The Public Private Partnership: Participation of Foreign Investors

By Dagnachew Tesfaye, Partner at DMLF

The participation of the private sector is recognized as an important aspect in the development of infrastructure projects. Therefore to select projects and award such projects to the private sector, the Ethiopian government has come up with a special proclamation for such a purpose namely the Public Private Partnership Proclamation No 1076/2018. To implement this Proclamation, a directive has been issued namely A Directive Issued to Implement Public Private Partnership Directive No 55/2010/2018. The Investment Proclamation No 1180/2020 also recognizes PPP as vehicles for investments that foreign investors participate  jointly with the government of Ethiopia by way of Public Private Partnership. The PPP Directorate General is tasked with identifying projects, selecting private sector candidates that may participate in PPP or receive investment proposals submitted by any private investor intending to invest jointly with the government. The PPP Board shall follow PPP Proclamation and Directive for decision and upon approval designate a public enterprise or establish a project company to invest as partner in the joint investment.

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