Modeling Public-Private Partnership(PPP) For Housing Projects In Tanzania

The housing sector is one of the very important sectors in the economy of any modern society. In emphasizing the role of this sector in fostering socio-economic development, it has been said that "life is house" in the view that, a society without a well performing housing sector is like a society without life.Following the failure by Tanzania's public sector in increasing formal housing supply in the country In the 1970s, the private sector has been allowed to take the leading role in designing, financing, building, operating and maintaining the houses. However, this move hasn't resulted in increasing the quality of housing supply in the country, but instead, has led to mushrooming of low quality, and unreliable but expensive houses scattered over unplanned settlements. On the other hand, there are success stories about the application of the Public-Private Partnership (PPP) models in infrastructure sectors particularly the transit sector in other countries like the US, UK, Canada, Australia, China, etc. This fact has led this study to specifically endeavor to investigate the performance factors for PPP applications in Tanzania's housing sector.The study found that despite a relatively higher construction costs for PPP projects in the country, the method's enthusiasm is currently very high among the housing and construction sector professionals. These professionals are optimistic that PPP can solve the problems of financing, designing, building, operating and maintenance that are currently facing the house owners under the current public and private housing delivery methods. However, the current policy and economic indicators do not provide a suitable atmosphere for PPPs to flourish in the country. The monetary indicators provide a narrow span for efficient private share in Special Purpose Vehicles'(SPVs) capital structure.Based on these findings, it is recommended by the researcher that the Tanzanian government and other stakeholders should take every necessary action to improve the policy, legal and monetary frameworks in order to motivate private companies to participate in delivery and management of large scale housing assets in partnership with the public sector. This will not only raise the country's GDP records, but also ensure the availability of formal houses, promote the mortgage market and improve the quality and quantity of shelter provision for the citizens.