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Regulations No 17 of 2011

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ISSN 0856 – 034X

Supplement No. 17 3rd June, 2011


SUBSIDIARY LEGISLATION
the Gazette of the United Republic of Tanzania No. 22 Vol. 92 dated 3rd June, 2011

Printed by the Government Printer, Dar es Salaam by Order of Government

GOVERNMENT NOTICE NO. 165 published on 3 /6/2011

THE PUBLIC PRIVATE PARTNERSHIP ACT


(NO.18 OF 2010)
______

REGULATIONS
_____
(Made under section 28)
_____
THE PUBLIC PRIVATE PARTNERSHIP REGULATIONS, 2011

PART I
PRELIMINARY PROVISIONS
Citation 1. These Regulations may be cited as the Public Private
Partnership Regulations, 2011.

Application 2. These Regulations shall apply to all projects undertaken in


partnership between the public sector and the private sector.

Interpretation 3. In these Regulations unless the context otherwise requires-


Act No.18 “Act” means the Public Private Partnership Act;
of 2010
“Coordination Unit” shall have the meaning ascribed to it under the
Act;
“Coordination Committee” means a committee established under
regulation 19;
“Minister” means the Minister responsible for investment;
“public sector” shall have the meaning ascribed to it under the Act;
“partnership” means an arrangement between a contracting authority
and a private party in which the private party-

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(a) performs an institutional function on behalf of the
institution;
(b) acquires the use of public property for its commercial
purposes;
(c) assumes substantial financial, technical and operational
risks in connection with the performance of the institutional
function or use of state property; and
(d) receives a benefit for performing the institutional 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 a
local government authority, from the revenues of
such authority;
(ii) charges or fees to be collected by the private party
from users or customers of a service provided to
them; or
(iii) a combination of such consideration and such charges
or fees;
“units” means the Coordination Unit and Finance Unit;
“unsolicited proposal” means a written proposal that is submitted to
a relevant contracting authority on the initiative of the private
party for the purpose of entering into a public private
partnership agreement with the Government.
PART II
IDENTIFICATION OF PROJECTS
Projects for 4.-(1) Subject to section 4 of the Act, the Minister shall
partnership determine and publish a notice in the Gazette specifying various
projects that may be undertaken by the public sector in partnership
with the private sector for a particular period as may be specified in
the notice.
(2) After publication of specific projects under sub-regulation
(1), a public sector shall, based on the published projects, select or
identify specific project or projects which can be undertaken in
partnership for a particular year or such period as the public sector
may determine.

Pre- 5.-(1) The contracting authority shall, after identifying a project


feasibility for partnership under regulation 4, cause to be conducted a pre-
study
feasibility study in respect of the project.

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(2) The pre-feasibility study report shall be submitted to both
the Coordination Unit and the Finance Unit for approval prior to
undertaking of a feasibility study.
(3) The Coordination Unit, or as the case may be, the Finance
Unit may upon consideration of the pre-feasibility study report:
(a) approve the pre-feasibility study report and advise the
contracting authority to proceed with the feasibility study in
respect of the project; or
(b) reject the report and advise the contracting authority in
writing stating the reasons for the rejection.
(4) The pre-feasibility study report shall conform to the criteria
that:
(a) the project is in line with government priorities as per
national development plans;
(b) the project complies with the value for money requirement;
(c) the project complies with affordability requirement;
(d) the project presents a new and cost-effective methods of
service delivery;
(e) the project will address acute social needs sustainably;
(f) the private sector participation in the project will result into
net benefits and savings as compared to public
procurement;
(g) the project adheres to the Act and other relevant laws;
(h) the project includes adequate risk analysis and sharing; and
(i) it complies with other conditions relevant to the public
private partnership.

Funds for 6.-(1) The Minister responsible for Finance may establish a
feasibility Public-Private Partnership Project Development Facility with a
study
limited life span, and set conditions for contracting authorities to
access the funds from the facility.
(2) The Project development facility shall be an instrument to
enable contracting authorities to finance project preparation costs,
including financing of feasibility studies, costs of transaction
advisors and procurement of public-private partnership projects.
(3) The funds advanced from the facility to the contracting
authority may later be partly or fully recovered from the successful
tenderer.
(4) Access to funds from the project development facility shall
be subject to compliance by the contracting authority is criteria to
be prescribed by the Minister responsible for Finance.

