Strengthening Procurement Capacity in the energy sector

A PPP Success Story by Ayad Consults International

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Details

Client: Ministry of Energy, Tanzania

Tags: Energy, Infrastructure, Procurement

Client Website: www.nishati.go.tz

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The Story

As Tanzania pushes forward with its ambitious energy infrastructure plans, the Ministry of Energy has embraced Public-Private Partnerships (PPPs) as a key financing model. Managing these complex, multi-stakeholder projects requires specialized procurement skills, skills that ensure projects are delivered on time, within budget, and to international standards. Recognizing this need, the Ministry sought expert support to strengthen the capacity of its Procurement Management Unit (PMU), ensuring its officers could confidently navigate the unique demands of PPPs in the energy sector.

What Did Ayad Consults Do?

Ayad Consults International designed and delivered a targeted executive training program tailored for the Ministry’s procurement leaders. The training covered:

  • Understanding PPP legal and institutional frameworks
  • Integrating procurement strategy with PPP risk allocation models
  • Effective contract management for long-term energy projects
  • Competitive bidding aligned with international standards
  • Stakeholder coordination and performance-based procurement planning

A standout feature was an exposure visit to Bujagali Energy Limited in Uganda — one of Africa’s flagship energy PPPs. This on-site learning gave participants firsthand insight into risk-sharing models, procurement best practices, and the realities of managing large-scale energy projects.

With a strong commitment to achieving synergies amounting to approximately 1% of sales within the third year post-merger, our team played a crucial role in providing a comprehensive road map for this endeavor. Leveraging the expertise of our seasoned retail professionals

ne significant aspect of the transformation involved the consolidation of the IT organizations of both companies. Prior to the merger, these IT departments had underperformed and lacked prior experience.

The Results

Participants left with enhanced confidence and practical tools to manage complex PPP procurements. They gained:

  • Clarity on applying PPP models in real-world contexts
  • Improved skills in risk allocation, contract management, and stakeholder engagement
  • Exposure to proven best practices from the Bujagali hydropower project
  • A stronger capacity to deliver energy projects that meet Tanzania’s long-term infrastructure goals

Customer Reviews of the Case

The training and the Bujagali site visit gave us the clarity and confidence needed to apply PPP models effectively in our procurement processes.

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Mrs. Marietha Dominic Kiago

Principal Procurement Officer, Ministry of Energy-Tanzania