PPIAF Support to Private Sector Participation in the Irrigation Sector in Ethiopia

PPIAF support to two activities in Ethiopia has led to private sector participation in the irrigation sector, which is aimed at improving availability of water for farmers, and increasing food quality and security for Ethiopian residents. In 2006 PPIAF provided support to the government of Ethiopia to prepare an action plan to develop irrigation public-private partnerships (PPPs) in Megech, Ribb River, and Anger Valley. Following agreement on the appropriate PPP model,PPIAF provided additional support in 2010 to draft bidding documents and the model transaction agreement for the Megech-Seraba Irrigation and Drainage Project in North Gondar. In April 2012 the government of Ethiopia signed a contract to engage French operator BRL Ingénierie to undertake operations and maintenance (O&M) services for the Megech-Seraba project. The $8 million eight-year enhanced management contract is expected to increase water availability to over 6,000 landholdings over a 4,040 hectare irrigated area.