Friday, April 15, 2005

Ethiopia, Italy Sign 220 Million Euro Loan Agreement

The Ministry of Finance and Economic Development and the Italian Embassy signed an intergovernmental agreement for a soft loan worth 220 million Euro.

According to a press release sent to The Daily Monitor, the loan is to be used to co-finance a new hydroelectric power plant on Gilgel Gibe River.

The Italian funding was officially announced during Prime Minister Meles Zenawi's visit to Rome in November 2004, when it was agreed that energy will be one of the main sectors in which Italy supports Ethiopian development. It is envisioned that the new hydropower plant will play an unprecedented role in harnessing the huge hydroelectric potential of Ethiopia by increasing the country's generation capacity by almost 40 percent and making the tremendous benefit of electricity available to approximately 800,000 new customers, it said.


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