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Ethiopian Electric Scraps Restructuring

The Ethiopian Electric Power Corporation scrapped a proposed plan to restructure. The restructure called for Ethiopia’s electric power provider to be split into four separate entities.

A 33 million birr study carried out by Italian consultants Ben and Company had proposed the four way split into Power Distribution, General Administration, Utility Management, and Hydroelectric Power Dams.

It was planned that that the split into four different entities, that was to commence as of last November, would make the operations of EEPCo more efficient.

EEPCo opted to maintain its current identity declining to apply the plans for restructuring for the foreseeable future according to a source.

Italian consultants Ben and Co. proposed the plan to reconstruct in July although the idea had been considered over the last ten years.

The board of EEPCo passed on the proposed plan for restructuring with some adjustments to the Council of Ministers which declined to endorse it.

It is to be remembered that the Ethiopian Electric Power Corporation announced the first tender to outsource its utility management to an international company failed, recently. 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.

Source: Capital