Feasibility 7.-(1) After the approval of the pre-feasibility study under


study by regulation 5, the contracting authority shall:
Public Sector
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(a) conduct or cause to be conducted a feasibility study in
respect of each identified project; and
(b) prepare or cause to be prepared a report to that effect.
(2) The contracting authority shall, for the purpose of this
regulation, engage a consultant with knowledge and experience on
the subject matter of the project to conduct a feasibility study under
such terms and conditions as may be spelled out in the terms of
agreement.
(3) The word “cause” as used in this regulation, shall not be
construed as to allow a private party to conduct a feasibility study
on its own cost so as to enjoy privilege over other competitors.

Identification 8.-(1) The feasibility study for unsolicited project proposals


of unsolicited shall be undertaken by the private party.
proposals
(2) Before undertaking the feasibility study, the private party
shall submit a project concept to the contracting authority, and
where the approval is granted, the detailed feasibility study shall be
undertaken by the private party.
(3) Where the private party has submitted the project concept
to the contracting authority, the contracting authority shall
undertake preliminary analysis to approve or reject the project
concept and shall, in writing, respond within twenty one days.
(4) Where the contracting authority fails to approve or reject a
project concept within twenty one days it shall, in writing, give
reasons for failure to approve the project concept.

Contents of 9. The project concept shall contain:


project
concept for
unsolicited
proposals
(a) a private party’s name, postal and physical address, Tax
Identification Number and VAT registration number
where applicable;
(b) a company profile, audited accounts and evidence of
financial capacity;
(c) the title and abstract of the proposed project;
(d) a statement of the objectives, approach and scope of the
proposed project;
(e) a statement describing property rights or any confidential
information or proprietary data not to be made public;
(f) a statement describing how the proposal is innovative and
unique, supported by evidence that the proponent is the
sole provider of the innovation;

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(g) a statement of the anticipated benefits or cost advantages
to the contracting authority including the total estimated
cost for developing the project and projected cash flow to
allow a meaningful consideration;
(h) a statement showing how the proposed project supports
the Government’s development plans; and
(i) a statement to indicate compliance with other relevant
laws and government policies.

Approval of 10. The contracting authority shall select the project concepts
project based on criteria that:
concepts for
unsolicited (a) the project is in line with government priorities and
proposals adequately meets the public interests;
(b) the project complies with the value for money
requirement;
(c) the project complies with affordability requirement;
(d) the project presents a new and cost-effective methods of
service delivery;
(e) the project will address acute social needs sustainably;
(f) the private sector participation in the project will result
into net benefits and savings as compared to public
procurement;
(g) the project exclusively belongs to the private party and
there are intellectual property rights to protect;
(h) the project adheres to the Act and other relevant laws;
(i) the project includes adequate risk analysis and sharing;
and
(j) it complies with other conditions relevant to the public
private partnership.

Rejection of 11.-(1) The contracting authority may reject the project concept
project if the project concept:
concept for
unsolicited
proposals
(a) does not meet conditions set under regulation 9;
(b) relates to institutional requirements that can be
acquired by normal competitive bidding or any other
method than public private partnership;

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(c) relates to products or services which are generally
available and can be mobilized through normal
investment procedures or public procurement;
(d) does not fall under the priorities set by the
contracting authority or the Government plans; and
(e) the private party is not legally permitted to undertake
the project due to financial incapability or is not a
lawfully registered company.

(2) Where the contracting authority is satisfied that the project


concept meets the criteria stipulated in regulation 9, the contracting
authority may approve the project concept or may approve and
require the private party to avail more information or undertake
additional studies at private party’s own cost.
(3) Where the project concept is approved, the contracting
authority shall give formal recognition and the private party shall
finalise the feasibility study.

Project 12.-(1) Immediately after initiation of the project, the


officer accounting officer shall, in writing, appoint a project officer from
within or outside the contracting authority.
(2) The functions of the project officers shall be:
(a) to supervise the project;
(b) to act as a liaison officer between the accounting officer
and the private party;
(c) to inquire into anything from the private party on any
matter relating to the project;
(d) to prepare quarterly and annual reports to the accounting
officer on the development of the project; and
(e) to perform any other duty arising from the nature and size
of the project.

