(Daniel Berhane)
The Ethiopian government disclosed that it has collected about 4.4 Billion Birr from citizens for the construction of the Grand Ethiopian Renaissance dam project, which is now 19.6% complete.
The total cost of the dam project was said to be 78 billion birr (3.35 bln Euros or 4.8 bln USD) on April 2, 2011, when it was launched.
However, the government recently indicated that the cost estimate has been lowered by 5.5 billion Birr “after several negotiations with the contractor”, which seems to refer to the main contractor Salini Costruttori.
On the other-hand the project design was upgraded to increase the dam’s power generating capacity by 750 MW. The original design indicated that the dam will have two powerhouses on the right bank and one on the left bank with ten and five Francis Turbine Units, respectively. Each of the 15 turbines were to be configured to generate 350 MW, the total installed capacity of the dam.was expected to be (15x350MW) 5250MW. However, the design was upgraded last year.
The revised design indicates that the turbines would be configured to generate to 375 MW and the dam will accommodates 16 turbines – ten on the left bank, 6 on the right bank. Thereby, increasing the the total installed capacity of the dam to (16 turbines X 375 MW) 6000 MW.
The government hopes to raise some 20% (around 14.5 bln birr) of the total project cost, from Ethiopians at home and abroad, mainly through the sell of treasury bonds issued for this purpose.
Data released this month indicate that 9.2 bln has been pledged so far. Of which, 4.4 bln has been paid.
The top performers are salaried employees – from government and private sectors – who contributed by pledging a month’s salary to be paid in 12 months period. The performance of the fund raising from this group is said to be “more than 90%” and a total of 1.8 bln birr has been collected.
Media reports indicate that employees in several institutions are pledging to make similar contribution for a second year. If that is followed by salaried employees throughout the country and also joined by those who didn’t take part in the first round, it appears another 1.8 – 2.4 bln birr may be raised.
On the other-hand, the business community is dragging its foot to honor the amount it had pledged.
Business enterprises reportedly pledged to contribute 4.3 bln birr. However, only about 1.8 bln has been paid up so far.
The biggest pledge made by a single person is 1.5 bln birr by the Ethiopian-born multi billionaire Sheikh Mohammed Al-Amoudi. Of which, he paid only 500 million birr so far. However, this doesn’t include the pledges and payments made by dozens of business enterprises he established in Ethiopia.
The performance of the business sector varies from enterprise to enterprise and among different sectors.
Media reports indicate that Yesu PLC, the Turkish Aica Addis Textile, BGI Ethiopia and Mesobo cement have paid 30, 25, 20 and 15 million birrs, respectively.
Similarly, enterprises such as; NitTo Finish, KKK, Oasis Abyssinia, Mesfin Industrial, Abyssinia integrated steel, Yesu PLC, Habesha steel, HH steel, Derba flower, Ethio-horticulture, Garika flower and Manaskiw are praised for honoring their pledges.
There is no comprehensive listing of the funds raised from the Ethiopian diaspora. However, the state media reported grants and bond purchases made at various times in the past two years.
Among those:
* In UAE: Dawit Gebreigzabiherm, owner Medical Farma PLC and Sky bird Technology, made $500 thousand
* In UAE: Ethiopian community – 2.5 million dollars
* In Canada: Ethiopian community – about 80,000 USD
* In Kenya: Ethiopian community – over 4. 3 million birr
* In Switzerland: Ethiopian community – over 1.2 million birr
* In Washington DC: Ethiopian community – over $1.5 million
* By June 2012, Amb. Girma Biru reportedly said that “over $3.3 mln bond purchase and over $123,000 grant has been made” in the United States.
* In Jeddah: Ethiopian community – half a million dollars
* In UK: Ethiopian community – about 3 million birr
* In Netherlands: Ethiopian community – over 1.1 million birr
* In Berlin: Ethiopian community – about 1.8 million Birr
* In Athens: Ethiopian community – about 20, 980.00 Euros
The list above is not complete and fund raising events are still being held in various cities around the globe.
Fundraising events, however, were at times disturbed by some Eritrean-backed opposition elements and other individuals who wish to substantiate their political asylum applications by participating in such disturbances.
It is ironic that some of these short-sighted oppositions claim that Ethiopia can put the project on hold until their vague political demands are made.
