Ethiopia recently announced it is to build another dam, named Koysha, after Gibe III, which is the largest of all Ethiopian dams became operational. The Gibe III dam which can generate 1,800 megawatts has faced obstruction challenges by international rights groups and NGOs but was completed with domestic finance to become operational only a few months ago and has now started generating power partially.
The Prime Minister of Ethiopia announced the commencement of the dam following the successful end of long negotiations between the Ethiopian Electric Power (EEP) and the Italian construction company, Salini Costruttori. According to a local newspaper The Reporter, an Italian financial institution named Servizi Assicuative del Commerce Estero (SACE) is to finance the project estimated at EUR 1.5 billion.
Hailemariam told the Parliament that the country’s desire to tap several rivers for power generation is part of plan to boost manufacturing and industrialization and transform its agrarian economy. An Ethiopian delegation led by EEP CEO, Azeb Asnake (Eng.), and head of Legal Affairs Directorate at Ministry of Finance and Economic Cooperation (MoFEC), Wasihun Abate, travelled to Rome to finalize the vendor financing agreement and securing the necessary finance for the project.
Koysha Dam will have a capacity to generate 2000MW of electricity on the lower bank of the Omo River, which is an outward-bound river of Ethiopia to join Lake Turkana, near the Kenyan border in southern Ethiopia.