Contents of 13. The feasibility study report under regulation 6 shall


the feasibility contain-
study report
(a) details regarding salient features of the proposed project;
(b) explanation of the strategic and operational benefits of
the proposed project in relation to its objectives;
(c) description in specific terms -
(i) in the case of a performance of function, the nature
of the function concerned and extent to which it
may be performed by the private party;

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(ii) detailed specification of the services to be delivered;
and
(iii) in the case of use of government property,
description of the property concerned and the types
of use the property may be subjected to;

(d) in case of incurring any financial commitments by the


contracting authority, demonstration of the affordability
of the project by the contracting authority;
(e) proposals for allocation of financial, technical and
operating risks between the partners;
(f) demonstration of the anticipated value for money to be
achieved;
(g) public sector comparator test;
(h) procurement plan;
(i) recommendation or advice on the technical and economic
viability of the project or projects;
(j) description of environmental and social impact
assessments;
(k) the manner by which citizens may be empowered; and
(l) any other information that is desirable to support the
feasibility study.
Committees 14.-(1) Upon receipt of the feasibility study report under these
Regulations, the contracting authority shall appoint a committee of
experts to study the report and make recommendations or advice on
the implementation of the project.
(2) The size, procedures and terms of reference to the
committee of experts shall be as may be determined by the
contracting authority.
(3) In making recommendations for implementation of the
project, the committee shall have regard to:
(a) needs analysis including specification of outputs and
project scope;
(b) analysis of viable options;
(c) preliminary project due diligence, value for money
assessment, proof of affordability and risk sharing;
(d) profile of contracting authority’s capacity for public
private partnership project development, implementation
and management including appointment of project
officer;
(e) appointment of project team, transaction advisors and
conclusion of contract for project advisors.
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Selection of 15.-(1) Upon the recommendations and advice of the committee
the project of experts, the contracting authority may determine or select a
project or projects to be implemented in partnership with the private
sector.
Consultation 16.-(1) The contracting authority shall, after selection of a
with project under regulation 15, consult with the relevant regulatory
regulatory
authority authority under which the selected project is regulated.
(2) For the purpose of sub-regulation (1), the contracting
authority shall furnish the regulatory authority with a copy of the
feasibility study report together with the recommendations or advice
of the committee for implementation of the project.
(3) The regulatory authority may, after consideration of the
contents of the report -
(a) recommend or advice on the implementation of the
project; or
(b) specify or indicate other areas for reconsideration prior to
implementation.
Determina- 17.-(1) Upon the advice and recommendation of the regulatory
tion by the authority, the contracting authority, may finalize or confirm the
public sector
selection of the project for implementation under public private
partnership.
(2) The contracting authority shall, after the final selection of
the project for implementation under partnership, submit the
selected project to the Minister responsible for the contracting
authority for approval, notification and further directions.
PART III
RECOMMENDATION OF PROJECTS BY COORDINATION UNIT
Submission 18.-(1) The contracting authority, shall, after satisfying itself
of projects by with the selected project, submit an application to the Coordination
contracting
authority Unit for recommendation of the project.
(2) An application under sub-regulation (1) shall be in the form
prescribed in the Schedule and shall be accompanied by:
(a) a feasibility study report;
(b) brief report of the committee for the project containing
advice and recommendations;
(c) approval or recommendation by the National Environment
Management Council on the aspects of Environmental
Impact Assessment;
(d) approval or recommendation of the regulatory authority
responsible for the project;
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(e) approval of the Minister responsible for the contracting
authority; and
(f) such other information as may be required for that purpose.
Committee of 19.-(1) The Coordination Unit shall, within thirty days from the
the date of receipt of the application, process the application, and in so
Coordination
Unit doing may form a committee of experts for studying and verifying
the contents of application and for making recommendations or
advice to the Coordination Unit.
(2) The size, composition, procedures and terms of reference of the
committee shall be as may be determined by the Coordination Unit.
Considera- 20.-(1) The committee of experts shall, in consideration of the
tion by project, have regard to:
committee
(a) the feasibility study reports;
(b) evidence of the relationship between the functional
mandate and the services to be delivered by the PPP
project;
(c) proof of capacity to manage PPP projects within the
contracting authority;
(d) evidence of compliance with affordability, value for
money and risk sharing criteria;
(e) consultation with the regulatory authorities.
(2) Upon consideration of the project, the committee of
experts shall prepare a brief report on the project with
recommendations and advice to the Coordination Unit.
(3) The committee may, where it is not satisfied with the
contents of the application as submitted by the contracting authority,
recommend for reconsideration of the project by the contracting
authority.

(4) Where the committee recommends for reconsideration of


the project as per sub-regulation (3), it shall indicate areas of the
projects or application for reconsideration or rectification by the
contracting authority.

