The Public Private Partnership Act

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CHAPTER 103
THE PUBLIC PRIVATE PARTNERSHIP ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Application.
3. Interpretation.
part ii
ESTABLISHMENT AND ADMINISTRATION OF THE PPP CENTRE
4. PPP Centre.
5. Functions of PPP Centre.
6. Executive Director.
7. Public Private Partnership Steering Committee.
8. Functions of Public Private Partnership Steering Committee.
9. Public funding and other support of PPP project.
10. Powers of Minister generally.
part iii
PARTICIPATION OF PUBLIC AND PRIVATE PARTY
11. Roles of public and private sector.
12. Responsibilities of contracting authority.
13. Feasibility study.
14. Facilitation Fund.
15. Sources of funds.
16. Books of accounts, records and annual reports.
17. Agreement.
18. Land acquisition.
19. Duration and extension of agreement.
20. Vetting of agreements.
21. Procurement process.
22. Unsolicited bids.
23. Project officers.
24. Signing of agreements.

and extension of agreement.
20. Vetting of agreements.
21. Procurement process.
22. Unsolicited bids.
23. Project officers.
24. Signing of agreements.

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
25. Establishment of special purpose vehicle.
26. Responsibilities of accounting officers.
27. Amendment of agreements.
28. Enjoyment of benefits.
29. Settlement of disputes.
part iv
MISCELLANEOUS PROVISIONS
30. Monitoring and evaluation.
31. Periodic performance reports.
32. Conflict of interest.
33. Empowerment of citizens.
34. Projects relating to natural wealth and resources.
35. Duty to take care and exercise due diligence.
36. General penalty.
37. Regulations.
38. Inconsistency with other laws.
39. Saving provisions.

ces.
35. Duty to take care and exercise due diligence.
36. General penalty.
37. Regulations.
38. Inconsistency with other laws.
39. Saving provisions.

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PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Public Private Partnership Act. 2.–(1) This Act shall apply to Mainland Tanzania in respect of
projects undertaken in partnership between the public sector
and private sector. (2) Notwithstanding any provision to the contrary, the
provisions of this Act shall not prejudice the implementation
of an agreement that provides for special arrangement for
development of a strategic project in the United Republic
where such agreement has been approved by the Cabinet:
Provided that, the agreement shall, prior to submission to
the Cabinet for approval, be vetted by the Attorney General. Short title
Application
Acts Nos. 4 of 2021 s. 33
4 of 2023 s.

ll, prior to submission to
the Cabinet for approval, be vetted by the Attorney General. Short title
Application
Acts Nos. 4 of 2021 s. 33
4 of 2023 s.

2
CHAPTER 103
THE PUBLIC PRIVATE PARTNERSHIP ACT
An Act to provide for the institutional framework for the implementation
of public private partnership agreements between the public sector
and private sector entities; to set rules, guidelines and procedures
governing public private partnership procurement, development and
implementation of public private partnerships and to provide for other
related matters. [26th May, 2011]
[GN. No. 156A of 2011]
Acts Nos. 18 of 2010
3 of 2013
4 of 2013
3 of 2014
9 of 2018
2 of 2020
4 of 2021
4 of 2023
GN. No. 483 of 2018

[26th May, 2011]
[GN. No. 156A of 2011]
Acts Nos. 18 of 2010
3 of 2013
4 of 2013
3 of 2014
9 of 2018
2 of 2020
4 of 2021
4 of 2023
GN. No. 483 of 2018

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
3.

served. No part of this book may be reproduced or distributed without permission of OAG.396
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
3.

In this Act, unless the context otherwise requires:
“accounting officer” means a Permanent Secretary or a
Chief Executive of a contracting authority and includes
accounting officers of a local government authority;
“affordable” in relation to an agreement, means that the
contracting party shall meet any financial commitment
to be incurred in relation to that agreement;
“agreement” means a public private partnership agreement
entered into in terms of this Act;
“asset” includes an existing asset of a relevant contracting
authority or a new asset to be acquired for the purposes
of entering into an agreement;
“contingent liability” means a legal or contractual obligation
to make payment depending on the outcome of uncertain
future event arising from project transaction including
all other contingent liabilities that may be borne by the
Government in relation to or associated with public
private partnership projects;
“contracting authority” means any Ministry, government
department or agency, local government authority, public
or statutory corporation;
“Executive Director” means the Executive Director for the
PPP Centre appointed under section 6;
“Facilitation Fund” means the Public Private Partnership
Facilitation Fund established under section 14;
“local government authorities” shall have the meaning
ascribed to it under the Local Government (District
Authorities) Act and the Local Government (Urban
Authorities Act);
“Minister” means the Minister responsible for public private
partnership;
“Ministry” means the Ministry responsible for public private
partnership;
“PPP agreement” means a written contract defining terms
of the public private partnership agreement concluded
between a contracting authority and one or more private
parties;
Interpretation
Acts Nos.

terms
of the public private partnership agreement concluded
between a contracting authority and one or more private
parties;
Interpretation
Acts Nos.

3 of 2014 s. 2
9 of 2018 s. 2
4 of 2023 s. 3
Caps. 287 and 288

3 of 2014 s. 2
9 of 2018 s. 2
4 of 2023 s. 3
Caps. 287 and 288

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E.

rights reserved. No part of this book may be reproduced or distributed without permission of OAG.397
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E.

