Chinese Exim Bank to Finance Aysha Wind Power in Ethiopia

The Ministry of Water, Energy and Irrigation (MoWEI) said Tuesday that it had received promising signals of getting a loan from the Export-Import (EXIM) Bank of China to finance the Aysha II wind energy project, which is located in the Somali Regional State.

The Minister, Alemayehu Tegenu, who was presenting the nine-month report to the House of Peoples’ Representatives (HPR) said that negotiations with a Chinese company, Dongfang Electric Corporation (DEC), were conducted the previous year. Though the outcome of the negotiations had been presented for decision, it had taken a long time to secure finance for the project, he added.

But now the EXIM Bank of China had indicated that it would finance the Aysha II project and as a result the management team of EEPCo had already endorsed the contractual negotiations that were made with DEC so as to enable the signing of a contractual agreement.

The Aysha II project is part of the four wind-power generating projects which collectively produce 444 MW of power. These projects include Ashegoda, Adama 1, Adama 2, Aysha 1 and Aysha 2.

Like the Aysha project, one of the main projects that had been included for the budget year was a study to start the Asella wind energy project, Alemayehu told MPs.

According to the Minister, the office was able to carry out 60 percent of the plan. As a result, the technical evaluation of the consultant had been endorsed by the management with no objection. He added that the technical evaluation was sent to the African Development Bank (AfDB) and that its decision was being awaited.

However, the Minister did not explain how much money the loan is expected to be from AfDB as well as the details of the Asella wind farm.

Speaking on a similar project, the Minister indicated that the Geba Hydropower electric project had attracted more Chinese companies. Geba is a tributary of Baro River.

The Minister, who also recalled that the corporation had agreed with four Chinese companies earlier, said that their documents were being evaluated.