The construction of the Chemoga-Yeda hydropower plant on the outskirts of Debre Markos is lagging behind schedule due to lack of finances.

The 555 million dollar hydropower project was being funded by the Chinese EXIM bank. It was planned to be executed in two stages and to generate 278 megawatt of electricity.

The Chemoga-Yeda River is one of the tributaries of the Nile. Countries downstream of the Nile are concerned about the hydropower project and have been lobbying to the EXIM bank for delay in financing the project, officials of the Ethiopian Electric Power Corporation (EEPCo) said.

The Chemoga-Yeda hydropower project was officially awarded to Sinohydro Corporation, a Chinese firm, in September 2009 and scheduled to be completed in 2013.

Ethiopian officials have been working hard to convince officials of the bank and the government of China to honour the deal for financing the project.

The EEPCo officials say that the Chemoga-Yeda’s contribution is less than one percent of the total volume of the Nile.  “We do not need to deal with others or suspend the project because of external interference,” they said.

Sources at the EEPCo said that officials of the EXIM bank had agreed to release the fund once they understood how small the contribution of the Chemoga-Yeda is to the Nile.

EEPCo officials say that the project will continue in full swing in the near future.

The project is expected to be completed in four years and nine months according to the plan, and will involve the construction of five dams on the Chemoga, Yeda, Sens, Getla and Bogena rivers.

Source: Capital