FEDERAL NEGARIT GAZETA

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

>.rt."t '¼""-r •P'f•r. ¥1, n>v"t•f·l\' .e &.,.e.,1,.11,,: Yi. 'f''t11..,u...,: cr·nl'IJ1 I0 1h Year No. 57
},,JI.I\ >.Oll-,h?"/1. t~ •n :rntl~ '¼.9" f,"/1lMl ·t•mJ-,r,:f 9"t1C fl,•)· mlJ,r.~:,. f(l)nl ADDIS ABABA-2 nd August, 2004

CONTENTS

Proclamation No.412/2004

fT t. .e ii. :r .en:li 't«.

f OD'}"I p,:,. r A 0 '1 ·1- .t'..· c ~.y. ··}~ A Proclamation to Provide for The Establishment of The
,f>.f>n1n1~ 'lflP'A"I'}'} I\OIJ'k'k'I" !'ttJnl >i'P :e_; Privatization and Public Enterprises Supervising
11'". littxM Authority ... Page . 2791

PROCLAMATION NO. 412 /2004.

rT?.e'ii.:t-.et1. 7i"J'i' roo,..,p,."fw rA"7:t- ~c~-,.. 'f A PROCLAMATION TO PROVIDE FOR THE
ESTABLISHMENT OF THE PRIVATIZATION AND
-,..y. "l"l t flt\ P' A "l"J1 t\ "7cJ:cJ:'I° f (l)"l "1 'P ~
PUBLIC ENTERPRISES SUPERVISING AUTHORITY

y ft a,.'} '1. c,· ,,. WHEREAS, it has become necessary to change the
OD'}°} ,P' •l- {1J\J1'j' 0 2, HC~ 0

role and participation of the state in the economy and to

.,.~:,-~ {lODftfflT'i' P°lt\-1 h~ft hti'i' 0 2. Y;Ci'i
encourage the expansion of the private sector and
{l '/i'l4-4-T
0
r h1t~1 Phti'.' 0 2. A 0 •1:,. 0
'/4,m'}
thereby promote the economic development of the
hi'l~i\ 1. {l<IDff ~:
Country;
PA "/1· Y:C~·Y.'f flOD1°1PT ,er•:r PC WHEREAS, as long as public enterp,ises - to
h{)I-J(l. Y:t.{) ·rlll~~t'i' hTt•t. tr',ar (lODc/>fnA
continue under state ownership, it is necessary to
r1nt~1 rh·}~{):,.t A 0 ·1·l- {)·rt-·t·>r. n"·1rit.1t9"', provide them with such guidance and support so as to
ht'i'.' 2..f'<f! >tY:1T 0°'/'J°fll•l• /.1Y: -,.1(lllV} <1</. 'i
0
enable them to be competitive and profitable a,.
h '}~61>}.(JJ~ fl. 0 '1 Y:t. °1 P0 ?••ffl ":i·A . >t<JVl,.C'i t.• :J<t: thereby play appropriate role in the implementation of
OD{)m :,- fl"7fl~ft 1-; the Country's industrial development strategy and the
enhancement of economic growth;

h 'IH.U">
'¼lt 0 '19''f tt 0 'l{)~?t9" r h ·l-r-~ .r WHEREAS, to achieve these objectives, it has
T?.e'ii.:r ,e,1, 7i"> h.l1c'l.. ">'i' f ODJ°I PT r A 0 '/·l- become necessary to amalgamate the Ethiopian
~c ~.Y· 'f ,,_.4',n7n7t, 'lfl.PA"711 (1°'/'P'/.r: r~Tt-,e Privatization Agency and the Public Enterprises
'ii..-r f,H. 7i1 Tr.'°11,-0V•'} .}1~~7''}"',' P<ID'}°]/.U•l· Supervising Authority with a view to coordinating the
f A 0 7T ~c :~.Y.
'f '} p,wcf',a1mc ·t·"l'1<: "'14•',' ~f'>l- implementation of the Privatization Programme with the
no'lll~fl 1-: activities of supervising public enterprise:
 Federal Negarit Gazcta ..... No. s,7 2"d August. 2004 ......... Pag 2792

Cl>'t. .-,..f-A-- J1 ~.e.,&--il'e >t 'l°ht.-0..f'e 6T111\.h NOW, THEREFORE, in. accordance with Article
rh1 OD'}°lfl:,. h'><f>?i 9,'l;J~/ nowt,.:,. roih-tt\a>- 55(1}·6f the Constitution of the Federal Democratic
;ra>-lA:: Republic of Ethiopia, it is hereby proclaimed as follows:

1. Short Title
\,,

,eu h'P.e- "rT&--.efi.;J,,en. 7i'}'i' r 00 1°1/-'-'•r This Proclamation may be cited as the
rA 7:,.0
~C~.Y.':f 1•.f>n1n1t, fJt\FAan ''Privatization and Public Enterprises Supervising
°'l'k'koi,e h'P:e: <ll'f'C iWH!(iiiv1'i. -t-11" 11
0
Authority Establishment Proclamation No.
412/2004."
l\,m<f>fl .e':filA::
2. Definitions
,}-c~oi
r :J>f\. >t1'11l l\.'I ,}-c1-?" r 0
'f• .P(lmar In this Proclamation, unless the context requires
'1Alf', (lr)rf'<f>C ClttU h'P~ aJ•r)'f':
otherwise:
1/ the word ''privatization" shall have the meaninL
?;/ «Tt.-.eii..+ .en. 7i'}» 0 7/l.-,.. r 00 ') //-'-'•l· 0
{~A
assigned to it under Article 2( 1) of the
°'1.-,.. ~c.e-.Y.:Y.1 w~ °IA flll 711wc 0

