The Ethiopian Electric Utility (EEU) has officially signed a 3 billion birr grid rehabilitation and upgrade agreement with two international engineering and supply firms, Alpha TND and Capital Electech, to comprehensively modernize the power distribution networks in Western and Northwestern Ethiopia.
This major infrastructure initiative specifically targets the upgrading of utility networks in three critical regional hubs: Ambo, Nekemte, and Asosa. Speaking at the official signing ceremony, Getu Geremew CEO of EEU emphasized that the project is vital for stabilizing regional grids, minimizing local outages, and ensuring businesses and households receive a dependable supply of electricity, while urging the contracting firms to strictly adhere to quality standards and the strict two-year completion timeline.
The multi-billion birr initiative focuses heavily on upgrading legacy infrastructure to boost network capacity and drastically reduce technical power losses across the designated areas. As part of the core project components, engineering teams will undertake extensive line upgrades covering 325 kilometers of medium-voltage power lines to expand network capacity and mitigate frequent blackouts.
Furthermore, the contract outlines the modernization and rehabilitation of 235 grid transformers, which includes the strategic overhaul of 70 transformers in Ambo, 121 in Nekemte, and 44 in Asosa. Representatives from Alpha TND and Capital Electech, which are headquartered in Ghana and India respectively, stated that their extensive global expertise in electrical equipment supply, distribution network rehabilitation, and line installation will ensure a high-standard execution.
The overall implementation of this two-year utility project is backed by financial support from the World Bank through a blended funding structure comprising 1.2 billion birr in local currency and 12 million USD in foreign exchange.
This modernization effort aligns directly with a broader national strategy by the EEU to aggressively upgrade regional distribution networks, integrate advanced power infrastructure, and enhance overall customer satisfaction through reliable energy access.
