Intl Market Research Report

65
Reach New Heights FORESEEN Business Consulting IMC Ref: L_A-1401-CL-EG_0102 Developed by FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878 E-mail: [email protected] 1 International Market Research in Ethiopia for Your Partner in

Transcript of Intl Market Research Report

Page 1: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

IMC Ref: L_A-1401-CL-EG_0102

Developed by

FORESEEN Business Consulting

February 2009

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

1

International Market Research in Ethiopia for Al-Babtain Power & Telecommunication Co. - Egypt

Your Partnerin Reaching New Heights

Page 2: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Table of ContentsIntroduction……………………………………………………………………3

Project Scope..……………………………………...…………………Project Methodology…..………………………………………………

Market ReaserchMarket Overview & Future Growth……………...……………………4Electrification Status …………………………………………………..5GENERATION ……….…..……………………………………………5Energy Production of Hydro and Geothermal Power Plants………6Energy Production by System & Source (GWh)……………………7Transmission System………………………………………………….8Existing Lines and Substations ……….…..…………………………9Number of Customers (ICS)……….…..…………………………….10Number of Customers (ICS+SCS)………….. ……………………..11Energy Sales – ICS+SCS (GWh)…………………………………...12Expectations Demand/Supply of Electricity………………………..13EEPCo Contacts, Directors & Excutives…………………………...13EEPCo Capacity Building Program…………………………………15Power System expansion Master Plan……………………………..16Projected Supply and Demand Balance……………………………17Electric Power Generation Program………………………………...18Electric Power Transmission Program……………………………...19Electric Power Distribution Program………………………………...20Ethiopia Imports of (Towers & lattice masts of iron/steel) in Values & Quantities………………………………………………..24Exporters to Ethiopia of (Towers & lattice masts of iron/steel)…..25Power Projects in Ethiopia…………………………………………...27On-Going Projects of Electricity Generation & Transmission…….31Underway projects…………………………………………………….34Funding Bodies………………………………………………………..35Titles of Tenders issued by EEPCo…………………………………37Contractors working with EEPCo……………………………………40List of other Contractors in Ethiopia…………………………………43References……………………………………………………………..45

Appendix 1: FORESEEN Business Consulting…….............................46

Company Overview………………………………………………………….Company Services……………………....................................................Our Experiences…….............................................................................

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

2

Page 3: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

(I) Introduction(I) Introduction

Project Scope

The scope of this assignment is to research export market with potential to company to identify target segments & export opportunities that best fit the company resources and capabilities.

Project Methodology

The following graph represents our proposed methodology to conduct the assignment:

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

3

Macro-Environment

Task Environment

Company

Page 4: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Ethiopian Electrical Power Market

O verview

Ethiopia is a landlocked country in the eastern Africa. It shares its boarder with Eritrea, Sudan, Kenya, Somalia and Djibouti. The total area is 1.1 million Km 2 . The population of Ethiopia is about 71.7 million (2006 population census).

Ethiopian Electric Power Corporation (EEPCo): Owns, manages and develops electricity generation, transmission and distribution facilities and retail to customers.

Ethiopian Electricity Agency (EEA): A Federal organ to regulate the activities of electricity suppliers for the supply of efficient, reliable and affordable electricity to the public.

Ministry of Mining & Energy: Responsible for the development of mining and Energy in the country including the power sector.

The Ethiopian Electric Power Corporation (EEPCO) is the national electricity utility, which is wholly government owned.

EEPCo manages and operates power-generating facilities, the national transmission and distribution grids, and is also responsible for the supply of electricity to more than 1,396,000 customers.

ETHIOPIAHydro Power Potential More than 45,000 MW

EEPCo - Establishment

The Ethiopian Electric Light and Power Authority (EELPA), which was established in 1956, after having undergone restructuring has been reorganized as the Ethiopian Electric Power Corporation (EEPCo).

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

4

Page 5: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Supply SystemPresently the Corporation maintains two different power supply systems; namely, the Interconnected System (ICS), which is mainly supplied from hydropower plants, and the Self-Contained System (SCS), which consists of mini-hydropower plants and a number of isolated diesel generating units that are widely spread over the country.

Electrification Status

Number of electrified towns under EEPCo are 1658, 22% (at the end of 2004/05 which were 16%) of the population have access to electricity. 

         GENERATION

Inter Connected System (ICS)The ICS consists of 8 hydro, 13 diesels and one geothermal power plant with total installed capacity of 669.9 MW, 112.2 MW and 7.3 MW respectively. However, due to aging of the plants the dependable total capacity is only 721.1 MW. Over 96 % of the total generation in the country comes from the ICS.

Self Contained System (SCS)

The SCS consists of three small hydro power plants and several diesel power plants. Generation in this system is mainly by diesel power plants having an aggregate capacity of 31.7 MW. The contribution from the small hydropower plants is only 6.15 MW.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

5

Page 6: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Energy Production of Hydro and Geothermal Power Plants

PLANT NAME PRODUCTION(MWh) PLANT PEAK( MW )

Koka 105,483 33.00

Awash II 138,403 30.00

Awash III 165,247 32.00

Finchaa 750,757 128.00

Melka Wakana 331,396 150.00

Tis Abay I 15,732 41.29

Tis Abay II 375,771 71.30

Gilgel Gibe 378,714 165.00

Aluto Langano 0 0.00

Sor 13,325 3.90

Yadot 906 0.28

Dembi 2,320 0.66

Grand Total 2,279,054 453.53*

(*) This is ICS suppressed peak load and it does not reflect the true value.

Energy Production by System & Source (GWh)

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

6

Page 7: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

System/Source 2001/02 2002/03 2003/04 2004/05 2005/06

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

7

Page 8: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

ICS          

Hydro 1975.2 2007.1 2262.5 2,521 2,832

Diesel 0.1 21.1 16.1 18.4 12

Geothermal 1.0 0.0 0.0 0.0 0

Total 1976.3 2028.2 2278.6 2,539.6 2,844

SCS          

Hydro 16.6 16.5 16.5 17.9 19

Diesel 16.5 19.0 22.7 31.1 32

Total 33.1 35.5 39.2 49.0 51.0

ICS + SCS          

Hydro 1991.8 2023.6 2279.0 2,539.1 2,851.0

Diesel 16.6 40.1 38.8 49.5 44.0

Geothermal 1.0 0.0 0.0 0.0 0.0

Total 2009.4 2063.7 2317.8 2,588.6 2,895.0

 

TRANSMISSION

Transmission System

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

8

Page 9: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

The high voltage network consists of both 230 kV and 132 kV transmission voltages, and 66 kV & 45 kV sub-transmission voltages. Presently there are 8,003.93kms of lines in service.

