Joint venture housing projects in Dar es Salaam city: An analysis of challenges and effectiveness

National Housing Corporation (NHC) a public sector in Tanzania, adopted Public Private Partnership (PPP) strategy since 1980s, with the aim of re-developing its condemned buildings, increase its property portfolio and market share. However these Joint Venture (JV) projects encountered a number of challenges causing some projects to fail. This study aims to identify the challenges and assess the effectiveness of NHC-JV projects. In other words the study entails to know if the JV projects were beneficial to the corporation and the public at large. The following criteria such as quality of buildings increase in rental income, tenants' satisfaction and timely completion will be used to measure the success. A mixed method approach was used to collect data. The sample was purposely selected. The study was further reinforced by theory of constraints and equity theory. The obtained findings indicates that NHC-JV projects were not as effective as planned due to non-adherence to the rules and regulations, bad determination of initial shareholding ratio, weak contracts and inadequate management of the projects. Nevertheless some benefits such as improvement of the quality of buildings and increase in rental income were realized. Hence, this study recommends careful selection of potential partners, close monitoring and evaluation of projects.