Ethiopia signs financing agreements with AFD, EU

Addis Ababa, 8 April 2015 (WIC) – Financing Agreements for the Development of Geothermal Energy in Tendhao area (Afar) were signed on April 7, 2015 between the Ethiopian Government and French Agency for Development (AFD) and European commission at a ceremony held at the Ministry of Finance and Economic Development.

As per the agreements, the total financing amounting to 16.5 million euros has been jointly provided by the French Agency for Development, through a euro 9 million soft loan, and by the European commission, through a euro 7.5 million grant of the EU Trust fund for infrastructure in Africa.

The project aims at identifying a low-carbon geothermal resources and contributing to the development of this energy sub-sector in the country where there is huge potential.
The funding will also be dedicated to the development of shallow reservoir, equipment purchase and to strengthen the capacities of Ethiopia Electric Power (EEP) and the Geological Survey of Ethiopia (GSE).

Ahimed Shide, State Minister of the Ministry of Finance and Economic Development of Ethiopia and, Christian Yoka, the French Agency for Development Regional Manager in Addis Ababa signed the agreements in the presence of State Minster for Development of the French Ministry of Foreign Affairs, Girardin and witnessed by Brigitte Collet, Ambassador of France to Ethiopia and the African Union, Chantal Hebberecht, Ambassador of the European Union to Ethiopia. (FBC)