Network is provided by step down substations connected to the respective transmission and

sub-transmission voltages. Common winding arrangements include 45/15 kV, 66/15 kV, 132/15 kV and 132/66/15 kV. In total there are 108 transmission substations and substations in hydro power stations supplying the distribution system.

Supply of the distribution

Existing Lines and Substations

VOLTAGE LEVEL T/L (KM) S/S(EA)

230 kV, 1,715.19 10

132 kV, 2,556.05 45

66 kV, 1,742.05  26

45 kV, 475.93 23

Total  ** 6 489.22 104

(**) The total figure includes 3 substations and lines of 245.3 km from SCS & 8 substations in hydro power stations.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

9

Page 10: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

DISTRIBUTION

Distribution System

The distribution system consists of 1,038.2

Number of Customers (ICS)

Tariff Category 2001/02 2002/03 2003/04 2004/05 2005/06

Domestic 535254 571975 636650 739009 820514

Commercial 79731 83806 91811 104331 1114281

Street Light 985 1139 1266 1546 1782

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

10

Page 11: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

LV Large Industry 7957 8204 8871 10036 11422

HV Large Industry 96 93 101 122 131

Own Consumption 418 440 474 1184 1216

Total 624441 665657 739173 856228 949346

Power distribution in both ICS and SCS is effected at a primary voltage of 33 and 15 kV, consisting entirely of 3-phases, 3-wire feeders, and is stepped down to a utilization voltage of 380/220 V (3-phase, 4-wire) using 3-phase transformers.

km 33 kv lines, 12,171.02 km of 15 kV lines, 8,894 distribution transformers and 19,017.48 km of 380/220V lines. At present 1.4 million (including June, 2007) customers are connected in both the ICS and SCS.

Number of Customers (ICS+SCS) 

Tariff Category 2001/2002 2002/2003 2002/2003 2004/05 2005/06

Domestic 559205 597976 685432.6 820378.5 971135

Commercial 85913 90167 101553.1 118493.4 138364

Street Light 1043 1207 1389.154 1739.622 2137

LV Large Industry 8180 8444 9356.243 10917.91 13212

HV Large Industry 99 96 106.858 132.0472 150

Own Consumption 445 470 521.9604 1345.481 1466

Total 654885 698360 798360 953007 1126464

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

11

Page 12: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Energy Sales - ICS (GWh)

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

Tariff Category

2001/2002 2002/2003 2003/2004 2004/05 2005/06

Domestic 568.7 583.9 638.0 704.6 759.8

Commercial   381.9 391.3 444.8 507.7 556.7

Street Light 12.6 16.6 21.2 28.3 32.1

LV Large Industry

301.0 369.7 346.9 401.5 494.1

HV Large Industry

330.9 314.0 364.4 386.8 468.1

Own Consumption

1.8 2.7 2.0 4.0 5.3

Total 1596.9 1678.2 1817.2 2032.9 2316.1

12

Page 13: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Energy Sales -ICS+SCS (GWh)

 

Expectations Demand/Supply of Electricity:

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

Tariff Category 2001/02 2002/03 2003/04 2004/05 2005/06

Domestic 579.5 596.9 652.0 731 796

Commercial   391.2 401.7 455.3 528 584

Street Light 13.1 17.2 21.7 29 34

LV Large Industry 303.8 373.2 350.5 411 511

HV Large Industry 331.9 315.0 365.3 393 478

Own Consumption 1.9 2.8 2.1 4 6

Total 1621.4 1706.8 1846.7 2095 2408

13

Page 14: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Demand for electricity in Ethiopia stands at more than 622 MW. At present EEPCo has an installed generating capacity of 814 MW. The installed generating capacity is estimated to be 3028 MW by

the year

2010. And 6588 MW by the year 2015. Over 98% of the total generation in the country comes from the hydropower sources.

Contact EEPCo:

Ethiopian Electric and Power Corporation (EEPCo)

P.O.Box 1233 Tel. 251-01-560042

Fax : 251-01-550822 E-mail: [email protected]

EEPCo’s Board of Directors

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

1. Girma Birru Chairman, Minister Ministry of trade & Industry

2. Shiferaw Jarso Member, Representative of the Government under the House of People’s Representatives

3. Fikru Desalegn Member, State Minister of Capacity Building

4. Asfaw Dingamo Member, Minister, Ministry of Water Resource

 5. Abie Sano Member, Commercial Bank of Ethiopia

6. Wolde-Ghorgis Wolde-Mariam

Member, Professor (Dr.) of Electrical Engineering

7. Temesgen Damtew Member, National Intelligence and Security Service.

8. Gosaye Mengistu Member, Ministry of Mining & Energy

9. Getachew Betru Member, Dr. G.B.A Consultancy Ltd.

10. Miheret Debebe Secretary, General Manager of EEPCo.

14

Page 15: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Executive Managing Directors of EEPCo.

Name Designation

1. Ato Miheret Debebe General Manager

2. Ato Abdul Hakim Mohammed Deputy General Manager, Generation Construction

3. Ato Abebe TesfayeDeputy General Manager, Transmission & Substation Construction & Operation

4.Ato Girma Tegenge Deputy General Manager, Distribution

5. Ato Melaku Mamo Deputy General Manager, Generation Operation

6. Ato Shiferaw Telila Deputy General Manager, UEAP

7. W/ro Beletu Befirdu Deputy General Manager, Finance

8. Ato Tegengework Yirga Deputy General Manager, Human Resources and Services

EEPCo Capacity Building Program

Strategies that should be pursued in order to address this issue are: 

Strategy No.1

Implement the Civil Service Reform Program in the shortest possible time and bring about modern management system.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

15

Page 16: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Strategy No.2  

Implement Modern Management Information System through out the corporation including Regions and Districts offices.

Strategy No.3

Build capacity of local manufacturers and contractors to participate in the power system expansion works.

Electrical Power Industry Master Plan Program

Strategies that should be pursued in order to address this issue are: 

Strategy No.1

Perform consecutive updating of the Master Plan by own force.

Results of Power System expansion Master Plan update

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

16

Page 17: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Dependable Capacity Energy (GWh)

Power (Mw)

Year 2007 Demand 3339 622Year 2007 Supply Capability

Thermal/Geothermal

Hydroelectric

 

546

2837

 

78

647balance 44 103

  Projected Supply and Demand balance own Demand (Target Scenario)

Projected Supply and Demand balance with export Demand of Sudan & Djibouti (Target Scenario)

  Short Term (to 2009) Short Term (to 2009)  Energy

(GWh)Power (Mw)

Energy (GWh)

Power (Mw)

Forecast Demand Target Scenario

5708 1360 6509 1610

Existing and committed Supply capability

6600 1884 6600 1834

Projected needs Target Scenario

Nil Nil Nil Nil

 Note: Power demand includes a 20% capacity reserve for maintenance and forced outages.

Projected Supply and Demand Balance – with Target Forecast  

Year Forecast Demand

Total Requirement

Generation Capacity with Thermal

Energy GWh

Generation Capacity with out Thermal

Deficit with Thermal

deficit without Thermal

Peak

MW

Energy

GWh/year

Peak

MW

Energy

GWh/year

Capacity MW dependable

Energy GWh Capacity MW dependable

Energy GWh Peak

MW

Energy

GWh

Peak

MW

Energy

GWhFirm Average Firm Average

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

17

Page 18: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

2006 675 3398 810 3398 726 3088 3315 647 2610 2837 84 310 163 7882007 803 4045 964 4045 733 3137 3364 654 2659 2886 231 907 309 13862008 972 4894 1166 4894 1453 5599 6319 1374 5121 5841        2009 1133 5708 1360 5708 1913 7078 7683 1834 6600 7205        2010 1351 6806 1621 6806 1913 7078 7683 1834 6600 7205        

Note: Power demand includes a 20% capacity reserve for maintenance and forced outages.

 

Electric Power Generation Program

Strategies that should be pursued in order to address this issue are:

Strategy No.1  

Complete the following committed projects by preventing delays in commissioning:

Tekeze Hydro Electric Power Plant, 300MW and 971GWh Gilgel Gibe II, Hydro Electric Power Plant, 420MW and 1600GWh Amerti Neshi 100MW and 215GWh

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

18

Page 19: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Wind park 120MW Beles 460MW and 1540GWh Gilgel Gibe III    1870 MW

Total 3270MW

Strategy No.2

Start building new generating stations in order to avoid possible energy shortfall in the mid term build new smaller power plants with short lead- time like:

Halele 100MW Werabesa 340MW Chemoga Yeda 278MW Gojeb 150MW Tekeze II 450MW Gibe IV 2000MW.

            Total 3318 MW.

Strategy No. 3

Developing renewable energy resources, such as wind and geothermal power

Developing Wind 80MW and proven geothermal fields in the rift valley

Strategy No. 4 

Developing non renewable energy from non indigenous resources

Electric Power Transmission Program  

Strategies that should be pursued in order to address this issue are:

Strategy No.1

Construct & complete Transmission Lines and S/Station in order to connect the grid and transmit the generated power from the newly constructed and under construction power plants.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

19

Page 20: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

  Strategy No.2

Complete the construction of new Transmission Line and S/Station projects as per the universal electricity access program.

  Strategy No.3

Strengthen the saturated & over loaded Transmission Line and S/Station.

Strategy No.4

Complete the construction of National Control Center to utilize effectively and optimally the transmission networks.

Strategy No.5

Realize the Ethio-Sudan, Ethio-Djibouti and Ethio-Kenya interconnection system in order to expand the Grid.

                                          

The possible interconnection

 

Electric Power Distribution Program

Expansion of distribution network

Strategies that should be pursued in order to address this issue

Strategy No.1

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

20

Page 21: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Increase the existing distribution network coverage /Rural Electrification

Strategy No.2        

Encourage communities to construct distribution lines (along with small generation in isolated systems).

Strategy No.3          

Involve IPPS in the construction of localized distribution lines with small generation plants

Major proposals to over come these barriers for implementation of the strategies are:

Introduce credit - facilities for low income new customers. Create conducive environment for participation of Communities & IPPS.

Major actions that must be taken over the next 6 years to   implement the   major proposals are:  Increase Number of Electrified towns from 800 – 6000; Increase Number of Customers from 1,398,000 - 2,600,000; Increase Electricity access from 20% - 50%; Decrease Power loss from 19.5% - 13.5%.

Reduction of voltage drop

Strategies that should be pursued in order to address this issue are:

Strategy No.1

Rehabilitate the existing distribution networks according to the engineering standards.

Strategy No.2

Carry out the distribution extension and expansion works with proper design and standards for the new customers.

Strategy No.3

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

21

Page 22: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

In rural areas upgrade the limitation of medium voltage level from 15 Kv to 33 Kv.

 

Reduction of waiting time for service hook-up

Strategies that should be pursued in order to address this Strategic issue are:

Strategy No.1

Ensure availability of sufficient materials, tools, and equipments to connect additional customers.

Strategy No.2

Review the existing connection process, develop optimum work- flow (Process re-engineering), and prepare an outlined procedures.   

Strategy No.3

Implement the distribution system reform study.

Strategy No.4

Introduce incentive schemes.

Reduction of service of outages     

Strategies that should be pursued in order to address this Strategic issue are:

Strategy No.1

Rehabilitation of the existing distribution networks according to the engineering design and standards.

Strategy No.2

Apply new technology.

Strategy No.3

 Establish emergency service closer to the customers.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

22

Page 23: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Financial Capacity Building Program   

Strategies that should be pursued in order to address this issue are:  Strategy No. 1

 Boost value of the corporation by increasing the cash flow generating from business operation (operating and investing decisions) and minimizing the cost of capital (financing decisions).             Strategy   No. 2

Increase EEPCO’s Revenue by revising tariff and sale of all generated electricity to the customer and reduces the operational costs.

Strategy No. 3

Collect long outstanding receivables and implement modern bill collection system that will make easy the collection process.

 Strategy No. 4

Develop and improve customer relationship with local and international financing institutions.

Strategy No. 5

Exercise aggressive market expansion.

Strategy No.6

Increase cash flow through the issuance of bonds to investors at acceptable interest rate and payment conditions.

Strategy No. 7

Increase cash flow by selling obsolete materials and scrap materials that could not give service to the corporation.

Strategy No. 8

Implement modern finance functions to plan, raise & use of funds in an efficient manner to achieve corporate financial objectives.  

 

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

23

Page 24: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Preventive Maintenance Program

Strategies that should be pursued in order to address this issue are:

Strategy No.1

Perform Preventive maintenance intensively and sustainably.

Strategy No.2

Perform the replacement of those devices that are over aged and characterized by frequent failure with new and latest technology.

