Ethiopia gets $203m World Bank loan for Geothermal energy – officia

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ADDIS ABABA – The Ethiopian said had secured 203 dollars loan from the World Bank to explore the potential geothermal energy and boost its to become a regional power hub. Ethiopia, which currently generates 2,300 mega watts electricity, is pursuing a five year Growth and Transformation (GTP). Ethiopia’s Minister State for Finance and Economic Development, Ahmed Shide and World Bank Country Representative Guang Chen signed the agreement in Addis Ababa Saturday. The minister said the was also proposing 25 per cent annual growth in the energy sector. Officials the told NAN that 178.5 dollars the amount was provided as loan, while 24.5 dollars as grant. Speaking while signing the agreement, Shide said the funds would be utilised in financing two geothermal sites Aluto Langano and Alalobad in the region of the country. He said that part of the funds would be utilised to establish the country’s institutional framework for geothermal development. “The domestic demand for electricity in Ethiopia is expected to grow by more 25 per cent per year. “Over the next five years, Ethiopia intends to significantly expand electricity coverage, reaching 75 per cent of towns and villages and connecting four million to the grid,’’ he said. NAN recalls that in October 2013, Ethiopia signed an agreement an Icelandic firm for four dollars private sector investment to tap its geothermal power resources. The resources would assist the country to realise its dream becoming a major exporter energy within the East Africa region. The Icelandic Reykjavik Geothermal company owned by investors signed the deal Ethiopia to construct a 1,000 MW geothermal power plant in the country. (NAN)