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Parliament set to pass public-private partnership law

11th July 2010
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The Parliament may write a new history next week if it passes a bill for enacting Public Private Partnership Act, 2010, which could see the private sector filling gaps in projects that would otherwise be executed by government.

Already the Public Private Partnership (PPP) policy that paves the way for enactment of the Act has been launched during a special seminar for legislators held in the Parliament mid week.

The legislation’s main objective is to establish legal framework for the participation of private entities in government projects through special agreements. The initiative is aimed at implementing social –economic reforms to stimulate the rate of economic growth and poverty reduction goals.

Minister of State in the Prime Minister’s Office (Policy, Coordination and Parliamentary Affairs) Philip Marmo told The Guardian on Sunday that the proposed Bill is a continuation of the government’s commitment to undertaking social-economic reforms since the mid 1980s.

Among other things, the reforms aim “to phase out the direct role of the public sector in commercial activities” and anchor the private sector as the engine of economic growth. Marmo said there was a need to deepen and broaden participation of the private sector in economic growth by going beyond the creation of enabling environment and start engaging on a one –to- one partnership whereby a public sector entity enters into contractual agreement with a private sector entity to produce goods and services.

According to Marmo, PPP arrangement enables the government to streamline its responsibilities in providing social economic goods and services, hence enhancing efficiency, accountability, quality services and wide outreach.

He said the PPP implemented in Tanzania is based on broad policy reforms, mainly through the privatisation of public enterprises under which the government has remained a minority shareholder

The PPP is seen in public enterprises such as Tanzania Railways Limited (TRL), Container Terminal at Dar es Salaam Port, National Bank of Commerce (NBC), National Microfinance Bank ( NMB),CRDB Bank, Tanzania Breweries Limited, Kilombero Sugar Company, Tanzania Portland Cement Ltd, Kilimanjaro International Airport, Dawasa and Tanzania Cigarette Company.

IPTL, Songas and Umoja Light projects could be considered as typical cases of Public Private Partnerships, the minister said.

South Africa, Brazil, China and Ireland have recorded success in the provision of goods and services to their citizens through PPPs.

Members of Parliament, including Peter Serukamba ( CCM-Kigoma Urban) Job Ndugai ( CCM_ Kongwa and Abdallah Kidoga ( CCM- Handeni) urgd the government to reduce “bureaucracy in decision making” if public private partnership is to prove successful.

SOURCE: GUARDIAN ON SUNDAY
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