Annual 1.5 bln eurose needed for additional power projects
By Dawit Taye

On the occasion that Gilgel Gibe II hydroelectric plant began its operation, Minister of Trade and Industry Girma Birru said the country can expect to have no power shortages for the coming two years, given there will not be exceptional water shortages.


Girma added with the rise in the water levels of other hydroelectric dams such as the Tekeze will also greatly improve power generation capacity of the country for coming five years until the completion of projects such as the Gilgel Gibe III and IV.

Gilgel Gibe II has a generation capacity of 420 Mega Watt of electricity and was built at a cost of 490 Euros.

Over 50 percent of the construction cost of Gilgel Gibe II was covered by the Italian Government and the European Investment Bank.

Prime Minister Meles Zenawi extended his appreciation for the Italian people and the personal interest that Italian Prime Minister Silivio Berlusconi showed as well as for the assistance that he facilitated.

Gilgel Gibe III is expected to have the largest generating capacity of 1870 Megawatts of electricity, and along with other power projects such as Gilgel Gibe IV is expected to require an annual budget of 1.5 million Euros.

The Italian company Salini has been contracted to build the two power plants.

Italian Foreign Minister Franco Fratini who was present at the Gilgel Gibe II site on Wednesday expressed his government’s pride in having supported an important project of such magnitude. Fratini pledged that his country will also provide further assistance for planned power projects.

Minister of Mines and Energy Alemayehu Tegenu pointed out that a lot of hurdles such as financial and the reluctance to accept the projects as relevant, had to be passed before the completion of the project, and expressed his thankfulness for the support provided by Italy and the European Investment Bank.

By Dawit Taye