2023]
“PPP Centre” means the Public Private Partnership Centre
established under section 4;
“private party” in relation to an agreement, means a party to
the agreement other than a contracting authority;
“project” means a project or service to be implemented
under an agreement entered into under this Act;
“private sector” means a sector other than a public sector including
non-profit making non-governmental organisations;
“public private partnership” or known in its acronym as
“PPP” means a contractual arrangement between a
contracting authority and a private party in which the
private party-
(a) undertakes to perform for contracting authority
function on behalf of the contracting authority for a
specified period;
(b) assumes substantial financial, technical and operation
risks in connection with the performance on behalf of
the contracting authority function or use of government
property; or
(c) receives a benefit for performing on behalf of
contracting authority function or from utilising the
public property, either by way of-
(i) consideration to be paid by the contracting
authority which derives from a revenue fund,
or where the contracting authority is a central
government or local government authority, from
revenues of such authority;
(ii) charges or fees to be collected by a private party or
its agent from users or customers; or
(iii) a combination of such consideration and such
charges or fees;
“Public Private Partnership Steering Committee” means
the Private Public Partnership Steering Committee
established under section 7;
“public sector” means a government ministry, department
or agency, local government authority regional

Steering Committee
established under section 7;
“public sector” means a government ministry, department
or agency, local government authority regional

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
secretariat or any other public institution and any other
person acting on behalf of the government ministry,
department, agency, local government authority or
regional secretariat;
“request for proposals” means the specific terms of the
project requirement, the procedures for submission of
bids, the criteria for the evaluation of bids and includes
standard documents;
“sector Ministry” means a Ministry responsible for the
contracting authority;
“small scale PPP project” means a PPP project approved
under this Act of an amount not exceeding twenty million
US dollars.

the
contracting authority;
“small scale PPP project” means a PPP project approved
under this Act of an amount not exceeding twenty million
US dollars.

“special purpose vehicle” means a private company established
by a successful private party prior to the execution of an
agreement for the purpose of implementing a PPP project
and such company may have other parties including a
public entity as members, whose liabilities and financial
risk exposure are limited by shares;
“standard document” includes standard request for
qualification, standard request for proposal and standard
PPP agreement;
“strategic project” means a strategic project determined as
such by the authority responsible for national planning;
PART II
1ESTABLISHMENT AND ADMINISTRATION
OF THE PPP CENTRE
4.–(1) There is established a PPP Centre to be known as the
Public Private Partnerships Centre. (2) There shall be such other number of departments as
the Executive Director may, upon approval of the authority
responsible for establishment in the public service, determine. 1 The title to Part II was amended by Act No. 3 of 2014, s. 3. PPP Centre
Acts Nos. 3 of 2014 s. 4
9 of 2018 s. 4
4 of 2023 s. 4
GN. No
483 of 2018

e. 1 The title to Part II was amended by Act No. 3 of 2014, s. 3. PPP Centre
Acts Nos. 3 of 2014 s. 4
9 of 2018 s. 4
4 of 2023 s. 4
GN. No
483 of 2018

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(3) The Centre shall be a body corporate with perpetual
succession and common seal and shall, in its own name, be
capable of-
(a) acquiring and holding movable and immovable
property, to dispose of property and to enter into a
contract or other transactions;
(b) suing and being sued; and
(c) doing or suffering to do all other acts and things which
bodies corporate may lawfully do or suffer to do, for
the proper performance of its functions under this Act. (4) The PPP Centre shall deal with promotion and
co-ordination of all matters relating to public private
partnership projects.

nctions under this Act. (4) The PPP Centre shall deal with promotion and
co-ordination of all matters relating to public private
partnership projects.

(5) The projects referred to under subsection (4) shall,
subject to subsections (6) and (8), be undertaken in productive
and social sectors, including but not limited to the following
sectors:
(a) agriculture;
(b) infrastructure;
(c) industry and manufacturing;
(d) exploration and mining;
(e) education;
(f) health;
(g) environment and waste management;
(h) information and communication technology (ICT);
(i) trade and marketing;
(j) sports, entertainment and recreation;
(k) natural resources and tourism; and
(l) energy. (6) Every contracting authority shall, at the beginning of
every budget cycle, submit to the Minister a prefeasibility
study of potential public private partnership projects for
consideration in the National Development Plan:
Provided that-
(a) the potential public private partnership project
complies with the national development priorities; and

National Development Plan:
Provided that-
(a) the potential public private partnership project
complies with the national development priorities; and

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(b) the prefeasibility study of potential public private
partnership project is approved by the respective
Minister. (7) The Minister shall, within seven working days, upon
receipt of prefeasibility study of potential public private
partnership project from the contracting authority, cause such
study to be forwarded to the PPP Centre for analysis. (8) The PPP Centre shall, within twenty-one working
days, analyse the prefeasibility study of potential public
private partnership project received in terms of subsection
(7) and forward it to the Public Private Partnership Steering
Committee for notification. (9) In this section, the term “budget cycle” shall have the
meaning ascribed to it under the Budget Act.

tnership Steering
Committee for notification. (9) In this section, the term “budget cycle” shall have the
meaning ascribed to it under the Budget Act.

5.–(1) The functions of the PPP Centre shall be to-
(a) mobilise resources for project development and
Government support to public private partnership
projects;
(b) develop a mechanism to ensure that all ministries,
Government departments and agencies and local
government authorities integrate public private
partnership into their sector strategies and plans;
(c) develop operational guidelines for contracting
authorities;
(d) design and implement a fair, transparent, competitive
and cost effective procurement process;
(e) deal with fiscal risk allocation and other financial
matters of all public private partnership projects;
(f) advise contracting authorities on all matters relating to
public private partnership projects;
(g) provide technical assistance to ministries, Government
departments, agencies, local government authorities
and private sector in planning, managing and
appraising public private partnership projects;
(h) examine requests for proposals to ensure conformity
with the approved feasibility study;
Cap. 439
Functions of PPP
Centre
Acts Nos. 3 of 2014 s. 5
9 of 2018 s. 5
4 of 2023 s. 5

sals to ensure conformity
with the approved feasibility study;
Cap. 439
Functions of PPP
Centre
Acts Nos. 3 of 2014 s. 5
9 of 2018 s. 5
4 of 2023 s. 5

