Sunday, May 19, 2024
BusinessPPP approves six solar projects worthUSD 800 mil

PPP approves six solar projects worthUSD 800 mil

A total of 16 PPP projectsslated to cost USD6.5bln

The newly formed Public Private Partnership (PPP) Board has approved six solar energy projects at a cost of USD 798 million with capacitytogenerate some 750 megawatt of electricity. 

TeshomeTafesse (PhD), State Minister of Finance, told reporters on Thursdaythat the PPP Board has approved two of the six projects,and to receive term of proposal from international bidders. The remaining four will be receiving term of qualification for the foreseeable future considerations.

According to the state minister, the two solar projects which are about to be developed are located in the Afar and Somali Regional States. Both “Scaling Solar Gad” and “Scaling Solar Dicheto” are the name of the two projects expected to be developed in Somali and Afar Regions, respectively. Both of these projects will be developed through the Independent Power Purchase (IPP) agreement frameworks.

The International Finance Corporation (IFC) is behind the process with regards to these two solar energy projects which will be entering into the second cycle of development. In the first phase, both are projected to generate 125 MW each; and bothwill consumea total investment of USD 150 million.

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These projects were studied with the help of the World Bank Group (WBG) prior to the formation of the PPP and the IFC has been keen to provide technical assistances.Currently, the corporation which is well known as the private sector arm of the WBG is approaching potential companies to partake in the bidding process. According to Teshome, some 140 international companies had expressed interest and through the evaluation, 28 major contractors will be invited to submit proposals.

Atotal of eight solar projects valued at USD 1.2 billion have been identified for PPP investment with capacityto generatesome 1000MW of electricity.

In his previous interview with The Reporter, Teshome was quoted saying;“the PPP Board has identified 16 mega projects and out of those, five hydro power projects are in the pipeline”. The hydro projects have the total capacity of generating some 2000MWs of electric power and will require a total investment of USD four billion. In addition, three major express roadprojects stretching 357 kilometers and costing USD 1.12 billionare also in pipeline.Hence, the total of 16 PPP projects slated by the Board is estimated to cost some USD 6.5 billion. 

The PPP Board which comprise of ten executive members has a representation of seven ministers and a PPP director general constituting of two more representatives from the private sector.

Previously, Teshome was the director general of the PPP established under the Ministry of Finance where he is now a state minister who oversees the activities of the PPP directorate general. The PPP came a long way, until the past six months, when it became institutionalized with governing laws and policies in place. The PPP is well equipped with a proclamation, a regulatory law that further defines the generally ascribed rules proclaimed.

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