Ethiopia has enacted a new Proclamation No. 1076/2018 facilitating Public-Private Partnership (PPP), recognizing that the private sector is essential to support the country's economic growth and improve the quality of public services, particularly in infrastructure.
A PPP Board is also formed to grant approvals at key milestones in the project development process, especially, it has the responsibility of approval of PPP pipeline projects, approving a PPP project to tender and award.
The Board consists of Ministry of Finance (that chairs the Board), National Bank of Ethiopia, Ministry of Water, Irrigation and Electricity, Minister of Transport, Public Enterprises Holding and Administration Agency, National Planning Commission, Ministry of Peace and two members from institutions representing the private sector.
Within the Ministry of Finance Public-Private Partnership Directorate General (PPP DG) is also established and acts as Secretariat to the Board. The directorate general endeavors to meet the growing demand of the public on the service delivery and infrastructure. Moreover, it promotes PPP conceptualize, identify and categorize projects, make recommendations, establish policy and guidelines, coordinate activities and ensure compliance. These are core powers in the Proclamation, depending on the level of delegation to it agreed by the Board. The Board as well approves appropriate structures and feasibility studies, set minimum standards and requires value for money to be demonstrated.
There are three main departments which are organized in the General Directorate. These are PPP Project Development and Monitoring Directorate, PPP framework Management and Contract support Directorate and Capacity Building, Knowledge Management, and Communication Directorate.