The Ministry of Finance and Economic Cooperation of Ethiopia stated that it is engaged in a detailed study of 50 potential projects for public-private partnerships (PPP) with the help of the World Bank Group (WBG).
According to the communications director of MoFEC, Ato Haji Ibsa, the ministry was successful in completing structural and legal frameworks for PPPs in fiscal year 2017/18. The communications director said: "Of the 50 projects, 26 are in the final phase and international bids are announced shortly." "Lack of research prior to starting a project and less bargaining power costs the government," he added.
Over the past 12 months, the economy was challenged by continued inflation and export earnings in the 2017/18 fiscal year decreased by 2.8% (USD 78.9 million). In the past fiscal year, the Birr government wanted to collect 237 billion from tax and non-tax revenues. However, it only collected Birr 108.6 billion.
According to the communication director, as a result of a high budget deficit in the past fiscal year, the payment of a number of mega projects has been postponed to the next fiscal year. The fiscal year 2017/18 saw a budget deficit of 53.8 billion Birr that will be transferred to the current fiscal year.
The government was forced to seek loans to fill the budget deficit. The ministry is planning to improve tax policy to increase revenues. According to a report from the ministry, tax reforms will take place in the next fiscal year.
Source: Capital Ethiopia