Ethiopia Approves Power Purchase Deal with CORBETTI

  • Council of Ministers also approves digital transformation strategy Bill & New Commercial Code.

ADDIS ABABA – Prime Minister Abiy Ahmed said his cabinet discussed and approved three major bills including Power Purchase Agreement with CORBETTI.

The document was signed by Corbetti Geothermal, the special purpose company developing the project, and the state-owned Ethiopian Electric Power (EEP) in April.

“The conclusion of the Power Purchase Agreement with CORBETTI comes after many years work,” said the prime minister office of Ethiopia.

It involves a range of offices from the Government to create effective legislation such as PPP, Geothermal and Energy Proclamations to support foreign direct investment and private sector participation for investment and technology transfer in Ethiopia.

The project which involves the Ministry of Water, Irrigation and Energy’s EEP, Environmental Protection Authority on one hand and CORBETTI and TULU MOYE companies on the other – will develop total of 300MW Geothermal Power as Public-Private Partnership.

“The Geothermal sector and skills in Ethiopia to tap into this green, clean and renewable energy source to increase energy capacity, security and reliability of Ethiopia,” the office said.

Meanwhile, the council of ministers deliberated on Ethiopia’s Digital Transformation Strategy.
The PM’s office called the document “a centerpiece of government’s effort to drive inclusive growth through innovations and digitalization”.

“It will improve interconnectivity of kebele’s to woreda’s, develop digital knowledge, provide support to the tourism sector, and empower the technology sector as a whole,” it added.

Authorities hope to support ongoing reform efforts on ease of doing business by increasing the capacity of the public sector to provide digital services.

It will enable faster growth of the digital economy in our country and modernize the way of doing business across the public and private sector, the PM office said.

Another bill Abiy’s cabinet adopted on Monday is a draft Commercial Code – half a century after the adoption of the existing Commercial Code.

The code “is a significant milestone in our endeavour to modernize and reform our legal system”, according to the PM Minister Abiy.

Approval of the new Commercial Code by the Council of Ministers has been hailed by the investment commissioner Abebe Abebayehu as “a giant step in the effort to expand the private sector, boost investors’ confidence & stimulate economic growth”.

“Law incorporates regulatory principles inspired by modern commercial practice & corporate governance,” he said in his twitter post soon after the approval.

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