PUBLIC PRIVATE PARTNERSHIP (PPP)
PROGRAMME REPORT
Resource Mobilisation Programme Report
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1. Introduction
Public Private Partnership lab is a part of resources mobilization lab that designed for the
purpose of mobilizing resources for the implementation of the identified potential projects and
programs that will stimulate economic growth in Zanzibar. Public Private Partnership (PPP)
refers to arrangements, typically medium to long term, between the public and private sectors
whereby some of the services that fall under the responsibilities of the public sector are
provided by the private sector, with clear agreement on shared objectives for delivery of public
infrastructure and/or public services (World Bank 2011).
Most definitions of PPPs focus on the following elements:
 The joint involvement of the public and private sectors.
 Private sector involvement in activities that are typically undertaken by the public sector.
 The delivery of infrastructure and/or public services.
 The sharing of risks and rewards between public and private sector actors.
PPPs have been used by governments around the world in the provision of infrastructure and
other public services. According to Jeffrey Delmon1, there are three key benefits that arise from
PPPs: increased efficiency; the transfer of technology, information and know-how; and the
mobilisation of new or additional sources of financing. PPPs have been identified as playing a
particularly important role in developing countries where access to the recourses required for
infrastructure development is especially scarce. This scarcity of resources creates a vicious cycle
in which low-levels of investment produce low-levels of productivity, while low-levels of
productivity limit the resources available for investment.
Recognizing the need to break this cycle and reach the Vision 2020 goal of creating a vibrant,
modern and diversified economy in which extreme poverty has been eradicated; the RGoZ has
passed the Concession Projects Act in 1999. This Act outlines the procedures and regulations for
evaluating and awarding PPP contracts.
In line with the Concession Projects Act (1999), the PPP unit was established under the
Department of Economic Management in the Zanzibar Planning Commission in 2012. This unit
currently consists of four permanent team members, one of whom is the head of the unit. Due
to a number of challenges, most notably a lack of PPP policy and an out-dated legal framework,
this unit has been unable to award any PPP contracts to date.
2. Situation Analysis
The implementation of the PPP projects facing a number of constraints that hinder its
realization. The main constraints are the absence of the functional legal and institutional
1
Delmon, J. 2009. Private Sector Investment in Infrastructure: Project Finance, PPP Projects and Risk
(Second Edition). Kluwer Law International: The Netherlands.
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frameworks. In the lights of legal framework, there is no PPP policy, no PPP Act, and no PPP
guidelines. The assumption that Concession Project Act (1999) can gratify PPP projects is not
significant taking into consideration a number of limitations it has. Amongst them but not
limited to are its silent on unsolicited projects, and negotiation team is at ministerial level which
looked much more like a tendering board rather than negotiating team. In case of institutional
framework, there is no proper coordination between PPP unit and the line ministries.
The capacity to evaluate and implement PPPs is limited both in government and the domestic
private sector. Currently there is a shortage of well-trained lawyers, economists, financial
experts and project managers who are familiar with PPPs project in Zanzibar. The key challenges
at the PPP unit include a lack of PPP expertise and a lack of operational guidelines for evaluating
and approving PPP projects.
The lab proposed the following solutions to address the aforementioned challenges:
 Formulation of PPP policy.
 Drafting of PPP Act
 Develop operational guidelines for PPP projects.
 Establish functional PPP structure
 Conduct a sensitisation campaign for PPP stakeholders, focusing on the key elements of PPP
and opportunities available in Zanzibar.
3. Links to Overarching Policies
In year 2000 the Revolutionary Government of Zanzibar adopted the Vision 2020 which broadly
articulates the aspirations of Zanzibar that are achieved the year 2020. The overall objective of
the Vision 2020 is to eradicate abject poverty. The overall development objective of ZDV 2020
during the remaining 10 years is to transform Zanzibar into a middle-income country;
characterized by high levels of industrialisation, competitiveness, quality livelihoods and good
governance and rule of law by the year 2020.
The Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP) which is popularly known as
MKUZA identified three clusters for the implementation of the strategy. Three identified clusters
are growth and reduction of income poverty, social services and well being, and governance and
national unity. The broad objective of the cluster one is achieves and sustains pro poor growth.
To this end, three goals namely creation of enabling environment for growth, the promotion of
pro poor and broad based growth, and reduction of income poverty were spelt. The MKUZA
cluster two identified number of social services to achieve that include but not limited to quality
education, improved health status, increased access to clean, safe and affordable water,
improved sustainable environment, sustainable human settlement, and improved poor and
vulnerable groups. Cluster three identified promotion of participatory democratic governance,
accountability, rule of law and respect of human rights.
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The entire above policy frameworks has linked to the government promotion of PPP for
sustainable economic development and endorsement of efficient and effective implementation
of the PPP projects to realize the goals and objectives branded in Vision 2020 and MKUZA. The
MKUZA implementation plan (2012) acknowledged a number of projects that could be
implemented in PPP.
4. Program Description
The overall goal of the programs identified within PPP lab is to enhance ethics, transparency,
awareness and stakeholders’ involvement in all PPP projects, strengthening PPP structure, and
enhance the facilitation of PPP projects. The main strategic objectives are:
 Development of PPP policy
 Formulation of PPP Act
 Development of institutional accountability
 Grounding of PPP guidelines
 Capacity buildings to the PPP actors and stakeholders
The programs to be undertaken from the strategic objectives are
 Drafting of PPP policy
 Consultation with stakeholders in PPP policy formulation
 PPP structure establishment
 Capacity building to all stakeholders
 Identification of skill gaps
 Identification of MDAs focal persons
 Allocation of human and physical resources
 Preparation of guidelines that will outline direction and principles of implementing PPP
projects.
