Private sector key to Devt Plan success: Tanzania

About 48tri/- will be needed from the private sector to facilitate construction of major infrastructure development projects in the Second Five Year Development Plan 2016/17- 2020/21, the Finance Minister, Dr Phillip Mpango, has said.

Closing a one-day seminar on Public Private Partnership for major development projects through Tanzania Venture Capital and Private Equity Project, the minister said it is estimated that about 107tri/- will be required for the implementation of the plan, which is to be mobilised from both government and private sector sources and development partners.

The government will be expected to contribute around 59tri/- or an average of 11.8tri/- annually over the plan period and the rest will be solicited from the private sector and development partners, he said.

"It is estimated financial requirement of the plan will be about 107tri/- where as 59tri/- equivalent to 55 per cent will come from government revenues and the 48tri/-, which is 45 per cent will come from the private sector sources," he said.

Some of grand projects under the plan are construction of 2,561 km standard gauge railway network to connect the main Indian Ocean port of Dar es Salaam to eastern and southern Africa's hinterland and the Mchuchuma coal and iron ore in Liganga, one of the largest industrial projects in Tanzania for the past 50 years, whose completion is expected to stimulate the local economy.

Others are Kurasini Centre for Services and Business upgrading of the 110km Dar es Salaam-Chalinze Expressway to a six-lane carriage way to ease traffic on the road leading to the central corridor. 

Last Friday, the government signed a deal worth $1.215 billion with a consortium of Turkish and Portuguese companies last Friday to construct the first 300-kilometre stretch of the railway line.

Dr Mpango said the private sector has key role to play in investing in agriculture and industry which will help to add value to farm products so that they could benefit economically. He said the government is ready to make sure requirements for implementation of the plan were readily available.
Source: Daily News, reported by Daily News, from Dar es Salaam, Tanzania
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