On Wednesday, Ethiopian Electric Power (EEP) and Chinese firm, TBEA Contractor Ltd, concluded a $98 million deal for a power transmission project in Addis Ababa, according to ESI Africa. Signing the agreement were EEP’s CEO, Azeb Asnake, and deputy general manager of TBEA, Xue Fen.
TBEA will be responsible for the construction of Bole-Lemi and Kilinto Industry Zone power transmission project, media reported.
According to Asnake, this project is expected to satisfy the power demand of the industrial parks, condominium houses, real estates and other new demands around Koye Abo, Koye-Fitche, Kilinto and Bole Lemi areas of Addis Ababa.
Asnake added that the agreement includes two packages of substations and transmission lines construction.
The Exim Bank of China, will supply 85% of the project financing through a commercial loan and the balance will be provided by the Ethiopian government.
StarAfrica reports that both projects are expected to reach completion in 12 months.
Xue Fen stressed that the Chinese firm will remain dedicated and committed to Ethiopian power construction and national development with the company’s quality products, efficient performance and reliable service.
EEP is confident that TBEA will replicate its success while constructing the Gibe III-Addis Ababa 400kv transmission line to the latest agreement.
In earlier news, CEO of the Ethiopian Electric Utility (EEU), Gosaye Mengistie Abayneh, told the East African Business Week in an interview that the EEU’s vision is to interconnect the entire network in the African continent and beyond.
“Once we finish the Ethiopia-Kenya Transmission Line we can interconnect with Tanzania and beyond, followed by the interconnection with the Southern African Power Pool. We can also reach northern Africa through Sudan and Egypt,” he said.
According to Abayneh, the Ethiopian government is planning to develop a middle-income country by the year 2025, adding that: “electricity is a major player and the driver of socio-economic development”.