Major actions that must be taken over the next five years are:  

Perform preventive maintenance activities in all the power plants and Substations. Undertake preventive maintenance on 30,000 kms of high voltage transmission lines. Undertake preventive maintenance on 9,876 kms of medium and low voltage lines. Rehabilitate 7,946 kms of medium and low voltage lines. Complete the rehabilitation activities at Awash, Koka and Tis Abay I HEPPs. Rehabilitate 238 high voltage transmission line towers. Rehabilitate 15 Substations.

Ethiopia Imports of (Towers & lattice masts of iron/steel) in USD Values & Quantities: HS2002: 730820 (Towers & lattice masts of iron/steel)

Country Year Commodity FlowValue (USD)

Quantity Name Quantity

Ethiopia 2007Towers and lattice

masts, iron or steelImport 13,614,018

Weight in

kilograms9,217,891

Ethiopia 2006Towers and lattice

masts, iron or steelImport 5,961,967

Weight in

kilograms4,326,449

Ethiopia 2005Towers and lattice

masts, iron or steelImport 10,170,277

Weight in

kilograms8,782,513

Ethiopia 2004Towers and lattice

masts, iron or steelImport 2,405,968

Weight in

kilograms2,045,687

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

24

Page 25: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Ethiopia 2003Towers and lattice

masts, iron or steelImport 5,830,844

Weight in

kilograms3,806,638

Ethiopia 2002Towers and lattice

masts, iron or steelImport 3,395,986

Weight in

kilograms2,079,470

Ethiopia 2001Towers and lattice

masts, iron or steelImport 3,627,933

Weight in

kilograms2,931,793

Ethiopia 2000Towers and lattice

masts, iron or steelImport 1,154,005

Weight in

kilograms1,017,365

Ethiopia 1999Towers and lattice

masts, iron or steelImport 46,563

Weight in

kilograms13,020

Ethiopia 1998Towers and lattice

masts, iron or steelImport 2,962,433

Weight in

kilograms2,523,900

Ethiopia 1997Towers and lattice

masts, iron or steelImport 743,092

Weight in

kilograms675,562

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

25

Page 26: Intl Market Research Report

Exporters to Ethiopia of (Towers & lattice masts of iron/steel)

Page 27: Intl Market Research Report

Period Trade Flow

To FromHS

Code Trade Value

Net Weight (kg)

2007 Import Ethiopia World 730820 $13,614,018 9,217,891

2007 Import Ethiopia India 730820 $11,408,339 8,079,425

2007 Import Ethiopia China 730820 $1,397,368 938,672

2007 Import Ethiopia Bosnia Herzegovina 730820 $521,380 82,096

2007 Import Ethiopia Egypt 730820 $128,851 74,709

2007 Import Ethiopia United Kingdom 730820 $80,876 27,976

2007 Import Ethiopia Italy 730820 $47,423 5,096

2007 Import Ethiopia Turkey 730820 $27,924 9,913

2007 Import Ethiopia Kenya 730820 $1,599 3

2007 Import Ethiopia Germany 730820 $258 1

2006 Import Ethiopia World 730820 $5,961,967 4,326,449

2006 Import Ethiopia Turkey 730820 $3,572,328 2,634,907

2006 Import Ethiopia India 730820 $1,538,166 1,270,180

2006 Import Ethiopia Egypt 730820 $191,789 110,360

2006 Import Ethiopia Germany 730820 $174,645 9,317

2006 Import Ethiopia China 730820 $115,410 136,438

2006 Import Ethiopia Australia 730820 $100,527 107,000

2006 Import Ethiopia Israel 730820 $90,861 32,300

2006 Import Ethiopia Italy 730820 $90,269 13,076

2006 Import Ethiopia United Kingdom 730820 $62,325 7,404

2006 Import Ethiopia Rep. of Korea 730820 $21,326 2,663

2006 Import Ethiopia Djibouti 730820 $2,505 1,977

2006 Import Ethiopia Japan 730820 $1,701 680

2006 Import Ethiopia United Arab Emirates 730820 $61 67

2006 Import Ethiopia Sweden 730820 $30 59

2006 Import Ethiopia France 730820 $15 16

2006 Import Ethiopia Netherlands 730820 $7 5

2005 Import Ethiopia World 730820 $10,170,277 8,782,513

2005 Import Ethiopia India 730820 $4,697,056 4,435,696

2005 Import Ethiopia Turkey 730820 $2,415,074 2,642,711

2005 Import Ethiopia China 730820 $1,258,189 817,538

2005 Import Ethiopia Saudi Arabia 730820 $673,835 443,232

2005 Import Ethiopia Sweden 730820 $365,927 156,651

2005 Import Ethiopia Tunisia 730820 $258,636 106,489

2005 Import Ethiopia Italy 730820 $150,894 17,351

2005 Import Ethiopia Netherlands 730820 $92,934 32,520

2005 Import Ethiopia Bosnia Herzegovina 730820 $87,590 92,329

2005 Import Ethiopia Switzerland 730820 $77,596 27,331

2005 Import Ethiopia United Kingdom 730820 $42,087 4,032

Page 28: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Power Projects in Ethiopia

by Kaleyesus Bekele, 07 June 2008

After the introduction of power shading, the sales of generators, lamps and candles have boomed.

Lamps are sold on the streets of Addis Baba and the sound of generators is heard in every nook

and corner. Unable to meet the growing electric power demand, coupled with the failed belg rains,

the Ethiopian Electric Power Corporation (EEPCo) introduced a power rationing program almost

two month ago. According to EEPCo, the country’s power demand had increased by 15 percent. To

mitigate the problem officials of EEPCo and the Ministry of Mines and Energy (MME) are working

together day and night.

Currently, EEPCo’s maximum electric generating capacity is 814 MW, 80 percent of it hydro and 20

percent geothermal and thermal. However, due to various reasons, including water shortage, the

corporation generates only 600 to 700 MW. EEPCo is undertaking massive hydro-power projects.

Tekeze( 300 MW) Tekeze began in 2002. Tekeze, which is being constructed by a joint venture

between EEPCO and the China National Water Resources and Hydropower Engineering

Corporation, represents China’s largest joint venture in Africa to date, Gibe II (420 MW), Beles(460

MW), Gibe III (1870 MW) and Fincha Amenti Neshe (100MW).

The construction of Tekeze is expected to be finalized in August. The first unit will start generation

in September, if everything goes according to schedule. It is also to construct a wind turbine farm

which can generate 120 MW near Mekelle, Adama (Nazareth) and Gondar towns. The corporation

plans to construct more than ten hydropower plants. The feasibility study of Gibe IV has been

finalized. Gibe IV will have the capacity to generate 2000 MW.

