Chinese Government provides RMB 95 million grant for 6.6MW Aba-Samuel Hydropower Plant Rehabilitation Project (Linked to Project ID#91696)

In January 2012, the Chinese Government and the Government of Ethiopia signed an RMB 95 million grant agreement for the 6.6MW Aba-Samuel Hydropower Plant Rehabilitation Project. The grant proceeds were to be used by the Government of Ethiopia to finance 75% of the total project cost. The purpose of the project was to rehabilitate the 6.6MW Aba-Samuel hydropower plant, which is located at Andode in East Shewa Zone and the Oromia Region. This follows when, on April 18, 2011, the Chinese Government provided a grant worth ETB 1,297,643 to the Government of Ethiopia to support a feasibility study for the plant's rehabilitation project (captured via Project ID#91696). Established in 1939, the Aba-Samuel hydropower plant stopped operation in the 1970s. PowerChina Huadong Engineering Corporation was the EPC contractor responsible for the implementation of the rehabilitation project. Construction began in November 2014 and ended in December 2016. On December 15, 2016, an inauguration ceremony was held for the Aba-Samuel Hydropower Plant. La Yifan, Chinese Ambassador to Ethiopia, Abraham Tekeste, Ethiopian Minister of Finance and Economic Cooperation, Azeb Asnake, CEO of Ethiopian Electric Power, and Shi Leiming, Vice President of PowerChina Huadong Engineering Corporation, were all present at the ceremony. In addition to successfully completing the rehabilitation project, Shi said that PowerChina had also provided support to road and water provision activities which benefited the local community, and created job opportunities for locals.

Additional details

1. This project is also known as the Small Hydropower Project. The Chinese project title is 阿巴-萨姆尔水电站. 2. The system identification number for this project in the Government of Ethiopia’s Aid Management Platform (AMP) is 87143123101136. According to the AMP, the monetary value of the grant commitment was ETB 154,428,620 and the grant commitment date was April 18, 2011. 1 Ethiopian Birr (ETB) was equal to 0.38 Chinese yuan (RMB) in April 2011, which implies that the ETB 154,428,620 grant commitment recorded in the AMP was worth RMB 58,682,875.60 at the time that it was contracted. This issue warrants further investigation. 3. The AMP system identification number for the feasibility study project is 87143123101135. 4. According to the Public Sector Debt Statistical Bulletin 10 published by Ethiopia’s Ministry of Finance, a framework loan agreement worth RMB 100 million RMB was signed on January 22, 2012 with the following borrowing terms: 0% interest rate, 10 year grace period, and 20 year maturity (as captured via Project#30109). It is unclear whether any of the proceeds from this loan supported the Aba-Samuel Hydropower Plant Rehabilitation Project. This issue warrants further investigation.

Number of official sources

8

Number of total sources

13