Ethiopia Launches 330 Million US Dollars Electricity Projects, Power Interruption Persists

BY NEW BUSINESS ETHIOPIA REPORTER

The Ethiopian Electric Power Corporation (EEPCo) signed power transmission project contracts worth 5.6 billion birr (around 330 million US dollars at current exchange rates) with companies from ten countries while power interruption continues. 

EEPCo Signing Power transmission Agreement with Foreign companies Sep 8, 2011 - Photo newbusinessethiopia.com

Out of the total cost of agreement signed this evening (September 8, 2011) at the Hilton Addis, Indian companies take the lion share wining three contracts worth over 50 million US dollars.

Energoinvest DD of Bosnia & Herzegovina, ALISTOM GRID of France, ABB AG of Germany, AECOM of USA-Canada and Norinco International Limited of China are also among the companies who signed agreements with EEPCo to complete projects which will take from 12 to 24 months. In addition, France and Italian companies have also agreed to provide consulting services EEPCo for the under construction Ethiopia’s ambitious Renaissance Dam on Abay River.

The major financer of the projects is the African Development Bank (AfDB) as agreed to provide some 235 million US dollars soft loan and grant in December 2010, according to Lamin Baro, AfDB representative to Ethiopia.

The Chinese government has also contributed some 20 million US dollars while the remaining cost of the project will be expected to be financed by the Ethiopian government.

Currently the Chinese government bank is also financing construction of Gibe III- Addis Ababa power transmission project and Genalle dawa-3 hydropower plant construction with 180 and 296 million US dollars, according to statement EEPCo dispatched this evening.

Even though Ethiopia has been spending several billions of dollars on power generations projects, the country is still unable to meet the ever growing demand.

Power interruption has now become a common phenomenon in Ethiopia manifesting itself during important events such as power transmission contract agreement ceremonies this evening at the Hilton Addis and a few months back when US secretary Hilary Clinton was making a statement at the Sheraton Addis. 

Comment:

Warren Buffett had once said “You can’t make a baby in a month by getting 9 women pregnant”. A number of bold projects have been launched lately to tackle the ever growing demand for electrical power. It takes time until all these major power plants can produce enough power to meet that demand. The main thing is that the government is doing a very commendable job. The power interruption that occures despite enormous increase in generated power is a sign of the rapid economic growth in the nation. We are going in the right direction.


Courtesy http://www.newbusinessethiopia.com