Power project taken away from Chinese Company

www.simplesharebuttons.com Share this post...

The new Ethiopian electric power management has taken “Chemoga Yada” power station project away from Sino Hydro Chinese Company after eight years.

The newly established enterprise management has decided to bid the project off for other companies to participate. It is recognized that the Sino hydro signed a contract with the former Ethiopian Electric power co-operation to build the Chemoga Yada power station on 1999.

Even though it was mentioned that the china Exim Bank was going to help finance the project at the time; the bank withdrew its plan due to the reason that Chemoga and Yada rivers are tributaries of Abay River which made the finance inconvenient for the bank.

The Sino Hydro said the money will be released and has been holding on to the project; the government lost hope and took the project away. Accordingly, it was decided that a new finance source to be searched and bid for other companies to take the project. It’s known that the Sino Hydro has been using its own human resources and gathered almost six million Birr for the preparation of the work.

Though the hiring company questioned the delay of the project progress; Sources indicate that Sino Hydro mentioned that the finance for the project would be released within its six letters.
Unfortunately, the finance for the project never came through which at last forced the government to take the project away. At the beginning, it was predicted the project would be finished within four years and nine months; would generate 278 megabyte power if the project was brought to reality. For this specific project 555million Dollar was required and the China Exim Bank had agreed to finance the project.

The Chemoga Yada power station project is located at Amahra region east of Gojam zone; at the end of Debre Markois city. Different sources remark that the reason for the withdrawal of China Exim Bank to finance the project might be because of the rivers for the power stations being tributaries of Abay and so Egypt might be influencing the bank.

By Haimanot Mengesha from Reporter Amharic