Consultants Reaffirm Gibe III HEP Viable in Economic, Financial, Technical terms

On a day-long international workshop held at Beshale Hotel in Addis Ababa on October 19^th, 2009, the joint venture international consultants reaffirmed that the Gibe III Hydroelectric Project is considerably viable in economic, financial and technical terms.

In their Economic, Financial and Technical Assessment (EFTA) draft report, the independent joint venture consultants of Mot Macdonald, Sogreah and the local sub-contracted AG-Consult, financed by AfDB, EIB and EEPCo, indicated that the Gibe III Hydroelectric Project is noticeably feasible in economic, financial and technical perspectives.    

Independent International Consultants presenting their findings to the Workshop Participants

In his opening remark, Ato Meheret Debebe, EEPCo's Chief Executive Officer (CEO), indicated that the purpose of the workshop is to gain essential inputs that can be used to enhance the successful finalization of the Gibe III Hydroelectric Project's economic, financial and technical assessment.

According to the CEO, 35 percent of the project has been accomplished through Ethiopian Government financing.  He pleaded to the potential financiers to appraise the project as fast as possible and be part of the development programs of the country. 

“Although additional studies to fill minor gaps may be necessary in accordance with the safeguard policies of the financing institutions, we believe that such minor gaps can be filled in parallel with the appraisal process. “, he said.

Ato Meheret further elaborated on the basis of the requests by the Government of Ethiopia (GoE) the African Development Bank (AfDB) has committed to cover the costs of the Electro Mechanical works.  The European Investment Bank (EIB) has also shown interest to finance the Hydro Mechanical component. The World Bank in turn is working on availing of Partial Risk Guarantee for Commercial loans that can be granted to the civil works of the Project.

 Ato Meheret pointed out that the Private Window of the African Development Bank has also promised to finance the civil works.  To this end, a mandate letter has already been signed.

Finally, Ato Meheret remarked that the economic, financial and technical assessment (EFTA) report is hoped to assist the financing agencies to speed up their decision in allocating the overdue finance to the Gibe III Hydroelectric Project.

The workshop participants who were drawn from AfDB, EIB, WB, Employer's Representatives, EEPCo's Board and Management members, Italian cooperation, Mid Day Consulting, and Gibe III Hydroelectric Project's financial advisor made worthwhile discussions and comments on the economic, financial and technical assessment findings. 

After considering and investigating all the comments and inputs of the workshop participants, the EFTA consultants are expected to compile and summit the final report in the near future.