The TAZARA concession places a railway at the head of Tanzania's PPP projects in execution, and the Dar es Salaam Metro Rail keeps urban rail in the preparation pipeline. Both sit within a development plan that expects about 70% of infrastructure investment over the next five years to come from private capital.
The PPPC's stated priority is moving projects from preparation to financial close and construction. How quickly the rail projects make that transition could indicate whether the institutional reforms are shortening the path from pipeline to delivery.
- Tanzania's Public-Private Partnership Centre has named the US$1.4 billion TAZARA rehabilitation and operation concession as the largest single project in its programme to reach the contracting and execution stages.
- The TAZARA railway concession is held by CCECC for 32 years.
- The US$2.5 billion Dar es Salaam Metro Rail, covering the Posta-Tegeta line, is undergoing revised feasibility studies with a US$12.5 million preparation allocation.
- Tanzania reached financial close on two PPP projects in 2024, securing US$187 million in private investment.
- The Fourth Five-Year Development Plan expects about 70% of TSh477 trillion in infrastructure investment needs to come from private capital.
- The PPP Act provides viability gap funding, state, minimum revenue and payment guarantees, and letters of support.
The US$1.4 billion rehabilitation and operation of the Tanzania-Zambia Railway Authority (TAZARA) railway, under a 32-year concession with CCECC, is the largest single project Tanzania has taken to the contracting and execution stages under its public-private partnership (PPP) programme, according to the country's Public-Private Partnership Centre (PPPC).
PPPC Executive Director Kafulila set out the portfolio during a work visit involving Cabinet ministers, themed "Implementation of Public-Private Partnership (PPP) Programmes", as Tanzania moves to remove institutional bottlenecks, streamline approvals and accelerate the implementation of PPP infrastructure projects.
Rail also features in the preparation pipeline. The US$2.5 billion Dar es Salaam Metro Rail, covering the Posta-Tegeta line, is undergoing revised feasibility studies supported by a US$12.5 million preparation allocation, Kafulila said.
The wider PPP portfolio spans energy, roads, railways, water, aviation and urban development at different stages, using models including Build-Operate-Transfer, Rehabilitate-Operate-Transfer and Operation and Maintenance. Kafulila said Tanzania reached financial close on two projects in 2024, securing US$187 million in private investment.
The largest project in preparation is the US$5 billion Lake Victoria-Dodoma Bulk Water Pipeline, at pre-feasibility stage with a US$25 million preparation budget. The road pipeline includes the 78.9km Kibaha-Mlandizi-Chalinze Expressway (Lot 1), with estimated capital expenditure of US$326 million, and the 84.9km Chalinze-Morogoro Expressway (Lot 2), valued at US$350 million, both under 25-year concessions.
Among other projects that have reached contracting and execution, Tanzania Police Corp Sole has contracted VIGOR, SAMA and APPLUS under a 20-year, US$116 million agreement to establish nine Motor Vehicle Inspection Centres, while the Tanzania Buildings Agency (TBA) and GALCO are involved in an US$18 million Modern Logistics Hub Development under a 30-year contract.
The programme sits within development plans that lean increasingly on private finance. The Third Five-Year Development Plan (FYDP III), covering 2021/22 to 2025/26, identified an infrastructure investment requirement of TSh114.9 trillion, including TSh40.6 trillion expected from the private sector and TSh21.03 trillion through PPPs. The Fourth Five-Year Development Plan (FYDP IV), covering 2026/27 to 2030/31, sets total infrastructure investment needs at TSh477 trillion, of which about 70%, or TSh334 trillion, is expected to come from private capital.
The PPP Act (Cap 103 R.E. 2023) provides viability gap funding for economically important projects requiring financial support, state guarantees, minimum revenue guarantees, payment guarantees and letters of support. Qualifying projects receive tax and non-tax incentives comparable to those available under the Tanzania Investment Act, and the law provides contractual protections and dispute-resolution mechanisms, including recourse to local courts and international arbitration.
Project development is supported by the PPP Facilitation Fund (PPPFF), established under Section 14 of the PPP Act and managed by the PPPC. Kafulila said its resources come from parliamentary appropriations, development partners and reimbursed project preparation costs paid by successful private developers after commercial close.
He said the immediate priority was to turn the pipeline into financial closes and construction. "Our immediate strategic imperative is to translate this well-structured project pipeline into completed financial closes and active, on-the-ground infrastructure construction," he said.
"By approving dedicated preparation funding, streamlining decision-making mandates, and holding institutional leaders accountable through mandatory KPIs, we will unlock billions of dollars in private capital, achieve our FYDP IV objectives, and build a solid foundation toward a $1 trillion economy by 2050," Kafulila added.