Privatization of Public Enterprises Proclamation

(lwn1ffl• h'P:e: <l?rrc l!f~'k/ H!fll! h'J<f>?i
No. 146/1998;
I/bl r-tomm- :,.c~ 0 'L .e<rt.'PA;
ff../ «roo'}..,,,,,.,.-,.. rA 0 7.-,.. ~c.e-:,.» 0 7t\.-,..
2/ "public enterprise" means an enterprise as defined
(lOD'}°IF.-,.. rA 0 7.-,.. ~c:e:.Y.:Y. h'P:e: <l?rrc
under Article 2( 1) of the Public Enterprises
fi'l;Jiiifitfi h'><f>?i Jl1li1 r•f' 00 t\h-ta>·'} Proclamation No. 25/1992, or a wholly state
:,.c~ 0 'L r 0 ?.,,f~ ii ~:C .e-·r
OJ .e,9'' owned share company, but excluding those
hhflf-c:';I: {IU•h• (lo •ll·
0 (ltm')"JF•l· enterprises for which specific supervising
fJt\Cl. .-,...,.-,.. r·t- .fll· Mio. f-'} 0 7·rnc ri. tr·> authorities are designated by other laws of
Clt\.t\ :Y. m°l:Y. w ,e'J" 0 00 1°1 /-'-'•r m·ti'l.
0
decisions of the Government;
r•t-t\r -t.f>llllll6 fJt\FA 11n r-tl'lr 00 il:f(I}-'}
.f:C .e-.Y• "f h ,eQJ. 'I°C 'I" ; 3/ "share company" means a share company partially
Cl «h1111_f-'} 0
7•)(lC» 7t\.-,..
0
Clh&,A owned by the state, but excluding those share
0001.., ,,,,.,.-,.. fJt\n.:,..,.-,.. r-t .f ti hho. r-1 companies in which the state owns shares
°'/•)(lC O.lf'} OD'}°IF:,. ClA ~C:.~.Y.':f-
0
'/:,. through public enterprises;
.' /T</1-J,e .,.-,.. 'lt\>tho. f-'} flf'tfJ:f:a>·'} hhll. f-'J
0
7·)(11,.:,. it,e'w.'J"C9''; 4/ "board of management" means a board of
QI «f Fir h 00 lrC nc~» 0 '/ll.-,.. f<.TlJ'} '?/-'-'•l· management of a public enterprise and includes
rA 1:,. f:c.e,:,. r ,,,,.,1,. >, 1,.c oc~
0 00 board of directors of a wholly state owned shar
o.tr·> {ID<n- o{ID•n• 0 ·1..,,,,,.,:,. fJt\n.:,..,.-,..
00 company;
r-t .fH hhO. f-'} 7·rnc 0
f >tt.h·N~:Y.
nc .r.-1 .eblJ.'I" &--A: 5/ "Ministry" and "Minister" means the Ministry and
{;I «°t'l..fl1;C» 'h'i' « 7.'l..fl.-,..C» 7/l:,. 'h')~
0 0 Minister of Trade and Industry respectively.
:,, ~'I" -th-tn- f'>°I ~'i' >t. ·>~fl.-,..6
0
"1. 'l. fl 1; C 'h 'i' °t 'l. fl:,. C ',a>· :: 3. Establishment

r. ~**r I/ The Privatization and Public Enterprises

Authority (hereinafter referred to as the
bl fT/r,efi..+,e11,7i'}', fOD'} ;.I-'-':,.
0
ft\ 0 7.-,.. "Authority") is hereby established as an
.f:C.e-•Y.."f -t,f,a,n16 'lt\P'At11'} lhH.U autonomous federal government office having
Cl~il «'lt\FAlll'>» 'hr·t·fJt\ roimt.-1 f m°I its own legal personality.
(1(1}-',:,. ,ft\a>- t,.(l.') f :J:t\ f ~fo&--A
<W'J°IF.-,.. llDF6.f n,:,. tfc:' Otl:J i't'P:£~.:
·t·'J:c#:~A::
11' ,._ 1..·.·1r.·.·
_!!_-,.: . /..Y.. 1.-A 1:>t.."f- .,,i 0 1 4:'f'r: y,_·_. ,1,9•11. K_ ·.t. -~·1 _,_,_,_·_,·_;_·_,. 'L?" 1··e'll erd• I N
: egan t c·1a1c t a . . . . N o. )-7 ~
,nct A ugust, 2004 ........ p ag]j 2793

JV '11\P'A"l'i• ·f·m6'i-t: 1\ 0 '/.'i.{H;-;.. ,e,1r'iA:: 2/ The Authority shall be accountable to the

Ministry.

4. Head Office

r'll\P'A"l'i- 'P'i uvP'6.f nJt· n;°'.v..r, i,n11 The Authority shall have its head office in Addis
lf'r >t '}P,flt.'11. 'i-t: Cl 0 '1~·:f(lr9° p,<,:1,. :1,c} Ababa and may have branch offices elsewhere as
liliJ.<t: l\.'i' t.m· ,e·f'IA:: 11, ty be necessary.

