EIB, China Exim Bank Jostle For Ethiopia Wind Farm Deal

December 12, 2012

VENTURES AFRICA – Ethiopia’s proposed Aysha I Wind Farm is drawing increasing investor attention, with the European Investment Bank (EIB) and the China Export Import Bank (Exim) expressing interest in financing the project.

The Aysha Wind Power Project which envisages the construction of three plants with a total output capacity of 100 megawatts – launched by theEthiopian Electric Power Company (EEP) – has seen multiple significant foreign investors indicate a desire to finance the new development, the most recent party to enter the financing fray being the EIB, EEP officials have revealed.

Chief Executive of EEP Mihret Debebe disclosed that the EIP has approached the electricity provider with a view to investing in the new wind farm, with Mihret adding that the bank will begin project appraisals imminently, according to the Reporter.

Mihret went on to reveal that China’s Exim bank is also keen to finance both the Aisha I and Aisha II wind farm projects, with this bank also having indicated to the EEP that projects appraisals will be commenced shortly.

Ethiopia has of late launched a series of wind power projects with a view to improving power supplies across the country, in a bid to fuel the economic growth of the country.

Last month the Adama II wind power project got under way as the EEP signed a $340 million deal with China’s GCOC for the construction of the plant, which is an extension to the Adama I operations – the two plants billed to provide much-needed energy for the proper supply of power to industries active in the Adama region.

Meanwhile, the Aisha I and II projects – to be located on Dijbouti Road – are the next steps for the country’s wind power expansion, and are intended to power the Ethio-Dijbouti Road Corporation’s endeavours.