ADDIS ABABA –The newly established Public Private Partnership (PPP) Board has approved the construction of 17 multi-billion projects, Ministry of Finance said.
The construction of 17 PPP projects that cost over seven billion USD has approved by PPP Board. 14 projects are on the energy sector, where as the remaining are on the transport sector, Abebe Gebrehiwot, Ministry, PPP Framework and Contract Support Director told The Ethiopian Herald.
Feasibility study has been completed for the energy projects while the study for the transport sector projects is well underway. After the study gets its approval from the board, it will be floated for international bidders.
Out of eight solar energy projects, the Gad and Dicheto solar energy projects to be developed in the Afar and Somali States respectively will get their commencement after six months.
The construction of the two power projects was awarded for Saudi Arabian firm ACWA Power Company at a cost of 300 million USD. Each will have a capacity to generate 125 MW, he indicated.
New approach of public private partnership (PPP) is implementing on mega projects starting from construction design to implementation of the projects.
The reason why we formed PPP approach is, private sector involvement brings operational experience, capability and efficiency. Awarding tasks to companies helps to minimize risks and accelerate project completion, he added.
According to the Director, public private partnership allows projects to be completed sooner or upon schedule. It also provides advantages for both sides.
World Bank is supporting Ethiopia across the value chain through providing technical assistance, including for the PPP, and scaling solar program.
The Ethiopian Herald January 16/2020
BY TSEGAYE TILAHUN