5. Objectives

I he 1\11thority shall have the following

< lhin·1 i\ cs:

iii rT1,.,e,,i,;J·,e11:li·} TC'°ll,-9" {'t.flJ'i"ll"':,. : I., lo 11nplc111e11l tile Privatization Programme in

rt, ;•1·l· ~-c :~:.y. ·-r ·,- m r. .., A I\ ,,.,,,me accnrdance with the privatization of p1,hli,•
(lW"lal· h'P:e: 011 0-•t.·l· "/A'A·'j •t·A 11 11. enterprises legislation and in a tra1\sparent-
OU''i un'}'l ~- 7, 1,V,. &.7'9'' rai1.r.: /. "J: and efficient manner;

2/ to support public enterprises in attammg

ii rcm'}'?P'•l· PA"'/•} ~-c::()_:.y.·,r )'t:,.,..,:,:m•·}
higher level ( ) r capacity utilization and the
n•t•i'il\ Y.t.~ ,.,,:,,9» 'I,(-', ;>,·,-.v.••em·/\· ll"'/1)
en1ployment or better management systems
:,f-A'i {'·f•i'ii'ii\• P0 '/'1Y.:an•,-:,. /"C'}·Y· :f'}','
a11d technology and thereby to improve their
,t h'i' i\.. j.)~ '} nuvm c/>9" r ,..,_, 1,. ht.~ 'A "'fl:(J)•
pcrfonnancc and to max1m1ze their
>t '} P,_i'i7i A 'i r 'I er ,1r m. ·l· ;>,·,-Pi••f m 1 m• achievements:
rU1J11n
3/ to cause the establishment of new enterprises
E1 n1·i\.r~ 9''h'> .r•r• 1· r"1A 'li\1MH· ·.r /\.')·/· in sectors where private investors could not
~q:,:m. 'lA:J:i\, i\l,.b':' 0 ?,m· >tm:J''I.P, participate for various reasons and which will
A '/7' "'/',cf, I\. lf ',. (1°'1. "·f I\· 110:: :r- )'t ,lj,V,_(l
0 be bottlenecks for the overall economic
r A"'J•l· J?.·c :~-r-
1· 7, '},fi)I:*""' r"'J Y: 1. "I: clc\'clorrnent:

QI rm '}°11"·l·
1 PA"'/•} J'..·c:()_:.y.:f•} 1,a",~-1: (1 l c;upcrv1sc lite management or public
r,.mcf>"lmC: 7, ~- e11t1_Tprises;

'{;J 0,, 0 , . . , P'·l· PA 0 ·1·l· J?.•c :r,; :~-r- M1,u•-·,- 5/ to protect the ownership rights of the_ st:• 1 "
public enterprises and share companies.
;'l
-
"'J·~n1,.•l· pau•,-..,,..,,,}•,- i''li\Ct·1·i·l- 0 "·n:,.
r"'lflhnc::
• 6. Powers and Duties

The Authority shall have the following powers and

dutl . . ·:~·
'll\P'A"l'i· P0 '1.h1·i\•1· l',,A"r}'i ·l·"/'lC'.-f-
,e 'i' ~ ;r A ; II to implement the a Privatization Programme
in accordance with the provisions of the
111 rTt.J?.,i;t-.eu.·o·} Tr.'"J/,.oD•'} Clh'P.~: privatization of Public Enterprises
4:'l'C: fl.r::rkl.W.f.1fl. Jt:1:r1,9 1 :-;. rmu,1.·)· Proclamation No. 146/1998; and, without
.f fl/,.. 'R"'l /.\ : r II. tJ _<?;'} .'J'I, hm.P 'I J', >, '1 :, '1<: ptTjudicc tu the generality of this provision,
>t 1J.'.1·m0</> U''i': lu:
 h:dc1 al Negar11 , ,a1cta No , 7 2"" August. 200-t l'ag 279-1

lJ. (l)J.'. '?A f 0 'l,tf(IJ~ fOD'}'?/P7" f A. 0 '/7" a) submit, to the Ministry, the list of
.r:c~.Y."f'>'i f htu\r-1 f,t•:r9'":f·'> public enterprises and government
1f C1f C /\ 0 'l. 'I. {)-t; <;. h:,. /.(l .f{)(IJ(l', A : shareholdings to be privatized, and
obtain approval thereof;
,\. fOD'}'?/P7" f A. 0 '/•r ~c :~-Y·
":f•'} (DJ.'.
'?A /\ 0 '/tf(IJC f 0 '1.J:'{l/..{\ 1· •} _r:uo b) cause the undertaking of all necessar:
1l'?~·f-"f tJ.t'\· h'>~.h','tn',. J;'Y.C;JA: preparatory works for the privatization of'
enterprises;
"'· OTt-f.'ii:r f,tt.'/i'} 'l/\1MH· ":f·
f 0 '1.IJ·t~
fO'l,(J)~f. <;.f):f(J}-'} ODODH~ 9'T f,tO{) c) determine bid evaluation criteria for the
'i A ; f h 1 C (I}-{) '1' fl /\ 1Ml .Y. ".f -t ti :,. l.': ?" selection of investors participating in
/\.Ot..+.+ f 0 'l."fA07"'} OD·}1.r: f,c/>f, privatization; and design ways and means
IJA; of encouraging domestic investors to
participate 111 the privatization of
enterprises;
OD. T t• f. 'ii :r ,r, tt. 'Ii.,.'> " 0 '1 ri 1..?. 'I" r "'I. .(' (l
/../.\1- (l',l'."f'} .fU,'.JlfA.:
d) prepare necessary documents to be used
in the privatization process;
IP fTt-f.'ii.+ f,H. '/i'} Tr.''?1,-0l>•'i hi..~
'/.Ol,. Oih1111 h'>>t:rm:,. l\or1.r:t.'?
e) take all necessary measures to publicize
f 'l,,f{)/..A 1- hC9''1f 9'".f '} f,(JJ{l~A,
0

the Privatization Programme and its

implementation;
·r
t. . f .r; '", t. T /,. f, 'ii ;r f, If. ·1n t, :,. A O"'/ Y,;
t. '? OTt-f,O.;r f,tl, 'li'I• f'·t·IJ·t·~ 'lt\lJ
f) through post privatization monitoring.
'1l·f-"f f 1'.l.:fa>·'} '? Y.. :J· 9'":i· "'/h{lt,.
ensure compliance of iP· "·' )rs 1

r(J}-'} J' /.,'.J'?nlA.: Tt•f, ,i:J· f,u:li'I•

obligations. and undertake impact
.<>~h,t/\(1)-'} hm:J'i\f. a>·m,•l- .e·w0
assessment of the privatization m
'?o'//,\;
general;

