Plans to construct 2, 000MW hydro dam in Ethiopia, on the lower bank of the Omo River are underway. An Italian export credit agency, Servizi Assicuative del Commerce Estero (SACE) has agreed to fund the development.
Ethiopia’s Prime Minister Hailemariam Desalegn said that the deal for the construction of the dam, dubbed Koysha dam, followed successful negotiations between Ethiopia’s Electric Power (EEP) and Italian construction firm Salini Costruttori.
The mega development of the dam is projected to cost US$ 1.7bn and will be funded by the Italian company.
An Ethiopian delegation led by Azeb Asnake, CEO of EEP, and the head of the Ministry of Finance and Economic Cooperation’s Legal Affairs Directorate Wasihun Abate, flew to Rome to seal the financing agreement.
Under its five-year development plan, Ethiopia has made it a priority to increase their energy supply and is currently looking to utilise its rivers for power generation. They also recently signed a US$4bn deal for the construction of a 1,000MW geothermal facility with a US-Icelandic firm Reykjavik Geothermal. It will be Ethiopia’s first privately-run power plant.
