The Ministry of Finance plans to engage in a public private partnership (PPP) engagement in railway infrastructure with domestic and foreign investors. The sector bankrupted the nation by swallowing extra expenses so that the revenue didn’t even cover its operation cost.
The government is working to tackle the distress quickly by reforming policy through technical support from the World Bank, Ahmed Shide, Minister of Finance said.
The Ethiopian government provided 15 percent equity for the Addis Ababa Light railway transit (LRT) project and China’s Export-Import Bank, an arm of the Chinese government, paid for the rest of the USD 475 million cost aiming at solving Addis Ababa’s transport problems which was completed earlier in 2015 as the first fully-electrified line in Africa.
Addis Ababa-Djibouti cross-border electrified standard gauge railway that runs over 700 km is another project which is funded by Exim Bank. It is part of the Chinese Belt and Road Initiative.
“We need to further strengthen our capacity in planning, implementation, and maintaining various projects as well as expanding existing projects, and building new partnerships to realize our ambitions,” the minister said to lawmakers.
“The aim of the PPP is to expand public services, reduce project delays, and increase resource utilization and minimize debt stress,” said Haji Ibssa Corporate Communication Director at the Ministry of Finance.
The country’s external and domestic accumulated debt hit 27 billion USD which funded different projects including the Addis Ababa Light railway and the Etho- Djibouti railway.
According to the Ministry of Finance, 9.4 billion birr is paid for external debt in this nine months of the budget year.
Presenting opportunities for public private partnership (PPP) to take part in railway and other projects requires study and analysis as we are entering the scheme for the first time Hajji adds.
The decision to liberalize the economy and privatize state-owned companies in telecommunications, aviation and banking, Airlines, Ethiopian Shipping & Logistics Services Enterprise and Ethiopian Electric Power as part of Prime Minister Abiy’s reform is underway by establishing technical and steering committees under the Finance Ministry, as well as a macro committee under the office of Prime Minister.
Currently there are Public-Private Partnerships wroth USD 7 billion in three road and 14 power supply projects.
Public-private partnership in store for Addis rail line
Condos being rented as guesthouses, offices
Exact numbers are unknown, but several condos in Gerji, Lideta, Baldras, Goterra, Summit and Basha Welde are providing guest house service for diaspora and foreigners and charging between 13,000 and 18,000 birr a month.
According to a survey by Capital, the guests in these condos stay from one week to three months. The houses come fully furnished and have working facilities. Ethiopian law requires a competency certificate from the Culture and Tourism Bureau to open a guest house. An unlicensed guest house can result in a fine or closure.
However, due to low supervision from the government and the high cost of hotels and guest houses, people choose condominium houses to get a better deal. This has raised concerns about safety and standards of accommodation.
The condos which were first built for middle and lower income people are also being rented for office space.
Capital asked Kassuan Abera the Trade Regulation Head at the Addis Ababa Trade and industry Bureau what the government is doing about this situation.
“When someone rents a house they don’t need a license as you do for a guest house so many people are doing this and then lying about what the property is being used for. They will say they are renting it to a friend so we have a hard time combating the problem, our plan is to work with the Cultural Bureau.”
According to Abebe Sahlu, Legal Officer for the Addis Ababa Tourism and Culture Bureau the illegal guest houses in the condos are the result of misdirection.
“Some people come to our sub city offices and ask to open a guest house in the condo but we tell them that the condos are for living not for hotel or guest house services but some of them neglect this and start the service without permission, This is absolutely wrong and all stakeholders should work to stop this.’’
A consultant in the tourism and hotel industry urged the government to regulate the sector properly.
Kumneger Teketel Director of Ozzie Business and Hospitality Group said “when something is done in the hotel or guest house sector it must be regulated and it must be taxed otherwise legitimate businesses will be discouraged.’’
Ethiopia starts Cholera vaccination
The Ethiopian Public Health Institute (EPHI) disclosed that over 700 thousand vaccinations have been imported to start vaccinating people against Cholera next week now that people have died and the disease has been confirmed in four regions and Addis Ababa.
According to EPHI, the epidemic is caused by Vibrio cholera which the institute has confirmed by taking samples from 12 people in four regions.
EPHI reported that, Vibrio cholera caused 15 people to lose their life. This included a single person in Oromia and 14 in Amhara regional states and around 400 people in Oromiya, Amhara, Tigray, and Somali regional states are suspected of having the illness.
Beyene Moges, Deputy Vice Director of the institute says the highest number of cases are reported from Oromia (138), including Harerge zone, Chiro and Oda Bulti wereda in western Oromiya in addition to Bedesa in Oromia regional states where a single person lost his life.
In Addis Ababa a total of 13 Cholera cases are reported from Akaki Kality, Addis Ketema and Nifas-silk Lafto sub cities. Those people are being treated.
Eight cases have been also reported, Kilete Awlao wereda in Eastern part of Tigray and 33 in Beklomay wereda in Somalia regional states.
“All necessary and available medical equipment has been distributed through the Ethiopian Pharmaceutical Funds and Supply Agency for quick prevention mechanism,” Moges added.
The vaccination is given to those considered highly venerable, including street children, people in prison and in camps where Internally Displaced People are sheltered.
The institute advised to take precautionary measures to reduce the risk of contracting cholera, by washing hands regularly, drinking only bottled or purified water, and avoid eating raw or under cooked foods.
The institute advised the public to help prevent the spread of the disease by drinking safe water, washing hands with soap and using latrines properly.
Vibrio cholera is one of the viruses that cause “AWD” which the government previously hesitated to label when previous outbreaks occurred. However Minister of Health Amir Aman (MD) named the epidemic cholera and AWD during last Thursday’s discussion at the Prime Minister’s Office.
According to the Deputy Director, a nationwide task force has been established under the Ministry of Health and Office of the Mayor of Addis Ababa to prevent and treat the epidemic.
Refugee and internal displacement camps host people in crowded, unsanitary conditions, creating breeding grounds for the disease to spread.
Cholera remains a global threat to public health and an indicator of inequality and lack of social development.
Researchers have estimated that every year, there are roughly 1.3 to 4 million cases, and 21, 000 to 143,000 deaths worldwide due to Cholera.