Ethiopia opens 300 MW dam, starts
producing 80 MW

Nov 14, 2009 | Barry Malone

* Six hydropower projects being built
* Government says will spend $12 billion over 25
years

ADDIS ABABA, Nov 14 (Reuters) - Ethiopia opened a dam on
Saturday that it says will produce 300 MW of hydropower as part
of efforts to overcome chronic energy shortages and become one
of Africa's only power exporters, state media said.


















Power shortages are common in Africa and have hindered
investment, even though the continent has abundant potential
resources of solar, hydro, oil, gas, coal and geothermal power.

The Tekeze Dam has started producing 80 MW and that will rise
to 300 MW, state-run Ethiopian Television said. It did not say
when the dam would reach full capacity.

The dam is on the country's Tekeze river and its $356 million cost
was financed by the China National Water Resources and
Hydropower Engineering Corporation.

At 185 metres, it is the tallest hydroelectric dam on the world's
poorest continent.

Outages have been common in Ethiopia for five years. The country
rationed power for over five months this year with lights going off
every second day, closing factories, hampering exports and fuelling
a shortage of hard currency.

Ethiopia has six other hydropower dam projects being built, some
funded by the World Bank. Government officials say the Horn of
Africa nation will become a net power exporter within 10 years,
exporting to Kenya, Sudan and Djibouti.
The country in September agreed deals with another two Chinese
firms, China Gezhouba Group Company and Sinohydro
Corporation, to build two huge hydropower projects.

EEPCo has also signed a preliminary agreement with the
Hydrochina company for the construction of two wind farms to be
reserved for emergency power shortages.

China has displaced many western countries as the major investor
in Africa, where it has pumped billions of dollars into securing
access to Africa's commodities. Ethiopia says it will spend $12
billion over 25 years to improve its power supply.
(Reporting by Barry Malone; Editing by Charles Dick)
                                     
                                      
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