The Ethiopian Electric Utility (EEU) has officially signed a 3 billion Birr grid rehabilitation agreement with international engineering and equipment supply firms Alpha TND & LTD and Capital Electech. The extensive project aims to modernize and reinforce electric utility infrastructure in the major regional towns of Ambo, Nekemte, and Asosa. By upgrading aging systems, the initiative seeks to enhance service reliability, expand network capacity, and significantly mitigate persistent technical power interruptions for consumers.
During the signing ceremony, EEU Chief Executive Officer Engineer Getu Geremew highlighted that the project is instrumental in meeting growing customer demands for dependable electricity. He explicitly urged the contracting firms to complete the infrastructure work within the stipulated timeline while maintaining strict adherence to high quality standards. The CEO reiterated that stable power is foundational to driving local economic growth and improving utility delivery across the beneficiary regional urban centers.
Technically, the project encompasses major overhaul operations, including the rehabilitation and upgrading of 325 kilometers of medium-voltage power distribution lines to reduce transmission losses. Additionally, a total of 235 distribution transformers will undergo vital reconstruction and maintenance works. To ensure balanced regional grid stabilization, the utility has allocated 70 of these transformers to Ambo, 121 to Nekemte, and 44 to the town of Asosa.
Representatives from the contracting companies, which are headquartered in Ghana and India, expressed confidence in delivering high-standard electrical supply and network construction. They noted that their international expertise in distribution network expansion will greatly benefit Ethiopia’s energy sector. The firms also voiced readiness to continue partnering with the utility on future infrastructure modernization schemes to enhance customer satisfaction.
The massive utility upgrade is financially backed by the World Bank, utilizing a funding framework that consists of 1.2 billion Birr alongside 12 million US dollars. Officials confirmed that the entire rehabilitation and upgrading project is legally structured to be fully executed and completed within the next two years.