Progress Update on PPP Training Program and Viability Studies
PPP Training Program progress includes converting concepts into viable PPP projects, drafting agreements, and preparing RFQs and RFPs for initial PPPs. Government agencies are identifying and refining projects important to them. Viability studies have been submitted for various redevelopment projects across strategic municipalities. Notable progress has been made in preparing for public-private partnerships (PPP) in key sectors.
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PPP Training Program First Movers
From concept to signing PPPs Status as of Jan 19 Preliminary Studies documents Completion Model Transaction advisors will help contracting authorities finalize PPP designs, secure approvals then procure a private partner Completion 04 03 Model documents Will be prepared where feasible to simplify and standardize project designs. This will make PPPs easier and cheaper to do Preliminary studies Will be undertaken to convert concepts into viable PPPs 02 01 PFs Model RFQ, RFP and PPP agree- ment drafted. Review and approval required FSs, ESIAs, RAPs then release of RFQs and RFPs then negotiate PPP prepared for 22 initial PPPs. 6 SWM and student hostel PPPs underway. Exploring 3 WASH PPPs Concepts Government agencies will identify the projects important to them and what they need to deliver. Concepts will be refined and new ideas introduced on how PPPs can be used
Progress so Far Concepts PO-RALG worked with LGAs to identify 58 potential projects in 8 strategic municipalities (4 in Dar and Arusha, Mbeya, Moshi, and Mwanza) A first set of 28 concept notes were approved by the Permanent Secretary for further development. 10 more LGAs have prepared concepts for 16 additional PPPs A total of 50 LGAs has received the PPP training (intermediate) whereas the other 56 have been exposed to introduction to PPPs. 01
Progress so Far Studies 22 viability studies have been submitted 02 They were selected from the first 28 concept notes
Viability Studies Prepared No. Project LGA Facility 1 Modern Baraa Market Arusha City Council Market 2 Modern Njiro Market Arusha City Council Market 3 Modern Sisimba Market Mbeya City Council Market 4 Redevelopment of Sisimba Bus Terminal Mbeya City Council Bus terminal 5 Redevelopment of Uyole Bus Terminal Mbeya City Council Bus terminal 6 Redevelopment of Ilemi Slaughterhouse Mbeya City Council Slaughterhouse 7 Redevelopment of Sisimba City Park Mbeya City Council City park 8 Redevelopment of Central Market Moshi Municipal Council Market 9 Redevelopment of Mbuyuni Market Moshi Municipal Council Market 10 Modern Shanty Town Market Moshi Municipal Council Market 11 Mfumini International Bus Terminal Moshi Municipal Council Bus terminal 12 Redevelopment of Korongoni slaughterhouse Moshi Municipal Council Slaughterhouse 13 Buhongwa Truck Terminal Mwanza Municipal Council Truck terminal 14 Redevelopment of Nyegezi Bus Terminal Mwanza Municipal Council Bus terminal 15 Redevelopement of Msasani Fish Market Kinondoni Municipal Council Market 16 Boko Dawasa Bus Terminal Dar City Council Bus terminal 17 Temeke Stereo Temeke Municipal Council Market 18 Buguruni Market Ilala Municipal Council Market 19 Ilala Market Ilala Municipal Council Market 20 Vingunguti Abattoir Ilala Municipal Council Slaughterhouse 21 Chanika Bus Terminal Ilala Municipal Council Bus terminal 22 Kigamboni Bus Terminal and Municipal Market Kigamboni Municipal Council Bus terminal
Highlights from the 22 studies Greenfield sites with land titles are the most ready Some PPPs are viable and have good potential Simple, low cost designs are best Low user charges and weak fiscal positions reduce viability Unrealistic expectations lead to high, unaffordable capital costs Project preparation costs too much and takes too long
Response Focus on first movers Standardize First mover PPPs Simplify Learn-by-doing First movers are the most viable and fastest to prepare Clear development rationale PPP model has high potential for scaling-up Robust demand and revenue outlook Land titles held by the LGA (or soon will be) Little or no-resettlement and low environmental impact
