Tanzanian Government Reviews PPP Law to Address Project Preparation and Contractual Delays

Tanzania is reviewing its Public-Private Partnership Act to improve project preparation, financing, and implementation, as 10 PPP projects worth TZS 8.6 trillion progress during the 2026/27 financial year. The portfolio includes Dar es Salaam BRT infrastructure, port operations, TAZARA railway rehabilitation, commercial property development, and vehicle inspection facilities.
Tanzania Khamis Mussa Omar Parliament bunge

The Tanzanian government is reviewing its Public-Private Partnership (PPP) legislation to address project preparation and contractual delays.

Finance Minister Ambassador Khamis Mussa Omar announced the review in Parliament in Dodoma on 3 November 2026 while concluding discussions on the government’s Medium-Term Planning and Budget Guidelines for 2026/27 to 2028/29.

The review of the Public-Private Partnership Act, Chapter 103, aims to address challenges in preparing and implementing projects, including delays in negotiating and finalising contractual agreements between public institutions and private investors.

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The government is also working to improve the preparation of PPP projects to ensure they meet the requirements for private-sector financing, including their commercial and financial viability.

According to the Finance Minister, 10 PPP projects with a combined value of TZS 8.6 trillion (± USD 3.2 billion) are at different stages of implementation in the 2026/27 financial year.

The projects cover transport infrastructure, port operations, commercial property development, vehicle inspection services and industrial facilities.

Among the projects identified are the first and second phases of the Dar es Salaam Bus Rapid Transit (BRT) system, the development of the DDC Kariakoo commercial building, and the establishment of mandatory motor vehicle inspection and roadworthiness testing centres.

Other projects include improvements to the management and operation of Dar es Salaam Port, the rehabilitation and operation of the Tanzania-Zambia Railway Authority (TAZARA) railway, and the development of a modern workshop and spare-parts manufacturing facility under the Tanzania Buildings Agency (TBA).

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During the parliamentary debate, Minister Omar said the government would incorporate recommendations from the Parliamentary Standing Committee on Budget and Members of Parliament into its medium-term planning and budget guidelines.

The recommendations cover seven areas: government expenditure controls, revenue collection by public institutions, financing and management of development projects, public debt management, digitalisation of public financial management, fiscal discipline, and the implementation of projects through PPP arrangements.

The government also plans to strengthen the management of development projects and improve compliance with public financial management requirements.

These measures form part of the review of the Medium-Term Planning and Budget Guidelines for 2026/27 to 2028/29, which establish the framework for government spending priorities, revenue mobilisation, and development financing.

Public-Private Partnerships in Tanzania

Tanzania’s PPP framework provides for cooperation between public authorities and private investors in the financing, development, operation and maintenance of infrastructure and public-service projects.

The legal framework is established under the Public-Private Partnership Act, Chapter 103, which governs the preparation, procurement, approval and implementation of PPP arrangements.

The country’s medium-term planning framework for 2026/27 to 2028/29 identifies increased private-sector participation in investment and economic activities among the assumptions underpinning government development plans.

The framework also forms part of the implementation of Tanzania’s Fourth Five-Year Development Plan for 2026/27 to 2030/31, which is aligned with the country’s Development Vision 2050.

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