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24/7 Promise, Exporters Still Facing Power Cuts

 

 

The Ethiopian Electric Power Corporation (EEPCo) is struggling to provide a round the clock power service to exporters that would fetch the country sizable export earnings, despite the decision made by its Board of Directors.

 

The board had decided on May 8, 2008 that companies producing exportable and food products should be exempted from the power load shedding. Nonetheless, export companies are still complaining that they have not been beneficiaries of the latest regulation.

 

Ethiopian Meat Producer-Exporters Association of flour factories, water producers as well as sugar producers claim that they are still experiencing black outs.

 

Elfora Agro Industry Plc, Helemeks Plc, Luna Export Abattoir Plc, Modjo Modern Export Abattoir Plc and Organic Export Abattoir Plc, on May14 requested the power monopoly to exclude them from the power rationing.
 

The association’s over seas customers are disgruntled because orders are not being delivered to them as expected, according to a letter signed by Getachew Hagos, president of the association.

 

Close to 150 companies that are engaged in the export of textile, leather, food commodities and other goods, as well as 90 flower farms, were identified by the Federal Government as sectors that yield significant returns for the budget year.
 

The Trade Ministry wants the export sector to grow by five per cent annually. Its target in this budget year is 1.7 million dollars. In the 2006/2007 budget year, it envisaged fetching 1.5 billion dollars but fell short of 300 million dollars.

 

In the first nine months of this budget year, the country grossed one billion Birr, after targeting to earn 1.28 billion Br.

 

It is feared that the current blackouts will further exacerbate the failure to attain the mark at the end of the budget year.
 

Other companies engaged in the production of wheat and flour are also feeling the pinch of power shedding.

 

“We do not get power from EEPCo for 10 days. The moisturized wheat ready for grinding becomes useless, unless it is ground instantly,” Teshome Kassa, shareholder and general manager of KOJJ Flour Factory told Fortune.

 

He also requested the state power company to stick to its promise.

 

Milk producers are also grumbling about the lack of power.
 

“One cannot possibly imagine the production of milk without electricity,” Desalegn Tilahun, general manager of Shola Milk, told Fortune.

 

EEPCo began the power shedding one month ago. Moreover, its executives estimate the power shortage to continue until July.

 

“We are providing electricity to those companies engaged in100pc export and dedicated to production,” Sendeku Araya, public relations head at the EEPCo, told Fortune. “We could not help those in mid towns although we are still trying.”
 

His assertion is not accepted by Tesfalidet Hagos, commercial manager of Luna Export Slaughter House Plc.

 

“We have installed a 15Km line on our 100hct land in Meki,” he told Fortune. “There has been no power so far.”
 

By WUDINEH ZENEBE

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