Following the establishment of a new Public Private Partnership (PPP) body backed by a proclamation and an implementation regulation, it has announced the selection of 50 mega projects potentially suitable for a public-private joint-venture investment. Haji Ibssa, director of communications and public relations with the Ministry of Finance and Economic Cooperation (MoFEC), told reporters this week that the governing body of the PPP has held its second working meeting this Wednesday and identified potential investment areas for the government and private sector partnership. Yet, the details are yet to be made public, Haji told The Reporter.
Across the state owned enterprises, some 50 mega projects have been identified as having the potential for future investment under the PPP framework. Out of those, 26 projects are slotted for immediate launch and implementation, Haji said.
The Ministry of Water, Irrigation & Electricity has tabled a bill that will raise the electricity tariff four fold. The tariff increase comes after 13 years with no increases, The last amendment was made in 2005. “This resulted in a depletion of profit earnings for the government,” said Seleshi Bekele (PhD), minister of Water, Irrigation & Electricity, during a discussion held at Hilton Hotel with representatives from Addis Abeba University, Ethiopian Railway Corporation and several banks.
The Government earned seven billion Birr in revenues last fiscal year from electricity, which is significantly short of the 28 billion Br targeted by the government, according to Seleshi. The country’s electricity tariff stands at 0.018 dollars per kilowatt hour, one of the lowest rates in Africa. Electricity tariffs in Sudan, Nigeria, Kenya, Uganda and Rwanda range from 0.05 to 0.25 dollars per kilowatt hour.
The Ethiopian Ministry of Finance & Economic Cooperation (MoFEC) has finally approved the Public-Private Partnership (PPP) directive. The directive, which has now become effective for the new budget year, has introduced the establishment of a dedicated directorate which will oversee the implementation of PPP. For the directorate office there will be a director general who will be assigned to lead the office. Moreover, the director general will also be the secretary for the Board of PPP which will include institutions such as the Ministry of Public Enterprises, the National Bank of Ethiopia, and the National Planning Commission.
Each member of the Board will represent one vote. The Board – among other things – will have the power to approve different projects which fall under PPP schemes. The projects could fall under energy sector, health, education, road and public services where the government will partner with the private sector.