PPP Act amendments – July 2023

The Public Private Partnership (Amendment) Act 2023 has made some further changes to the Public Private Partnership Act Act 2010 which include, but are not limited to, the following:

• PPP Act shall not prejudice the implementation of a special arrangement for development of a strategic project which has been approved by the Cabinet.
• A project concept note is no longer required but every contracting authority shall, at the beginning of every budget cycle, submit to the Minister a pre-feasibility study of potential PPP projects for consideration in the National Development Plan.
  • Each pre-feasibility study shall be forwarded to the PPP Centre within 7 working days after receipt, for analysis by the Minister .
  • PPP Centre shall analyse the pre- feasibility study within 21 working days and forward it to the PPP Steering Committee.
  • PPP Centre shall request within 30 working days for proposal evaluation reports for selection of preferred bidder and PPP agreements.
• “public funding” means government financial support that constitutes fiscal commitment or contingent liabilities in relation to a PPP project.
• Minister may exempt procurement of solicited PPP project from competitive bidding process where the project meets certain prescribed criteria such as, for instance, it was unforeseen that project deliverable is of an urgent need and any other procurement method is impracticable.
• Private party shall, before the signing of the PPP agreement, establish a Special Purpose Vehicle in accordance with the Companies Act for the purpose of undertaking the PPP project. SPV may include a public entity as a minority shareholder subject to certain provisos.
• Disputes under the PPP agreement shall be settled in accordance with (a) arbitration laws of Tanzania; (b) ICSID; or (C) the framework of any bilateral or multilateral investment protection agreement.
• PPP Act shall prevail if there is any inconsistency with the provisions of any other written PPP law.

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