Some 250 km south of Addis Ababa 2, 820 people from 30 countries of different profession are

working twenty four-hours on a 420 MW hydropower project, Gibe II. Two thousand and one

hundred of them are Ethiopians and 720 are expatriates. Engineers, geologists, construction

experts, technicians and other professionals are laboring to finalize the project.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

28

Page 29: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

After inaugurating the 184 MW Gibe I hydro-power plant in 2004 the Ethiopian Electric Power

Corporation launched the construction of Gibe II. The power project lies on an ever green mountain

and gorge in the Sokoru locality between Oromia and the Southern Nations, Nationalities and

Peoples Regional states. Because of the project, 80 km of asphalt and all-weather road that

connects the two regional states has been constructed.

The very idea of the project is to take the water that comes out of Gibe I power house and to divert

the natural course of the river and take it to Gibe II power house through a 25.8 km tunnel. The

Gibe II would use the water that come from from Gibe I so there is no need to build another dam.

Semegnew Bekele, project coordinator of Gilgel Gibe II, said that the water head difference would

be 490.m. “What makes Gibe II different is that it does not have its own dam. It uses the water that

comes from Gibe I,” Semegnew said. The water that comes out of the tunnel would run down a hill

in two big pipes what they call penstocks, into a power house where there are four turbines each of

which will have a capacity to generate 105 MW.

An agreement has been signed between EEPCo and the contractor, Salini Costruttori S.P.A, the

Italian construction company that built Gibe one dam, in April 2004 for all the civil work of Gibe II.

Work on the project commenced in June 2004. Under Salini, there are three specialist companies,

namely SELI, an Italian company, Voith Siemens, German company, and ATB, an Italian company.

SELI has been drilling and building the tunnel and Voith Siemens undertaking the hydro mechanical

work.

The total cost of the project is 5.2 billion birr. The Italian government provided a soft loan of 220

million euros for the hydro-power project and the European Investment Bank conferred 50 million

euros. The balance is covered by the Ethiopian government.

According to Semegnew, ninety percent the work has been finalized. The inlet, the penstock, and

power house have been built. The turbines and the power controlling machines are installed. Of the

25.8 km tunnel, 17.1 km has been drilled and built.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

29

Page 30: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

SELI uses two tunnel-boring machines (TBM), drilling on both side of the mountain. The TBM is 240

long and the drilling head’s diameter is seven meters. The drilling gear is made of diamond. The

plan was to drill both side of the mountain with TBM 1 and TBM 2 from west and east direction.

Work on the east side is progressing. TBM 2 drilled at least 13 km. However, TBM 1, which was

drilling the tunnel near the inlet, has encountered a serious problem.

The TBM 1 has been drilling the rocky mountain but after it drilled four km it came across an

unconsolidated layer (lose land). The drillers discovered a huge hole filled with mud that started to

flow to the tunnel. First they tried to excavate the mud and to cover the area with concrete. But all

was in vain. The machine was unable to proceed with the drilling because of the lose earth and the

mud inflow. Highly trained and experienced soil experts were hired to solve the problem but to no

avail. It has been a year since TBM 1 ceased operation. SELI dismantled the machine for

maintenance. It took SELI three months to dismantle the machine. And this week they will start to

assemble the machine. According to officials of SELI, it would take them a month to assemble the

machine.

Reliable sources told The Reporter that a decision has been made to divert the direction of the

tunnel to avoid the lose earth. So now the contractor, SELI, is preparing to resume the drilling in a

new direction. “The idea to use two TBMs was a clever decision by the management of EEPCo,”

says Semegnew. “Though one of the TBM ceased operation the other one is still running. If there

was only one it would have been worse,” he added.

The original plan was to finalize the construction this month. However, because of the problems this

could not be realized. Officials of EEPCo hope to complete the work by March next year. But some

experts fear that it could take a year to finalize the work on the project.

The water levels in the dams were lowest in the past several years. Getnet Bekele, head of Gilgel

Gibe I, told The Reporter that the country’s energy demand has shown a sharp increase. In 2004-

2005 Gibe I generated 798 million kWh, in 2005-2006 816 million kWh in 935 million kWh and in

eight months this year it generated 753 million kWh. Gibe I has three turbines with the capacity to

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

30

Page 31: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

generate 184 MW. But due to shortage of water most of the time it only runs one of the generators.

However, since last week water run-offs started flowing to Gibe I dam. In the past few days the

water height has shown a five cm increase in every 24 hour. And last week the engineers working

at Gibe I and Gibe II were delighted with the coming of the run-offs.

“We appreciate the management of EEPCo, the board and Minster of MME for their leadership and

follow up,” said Semegnew.

With a population of eighty million, the majority of Ethiopians do not have access to

electricity. At the moment, access to electricity is about 22 percent. Only 1,800 towns are

electrified from a total of 7,000 rural towns and villages. The Ethiopian Electric Power

Corporation (EEPCo) has 1,396,000 customers, 40 percent of them in Addis Ababa. Ninety-

five percent of the customers are households and the rest are members of the industrial and

service sector. However, the industrial and service sector which accounts for only five

percent of the number of customers consumes 69 percent of the electric power.

Per-capita energy consumption is about 25 kWh per year, 500 kWh is considered the average

minimum level of consumption per capita for reasonable quality of life. As the majority of the

population does not have access to electricity bio-mass is widely used. The use of traditional fuel

such as firewood is aggravating soil erosion and habitat destruction.

The government has launched a universal electricity access program (UEAP) to be

implemented by EEPCo with the view to enhance the access to fifty percent within five

years. At the moment, EEPCo’s maximum electric generating capacity is 814 MW, 80 percent

hydro and 20 percent geothermal and thermal. However, because of various reasons,

including water shortage, the corporation generates only 600 to 700 MW. At the moment the

power deficit is 80 MW.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

31

Page 32: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

On-Going Projects of Electricity Generation & Transmission in Ethiopia:

1. Generate 1870 MW at the Gibe III site: Description: The Ethiopian government and an

Italian company signed a $ 2 billion project to generate 1870 MW at the Gibe III site on River Omo located about 470 km from Addis Ababa), which said to be the biggest in Africa.

Location: Ethiopia

2. Ethiopia-Sudan Interconnector- World Bank Project ID: P074011  

Description: December 20, 2007 – The World Bank's Board of Executive Directors today approved an International Development Association (IDA) credit of US$41.05 million to the Government of Ethiopia to help the country finance its portion of a new transmission line connecting Ethiopia’s to Sudan’s power grids. The Ethiopia-Sudan Interconnector will allow power trading between the two countries, where just 6 and 22 percent of the respective populations have access to electricity, thereby promoting Ethiopia’s power export revenue generation capacity.

