(A high Level PPP Development Assessment Outcome)
Public private partnerships have become new normal in today’s business landscape across many countries. If properly managed, governments could benefit in mobilizing financial resources, technical knowhow, innovation and efficiency gains from the private sector in the delivery of public goods and services by effectively partnering with them.
Since 2017, Ethiopia has publicly announced that it would leverage PPPs as one of its strategic tools in its development agenda. The accompanying thesis make an assessment of the theoretical and historical developments of PPPs in general and its stage of development and application in the Ethiopian context.
In the assessment, it is learned that the government of Ethiopia has committed resources by formulating a PPP policy, enacting a separate PPP law (Proclamation no 1076/2018) and outlining the institutional roles and responsibilities albeit an early development stages demanding further clarity and maturity.
The Waste to energy conversion facility has 25 MW capacity and will produce 185 Giga Watts Hour (GWh) of electricity per year, crushing 1,400 tons of solid waste on a daily basis (thereporterethiopia, 2018). The facility's successful inauguration has multiple implications and benefits to the country.
The straight forward benefit of the power plant is the additional capacity built at the heart of the main load center pushing the renewable energy resources portfolio reserve of the country in multiple directions.
The second benefit is that Ethiopia largely depends on hydro power to drive the burgeoning economy and its energy security is often times perceived as at stake in times of drier weather. Slowly but surely, the energy supply mix or diversity is shifting, Repi being the latest addition to Ethiopian Electric Power's, EEP's, power capacity to safeguard the economy in such unfavorable circumstances.
Access to affordable energy supply is a real booster in today’s competitive business landscape so to say in the developing world where businesses scramble to better position themselves against the competitors somewhere else. The cost of electricity is one of the major factors in investment decisions in the manufacturing sector.
Then, comes the question of reliability of the electricity supply. Utilities, particularly those in the developing world, are constantly challenged in balancing affordability and/against reliability. In their ongoing struggle to address both cases, power theft constantly stands on their way.
(The National Electrification program, NEP, document):
Adequate, reliable, and affordable electricity access connectivity nationwide is a critical enabler for realizing Ethiopia’s future growth and transformation,economic prosperity, and well-being of all its citizens nationwide. Today, grid connected household connectivity is about 20+ percent of the population. And many priority social services delivery institutions especially in rural areas—schools and clinics—also have limited access connectivity and reliability. There is no time to lose. Following release of the Government’s National Energy Strategy (NES–2016) and reflecting its recommendations, the Ethiopia’s National Electrification Program (NEP)—Implementation Roadmap (IRM) presents the Government’s action plan for achieving universal electricity access nationwide by 2025, in a strategic and comprehensive as well as efficient and transparent manner, for the benefit of all its citizens. Toward this end, the key operational action elements of the NEP-IRM target are: