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Gibe III was officially inaugurated on December 17, after 10 years of construction. It has an installed capacity of 1,870 MW.

Construction of Gibe III began in July 2006 upon the signing of an engineering procurement agreement between the then EEPCo and the Italian company Salini Constructtori S.P.A. at a cost of 1.5 billion Euros. At the time the project was expected to be completed in 2012.

The power project site lies between the boundaries of Wolayita and Dawro Zones, some 470 km south of Addis Ababa. It is located along the lower course of the Omo River, some 155 km from the Gilgel Gibe II hydropower station. The project has a 240m high rock filled dam with a crest width of 10m and a length of 630m.