Recommenda- 21.-(1) Upon receipt of the report from the committee, the
tion by the
Coordination
Coordination Unit shall, after consideration of the recommendations
Unit and advice of the committee:
(a) recommend the project for implementation in partnership
with a private party; or
(b) where necessary, require the contracting authority in
writing to rectify specific matters of the project or to
reconsider the implementation of the project.

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(2) Where the Coordination Unit recommends the
implementation of the project under this regulation, it shall:
(a) submit the project together with its recommendations for
approval to the Finance Unit; and
(b) in writing, notify the contracting authority accordingly.
(3) The Coordination Unit shall, in submitting the project to
the Finance Unit attach particulars regarding:
(a) the title type and location of the project;
(b) the Ministry or public sector responsible for the project
(c) cost and duration of the project;
(d) the name of the project officer;
(e) its findings and recommendations on the criteria of
affordability, value for money and prevailing national
development priorities; and
(f) any other information as may be required by the Finance
Unit.

Projects to be 22.-(1) The Coordination Unit shall, after acceptance of a


kept in a project, record the particulars of the project in the register to be kept
register
by the Coordination Unit.
(2) The register for recommended projects under sub-regulation
(1) shall indicate:
(a) the title of the project and its location;
(b) the name of contracting Authority;
(c) the name and address of private party, where applicable;
(d) the duration of the project;
(e) date of commencements of the project; and
(f) such other particulars as the Coordination Unit may
determine.
(3) The Coordination Unit shall, upon consultation with the
Finance Unit and contracting authority, have power to amend and
update the register, if necessary.

PART IV
APPROVAL OF PROJECTS BY THE FINANCE UNIT

Evaluation of 23.-(1) The Finance Unit shall, upon receipt of the


approved recommended project from the Coordination Unit, evaluate the
project
project with a view to considering the fiscal risks involved, value
for money, affordability and other financial matters.

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(2) For the purpose of sub-regulation (1), the Finance Unit
shall study and consider the feasibility study for the project and all
financial implications relating to the implementation of the
project.

Committee of 24.-(1) The Finance Unit may, for the purpose of facilitating
Finance Unit the performance of its functions, form a committee of experts to:
(a) study and consider the feasibility study in respect of the
project; and
(b) make recommendations to the Finance Unit on the
financial implication risks involved and other financial
matters surrounding the implementation of the project
including-
(i) affordability of the project;
(ii) value for money;
(iii) risk sharing;
(iv) Government development priorities; and
(v) commercial viability.
(2) The size, composition, procedures, and terms of reference
of the committee shall be as may be determined by the Finance
Unit.

Consideration 25.-(1) The Committee formed pursuant to regulation 24


by Finance shall, within thirty days, determine the feasibility study, criteria for
Committee
government participation where applicable, the project and other
relevant documents and make recommendations to the Finance
Unit.
(2) The report of the finance committee shall contain:
(a) evidence on the relevance of the project to the
functional mandate of the contracting authority and that
the contracting authority has the capacity to manage
and oversee the implementation of the project;
(b) proof of compliance with the criteria of affordability
over the life cycle of the project before and after
handing over to the Government;
(c) evidence of value for money;
(d) evidence of comprehensive analysis of the full range of
risks and optimal risk sharing (which party is best
suited to contain which risk, financial consequences of
risks, and measures for risk mitigation);

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(e) evidence of commercial, technical and socio-economic
as well as environmental viability;
(f) evidence of compliance with criteria for government
participation.
(3) For the purpose of sub-regulation (2), the criteria for
government participation to any public private partnership project
shall include-
(a) government approval prior to commencement of bidding
process;
(b) compliant feasibility study;
(c) prohibition of Government support for unsolicited project
proposals;
(d) a competitive bidding process resulting to a minimum of
two compliant tenderers as a condition precedent; and
(e) any other criteria as may be prescribed in the guidelines
for public private partnership projects appraisal.