The implementation guidelines of the programs identified under this lab include but not limited
to the preparation of the term of reference, advertising for the hiring of consultant for PPP
policy and PPP Act, tender evaluation, involvement of stakeholders in preparation of draft policy
and presentation of policy to the Ministerial technical committee for the discussion of the draft
policy, and to the House of Representatives for final discussion and approval. To meet short
time demands while waiting for PPP policy and Act, the lab suggested having PPP operational
guidelines that will refer to the best practice to be followed on PPP projects formulation and
implementation. The lab also suggested for the upgrading of PPP to the departmental level for
the efficiency and effective implementation of the PPP projects. Establishment of the PPP
department will be followed by appointment of director for PPP, and formulation and
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appointment of nodes and focal persons at the MDAs. The PPP committee will guide on how
PPP projects should be undertaken.
5. Coordination Mechanism for Implementation
For the effective implementation of the PPP projects the planning commission will take the
leading role. However, Ministry of Finance as the protector of fiscal risk and government budget
and line ministries will also have the major role to play to make sure projects are properly and
timely implemented. Creation of PPP projects and programs requires the mobilization of
different significant expertise and efforts from all responsible stakeholders. Strong coordination
mechanism can help the realization of the projects and programs. The PPP committee (steering
committee) created for ensuring coordination from different government agencies.
Coordinating different government ministries and will provide critical inputs into PPP program
or project which are of particular challenge. Thus, the PPP unit under the supervision of planning
committee needs to establish muscular organ for coordination.
6. Monitoring and Evaluation (KPIs)
Monitoring of the PPP programs will be done by the Revolutionary Government of Zanzibar
through Planning Commission. The key performance indicators for the monitoring of the
program mentioned under PPP lab include the following:
 Formulation of PPP policy
 Formulation of PPP Act
 Formulation of PPP guidelines
 Development of PPP institutional structure
 Formulation of communication strategy
7. Communication Strategy
The formulated PPP Policy, PPP Act, PPP guidelines, and PPP institutional frameworks need to be
communicated to the public and other general stakeholders. Several mechanisms suggested by
lab to communicate the above programs to national, sectoral, regional, district, and Shehia
levels. TV and radio programs, newspapers, social networks, dramas, and outdoor adverts are
among the strategies identified to disseminate PPP programs.
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APPENDIX 1: ACTIVITIES DURING 10 DAYS IN LAB
Day One: Brainstorming on PPP issues by the group
Day Two: Discussion on constraints analysis by the group
Day Three: Discussions on solutions to the PPP constraints identified
Day Four: Preparation of output, outcomes of the proposed solutions to PPP issues
Day Five: Preparation of program strategic objectives
Day Six: Preparation of program strategic objectives, outcomes, output, and target values
Day Seven: Continuation of the tasks from day six and discussion with the World Bank expert on
PPP projects and program
Day Eight: Fine tune of strategic objectives, outcomes, outputs and target values
Day Nine: Preparation of budget for the identified Programs
Day Ten: Fine tune of budget and presentation to the Principal Secretaries Team
APPENDIX 2: PROJECTS AND PROGRAMS TO BE TAKEN
UNDER PPP
S/No Project title
1
Reinforcement of power distribution in
Zanzibar project
2
Extension of taxiway and apron at A.A.
Karume International airport
3
Construction of new terminal building A.A.
Karume
4
Marketing infrastructure, value addition and
rural finance
5
Irrigation MP
6
Zanzibar alternative source of energy
research project
7
Construction of new port at Maruhubi
8.
Implementation of SEZ development
strategy
9
Rehabilitation of Pemba Airport
10
Waste management control program to
tourism zone
11
Creation of linkages in tourism industry and
formation of strategic alliance between local
Resource Mobilisation Programme Report
Total budget (USD ‘000)
235
N
54,250
N
70,400
N
10,000
N
49,900
150
N
150,000
415,000
12,000
4,000
70
6
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
producers and hotels
Tourism promotion and marketing program
Tourism product development and
diversification program
Promotion of Mari culture activities in
Zanzibar
Promotion of deep sea fishing in Zanzibar
Smallholder livestock development project
Construction of investment building Pemba
(ZIPA tower)
Start up technology and incubator
Zanzibar community economic
empowerment project
Employment promotion project
Maintenance of Urban feeder roads in West
District
Construction of treatment and rehabilitation
centre for drug abuse
Construction of drama and music studio
Rehabilitation and improvement of water
infrastructures and financial sustainability in
ZAWA???
Improvement of Zanzibar water supply
system and financial sustainability
Construction of multi-purpose stadium
Rehabilitation and conservation of
monuments
Redevelopment of unplanned neighborhood
in Zanzibar town
Decent housing for all
Documentation and preservation of
historical heritage for Zanzibar National
leaders
Waste collection and disposal in west district
Enhancing the fire and rescue services in
Zanzibar
Occupational safety and health inspection
system
TOTAL
Resource Mobilisation Programme Report
1,292
1,111
2,892
23,323
11,206
5,625
997
82,500
1,760
516
2,810
770
21,124
882
88,000
211.80
806
4,500
6,000
960
9,259
1,118.06
1,033,668
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APPENDIX 3: NEW
UNDERTAKEN BY PPP
PROJECTS
PROPOSED
TO
BE
1. Airport Management
2. Port Management
3. Sports Tourism
 Golf Clubs
 Horse race
 Tennis courts
 Formula 1
4. International recreation buildings
5. International Shopping Mall
6. Development of Zanzibar new city
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