The Public Private Partnership Centre (PPPC) has participated in market sounding sessions for two proposed infrastructure projects being developed by Mbeya City Council (MCC) under Tanzania’s Public-Private Partnership (PPP) framework.
The sessions, organised by MCC on 3 and 4 November 2026, focused on the Ilemi Modern Abattoir PPP Project and the Uyole Modern Bus Terminal PPP Project.
They brought together approximately 50 participants, including representatives from MCC, PPPC, the PPP Node and financial institutions such as CRDB Bank, NMB Bank and TIB Development Bank.
The engagements provided an opportunity to present the proposed projects, assess market interest and obtain feedback from potential financing partners and other stakeholders before finalisation of the feasibility studies and commencement of formal procurement procedures.
A central objective was to assess the proposed projects against three critical considerations: commercial viability, bankability and affordability to citizens.
Ilemi Modern Abattoir Project
The proposed Ilemi Modern Abattoir aims to improve meat hygiene, slaughtering facilities, waste management and the productive utilisation of livestock by-products.
According to the preliminary project presentation, the facility is designed to accommodate 80 cattle and 100 sheep or goats per day, compared with the existing Ilemi abattoir’s reported capacity of 35 cattle per day.
The project has an indicative capital cost of approximately TZS 10 billion and a proposed PPP agreement period of 25 years. Planned facilities include slaughtering and livestock holding areas, processing and packaging facilities, and wastewater treatment infrastructure.
During the market sounding session, participants raised questions concerning the projected demand for slaughtering services, particularly in relation to other existing abattoirs within Mbeya City.
Financial institutions and other stakeholders also highlighted the need to validate the proposed investment cost, construction period and allocation of financial risks between the public and private partners.
Participants further recommended stronger technical representation in future engagements to address equipment maintenance, asset deterioration and the condition of machinery at the end of the concession period.
All three participating banks such as CRDB Bank, NMB Bank and TIB Development Bank actively contributed feedback on the investment assumptions, financial risks and financing prospects of the project.
Their observations highlighted the importance of realistic project cost estimates, sustainable revenue projections and financing arrangements that support private investment without imposing excessive costs on service users.
Uyole Modern Bus Terminal Project
The proposed Uyole Modern Bus Terminal seeks to improve passenger safety, transport coordination, commercial services and the overall efficiency of bus operations within Mbeya City.
The project is expected to provide dedicated bus and minibus bays, organised passenger facilities, commercial spaces, parking areas and related supporting infrastructure.
With an indicative capital investment exceeding TZS 18 billion and a proposed PPP agreement period of 20 years, the development is intended to serve passengers travelling through Uyole and surrounding areas.
Stakeholders emphasized the importance of validating passenger demand and projected vehicle movements, taking into consideration the strategic position of Uyole and the existence of other bus terminals in Mbeya.
They noted that the projected capacity, revenue assumptions and investment requirements should reflect realistic market conditions to strengthen the project’s commercial and financial viability.
CRDB Bank, NMB Bank and TIB Development Bank all participated in providing feedback, drawing attention to the importance of realistic demand projections, financial sustainability, project bankability and the affordability of proposed user charges for passengers and transport operators.
PPPC’s Role in Strengthening PPP Project Preparation
During the engagements, PPPC provided guidance on Tanzania’s PPP legal and institutional framework, emphasising compliance with the Public Private Partnership Act, Cap. 103, and the applicable regulations, as amended.
PPPC’s participation reflects its mandate to facilitate and coordinate the preparation and implementation of PPP projects, including providing technical and advisory support to contracting authorities.
Market sounding forms an important part of this process by allowing proposed projects to be tested against market expectations before procurement begins.
Through such engagements, financial institutions and prospective private partners can provide valuable insights into project bankability, revenue forecasts, financing structures, risk allocation, construction requirements and long-term operational sustainability.
A key consideration in PPP project preparation is ensuring that proposed projects meet three essential criteria: Commercial Viability, referring to the project’s capacity to generate sufficient revenues to sustain operations and investment; Bankability, referring to its ability to attract financing from banks and other financial institutions on acceptable terms; and Affordability, ensuring that the cost of services remains within the financial means of citizens and other users.
These considerations help establish an appropriate balance between private sector investment interests, long-term project sustainability and the public’s ability to access essential services at affordable costs.
The participation of CRDB Bank, NMB Bank and TIB Development Bank contributed important financing perspectives.
All three banks actively provided comments on the proposed projects, including their financial assumptions and prospects for securing financing.
TIB Development Bank also shared relevant experience from market infrastructure projects. Stakeholders additionally proposed consideration of MCC’s potential participation in a project Special Purpose Vehicle (SPV), subject to the applicable legal and financial requirements.
Stakeholder Feedback to Inform Final Feasibility Studies
Preparation of the feasibility studies is being supported through World Bank funding and specialised consultancy services. During the discussions, the technical advisers provided clarification on possible PPP financing arrangements, including combinations of private equity and debt financing.
The advisers acknowledged the observations raised during the market sounding sessions and indicated that the feedback would inform further review and refinement of the feasibility studies.
The engagements therefore provided an opportunity to identify commercial, financial and technical concerns early in the project development cycle, before proceeding to competitive procurement.
Feedback from all three participating banks and other stakeholders is expected to contribute to a more robust assessment of commercial viability, bankability and affordability, ensuring that proposed investment structures respond to realistic market conditions while protecting the interests of service users.
Next Steps
Following the finalisation of feasibility studies and the necessary assessments and approvals, the proposed projects are expected to progress through the applicable PPP procurement procedures.
PPPC will continue to play its institutional role in facilitating well-prepared PPP projects that promote financial sustainability, appropriate risk allocation, private sector participation and improved public service delivery.
The proposed Ilemi Modern Abattoir and Uyole Modern Bus Terminal projects highlight the opportunities available for local government authorities to leverage private sector expertise, financing and operational capabilities in delivering essential infrastructure and services.
By emphasising commercial viability, bankability and affordability throughout project preparation, PPPC continues to support the development of PPP projects that are attractive to investors, financially sustainable and responsive to the needs of citizens.