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(i) monitor, review and evaluate implementation of Public
Private Partnership Facilitation Fund;
(j) ensure relevance and adequacy of proposals submitted
to it by contracting authorities;
(k) monitor and evaluate the performance of the public
private partnership projects and prepare periodic
performance reports;
(l) design and implement programmes for public private
partnership capacity building to public and private
sectors;
(m) develop and implement programmes intended to
promote public awareness on public private partnership
issues; and
(n) undertake research on public private partnership matters. (2) Without prejudice to the generality of subsection (1),
the PPP Centre shall, within thirty working days from the
date of receiving the prefeasibility study of potential public
private partnership project, request for proposal, evaluation
reports for selection of preferred bidder and PPP agreements
submitted by contracting authorities, analyse them.

ect, request for proposal, evaluation
reports for selection of preferred bidder and PPP agreements
submitted by contracting authorities, analyse them.

(3) The PPP Centre shall, upon completion of analysis
under subsection (2), submit the feasibility study, selection
of preferred bidder and PPP agreements to the Public Private
Partnership Steering Committee for approval. (4) The PPP Centre be a One Stop Center, and in so
being, it shall, for effective discharge of its functions seek
recommendations from the ministries responsible for
investment, finance, planning or any other ministry, department
or agency. (5) This section shall not prevent the contracting authorities
from undertaking necessary technical analysis relevant for
project within their jurisdiction. (6) The Minister shall, for the purpose of ensuring
investment in PPP projects and in consultation with the
Minister responsible for investment, prepare programmes for
development and maintenance of favourable environment for
investment through public private partnership arrangement.

nvestment, prepare programmes for
development and maintenance of favourable environment for
investment through public private partnership arrangement.

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
6.–(1) The PPP Centre shall be headed by a Executive Director
who shall be appointed on competitive basis in accordance
with the Public Service Act. (2) A person shall be qualified for appointment as Executive
Director if that person-
(a) possesses at least a degree in the field of project
management, accounting, law, engineering, economics
or other related fields; and
(b) has knowledge and experience on the development,
formation or implementation of projects or
undertakings of a public or private nature. (3) There shall be appointed to the PPP Centre such persons
who are qualified and possess knowledge and experience on
the formation, development or implementation of projects or
undertakings of a public or private nature. (4) The appointment of persons to the PPP Centre shall be made
on competitive basis in accordance with the Public Service Act.

blic or private nature. (4) The appointment of persons to the PPP Centre shall be made
on competitive basis in accordance with the Public Service Act.

7.–(1) There shall be a Public Private Partnership Steering
Committee comprised of-
(a) the Permanent Secretary of the Ministry responsible
for finance who shall be the Chairman;
(b) the Permanent Secretary Prime Minister’s Office;
(c) the Permanent Secretary of the Ministry responsible
for lands;
(d) the Deputy Attorney General;
(e) a representative of authority responsible for national
planning;
(f) the Executive Director of the Tanzania Investment Centre;
(g) the Executive Director of the Tanzania Private Sector
Foundation;
(h) the Commissioner General of Tanzania Revenue Authority;
(i) the Permanent Secretary, Ministry responsible for local
government;
(j) two persons from private sector nominated by the
Minister on recommendation of Tanzania Private
Sector Foundation. Executive
Director
Act No. 3 of 2014 s. 6
Cap. 298
Cap. 298
Public Private
Partnership
Steering
Committee
Acts Nos. 3 of 2014 s. 7
9 of 2018 s. 6
4 of 2023 s. 6

Director
Act No. 3 of 2014 s. 6
Cap. 298
Cap. 298
Public Private
Partnership
Steering
Committee
Acts Nos. 3 of 2014 s. 7
9 of 2018 s. 6
4 of 2023 s. 6

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(2) The Permanent Secretary of the sector Ministry whose
project is the subject of deliberation shall attend meetings of
the Public Private Partnership Steering Committee. (3) The Public Private Partnership Steering Committee may
co-opt any other person who has knowledge and experience in
the subject matter of the deliberation. (4) The Executive Director shall be the Secretary to the
Public Private Partnership Steering Committee. (5) The Public Private Partnership Steering Committee
shall meet at least once in every three months. (6) Notwithstanding the provision of subsection (5), the Public
Private Partnership Steering Committee may meet as often as it
may be necessary for effective discharge of its functions.

f subsection (5), the Public
Private Partnership Steering Committee may meet as often as it
may be necessary for effective discharge of its functions.

8.–(1) The functions of the Public Private Partnership Steering
Committee shall be to-
(a) review policy, legislation, plans and strategies pertaining
to the promotion, facilitation and development of
public private partnership and to advise the Minister
accordingly;
(b) advise the Minister on matters relating to implementation
of the National Public Private Partnership Programme;
(c) approve feasibility study, detailed project report and
design, selection of preferred bidder, public private
partnership agreement or any amendment to the
agreement;
(d) approve allocation of project development funds from
the Facilitation Fund; and
(e) assign to contracting authorities terms and conditions
for utilisation of the Facilitation Fund. (2) Subject to the recommendation made by the PPP Centre,
the Public Private Partnership Steering Committee shall,
within twenty one working days, approve feasibility studies,
detailed project report and design, selection of preferred
bidder, agreements and amendment to agreements. [s. 7A]
Functions of
Public Private
Partnership
Steering
Committee
Acts Nos. 3 of 2014 s. 8
9 of 2018 s. 7

er, agreements and amendment to agreements. [s. 7A]
Functions of
Public Private
Partnership
Steering
Committee
Acts Nos. 3 of 2014 s. 8
9 of 2018 s. 7

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
9.–(1) Notwithstanding the provisions of section 8, the
Public Private Steering Committee shall, where a project
requires public funding, any other Government support or
determination of matters of policy, refer the matter to the
Minister for determination. (2) The Minister shall, within twenty-one working days
from the date of receipt of matters from the Public Private
Partnership Steering Committee in terms of subsection (1)-
(a) in the case of matters requiring public funding,
process the matter in the manner prescribed under the
Government Loans, Guarantees and Grants Act;
(b) in the case of matters requiring any government
support or determination of matters of policy, make
determination and direct the Public Private Partnership
Steering Committee accordingly. (3) Notwithstanding the provision of subsection (2), the
Minister shall, where a matter has not been determined within
twenty-one working days, notify the Public Private Partnership
Steering Committee with reasons thereof.

where a matter has not been determined within
twenty-one working days, notify the Public Private Partnership
Steering Committee with reasons thereof.

