Private Sector to Acquire, Build over 6.5 Billion USD Projects

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selam sew
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Private Sector to Acquire, Build over 6.5 Billion USD Projects

Unread post by selam sew » 27 Oct 2018 13:00

Private Sector to Acquire, Build over 6.5 Billion USD Projects - ena.et


Addis Ababa October 27/2018 Private investors will be awarded 17 power and road projects they are going to build with over 6.5 billion USD.

The Public-Private Partnership Project revealed that the decision was reached in line with the resolution of the Council of Ministers to pass the execution of infrastructural works that used to be carried out by the government to the private sector.
Accordingly, 14 power generation and 3 road projects will be constructed by private investors.



The arrangement will enable the private sector to build the projects with its finance and human resource and earn profit, it was learned.

The decision will relieve the government the burden of financing the projects and the projects can be completed on time with the allocated budget, while the private sector contributes its share to building the nation.

Partnership Project Director-General Teshome Taffese stated that the effectiveness of public-private partnership is certain once the necessary preparations are made and a legal framework is put in place.

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He admitted that the effort of Ethiopia to realize this kind of partnership was not successful, but hastened to add that international experiences are now formulated and a guideline prepared by taking into account the policy and objective reality of the country.

A 10-person board drawn from eight government institutions and two private investors is also established to handle the process from identification of projects to approval of tenders, he added.

The board has accordingly identified the first 17 projects, out of which 14 are power projects that produce over 3,000 W and 3 express roads.

The bid process for the projects will begin within few months, according to the director-general.

Teshome, who noted that the projects require huge financial and technical capacity, said foreign investors that involve domestic investors and workers, will be among the winners so as to improve the low participation of the domestic private investor in Ethiopia in line with the Public-Private Partnership Proclamation.

A private investor who builds a project will take the income of the project for at least 20 years after the completion of the project, it was indicated.

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