Tanzania: Stake holders share feedback on WB contractual provisions for PPP

Dar es Salaam. Stakeholders from the public and private sectors have gathered to share their feedback on the proposed 2019 edition of the World Bank’s Contractual Provisions for Public-private Partnerships (PPPs).

The consultative meeting held today in Dar es Salaam, included 50 participants from banks, pension funds and law firms, as well as Public-private partnerships units, ministries, departments and Local Government authorities.

According to the World Bank today’s meeting aims at capturing inputs and recommendations by all relevant stakeholders to help inform the updated version of the formal 2017 edition, which is expected to be released in mid-2019.

“The guidance offers great learning material for legal and other PPP practitioners both from the public and private sector. Use of this document will increase confidence in PPPs and avoid disputes during their implementation,” said Christina Paul, a senior counsel for the World Bank.

Participants shared their experience with the previous PPPs and learned how to strengthen areas where they are still facing challenges.

In 2017, World Bank developed the Guidance on PPP Contractual Provisions which focused on eight critical contractual areas that are most essential for a project’s bankability and are found in virtually every PPP contract.

The aim of the guidance was to assist contracting authorities in developing and emerging markets to prepare PPP contract clauses in line with international good practice and standards.

The proposed 2019 guidance will take in account of all the recommendations and stakeholders inputs.

She said the proposed PPP guidance explains how governments can protect their rights while ensuring the reasonable rights of their private partners.

“This guidance note is meant to help governments prepare PPPs that deliver much-needed infrastructure and public services,” she added.

The Government of Tanzania is currently working on developing model documents for small, low-risk PPPs. The model documents have been developed with the World Bank’s assistance through the Tanzania PPP Support Program funded by the United Kingdom’s Department of International Development.

According to the World Bank Group’s 2018 Procuring Infrastructure PPPs Report, 52 out of 135 surveyed countries developed at least one model contract and/or standardised document applicable to PPP transactions.