Practice Overview
MLA’s Public Private Partnership (PPP) Practice provides comprehensive legal advisory services to sponsors, lenders, developers, and public sector entities involved in the development, financing, and implementation of PPP projects in Ethiopia. We advise across the full PPP lifecycle—from project identification and structuring, procurement and bidding, to negotiation, financial close, construction, operation, and handback.
With deep familiarity with Ethiopia’s PPP legal and institutional framework, sector‑specific regulations, and government procurement practices, our team supports complex infrastructure and public service projects in sectors including energy, transport, housing, water, sanitation, logistics, healthcare, and social infrastructure.
Our Services
- Advising public entities and private sponsors on PPP project structuring, legal requirements, and regulatory frameworks.
- Drafting, reviewing, and negotiating PPP project agreements, including Power Purchase Agreements (PPAs), Implementation Agreements (IAs), and lease agreements.
- Advising bidders and sponsors throughout PPP procurement processes, including RFQs, RFPs, bid submissions, and negotiations.
- Advising lenders and sponsors on PPP project finance, security packages, risk allocation, and step‑in rights.
- Establishing Special Purpose Vehicles (SPVs) and advising on investment permits, registrations, and sector‑specific approvals.
- Advising on land acquisition, lease arrangements, and right‑of‑way issues.
- Advising on government guarantees, termination compensation, force majeure, change‑in‑law, and political risk protections.
- Conducting legal due diligence on PPP projects and assets for investors, lenders, and development finance institutions.
Selected Experience
- Advised a Saudi Arabian energy company on two 125MW PPP solar PV projects initiated by the PPP Directorate General under the Ministry of Finance. Work included setting up two SPVs, obtaining permits, and reviewing project agreements such as the PPA and IA.
- Advised the Government of Ethiopia during preparations for negotiations with a private investor for a 125MW PPP solar project.
- Advised an international real estate developer on an affordable housing PPP project, including drafting PPP documents and structuring corporate vehicles.
- Advised a major local trading enterprise in negotiations for a large‑scale PPP project to be implemented in cooperation with the Government.
- Advised the Government of Ethiopia on comprehensive PPP affordable housing initiatives across Addis Ababa.
- Advised the Government of Ethiopia on a major hydrocarbon pipeline project and assisted in the framework agreement signing with sponsors.
- Assisted major lenders—including African Development Bank, PROPARCO, DFC, and European Investment Bank—on the project financing of the Tulu Moye PPP Geothermal Project.
Overview of the Legal Framework
Public‑Private Partnerships in Ethiopia are primarily governed by the Public‑Private Partnership Proclamation No. 1076/2018, as amended in 2023, and related directives. The framework establishes a centralized governance structure under the Ministry of Finance and outlines rules for project identification, procurement procedures, and approval processes.
PPP projects are generally procured through open competitive bidding, with alternative procurement methods permitted under limited circumstances. The framework supports a variety of PPP models, including build–own–operate–transfer (BOOT), build–operate–transfer (BOT), and design–build–finance–operate (DBFO). Sector‑specific laws in energy, transport, housing, and water further shape PPP structures and risk allocation.
The PPP framework also addresses government support measures, land access, dispute resolution, termination compensation, and step‑in rights, aligning Ethiopia’s PPP system increasingly with international best practices.
Key Contacts
Mehrteab Leul
Managing Partner
mehrteab@mehrteableul.com
+251‑911‑209155
Dereje Ashenafi
Legal Director
dereje@mehrteableul.com
+251‑911‑209155