ADDIS ABABA– The African Development Bank has approved a 995,000 USD grant to support the roll out of a sustainable procurement framework for Independent Power Producers (IPPs) in Ethiopia. The Sustainable Energy Fund for Africa grant will encourage private investments into hydropower projects through Ethiopia’s Renewable Energy Programme, according to the press release sent to The Ethiopian Herald.
It will strengthen the government’s capacity to undertake bank ability and technical analysis including feasibility assessments of projects in the hydro priority pipeline. The grant also provides for environmental and social impact assessments, resettlement action plans, and preparation of bidding documents for hydro projects.
“A well-structured procurement framework is crucial in mobilizing the investments necessary to achieve universal energy access in Africa. The SEFA program will boost private IPPs participation, and spur investments into the Ethiopian hydro power sector,” said Wale Shonibare, the Bank’s acting Vice President for Power, Energy, Climate Change and Green Growth.
The program also complements the assistance provided by the Bank’s Institutional IPP/PPP Support Project, as well as the Bank-financed MekeleDallol and Semera-Afdera Power Supply for Industrial Development and Access Scale-up Project,” Shonibare added. Ethiopia has a vast but untapped renewable energy potential.
Under a long-term development strategy, the government has outlined a National Electrification Program (NEP), targeting universal access by 2025 through a 65 percent on-grid, and 35 percent off grid combination. The goal is to transform the country into a regional energy hub by 2030.
The Ethiopian Herald, May 23/2019
BY STAFF REPORTER
