HOW DOES THE GOVERNMENT SUPPORT THE INVESTMENTS IN PPPS?
HOW DOES THE GOVERNMENT SUPPORT THE INVESTMENTS IN PPPS?
The Tanzanian government supports PPP investments through a variety of guarantees designed to attract private investment and ensure project success:
- PPP Facilitation Fund: Supports the costs associated with project preparation, consultancy, and advisory services.
- Viability Gap Funding: Available for economically justified projects but not financially viable.
- Project equity: is crucial for financing and Encouraging private partners, ensuring that they are invested in the successful delivery and operation of public infrastructure projects.
- Financial Guarantees: These may include minimum revenue guarantees or other forms of financial backing that mitigate investment risks.
- Political Guarantees: Safeguards against political risks that could affect project outcomes.
- Legal Guarantees: Ensuring a stable legal environment for the project's duration.
Performance Guarantees: Commitments related to project specifications and operational benchmarks. These guarantees are outlined in various amendments and regulations under the PPP Act, providing a structured framework to support and secure private investments in public projects.