Download Core Priorities : Infrastructure

UNITED REPUBLIC OF TANZANIA
PRESIDENT’S OFFICE, PLANNING COMMISSION
THE TANZANIA FIVE YEAR DEVELOPMENT PLAN 2011/12-2015/2016
Unleashing Tanzania’s Latent Growth Potentials
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Use of the 5 Year Development Plan as an Instrument for
Mainstreaming Sustainable Development Agenda
Presented to the International Workshop on Strengthening
Planning and Implementation Capacities for Sustainable
Development in the Post Rio Context, Held at Incheon,
Republic of Korea
Paper prepared by:
Clifford. K. Tandari,
Deputy Executive Secretary
International Trade and Economic Relations, (on behalf of Executive Secretary – POPC)
P.O. Box 9242,
DAR ES SALAAM.
Organised by the United Nations Office for Sustainable Development (UNOSD)
14th - 16th November, 2012
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PRESENTATION LAYOUT
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The Five Years Development Plan (5YDP)
Pillars of 5YDP
Unleashing Growth
Salient Features of the 5YDP
Binding constraints
Focus of the Plan
Core Priorities
Core Investments
Linkage between MKUKUTA and 5 YDP
Government Strategies on Poverty Alleviation
Underscoring the PPPs
Conclusion
List of References
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What is the 5 Year Development Plan
Five year National Development Plan 2011/12 – 2015/16 is a
blue print/document endorsed by the Government in 2011 for
purposes of implementing the Development Vision 2025 for
the period 2011/12 to 2015/2016.
The Plan indicates what to do in terms of mega-projects that
are taken from various key sectors for purposes of unleashing
growth potential.
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What are the Pillars of the Plan
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Making Tanzania the food basket of the region EAC, SADC and
Grand FTA (EAC-COMESA-SADC).
Making Tanzania the trade (transit) and logistics hub of the Great
Lakes Region (ie. Rwanda, Burundi, DRC, Zambia, Malawi,
Uganda, Northern Mozambique)
Making use of ICT backbone for increased efficiency use of
internet and mobile phone related services.
Using a huge natural gas deposits in Mtwara, Lindi and Coast
Region for increased Power Generation.
Rehabilitation of The Central Railway line and increased wagons
and locomotives as well as expansion of the Port of Dar es
Salaam.
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Unleashing growth potential
In order for the Five Year Development Plan (5YDP) to be able to
unleash growth the following factors are important to be in place:i.
Large investment in Energy and Transport infrastructure; mega –
projects;
ii.
Strategic investments to expand the cotton industry, high value
crops (horticulture, floriculture, vineyards), targeting maize and
rice cultivation under SAGCOT for food self sufficiency and
experts; fertilizer production tapping the large deposits of
natural gas and phosphate Development of Special Economic
Zones (SEZs) to foster manufacturing growth increase the
number of factories of cement, as well as development of coal
and steel industries;
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Unleashing growth ..
• Enhancing skills development especially in Gas – Oil subsector as well as key skills required to run the middle income
economy.
• Improving drastically the Business Environment especially
targeting the key indicators of doing business.
• Institutional reforms for an effective implementation,
monitoring and evaluation of the plan.
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SALIENT FEATURES OF THE PLAN
The 5YDP streamlines various sectoral plans into a unified and
coherent national plan. It is focused on:
i. A shift from needs planning which is based on available
resources to opportunity based planning;
ii. Strong emphasis on implementation effectiveness;
iii. Strong emphasis on growth;
iv. High drive and scaling up of the role and participation of
the private sector in economic growth, through
strengthening business climate for effective use of factors
of production.
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Binding constraints
• The 5YDP will be providing assures to the following identified
constraints as per Tanzania – US Partnership for Growth Study:
• Lack of reliable and adequate supply of electricity;
• Poor quality infrastructure – transport network – roads, railways,
ports;
• Inadequate supply of skilled labour;
• Limited Access to secure land rights;
• Devastating impacts of climate change amidst scarce irrigation
facilities;
• Limited value addition of primary products;
• Lack of access to finance especially by SMEs and agriculture sector.
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The Plan will further focus on
a) Inclusive and broad based growth
b) Employment creation especially among youths
c) Competitiveness and Export development
d) Regional Integration (EAC, SADC, Grand EAC –
COMESA – SADC FTA)
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Core Priorities the Five Year Development Plan
1. Infrastructure
a) Hard infrastructure
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Energy
Railways
Road Transport
Airports/Air Transport
b) Soft infrastructure
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Science, Technology and innovation
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Core Priorities ..
