Company Setup

Public Private Partnership Tanzania: the PPP Act, Bids and Approvals

Cover: public private partnership Tanzania, the PPP Act Cap. 103, the PPP Centre and the Steering Committee approvals
How investors and companies enter a Mainland PPP under Cap. 103 and the 2023 amendments, and how Zanzibar's separate PPP law differs.
Direct answer

How does a company win a public private partnership project in Tanzania? On the Mainland, a PPP runs under the Public Private Partnership Act, Cap. 103, as amended by Act No. 4 of 2023. Most projects are tendered competitively through a contracting authority, checked by the PPP Centre and approved by the PPP Steering Committee. Unsolicited proposals pay a review fee first. The winner must form a Tanzanian SPV before signing.

A public private partnership in Tanzania is a long-term contract in which a private company finances, builds or operates a public asset or service, and is paid by users, by government, or both. It has its own Act, its own PPP Centre, its own approval committee and its own fees.

This guide covers Mainland Tanzania under Cap. 103 and the 2023 reforms, then Zanzibar, which has a separate PPP law and agency.

What the law says

The Mainland framework has four layers, published by the Ministry of Finance.

The amendment Act adds section 28A. Where Cap. 103 conflicts with another written law on PPP development, procurement or implementation, Cap. 103 prevails.

FB Attorneys' legal update of 24 July 2023 records the passage, assent and Gazette dates. Clyde & Co's note of 10 June 2024 summarises the 2023 Regulations changes.

Who is affected

A supplier who wants to sell goods or services to government without investing capital is in the ordinary procurement system instead. Our guide to registering as a government supplier with PPRA and NeST covers that route.

How is a PPP different from an ordinary government tender?

A normal tender buys works, goods or services for a price. A PPP transfers financing, construction or operating risk to the private party for many years. Section 3 of Cap. 103 describes a PPP in terms of charges or fees collected by the private party from users or customers.

The two systems overlap. The Public Procurement Act, 2023 (Act No. 10 of 2023) says in section 2(1)(c) that it applies to public private partnership projects in their relevant stages. PPRA announced that the Act would take effect on 17 June 2024 and requires the NeST e-procurement system. Cap. 103 section 28A then gives the PPP Act priority on any conflict.

PointPublic private partnershipOrdinary public procurement
Main lawPPP Act, Cap. 103, as amended by Act No. 4 of 2023Public Procurement Act, 2023
Lead bodyPPP Centre, with the PPP Steering Committee approvingPPRA as regulator; tender boards of each procuring entity
Who paysUsers, government, or both, over the contract lifeGovernment pays the contract price
Private capitalRequired, usually through an SPVNot required
Contract lengthLong term, set in the PPP agreement (s.13)Usually the delivery period
Private-led proposalsAllowed as unsolicited proposals, with a review feeNo equivalent
Legal vettingAttorney General opinion on every PPP agreement (s.14)As the procurement rules require

For contract bids, read our post on tenders and procurement in Tanzania.

What does the PPP Centre do?

Section 4 of Cap. 103 establishes the Public Private Partnerships Centre as the technical gatekeeper.

The 2023 amendment fixed review times. Under the new section 5(2), the Centre analyses prefeasibility studies, requests for proposals, bid evaluation reports and PPP agreements within 30 working days of receipt. Under new section 4(6B), it analyses prefeasibility studies forwarded by the Minister within 21 working days.

The Centre sits in Government City, Mtumba, Dodoma, and publishes calls for expressions of interest and PPP tenders on its site. Under the amended Regulations, the Centre keeps the PPP project register, prepares procurement guidelines in consultation with PPRA, and keeps a list of prequalified PPP experts.

Who approves a PPP project?

Under section 7, the Committee is chaired by a Permanent Secretary and includes the Deputy Attorney General, the TRA Commissioner General and two private sector members. Section 7A(2) gives it 21 working days to act on the PPP Centre's recommendations. Section 18 makes it an offence for an accounting officer to sign before Committee approval and Attorney General vetting.

Strategic projects can follow a different path. The new section 2(2) says the Act does not prejudice a special arrangement for a strategic project approved by Cabinet, after vetting by the Attorney General. Bowmans' commentary on the amendments links that clause to the East African Crude Oil Pipeline.

How does a solicited PPP move from idea to contract?

Most PPPs are solicited: the public body starts the process. Section 15(1) says all PPP projects shall be procured through an open and competitive bidding process.

  1. Each budget cycle, the contracting authority submits prefeasibility studies to the Minister (new s.4(6)).
  2. The Minister forwards approved studies to the PPP Centre within 7 working days (new s.4(6A)).
  3. The Centre analyses them within 21 working days and notifies the Steering Committee (new s.4(6B)).
  4. The authority prepares a full feasibility study under section 10. It must show affordability, value for money and appropriate risk transfer.
  5. The Committee approves the study, and the authority issues the request for proposals.
  6. Bids are evaluated, and the preferred and reserve bidders go to the Centre and then the Committee (reg. 58).
  7. The authority notifies bidders within 14 working days of Committee approval (reg. 58).
  8. The agreement is negotiated, vetted by the Attorney General and signed.

Under section 10(6), where an environmental impact assessment is required, the private party must hold the certificate before work starts. Our post on when an EIA is required in Tanzania explains that process.

The 2023 amendment also lets the Minister exempt a solicited project from competitive bidding, on the Committee's recommendation. The project must meet the section 15(2) criteria and one of three conditions: unforeseeable urgency, the private party's ownership of key intellectual property, or exclusive rights with no reasonable alternative.

How do unsolicited proposals work?

An unsolicited, or privately initiated, proposal starts with the company. Section 15(2) lists criteria for exempting an unsolicited project from competition. They include:

Section 16 makes the proponent prepare the feasibility study and submit it to the contracting authority. It must cover technical, financial, social, environmental and economic issues, and show the proponent's financial capacity.

The amended Regulations add more. Regulation 11 now requires a statement of innovation, disclosure of who owns the intellectual property, the proponent's financial and technical capacity, its track record, its litigation history and a climate statement. Regulation 12 assesses the prefeasibility study on five criteria. One of them is commercial viability with no need for viability gap funding.

Once an unsolicited project is exempted, the new section 15(4) starts negotiations. If not, it is tendered and the proponent competes with other bidders.

Older guides mention a refundable commitment deposit of up to 3% of project cost. That deposit was in section 15(3) of the 2019 text and regulation 8. The 2023 amendment Act replaced section 15(3), and Clyde & Co report that the regulation 8 deposit was deleted. Confirm the current position with the PPP Centre before you budget for it.

What fees does a PPP bidder or proponent pay?

The Zatra government fee register has no PPP line. The figures below come from the amended Regulations text and are flagged as not in the register. The procurement fees for contrast come from the register.

ChargeAmountSource
Review fee for an unsolicited proposal0.1% of estimated project cost or USD 50,000, whichever is lower; paid into the PPP Facilitation Fund before reviewReg. 9(1), as replaced by GN 838A of 2023 (not in the register)
Project preparation feePaid by the private party into the Facilitation Fund; mode and amount set in the request for proposals; Minister may waive all or partReg. 33N, GN 838A of 2023 (not in the register)
PPRA NeST tenderer registration, for ordinary tendersTZS 100,000 a yearRegister F0174
NeST tender participation, for ordinary tendersTZS 30,000 national; TZS 500,000 internationalRegister F0175
NeST contract monitoring fee, by contract valueNil up to TZS 10m, rising to TZS 10,000,000 over TZS 60bnRegister NEW-01-49

Whether NeST fees apply to a PPP tender depends on the request for proposals. Government charges are paid at the official rate against the authority's control number. They are separate from Zatra's professional fee and from any advocate's fee.

What is the PPP Facilitation Fund?

Section 10A establishes the Public Private Partnership Facilitation Fund. The PPP Centre holds its account, the Executive Director is its accounting officer, and any use needs Steering Committee approval.

Section 10B lists its sources: money appropriated by Parliament, development partners, public entities, social security funds and recovered advances. It funds feasibility studies and project preparation, and supports projects with high economic benefit but limited financial viability.

The 2023 Regulations rewrote Part V of the Regulations. The Fund now has three sub-accounts at the Bank of Tanzania: project development, capacity development and viability gap funding. Regulations 33B and 33C allow viability gap funding for projects that are bankable and offer value for money but are not financially viable alone. Unsolicited proposals cannot rely on it.

Review and preparation fees go into the Fund. Preparation costs may be recoverable from the winning bidder, and regulation 32 says recoverable amounts must be disclosed before procurement starts.

Why must the winner form an SPV, and who can own it?

The new section 18A requires the private party to incorporate a special purpose vehicle under the Companies Act, Cap. 212, before signing the PPP agreement. Regulation 61A repeats the rule.

The SPV is incorporated with BRELA, and foreign sponsors usually register as investors with TISEZA. Our guides on foreign company registration in Tanzania and joint venture shareholders' agreements cover the corporate side.

Do local firms and citizens have to be included?

Yes, in several ways. Section 15(6) requires the Regulations to provide for local firms and experts in consultancy contracts, local goods in works, preference for local goods in evaluation, and capacity building for local firms. Section 25 says PPP agreements shall endeavour to create opportunities for Tanzanian citizens under the National Economic Empowerment Act.

The 2023 Regulations tightened the definition of a local firm. It must be incorporated or registered in Mainland Tanzania, with at least 51% of its shares held by citizens or Tanzanians. Section 25A adds that projects involving natural wealth and resources must take account of the two 2017 natural wealth Acts. Our guide to local content rules across sector regulators shows how this works in practice.

Who sets tariffs, and are guarantees available?

The PPP agreement sets the payment model: user tariffs, government payments, or a mix. Where a sector regulator controls prices, its rules also apply.

Guarantees are a government decision. Section 7B sends any request for public funding or other government support to the Minister. The Minister deals with funding requests under the Government Loans, Guarantees and Grants Act within 21 working days. The 2023 amendment defines public funding as government financial support that is a fiscal commitment or contingent liability.

The amended Regulations define a fiscal commitment to include minimum revenue guarantees, demand guarantees and letters of support or payment guarantees. A project that needs a guarantee does not qualify for the unsolicited exemption under section 15(2).

How are PPP disputes resolved?

The 2023 amendment replaced section 22. Disputes during implementation must first be settled amicably through negotiation. If that fails, the parties may, by mutual agreement, go to arbitration under:

Before 2023, section 22 kept disputes within Tanzanian law. International arbitration now needs both sides' agreement, so negotiate the clause at contract stage. Our post on arbitration or litigation for commercial contracts sets out the domestic options. Any dispute, legal opinion or court step goes to an advocate.

The amendment also changed section 21. Qualifying PPP projects are entitled to the benefits available under the investment law, and the 2019 bar on tax incentives was deleted. That investment law is now administered by TISEZA. See our guide to the Investment and Special Economic Zones Act, 2025.

Which PPP projects are in the pipeline now?

The PPP Centre's PPP projects list page carries dated pipeline reports. The latest is the Tanzania PPP Projects Pipeline, September 2026, dated 30 September 2026. It lists 131 Mainland projects.

Stage at 30 September 2026ProjectsExamples named by the PPP Centre
Implementation10DART bus services, TAZARA rehabilitation and operation, motor vehicle inspection centres
Contract negotiations3Commercial complex and four-star hotel at JNIA, deep sea fishing vessel operation
Procurement3Kibaha to Chalinze and Chalinze to Morogoro road lots, CBE student hostel
Feasibility study14Listed in the report
Pre-feasibility study50Listed in the report
Concept note51Listed in the report
Total131

The two expressway lots carry USD 326 million and USD 350 million of capital cost. TanzaniaInvest reported on 2 November 2026 that the Centre's newsletter counted 129 projects as at July 2026. Use the latest dated report and the Centre's tenders page for live calls.