I. h'?fJ1l'l7" , i\ r(D- r OD'}°' ,IP:,. r A 0 .,:,. 2/ Without prejudice to the relevant provisions of
.r:c~.Y."f h'P~ <ll'l'C !l<;!Htrii•g h'i' the Public Enterprises Proclamation
f /\,1\o "f m_.,"f .r:1.'.11,9'".f h'}f.·tm0"1 No.25/1992 and other laws, to:
(f',T

a) undertake project studies for the

1,. ntt.u h'P~ h'>cr?i l;1r.1 ,IIJ,P/.•r establishment of enterprises pursuant tu
f/.\ 77" .r:c.~f-"f'} t\ 0 '/cJ:cJ:,r
0
fT(!'l Article 5(3) of this Proclamation:
t,:,. 'f''if-".f'} ft-,Y,~/,\;
b) evaluate and submit to the Ministry, for
"· hOD'>'?.!P:,. .'.Jc 0:,,1~:,. h.'fn(l:r its approval, project proposals presented
"
0
., .r:1. °' r 'l.t..A 1-
0
'l/\1111-,-:r r"'I.J'4• hy investors intending to invest in
c,.1.r(J}-'}• rTr.'~tt:r 'ltJ(l:f. •19""}'1u partnership with the government; and
1\ '1.'l.{)-t;~ h:t>Cfl J'{l?..r; :PA: ·t· J'lt•'P.
0 0
follow up the implementation of same:
r
'I :J· (I}- '} ?" f, h;r -ti\ A :
c) undertake studies and provide guidelines
"'· f OD'}'? /P7" f A 0
'/7" .r:c.~.Y- ~~ '}
h:t>9" with a view to as~;stinr ·"1hlic
f\OD1'}{)7" '}'','f•".f'} (10'/t-,Y,_r:
fO'l,(._r: enterprises in building their capacities;
hm:J'i\f, ODODl,.f9'".f'} t,(lnlf.\;
 Federal Negarit C,azeta. No. 57 2nd August. 2004 ........ Page 2795

on, f'Uo1°1P''T f'&\ 0 '1-r

~c,:.:,. f'P't• >tunt.c d) appoint and remove the chairpersons and
(lC~ 1Hl/'tO.'i >t'll\-r1 ,eoo~(I/;\: ..f"1ti&\= members of boards of management of public
>tOl\rOr19" .f',Wfl'iA; tf'<i'9" f'>tq>:~ •f?'f'C enterprises and fix their fees; provided,
'li"?;/Ittfit!J f'>t14>1' HVil ~1:n. M10.f however, that the provisions of Article 12(2)
<j':-;. on•(\• (loo•(\. (l Uo'} p.1."f• flt\(l •l·•,·l·
0
/ of Proclamation No.25/199:::: "hall apply to
f'·t· YH- r >tho. r-1 ,,.,,.,nc r Pi.t.t11·c•·f flc .r.· the appointment of members of board of
>t q" ."f· 1 ?" r. q fl "'I.,.,,,(\ h •l- ?" •, ·..:. :,. 0 'l.'n· 1
directors of enterprises the shares of which
Vft.lf'A:
' are wholly state owned;

,,., . r OD'J°l .1» :,, r A 0 7 :,-. ~ c ~ .y. :-;.1 r ar 1'-·

6 e) approve the appointment of external
).?. ,t~l· ?"Y.'l ..f'fJ~:J>A; auditors of public enterprises;

t.. f'OD'J°IFT fA 0 7T ~C~·f·"f-1 iim.41 f) approve corporate targets and investment

I\ f, °} (l T 'i" f' h_ "} 0 fl •l- OD"}-l• h :J, /'. :f· plans of pub 1ic enterprises;
..f''A~ :J>A:
g) follow up and evaluate the performance
of public enterprises;
o. fOD'J°l.t»·l- rA 0 7T ~c:~-r-:r•·> it&.~
'A?" .eh.+i-1\A f,10D°l 0 7A;
h) approve financial reports of public
enterprises as audited by external
7i. 0 (l}-6J.1' )i >t ,tr.·:r- f'OD"}°}
auditors;
FT fA°'IT' f 'f. I) fl
t7·c:,-. ..f'fJ~ :J>A: i) issue directives on writing off the