The transmission line will run between the Ethiopian towns of Bahir-Dar and Metema and up to the border with Sudan to connect the countries’ grids.

Location: Ethiopia

Closing Date 31-DEC-2011

3. Ethiopia Electricity Access Rural Expansion Project, Phase II – GPOBA-

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

32

Page 33: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

World Bank Project ID: P105651

Approval Date 11-NOV-2008

World Bank Team Lead Maurer, Luiz T. A.

Borrower GOVERNMENT OF ETHIOPIA

Implementing Agency EEPCO

4. Electricity Access (Rural) Expansion Project Phase IIWorld Bank Project ID: P101556

Description: This project involves US$200.7 million to support the next four years of GoE’s electrification program. From those, it is estimated that US$130.00 will be finance by IDA financed, to be supplemented by a US$10 million grant from GPOBA.

The project would have three major components: (1) Grid-Access Expansion; (2) Mini-Grid (Off-Grid) Electrification; and (3) Capacity Building, comprising studies, training and two pilots.

Location: Ethiopia

Approval Date

Closing Date

World Bank Team Lead

Implementing Agency

03-JUL-2007

31-DEC-2011

Maurer, Luiz T. A.

EEPCO

5. Extension of National Power Grid to Afar Region Project Description: Project Objectives: The Project aims at

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

33

Page 34: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

providing reliable and sustainable electricity supply to AFAR region by electrifying it and connecting it to the national power grid.

Location: Ethiopia

6. Ethiopia-Djibouti Power Interconnection Project. Description Ethiopia-Djibouti Power Interconnection

Project. Project Description: The components of the project are: (a) development of power transmission network (construction of transmission lines and substations) (b) electricity supply to border towns (c) project supervision and management (d) Institutional Support to EdD/EEPCo. The project supports the establishment of power trade between Ethiopia and Djibouti and increase in population’s access to electricity at affordable prices.

Location: Ethiopia

7. Ethiopia - Accelerated Electricity Access (Rural) Expansion World Bank Project ID: P097271

Description: June 22, 2006- The following project was approved today by the World Bank’s Board of Executive Directors:

 IDA CREDIT: US$133.42 million TERMS: Grace period = 10 years; Maturity = 40 years

The main objective of this project is to establish a sustainable program for increasing access to electricity in rural communities, thus supporting broad-based economic

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

34

Page 35: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

development and helping to alleviate poverty.

Location: Ethiopia

Approval Date

Closing Date

World Bank Team Lead

Implementing Agency

03-JUL-2007

31-DEC-2009

Maurer, Luiz T. A.

EEPCO

Underway projects:

- Two companies have won tenders of 45 million dollar to send power to Sudan. ENERGOINVEST will construct 297km of 230KV transmission line from Bahir Dar through Gondar to Shehedi in northern Ethiopia and then to the border with Sudan. The contract with SUNIR was signed to extend the existing substations at Bahir Dar, Gondar and Shehedi to accommodate the additional transmission lines. World Bank has fully financed the project. EEPCo expects the exports to generate monthly income of about seven million dollars after being finalized by the end of June 2010

- A separate power connection project is under discussion under the Nile Basin Initiative. It envisages exports of 1,200 MW and 2,000 MW to Sudan and Egypt respectively.

A 263 km cable to supply 40 MW to the Red Sea state of Djibouti is already under construction and is expected to cost $62 million.

- The Ethio-Kenya project is still in the bid preparation stage

- Ethiopia Plans to Light-up by 2015Ethiopia, whose population is expected to swell from 75 million to more than 100 million by 2015, plans to light up the entire country in the next eight years, the head of the Electric Power Corporation (EEPCO) said on Wednesday.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

35

Page 36: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

EEPCO General Manager Mihret Debebe said a combination of hydro, geothermal and wind power generation projects, in addition to distribution and transmission programs, would help Ethiopia achieve its ambitious goal.

The Horn of Africa country produces 800 megawatts of electricity from hydropower dams, reaching 19 percent of the population.

By 2010, the country will be able to generate more than 4,000 megawatts of power and install enough distribution lines and high voltage networks to provide access to electric power to more than 50 percent of the country's population, Mihret told reporters.

The construction of five hydropower dams was expected to be completed by 2010, Mihret said.

"The construction of geothermal and wind power generation in addition to hydropower dams during the next eight years will help achieve total electrification of the country by 2015," he added.

The cost of building the dams, which runs into billions of dollars, would be met by the state, the World Bank and loans from international financial institutions, Mihret said without giving any further details.

Funding Bodies to Ethiopian Electric Generation & Transmission projects:

1. World Bank

2. European Investment Bank

3. African Development Bank (AfDB)

Titles of Tenders issued by EEPCo:

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

36

Page 37: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Bellow is the hyperlinks to tenders issued by EEPCo which is available on its website: http://www.eepco.gov.et/Tender/tender.html

- SPECIFIC PROCUREMENT NOTICE ( Friday, 23 January 2009)

- Request for Expression of Interest from Potential EPC Consultant ( Friday, 07

November 2008)

- The Ethiopian Electric Power Corporation (EEPCO) issues this notice of invitation

to bid ( Thursday, 30 October 2008)

- REQUEST FOR EXPRESSION OF INTEREST FOR SUPPLY OF SPARE PARTS AND

SERVICE ( Wednesday, 29 October 2008 )

- REQUEST FOR AN EXPRESSION OF INTEREST   FOR THE FINANCING AND

IMPLEMENTATION OF THE GEBA HYDRO POWER PROJECT ( Tuesday, 14 October

2008 )

- ETHIOPIAN ELECTRIC POWER CORPORATION INVITATION TO CONSULTANT

( Tuesday, 14 October 2008 )

- Amendment for Previous Invitation to Bid (Tuesday, 23 September 2008)

- Local Invitation For Bid (Monday, 22 September 2008)

- EXTENSION FOR THE EXPRESSION OF INTEREST (Tuesday, 09 September 2008)

- INVITATION FOR BIDS ( Saturday, 06 September 2008)

- ADVANCE PROCUREMENT/RENTAL NOTICE TO ALL PROSPECTIVE DIESEL GENERATOR SUPPLIERS OR COMPANIES (Thursday, 04 September 2008)

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

37

Page 38: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

- Invitation To Bids ( Friday, 29 August 2008)

- Advanced procurement (Friday, 29 August 2008)

- Invitation To Bids : Ethiopian Electric Power Corporation MIS Project Office (Wednesday, 27 August 2008)