Worked example: a USD 120 million unsolicited proposal

A foreign logistics group and a Tanzanian partner propose a USD 120 million inland container depot to a public agency. The figures are illustrative.

StepComputationAmount
Estimated project costFrom the prefeasibility studyUSD 120,000,000
0.1% of project cost120,000,000 × 0.1%USD 120,000
Review fee payableLower of USD 120,000 and USD 50,000USD 50,000
SPV equity, if sponsors fund 30%120,000,000 × 30%USD 36,000,000
Maximum public stake in the SPV36,000,000 × 25%USD 9,000,000
Minimum private equity if the agency takes 25%36,000,000 less 9,000,000USD 27,000,000

For a USD 30 million project, the review fee is USD 30,000, below the cap. If the group asks for a minimum revenue guarantee, the project no longer meets the section 15(2) test. It would then go to competitive tender, and the group would bid against others.

The fee buys a review, not an approval. Budget separately for the feasibility study, which the proponent pays, and for the EIA.

How does PPP work in Zanzibar?

Cap. 103 does not apply in Zanzibar. Zanzibar has its own law: the Public Private Partnership Act, No. 8 of 2015, listed among the 2015 Acts of the Zanzibar House of Representatives. The Zanzibar PPP Department coordinates projects. It sits in the President's Office responsible for labour, economic affairs and investment, and refers to a 2014 PPP policy and 2017 regulations.

The Zanzibar Act was amended by the Written Laws (Miscellaneous Amendments) Act, No. 1 of 2021, as reproduced on FAOLEX. That text shows these rules for unsolicited proposals:

PointMainlandZanzibar
LawPPP Act, Cap. 103, as amended in 2023PPP Act No. 8 of 2015, as amended in 2021
AgencyPPP Centre, Ministry of FinancePPP Department, President's Office
Approval of unsolicited projectsMinister, on Steering Committee recommendationRevolutionary Council, on the Government Negotiation Team's recommendation (s.44(10))
Commitment depositRemoved from the Regulations in 2023; confirmRefundable, up to 3% of estimated cost (s.44(7))
Exemption from tenderSection 15(2) criteriaSection 44A criteria
Project fundPPP Facilitation Fund (s.10A)Project Development Fund in the PPP Ministry (s.20)

Under section 44B, a proponent that misses the criteria may revise within 30 days, at most twice. We could not verify the Zanzibar dispute resolution clause, the review fee, if any, or the current regulations against the Gazette. Treat those as open points. ZIPA handles investor registration in Zanzibar; see our post on ZIPA investment incentives.

What to do now

  1. Pick the route. Decide whether you are bidding on a tendered PPP, proposing an unsolicited one, or selling to government under the procurement law.
  2. Read the pipeline. Check the latest PPP Centre pipeline report and tenders page.
  3. Test the criteria. For an unsolicited idea, check every section 15(2) criterion, especially no guarantee and no viability gap funding.
  4. Build the prefeasibility file. Cover the regulation 11 contents: innovation, intellectual property, capacity, track record, litigation history and climate.
  5. Budget the fees. Compute the review fee at 0.1% capped at USD 50,000, and ask about any preparation fee in the request for proposals.
  6. Plan the SPV. Agree the shareholding, any public stake up to 25%, and the local partner, then incorporate before signing.
  7. Negotiate the key terms. Settle tariffs, support, termination and the arbitration route with an advocate before the agreement goes for vetting.

Key dates

Event or limitDate or timeSource
Zanzibar PPP ActAct No. 8 of 2015Zanzibar House of Representatives
PPP (Amendment) Act passed; published13 June 2023; 14 July 2023Act No. 4 of 2023; FB Attorneys
PPP (Amendment) Regulations published16 November 2023GN 838A of 2023
Public Procurement Act, 2023 in force17 June 2024PPRA
Latest PPP pipeline report30 September 2026PPP Centre
Minister forwards prefeasibility study to the Centre7 working daysCap. 103 s.4(6A)
Centre analyses prefeasibility study21 working daysCap. 103 s.4(6B)
Centre analyses RFP, evaluation report or agreement30 working daysCap. 103 s.5(2)
Steering Committee acts on the Centre's recommendation21 working daysCap. 103 s.7A(2)
Agreement highlights published after signing30 daysReg. 127A

How Zatra helps

Zatra screens PPP opportunities, tests unsolicited ideas against the statutory criteria and prepares the prefeasibility and financial model. Our investment advisory service runs the file from the first concept to financial close. Our feasibility study team builds the value-for-money case. For ordinary bids, our tender and procurement advisory covers PPRA and NeST.

