By Jean Marie Takouleu (Afrik21)
The Ethiopian parliament recently validated a 117.3-million Euro loan agreement between the government and Danish bank Danske Bank for the construction of the Assela wind farm.
The project, which is now entering its construction phase, will provide 100MW of electricity to the Ethiopian national grid. Danske Bank is supporting the project with a loan of 117.3-million Euros.
“I am pleased to see that the agreement for the development of the Assela wind farm, which will diversify Ethiopia’s energy mix, has been adopted by Parliament. I am grateful to the Danish government for generously providing grants and funding on favourable terms. In terms of capacity development, Ethiopia will also learn and benefit enormously from the Danish wind energy companies in terms of production and operation of the facilities,” says Seleshi Bekele, Ethiopia’s Minister of Water, Irrigation and Energy.
Assela wind power project is now entering its construction phase. The is approximately 150km south of Ethiopia’s capital Addis Ababa, near the city of Iteya in the regional state of Oromia. Its construction has been entrusted to Siemens Gamesa Renewable Energy, a company based in Zamudio, Spain.
The park will consist of 29 turbines of 3.45MW each. The entire installation will inject 100MW into the Ethiopian electricity grid through a substation to be built by the state-owned Ethiopian Electric Power (EEP) with a loan of USD10-million from the African Development Bank (ADB).
This clean energy project will require an investment of 146-million Euros. In addition to the 117.3 million Euro loan from Danske Bank, the Ethiopian government will also draw on a 28.7 million Euro grant from the Danida Business Fund (DBF), a fund administered by the Investment Fund for Developing Countries on behalf of the government of Denmark.
Article first published by Afrik21