Authorities in charge of the federal public-private partnership (PPP) initiative are mulling over selecting foreign investors looking to participate in joint projects as several awarded to prospective investors through standard bidding procedures failed to materialise.

A bill allowing federal authorities to circumvent public biddings will be tabled to Parliament when lawmakers return from recess next month. Such legislation will pave the road for foreign investors to take on projects through negotiations. The 11-member Board under Finance Minister Ahmed Shide will be responsible for approving negotiated outcomes and awarding projects directly.

Public agencies tabling project proposals will be mandated to negotiate directly with prospective investors, according to Habtamu Mengesha, director of legal affairs at the Ministry of Finance.

“The bill looks to simplify the selection procedure and bridge financing gaps,” Habtamu told Fortune.

A widening budget deficit is a growing worry for federal officials when external loans and grants are diminishing as disbursements from foreign creditors have been on hold. The Import-Export Bank of China suspended the disbursement of 339 million dollars as it reviews Ethiopia’s debt external standing. The move has delayed the construction of eight mega ventures, including the 10Km road linking Qality and Tulu Dimtu on the outskirts of Addis Abeba.

A year after construction activities stopped, the Addis Abeba City Council approved a 267 million Br budget to resume the project’s construction.

The bill is hoped to energise federal officials to search for prospective investors who could finance vital infrastructure projects. Officials in the housing and transportation sectors are more pleased with the proposal awarding foreign investors under the public-private partnership.

“Expressway projects are well-suited to the scheme,” said Yetimgeta Asrat, deputy head of the Ethiopian Roads Administration (ERA). “They generate revenues.”

The Roads Administration received a nod from the board to pursue three road projects. The Adama-Awash Expressway, part of the 357Km road linking Adama with Dire Dawa, is projected to cost 1.2 billion dollars. However, ERA officials abandoned their plans last year after securing 89 million dollars in credit from the African Development Bank (AfDB). The loan covers 80pc of the estimated 6.7 billion Br cost for the 60Km Adama-Awash segment.

Construction on the road, which lies along the Ethio-Djibouti transport corridor, kicked off last year. JMC Construction, a joint venture between an Indian firm and a Chinese state-owned company, is contracted to complete the work in four years.

“We’re trying to identify which projects can be executed under the public-private scheme,” said Yetimgeta.

Yetimgeta and his colleagues are considering the remaining segments of the Awash Mieso (72Km) and Mieso-Dire Dawa expressways for investment under the public-private scheme. He disclosed that ERA faces a financing gap for executing mega-projects.