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Ethiopian government and Italian company sign $ 2 billion
hydroelectric deal
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The Ethiopian government and an Italian company has signed a $ 2 billion hydroelectric power project which is said to be the biggest in Africa. The hydropower deal was signed between the Electric and Power Corporation (EEPCO) and Salini Construction, an Italian
construction company currently undertaking various construction projects in Africa.
The agreement was signed between Meheret Debebe, General Manager of EEPCO and engineer Claudio Lautixi, general manager international division of Salini Constrottori, in the presence of high-ranking government officials, including Foreign Minister, Seyoum Mesfin. The hydropower project will be constructed in the north west region of Ethiopia where there are ample water resources, including the great Nile River.
This power plant will be the third cascade on the Omo-Gibe river basin to the already operational 184 MW Gilgel, Gibe1 plant and the 420 MW Gilgel gibe 11 plant which is currently under construction.
"As an investment, this major project will repay itself in only five years of operation. The hydroelectric plant generates electricity with the water freely given by the Omo River, and after the investment is repaid, the plant will give some 300 million Euro per year of revenues, at almost no cost”, Debebe said.
The hydropower plant project is expected to be operational by 2011 within a five year period and is expected to create job opportunity for 5,000 Ethiopians. "In the global picture where oil is getting scarce and ever more expensive, hydropower is the white oil of Ethiopia, clean and renewable," Claudio Lautixi of Salini construction said. It will also help Ethiopia to develop its energy exports to neighbouring countries like Sudan, Djibouti and Kenya.
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