(4) For the purpose of this section, “public funding”
means Government financial support that constitutes fiscal
commitment or contingent liabilities in relation to a PPP project. [s. 7B]
10.–(1) The Minister shall, through the official Gazette,
newspaper of wide circulation or public media, notify the
general public of all approved projects under this Act. (2) The Minister shall monitor and manage fiscal risks and
other financial matters relating to the implementation of PPP
projects in accordance with the respective agreement. (3) Subject to the provisions of this Act, the Minister shall
issue directives to accounting officers of contracting authorities
on the analysis and approval or disapproval of small scale PPP
projects. [s. 7C]
Public funding
and other support
of PPP project
Acts Nos. 3 of 2014 s. 8
9 of 2018 s. 8
4 of 2023 s. 7
Cap. 134
Powers of
Minister
generally
Act No. 9 of 2018 s. 9

g
and other support
of PPP project
Acts Nos. 3 of 2014 s. 8
9 of 2018 s. 8
4 of 2023 s. 7
Cap. 134
Powers of
Minister
generally
Act No. 9 of 2018 s. 9

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
PART III
PARTICIPATION OF THE PUBLIC
AND PRIVATE PARTY
11.–(1) The public sector shall facilitate the implementation of
the public private partnership projects by:
(a) identifying projects;
(b) carrying out feasibility studies;
(c) monitoring and evaluation;
(d) risk sharing; and
(e) putting in place an appropriate enabling environment,
including-
(i) favourable policies;
(ii) implementation strategies; and
(iii) the legal and institutional framework. (2) The private sector, shall play the role of identifying and
implementing public private partnership projects by-
(a) carrying out feasibility studies;
(b) mobilising resources;
(c) risk sharing;
(d) monitoring and evaluation; and
(e) providing technical expertise and managerial skills.

ility studies;
(b) mobilising resources;
(c) risk sharing;
(d) monitoring and evaluation; and
(e) providing technical expertise and managerial skills.

(3) The public sector and private sector shall, have the duty
to prepare a communication strategy for awareness creation
and consensus building for acceptance by all stakeholders of
public private partnerships and their outcomes benefits and
associated costs and risks. [s. 8]
12.–(1) The contracting authority shall, for the purpose of this
Act-
(a) identify, appraise, develop, manage and monitor a
project to be implemented under this Act;
(b) undertake or cause to be undertaken a feasibility
study where it considers that the project is suitable for
implementation under an agreement;
Roles of public
and private sector
Responsibilities
of contracting
authority
Act No. 3 of 2014 s. 9
4 of 2023 s. 8

implementation under an agreement;
Roles of public
and private sector
Responsibilities
of contracting
authority
Act No. 3 of 2014 s. 9
4 of 2023 s. 8

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(c) submit the proposed project together with the feasibility
study to the PPP Centre for consideration; and
(d) submit after every three months to the PPP Centre
implementation report of the recommendations issued
by the PPP Centre. (2) The contracting authority shall make consultation with
the relevant regulatory authorities prior to submission of
feasibility study of the proposed project to the PPP Centre. (3) Sections 8 and 9 shall not be construed as removing or
abrogating powers of the contracting authority or accounting
officer for assuming overall responsibility on matters assigned
to it under this section. [s. 9]
13.–(1) Every contracting authority shall undertake or cause
to be undertaken a feasibility study where it considers that a
project may be implemented under public private partnership
agreement for purposes of assessing whether the proposed
project is feasible.

iders that a
project may be implemented under public private partnership
agreement for purposes of assessing whether the proposed
project is feasible.

(2) The feasibility study shall-
(a) identify and define the activity which the Government
intends to outsource from a private party;
(b) assess the projected impact of intended outsourcing
of the activity to a private party on the staff, assets,
liabilities and revenues of the Government;
(c) asses the need for the Government in relation to such
activity including:
(i) options available to the Government to satisfy
those needs;
(ii) the advantages and disadvantages of each option;
(d) demonstrate comparative advantage in terms of
strategic and operational benefits for implementation
under the agreement;
(e) describe, in specific terms-
(i) the nature of the contracting authority’s functions,
the specific functions to be considered in relation to
the project and the expected inputs and deliverables;
Feasibility
study
Act No. 9 of 2018 s. 10

the specific functions to be considered in relation to
the project and the expected inputs and deliverables;
Feasibility
study
Act No. 9 of 2018 s. 10

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(ii) the extent to which those functions can lawfully
and effectively be performed by a private party in
terms of an agreement;
(f) demonstrate that the agreement shall-
(i) be affordable to the contracting authority;
(ii) provide value for money;
(iii) transfer appropriate technical, operational or
financial risks to the private party;
(g) assess the capacity of the contracting authority to
effectively implement the agreement, including the
ability to monitor and regulate project implementation
and the performance of the private party in terms of
the agreement; and
(h) assess the capacity, resources and ability of the private
party to implement the project. (3) For the purpose of subsection (2), the feasibility study
shall include technical and socio-economic impact analysis.

rty to implement the project. (3) For the purpose of subsection (2), the feasibility study
shall include technical and socio-economic impact analysis.

