Enhancement of Procurement Capacity of Local Government Authorities

Project code: 
Belgium, Tanzania
2012 - 2017
€ 5000000

Good governance and accountability are one of three clusters targeted by MKUKUTA II, the Tanzanian government’s strategy for poverty reduction and economic growth. Core reforms needed to address governance challenges and institutional performance include better public finance management and use of resources, and ensuring capable local government.

As over 60% of funds allocated to local government authorities (LGAs) go through the LGA procurement system, strengthening the weak capacity of LGAs to manage procurement procedures and planning, and to ensure transparent, efficient use of resources is vital for improving service delivery to citizens.

As well as capacity gaps within LGAs, the Public Procurement Regulatory Authority (PPRA), also faces challenges. Though responsible for setting standards for procurement, monitoring compliance of procuring entities, and building their capacity, the PPRA faces financial and staffing constraints and has not been able to adequately target LGAs, especially at the lowest levels.

In addition, Regional Secretariats (RS) are supposed to provide backstopping, oversight, supervision and support to LGAs and facilitate them in delivering public services, including in procurement. However RSs are not well supported in their function and they lack adequate, skilled human resources and facilities to be effective.


The overall objective is to ensure systems and structures of governance uphold the rule of law and are democratic, effective, accountable, predictable, transparent, inclusive and corruption free, at all levels.

Specifically, this project aims to sustainably enhance procurement capacity at local government level. Activities are centred on four main areas:

  • Enhancing the capacities of central institutions responsible for LGA procurement capacity building and oversight (PPRA and Hombolo Local Government Training Institute);
  • Strengthening institutional capacity and procedures for monitoring and supervising LGA procurement performance;
  • Fostering accountability and ‘demand’ for better LGA procurement performance by supporting civil society and media oversight of LGA procurement practices;
  • Strengthening policy dialogue with Tanzanian stakeholders on reform and improvement to LGA capacity and procurement performance, by supporting action research on LGA procurement practices, incentives and organisational structures.

Direct beneficiaries include those at LGA level (procurement staff and financial management staff) and at the national level (PPRA, PMO-RALG and Regional Secretariats, Hombolo LGTI and media/civil society). Indirectly, local communities and the private sector will also benefit from improved transparency, value for money and accountability of LGA procurement.

Local Government Reform is identified as one of two priority sectors for Belgian cooperation with Tanzania, as outlined in the Indicative Development Cooperation Program (2010-2013). Belgium already gives support in this sector through the Local Government Development Grant System (LGDGS).