April 10, 2012
An international sanction imposed by the United Nations Security Council on Iran has caused an expensive delay in Ethiopia’s bid to export electricity to Sudan.
Financed by the World Bank’s USD 41 million loan, the state utility monopoly, the Ethiopian Electric Power Corporation had planned to start the sale of electric power to Sudan beginning in May 2012 with a 100 MW. This is very unlikely to happen for the USD 9.6 million project to install substations in Bahir Dar and Gonder, in Amhara Regional State as well as in Shehedi
EEPCo awarded the project for construction of substations and supplying of equipment to the Iran Power & Water Export of Equipment & Services Company through a competitive international bidding in December 2008. The company had agreed to complete the work within 18 months.
A senior official said that EEPCo has already oversaw the completion of 296 KM power transmission line carrying 230 kV it would have linked Sudan to the national power grid had the substations were installed. EEPCo has also paid close to 60pc of the contract amount to the Iranian firm.
However, a UNSC Resolution freezes asset and obliges member countries to monitor the activities of Iranian banks. Iran has been experiencing a serious of sanctions due to its dispute with the United States, European Union and Israel over the building of nuclear facilities its leaders insist is only for generating electric power.
They were not able to convince members of the Security Council on their declared intention hence subjected to Resolution 1929, passed on June 9th 2010. The resolution calls up on member states to implement their obligations of an earlier resolution, 1803, passed in March 2008 and prevents the provision of financial services including insurance or re insurance or the transfer to through or from their territory.
These resolutions have made it difficult for the EEPCo finalize payments to the company and take the equipment ordered as Iranian banks are not allowed to transfer money. Due to the sanction, we could not effect payments for the outstanding balance.
Source - Addisfortune.com
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