On Jan. 13, Ethiopia’s Prime Minister Meles Zenawi inaugurated the Gilgel Gibe 2 scheme, the country’s biggest hydropower project. “It is possible to speed up development without polluting the environment,” Zenawi proudly declared as he cut the ceremonial ribbon. Yet this was wishful thinking.
Due to shoddy preparation, the project had already been delayed by more than two years. And less than two weeks after the inauguration, the project’s core component, a 26 kilometer-long tunnel, collapsed partly .
Power generation had to be stopped for several months. Ethiopia’s hydro sector demonstrates that there are not shortcuts to sound infrastructure development. Cutting corners does not “speed up development,” but produces costly mistakes.
Gilgel Gibe 2 has a price tag of 374 million Euros and a capacity of 420 megawatts. The project works without a reservoir, but channels the water discharged from the Gilgel Gibe 1 Dam through a long tunnel and a steep drop directly to the valley of the Omo River. The undertaking was plagued by shoddy management from the beginning. In violation of Ethiopian law, the government negotiated the project contract with the Italian construction company Salini without competitive bidding. No-bid contracts for public works projects are a big red flag of corruption. The Gilgel Gibe deal was awarded without a feasibility study, and construction started without the legally required environmental permit.
