Ethiopia’s Ministry of Finance Seals Over ETB 72 Billion PPP Deals

The Ministry of Finance has signed a series of major project agreements with various private developers under Ethiopia’s growing public-private partnership (PPP) framework. The signing ceremony, held at the Ministry’s conference hall, marks a new chapter in the government’s effort to mobilize private capital for national development.

Finance Minister Ahmed Shide highlighted that the legal and institutional framework now in place enables effective implementation of PPP projects. He stressed that the agreements signed will have “a significant impact on the economic and social development of the country.”

Seven new projects spanning housing, tourism, health, and diagnostics were formalized during the event. These include: Partial Forest Housing Development Projects in lmi Kura Sub-City:

Lot A1 Plot 4 and 7: ICE Home Development and Construction PLC will build a G+6 shopping mall and 1,200 residential units on 5.7 hectares, with a total investment of 32.37 billion birr.

Lot A1 Plot 12: OVID Chaka Housing Development PLC will construct two shopping malls and 1,852 homes across 9.45 hectares at a cost of 23.06 billion birr.

Additional Plot: The Ethiopian Construction Works Corporation, in collaboration with private investors, will develop 1,123 homes and 48 shops on 9.45 hectares for 11.7 billion birr.

Teyt Bet Housing Project in Arada Sub-City: OVID Kings Tower PLC will develop 1,823 housing units and a shopping center on 4.5 hectares for 4.31 billion birr.

Tourism Projects: Awash Waterfall Resort: Boston Partners PLC will build 50 luxury villas and related infrastructure on 11.6 hectares in Awash Park, investing 813.51 million birr.

Denbi Lake Lodge: MIDROC Investment Group will construct 15 bungalows, a restaurant, and amenities on 36.67 hectares for 125.89 million birr. Integrated Diagnostic Services Center: Aimed at boosting healthcare access, this $5.2 million initiative will provide laboratory and imaging services across six hospitals, including St. Peter’s Specialized Hospital. It will be executed by a consortium of Ceraba Lancet Africa, International Clinical Laboratories, and Pioneer Diagnostic Center.

The government has identified 34 projects across energy, transport, health, housing, logistics, and tourism as suitable for PPP implementation. These projects are at different stages, with selected developers expected to secure financing through loans and equity investments.

As part of this framework, on August 17, 2024, Ethiopia signed a power purchase and operation agreement with AMEA Power Aysha Wind One PLC for the USD620 million Aysha-1 Wind Power Project. The 300 MW project will be implemented under the MGA (Management Grant Agreement) model.

The Ministry’s Economic Development Department will continue to coordinate with stakeholders to ensure all PPP projects meet environmental and regulatory prerequisites. Future projects will also be screened and supported under this expanding development framework.