Country Report Djibouti November 2006

The domestic economy: Engineers are appointed for Ethiopia power connection

Firm progress is now being made on the long-planned project to connect Djibouti's electricity grid to Ethiopia's and to make hydroelectric power available in Djibouti. The project is expected to reduce the cost of Djibouti's electricity from the current average diesel generator cost of 22 US cents per kwh to 6 US cents per kwh under the terms of the contract with Ethiopia. Following the final signing of a formal agreement between the two countries in April (August 2006, The domestic economy: Infrastructure), two international engineering companies have now been appointed by the Ethiopian Electric Power Corporation (EEPCo) to take forward different aspects of the project. A British company, PB Power, will be responsible for constructing distribution substations, transmission line interconnections and distribution work for border towns in both countries. A Canadian company, RSW International Inc, will work closely with Electricité de Djibouti (EDD) on tariffs, and will also train engineers from both countries. Further engineers are expected to be appointed soon. The two companies are expected to finish the project, involving the construction of a 283-km transmission line, by 2009.

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