2merkato

The African Development Bank is set to invest 22.6 million US dollars to enhance the renewable energy programs in low income countries including those that are active in Ethiopia. The investment plan was endorsed by the SREP’s sub-committee at a meeting held in Nairobi in March.

The investment plan, approved in principle, calls for technical support and guidance from the African Bank to prepare and implement the Assela wind farm project and Phase II of the Aluto Langano geothermal project.

Grants for project preparation of 1.7 million and 900 thousand US dollars were approved for both projects.

Yara International is to increase its investment in the Ethiopian potash sector increasing ownership in Ethio-potash BV from 16.67% to 51%.

Yara had entered into an agreement with two partners to invest in 16.67% of Ethio-potash. The other partners were Seftec with 26% share and XLR with a 57.33% share and management of the company in 2009.

XLR will retain a 49% share while Yara will take over the management of the company with its 51% share. 

Australian Miner, Foreskew, has requested an iron exploration license to prospect for iron in Oromia Regional State, Ethiopia.

The firm is particularly interested in the area between Bale and Harrarghie which is known for oil seepage which is an indication of the presence of uranium and gemstones.

It remains unclear if the Ministry of Mines has began processing applications for exploration licenses for the ban put in place last November according to sources.

Ethiopia has wind power potential that could potentially generate more than one million MW of electricity according to a study.

The first draft of the master plan study carried out by Hydro China Corporation assessed the nation’s potential wind and solar energy said Xu Lushi representing the company.

Wind and solar energy has great potential to meet the growing energy demand and to reduce global warming he noted.