MWANZA: THE government is set to establish what it termed Special Purpose Vehicle (SPV), through which a special company will be introduced for development projects’ supervision.
Special-purpose vehicle is a legal entity that allows multiple investors to pool their capital and make an investment in a single company. SPVs have multiple use-cases in the business world. Public corporations sometimes use SPVs to isolate certain holdings from the parent company’s balance sheet.
Assistant Director for the government activities in the President’s Office – Regional Administration and Local Government (PO-RALG), Mr Johnson Nyingi made the revelation during a four-day training to some councils’ personnel.
He said the company will be supervising revenue collection system in town and municipal councils, to make them (councils) financially stable and therefore avoid dependency on the central government.
“We have prepared the guideline that will be leading such a company. The government disburses funds for various investment projects, whose turnups should be visible in a form of value for money,” he said.
He explained that the training was for Trainers of Trainees (TOTs), who will be disseminating the knowledge to other public personnel on effective development projects’ implementation at councils level.
Mwanza Regional Administrative Secretary (RAS), Mr Elikana Balandya thanked the President’s Office and the United Nations Capital Development Fund (UNCDF) for successfully preparing a guide for the establishment of a specific company.
He said that it is important for local governments to build capacity on how to use the guidelines to ensure there is sufficient understanding and that the intended goals are achieved.
Mr Nyingi promised that the government in collaboration with its stakeholders will conduct training for various experts as much as the budget will allow.
He commended the UNCDF for continuing to support the government’s efforts to implement the Third Five-Year National Plan (FYDP III) with the aim of expanding the scope of domestic revenue to finance projects development.
On her side, UNCDF Investment Officer, Ms Stella Lyatuu said that the guide has already been prepared and received the blessing of the government and they have started to provide training to experts at the national level, who will provide training at the council level who are the main users.
“This guide will help you know how to run projects effectively, so that they can be implemented professionally. This will help in attaining the intended goals, including getting rid of dependence on the central government and serving the people on time,” Ms Lyatuu said.a.