The Agreement was signed by Semereta Sewasew, State Minister of Finance and Danish Ambassador to Ethiopia Kira Sindbjerg on behalf of their respective countries.

Denmark backs two Water, Energy Projects in Ethiopia

ADDIS ABABA – Ethiopia and Denmark on Friday signed a grant agreement that will finance clean energy and water projects in the east African nation.

The total finance envelope of the two projects is 70 million Danish Krone or 555 million Birr, according to the Ministry of Finance.

Denmark’s Ambassador to Ethiopia Kira Sindbjerg said this “great cooperation will continue and expand.”

The grant will finance the Danish-Ethiopia Energy Partnership (DEEP) and Ethiopian Danish Strategic Water Sector Cooperation (WATER SSC) Phase I.

“The first project is aimed at undertaking energy modeling and planning as an important tool in creating a clean, stable and secure energy supply and strengthen the integration of variable renewable energy,” the Ministry says.

The project will be implemented through the Ministry of Water and Energy, Ethiopian Electric Power, and Ethiopian Electric Utility.

The second project, the Ministry says, will be implemented in Hawassa and Dire Dawa.

Both cities where residents are experiencing water challenges, due to fast demographic growth, high urbanization rate, and high industrial and agricultural development leading to water over-extraction.

The project, the finance ministry says, intends to improve the access to basic water for the local population, improve a more sustainable use of the limited resource, especially groundwater, and improve water security for the future.