Ethiopia invites private investment in power sector

Reuters; September 27, 1999

ADDIS ABABA, Sept 27 (Reuters) - Ethiopia said on Monday it was inviting foreign private investment in generation, distribution and sales of electricity in the Horn of Africa country.

Previously investment in Ethiopia's energy sector was open to local investors only.

The General Manager of Ethiopian Electric Power Corporation Sossaye Mengistu told reporters that the government was ready to issue the relevant licences.

``The validity of the licence for power generation is set at 40 years, while that of power supply will be 50 years,'' Mengistu said.

``The directives include the provisions of permits for the export and import of hydro-electric power,'' he added.

He said export and import licences will cover a period of 10 years and the Corporation will remain the electricity regulator.

Ethiopia is currently constructing seven hydro-electric dams across the country and hopes to complete them in the next five years to more than double its power generation capacity to 713 megawatts from the current 340 megawatts.



Ethiopia Offered Free Zone on Red Sea Coast: Report

Xinhua; Sep 26, 1999

ADDIS ABABA (Sept. 26) XINHUA - Ethiopia, which is eager to increase its import and export, has received an offer from neighboring Sudan to use its port and to open business at Red Sea Free Zone, an Ethiopian weekly reported Sunday.

Sudan, which established a 26-square-kilometer Red Sea Free Zone along the Sudanese Red Sea Coast, is expected to attract the increasing business of Ethiopian import and export, Sudanese officials were quoted as saying.

The free zone situated at south of Port Sudan is qualified to host infra- structure investment projects, export processing industries, banking and insurance activities, warehousing and other related activities, according to the report by "the Capital" .

Since the conflict between Ethiopia and Eritrea erupted last May, Ethiopia has been forced to use the Djibouti Port, which has turned to be the only sea outlet of Ethiopia.

Ethiopian Trade and Industry Minister Kassahun Ayele said recently that the Ethiopian government would consider using alternative ports in neighboring countries.

He suggested that given improved political relations with Sudan, Ethiopia will try to use Sudanese ports as well as Kenya's Port of Mombasa and the Berbera Port in Somalia. He stressed that "depending on only one port is dangerous."

According to Sudanese officials, the industrial, commercial and service investment projects approved in the Sudanese Free Zone will enjoy exemptions from all customs taxes except service charge.

The Red Sea Free Zone is currently managed by the Sudanese Free Zone and Markets Company, a government agency established in 1993 with a 20 million U.S. dollar working capital.

The Red Sea Free Zone is the first phase out of the 600 square kilometers of free zone area projected to be established in different parts of the country, Sudanese officials said.



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