MPs for more PPP policy implementation

The legislators, speaking at a seminar on Public Private Partnerships for the lawmakers organized by the Ministry of Finance and Planning, decried the lethargic implementation of PPPs in the country.

Most of the MPs, who made their contributions in response to a prior presentation by the Commissioner for Public-Private Partnership, Dr Frank Mhilu, were of the opinion that PPP is essential if the government is desirous about bringing development to improve public services.

They called for a change of mindset, political commitment and lessening of bureaucracy to allow smooth implementation of the PPP policy.

Kigoma North MP, Peter Serukamba (CCM), said PPP was a perfect solution that would steer the country to sustainable development, and criticized government’s choice to carry out big projects such as the construction of terminal three, standard gauge railway and Bagamoyo port on borrowed funds instead of engaging the private sector.

A legislator for Sumve constituency, Richard Ndassa, said the PPP has been hampered by too much bureaucracy and urged the government to get rid of the poor system, saying by doing so, President John Maguli’s goal to bring about development would be there for everyone to see.

Mwibara MP, Kangi Lugola (CCM) had similar views, alleging that corruption, when government officials solicited a ‘ten per cent’ (bribe) from potential investors, was the main hindrance factor behind PPP projects in the country.

Sofia Simba (Special Seats, CCM), urged the government to get serious on PPPs, saying; “I’m worried if the government is really serious about public private partnership. Bureaucrats are against PPP projects since there will be no loophole for them to embezzle public money.”

Dr Dalaly Kafumu (Igunga, CCM) said the country should refrain from a poor mindset which regards investors as thieves and exploiters. Adadi Rajabu (Muheza, CCM) said PPPs have proved in many countries to be important vehicles to promote public services but warned that without seriousness, public private partnerships would remain in theories.

Dr Mhilu assured the MPs of the fifth phase government’s commitment towards executing the PPP policy to meet its goals. In his presentation, Dr Mhilu admitted that since its inception in June, 2011, the PPPs dstruggled to take off as it was envisaged, noting that some of the projects under PPP, such as Dar City Water failed due to poor preparation of projects, lack of comprehensive feasibility study, lack of openness.

“Most PPP failures can be attributed to inadequate or non-existent feasibility studies, including unrealistic traffic forecasts and undefined public contribution of funds,” Dr Mhilu told participants.

Drawing experience from a five-year implementation of PPP policy in Tanzania as well as the experience of other countries, Dr Mhilu said other reasons for failure were poor legal framework and enforcement, weak institutional capacity and strategy, unrealistic revenue and cost estimations.

“Lack of thorough financial and economic analysis, inappropriate sharing of risks, lack of competitive procurement, public resistance and political influence are other common reasons for poor performance of PPP,” he said.

Dr Mhilu insisted that PPPs needed political will and not political influence to excel, warning that some of the projects were hampered by influence of politicians. Despite the myriad challenges, the PPP commissioner, remained optimistic about the future of Tanzania in PPPs, saying it was bright.

“Tanzania’s political stability and relative peace is attractive to investors and this is our biggest asset.

And the economic growth of Tanzania has been high and is expected to continue,” he noted. He, however, warned that for the country to excel in PPP there should exist a clear law and regulations with a streamlined process, transparent and open competition, political commitment.

“We also need to introduce proper financial systems, including expedition of the country’s credit rating as well as ensuring that we have well selected financially, viable projects and thorough preparation of projects.”

The seminar, which was graced by Deputy Speaker Tulia Ackson, was attended by legislators from both the ruling party and the opposition.