Ethio-Sudan Power Connection Project Kicks Off

December 23, 2008 (Nairobi, Kenya)-- After 25 years of protracted processes the Ethio-Sudan power connection project  finally entered construction phase last Thursday, December 18, following the signing of agreement between the Ethiopian Electric Power Corporation (EEPCo) and two international companies.

Early this month the World Bank (WB), the sole financier of the total project cost, approved the evaluation of the tender for the installation of a 297km 230 kilovolt transmission line and expansion of an existing substation.

WB informed EEPCo of the approval of the tender evaluation on December 2, 2008 following which the state power utility signed the agreement with the two international contractors that won the tender.

The first contract is for the construction of power transmission line with ENERGOINVEST d.d., a southeast European company based in Sarajevo, Bosnia and Herzegovina to install 297kilometres of power transmission line with the capacity to carry 230 kilovolt of power. The transmission line, to be installed by ENERGOINVEST starts from Bahar Dar and extends to Gonder and further to Shedi and finally to the boarder with Sudan.

The other contract was awarded to SUNIR, an Iranian company, to extend the existing substation in Bahar Dar, Gonder, and Shedi to accommodate the additional power transmission lines.

The two companies EEPCo has awarded its projects to have almost equal years of experience in their respective specializations. 

Including supervision and consultancy services, the project costs 449.4 million Birr.

ENERGOINVEST was established in 1951. It works on energy projects, especially core business substation and transmission works, according to Jakub Viteshkic, director of Transmission and Substation Division of the company. 

SUNIR Co was established 55 years ago in Iran. It specialized in power and water equipment and service export. Reza Ebadzaden, managing director of the company, told Fortune that this is SUNIR’s first entrance to Ethiopia’s power sector. 

The project is expected to be completed in 18 months from the commencement date up to end of June 2010.

According to Mehret Debebe, EEPCo’s CEO, the project will earn Ethiopia not less than of seven million dollars monthly.

“This agreement has come after many years of negotiation,” the CEO said,  Redelight, of the project takeoff evident on his face. 

Currently EEPCo is undertaking three interconnection projects at different stages of implementation.

The Ethio-Djibouti interconnection project is already under construction while the Ethio-Kenya is under study and bid preparation stage.

The next interconnection with Sudan which is envisaged by the Nile Basin Initiative marks the largest power export volume of 1,200 mega watts to Sudan and 2,000 mega watts to Egypt, which will take effect in the foreseeable future.