Tanzania signs 116m US dollar PPP deal for vehicle inspection centres in its 26 regions
DAR ES SALAAM: A total of 116 million US dollar (over 300bn/-) public-private partnership (PPP) deal has been signed to build and operate mandatory motor vehicle inspection centres across all 26 regions of Tanzania Mainland.
The agreement brings together the Police Force Corporation Sole under the Ministry of Home Affairs and a Special Purpose Vehicle (SPV), MVI–Tanzania, formed by a consortium of private firms including SAMA Exim DMCC and VIGOR.
Commenting on the project during the signing ceremony, the Executive Director of Tanzania’s Public-Private Partnership Center (PPPC) David Kafulila said the 20-year contract will see the rollout of modern vehicle inspection infrastructure countrywide under a PPP arrangement.
“This project will deploy advanced inspection technologies and equipment from Germany’s DKT and MAHA, with operations managed by international firm Applus+ Automotive of Spain,” he said.
Under the deal, the government, through the Police Force Corporation Sole, will retain a 20 per cent stake in MVI–Tanzania, marking the institution’s first major PPP engagement.
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Kafulila noted that while the government had the option to finance the project independently, the decision to partner with the private sector signals a strategic shift towards leveraging private investment in delivering large-scale public services.
He said the initiative aligns with the National Development Vision 2050, which encourages alternative financing models for major projects, stressing that the arrangement is not privatisation but a collaboration aimed at improving service delivery.
The PPPC will oversee implementation of the project to ensure compliance with legal and regulatory frameworks throughout the contract period, he added.
