Monday, 29 October 2018 10:01

The recent development on PPP projects in Ethiopia.

MLA is happy to share the recent development on PPP projects in Ethiopia. The PPP Directorate has recently announced the approval of 3 road and 14 power supply projects estimated to be worth 7 billion US. It is to be recalled that the Public-Private Partnership proclamation No. 1076/2018 was enacted on February 2018. According to the PPP Policy document, one of the main objectives for PPP projects is to increase the financial resources available for the development of infrastructure services in Ethiopia. Through PPP projects, the GoE plans to make use of the private sector’s investment and know-how in achieving the goals set in the GTPII. According to the PPP Policy document, the GoE will initially focus on projects where the objectives for the use of PPPs can clearly be met. And the recent approval of PPP projects seems to be inspired by this criterion for project selection, as all the approved 17 projects will play a significant role in the delivery of infrastructure services.

According to the PPP Proclamation, it is within the powers of the PPP Board to approve PPP projects (inducing project structure and significant changes) as well as instruct the Public Bodies/Enterprises to carry out a certain project as a PPP. After the recent approval of the PPP Projects, the next expected step will be selecting the private party by using one of the procurement methods provided in the PPP Proclamation. Similar to the Public Procurement Proclamation, the PPP Proclamation also provides for open competitive bidding process as the default method of procurement. And we will expect, the majority (if not all) of the approved project to pass through the open bidding procurement method.

We will keep our clients updated on any development on the recently approved projects or any development regarding PPP Projects in Ethiopia. 

Read 959 times Last modified on Monday, 29 October 2018 10:45
Liilnna Kifle

Liilnna is an associate in the Energy and Mining practice at MLA. Liilnna joined MLA in 2014 and has experience working in Energy law, Mining law, Investment law, Corporate law, Employment law, and Intellectual Property law matters. Liilnna earned her LLB (with great distinction) from Addis Ababa University in 2014. In 2017, she earned her LLM in Energy Law with Professional Skills from the University of Aberdeen, United Kingdom.

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Mehrteab Leul & Associates is a member of DLA Piper Africa Group, an alliance of leading independent law firms working together in association with DLA Piper, both internationally and across Africa.


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