.,, . fOD'J°l.t»T rA 0 ~c i:.y. :-,-.·1•r

'UHi
accounts of public enterprises and
follmv up their implementations;
hODll1fl {lt\Olf.Ot. llOT lJ.'z.;J-· {TIJUDl,J'
..f'aJ"lA: i't6..~'A0°•"} .eh.+-t·I\A; j) undertake appropriate studies and
submit recommendations to the
0. f'OD"}°}.f»T f/;\ 01/T' ~c:~.y.:f. ') 0 '/'P'/~ Ministry where the amalgamation or
aJf,9" ODh4-6..A O...f'fl6..A°I ·f'1QW•')
division of public enterprises becomes
'f' 'i" T ii '<J 'I. fl. t\ 01f. 'i. fl-t <r . r aJ· I) 'b 'I I) ·ll necessary;
y ~CCIA;
k) undertake studies and implement resun
-t-. t\OD'J.., FT r A 7T ~c :~-:.y. :r r P' 1,.
0
oriented incentive schemes applicable
"OD1,.c flc~r. r ·,.,,~0lJ·1·r i"t'll\·l· 0
to members of boards of management
-f•/,.~ 0 'l,
f'Olf.lf"} (lOJ•{ll,'.,.. l\f, f•/•UlJ of public enterprises and their
wt.-t- f' 70t•.+:r .t»C'¼·l- .eut.:1A =
0
management staff;
(lp (,. I\ f, 'h "} >t (I}- A 9" ..f' Y. C ;J A ;
I) represent the Government in general
:f. UhhO. r-1 °7..,0trT f''lt\hhO. r-c:·f meetings of shareholders of share
1-ri tt OD"}.., F :,-. 1 ,ero hi\ A ; nan•>.., .t» ·l- companies and nominate directors on
Cl h-A fOlf.<f>CCl- f >tt>h·f·C'"f- flC.{'; behalf of the government;
h,ld: it'll\ T'1 .eo.e 0 ·1 A;
m) give final decisions on requests to
..,_ n;,...., ODwt.:,-. ruv1°1P'·r rA 0 '/•r retain, in accordance with the law,
f: C:~ T u.• 1,. -t- 7t "f- '1 'i f 0 '1 'b :~ OD '1 ·l· h q employees and management staff
I\T'1 hm•t.;r t,~U</. hAA 01\,e Clh1 members of public enterprises m
A°lfloT l\f, flt\ 0 7~f'T 0°1.<f>C•(l rr .f'<g service beyond retirement age;
I\ f, f OD bQ. t. i'j (I}-/) ',. f, (l "1 /;\ :
Cl f1flt.-l' Clt\Cl.T f,tf'i'A= Or/;\ ,eqJ<Pf\A; 3/ to own property, enter into contracts, and to·
nflo0 • ,ehl)A = .ehol)A; sue and be sued in its own name;

Q/ '}1\ 0 '/0r') t\ 0 '/{ll,.'1,.9" f"'l..ffl&.A .,. t\.f\. .. :r, 4/ to perform other acts as are requireu for .
-t-°I 'l C' ".)"- ") j' tl 'i" Or 'i' A: : attainment of its objectives.
 Federal Negarit Ciazeta. . . NC1. 57 2nd August, 2004 ........ Pag 2796

7. Organization of the Authority

The Authority shall have:

\.
/ii f'Tt•.e ii.-t-.ett. 7i'} flC .r: lhll tJ O~'°I «flC .r:» 1/ a Privatization Board(hereinafter referred ,.
hf'·t-'lt\ f' 0 Vnt-l: as the "Board")

2/ a Director General to be appointed by the

Government;
El h 1 Y.flt.ti t •,..t; 0°?. tflT't• r '0fo
0 0 • ?''hTA
3/ Deputy Director Generals to be appointed by
'P'i ~t.h+c'f: h'i
the Minister as may be necessary; and ;
QI i-tflt.tita>- IPl,.•t-7/':Y·=
4/ the necessary staff.
,e'f"'.-t-A::
8. Members of the Board

Members of the Board including the Chairperson

fl C ~ (l 1M Q a>-'} Q;l. 9" C' 0 OD'} °7 P' T r 0 ·u1 r Ofh shall be designated by the Government, and their
h '1'1 T .e'f"';rA; <h'l't•rm·9" '1'}.';tlt.'°11.'rf: number shall be determined as may be necessary.
,emn'iA::
9. Powers and Duties of the Board
i. fflC~ P'A"l')'i -t-'7'1C II Without prejudice to the provisions of Sub-
li I r H. u h '} <f> 1i '}().fl h '} •r Yi· l'f!.I Y: '} ;J ·1. Article (2) of this Article the Board shall
h'>Y.+mO<f> lf'f: flC~ r 0 t h·h\••l· have the powers and duties to:
P'A"l1'i -r°J'lC''f .e'f"';rA;
a) oversee and supervise the implement-
0. f'Tt-.eii.:r.ett. 7i'} TC'°//,,OD•'} ht.~1'9" ation of the Privatization Programme;
{l(li'1_e~:,-. _eOD/,.AT ,e~"lmt-A;
b) ensure the orderly execution, the
IL f'Tt-.eii..-t- .ett. 7i~ 'I.Y.·r P'C'¼•r'}'i legality. transparency and efficiency of
tti."J'e~:,-.1 r-t-h+i\: o>-t1P1,.c the privatization process;
°JA?i~T ODCU ti.e f'•f-llD1J.•t.·l·'i
r+<f>i\mt. ODlf~'} .rt..."J°l"lA; c) issue directives necessary for the proper
implementation of the Privatization
th. f'Tt-.eii..-t- .ett. 7i'} TC'°/1,.0D•'} i\ 0 '/c)L Programme;
1'9" rui..rrit.A 1· unODt,.f9'l·'> .ro.r:
:J'A; d) decide or submit recommendations to
the Ministry, as may be appropriate, on
OD hT/,,_en,.,-r ,eH. 7i'} TC' //,,9" hk'{7'9"
0
policy issues relating to the
."JC + f .ettm- 0°7. ~(I. r ;r i\.l'l. ·1->;r- ~-- implementation of the Privatization
i\.e h1~'7'10- U>-1>/'b .enn1A (IJ,e9" Programme;
hi-tfl+ff'T ."JC i\«<J..tfl·t"' f<f>C'lA;
e) examine complaints submitted to it in
IP. h T Ir _e 0. ;r .eH. 7i '} TC' '7 I,. 01>- ht.'{ 1' 9" relation to the execution of thL
."JC + f .ettm- f1°7. <f>CO- i-t0.1: ;1·9''f '} Privatization Programme and give
ODC9"C' hflT~J.'./r'J! U>-t)'b ,e{)fllt\; administrative decisions thereon;

