By Tesfa Alem Tekle
March 18, 2010 ( ADDIS ABABA ) — As nation once again plunges in to major power crises, Ethiopia power Utility signs a new contract agreement with a Chinese company to build a new hydro power project as part of the country’s long term commitment to meet growing power demand.
The agreement for the construction Genale Dawa 3 power plant was signed between Ethiopia Electric and Power Corporation (EEPCO) and Chinese Gezhouba group company (CGGC)
After a water passage tunnel of a recently inaugurated power plant (Gilgel Gibe II) was partly collapsed, EEPCO has once again began a nationwide power rationing.
Power consuming big factories such as cement plants, metal and plastic ones are made to reduce their power consumption, highly impacting on their production.
The new power project will be constructed at a cost of 480 million US Dollars and it will have a power generating capacity of 254 MW up on completion within the next five years. Genale power plant is said to boost country’s power capacity by 25%.
The horn of Africa’s nation has earmarked 12 billion dollars of investment to its 25 year power sector master plan.
With other power projects being in progress, currently six hydro power plants supply 1000 MW, while country’s power demand stands at 1200 MW.
Speaking to parliament, Ethiopian Prime Minister Meles Zenawi today said that country’s power problems will be solved in the next few weeks.