PPPs ready to proceed No. Package PPP 1st Capex LGA mover? Yes Yes TZS b 3.7 4.8 $m 1.6 2.1 1 Arusha Markets Baraa Market Njiro Market and Dala-dala Terminal Re-developed Mbuyuni Market Re-developed Manyema Market Re-developed Central Bondeni Market Buhongwa Truck Terminal Re-developed Sisimba Bus Terminal O&M of Nane-Nane Bus Stand Uyole Bus Terminal Sisimba City Park Kigamboni Market and Dala-dala Terminal Bus Terminal at Boko Dawasa Chanika Dala-dala Terminal Arusha City Council Arusha City Council 2 Moshi Markets No No No 9.5 TBD 4.0 4.1 TBD 1.7 Moshi Municipal Council Moshi Municipal Council Moshi Municipal Council 3 4 Mwanza Bus Terminal Mbeya Bus Terminal Yes Yes 16.1 6.2 7.0 2.7 Mwanza Municipal Council Mbeya City Council Yes No No Yes 0.0 8.0 5.9 13.8 0.0 3.5 2.6 6.0 Mbeya City Council Mbeya City Council Mbeya City Council Kigamboni Municipal Council 5 6 Sisimba City Park Kigamboni Market and Dala- dala Terminal Boko Dawasa Bus Terminal Chanika Dala-dala Terminal 7 8 Yes Yes 29.0 3.9 12.6 1.7 Dar es Salaam City Council Ilala Municipal Council 9 Ilala Markets Re-developed Ilala Municipal Market Re-developed Buguruni Market Re-developed Temeke Stereo Market Re-developed Msasani Fish Market No 17.5 7.6 Ilala Municipal Council No No 13.0 15.3 5.6 6.7 Ilala Municipal Council Temeke Municipal Council 10 Temeke Market 11 Msasani Fish Market Yes 9.5 4.1 Kinondoni Municipal Council Total for 1st Mover PPPs TOTAL ALL PPPs 9 80.8 160.1 35.1 69.6 17
Progress on model documents Sep 24-28, 2018 Dodoma PPP Clinic 1 PPP design Output Achieved Review and endorsement of revenue model, output specifications, costing, template financial model and risk matrix were reviewed and endorsed Nov 19-26, 2018 Dodoma PPP Clinic 2 - Bid documents Output Achieved Review and endorsement of generic model RFQ and RFP and sector specific RFQ and RFP for municipal markets, daladala terminal and abattoir were reviewed and endorsed Jan 21-25, 2019 Dodoma PPP Clinic 3 - PPP agreement Target Output Review and endorsement of generic model PPP agreement and sector specific model PPP agreement for municipal markets, daladala terminal and abattoir PPP Clinic 4 National agency review and model documents Feb 4-8, 2019 Target Output MDA review and endorsement of model documents for LGA PPPss and a generic model documents for small national PPPs Dar-es- Salaam Mar 25-29, 2019 Dar-es Salaam PPP Clinic 5 Stakeholder review and Completion of model documents Target Output - Generic final model documents and sector specific final model documents for municipal markets, daladala terminal and abattoir 9
PHASE APPROVAL The PPP project cycle Of concept note Identification Of pre-feasibility then feasibility studies Project Preparation To issue request for qualification Pre-qualification To issue request for proposal Procurement Bidding Of preferred bidder Negotiation Of PPP agreement Close Implementation 10
Remaining tasks for LGA PPPs Prepare prefeasibility study to assess likely viability Verify demand and ability to pay Market testing with potential private partners and financiers Prepare safeguard assessments (EIA, RAP) Prepare feasibility study to confirm viability Project Preparation Finalize request for pre-qualification (RFQ) Approve release of the RFQ Release invitation for RFQ Evaluate responses Nominate pre-qualified bidders Pre-qualification Finalize request for proposal (RFP) documentation including PPP agreement Consultation with pre-qualified bidders Approve release of RFP to pre-qualified bidders RFP bidding then evaluation Final decision to proceed with PPP Selection of preferred bidder Bidding 11
Can some tasks start now? Environmental Impact Assessment (EIA) Resettlement Action Plan (RAP) Demand and willingness to pay study Market testing Feasibility study 12
Revisiting 1st Movers We originally said: First movers are the most viable and fastest to prepare Clear development rationale PPP model has high potential for scaling-up Robust demand and revenue outlook Land titles held by the LGA (or soon will be) Little or no-resettlement and low environmental impact But almost all projects wanted to be a 1st Mover All viable projects should keep moving. Perhaps 1st Movers are those that can keep moving now? 13