t... rT t-.e o.:r .ett. 7i~1 i\ 0 '11.m·}

'I.Y. ·r 1) take al I other measures necessary to
f'«</..t.~ i°lflt.i\t '1C9"~9''f'} IJ.i\• expedite the privatization process.
,eml)~A::
 Federal Ncgarit Gazeta . . No 57 7. nd August, 2004 ....... Pag 2797

t I r OD'}.., F-' :r r A DI/ :r .i7 c :~ •Y· :.t. ') m.e. .., A 2/ The powers and duties given to the Mana-
{l(\ O'Jtj(f)(.' (l(IJfllOJ• h 'P -~ •I: 'l'C gement Board of Ethiopian Privatization
lil~i!Ii!l1li >t')4•7' j '}CH) >t'}cf,7' /~/ Agency under Sub-Article (2) and (3) of
'h'i l!:/ 1 >t14'7' % '}().{) >t')•f>Yt If:.! h'i' Article 6 and Sub-Article (2) of Article 7 of
h h 'P J~: m- 61!' {l i\ ·f· Ol (I .i7 '}·flt. ·Y· ":t· (l m"1 cir Proclamation No. 146/1998 and the
•• .. .... - - - -1'.- .. provisions of Proclamation No. 1 10/1995 are
h'P ~ <h'f'C ~f.ll H!f.1fi f;'} .:J'l,9J ·}·
,. :r
~ r- ~ .r T t-.e n.
:r ,e.11, 7i 1 .>t. :e:. '} f'l. rF-11,. hereby given to the Board.
hODl,.C (lC.(.7 ·f-f'l'f'+m- fHl~• P'A"11'i
+°lfl~:f Cltt.U h'P:~ ft(lC~ ·f·(l1••,-cpA::
10. Powers and Duties of the Director General
!. r_p50>- >l~tl+C F-'A"l1'i +°lflC
l/ The Director General shall be the chief
~/ ftt.tJ >t'P~ h14'7' fl .i7'}.'.J1.9J':f.
executive officer of the Authority and shall,
1'1..(+mllcfl lf'i: <p<,cn· >tt.h·f·C
without prejudice to the provisions of Article
f fl ll F-1 A "l 'i- 'P 'i /--'-' 1,. h {l t. ~ 'l. Cl <m lf '}
0
9 of this Proclamation and subject to the
°'l. 'i. {l-1; ~ Cl °'l. (Imm- h m :J> ti ,e on on I, f
general directives of the Ministry, direct and
oowt..T ffll\.F-'A"l'i-1 F-'t-9':f ,eon/.,.A:
administer the activities of the Authority.
f {l+~.i7 t-A::
2/ Without limiting the generality stated in Sub-
I! Ott.U h14'7' '}().{) h'}•f>Yt !'/».! f'·f•U"t\h·f·(I}• Article ( 1) of this Article, the Director
hm:J>ti,e h'l.'.J1C 'h'}..(·hnOcr lf':' <p<;m· General shall:
>l~h+c= a) participate in the meetings of the Board
tJ. OflC~ {l,O(lfl9':f Oh'lA'l·l-- J'~ti·l·'i-A= as a member;

ll. Ott.U h'P~ h14'?i j f'·f•UVi\h•f;•}'} b) exercise the powers and duties of the
f' fl i\F-1 A "l 'i-1 F-1 A "11 'r' ·I· °1'11,. ·} Authority specified under Article 6 of
ClF-'t- ti,e fm-tiA; this Proclamation;

rh. O&..Yut•A (I.ii.A l'lCc({l ,)1°/ ,mu•/.•} c) employ and administer employees of the
PCl t\ F-1 A "l '1· 1 v• 1,. · f• 7;·, :f J', 4" I' /,-A : ] Authority in accordance with the federal
,P{l·f·~.i71,-A: civil service laws:

on. f'li\J'»Afll'i-1 f p-11,. T~ ,t.9w; 0~ T0

d) prepare and submit the Ministry the
hH.'.J~r ll°'l.'i.{lrt~ J'cf>C'lA= work programme and budget of the
f'l. .<. 4> .i79" OF-' t,. ti ,e .f' m-ti A : Authority; and implement same upon
approval;
01 i\'li\FA"l'i- o+t.crf.t\•l-- o~:rc,·
rF6· Te°lt-9" un,J.J1.:r
11tt11 (1) 6 J.1· e) effect expenditure in accordance with
.r ..(C ;JA; the approved budget and work
programme of the Authority:
t.. . h Y' {l +;;: OJ 'l'i T
.'.JC (l 0 '1. f.t. .,.
°1", 1-'1.Y· :f lJ•f\. fli\FA"l'l-'} ,eCDhi\A: f) represent the Authority 111 all its
dealings with third parties;
l'l . f' qi\/--'-' A "l 'i-'} r F-' /,. ht.~~ 9'' "i' rl ti ·fl
t.:rc •l· ~11:J ~:.y. i\ a'I. '1. {l•t; ,;. g) prepare and submit to the Ministry the
J'cf>C'lA:: operational and financial reports of the
Authority.
Et <p<;m· >'1..t!-.tH·C
t\'lt\P'A"1',. ,, 1"/.· 3/ The Director General may delegate-pc.. .. , . -his
~A'f'<t:"i fl{lt.i\1 onm'} 1»A"J'}',· 1)l1 wers and duties to the officials and other
+°lfl~.'} Oh.LA i\'li\/--'-'A"l'l· ;~i\&..9 1 ·:;.,; employees of the Authority to the extent
l\,fl., T wt-+"lf>l- om-hA ', fl.••f'{l•f·i\A c,: necessary for the efficient performance of ti 1'-
f.°ftiA:: activities of the Authority.
1l1" tiU'.ii Federal Negarit Gazeta ...... No. 57" 2nd August, 2004 ......... Pag 2798

11. Budget

The budget of the Authority shall be allocated by

the Government.

