China Eximbank to loan Ethiopia $466.4 million for Geba 1 and 2 Hydroelectric Complex Project

In September 2014, the Ethiopian Electric Power signed a contract agreement with the joint venture of Sur Construction of Ethiopia, Sinohydro Corporation, and China Gezhouba Group Company (CGGC) for the construction of the 385-MW Geba 1 and 2 hydroelectric complex on the Geba River in western Ethiopia. Sur Construction holds a 25% share, Sinohydro holds a 40% share, and CGGC holds a 35% share. Under the Geba agreement, Sur is to carry out 25 percent of the construction, with the remaining 75 percent divided among all three companies in cooperation. The contract agreement however, is conditional upon the signing of a loan agreement between the Chinese government and Ethiopian government. According to Hydro Review, Water, Irrigation and Energy Minister Alemayehu Tegenu said 80 percent of Geba's $583 million cost ($466.4 million) is to be financed by the Export Import (EXIM) Bank of China. According to the Sinohydro Corporation, the EXIM Bank of China loan is concessional. The current status of the project is unclear, but Sinohydro Corporation reported expected construction time to be 56 months. Specific loan details are also unclear. Ethiopian Electric Power Corp. invited expressions of interest from firms in 2008 to finance and construct the 220-MW Geba 1 and 165-MW Geba 2 hydroelectric complex in Oromia State. Geba was among 22 projects in Ethiopia, Egypt and Sudan examined by consultants in 2004 as part of an Eastern Nile Power Trade Program study funded by the African Development Bank. The multipurpose complex includes Geba 1 with a head of 480 meters and average annual generation of 935 gigawatt-hours and Geba 2 with a head of 267 meters and average annual generation of 853 GWh. A feasibility study of the complex was completed in 2005 by Norplan-Norconsult, identifying a one-reservoir scheme as the most economic alternative. There is no official reporting as of 2020 on whether any financing commitment from China was made.

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