(4) The assessment under paragraph (c) of subsection (2)
shall indicate comparative projections of-
(a) the full costs to the Government or the activity if
that activity is not outsourced through public private
partnership agreement; and
(b) the full costs to the Government for the activity if
that activity is outsourced through a public private
partnership agreement. (5) Without prejudice to the provisions of subsection (2),
the Minister may, by regulations, prescribe additional or
detailed contents of a concept note and feasibility study as may
be required under a PPP project. (6) Where the project which is to be undertaken is of such a
nature or type for which an environmental impact assessment
is required under Part VI of the Environmental Management
Act, to be carried on, the contracting authority shall ensure that
the environmental impact assessment certificate is obtained by
the private party before undertaking the project. [s. 10]
Cap. 191

ty shall ensure that
the environmental impact assessment certificate is obtained by
the private party before undertaking the project. [s. 10]
Cap. 191

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THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
14.–(1) There shall be a Facilitation Fund to be known as the
Public Private Partnership Facilitation Fund. (2) The PPP Centre shall open a bank account into which
shall be kept all moneys constituting the Facilitation Fund. (3) The Executive Director shall be the accounting officer of
the Facilitation Fund. (4) The use of funds from the Facilitation Fund shall require
approval of the Public Private Partnership Steering Committee. [s. 10A]
15.–(1) The sources of funds of the Facilitation Fund shall
be such sums of moneys appropriated by Parliament for that
purpose, and any other funds mobilised from any of following
sources:
(a) development partners, public entities, parastatal
organisations and social security funds; and
(b) funds previously advanced to contracting authorities
wholly or partially recovered by the Facilitation Fund
in accordance with agreements for project support.

eviously advanced to contracting authorities
wholly or partially recovered by the Facilitation Fund
in accordance with agreements for project support.

(2) Upon approval by the Public Private Partnership
Steering Committee, the Facilitation Fund shall be used for-
(a) financing wholly or partly the feasibility studies and
other project preparation costs as may be required by a
contracting authority;
(b) providing resources to enhance the viability of
projects which have high economics benefits that have
demonstrated to be of limited financial viability; and
(c) any such other purposes as may be prescribed in the
regulations. (3) The provisions of subsection (2) shall not be construed
as limiting or preventing contracting authorities from using
own funds to finance feasibility studies and other project
preparation costs. [s. 10B]
Facilitation Fund
Acts Nos. 3 of 2014 s. 10
9 of 2018 s. 11
Sources of funds
Acts Nos. 3 of 2014 s. 10
9 of 2018 s. 2

ject
preparation costs. [s. 10B]
Facilitation Fund
Acts Nos. 3 of 2014 s. 10
9 of 2018 s. 11
Sources of funds
Acts Nos. 3 of 2014 s. 10
9 of 2018 s. 2

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.409
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
16.–(1) The PPP Centre shall keep books of accounts and
maintain proper records of operations of the Facilitation Fund
in accordance with acceptable accounting standards. (2) The PPP Centre shall, at any time, and at the end of each
financial year, have the accounts of the Fund audited by the
Controller and Auditor-General. (3) The PPP Centre shall submit to the Minister audited
report and annual report containing detailed information
regarding activities of the Facilitation Fund during the previous
year ending on the 30th June. (4) The Minister shall cause to be tabled to the National
Assembly statement of audited accounts and report of the PPP
Centre. (5) The Minister shall prepare and submit to the Cabinet
annual report on implementation of the Public Private
Partnership Programme. [s.

PPP
Centre. (5) The Minister shall prepare and submit to the Cabinet
annual report on implementation of the Public Private
Partnership Programme. [s.

10C]
17.–(1) Notwithstanding the provisions of any other written
laws, a contracting authority may enter into an agreement
with a private party for the performance of one or more of the
functions of that contracting authority. (2) For the purpose of subsection (1), the accounting officer
of a contracting authority shall, for the purpose of advising the
Minister responsible for contracting authority, form a multi
disciplinary negotiating team possessing knowledge, skills and
experience on the subject matter of the proposed project. (3) Without prejudice to subsection (2), the negotiating
team shall ensure that the agreement is made in writing and-
(a) specifies the responsibilities of the contracting authority
and the private party;
(b) specifies the relevant financial terms;
(c) ensures for the management of performance of the
private party;
(d) provides for undertaking by the contracting authority to
the private party in obtaining licences and permits which
may be necessary for the implementation of the project;
Books of
accounts, records
and annual
reports
Act No. 3 of 2014 s. 10
Agreement
Act No. 3 of 2014 s. 11

cessary for the implementation of the project;
Books of
accounts, records
and annual
reports
Act No. 3 of 2014 s. 10
Agreement
Act No. 3 of 2014 s. 11

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.410
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(e) provides for the return of assets, if any, to the
contracting authority, at the termination or expiry of
the agreement;
(f) specifies the roles and risks undertaken by either party;
(g) provides for the payment to the private party, by way of
compensation from a revenue fund of charges or fees
collected by the private party from users or customers
of the service provided by it;
(h) specifies payment of the private party to the contracting
authority;
(i) provides for remedies in the event of default by either
party;
(j) imposes financial management duties on part of
the private party, including procedures relating to
internal financial control, budgeting, transparency,
accountability and reporting;
(k) provides for the termination of the agreement in case
of breach of terms and conditions by either party;
(l) provides for the conditions for the provision of service,
where necessary;
(m) provides for the period of execution; and
(n) contains such other information as may be necessary.

for the provision of service,
where necessary;
(m) provides for the period of execution; and
(n) contains such other information as may be necessary.