12. Books of Accounts

it 'lfl.P'An1.,. r-t-~t\-r, ..-,..titin;;: rtr'1- rY.1111 I/ The Authority shall keep complete and
UDJ1 '?·fl..-,.. .e .et1 A : : accurate books of accounts.

2/ The books of accounts and financial

fl fflt\P'Anl',. f'l.ti1l DD 11°11l:,-.r, •ntt·fl ',ti
(l',p. "f (lf'¼DD-F (l<pr,a,. J.-'t •l·C m ,(',9"
documents of the Authority shall be audited
annually by the Auditor General or by an
~c n• <l"?.fl.eOlJm- J.-'t •N: .e{7lJ 1.rm ✓,.ft.::
auditor designated by him.

13. The Industrial Development Fund

t!I llJ\'P~ 4:FJ>C ~!C'Z./!!!f:!2 "114'?\ If! 1I The Industrial Development Fund established
-t-*¢qu f',0/.ID- f h.'}~fl."f-b A 0 '1:,-. under Article l 1 of Proclamation ""- 1 : ,
t,.. '}f; OH.U >,'P:~ 'h1Y-.-t-**UD 277/2002 shall be deemed established under
.e.Y.mt-A:: this Proclamation.

t I r 1,... 'H7 r 11 H11 ?"1"J.b hon·>.., P' ..-,.. 2/ Financial sources of the Fund shall be
.(7C~.Y."f r-t-n11,. :,-.c~ '1.e
fA 0 '1..-,.. deductions, in percentages to be fixed by the
Ol1'}'? p:,-. ll"?.m{'l',m- Ol1-f'-~ uvwt. :,-. Government, from the net profits of public
f"?.4'',(l 'lt't1l J>,tf'iA:: enterprises.

3/ The fund shall be utilized for the following

purposes:
tJ. OH.U h'P~ "114'?\ r;1E1 uvu,1.·r
I\"?_** OU• r A 0 '1 :,-. .(7 C .~: ·Y· l· a) to finance project studies and initial
Teln.Y.-:;. 'f' r, :,. 0•1 (l I,.. 'It "'l. J' 'i capital required for the establishment of
f\O'l**"'I.Y UV', 71· 111: .-r A ; enterprises pursuant to Article 5(3) of
this Proclamation.
I\. o>-i1t~ <'h.t1 c:"1. A 0 1·r 1:A~ "ts
I\. lili1,(JJ'F f "?. 'f I\· ',[IC f DD 1'? P' 1"' b) to finance the capital expenditure
rA 0 '/1"' .(7C .~-f• 'f 1 I\ a'l,fti.'A c,· required for upgrading and expansion of
l\ ll'/fl/4-.4-1"' f"'l.Yfr/,...A 1a>-'} r~i·c ;J·A existing public enterprises that may play
(I) 6J,b I\ UV 7j /,... '} ; key roles in the economic devel_opr" ,
of the Country;
rh. tl Vfl,. f'Y-./.(Ul1"' f01 1 '} }p..,,)·
0

r Aa.,:,. .(7c,~:,. tJuv~t.ll "'}P,..(7'} c) to replenish the capital of public ..

il'/.(7/."1 }\fl/,...'11. lf'f fl. 1~ <ltt·~t- enterprise which has sustained loss where
f?Y-.1\ID-'} '1T.:rA (\UV-f'tJ.J":: it is deemed necessary to salvage it from
dissolution.
Q/ llH.U 1'14'?\ '}~fr ]\'}</>fl ~/
4/ Any disbursement from the Fund in
uv,.,., 1.:,. h1,... 1 ~ ".e r"'l. Y--t..., accordance with Sub-Article (3) of this
0
'11~ (D-9" ti~ J" Cl"'l 'i. fl-t ~ UV I,.. 4' .(7
Article shall require the authorization of the
'11\01"'::
Ministry.
 Federal Ncgant (iazcta No. 57 2"d August. 2004... Pag 2799

'lft.1..u A "1 1•
1
f &. '}P,.. '} '/JI ·fl
(l"'l. 00 fth•l· f,f·~ft·'i ·l·hhft<? fll",. 5/ Tl,e Authority shall separately keep complete
f'f.i'Hl an11°Ml·r Cl·f'ft.e, ,e,et1A:: and accurate books of accounts of the Fund.
\

rt.'} Pt- 'l ti 11 Cl 'P'.' (I}- >. >t.,. c (J) .e ?" 6/ The accounts of the Fund shall be ~uo1ted -
hCO· Cl 0 'l.o,e<mm• >.Pr. ·l·C (lfl}<m•f: annually by the Auditor General or by an
,e<mt.<mt,.A:: auditor designated by him.