Political analysts indicate that Egypt is engaged in a serious of mega water projects so as to back her claim of “historic rights of exclusive use” of the Nile waters by demonstrating actual use – which practically leaves no extra water for Ethiopia to use in less than a decade time.
It is to be recalled that Eritrea re-affirmed her support for Egypt on Nile issue earlier this month.
In line with its decision that this project shall be self-funded, the government intends to employ various fundraising methods, including lottery tickets.
It is to be recalled that the National Bank of Ethiopia issued a directive requiring all banks to spend 27% of their cash deposit on purchase of treasury bonds. Addis Ababa based think-thank, Access Capital, estimated last year than more than 800 mln birr per month is being collected this way. Though this cash is assumed to be used for financing the dam project, it certainly is not part of the public fund-raising – which includes voluntary purchase of treasury bonds.
The Grand Ethiopian Renaissance dam is scheduled to start delivering electricity in September 2014, when 2 turbine units (700 MW) become operational. However, it’s completion is scheduled for September 2017, according to the timetable released during the project launch.
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Please read my July 2001 article “Collectivism: Raising funds for Renaissance dam“. Two weeks after my article, the government announced grants by salaried employees will be converted into bonds.
Ethiopia is not getting the fullness in tourism from being the site of the ancient Garden of Eden. If the Europeans had such an asset you would see how much they would get out of it. The Garden of Eden site is more important than Rome or London and besides it’s spiritual importance can generate tremendous revenue for the country.
You have it the other way around on the placement of the 16 turbines – Actually it is six on the left bank and 10 on the right bank.
Dear Ethiopians.
You have full right to get benefit from your resources.We in Egypt ,we don’t like the idea of war with ethiopia
You want the dam for elecricity ,to get rid of poverty.these are noble causes.But the dam has a real dangers on us.
for example
we in egypt:-
1-in Egypt our population is 84,314,326 people according to wiki
and
our water consumption is 64 billion cubic meter whit 55 billion from
Nile….that means average per capita water use in Egypt is 700 cubic
meters [per year]
while below 1000 cubic meters means water poverty
2-in Ethiopia population is 91,195,675
and your average per capita water use is 1,355 cubic meter and most of it not from the river
97.5% of Egypt is desert …nothing more
every shortage of 4
billion of cubic meter of water consumption means ….loss of 70 million
m of agricultural lands…..2 million families in streets…loss of
food production by 5 billion dollar
if you started to fill the dam which its capacity is 63,000,000,000 m3 in 6 years as your government said
we will loss 19 billion cubic meter of Nile water
and this means DISASTER .this means KILLING innocent people for electricity
which only the foreign companies & bankers that will profit from it
by dept that they paid for your governement and us Ethiopians &
Egyptians would benefit nothing….
I am sure if your government were honest with you dear Good Ethiopian people ,you wouldn’t approve that
war would solve nothing and also disrespect to others life
i have a dream that both nations become good friends and allies against poverty and corruption
and this can become true by good listenning to each other
sorry for my bad english
P.S. these numbers are real ….if you don’t believe it .try to search it
Hi Daniel,
Thanks for this great post. You said, “In Canada: Ethiopian community – about 80,000 USD”. This needs to be corrected. This 80K was from the Ethiopians in Vancouver, BC; not from “Canada”.
Other cities in Canada have done their part and the grand total for Canada is way bigger than the 80K you have indicated.
Have a look here:
http://EthiopianGranDam.WordPress.com
Have a great day. I really enjoy reading your posts.
We shall build our nation!
Reblogged this on Allana Potash Blog.
even by force
Collecting 90% of 4.4bl from employee is violating equality of burden.In this country being employee is being victim?The other community buy based on their capacity but the employee 1month salary per year even by force.The employee have not right to do the some?I am one employee among who forced and paid.
Collecting 90% of 4.4bl from employee is violating equality of burden.In this country being employee is being victim?The other community buy based on their capacity but the employee 1month salary per year.The employee have not right to do the some?
Most of the money raised in ethiopia has been by strong arming business and individuals.
Ethiopian airlines staff heard that 1 month salary was going to the DAM ,,no consultation ..similar for people in government jobs.
Businesses were called in and told how much they have to donate or else …
The government acts like something out of george orwell 1984 ….when you see a lot of publicity about all the hydro potential the next guarantee is that there will be regular power cuts.