Ethiopia, ACWA POWER sign Letter of Intent for solar power projects
Addis Ababa, October 15, 2019 (FBC) – The Ministry of Finance of Ethiopia and the International Company for Water and Power Projects (ACWA POWER) today signed a Letter of Intent for Dicheto and Gad solar power projects.
The Public Private Partnership Board of Ethiopia last month picked the Saudi Arabia headquartered ACWA POWER as the winner of the $300 million Gad and Dicheto solar PV projects.
Dicheto and Gad solar power projects will be implemented in Afar and Somali regional states, respectively, and are expected to generate a total of 250MW solar energy, each with 125MW solar energy.
“The purpose of the Letter of Intent is to establish a gap filling transitory arrangement among the parties until the Special Purpose Vehicle (SPV) or local company representing the winning company is formally formed and conclude the Power Purchase Agreement (PPA) and Implementation Agreement (IA) with the contracting authority and Ministry of Finance respectively,” said the Ministry.
The Public Private Partnership Board picked ACWA POWER as winner out of the 12 short listed companies.