The PPP agreement, legal opinions, disputes, arbitration and any court or enforcement step go to an advocate, who represents you. Zatra prepares the commercial file and coordinates. Zatra does not decide or guarantee any authority's outcome.

Government fees are paid at the official rate against the authority's control number. They are separate from Zatra's professional fee, which we quote in writing before work starts. To begin, contact Zatra with a one-page project summary.

Sources and status

Accurate as at 11 November 2026.

Figures to confirm before you act

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.

Frequently asked questions

Can a foreign company bid for a PPP in Tanzania?

Yes. Foreign companies bid alone or in consortium, usually with a Tanzanian partner. Before signing, the winner must form an SPV under the Companies Act. Evaluation can favour local firms and goods, so a credible local partner often strengthens the bid.

Is the USD 50,000 review fee refundable if the proposal is rejected?

The amended regulation 9(1) says the fee is paid into the PPP Facilitation Fund before review. The text we read does not provide for a refund. Treat it as a sunk cost and confirm with the PPP Centre before paying.

Can a local government authority run a PPP?

Yes. Councils are contracting authorities. The amended Regulations route their prefeasibility studies and bidder selections through a PPP Node and the responsible ministry before they reach the PPP Centre. Mbeya City Council took part in PPP Centre market sounding in November 2026.

Does the PPP Act stop the government from changing the contract later?

Section 20 deals with amendment of agreements, and the Steering Committee must approve amendments. Changes need the consent of both parties under the agreement. Protect yourself with clear change-in-law, compensation and termination clauses drafted by an advocate.

How long can a PPP contract run?

The Act leaves duration to the agreement. Section 13 allows an extension only for delays beyond the parties' control, cost increases caused by the contracting authority, or a continuing need the authority cannot yet meet itself.

Must the PPP agreement be made public?

Partly. New regulation 127A requires the contracting authority to publish the main highlights within 30 days of signing. These include the parties, PPP type, financial obligations of both sides, service levels, duration and contact persons, in a local newspaper and on the PPP website.

Does a PPP project get investment incentives?

Qualifying projects are entitled to investment law benefits under section 21 of Cap. 103. The 2023 amendment removed the earlier exclusion of tax incentives. Each incentive still depends on the investment and tax laws, so confirm eligibility with TISEZA and TRA.

Is a Zanzibar PPP approved in Dodoma?

No. Zanzibar projects run under the Zanzibar PPP Act No. 8 of 2015 and its own PPP Department. The 2021 amendments give the Revolutionary Council approval of unsolicited projects. Union matters such as income tax still involve Union bodies.

Sources & regulators

Verify before filing: Rates, forms and thresholds move by Finance Act, Government Notice and portal revision. Confirm the live schedule on the mandate-holder portal before you budget or submit. Law-firm alerts and Big Four notes are discovery only.

Brief the desk

This Insights page is orientation. Investment Advisory in Tanzania is the commercial desk for the same facts. Zatra’s fee stays on its own line, separate from government, bank and regulator charges. Approvals are not guaranteed.

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Disclaimer

This article is informational orientation. It is not legal, tax or investment advice and not a government decision. Tanzanian instruments move by Act, Government Notice, Finance Act and portal revision. If a sentence here disagrees with the live mandate-holder, the mandate-holder wins. Zatra Consultants Limited does not issue licences, permits, tax clearances or approvals, and gives no assurance of any regulatory or banking outcome. Professional fees are published only on /pricing/.

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