Tanzania PPP Regulations 2020

See below a summary update of the new PPP Regulations 2020:

  1. Market sounding will be conducted by Contracting Authority, or PPP advisor acting on behalf of the Contracting Authority, during or following the preparation of the Feasibility Study. Any market sounding shall not (a) distort competition or efficiency among potentially interested entities; or (b) undermine the principles of fairness, value for money, transparency and proportionality.
  2. Government support requires an analysis of fiscal risk by the Technical Debt Management Committee before forwarding the analysis to the National Debt Management Committee for determination by the Minister, and then if approved issuance in accordance with the Government Loans, Grants and Guarantees Act.
  3. PPP Advisor replaces “Transaction Advisor”.
  4. Small Scale PPP is a PPP whose total project value does not exceed USD 20 million based on the total capital investment during the project duration as determined by the Contracting Authority during project preparation.
  5. PPP desk shall be set up within the Ministry to coordinate the implementation of a PPP project of the respective Ministry, Government Department, Authority or Agency.
  6. Local content and corporate social responsibility 
    1. Every operator of an approved PPP project shall enshrine and implement local content and corporate social responsibility as stipulated in the PPP Act.
    2. Parties to a PPP agreement shall:
      • endeavour to prioritise acquisition of goods and services, in the first instance, in favour of local service provider or locally manufactured goods, provided that such goods or services are of competitive terms and meet standards acceptable by Tanzania Bureau of Standards or other internationally acceptable standards;
      • prioritise on-the-job training for Tanzanians;
      • ensure availability of succession plan, where applicable, to ensure that a Tanzanian citizen is given priority in any matter relating to technology transfer, research, development and innovation in any PPP related activities; and
      • adhere to the Corporate Social Responsibility and Disclosure requirements.
    3. A foreign company which intends to provide goods, works or services to a PPP project shall, subject to the Minister’s approval, after thorough scrutiny by the PPP Centre and recommendation by the Public Private Steering Committee to the Minister, enter into any arrangement which will guarantee a local participation of at least 10% shares, interest or equity of the contract value for the provisions of the works, goods and services provided that such arrangement does not divert from the PPP arrangement.
  7. 15% preference for local goods – In contracts for goods and related services awarded by international competitive tendering or national competitive tendering, procuring entities shall grant a margin of preference of up to 15% percent to domestically manufactured or produced goods.

Please contact us if you have any comments or questions.

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