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Koysha Hydroelectric Project in Ethiopia ran out of money

Koysha Dam, the second biggest dam next to Abay ran out of money. The construction of the dam was started in 2008 on the Omo River. The dam that is being built with a capacity of 2200 MW needs 2.5 billion EUR. The construction started with a non concessional loan,these loans are more relaxed owing to either interest rate lower than what is ongoing in the market, or by grace periods, or a combination of both. But at the moment Ethiopia doesn’t have the privilege of getting non-concessional loans. Payments of ETB 328.9 million and ETB 9.4 billion have been paid till date from an advance obtained from outside sources through Sallini PLC according to a commercial advance system. Right now however, the provision of finance has been disrupted because another agreement needs to be signed, in order for the next payment to be released. To solve this problem, Dr. Abraham Belay, executive officer of Ethiopian Electric Power Company has been requesting for the release of the money from the Finance and Economic Minister of Ethiopia. The executive officer told Mereja TV that the government will find a solution to obtain the advance.