Monday, October 10, 2011

Ethiopia Says Global Concerns Over Hydro Plan Won't Hurt Funding

(Oct 10, 2011, Oslo)--Ethiopian Prime Minister Meles Zenawi said he doesn’t expect international concerns over the country’s hydroelectric program to hurt financing plans.

“Because we are funding most of our projects from our own resources, it should not affect it,” Zenawi said today in an interview in Oslo.

Ethiopia said last month it planned to offer more bonds to finance the 5,250-megawatt Grand Ethiopian Renaissance Dam after selling 7 billion birr ($408 million) of debt domestically in the past six months.

Ethiopia, source of the main tributary of the Nile River, started building the hydro plant in April as it seeks to become a regional power exporter.

Balancing increased investment spending and high inflation “continues to be a challenge,” Zenawi said today. “Most of the inflationary pressure in Ethiopia is coming from imported inflation as global prices have gone up.” Read more from Bloomberg »

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