Consideration 26.-(1) The Finance Unit shall, upon receipt of report under
by the Finance regulation 25, consider the findings and recommendations of the
Unit
finance committee and make decisions on the implementation of
the project.
(2) Where the Finance Unit refuses to approve the project
under sub-regulation (1), it shall:
(a) return the feasibility study report and other attached
documents to the Coordination Unit;
(b) give reasons for refusal to approve the project; and
(c) advice as to what should be done by the the contracting
authority to rectify or remedy the situation.
Reconside- 27.-(1) The Coordination Unit shall, immediately after
ration by the receiving the returned documents from the Finance Unit under
contracting
authority regulation 26, refer the matter to the contracting authority where it
originates for reconsideration with the view to address issues as
raised by the Finance Unit.
(2) After reconsideration of the matter, the contracting
authority may resubmit the project for approval by the
Coordination Unit, and the provisions of regulation 18 regarding
submission of application for recommendation shall apply
accordingly.

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Approval by 28.-(1) The Finance Unit shall if it is satisfied with the
the Minister contents of the feasibility study and findings regarding the
responsible for
finance financial implications and other financial matters, forward the
feasibility study together with its recommendations to the Minister
responsible for finance for approval.
(2) The Minister responsible for finance shall, subject to the
provisions of the Act, and within thirty days from the date of
receipt of the documents from the Finance Unit, approve the
project for implementation under public private partnership.
(3) The Minister responsible for finance shall, where approval
is not given within the time prescribed in this regulation, within
seven days after the expiration of thirty days notify the contracting
authority through the Finance Unit stating the reasons for such
delay.

Funds for 29. Upon approval of the project by the Minister responsible
implementation for finance under regulation 28 and where the approved project
of project
requires public funds for implementation, the Minister shall, if the
public funds are available, initiate the funding process and notify
the parties through the Finance Unit.

Suspension of 30. The Minister responsible for finance may, where the
project approved projects requires public funding and such funds are not
available for that purpose-
(a) suspend the implementation of the approved project for
such period as he may determine; or
(b) in consultation with the private party, solicit for such
funds required for implementation of the project.
31. The Minister responsible for finance shall, subject to the
provisions of the Act, refer all approved projects to the contracting
authority to proceed with advertisement for tenders and
subsequent implementation.
Refusal by the 32. The Minister responsible for finance may, if he is not
Minister satisfied with the findings and recommendations of the Finance
responsible for
finance Unit, refuse to approve the project and notify the parties
accordingly and shall state the reasons for refusal.
PART V
PROCUREMENT BY CONTRACTING AUTHORITY

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Advertisement 33.–(1) The contracting authority shall, after the approval of
Cap. 410 the project by the Minister responsible for finance under
regulation 28 and subject to the provisions of the Public
Procurement Act, advertise for tenders in respect of the projects
calling upon interested parties from private sector to apply for the
tender.
(2) Selection of the successful tenderer by the contracting
authority shall be in accordance with the provisions of the Public
Procurement Act.

Qualification 34.-(1) A person who intends to tender in terms of the Act,


for tenderers shall have adequate resources or financial capacity and ability to
manage the implementation of the project he has applied for.
(2) The contracting authority shall conduct or cause to be
conducted a mandatory process of due diligence on the selected
tenderer.
(3) A person who makes an application contrary to
requirements under sub-regulation (1) commits an offence.

Role of 35. The selected tenderer shall, subject to the provisions of


selected the Act-
tenderer
(a) ensure availability of resources, technical expertise,
managerial skills and such other requirements as may
be necessary for implementation of the project; and
(b) communicate with the public sector on the progress and
any significant matter pertaining to implementation of
the project.

Procurement of 36.-(1) Subject to sub-regulation (2), the procurement process


unsolicited for unsolicited project proposals shall be conducted in accordance
proposals
Cap. 410 with regulations made under the Public Procurement Act.
(2) The contracting authority shall not conduct a procurement
process for unsolicited project proposals which:
(a) requires or would require the Government guarantee for
cash flows;
(b) provides for exclusivity clause;
(c) exclude the Government from financing the project at
initial stages; or
(d) in any way, interferes with competitive tendering.

PART VI
NEGOTIATIONS, AGREEMENT AND AWARD

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Agreement 37.-(1) The contracting authority may, for the purpose of
implementing the approved project, and subject to the provisions
of the Act, enter into a written agreement with the successful
bidder.
(2) The contracting authority shall, after approval of the
project by the Minister responsible for finance, process the
agreement with the private party for implementation of project
under partnership.

Negotiating 38.-(1) The accounting officer of a contracting authority


Team shall, for the purpose of an agreement under regulation 37, form a
multi-disciplinary negotiating team to negotiate with the private
party on the significance, terms, conditions and other issues of an
agreement.
(2) The negotiating team shall be comprised of persons with
knowledge, experience and skills on the subject matter of the
project.
(3) The negotiating team shall perform such functions as
stipulated in the Act and advise the accounting officer accordingly.
(4) The accounting officer shall, upon the advice of the
multi-disciplinary negotiating team, advise the Minister
responsible for the contracting authority on the terms of agreement
regarding the implementation of the project under public private
partnership.