2. Agriculture, Fisheries, Forestry
3 Industry, mining, manufacturing
4. Water and Sanitation
5. Human Capital Development and Social Services
– Education and skills development
– Health
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KEY PRIORITIES
(i) Infrastructure
The biggest obstacle to growth is lack of sufficient
infrastructure. Thus, the development and maintenance
of infrastructure is essential for sustainable economic
growth.
 The strategic interventions in this area are categorized
into those that deal with hard and soft infrastructure.
Interventions in the hard infrastructure focus on
energy and transport sector investments by ensuring
the availability of reliable transport infrastructure
facilities that will reduce cost of doing business and
promoting Tanzania as a reliable transport and
logistics hub for EAC and central African countries and
the Great Lakes Region.
 Soft infrastructure basically focuses on ICT.
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(ii) Agriculture
The agricultural sector has backward and forward linkages
with other sectors of the economy such as the industrial
sector, transport, tourism sector and trade. Enhancing
agricultural transformation is a critical goal for the
realization of Vision 2025. Agricultural transformation
should therefore include:
 Expand and improve irrigation infrastructure
 Enhance utilization of modern agricultural inputs and
mechanization.
 Improve market access and
 Promote agro-processing and value addition activities.
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(iii) Industries
• Industries are market for agricultural products and provides
abundant employment opportunities, especially among youths.
• The mining sector has the opportunity to contribute more in tax
revenue to the production of energy. The government will increase
local participation and beneficiation (Value addition)
Some of the measures to be undertaken include:
 Establishing Special Economic Zones (SEZs), in urban and rural
areas;
 Building industries using raw materials from agriculture and value
addition and provide services (ancillary services) in the mining
sector
 Increase the share of manufacturing in GDP and promote export of
manufactured products.
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(iv) Water and Sanitation
Water is one of the resources largely available in
the country and offers great opportunities to
increase productivity and growth.
Some of the strategies include:
(a) Expanding the area for irrigation;
(b) Ensuring adequate water for agricultural &
industrial use;
(c) Supporting the production of electricity;
(d) Improving water services to urban & rural
areas.
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(v) Human Resource Development
Human capital is the basis of the quality of human
resources. A healthy workforce is essential for
economic development.
Some measures include:
– Investing more in educational infrastructure, higher
education and vocational training (training materials,
etc.);
– Use the available skilled workforce better;
– Facilitate access to health care for all people.
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FINANCING THE PLAN
 Total cost of Tsh. 42.9 trillion (an average of Tsh. 8.6
trillion per year)
 Government contribution is estimated at Tsh. 2.6 trillion
per year. The remainder is expected to come from other
sources like PPP's, private sector and development
partners (DPs)
 The share of Government will come from existing
sources, but also new financing sources, including taxes
on trade financing, Sovereign Bonds, taxes on the profits
of mining companies, Sovereign Wealth Funds, Bilateral
cooperation such as the Sino-Africa, India-Africa, TICAD
etc.
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Core Investments within the Plan
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The core investments in the 5YDP are as follows:Electricity generation to produce 2780 MW;
Expansion of the capacity of the Dar es Salaam Port;
Rehabilitation of the Central Railway line and beef up the rolling stock;
Construction of regional and district roads in the SAGCOT;
Countrywide coverage of ICT backborne infrastructure and increased
broadband network;
7. Irrigation infrastructure in the SAGCOT;
8. Training students in Science, Engineering and Education;
9. Development of SEZs especially for Electronic goods, farm machinery and
agro-mineral processing and integrated textile industry;
10. Large scale Fertilizer Production;
11. Coal and Steel industry.
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Government Strategies on Poverty Alleviation
The principles guiding MKUKUTA II are:
• National ownership (the people, Government, CSOs, Private
Sector);
• Political commitment;
• Commitment to stabilize macroeconomic variables, and accelerate
core reforms implementation, whereby the role of private sector in
pro-poor economic growth is emphasized and given a central role;
• Macro-micro linkages;
• Sector strategies, linkages and collaboration;
• Local partnership and people’s participation and community
engagement;
• Harmonized assistance;
• Sustainable human development and equity;
• Sharper and focused prioritization;
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MKUKUTA GOALS
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Pursuing sound macro-economic management;
Reducing income poverty through inclusive, sustainable,
and Employment enhancing growth and development;
Energy infrastructure
Water infrastructure for productive sector;
Transport infrastructure;
Ensuring creation and substance of productive and decent
employment, especially for women, youth and people with
disabilities;
Ensuring food and nutrition security and climate change
adaptation and mitigation;
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MKUKUTA GOALS ..