(4) Without prejudice to the provisions of subsection (3),
the agreement shall contain conditions that ensures-
(a) the private party undertakes to perform a contracting
authority’s function on behalf of the contracting
authority for a specified period;
(b) the private party is liable for the risks arising from the
performance of its functions;
(c) the environmental impact assessment certificate has
been issued in respect of the project;
(d) Government facilities, equipment or other state
resources which are necessary for the project and are
transferred or made available to the private party on a
timely basis; and
(e) the public and private assets are clearly specified.

the project and are
transferred or made available to the private party on a
timely basis; and
(e) the public and private assets are clearly specified.

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.411
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(5) Every agreement entered into under this Act shall
be governed and construed in accordance with the laws of
Mainland Tanzania. (6) The rights, obligations and controlling interests of the
private party in any project performed under the agreement
shall not be transferred or assigned to a third party without the
prior written consent of the contracting authority. (7) The contracting authority shall ensure that an agreement
involving public private partnership project is executed under
procedures stipulated and through institutions specified under
this Act. [s. 11]
18. Where the project requires acquisition of land for its
implementation, the acquisition shall be carried out in accordance
with the Land Act, the Village Land Act, the Land Use Planning
Act, the Land Acquisition Act and any other relevant laws. [s.

arried out in accordance
with the Land Act, the Village Land Act, the Land Use Planning
Act, the Land Acquisition Act and any other relevant laws. [s.

12]
19.–(1) The duration of an agreement shall be provided for in
the agreement and shall not be extended unless-
(a) there is a delay in completion or interruption of operations
due to circumstances beyond any party’s control;
(b) there was an increase in costs arising from requirements
of the contracting authority which were not foreseen or
included in the agreement; and
(c) the service is required and the contracting authority
has no capacity or immediate intention to take over
and run the project. (2) A violation of the provisions of subsection (1) by either
of the parties to an agreement shall render a defaulting party
liable for any pecuniary loss incurred by the other party. [s. 13]
20. Every agreement intended to be entered into under this
Act shall be submitted to the Office of the Attorney General
for a legal opinion. [s. 14]
Land acquisition
Caps. 113, 114,
116 and 118
Duration and
extension of
agreement
Act No. 4 of 2023 s. 9
Vetting of
agreements

a legal opinion. [s. 14]
Land acquisition
Caps. 113, 114,
116 and 118
Duration and
extension of
agreement
Act No. 4 of 2023 s. 9
Vetting of
agreements

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.412
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
21.–(1) All public private partnership projects under this Act
shall be procured through an open and competitive bidding
process.

[CAP. 103 R.E. 2023]
21.–(1) All public private partnership projects under this Act
shall be procured through an open and competitive bidding
process.

(2) Notwithstanding the provision of subsection (1), the
Minister may exempt procurement of an unsolicited project from
competitive bidding process where it meets the following criteria:
(a) the project shall be of priority to the Government at
the particular time and broadly consistent with the
government strategic objectives;
(b) the private proponent does not require Government
guarantee or any form of financial support from the
Government;
(c) the project shall have unique attributes that justify
departing from a competitive tender process;
(d) the project is of significant size, scope and requires
substantial financing as per conditions provided in the
regulations;
(e) the project shall demonstrate value for money,
affordability and shall transfer significant risks to the
private proponent;
(f) the project has wide social economic benefits including
improved services, employment and taxation; and
(g) the proponent commits to bear cost of undertaking a
feasibility study.

economic benefits including
improved services, employment and taxation; and
(g) the proponent commits to bear cost of undertaking a
feasibility study.

(3) Upon recommendation from the PPP Steering
Committee, the Minister may exempt procurement of solicited
project from competitive bidding process where the project
meets criteria prescribed under subsection (2) and any of the
following conditions are satisfied:
(a) the project deliverable is of an urgent need, and any
other procurement method is impracticable:
Provided that, the circumstances giving rise to the urgency
were not foreseeable by the contracting authority;
(b) the private party possesses the intellectual property
rights to the key approaches or technologies required
for the project; or
Procurement
process
Acts Nos. 4 of 2013 s. 40
3 of 2014 s. 12
9 of 2018 s. 12
4 of 2023 s. 10

approaches or technologies required
for the project; or
Procurement
process
Acts Nos. 4 of 2013 s. 40
3 of 2014 s. 12
9 of 2018 s. 12
4 of 2023 s. 10

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.413
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(c) a particular private party has exclusive rights in
respect of the project, and no reasonable alternative or
substitute is available. (4) Upon exemption of an unsolicited project from
competitive bidding process, the Government and the private
proponent shall commence negotiations of terms and conditions
of the agreement. (5) All solicited and unsolicited projects shall be procured
in a manner prescribed in the regulations made under this Act. (6) The regulations under this section, shall among other
things, prescribe the following:
(a) inclusion of local firms and experts in consultancy
contracts;
(b) use of local goods and experts in works and non-
consultancy services;
(c) preference to local goods in process of evaluation;
(d) timeframe within which negotiation of terms and
conditions of an agreement shall commence;
(e) capacity building of local firms; and
(f) any other matter relating to empowerment of local
company and Tanzanian citizens. [s.

nt shall commence;
(e) capacity building of local firms; and
(f) any other matter relating to empowerment of local
company and Tanzanian citizens. [s.

