Abstract:
The general objective of the study was to assess the viability of Public Private Partnership projects in Tanzania. The study specific objectives was to assess the ability of the both parties to manage the project at Msamvu, assessing the value for money of the Msamvu Bus Terminal project and to determine the challenges associated with monitoring of PPP projects at Msamvu. The study was conducted at three different areas that are; Msamvu Properties located at Morogoro Municipal Council, Morogoro Municipal Council and Local Authority Pension Fund, Morogoro Municipal. Purposive sampling was used and the sample size was a total number of ten (10) respondents. For qualitative data the researcher used the interview method for collecting data. Different theories were used as a base of arguments to support the study these are; transaction cost theory, principal-agency theory and resource based theory. The primary, secondary data were collected and were analyzed by using the grounded theory approach. The findings from the analysis showed that; the private party showed ability to manage the project well, the project manages revenue collection very well, payments mechanisms are properly articulated and executed , enhanced services to the users of the facility, risks associated with the project are well managed and lastly the challenges encountered during the implementation of the project are political interference, insufficient capacity negotiations and poor contract design.The study recommends the following; the public sector should configure and evaluate procurement options and procurement models that will ascertain the attainment of value for money, the government should establish policies that encourage private firms to invest in various sectors, and lastly, the public sector should focus on using experienced personnel in all activities involved in the PPP procedures.