Drafting of 39.-(1) Upon approval by the accounting officer and the


agreement Minister responsible for the contracting authority, the accounting
officer shall cause the agreement to be drafted in line with such
terms and conditions as agreed by the parties during negotiation.
(2) The draft agreement under sub-regulation (1) shall,
subject to the provisions of the Act, include:
(a) the name and address of the contracting authority;
(b) the name and address of the private partner;
(c) the title of the project;
(d) re-negotiation of the agreement, where necessary;
(e) effective date of the agreement;
(f) such other terms and conditions as may be preferred by
the parties.
(3) The agreement shall not be drafted in contravention of
the provisions of the Act.

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Approval of 40.-(1) The contracting authority shall forward a draft
draft agreement agreement to the Finance Unit for onward submission to the
by Finance
Unit Minister responsible for finance for approval of the proposed
terms of the agreement.
(2) Where the Finance Unit finds that:
(a) there are eminent events outside the control of the
partners, which may intervene with the execution of the
project;
(b) there are construction and operational risks which may
cause the project to be delayed;
(c) there are commercial and financial risks which affect
the viability of the project;
(d) other risks which may cause loss to the Government,
it may refuse to approve the draft agreement or specify measures
to address such events and mitigate such risks.
Submission of 41. The contracting authority shall avail a copy of the draft
a copy of the agreement to the Attorney General.
agreement to
Attorney
General
Vetting of the 42.-(1) The contracting authority shall submit the draft
agreement agreement as approved by the Minister responsible for finance and
agreed by both parties to the Attorney General for vetting.
(2) The draft agreement submitted to the Attorney General
under sub-regulation (1) shall be accompanied by such other
documents as relating to the project or contracting parties as may
be necessary for clarity during vetting.
(3) The Attorney General shall, in vetting the draft
agreement, have regard to:
(a) the legality of the project;
(b) approvals by the Coordination Unit, Finance Unit and
the Minister responsible for finance;
(c) compliance with the existing laws;
(d) attachments to the agreement as prescribed by sub-
regulation (2);
(e) anything which may have an impact on the agreement.
(4) The Attorney General shall, after consideration of the
draft contract or agreement and any other attached documents,
provide a legal opinion on the draft contract and return the draft to
the contracting authority for final determination.
Approval and 43.-(1) The contracting authority shall, after receiving the
finalization of opinion of the Attorney General on the draft contract, consider the
contract
opinion and prepare the final draft of the agreement.

16
(2) Where the opinion of the Attorney General have an
impact on the terms and conditions of the draft agreement as
agreed by the parties, the contracting authority shall immediately
notify the private party on the new terms or consideration of new
terms.
(3) Upon agreement by both parties, a final draft of the
agreement shall be prepared for signature by the parties.

Signing of 44.-(1) The accounting officer shall, upon being satisfied with
agreement the contents of the agreement, sign the agreement on behalf of the
contracting authority.
(2) After the signing of the agreement, the contracting
authority together with the private party shall commence the
process for implementation of the project.

Copies of 45.–(1) Upon signing of the agreement, the Accounting


agreement Officer shall, forward copies of the agreement to the Finance Unit
and to the Coordination Unit for record keeping and monitoring of
implementation of the project.
(2) Copies of the agreement shall be recorded and entered in
the register maintained and prepared for such purpose.

Implementation 46.-(1) After the signing of the agreement and


of projects commencement of the project, the accounting officer of the
contracting authority shall ensure that the agreement is properly
implemented, managed, enforced, monitored and reported on from
its inception up to the expiry or its termination.
(2) Without prejudice to sub-regulation (1), the accounting
officer shall maintain a mechanism or procedures for:
(a) measuring the outputs of the project under the
agreement;
(b) monitoring the implementation of, and performance of
the project under the agreement;
(c) liasing with the private party;
(d) resolving disputes and differences with the private
party;
(e) generally overseeing the day to day management of the
project;
(f) reviewing of costing and tariffs in view of the long
lifetime involved for the project; and
(g) preparation of annual report or any other report over the
project at any time, if circumstances dictate.

