The partnership between governments and the private sector for development of public infrastructure is typically designated as Public Private Partnership. Globally, Public Private Partnerships are used in the form of long-term contractual arrangements between public authorities and private entities for the development and delivery of public services, and they are implemented within appropriate framework designed for that purpose.
Though the Ethiopian government already introduced Public Private Partnerships through the enactment of the Ethiopian Federal Government Procurement and Property Administration Proclamation No. 649/2009 in September 2009, the legislation did not provide for the legal framework for the implementation of Public Private Partnerships ‒ except that it defined the meaning of such a partnership. It is almost a decade later that the Ethiopian government formulated its policy toward Public Private Partnerships in August 2017 and further enacted Public Private Partnership Proclamation No. 1076/2018 in February 2018.
Since then, Ethiopia is trying to develop Public Private Partnership projects and cope with the growing demand for public infrastructure in the country.