ABSTRACT
Public-private partnerships (PPPs) are an effective way of transferring life-cycle costs of infrastructure systems off public-sector budgets and simultaneously create investable assets for the private sector. They have demonstrated their value in infrastructure projects around the world. Private investment in infrastructure, in partnership with the public sector, can motivate accountability in the delivery of critical assets, stretch public capital and help local, state and national governments deliver highways, bridges, ports, airports and other social infrastructure such as schools and housing faster and cheaper, and ensure that they are properly maintained. Infrastructure is a base and also a key driver to any country's economy. However, the development of new infrastructure remains ineffective and insufficient to most sub-Saharan African countries like Tanzania. Global experience clearly shows that well designed PPPs and properly managed contracts can make substantial contributions to the infrastructure delivery and economy as well. The lack of well-prepared PPPs, inadequate feasibility studies, risky policies, unbalanced risk allocations and poor enabling of the environment, to mention a few, all undermine the successful implementation of these projects and also discourages the private sector participation. Therefore, in addressing the challenge to boost the economic and social aspects of a country, there is a need to improve and empower the implementation of infrastructure PPPs through different aspects. For that reason, this chapter focuses on explaining the standard procedures for PPPs' preparation and also identifies the key challenges hindering their successful implementation. Furthermore, inadequate management has 344been considered among the prevailing challenges; thus, this chapter also describes the key steps to follow to manage the complex PPP process. On the other side, since investors are profit oriented, they always require detailed information to convince them whether the project can service the debt. In that regard the need to conduct bankable feasibility studies is inevitable, hence their aims and processes are detailed herein. With the aim of empowering PPPs the chapter also reviews the different types of risks and how to best allocate the risks to attain value for money. Finally, as explained in chapter 12, the success of any infrastructure project's delivery is heavily dependent on a conducive and enabling environment in which these projects are implemented; therefore, this chapter also emphasises the need for creating a conducive enabling environment to empower PPPs. At the end of the chapter, a Tanzanian case study is included to draw lessons from.
