China Eximbank pledges $680 million loan for Halele Warabesa Dam Project

On July 15, 2009, China and Ethiopia signed a 1.9 billion EUR deal for the construction of the Gibe IV and Halele Werabesa dams, which are expected to produce 2,150 MW. Preferential buyers’ credit and concessionary loans from China exim bank will finance 85% of the project, and the Ethiopian government will finance the remaining 15%. Including this agreement between Sino Hydro Corporation Limited and the Ethiopian Electric Power Authority, there were, at the time of writing, seven hydropower dams under construction in Ethiopia with an aggregate capacity of over 5,000 MW. The Halele Werabesa project is expected to commence construction in 2013 and to be operational in 2018 at the earliest. The project will cost between 650 and 700 million USD, including the budget for a 79 km transmission line to carry generated electric power, estimated at 2,300 GWH/year. Officials report that Ethiopia plans to export excess electric power to Sudan, Djibouti, and Kenya. According to a report by International Rivers, updated in 2013, China is no longer financing the construction of the Gibe IV dam However, China is still on line to finance Halale Werabesa with a 680 million USD loan, with Sinohydro as a contractor. An MOU was signed with Sinohydro in 2009.

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