In Tanzania, Public-Private Partnership (PPP) projects span various sectors, leveraging private sector expertise and investment to bring tangible improvements. The sectors benefiting from PPP projects include infrastructure for roads, airports, and other significant infrastructure. Projects typically utilise the Design-Build-Finance-Operate-Maintain (DBFOM) and Build-Operate-Transfer (BOT) models, among other arrangements. PPPs are also useful for the provision of public utilities and water and energy projects, often structured as concessions or management contracts. Social Sector PPPs can include healthcare and education.

The types of PPP projects generally include:

• Infrastructure Development: Focuses on new constructions or significant refurbishments facilitated through various models, including BOT.
• Service Provision Management Contracts: These may include models in which the private sector manages a public service to improve efficiency and effectiveness.
• Concessions and Leases are often used in utility sectors where private entities can effectively manage long-term operations and maintenance. A concession is a PPP arrangement in which a private entity is granted rights to operate, maintain, and invest in a public utility or service for a specified period. During this period, the private entity assumes significant investment risk and management responsibility to recover investments through user charges.
• Institutional Joint Ventures: Partnerships where the government may hold equity are known as institutional or joint venture PPPs. According to Section 18A of the Public Private Partnership (Amendment) Act, 2023, the government's equity share in the project company or Special Purpose Vehicle (SPV) is limited to a minority stake not exceeding 25%, ensuring significant private sector leadership while maintaining public interest.

The PPP Act and its amendments establish a framework for these partnerships, ensuring structured risk-sharing and alignment with national development goals. Please visit our resource page for detailed insights into the legislative framework supporting these projects and the various types of PPP arrangements. Additionally, if you want to learn more about PPPs, including their processes and applications, consider enrolling in the free training course available through our resource page