Ethiopian firm awarded $50 mln contract for power interconnection to Sudan

December 18, 2008 (ADDIS ABABA) – The Ethiopian Electric Power Corporation (EEPCo) today announced that it has been awarded a contract exceeding 49.4 million USD to execute a Etiopia-Sudan power interconnection project.

The Ethiopian company is associated with a Bosnian and Iranian firms to implement two year venture. The EEPCo signed the contract with ENERGOINVEST of Bosnian and Herzegovina and SUNIR of Iran.

The country is the source of a branch of the Nile River called the Blue Nile, which is believed to have huge power-generating potential. The Blue Nile merges with the White Nile in Sudan to flow into Egypt as the Nile River.

By 2011, Ethiopia will generate more than 4,000 megawatts, enabling the country to provide 50 percent of its 77 million people with electricity. Ethiopia plans also besides Sudan to provide power to Djibouti and Kenya.

The Bosnian ENERGOINVEST will construct a 297 KMs of 230 KV transmission line from Bahir Dar to Gondar to Shehedi and to the Sudan border. While the Iranian SUNIR is tasked with the extension of the existing substations at Bahir Dar, Gondar and Shehedi so that they would be able to accommodate the additional transmission lines.

World Bank has fully financed the total investment of the project, which costs over 449.3 million Birr.

The huge power project, which is expected to generate monthly income of about seven million US dollar to Ethiopia, is expected to be finalized by the end of June 2010.

The agreement will increase to three the total interconnection projects that EEPCo is undertaking. The Ethiopia-Djibouti interconnection is already under construction while the Ethiopia-Kenya interconnection is under study and bid preparation stage, the CEO recalled.

(ST)