Ethiopia to Sub-contract Power Distribution Subsector to SGCC

The Electric Power Corporation, Ethiopia is to sub-contract its power distribution sub-sector to State Grid Corporation of China.

The Electric provider launched negotiations with the Chinese company following studies to reform its structure in line with the increasing electric power supply of the corporation.

The study conducted revealed that the EEPCo needed to be divided into four parts. The four segments include electric transition lines and power distribution and installation of hydro-power dams.

The project office in charge of preparing the study presented its findings to the board of directors chaired by Dr. Debretsion Geberemichael, Minister of Communication and Information Technology.

The SGCC will take over the management of the more than 2 million customers the corporation has as well as handling the power distribution. Power distribution will include the agreements made with Sudan and Djibouti and Kenya to supply electricity from the Ethiopian grid.

Miskir Negash, Public Relations Officer with the EEPCo declined to comment on the issue.

The SGCC is a government controlled enterprise founded in 2002 to perform government licensed investment projects. At this time SGCC distributes power to an estimated 128 million customers.

The corporation is interested in handing over the power distribution part of the corporation’s task to SGCC.     

Source: The Reporter

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