PUBLIC Private Partnership (PPP) implementation needs thorough preparations to enable the nation benefit fully from the initiative, Policy Research for Development (REPOA) Executive Director, Prof Samwel Wangwe, has advised.
Addressing journalists in Dar es Salaam on Friday, Prof Wangwe noted that if such preparations would not be taken into account, then PPP goals' realisation would be a dream.
A study jointly conducted by Prof Wangwe, Godwill Wanga and Johansein Rutaiwa on PPP and implications for Tanzania has found out that it was necessary for the country to examine international and recent experiences to make the initiative more viable.
He said that national development policies recognise the large potential of PPP and expectations were high, however, a number of cautions and deeper knowledge of what it takes to realise the potential from the initiative contribution in Tanzania was still inadequate.
According to Prof Wangwe, some of the things that must be put in place to make PPP more successful include putting in place operational guidelines and procedures to ensure that PPP is technically, financially, economically and socially viable. He added that the government must also ensure that appropriate instruments to enable private sector to mobilise resources for development of PPPs are put in place.
"Risk sharing framework in PPPs investments to ensure that risks are assigned to the party must be suited to manage them and the risk allocation is cost-efficient and optimal.
This is also very significant in realizing PPPs goals," he noted. Speaking on the lessons drawn from international experience and own past experience, Prof Wangwe noted that capacity of the government was essential in terms of human capacity especially technical managerial capacity and ability to negotiate and manage contracts.
He noted that the experience also suggested that legal and regulatory framework must provide for comprehensiveness with simplicity in application and facilitating investments which are under competitive and transparent procurement and providing for public scrutiny and accountability.
He also underscored the need of educating the general public on the significance of PPPs which is now believed to be the greatest actor for socio-economic development.
"If these are properly taken into consideration, then PPP can be successfully used to promote private sector development of the domestic private sector and to enhance economic empowerment through joint ventures, sub-contracting and through facilitating the acquisition of shares in the capital market," he explained
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