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Opinion

Tanzania’s PPP (Amendments) Act 2018

Robert Coffey, Managing Partner at Cooke, Young and Keidan
Nov. 19, 2018, 1:16 p.m.
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Word count: 606

In September 2018, the Government of Tanzania, at the Parliamentary debating stage of the Public Private Partnership (Amendment) Bill 2018 (the PPP Amendment Bill) introduced an amendment (new Section 25A) with the effect that all PPP projects relating to Tanzania’s “natural wealth and resources” would be subject to the provisions of the Natural Wealth and Resources (Permanent Sovereignty) Act 2017 (the Sovereignty Act), and the Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act 2017 (the Re-Negotiation Act). The PPP Bill was passed, and is now the Public Private partnership (Amendments) Act 2018 (the PPP Amendment Act). The ‘Objects and reasons’ section of the PPP Amendment Act gives no further insight into the significance of the new Section 25A than to say that it is “…added for the purpose of making provisions for recognition and safeguarding of natural wealth and  resources.” However, the amendment provide controversial among parliamentarians and commentators, as its effect is of great significance of PPP projects.

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