partnership with the private sector without depending on government funds,” he said.

Kafulila urged all government authorities involved in various projects to explore opportunities for private sector collaboration, emphasising that such partnerships can accelerate project implementation and conserve government resources.

“Any project that can be executed by the private sector using advanced technology should be assigned to them as this will help build a modern economy where the private sector can create numerous job opportunities,” he added.

He commended CBE management for coordinating the dormitory construction project which, once completed, will significantly reduce student accommodation shortage on Dar es Salaam campus.

Kafulila explained that the government established a procedure for joint ventures to reap multiple benefits, including executing projects without utilising its own funds or incurring foreign loans.

“This joint venture system reduces financial pressure on the government, allowing projects to be implemented without relying on its funds. Additionally, it attracts private sector technology,” he said.

“For example, once the dormitories are built, the investor will pay taxes to the government. If the government had constructed them, it would not receive any tax revenue, demonstrating the significant benefits of joint ventures.”

CBE Rector Prof Edda Lwoga shared details about the planned dormitories which will accommodate 2,728 students, thereby addressing the significant accommodation gap at the college.

Currently, Dar es Salaam campus has over 12,000 students but has only two dormitory buildings with a total of 160 beds, meeting just 1.3 percent of accommodation needs.

Once the new project is completed, Lwoga anticipates that the percentage of students accommodated will rise from 1.34 percent to 30 percent.

“The current situation has created a pressing demand for student accommodation, with 98.6 percent of students seeking housing off-campus at high costs, which many cannot afford,” she said.

Furthermore, she noted that the college has assessed its needs and determined that PPPs provide a viable solution to infrastructure gaps.

By collaborating with private investors, CBE can leverage external capital to build the necessary hostels without significantly impacting its financial resources.