- Invitation To Bids ( Monday, 25 August 2008)

- Invitation To Bids ( Monday, 25 August 2008)

- Ethiopian Electric Power Corporation Customer Contribution and Distribution

Extension & Maintenance programs (May 27, 2008)

- Ethiopian Electric Power Corporation (EEPCo) invites all consulting Architects and

Engineers Category II and above (May 27, 2008)

- GIBE III - ADDIS ABABA POWER TRANSMISSION PROJECT (May 19, 2008)  

- INVITATION FOR BIDS (Posted date April 07,   2008)

- INVITATION FOR BIDS (Posted date February 22,   2008)

- Customer Contribution and Distribution Extension & Maintenance Programs

(Posted date December 07, 2007)

- Wind power construction project (Posted date December 04, 2007)

- Metal tender (Posted date September 18, 2007)

- ENERGY ACCESS PROJECT: Urban Distribution Network Rehabilitation Project

(Posted date September 12, 2007)

- Customer Contribution and Distribution Extension and Maintenance Programs

(Posted date September 04, 2007)

- Urban Distribution Network Rehabilitation Project (Posted date July 27, 2007)

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

38

Page 39: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

- Customer Contribution And Distribution Extension & Maintenance Programs

(Posted date July 14, 2007)

- Request for Expression of Interest from Potential EPC/Contractors (Posted date

July 11, 2007)

- EEPCo Disposal Tender (Posted date July 09, 2007)

- Aluto Langano Geothermal consultancy Service

- Amendment No 1 to the tender for the rehabitation of Aluto Langano Geothermal

Power Plant, Tender RHGP 1/97

- Amendment No 2 and answers to questions to the tender for the rehabitation of

Aluto Langano Geothermal Power Plant, Tender RHGP 1/97

- Invitation to bid for Computerized Maintenance Management System of Electric

Power Generating Power Plants, Tender CMMS-97

- Distribution Tender standard Document (For Comment!)

- GCC-SCC-Forms-Electromechanical works (For Comment!)

- Appendix To Tender Tender forms Final-civil works (For Comment!)

- Proposed evaluation method-Electromechanical works (For Comment!)

- Instruction to Bidders-Electromechanical Works   (For Comment!)

- Instructions to Bidders Final-civil works (For Comment!)

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

39

Page 40: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

- FIDIC Part II Civil Works Final (For Comment!)

- Invitation for bids for the supply of Distribution Materials, Tender No. UEAP 5/98

due 20 February 2006

Contractors working with EEPCo:

- SABA Engineering Plc. Fax:+ 251-11 4391230 / + 251-11 4391617, Email: [email protected], Akaki Kaliti Subcity ,Kebele 10 H.No 1382 ,P.O. Box 62668 Addis Ababa, Ethiopia

- Kabew Construction Company.Asmara Road, Addis Ababa 11403, Tel: +251-11-6623944,

Fax: +251-11-6633725

A contract agreement amounting over 142 million Birr with the above two local constructors engaged in production of concrete electric poles was signed on November 24, 2007 to hand over the poles in 18 months. The budget would be covered by the loan the World Bank provided for rural electrification program.

- China National Water Resources and Hydropower Engineering CorporationNo. 2, Chaoyangmen Nandajie, Chaoyang District, Beijing, 100701 Tel:86-10-65961114, e-mail: [email protected]

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

40

Page 41: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

which has a joint venture with EEPCO for Tekeze (300 MW) project. Tekeze began in 2002 & represents China’s largest joint venture in Africa to date

- Kalapataru Construction Overseas Pvt. Ltd. - Indian Company111, Maker Chambers IV,Nariman Point, Mumbai 400021, Maharashtra, India, Phone: 91-22 -228 22888 Fax: 91-22 -220 41548

which was signed a contract with EEPCo to install a 210 Km-230Kv transmission line stretching from Dire Dawa, 515km east of Addis Ababa, to Djibouti worth 197 million Br. When the joint committee drawn from Ethiopia and Djibouti opened the offers of the companies, Kalapa-Taru offered the lowest bid, 30.8 million dollars, while Cymi-Socoin, ETDE and KEC offered 41.3 million dollars, 36.9 million dollars and 48.1 million dollars respectively.

The Ethiopia-Djibouti Interconnection project would go operational in 2009. An estimated 36,000 customers are expected to get hydroelectric power supply in Djibouti, as well as over 8,600 beneficiaries in border towns of Ethiopia. When the project is finalized, Djibouti is expected to pay 80 million dollars annually for the hydroelectric power the country imports from Ethiopia.

- Cymi-Socoin, Spanish companyCentro Empresarial La Finca. Po. del Club Deportivo 1, Edificio 528223 Pozuelo de Alarcón (MADRID), SPAIN Telephone: (34) 91.257.80.00 Fax: (34) 91.257.80.01 Web site: www.socoin.es e-mail: [email protected],

In EGYPT office:

Damietta Port, Damietta, Telephone: (057) 29.10.42Contact: Antonio Ferrero, E-mail: [email protected]

- ETDE, French company 1, avenue Eugène Freyssinet - 78062 SAINT-QUENTIN-EN-YVELINES, Phone: +33 1 30 60 55 00 - Fax: +33 1

30 60 35 93, E-mail: [email protected]

which was signed a contract with EEPCo for the electrification of border towns - Adigala, Biykobe, Lazarat, Harewa, Mild, Ayasha Dewele and Gelile. ETDE will receive 114 million Br of which the AfDB finances 62 million Br while EEPCo covers the rest. The only bidder other than ETDE in February was KEC, which offered 16.2 million dollars.

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

41

Page 42: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

- KEC Power India Pvt. Ltd, Indian company

1st Floor, CEAT Mahal, 463,Dr. Annie Besant Road, Worli, Mumbai 400030. Phone: +91-22-66670200 Fax: +91-22-66670285/99 Email: [email protected]

- Siemens S.p.A, Italian Siemens S.p.A. 1999 – Milano, www.siemens.it which was signed a contract with EEPCo for the construction of a 230Kv extension to the existing substation in Dire Dawa and a new 230/30Kv substation in the border town Adigala. Siemens secured 82 million Br for this project, 56 million Br being covered by AfDB. Other substation bidders falling behind the Italian company are Cymi and ETDE, which offered 31 million dollars and 31.2 million dollars.

