12 November 2007 – A prefeasibility study is being undertaken by the Ethiopian government on three hydro power projects in the Nile Basin, it was announced last week by minister of water resources Asfaw Dengamo.
The three sites have a potential combined installed capacity of 5 700MW (Kara Dobi has a potential installed capacity of 1,700 MW, Mendia 2,400 MW and Border 1,600 MW).
The Nile Basin Initiative (NBI), under which this project would fall, was formed 10 year ago as a way of overcoming trans-boundary river financing issues, under which lending organisations required ‘no objection’ from neighbouring countries for irrigation and hydropower projects to be undertaken.
The NBI negotiations are about to be finalised and general consensus has been reached on the equitable utilisation of the Nile River. It will now be possible to secure loans and grants for developments on the Nile River.