14 December 2012

Ethiopia's Energy Sector Attracts More Financial Interest

The China Import Export Bank (EXIM) and the European investment Bank have expressed strong interest in financing the proposed Aysha I Wind Farm project.

The site for this is located in the east of Ethiopia close to the borders of Djibouti and Somaliland and is in a strategic location to offer possibility of power exports via the 230 KV transmission line between Ethiopia and Djibouti.

The Aysha 1 Wind Farm project is expected to add up to 300MWs of power to the Ethiopian grid. The whole project, launched by the Ethiopian Electric Power Corporation (EEPCo), will involve construction of three plants and has attracted considerable interest. According to EEPCo's CEO, Mihret Debebe, the European Investment Bank has approached the Corporation with a view to investing in the project.

China's EXIM bank is keen to finance both Aisha I and Aisha II, and has indicated that it plans to start project appraisals shortly. Ethiopia has recently launched a series of wind power projects to increase the country's power supplies and fuel green economic development. Last month the Adama II wind power project got under way as the EEPC signed a $340 million deal with China's GCOC for its construction.

Adama II, together with the now operational Adama I Wind Project, will be able to provide sufficient power for industries operating in Adama and the surrounding area.

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