Ethiopian Review

The African Development Bank (AfDB) this week accepted the Environment and Social Impact Assessment of Gibe III Hydropower project of Ethiopia.

The bank proceeded to evaluate technical and financial issues of the project following its approval of the debated environmental assessment.

AfDB’s director in charge of infrastructure, Mr Gilbert Mbesherubusa, told the Kenyan Business Daily that the bank is conducting technical, economic and financial assessments of the project to start the work by the end of year.

Mehret Debebe Chief Executive Officer of Ethiopian Electric Power Corporation (EEPCo) explained his pleasure over the approval: “We have no doubt over our assessment, and if the financial institutions evaluated the impact assessment with independent experts and the AfDB reached to this decision after making its evaluation with independent experts, we are confident in the conclusion” he told Capital.

The European Investment Bank also agreed last week to evaluate the impact assessment of the project with independent experts, said Mehret.

“We are very confident about our impact assessment, but environmental activist groups were the challenge,” he added

The hydropower plant, which is being constructed in Wolyata Zone of the Southern Nations, Nationalities and Peoples Region will generate 1,870 megawatts of electricity upon its completion. The hydro-power plant will use the Omo River that flows into Lake Turkana of the neighboring Kenya.

Environmental activist groups from Lake Turkana have been lobbying AfDB not to fund the project, owing to the impact of the dam on minimising the volume of water entering Lake Turkana. They say it will affect the livelihood of the surrounding inhabitants.

A Kenyan fact-finding delegation, led by Mr John Nyaoro, the water ministry’s director in charge of water services, visited the project and held a talk with top Ethiopian Government officials two weeks ago.

The delegation returned convinced about the importance of the power project to Kenya and recommended the Government of Ethiopia form a joint committee that will oversee execution of the project. However, this has been rejected by Ethiopia.

Prime Minister Meles Zenawi said in last week’s press conference that the Kenyan doubt is not over the power project, instead they fear that the Government of Ethiopia will redirect the flow of the river with the aim of using it for irrigation purpose. This is what prompted them to recommend formation of the joint committee, however, Ethiopia is a sovereign country and it will not happen, Meles said.

AfDB fully accepted the assessment, which led it to evaluate financial and technical issues.

The Ethiopian Government needs 1.5 billion Euros to fully complete the project. The bank is expected to fund 250 million Euros to provide electro-mechanical equipment for the project, according to the Government project proposal, and the Italian Government is expected to cover a similar amount for the construction work. The European Investment Bank is expected to finance 100 million euros and the rest will be funded by the Government of Ethiopia.

However, none of the funds have yet been secured.

- By Yohannes Anberbir | Capital Ethiopia