The Ethiopian Electric Power Corporation (EEPCo) Thursday signed 14 contracts, worth over US$ 300 million, with a number of international companies to boost its power supply, according to EEPCo's chief, Miheret Debebe.

The mega deals come a day after the state utility announced the near completion of feasibility studies to construct a second mega hydropower project on the Nile River in bid to become a regional power hub.

The companies from Spain, France, Germany, China, India, US, Canada, Italy as well as a local technology institute signed contracts for the construction of 20 high-voltage new sub stations, upgrading of existing ones, installation of nearly 1000kms underground and aerial transmission lines across Ethiopia and linking Ethiopia and power buying neighbouring countries.

Speaking at the signing ceremony in Addis Ababa, the Ethiopian capital, late Thursday afternoon, Debebe said that the successful completion of the contracts would enable Ethiopia boost its electricity generation capacity from the current 2,000 mw to about 10,000 mw over the coming five years.

Over US$ 220 million of the financing is secured from the African Development Bank (AfDB), over US$ 20 million from Chinese banks and the balance from the Ethiopian government, Debebe said.

From Enegoinst DD of Bosnia and Herzegovina, to a number of companies in India, to AECOM of USA-Canada, to CYMI of Spain and Norinco of China, the international companies have each signed over US$ 10 million contracts.

The companies would be travelling across Ethiopia over the next few years to accomplish what is dubbed a transformation move by Ethiopia under its ambitious Growth and Transformation Plan (GTP).

The Ethiopia government says the GTP will transform Ethiopia’s economy in every sector over the next five year, making it a middle income country from what is now one of the poorest nations on earth.

According to Debebe, the multimillion-dollar contracts would light thousands of towns in Ethiopia and enable Ethiopia, which has a potential to generate over 45,000 mw power, sell power to neighbouring Kenya, Sudan, Djibouti and beyond.

A joint French-Italian companies consortium won a contract for the consultancy service for Ethiopia's latest mega hydro power project expected to generate over 5,000 mw power, the Grand Ethiopian Renaissance Dam, the biggest such project in Africa.

The only local institution in the club, the Addis Ababa Institute of Technology, has been awarded the contract for the construction a wind-power generation project in central Ethiopia.

Ethiopia on Wednesday said it was almost completing a feasibility of another hydro electric power project over the Nile River, which will generate 2,100 mw of electricity.

Part of the Horn of Africa country’s plans to position itself as a major electricity supplier to neighbouring countries, the Beka-Abo multipurpose power project, according to the Ministry of Water and Energy, will be constructed about 2kms from the Bridge near the Nile river around Bure-Nekemt road, about 360 km north west of Addis Ababa.

Stakeholders are discussing details of the project in Addis Ababa, with support from the Norwegian government, which donated more than 20 million Euros for a feasibility study.

The ministry said the project would significantly contribute to efforts to meet the local demand and the country’s push to export power.

Ethiopia has already started test power supply to neighbouring Djibouti and is preparing to start selling electricity to Sudan early next year.

In April, the country launched Africa’s biggest dam over the Nile River. The Renaissance Dam, expected to generate 5,250 MW of electricity, will cost US$ 5 billion and will be fully funded by the government and ordinary Ethiopians through the sale of bonds.

The mega projects over the Nile have angered neighbouring Egypt, which said that the projects will impact negatively on water levels on the shared river.
-0- PANA OR/VAO 8Sept2011



Source: http://www.panapress.com/