- Salini Costruttori S.P.A, Italian construction company Via della Dataria, 22 - 00187 Roma – Italia, Tel. +39 06 67761 Fax: +39 06 6776288 E-mail: [email protected] - www.salini.it

which built Gibe I dam, signed with EEPCo in April 2004 for all the civil work of Gibe II. The total cost of the project is 5.2 billion birr. The Italian government provided a soft loan of 220 million euros for the hydro-power project and the European Investment Bank conferred 50 million euros. The balance is covered by the Ethiopian government.

- Energoinvest, Bosnia company

Mr. Džemail VlahovljakGeneral Manager

Mr. Ibrahim BostoAssistant General Manager

tel: (+387 33) 610 355, 703 301fax:(+387 33) 659 618

tel: (+387 33) 703 310fax:(+387 33) 658 430

E-mail: [email protected]

E-mail: [email protected]: [email protected]

- Sunir, Iranian companyNo.1 Mozhdehi Alley, Somayeh St., Tehran-Iran Tel: (+9821) 833907-8830099 Fax: (+9821) 8822911

The two companies (Energoinvest & Sunir) have won tenders of 45 million dollar to send power to Sudan. ENERGOINVEST will construct 297km of 230KV transmission

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

42

Page 43: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

line from Bahir Dar through Gondar to Shehedi in northern Ethiopia and then to the border with Sudan.The contract with SUNIR was signed to extend the existing substations at Bahir Dar, Gondar and Shehedi to accommodate the additional transmission lines. World Bank has fully financed the project. EEPCo expects the exports to generate monthly income of about seven million dollars after being finalized by the end of June 2010

List of other Contractors in Ethiopia

1- 3M ENGINEERING & CONSTRUCTIONWoreda: 18 Kebele: 35 Po Box: 101806Addis Ababa EthiopiaTel: 011-6638917Fax: 011-5519840

2- A.M.B. CONSTRUCTIONWoreda: 17 Kebele: 21 Po Box: 22228/1000Addis Ababa EthiopiaTel: 011-4430251Fax: 011-4420109

3- A.Z PLC.Po Box: 639 code 1110 Addis Ababa

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

43

Page 44: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

EthiopiaTel: 011-5523030/011-5525151Fax: 011-5523939/011-5530909

4- AB CONSTRUCTION

Woreda: 17 Kebele: 20 Po Box: 40864Addis Ababa EthiopiaTel: 011-6186879/011-6622020Fax: 011-6627486

5- ABDISSA ASHEBIRDIRE DEWA Po Box: 113319ETHIOPIAContact: Addis Ababa EthiopiaTel: 025-7710734

6- ABDULSELAM AHEMEDWoreda: 23 Kebele: 12 Po Box: 50114Addis Ababa EthiopiaTel: 011-3203909

7- ABEBE GOBENAWoreda: 18 Kebele : 07 Addis Ababa EthiopiaTel: 011-5502330

8- AKIR CONSTRUCTION PLC (GC - 1) GENERAL CONTRACTORKebele: 56 Nifas Silk PO Box: 13456

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

44

Page 45: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Addis Ababa EthiopiaTel: 011 4420401Fax: 011 4424669

9- B & K GENERAL CONTRACTORWoreda: 17 Kebele: 20 Po Box: 27582Addis Ababa EthiopiaTel: 011-6455966

10- B.T.D GENERAL CONTRACTORWoreda: 6 Kebele: 03 Po Box: 25432Addis Ababa EthiopiaTel: 011-6188343

11- BEKALU MINDA BUILDING CONTRACTORAddis Ababa EthiopiaTel: 011-6625576/011-6626108

12- DARCHAW SHAPA BUILDING CONTRACTORAddis Ababa EthiopiaTel: 011- 6293667

13- DESTA GEBEYEHU BUILDING CONTRACTORAddis Ababa EthiopiaTel: 011- 4431211/011- 5533100

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

45

Page 46: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

14- ESAYAS ZEWGE BUILDING CONTRACTORAddis Ababa EthiopiaTel: 011- 6611350

15- TAYE MARKOS CONTRACTORAddis Ababa EthiopiaTel: 011- 6612691

References:

- Ethiopian Electric and Power Corporation (EEPCo)

- World Bank

- Ethiopia Ministry of Trade

- Ethiopia Ministry of Mining & Energy

- African Development Bank (AFDB)

- Egyptian Commercial Representation in Addis Ababa (Tamseel Tougary)

- US Embassy in Addis Ababa

- Ethiopiandiaspora

- Ehtiopia book

- Ethiopian News Agency

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

46

Page 47: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

Appendix 1: FORESEEN Business Consulting

Company Overview:

We are a group of Calibre Practitioners who achieved significant successes in Creating and Developing Businesses in International Markets

With its team of calibre professionals, FORESEEN Business Consulting has supported wide number of Egyptian companies in:

Assessing their Internal Capabilities, and Readiness for , Identifying International Markets’ Opportunities that best fit their

capabilities and resources Developing Marketing Strategies to exploit opportunities and

achieve dramatic progress in business.

Company Services:

We can best deliver the following consulting services to our customers:

International Market Research International Customers Research & Analysis

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

47

Page 48: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

International Competitors Research & Analysis Foreign Macro Environment Research & Analysis Foreign Regulatory & Administrative Environment Research & Analysis Foreign Agents/Distributors Identification, Evaluation and Selection International Contracts Development Developing Objectives & Strategies for Foreign Agents/Distributors to

Monitor their Performance Markets Development Function Development Strategic Marketing Planning Business Plan Development Local Market Research Local Customers Analysis Local Competitors Analysis Local Markets Development Marketing Function Development Enterprise Strategic Evaluation Enterprise Diagnosis (GAP Analysis) Training on Marketing Concepts & Processes Training on Sales Skills & Techniques

Reference List:

Our consulting-team members have accomplished various consulting assignments; the following are few examples of served customers:

Mash Pharma Company Trust Group SIAG Chemicals United Engineers Softlock Middle-East Engineering & Telecommunication- MEET Badr El-Din Company New Mena Plast Abbasia Factory for plastics Egyptian Company for Polymers

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

48

Page 49: Intl Market Research Report

Reach New Heights

FORESEEN Business Consulting

South Foam Lion Factory Environmental Quality Industries- EQI Al-Obour for Marble & Granite

Contacts:8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza, Egypt.Tel: +2 (010) 678 46 69Fax: +2 (02) 338 44 878E-mail: [email protected] Contact Person: Ahmed Agglan

FORESEEN Business Consulting 8 Mohamed Rushdie st. Marriottia, Al-Ahram, Giza Tel: +2 (010) 678 4669 Fax: +2 (02) 338 44 878

E-mail: [email protected]

49

Page 50: Intl Market Research Report

50