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The board of the Ethiopian Electric Power Corporation (EEPCo), the state electric utility, has selected an Israeli company to manage the corporation.
The Israel Electric Corporation (IEC) was one of the participants in the international tender EEPCo launched to contract its management. EEPCo is currently undertaking several major electric projects and is restructuring itself in hopes of becoming more efficient. It is creating separate divisions for production, distribution and transmission.
The corporation ambitiously hopes to quintuple its production capacity from 2,000 megawatts to 10,000 megawatts by 2015. In addition to this plan the corporation has also revised its 25 year development goals. Currently EEPCo is constructing several power generation plants. This is to allow it to supply power to Djibouti, Sudan, Kenya and Somaliland, which is helping to bring in hard currency into the country.
“Since Ethiopia began exporting power to the region new financers are coming to the country to provide loans for new electric projects,” an expert said.
Sources at the corporation said IEC will provide Ethiopian Electric Power Corporation with consultancy and project management services for the construction of power stations. If the Ethiopian government agrees to award EEPCo’s management to the Tel Aviv Corporation, it will be the second public enterprise managed by foreign companies.
According to sources, the management fee is confidential until the management is officially awarded to IEC and the time period has also not been disclosed.
Ethiopian Electric Power Corporation is a government monopoly for the production, transmission, and distribution of electricity nationwide. Almost all of Ethiopia’s electricity production is by hydroelectric power stations.
The state owned Ethio Telecom (ET), the sole telecom provider in the country, is the first public enterprise that outsourced its management to a foreign based company. In the past couple of years France Telecom has controlled the management of ET on a two year contract. The Ethiopian government had agreed to pay 35 million euro the giant European telecom firm.
IEC is the main supplier of electrical power in Israel. IEC builds, maintains and operates power generation stations, sub-stations, as well as transmission and distribution networks.
The company is the sole integrated electric utility in the State of Israel and generates, transmits and distributes substantially all the electricity used in the country. The State of Israel owns approximately 99.85% of the company.
The IEC is one of the largest industrial companies in Israel, owning and operating an extensive nationwide power distribution network fed by 17 power station sites (including 5 major thermal power stations) with an aggregate installed generating capacity of 13,000MW.