About LGA PPPs

The Government recognizes the role of PPP projects in relieving constraints on the financing, management and maintenance of public goods and services. PPPs can enable the Government to fulfill its responsibilities for the efficient delivery of socio-economic goods and services by ensuring efficiency, effectiveness, accountability, quality and outreach of services.

A PPP project is a cooperative arrangement between the public and private sector whereby the private partner renovates, constructs, operates, maintains, and/or manages, in whole or in part, a government-owned facility in accordance with specified output specifications. The private partner takes on risks on a long term basis and in return receives modest financial returns based on agreed terms. PPP projects build on the synergy of expertise of each partner to meet clearly defined public needs through the most appropriate allocation of resources, risks and reward.

Local Government Authorities (LGAs) have been preparing a range of PPP projects under the PPP Act 2010 (as amended) and the guidance of the PPP Node of the President’s Office-Regional Administration and Local Government.

The LGA PPP pipeline covers markets, bus and daladala terminals, solid-waste management, slaughterhouses, student hostels and a city park. A scale-up of LGA PPPs based on a red-yellow-green assessment of city infrastructure is ready to proceed, starting with market PPPs.

Preparation of a PPP project involves seeking views from market participants, the community and other stakeholders on the project. Listening to and acting on stakeholder views is important to ensuring that value for money is provided to the government and the community served by the project.

Feedback is now sought from the private businesses and financial institutions on the twelve proposed LGA PPP projects. The aim is to better understand the likely market appetite and readiness for these PPPs and ways of further improving the projects.

The LGA PPPs are assisted by the World Bank and United Kingdom through the Tanzania PPP Support Program