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The Ethiopian Government recognizes that the delivery of infrastructural services, such as transport (road, rail and air), telecommunications and postal services, energy and water have a long way to go before they meet the demand of investors.

It is, therefore, making heavy investment in infrastructure development through on-going power, telecommunications and road sector development programs to relieve supply constraints and improve quality of services. Besides, it is widening the opportunities for private sector participation in the development of infrastructural facilities.

The Government is planning to assign 40 per cent of road maintenance works to the private sector contractors in the short term and increase the level to 100 per cent in 10 years. The power sector program has a plan to increase power generation capacity from 327MW to 663MW by 2004/05. The private sector has a role to play by involving in generation and off-grid transmission and distribution of electrical energy as well as generation of electricity to supply the national grid based on power purchase agreement with government.

In recognition of the huge investment capital required to develop infrastructural facilities that are crucial for economic development, the Government is considering viable options in the short-to medium-term. The short-and medium-term alternatives include finding a strategic partner in the operation and development of telecommunication infrastructure.

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