The Koka Dam is an hydroelectric power project operated by the Ethiopian Electric Power Corporation (EEPCo). It is located 81Km southeast of Addis Abeba on the Awash River.

The water volume flowing into the dam is controlled by a committee consisting of EEPCo experts and Hydrology Department experts from the Ministry of Water Resources. The dam came into operation in 1960 and has a storage capacity of 1,500 metres cubed.

During the flood season that affected several areas of the country, water flow entering the Koka Dam reached 1,200 metres cubed per second, a dangerous flow level. Experts say that 1,000 metres cubed per second is already considered well above long term withstanding.

To ease pressure on the 46-year old dam, Committee members decided to release 300 metres cubed per second of water. It is this decision that Summit claims caused damage to its flower farms downriver.

Mikael Asres, owner and general manager of Summit, told Fortune that his company has been forced to stop farming work to clean up affected greenhouses and put the facility back in order. For the time being,  the 30ht granted from the Investment Commission is the only workable land.

The company had made preparations for the rain season, said Mikael. Beforehand, in order to prevent flooding of its facilities, Summit had installed sand bag levies to protect its flowers. These dykes largely succeeded in holding back the increased flow, but areas that were wrongly assumed to be protected by sand and rock banks were submerged.

Asfaw Dengamo, Minister of Water Resources, told Fortune that the chosen release amount was well within the limits Awash valley companies like Summit had agreed to when they opened for business.

“When we visited the area before the release, it was clear that the dyke built by Summit Agro Plc and the Wonji Sugar Factory could hold up to 400 metres cubed per second.”

The Minister compared this year’s damage to the 1996 release when 600 metres cubed per second was released, causing serious damage at the Wonji factory. The Wonji Sugar Factory is located in a neighbouring compound to the Summit farm.

Before the water release, Wonji Sugar Factory had taken precautionary measures by transporting sugar and other items to Nazareth (Adama) at a cost of around 900,000 Br, said factory sources. It suffered no damages because of the release.

Summit had taken out flood insurance with the Nyala Insurance SC. Summit claimed on its damages right after the floods caused the destruction on the farm.

According to sources from the Nyala, the company is evaluating the request. For now, these sources claimed, it seems that there are two opinions regarding the Koka Dam incident.

One side says that the water released from the dam is not a natural flood, and so flood insurance taken out by Summit should not be enacted. Other executives at Nyala say that whether the water damage is natural or manmade, it still counts as a flood.

Iyob Mehratu, Nyala’s general manager, told Fortune that the claim is currently under evaluation.