The Ethiopian Electric Power Corporation announced that that first tender to outsource its utility management to an international company failed, last week. The sole utility company in Ethiopia, EEPCo, is considering further options. 
The tender was put out as part of the power corporations aim to transform its utility operations, including distribution, transmission and power generation.
The transformation is considered necessary because the existing structure is inadequate for increased capacity according to Prime Minister Zenawi, in a presentation to the House of Representatives.Twenty companies had initially expressed an interest in the invitation tendered by the EEPCo, thirteen, however declined the offer after considering the significant costs associated with the project.
A further seven companies who purchased the request for proposals were unable to meet the design criteria prepared by the US consultancy firm, Bain and Company.
The companies felt that the project requires considerable sums of financial capital and was different from the design developed by the consultant explain sources close to the process.
The Transformation Office arranged for Bain and Company to design the details of outsourcing for 1.3 million US dollars. The firm’s initial design which treated transmission, distribution and power generation separately was rejected because it would entail high costs.
The EEPCo decided that it was able to handle all construction related to power generation and requested that Bain and Company produce a new design excusive to distribution and transmission.
The EEPCo boarded came to the decision to manage construction related to power generation because the work is primarily done by consultants explain sources.
Source: Addis Fortune
