MPs advocate for enhanced PPP awareness to local governments

By Guardian Reporter , The Guardian
Published at 06:00 AM Nov 12 2024
PPPC Executive Director David Kafulila
Photo: File
PPPC Executive Director David Kafulila

Members of the parliamentary committee on local governments have called on the Public Private Partnership Centre (PPPC) to broaden its awareness campaigns on Public Private Partnerships (PPPs) to include local government authorities.

The appeal was made during a PPP awareness seminar held yesterday in Dar es Salaam.

Currently, there are 13 solicited PPP projects in various local government authorities, including Arusha City Council, and Kinondoni, Ilala, and Temeke Municipal Councils, at different stages of implementation.

“There is a pressing need to enhance awareness and understanding of the PPP concept, particularly among district executive directors,” said Mwita Waitara, MP for Tarime Constituency. 

He emphasized the importance of allocating strategic areas suitable for public-private projects within local authorities.

Saasisha Mafuwe, MP for Hai and committee member, highlighted the need for an improved business environment to attract more private investment, suggesting that the government should streamline procedures to reduce bureaucratic delays.

 “The PPPC should identify areas where red tape hampers project approvals,” he said. Mafue also stressed the importance of prioritizing local investors and recognizing potential project sites within local government jurisdictions.

Salome Makamba, an MP-Special Seat, raised concerns about potential overlaps between the roles of the PPPC and the Tanzania Investment Center (TIC), urging that the focus should remain on productivity. 

She called on the PPPC to identify regulatory challenges for parliamentary intervention. 

Makamba expressed concerns about prolonged delays in project approvals, citing the Liquefied Natural Gas (LNG) project, which has awaited finalization for over a decade. She also proposed establishing a dedicated PPPC officer within the parliamentary building to facilitate communication between investors and MPs.

PPPC Executive Director David Kafulila acknowledged that some government authorities face difficulties in contract preparation, which affects the readiness to implement PPP projects. 

Other challenges include limited understanding of the PPP model, a history of poorly executed projects, and issues related to tax incentives for investors. “The business environment reforms introduced by the government have helped stimulate investments,” Kafulila noted.

He emphasized that PPPs are vital for attracting private capital, technology, and managerial expertise while allowing the government to fulfill its responsibilities without straining the national budget. 

Kafulila pointed out that the implementation of the third phase of the National Development Plan requires mobilizing 40trn/- 

 Currently, there are 60 PPP projects at various stages of development.

PPPs in Tanzania have proven essential for economic growth and infrastructure development, aligning with the goals outlined in the Tanzania Development Vision 2025. 

With a focus on economic diversification, opportunities for both local and foreign investors in various sectors are expanding.

PPPs leverage the technical expertise, innovative solutions, and operational efficiencies of the private sector, which can lead to better-designed and executed projects.

PPPs help mobilize private sector funds for public projects, reducing the financial burden on the government and freeing up public resources for other essential services.

Financial risks are shared between public and private partners, allowing the government to undertake large-scale projects without bearing all the financial risks.