The Tanzanian government and the World Bank (WB) are due to prepare a model bidding document to facilitate the execution of Public Private Partnership (PPP) projects at local level.
The document will among other things include request for qualification (RFQ), request for proposal (RFP) and PPP agreement, for projects identified by the local government authorities (LGAs), which are spread over three sectors of public market, bus terminals and abattoirs.
The scope of work includes preparation of generic model bidding documents and preparation of sector-specific versions for PPP projects in the mentioned sectors. The views for the preparation of the documents on how projects can be done at local levels were gathered from a cross section of stakeholders including lawyers, financial institutions and development partners.
Currently a concept note has been prepared which is a feasibility study on how the project can be implemented, and the views obtained are expected to go along to facilitate the formulation of the document.
The document serves as an explanatory material to RFQ, RFP and PPP agreement thus a practical guide to assist the authority officials in securing a private partner for their PPP projects. The World Bank and the government believe the document is a lasting solution to local authorities’ dependence on government budget which in most cases is not always enough and also giving an opportunity to the private sector to fully participate in building the economy.
PPPs can enable the Government to fulfill its responsibilities in efficient delivery of socio-economic goods and services by ensuring efficiency, effectiveness, accountability, quality and outreach of services. The concept of PPP entails an arrangement between the public and private sector entities whereby the private entity renovates, constructs, operates, maintains, and/or manages a facility in whole or in part, in accordance with specified output specifications. The private entity assumes the associated risks for a significant period of time and in return, receives benefits and financial remuneration according to agreed terms. PPPs constitute a cooperative venture built on the synergy of expertise of each partner that best meets clearly defined public needs through the most appropriate allocation of resources, risks and rewards.
Most PPPs implemented in Tanzania are concession arrangements for running existing enterprises with limited provisions for rehabilitation and new investments. It is noteworthy that in the case of services, PPPs have been implemented successfully by Faith Based Organizations (FBOs) in education, health and water sectors for many years. However, in the case of other sectors, the performance has been mixed largely due to the complexity of such projects and lack of clear guidelines on the criteria for public and private sector partnership.