The new PPP Amendment Act 2014, which includes three main changes in the Tanzanian PPP legal framework, has recently been brought into force.
Under the Amendment Act 2014 solicited and unsolicited proposals for PPP projects will be governed by the PPP Act 2010 and PPP Act 20111, which means that both types of PPP projects must be procured through an open and competitive bidding process. In addition, the new framework removes the option of a procuring entity to give an advantage to an unsolicited proposal.
The new Amendment Act 2014 removes the current Coordination Unit and Finance Unit and establishes the PPP Center and the PPP Technical Committee:
- The PPP Center will, among others, provide technical assistance to the government, develop operating guidelines for contracting authorities and submit PPP projects to the PPP Technical Committee once approved by the Ministry of Finance.
- The PPP Technical Committee will, among others, approve PPP projects proposed by the PPP Center, submit the approved projects to the National Investment Steering Committee for scrutiny and approves allocation of funds from the PPP Facilitation Fund.
The Amendment Act 2014 also established the Facilitation Fund
, which will be used to:a) finance feasibility studies and other project preparation costs as may be required by a contracting authority; andb) provide resources to assist projects with limited financial viability and high economic benefit.
Tanzania Ports Authority has recently launched a tender process to develop a New Oil Terminal Jetty at Kigamboni in Dar es Salaam Port through a PPP project. We have recently reported about other PPP projects in Tanzania: