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The Ethiopian Electric Power (EEP), the state owned electric generation and transmission body is to sign a deal with Tanzania for the purchase of 400MW of electric power. A member of the East African Power Pool (EAPP), Tanzania will be Ethiopia’s second biggest client for electric power once the project commences operation in the coming five years of the second Growth and Transformation Plan (GTP II). The largest client is Kenya, has already agreed to import 600MWof electric power.
The contract agreement between Ethiopia and Tanzania should to be finalized in the coming weeks, according to sources at EEP. “The Ethiopian government has already agreed to provide the stated amount of power before the end of GTP II for the country, I hope they will also accept our proposal,” top management at EEP told Capital.
The project is currently under construction of a transmission line to connect with Kenya from Sodo, SNNP via the border town of Moyale. When the current project is complete, electric power export will be one of the major hard currency earners in GTP II with over half billion USD in projected revenue. By the end of GTP II, the power sector will generate USD 642 million, 15 fold hike from earnings at the end of GTP I.
In the first GTP period (2010/11-2014/15), the country commenced electric power export to Djibouti, Sudan and border towns in Kenya and Somaliland. In the current GTP, power export to Kenya, Djibouti and Sudan is expected to expand. Officials at EEP said that there is also an agreement with Somaliland, a self-declared state out from Somalia, for high levels of power.
“We are undertaking a study for a second line in Djibouti but the amount exported will depend on the study,” an expert at EEP told Capital.
An extra high voltage study is being undertaken by Ethiopia and Sudan, also considering Egypt, also member of the EAPP. “If Egypt will never accept it the study will be concluded up to Sudan,” experts said.
“In GTP II we will at least export electric power to Kenya, Somaliland and Tanzania. And maybe there will be a second line to Djibouti transmitting additional power,” officials at EEP explained.