CET and SGCC provide $1.002 billion supplier's credit for 500kV Power Transmission Line of the Great Ethiopian Renaissance Dam (GERD) Project

On April 26, 2013, China Electric Power Equipment and Technology Co, Ltd (CET) of the State Grid Corporation of China (SGCC) and the Ethiopian Electric Power Corporation (EEPC) signed a $1,002,970,414 supplier's credit agreement for the construction of 500kV power transmission line of the Great Ethiopian Renaissance Dam (GERD). The supplier's credit carries the following terms: 3.08% interest rate, 3 years grace period, and 15 year maturity. Mihret Debebe from the Ethiopian Electric Power Corporation and Jia Zhi Qiang from SGCC signed the deal. The supplier's credit agreement accounted for 85% of the project's total funding, or approximately $1.2 billion. The rest of the funding is being provided by the Ethiopian government. The project was originally planned to begin construction in 2014 and reach completion by 2016.The project was ultimately completed on December 22, 2015. It was auxiliary transmission project of the 6MW GERD to send power to capital Addis Ababa, and it included a 1,240km 500kV double-circuit AC line on the same tower, a 98km 400kV double-circuit AC line on the same tower, two 500kV substations. The project also involved the expansion of 3 existing 400kV substations.

Additional details

This project was also known as the GDHA 500 kV Power Transmission and Transformation project. One source identifies the loan’s interest rate as 3.08%.

Number of official sources

11

Number of unofficial sources

13