17
(3) The accounting officer shall be responsible for the
service delivery through the project facilities as if the facilities
were being managed and operated directly by the Government,
and in so doing shall ensure-
(a) maintenance of the facilities developed by the project
on regular basis;
(b) service delivery is at an acceptable level in terms of
quality and reliability;
(c) regular and annual performance reports are submitted
to the Government and Parliament;
(d) the facilities are subjected to regular accounting and
auditing;
(e) technology transfer and training of counterpart
management to take over the management of the
facility; and
(f) smooth transfer of assets.
PART VII
TERMINATION OF PROJECTS
Termination of 47.-(1) The contracting authority shall have a right to
the project terminate the project due to:
(a) inefficient implementation of the project by the private
party;
(b) failure to meet the deadline set for the project by the
private party;
(c) unforeseen events, beyond control of the private party;
(d) breach of agreement by the private party;
(e) non performance of the private party in service delivery
as per agreement; or
(f) force majeure:
Provided that, where the project is terminated under sub-regulation
(1)(c) and the private party suffers loss, he shall fairly be
compensated.
(2) Where the project is terminated for the failure of the
private party to meet its obligations set under the agreement, the
private party shall, after the expiration of thirty days from the day
of notification, compensate the contracting authority for damages
or losses suffered.
(3) Upon termination of the project for reasons other than
unforeseen events, the contracting authority may, in pursuance of
the Act and these Regulations, engage another party.

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48.-(1) The private party shall have a right to terminate the
project if the contracting authority fails to fulfil its commitment set
under the agreement.
(2) Before the project is terminated for the failure of the
contracting authority to fulfil its commitment set under the
agreement, the contracting authority shall, within thirty days, be
required to remedy the inefficiencies.
(3) Where the contracting authority fails to remedy the
inefficiencies under sub-regulation (2) within the prescribe period,
the contracting authority shall compensate the private party for the
damages or losses suffered.

PART VIII
GENERAL PROVISIONS

Monitoring and 49.-(1) Every public private partnership project shall be


evaluation monitored and evaluated by the contracting authority to ensure
that the project is implemented in accordance with the agreement.
(2) The contracting authority shall, in collaboration with
the private party, prepare a monitoring and evaluation framework
which shall be comprised of:
(a) project Management Plan;
(b) performance criteria;
(c) external audit and reporting requirements;
(d) submission of progress reports;
(e) verification of project assets and value; and
(f) stakeholders communications.

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_____

SCHEDULE
______

(Made under regulation 18(2))


PPPA FORM 1

THE UNITED REPUBLIC OF TANZANIA


_______

APPLICATION FOR APPROVAL OF PROJECT

1. Name of Applicant ……………………………………………………………………..…..


2. Title of Company …………………………………………………………….…………….
3. Physical Address ……………………………………………………………………..….....
4. Registration No. ……………………………………………………………………………
5. Title of Project ……………………………………………………………………………..
6. Location of the Project …………………………………………………………………….
7. Nature of the Project ………………………………………………………………………
8. Cost of the Project………………………………………………………………………….
9. Duration of the Project …………………………………………………………………….
10. Name of Transaction Officer ………………………………………………………………
11. Name of the Project Officer ………………………………………………………………..
12. Ministry responsible for the project………………………………………………………..
FOR OFFICIAL USE ONLY
13. Determination: (a) Approved ……………………………………………………………..
(b) Disapproved …………………………………………………………..
due to/pending on
……………………………………………………
……………………………………………………
……………………………………………………
NAME: ……………………………………………………………………………………

TITLE: ………………………...………………………………………………………….

SIGNATURE: ……………………………………………………………………………………

DATE: ……………………………………………………………………………………

Dar es Salaam, HON. MIZENGO P. PINDA (MP),


…….……., 2011 Prime Minister

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JC/I.60/10/14 20 June 2011

Permanent Secretary,
Office of Prime Minister,
DAR ES SALAAM.

RE: PUBLIC PRIVATE PARTNERSHIP REGULATIONS, 2011


________________

The heading above refers.

Please refer to your letter with Ref. No. EA. 296/349/01 dated 23rd May,
2011.

Attached herewith are the afore mentioned Regulations for your perusals
and the Hon. Minister’s signature. Kindly, after the signing of the Regulations by
the Hon. Minister, the original and one copy should be returned to our Office for
publication purposes.

In fostering our cooperation.

S.A. Nzori
For: DEPUTY ATTORNEY GENERAL

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