Ethiopia is the fastest growing economy in Africa in the last five years (IMF estimate for 2015: growth of 11.2%; inflation rate of 9%). Its development plans for the next five years include the installation of 17,000 MW power capacity and comprise the GERD and Koysha projects. The latter was acquired in the first half of 2016.
The following table shows the amounts involved in the main contracts in place at the reporting date:
(Share in millions of Euros)
|Residual backlog||Percentage of completion|
The project entails the construction of the Koysha dam, a hydroelectric power plant with installed capacity of 2,200 MW. The contract is worth €2.5 billion and the Group’s share is 100%. More information on this contract is provided in the section on the key events of the period.
The Gerd project, located approximately 500 km north west of the capital Addis Abeba, consists of the construction of a hydroelectric plant, Grand Ethiopian Renaissance Dam (GERD), and the largest dam in the African continent (1,800 metres long, 170 metres high). The project also includes the construction of two power stations on the banks of the Blue Nile, equipped with 16 turbines with installed capacity of 375 MW each. The contract is worth approximately €3.7 billion and the Group’s share is 100%.
Outlook for 2016
The Group will continue to pursue new business opportunities in 2016 in line with the country’s growth.