Tanzania: Finance ministry trains government officials on new project management guidelines

Dar es Salaam. The ministry of Finance and Planning on August 14 conducted a training session on newly introduced project management guidelines.

The training was led by the Assistant Commissioner of the Department of Debt Management, Mr Omary Khama, and was provided to officials from various government institutions and ministries.

“The guidelines were approved in August 2020 after two years of development,” Mr Khama stated.

He further explained that the guidelines, formally known as Guidelines for Project Planning and Negotiations for Raising Loans, Issuing Guarantees and Receiving Grants were designed to offer comprehensive guidance on key steps throughout the project life cycle, including financing negotiations and approval processes.

According to Mr Khama, the guidelines aim to ensure a clear link and synchronisation of activities from project preparation through to financing and implementation.

He emphasised that the guidelines are also designed to foster project ownership by the implementing agencies.

Since their issuance, the Planning Commission has rigorously scrutinised project proposals to ensure they align with national priorities, are economically viable, and offer tangible benefits to society.

"Some proposals have been rejected, though I don’t have exact figures, as the implementing agencies were not adequately informed about the projects," he noted.

He further explained that, prior to the introduction of these guidelines, many projects suffered from inadequate preparation, leading to unsuccessful implementation.

He emphasised the importance of thorough preparation, noting that loans or grants come with commitment timelines.

The government incurs a commitment fee if a project is not completed on time due to poor preparation.

Mr Khama further explained that under the Government Loans Guarantee and Grants Act, Cap 134, a committee was established to guide the government through medium-term debt strategies.

This framework aims to ensure that government financing needs and payment obligations are met at the lowest possible cost while maintaining prudent risk.

The guidelines aim to empower institutions by detailing the project planning, screening, and approval processes and to avoid inadequate project preparation.

They also aim to enhance the negotiation process for securing financing and provide guidance on key elements of project implementation and coordination.

Additionally, the guidelines are intended to help institutions describe the project’s monetary aspects and evaluation processes.

Meanwhile, speaking on the sidelines of the training, an accountant with the Tanzania Electric Supply Company Limited (Tanesco), Wanyondo Maro, expressed his appreciation for the government's initiative.

He revealed that he was hearing about the new guidelines for the first time during the training session.

"Through this training, I’ve learnt that institutions can now borrow without necessarily involving the central government, and that the guidelines now emphasise financing feasibility studies, which were initially part of the loan package," Maro noted.

Alfred Misana from the Public-Private Partnership (PPP) Centre also shared his perspective, advising that if a borrower or project engineer presents a project proposal, it should be given due consideration since it comes with professional expertise.

He emphasised the importance of verifying the proposal to ensure its viability.

"In my view, we should allow financial or independent consultants to prepare the project proposals," he recommended, highlighting the need for thorough and professional preparation in project planning.