The negotiations between the Ethiopian Electric Power Corporation (EEPCo) and the National Electricity Corporation of Sudan (NEC) concluded without resolution after four days of discussions last week.

The Ethiopia Sudan Power System Interconnection Project negotiations, held at the Addis Abeba Hilton Hotel from September 19 to September 22, 2006, had three agendas that were to be addressed.

The negotiations plan was to dedicate the first day to the feasibility study done by consultancy company, Hifab; the second day was to look at the construction agreement and the third day was to negotiate a power purchase agreement and to draft and approved the minutes from the previous meetings, so as to reach an agreement; but neither an agreement nor a discussion as such had taken place between representatives of both countries.

“Some minor discussions were held on the power purchase agreement, how much energy Ethiopia can provide and what type of electric power Sudan needs, but the negotiations concluded without enough talks being held,” said Tesfaye Batu, representative for EEPCo. 

Although it was expected for experts from both countries to hold talks on the three agendas, the meeting was adjourned without any information as to when and where the discussions were to continue.

In order for Ethiopia to receive a 29.3 million euro loan from the World Bank, so as to export electric power to the Sudanese border, it needs to sign the Construction and Power Purchase Agreement; the deadline given for signing and submitting the agreement to the World Bank is October 2008.

“We believe that there is ample time for us to fulfil the negotiations,” Tesfaye told Fortune.

Sudan, on the other hand, needs 26.5 million euros for the project.

EEPCo intends to install a double circuit electric power transmission line that will carry 230kv over 296km from Bahir Dar to the Sudanese border town of Shehedi.

According to information from the Ethio-Sudanese Power System Interconnection Project Office at EEPCo, a request for the Expression of Interest was issued by the utility so as to contract a supervising consultancy firm; 13 companies submitted their interest. Companies that have been short-listed for the next selection level will be announced next week.

Information from the Project Office shows that Ethiopia intends to export 200mw of power to Sudan from the already existent double circuit power line in the Northern part of the country.

Although both electric corporations have not decided on a date for their next negotiations, sources said that the Sudanese negotiators would rather not have it before the end of Ramadan.

“The fact the meeting ended before addressing the controversial topic of the power purchase agreement will make the following meeting an even tougher one,” a professional from the sector said.

An expert in the field stated if EEPCo fulfils the power export project with Sudan, it will hugely exceed projects that were planned to be overseen by the Nile Basin countries, giving EEPCo great results.

While negotiations between Ethiopia and Sudan were still underway, Ethiopia and Kenya negotiations were taking place simultaneously in different halls of the same hotel.

These talks ended with the signing of a memorandum of understanding, confirming the supply of electric power to Kenya in the coming 15 months.

In the future, EEPCo intends to build a hydroelectric power generation station that will supply 600mw with a capacity of 400kv double circuit electric power to be transmitted to the Kenyan capital, Nairobi.