! !! . r 00 1°1 P':,. r A "7.-,. f: C ~ .Y. r 1 fl l\ 0

'1. 4' ''1 m"r 14. Powers and Duties of other Organs
lb I\- r h ti I\:,. P' A "l">'i --f' °l'l C
Supervising Public Enterprises

The Powers and duties enumerated under Article 6

Ott.u ll'P~ '11<f>1' I
r--t·ttt.11t.(I}- .1»A"nr,
of this Proclamation shall, mutatis mutandis, be
.,...,Ile (l1l'}cf>7' flit
h,t•ODfth--t-ar :,.c:1°1.
applicable to other organs supervising public
{l}-tif!' r--t-r.t.1• rUD,..,p>:,- rA"'/•r
enterprises excluded from the definition provided
f:C ~-f· :f. '} ft l~"l,n<;.
0
11ti1.,l•9" 7, '} r. for under Article 2(2) hereunder.
ll'?'Hl'rJ; ·I·&.~ "'I. .(',tf<; A::
15. Repeal and Applicable Laws

l/ The following laws are hereby repealed:

a) Articles 16 to 26 of th1: Privatization

11. rnv·>..,F:,. rA 0
'/:,. r.-c:~:.y.·.r•·> (OJ.'. of Public Enterprises Proclamation
0
/Aflft 0 '1tllDC f(J)"l(I}- h'P:e_: c#:'rC No. 146/1998;
/;fij~/Ififj/; h'1'}<f>1' I~ hflh ;--~:
b) the Public Enterprises Supervising
ft. rnv,..,P':,. r A"'1•r Y.· C :~: ·f· :r Authority and the Industrial Develop-
·1'4'"1"11, 'lftP' A "11',' r 11:> Pt- fl ·l· t ment Fund Establishment Proclamat-
A 0 '/7' &.'}J7 °'/'J:'J:"'l.•f '1 q, :~ •I: 'l'C ion No. 277 /2002.
rrc»~1n1r:rn::
2/ The following laws shall be applicable:

a) without prejudice to Sub-Article l(a) of

lJ. fH.IJ '114'1' '}().() )..'}q,ft /;/tJ/ this Article, the Privatization of Public
h '} Y. ·hnCl cf> tr':' f <m'}°I .1» ·l· ~ A 0 '/ •l· Enterprises Proclamation No.146/1998
f:C.~-f r'} £DJ.'. "IA ()ft 0 '/tl(J)C and the Review of Properties Taken in
f(l)<ll(J)• h'P:e_: 4:'J'C ?ir'.~t'.l;/XUr'.Ui Violation of the Relevant Proclam-
h '} r. ,t- iftil\/ 'h c,· h 11 'P :~: m· of!• ations Proclamation No. 110 /1995 (as
flft•tm(IP,. 'Hlt.·f·:f. fm"1m· 1''1'}~.: amended); provided, however, that any
reference to the "Agency" in these
4:'l'C /! f !/H!f1!.''!: lh 1 J.'. ·t•7i'i'ift/
f:'},n.~"f; tf':'9" Cl'lH.tJ· i'l'P~·,t. (lf Proclamations shall read as the
"Authority":
F~t,.m· «1'.:('}f'I.» ·f'•fl/\ f·t·'lft1'(1}- 0

«'1ft.1»A"l'h> ·l··0/\ ,e',CllJA: 0

b) the provisions of the Public Ente..,,..; -~s

Proclamation No. 25/ 1992 in so far ;s
ft. hll.U '1'P :e, J7'} ,'.J'l,91 ·,t- ;)(: 'hilti
they are not inconsistent with the
A·t·:J>t.',. J.'.•t.{I {~<m'}"J.I»•} fA 0 '/•r
provisions of this Proclamation.
,: c :": •Y. "f i'l 'P :~: ,1: "'c ?; ?; II i! X·,i' 2
f:'},'J'L~"f::
 Federal Negarit Gazeta ..... No. 57 2nd August. 2004 ....... Pag 2800

16. Transfer of Rights and Obligations

OJrt'P:~ <ll'PC lif~i1Ii!.r.1li-t·*<ll'P' r·,non·
r "'. -r r-R- .f' T 1,. ,e ii.+ .e 11, ·Ii') h» l, o. "h. ,,. The rights and obligations of the Ethiopian
(l>'t'P~ <ll'J'C trc-i1Ii!f12" -t-*<#l'P' f''t(lt.m· Privatization Agency established under
f'OD')°l.l"-r rA. 0 '1-r J?:c~.Y."f 1·.Y."1"11, Proclamation No. 146/1998 and the Public
'11\.l"A"lt uu,n:,.r, °1~:r91":f OtlU i'l'P.~: Enterprises Supervising Authority Established
t\Clt\.l"A"l't· ·t-'IA&.'PA:: under Proclamation No. 277/2002 are herby
transferred to the Authority.

17. Transitory Provisions

11"'. -rr-R- .f' Tt-.e ii :J· .eu:li·) h.~: ·M. •I· &.:1, ,11.
The salary scale approved for the Ethiopian
r'tnt.m· r y_oum11 {)h.A on.ii.A ncif{)
Privatization Agency shall be applicable to the
D'J7j7j .f' T~°I 1,.00• uvu., t. 'T (lilP,, {)
employees of the Authority until the introducti,
f' uv '}°I.I" -r w 1,.--,. "If "f f' J'. uum 11 Mt A
of new civil servants' salary scale pursuant to the
"h.{)h"?. ·f-21 J?:t.{) t\'11\.l"A "1~ u.•t,.-t-t'f>":f·
civil service reform programme.
-t- &. ~ "?. ,e J'. t. ;J A : :
18. Effective Date

This Proclamation shall enter into force on the

,eu >'t'P ~ O~~t,.A. 't ;Jt•r .~H,"l :J·-r'P' date of its publication on the Federal Negarit
hlD"l(l-r <f>'} ls,ur.• f'O'i .etr'.'A:: Gazeta.

Done at Addis Ababa, this 2 nd day of August, 2004

GIRMA WOLDEGIORGIS
°IC°'I lDA.Y..1. r-c'l.{) PRESIDENT OF THE FEDERAL
r "'. -rr-R- J'~~t,.'l'f >t qot,1,-n•.f''I~ DEMOCRATIC REPUBLIC OF ETHIOPIA
tT-01\.h Tt.11_>;,:,•