The African Development Bank is to approve a 100 million US dollar loan to Ethiopia for the financing of the Geba hydro electric power project.

The project, designed to have the capacity to generate 371 MW of energy, is expected to cost 732 million US dollars. The project will encompass the construction of the Geba I dam expected to generate 214 MW and Geba II dam expected to generate 157 MW it was said.

The costs anticipated for the construction of the dams has increased in the five years the project was delayed as the Ethiopian Electric Corporation was engaged with other more feasible and easier to execute projects said an official with the corporation.

The Ethiopian government will seek other financiers to cover the rest of the cost as well as the budget that will be allocated internally noted Lamin G. Barrow, Country Representative of the Bank in Ethiopia.  

The funding for this project will be the last financing that Ethiopia will receive from the African Bank as it has utilized the 600 million US dollars allocated for its use until the bank offers new allocations.

Source: Fortune