Ethiopia’s Gibe III Gets Chinese Help

Ethiopian Electricity Power Corp. (EEPCo) signed an agreement with Chinese company Dongfang Electric Corp. on May 12 for the East African country’s multi-million dollar hydropower project. The agreement, totaling $459 million, will allow the Chinese company to carry out the electro-electricity plant and mechanical works of the Gibe III hydropower project.

Dongfang will take over the work from Salini Construction. Salini is currently dealing with its own problems as the precursor to the Gibe III was its sister, Gibe II, which collapsed on February 5 after operations commenced on January 15. Lori Pottinger, International Rivers communications and Africa campaigner, told Alternative Energy Africa that while Ethiopia is becoming Africa’s hydro capital, the East African country is building dams faster than it can spend the power.

The Gibe III is set to be complete in three years, generating 1,800 MW of electricity helping Ethiopia to become the first African country to export energy generated from its RE sources. Djibouti, Kenya, and Sudan have already signed accords with Ethiopia for power supply. EEPCo’s CEO Mihret Debebe said that the Industrial and Commercial Bank of China is to cover about 85% of the cost of the project through a loan.

It is also rumored that with the Chinese loan, Ethiopia could reject a loan from the African Development Bank. However, that would appear improbable as Ethiopia and Kenya are already said to have contemplated having to dip into their own pockets to cover a planned $3.5 million power interconnection project.

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