Partnership approach proposed to enhance returns from Tanzania’s major public projects
MOROGORO: A proposal has been made for the Tanzanian government to consider adopting a public-private partnership (PPP) model in the operation of the Standard Gauge Railway (SGR), with the aim of improving efficiency and turning the railway into a sustainable source of revenue.
Speaking during a public lecture at the Sokoine University of Agriculture (SUA), the Chief Executive Officer of the Public-Private Partnership Centre (PPPC), David Kafulila, said PPPs should not be viewed solely as a means of financing projects but also as an effective model for managing and operating major public infrastructure.
He noted that although the government financed the construction of the SGR and purchased its locomotives and coaches, partnering with a private operator could help improve performance, reduce operational losses and maximise returns.
“We have our own SGR, with new locomotives and new coaches. We can partner with a company to operate the railway. Why not engage an operator capable of running it profitably so that instead of being a source of expenditure, it becomes a source of revenue?” he said.
He added that the proposal deserves broader discussion among academics and other stakeholders to help shape an informed decision on the future management of the strategic infrastructure.