15]
22.–(1) The private party shall undertake a feasibility study
in respect of unsolicited project proposals and submit the
feasibility study to the relevant contracting authority. (2) The feasibility study undertaken under subsection
(1) shall take into consideration technical, financial, social
environmental impact, economic or any other relevant issues
as may be required under this Act. (3) Without prejudice to the generality of subsection (2),
the feasibility study of unsolicited project proposal shall-
(a) specify the proposed project activities;
(b) prescribe environmental issues;
(c) explain the significance and benefits of the proposed
project to the Government; and
Unsolicited bids
Act No. 3 of 2014 s. 13

nvironmental issues;
(c) explain the significance and benefits of the proposed
project to the Government; and
Unsolicited bids
Act No. 3 of 2014 s. 13

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.414
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(d) explain the financial capacity and ability of the private
party in the implementation and management of the
proposed project. (4) The Minister shall make regulations prescribing
procedures for handling public private partnership project
proposals initiated through unsolicited bids under this Act. [s. 16]
23.–(1) As soon as a contracting authority initiates a project
that may be a public private partnership, the accounting officer
shall appoint a person with appropriate skills and experience,
either from within or outside the contracting authority, as a
project officer for the project. (2) The project officer shall be responsible for-
(a) assisting the accounting officer in monitoring the
performance of the private party and ensure that the
agreement is properly implemented; and
(b) any other duties or powers delegated to him by the
accounting officer under this Act. [s.

d ensure that the
agreement is properly implemented; and
(b) any other duties or powers delegated to him by the
accounting officer under this Act. [s.

17]
24.–(1) The agreements entered into under this Act shall be
signed by the accounting officer of the relevant contracting
authority after it has been considered and approved by the
Public Private Partnership Steering Committee and vetted by
the Office of the Attorney General. (2) The accounting officer shall sign an agreement upon
fully satisfying himself that the agreement has complied with
the provisions of this Act and any other relevant laws. (3) A person who contravenes any provision of this section
commits an offence. [s. 18]
25.–(1) The 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
project. Project officers
Signing of
agreements
Acts Nos. 3 of 2014 s. 14
9 of 2018 s. 12
Establishment of
special purpose
vehicle
Act No. 4 of 2023 s. 11
Cap. 212

ect officers
Signing of
agreements
Acts Nos. 3 of 2014 s. 14
9 of 2018 s. 12
Establishment of
special purpose
vehicle
Act No. 4 of 2023 s. 11
Cap. 212

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.415
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(2) A special purpose vehicle established under subsection
(1) may include a public entity as a minority shareholder
provided that the public entity shall-
(a) hold shares not exceeding 25 percent of equity
contribution in the special purpose vehicle;
(b) demonstrate financial capacity on the contribution of
equity in the special purpose vehicle; and
(c) demonstrate capacity to bear and mitigate risk
associated with the implementation of the project. [s. 18A]
26.

in the special purpose vehicle; and
(c) demonstrate capacity to bear and mitigate risk
associated with the implementation of the project. [s. 18A]
26.

The accounting officer who has entered into an agreement
shall in addition to any other responsibilities under this Act,
take all necessary and reasonable steps to ensure that-
(a) the outsourced activity is effectively and efficiently
carried out in accordance with the agreement;
(b) any public property which is placed under the control
of the private party, in terms of the agreement, is
appropriately protected against forfeiture, theft, loss,
wastage and misuse; and
(c) the contracting authority has adequate contract
management and monitoring capacity. [s. 19]
27. Subject to section 9, an agreement may be reviewed and
amended by parties if the review or amendment is consented
to by the Public Private Partnership Steering Committee and
vetted by the Attorney General. [s. 20]
28. A project undertaken in accordance with the provisions
of this Act which ought to qualify for benefits granted to
similar investment under the Tanzania Investment Act, shall
be entitled to such benefits granted under that Act. [s. 21]
29.–(1) Where the dispute arises during the implementation of
the PPP agreement, efforts shall be made to amicably settle the
dispute through negotiations.

1) Where the dispute arises during the implementation of
the PPP agreement, efforts shall be made to amicably settle the
dispute through negotiations.

Responsibilities
of accounting
officers
Amendment of
agreements
Acts Nos. 3 of 2014 s.15
9 of 2018 s. 13
Enjoyment of
benefits
Act No. 4 of 2023 s. 12
Cap. 38
Settlement of
disputes
Act No. 4 of 2023 s. 13

reements
Acts Nos. 3 of 2014 s.15
9 of 2018 s. 13
Enjoyment of
benefits
Act No. 4 of 2023 s. 12
Cap. 38
Settlement of
disputes
Act No. 4 of 2023 s. 13

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.416
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(2) A dispute which is not amicably settled through
negotiations may, by mutual agreement between the parties,
be submitted for arbitration-
(a) in accordance with arbitration laws of Tanzania;
(b) in accordance with the rules of procedure for
arbitration of the International Centre for Settlement
of Investment Disputes; or
(c) within the framework of any bilateral or multilateral
agreement on investment protection entered into by the
Government of the United Republic and the Government
of the country where the investor originates. [s. 22]
PART IV
MISCELLANEOUS PROVISIONS
30.–(1) All public private partnership projects under this
Act shall be monitored and evaluated by the Ministry, sector
Ministries, Government departments; agencies or local
Government authorities under which they are carried out.

d and evaluated by the Ministry, sector
Ministries, Government departments; agencies or local
Government authorities under which they are carried out.

