Ethiopia’s power utility and a Bosnian energy company have concluded a US$ 45 million deal to build a 230 KV electricity transmission line for its new mega hydro electric projects, the Ethiopian Electric and Power Corporation (EEPCo) announced on Thursday.
EEPCo clinched the deal with Bosnia’s largest engineering group, Energoinvest recently and an official signing ceremony will be held next week.
The transmission line is part of the government’s multi billion investment on hydro power projects, including the recently launched dam project over the Nile River that is set to be Africa’s biggest.
The Great Ethiopian Renaissance Dam is expected to produce 5,250 megawatts (MW) of electricity upon completion in three years.
Other three dams for hydro electric power generation are also being built around the country.
The Energoinvest and EEPCo transmission line is expected to take two years to construct.
Ethiopia recently launched a five year growth and transformation programme that will see multi billion investments on various sectors, including hydro power plants.
The country with a population of around 80 million people plans to produce 20,000 megawatts of power within the next decade, which will cost the country $12 billion over 25 years.
It aims to become a major electricity exporter on the continent.
Ethiopia started exporting electricity to neighbouring Djibouti recently and has reached another export deal with Sudan.
The construction of a transmission line to Sudan is nearing completion.
The World Bank and African Development Bank (AfDB) are financing the export of electricity to Djibouti and Sudan.
ADB poured around US$ 59 million into the Ethio-Djibouti power connection project.
A few years ago Ethiopia signed another power supply deal with Kenya and exports are expected to start soon.
Ethiopia is producing 2,000 MW of power, which is expected to reach more than 3,000 next year when new plants are completed.
At least 30 per cent of Ethiopians reportedly have access to electricity and government plans to push it to 75 per cent in the coming five years.
EEPCo says the country has capacity to generate up to 45 000 MW of hydroelectric power, 5 000 MW from geothermal sources and 10 000 MW from wind energy resources.
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