Trend in the Economy:
The Infrastructure deficit:
What are Public Private Partnerships and PPP frameworks ?
Public Private Partnerships in Ethiopia:
Fig 4. How Chile succeed in PPP:
Secondly, they updated the decree in to a concessions law to accommodate the challenges they faced along their way, and through the law they set out the institutional responsibilities and processes for developing and implementing PPPs. They formed a Concessions Unit in the Ministry of Public Works (MOP) that act as an implementing agency for all PPPs in the country. They then authorize this unit to manage the PPP programs from start to the PPP’s lifetime with clearly-defined processes.
Thirdly, the National Planning Authority is tasked to review and approve the technical and economic analysis of the project employing the advisory of technical groups.
Fifthly, the Treasury makes all the payments established in the PPP contract in accordance with the procedures and milestones stipulated in the PPP contract.
Finally, they formed a technical panel to resolve disputes that emerge during the implementation of the project. If the solution proposed by the technical panel does not resolve the problem, the parties are allowed to escalate their complaints to the Arbitration Commission or the Appeals Court of Santiago.
In conclusion, a clearly defined PPP framework, institutional responsibilities, processes and top government commitments, builds the confidence and trust of the private sector in Chile to put their capital to projects of total investment value of USS$14 billion to public private partnership arrangements for a longer term, and ultimately a success for Chile.
Written By: Tigabu Atalo
Power, Energy and Infrastructure Consultant
Experienced Projects Manager
Ethiopian Chamber of Commerce and Sectoral Association