(2) The purpose of monitoring and evaluation under
subsection (1) shall be to incorporate coherent oversight and
regular review mechanisms that would include:
(a) measurable performance targets;
(b) meaningful incentives and rewards; and
(c) effective penalties. (3) The Ministry, sector Ministry, department, agency
or local government authority shall, as much as practicable,
involve other relevant stakeholders for better implementation
and conduct of monitoring and evaluation. [s. 23]
31.–(1) An accounting officer shall submit to the PPP
Centre mid-year and annual performance report on the
implementation of public private partnership projects in the
manner prescribed in the regulations. Monitoring and
evaluation
Act No. 4 of 2023 s. 14
Periodic
performance
reports
Acts Nos. 9 of 2018 s. 15
4 of 2023 s. 15

rescribed in the regulations. Monitoring and
evaluation
Act No. 4 of 2023 s. 14
Periodic
performance
reports
Acts Nos. 9 of 2018 s. 15
4 of 2023 s. 15

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.417
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(2) The PPP Centre shall consolidate mid-year and annual
performance reports of contracting authorities and submit the
report to the PPP Steering Committee before being submitted
to the Minister. [s. 23A]
32.–(1) Where a member of the Public Private Partnership
Steering Committee, an officer of the PPP Centre or the
contracting authority has any pecuniary interest, direct or
indirect, in any project, proposed project or other matter, and
is involved or participating in a process at which the project,
proposed project or other matter is the subject of consideration,
he shall, as soon as practicable after the commencement of
that process, disclose that fact and shall not take part in or be
present at the consideration or discussion of, or involved in
any question relating to the project, proposed project or that
other matter.

rt in or be
present at the consideration or discussion of, or involved in
any question relating to the project, proposed project or that
other matter.

(2) Subject to this section, for the purposes of this section a
person shall be treated as having direct or indirect pecuniary
interest in a project or other matter, if-
(a) he or his nominee is a member of a company or other
body, or is the holder of shares or debentures in a
company with which the project is made or proposed
to be made or he has a direct or indirect pecuniary
interest in the project, proposed project or matter
under consideration; or
(b) he is a partner or in the employment of a person with
whom the project is made or proposed to be made
or who has a direct or indirect pecuniary interest in
the project, proposed project or other matter under
consideration. (3) In this section a direct or indirect interest of a spouse
or any members of the family of an officer of the PPP Centre
or the contracting authority shall, if known to that officer, be
deemed to be a direct or indirect interest of the officer of the
PPP Centre or the contracting authority. Conflict of
interest
Acts Nos. 3 of 2014 s. 16
9 of 2018 s. 2

rect or indirect interest of the officer of the
PPP Centre or the contracting authority. Conflict of
interest
Acts Nos. 3 of 2014 s. 16
9 of 2018 s. 2

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.418
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
(4) A person who contravenes the provision of this section,
commits an offence. [s. 24]
33. Public private partnerships agreements shall endeavour
to provide opportunity for empowerment of the citizens
of Tanzania as provided for under the National Economic
Empowerment Act. [s. 25]
34. The public private partnership project that relates to natural
wealth and resources shall take into account the provisions of
the Natural Wealth and Resources (Permanent Sovereignty)
Act and the Natural Wealth and Resources Contracts (Review
and Re-Negotiation of Unconscionable Terms) Act. [s. 25A]
35. A public officer performing any functions, discharging any
duty or exercising any power under this Act or any other written
law related to a public private partnership shall be under the
obligation to take reasonable care and exercise due diligence in
the performance of the functions and discharge of duties and
exercise of powers in accordance with the provisions of this
Act and any other relevant laws. [s. 26]
36.

of the functions and discharge of duties and
exercise of powers in accordance with the provisions of this
Act and any other relevant laws. [s. 26]
36.

A person who commits an offence under this Act to
which no specific penalty is prescribed on conviction shall
be liable to a fine not less than five million shillings and not
exceeding fifty million shillings or to imprisonment for a
term of not less than three months and not exceeding three
years or to both. [s. 27]
37.–(1) The Minister may make regulations for better carrying
out of the provisions of this Act. Empowerment of
citizens
Cap. 386
Projects relating
to natural wealth
and resources
Act No
9 of 2018 s. 16
Cap. 449
Cap. 450
Duty to take care
and exercise due
diligence
General penalty
Act No. 9 of 2018 s. 17
Regulations
Acts Nos. 3 of 2014 s. 17
9 of 2018 s. 18
4 of 2023 s. 16

to take care
and exercise due
diligence
General penalty
Act No. 9 of 2018 s. 17
Regulations
Acts Nos. 3 of 2014 s. 17
9 of 2018 s. 18
4 of 2023 s. 16

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.419
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E.

rights reserved. No part of this book may be reproduced or distributed without permission of OAG.419
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E.

2023]
(2) Without prejudice to subsection (1), the Minister may
make regulations prescribing-
(a) levying of fees and charges;
(b) PPP investment opportunities and promotion;
(c) functions of local government authorities under
this Act and clear linkages of roles between the
implementing ministries and appropriate bodies at the
local government;
(d) evaluation, operation and management of projects
under this Act;
(e) the management of, and terms and conditions for
accessing the Facilitation Fund;
(f) procedures for procurement of private parties and
matters incidental thereto;
(g) the manner in which the empowerment of citizens of
Tanzania may be implemented including provision
of goods and services by Tanzanian entrepreneurs,
training and technology transfer, employment of
Tanzanians and corporate social responsibility;
(h) process and procedure for scrutiny and analysis of
projects that require provision of Government support;
(i) the manner in which the empowerment of the citizens
of Tanzania may be implemented; and
(j) any other matter in the promotion and furtherance of
objectives of this Act.

h the empowerment of the citizens
of Tanzania may be implemented; and
(j) any other matter in the promotion and furtherance of
objectives of this Act.

(3) Notwithstanding the provisions of subsections (1)
and (2), the Minister may make rules and guidelines for the
better implementation of this Act. [s. 28]
38. Where there is any inconsistency between the provisions of
this Act and the provisions of any other written law in relation
to development, procurement and implementation of public
private partnerships, the provisions of this Act shall prevail. [s. 28A]
Inconsistency
with other laws
Act No. 4 of 2023 s. 17

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.420
THE PUBLIC PRIVATE PARTNERSHIP ACT [CAP. 103 R.E. 2023]
39. All existing agreements or memoranda of understanding
entered into by any contracting authority with the private party
before the commencement of this Act, shall not be affected by
the coming into force of this Act.
[s. 29]
Saving provisions