Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
A power plant/FILE

World

Ethiopia and China sign $1 billion power deal

A power plant/FILE

A power plant/FILE

ADDIS ABABA, Apr 27 – Ethiopia signed a contract Friday worth nearly $1 billion with a Chinese energy company to build two transmission lines linking the country’s largest dam to the country’s central power grid.

The Ethiopian Electric Power Corporation (EEPCo.) signed the deal with China Electric Power Equipment and Technology Company (CET) in the Ethiopian capital.

The three-year project, which will be fully funded by the Export-Import Bank of China, will start immediately.

EEPCo.’s CEO said the deal was a major step for Ethiopia’s energy sector.

“This is another milestone in (realising) Ethiopia’s development objective,” Miheret Debebe told reporters.

The two transmission lines, with a combined capacity of nearly 1000 kilovolts, will run over 700 kilometres to link the Grand Renaissance Dam to the main power grid near the country’s capital Addis Ababa.

Miheret urged CET to adhere to the timeline set out in the contract for the project’s completion, and admitted that securing funding for the large-scale project was a “challenge.”

As part of its ambitious Growth and Transformation Plan (GTP), Ethiopia is developing its energy production sector with the aim of exporting power to neighbouring countries.

With a capacity of 6,000 MW, the Renaissance Dam on the Nile River is the largest of Ethiopia’s dams, most of which are still under construction.

Hydropower is set to be the largest energy provider, but wind, geothermal and solar projects are also underway.

Advertisement. Scroll to continue reading.

The country has the capacity to produce 45,000 MW of power, more than the total amount currently consumed in all of sub-Saharan Africa, according to official figures.

The GTP seeks to boost economic growth in order to transform Ethiopia into a carbon-neutral, middle income country by 2025.

China is a major player in the Horn of Africa nation, heavily invested in manufacturing, energy, and transport industries.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...