Hassan Magulumali
Public-Private Partnership (PPP) projects remain government projects and should not be confused with privatisation, an official from Tanzania’s Public-Private Partnership Centre (PPP Centre) has clarified.
Innocent Mauki, who represented PPP Centre Executive Director David Kafulila, said private investors are entrusted with operating projects and collecting revenue under agreed partnership arrangements, while the projects remain part of the government’s development agenda.
He made the remarks while officially opening a Market Sounding meeting on a proposed PPP project in Mbeya, bringing together stakeholders to discuss the project and provide technical input before the preparation process is finalised.
Explaining the PPP model, Mauki said the arrangement allows the government to mobilise private-sector financing and expertise to develop public infrastructure and services without necessarily undertaking all the investment and operational responsibilities itself.
“PPP projects are government projects. It is similar to the government borrowing money, but instead of collecting revenue and repaying the loan itself, it entrusts another party to operate the project,” he explained.
He noted that the arrangement enables the private sector to take responsibility for specific operational and financial obligations, depending on the terms of the partnership agreement.
Mauki further explained that Market Sounding is an important stage in PPP project preparation, providing an opportunity for potential investors, technical experts and other stakeholders to share their views before the government finalises the documents required to attract investors.
He emphasised that the meeting does not constitute a tendering process or the selection of an investor. Rather, it is part of the preparatory phase intended to improve the project’s design, identify potential challenges and establish whether the proposed investment is commercially and technically viable.
According to Mauki, the government receives financial support from the World Bank to facilitate the preparation of PPP projects, including the studies and technical assessments required before implementation.
He said project preparation requires comprehensive documentation covering key aspects of the proposed investment to ensure that the eventual investor selection process is based on verified information and proper assessments.
The feedback collected during the Market Sounding meeting will be reviewed by experts responsible for preparing the project and incorporated into the ongoing assessment, particularly before the completion of the feasibility study.
Mauki urged participants to provide honest, practical and technically informed recommendations to help identify potential risks, improve project arrangements and ensure that important considerations are addressed at an early stage.
Understanding Tanzania’s PPP Framework
Public-Private Partnerships are increasingly being used by governments to mobilise private investment, technical expertise and management capacity for infrastructure and public service delivery.
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In Tanzania, the PPP framework provides a mechanism through which the government can collaborate with private investors in developing projects in sectors such as transport, energy, water, healthcare and other strategic areas.
Unlike outright privatisation, where ownership or control of a public asset may be transferred to private interests, PPP arrangements are governed by contractual agreements that define the responsibilities of both parties, including financing, construction, operation, maintenance, revenue collection and risk sharing.
The model is intended to help address infrastructure financing gaps while improving efficiency and service delivery. However, its success depends on transparent procurement, proper feasibility assessments, effective contract management and adequate protection of public interests.
The next stages of the Mbeya project will involve incorporating stakeholders’ recommendations, completing the feasibility assessment and preparing the necessary documentation before the government proceeds to the competitive tendering process to identify a suitable private investor.