• Leveraging returns on national resources for enhanced growth;
• Ensuring equitable access to quality early childhood, primary
and secondary education for all;
• Ensuring expansion of quality technical and vocational
education higher education, adult, nonformula and continuing
education;
• Improving surgical, health nutrition and well being;
• Increasing access to affordable clean and safe water, sanitation
and hygiene;
• Developing desert human settlements while sustaining
environmental quality;
• Providing adequate social protection and rights to the
vulnerable.
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Underscoring the PPPs
• The National Public Private Partnership (PPP) Policy was
adopted by the Government in November, 2009.
• Following that the PPP Act was passed in Parliament on 15th
July 2010 and enacted by the Government on 6th August,
2010.
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The main objectives of the PPP policy
• The main objective is to promote private sector
participations in the provision of resources for PPPs in
terms of investment capital, managerial skills and
technology specific objectives are:
• To develop an enabling legal and institutional framework
to guide investments in PPPs;
• To implement effective strategy showing specific
obligations and rights of various stakeholders;
• To introduce fair, equitable, transparent, competitive and
cost effective procurement process for PPPs.
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The main objectives of the PPP policy …
• To attract resources for development of PPPs;
• To develop institutional capacities for technical analysis and
negotiations of PPPs and associated contracts;
• To enhance efficiency and quality in implementation of PPPs.
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The agenda involves
• Strengthening Public Private Partnerships (PPP) including
formulation of an Institutional framework for public – private
partnership in human capacity development.
• Financing from the private sector by making use of Public
Private Partnerships (PPPs) as alternative source for financing
long term development expenditure especially public
infrastructure when the PPPs financing modality is in
operational, it would complement other financing
arrangements, thus reducing fiscal burden to the
Government. Preparation of a fully articulated finance
framework will be undertaken.
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AN EXAMPLE FOR PPP
• Promoting huge flagship investment
projects under PPP arrangements such
as Rehabilitation and construction of
huge Ports, new Railways, Roads(for
example construction of Road Toll user
pay lanes in some areas of the City or
some Highways for fast tracking
Executives and Business executives who
could be willing to pay so as to spend
less travel time
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Mainstreaming Rio+20 outcomes
• The Rio + 20 Outcomes will further be
incorporated into our planning system during
the Midterm review of our 5YDP.
• Otherwise most of the concerns raised in
Rio+20 outcomes are already taken on board
in the 5YDP
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Green Economy
While trying to mainstream the Green Economy:
• Are there indicators for measuring Green
Economy as we try to integrate;
• Is Green Economy universally acceptable or is
it subject to adaptability;
• What are some of the success stories and
best practices of GE that are documented;
• What is new within GE
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GE
• Transition to the Green Economy requires
capacity building, knowledge sharing,
technology transfer, innovation as well as
accreditation of National certifying bodies.
• Where is the extra funding that is going to
build this capacity for poor developing states
like Tanzania
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National Plans and Strategies
• In Tanzania we will continue using our
National Five Year Development Plans,
National Strategies and Sector Strategies as a
means and instrument for operationalising
the Sustainable Development agenda;
We shall ensure coherence, consistency and
integration of SD issues into the National
Development agenda and core priorities of
the Plans.
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Way forward
• We further call for capacity building,
knowledge sharing so as to scale up some of
the good practices;
• We shall continue mainstreaming issues of
sustainable development in our Development
planning and processes as they continue
featuring;
Our goal is to unleash the growth potential for
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Goal
• Our national goal is to unlock and unleash the
growth potential so as to bring about rapid
and massive economic growth that will build
capacity for sustaining social service provision
while being mindful of environmental
concerns towards the common national vision
of becoming a poverty free society and middle
income country by the year 2025.
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CONCLUSION
 Rio+20 for it to be effective it calls for economic
growth that will build capacity of poor countries
to sustain and provide social services to its
citizenry.
Finally, Tanzanian has mainstreamed most of the
sustainable agenda items into the FYDP I as well
as MKUKUTA plus sectoral plans and strategies
for realising the development agenda as
articulated into the the Development Agenda also
known as Vision 2025.
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List of reference
• URT, Tanzania National Development Vision 2025
• URT, The Tanzania Five Year Development Plan 2011/12 –
2015/16
• URT, MKUKUTA I
• URT, MKUKUTA II
• URT, The Public Private Partnership (PPP) Policy
• URT, The Public Private Partnership Act, 2010
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