” title=”Letter to JP MorganChase”>JP MorganChase, which in 2008, reportedly considered, but did not approve, a similar size loan.
In July 2009, Ethiopia awarded a sub-contract to Chinese company TBEA, for the transmission line between the dam and the Wolaita substation. Roughly $29 million (85%) of the $34 million contract was expected to be financed by China Exim Bank, although there is no confirmation that funding has since been approved.
The Government of Italy is still undecided on a project loan of 250 million Euros (roughly $318m). In June, Italian NGOs demonstrated against Italian involvement in the destructive project. Maybe the government should follow the lead of its export credit agency, SACE, which in 2008, refused a request by the no-bid contractor, Salini, to support the project.
Ethiopia can develop its power sector and meet its development goals without Gibe 3.
ICBC, Italy and World Bank should focus their investments away from Gibe 3 to power development projects in Ethiopia that won’t cause widespread harm. But, even if these loans are approved, there’s still a gap of at least $600 million, not to mention cost overruns. What other banks is the Ethiopian government going to chase?