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The Ethio-Sudan Electric Power Interconnection
Project negotiations are to resume next month
following an over one-year interruption after the
two countries failed to reach a consensus on the
power purchase agreement.
According to Alemayhu Tegenu, minister of Mines and
Energy, a summit of energy ministers from Egypt,
Sudan and Ethiopia would be held in Addis Abeba in
mid-February. At the same time, technique committee
members from the power institutions of Ethiopia and
the Sudan would recommence the negotiations.
“I believe we will reach a power purchase agreement
in our upcoming negotiation,” hoped Alemayehu.
Their disagreement earlier revolved around the
amount Sudan would pay to Ethiopia for the power it
imports, sources disclosed. These sources however
are now optimistic that the two countries would
agree soon following Ethiopia’s decision to resume
oil imports from Sudan.
Following the expiration of the agreements the two
countries signed in 2002, Ethiopia was looking for
another oil supplier in the Middle East. Sudan has
been annually supplying over 150,000 metric tonnes
of benzene to Ethiopia for the past five years on
credit. This is 80pc of Ethiopia’s annual
consumption of benzene.
The Sudanese energy minister Awad Ahmed Al Jass
(PhD) last week signed the one-year oil agreement
with Alemayehu.
Sources disclosed that Ethiopia may be planning to
pay for its oils imports in a countertrade agreement
by supplying electricity.
The 41 million dollars the World Bank released in
December 2007 for the transmission line installation
from Ethiopia to the Sudan is another big factor in
negotiations being resumed now, according these
sources. The transmission line within Sudan’s
territory requires an additional 26.5 million euros.
National Electricity of Sudan (NEC), the state-owned
Sudanese power supplier, and the Ethiopian Electric
Power Corporation (EEPCo) with the Ethio-Sudanese
Power System Interconnection Project Office began
their last negotiation in September 2006.
Though Hifab, consultant of the project, was
scheduled to present a resolution on construction
and power purchase agreement based on its
feasibility study, the meeting adjourned without
setting a future date.
Ethiopia wanted the power purchase agreement to be
made after the total installation of the
transmission lines was complete while Sudan wanted
the agreement to be made for both at the same time.
EEPCo currently provides electricity to over 20pc of
the population generating 600mw power. The
Corporation is planning to expand its generation
capacity to 4,000mw in 2010, boosting the coverage
to 50pc.
Moreover, EEPCo has envisaged exporting electricity
to Djibouti and Kenya as well as Sudan.
Accordingly, negotiating with these countries for
the past four years, it has struck a deal with
Djibouti and installation of transmission lines have
commenced. The deal with Kenya and Sudan has yet to
be finalised though.
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