The Ministry of Mines and Energy (MoME) two weeks ago held discussions with officials from Mines and Energy Offices of each region to confirm that its former coal energy project, has been officially removed from the Ministry's five-year strategic plan and to caution overlapping from occurring between the Universal Electricity Access Programme led by EEPCo and projects being funded by the Rural Electrification Fund (REF).

The discussions, mainly addressed issues concerning the Rural Electrification Fund, which was formed so as to finance and offer technical support to those project proposals submitted by co-operatives, communities and private businesses that had the need and want for electric power access. The Fund especially focuses on backing projects that intend to use alternative energy resources to fuel, such as micro hydro, solar and wind generating projects.

The Fund was established in September 2002, in accordance to Proclamation 317/2002, has 15 million dollars that was granted by the World Bank and Global Environment Facility (GEF).

Due to the ambitious realization of the Universal Electricity Access Programme, which intends to install electric power grids of 15KV and 33KV, it holds that REF funded projects need to be implemented over a 50Km and 100Km distances away from these grids respectively. Therefore, the possibilities of overlapping on areas covered by REF funded projects has become likely.

Moreover, as the Programme being undertaken by EEPCo has stated that it will not compensate those private owned companies or co-operatives that are implementing alternative electric generating projects through finances received from the Fund, once it reaches the areas where they have been performing electrification works.

The Secretariat of the Rural Electrification Fund therefore, called on its projects to proceed cautiously in performing their electrification tasks, as EEPCo's implementation of its project in areas that were covered by companies and co-operatives projects, will not reimburse their costs, once it overlaps.

The Universal Electricity Access Programme intends to have electric power coverage increase from the 15pc that it now has to 50pc by 2009-2010.

The discussions also addressed one of MoME's goals that had been included in its five-year strategic plan, which was based on the Plan for Accelerated and Sustained Development to End Poverty (PASDEP). The intention was to produce up to 100MW of electric power through its Yayu Coal Mine and Coal Fired Thermal Power Plant Complex Project. Nevertheless, Prime Minister Meles Zenawi's instruction to shift it from electric power generating to Coal Phosphate Fertilizer Complex Project, on September 6, 2006, saw the Project's transference from EEPCo supervision to that of the Ministry of Trade and Industry. The reason for the decision was based on the written appeal made by the Federal Environmental Protection Authority, stating that the Yayu Coal Project as being environmentally damaging.

The Ministry of Mines and Energy strategic plan, which has over 100 pages, holds projects that it intends to implement until 2008. One of its goals is to increase the number of cities that have electrification from 744 (in 2004) to 6,000 by 2008. Accordingly, users' numbers will increase from one million to 2.6 million.

The discussions were held at the MoME's main office, located on the road from Megenagna to CMC residential complex.