China to partially fund Gibe IV hydroelectric dam in Ethiopia

China to partially fund Gibe IV hydroelectric dam in Ethiopia On July 14, 2009, Ethiopia has signed a 1.9 billion euro deal with China to construct two hydroelectric dams with a capacity of more than 2,000 megawatts, according to its national electricity company.

Mihret said the pact that was signed on the 14th was for the construction of Gibe IV and Halele Werabesa dams, expected to produce 2,150 MW when completed in five years. Gibe IV is a continuation of three other hydro dams on the 325-mile (523 km) Omo river.

Eighty five percent of the project will be financed through preferential buyers' credit and concessionary loans from China with the balance covered by Ethiopia, said Mihret Debebe, EEPA's general manager. As of October 2011, plans have been approved and funding secured for Gibe IV. The expected year of commission for this project was 2015.

The total cost of the project is to be 1.22 billion USD, of which China is to fund 85%. China's Sinohydro is to be responsible for part of the construction of this project. The Give IV dam has a capacity of 1,600 MW