The United Republic of Tanzania

Public Private Partnership Centre

( PPPC )

ARE THERE SPECIFIC REQUIREMENTS OR PROCEDURES FOR FOREIGN INVESTORS LOOKING TO INVEST THROUGH PPPC TANZANIA?

Yes, there are specific requirements and procedures for foreign investors looking to invest through PPPC Tanzania. These typically include law and regulatory approvals (we mean making sure that a project follows all the rules and gets the necessary permission from the authorities), compliance with Government laws, and possibly partnerships with local entities depending on the project and sector as well as friendly environment for investors

Procurement for PPP Projects follows/ are done through Public private partnership act and public private partnership Regulations and shall be procured through an open and competitive bidding process as per section 15 (1) of the Public Procurement Partnership Act RE: 2023. The following are the procedures:

  1.  Identification of Projects Under Ppp

Solicited Proposal refers to Regulation 3 (1) (2) (4) of the Public Private Partnership Regulation, Cap 103 RE 2023 that is the one initiated by the public sector, also this has been defined under Public Private Partnership Regulation that are proposal related to the implementation of project submitted in response to a request issued by the contracting authority.

Unsolicited Proposal is the on initiated by private sector, refers to Regulation 7 (1), (2),(3)(4)(5)  of the PPP Regulation, Cap 103, 2023 these are proposal that are submitted to a relevant contracting authority on the initiative of the private party for the purpose of entering into a public private partnership agreement with a government.

Direct Negotiation under section 15(2) (3)(4) of the Public Private partnership Act No. 4 of 2023 and regulation 35A of the PPP Regulations RE 2023 provide exemptions for the projects of unsolicited project from competitive bidding process which help parties to enter into direct negotiation for project.

Small Scale Project, this refers to the Public Private Partnership project which may be undertaken by public sector and whose total project value does exceed USD 20 Million as discussed under regulation 102 (1) 2) (3) of PPP Regulation Cap 103 RE: 2023 which refers the participation of local government in PPP Projects.

  1. Preparation of pre-feasibility

Pre-feasibility Study is a preliminary stage undertaken to assess the viability of a proposed project before a feasibility study is conducted. This process is important for determining whether a project is worth pursuing and helps in making informed decisions about whether to proceed to the next stages. By refereeing to the First schedule of the Public private Partnership Rules, RE 2023 provides for instructions to be considered during conducting pre- feasibility study:

         STRUCTURE AND CONTENTS OF PRE-FEASIBILITY STUDY

  1. Executive summary
  2. Background
  3. Project description
  4. Preliminary Technical analysis
  5. Preliminary economic analysis
  6. Preliminary Commercial analysis
  7. Preliminary financial analysis
  8. Environmental and social due diligence
  9. Preliminary Legal due diligence
  10. Institutional analysis
  11. Annexes
    1. Preparation of Feasibility Study 

a feasibility study is a detailed analysis conducted to confirm the viability of a proposed project. This study evaluates several key aspects to determine whether the project is practical, financially viable, and beneficial. The study should confirm the likely viability thus, social, legal viability, economic viability.  The amended Regulation 14 and 15 of the PPP regulations Cap 103 RE 2023 Introduces additional requirements for the contents of the feasibility study. These include detailed technical output specifications of the project and targeted performance standards, as well as demonstration that the project is revenue self-sufficient.

STRUCTURE AND CONTENTS OF A FEASIBILITY STUDY

  • Executive summary
  • Background
  • Project description
  • Preliminary Technical analysis
  • Preliminary economic analysis
  • Preliminary Commercial analysis
  • Preliminary financial analysis
  • Environmental and social due diligence
  • Preliminary Legal due diligence
  • Institutional assessment
  • Statement of compliance with PPP Act and regulation
    1. Approval from the Responsible Minister of the contracting authority
    2. Then forward the contract to the PPP Centre for notification
    3. Then Steering Committee for approval
    4. Then After approval, PPPC resubmit the contract to the contracting authority for implementation

APPROVED AUTHORITIES

 In order the PPP projects to be implement they must be approved by necessary authorities as follows:

  1. Contracting Authority for approving pre/ feasibility study
  2. PPP Node if the contracting authority is Local Government Authority

ii. Specific / responsible Minister

iii. National Planning for approving National Development Planning

iv. Minister of Finance for budget approval

v. Public private partnership Centre

vi. PPP Steering Committee

 

OTHER BODIES:

I. Regulatory Authorities for compliances

ii. The Attorney General for contract vetting