The South Korean government has approved an $80 million loan for Ethiopia that would finance the Ethiopia-Sudan electric power transmission line construction and expansion project. The deal is expected to be signed this week.
It was reported last week that the Ethiopian government has been able to allocate electricity coverage to about half the nation. The government’s goal is to aim for three quarters of the country by the year 2015.
Ethiopia is in the midst of a multi-billion electricity investment to boost its generation capacity within the next few years. Electricity in rural villages and towns has soared to 47 percent from eight percent in 1991.
According to the Sudan Tribune, the Ethiopian Electric Power Corporation (EEPC) has announced that the South Korean government has agreed to finance the construction and expansion of the Ethiopia-Sudan electric power transmission line project, which stretches from Debremarkos to Gebreguracha to Sululuta and maintains a carrying capacity of 400 KV.
The agreement is expected to be signed sometime this week by Ethiopian Minister of Finance and Economic Development Sufian Ahmed and an official from the South Korean government.
South Korea’s loan agreement comes as the EEPC announced it is revising its 25-year power sector plan. The only electric provider in the African country said its aim is to generate 37,000 mega watts of electric power by the year 2037. The original plan was introduced in the year 2000.
“We have to revise the previous baseline to undertake projects with the current economic parameters,” said Mihiret Debebe, EEPC CEO, reports Ezega.com. “The first draft of the new master plan which takes up a 25 year period until 2037 will be released within six months or in the beginning of the second quarter of the coming budget year. The new plan will hold wide areas in the power sector including the indication of financial sources.”
The World Bank and African Development Bank have issued loans total $1.3 billion for the project. Ethiopia, and the rest of East Africa, could maintain a system of renewable and clean electric power.