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Chinese firms introducing new forms of energy into Ethiopia
Source: China Daily
Building on support from foreign aid projects, the companies are remaking the economic and infrastructure landscape in the African nation
After a journey of 80 kilometers on the smooth Addis Ababa-Adama Toll Motorway, 34 white wind turbine towers came into view.
Arrayed along the Great Rift Valley, they were spinning in the wind. It was early December, the dry season in Ethiopia, and the undulating grasslands had turned yellow. In the far distance lay Addis Ababa.
The capital is just one part of Ethiopia where Chinese construction companies are changing the economic and infrastructure landscape of the African country.
The turbines, installed by HydroChina International Engineering Co Ltd, have supplied 200 million kilowatt-hours of electricity to households in Ethiopia in the past 20 months.
Not far away, the second phase of the Adama Wind Farm Project, which will have 102 wind turbine towers, has been launched.
"We expect to triple the installed capacity to 153 megawatts when (the second phase) opens in March," said Wang Yantao, deputy general manager of HydroChina International, a subsidiary of State-owned HydroChina Corp.
HydroChina is representative of the Chinese infrastructure enterprises that are building roads, bridges and housing in Ethiopia, catering to the country's construction boom.
They didn't stride into the promising but remote market alone; instead, they tapped into Ethiopia through Chinese government foreign aid projects.
"We launched the China-Aid Wind Power & Solar Energy Master Plan in 2011. The project took 17 months, and we designated 12 workers to operate the project," said Wang, who moved to Ethiopia at the beginning of the aid project.
As China's first technology-based foreign aid project in Ethiopia that involves renewable energy, Wang said the wind farm has become a catalyst for extracting the country's potential wind and solar power.
Wang's company has also gained much knowledge in the operation of the project.
The Adama One Wind Farm is the first wind power plant in East Africa. It has already been connected to the country's main power grid.
The project cost $117 million, with 85 percent covered by loans from the Export-Import Bank of China. The Ethiopian government provided the balance.
"All parts and machinery were imported from China. For the ongoing operations, we're employing 20 local workers and four Chinese staff," said Wang.
He said his biggest challenge is developing a group of local employees, since many workers in Ethiopia are "complete strangers" to technology.
The second phase of the project has attracted investment of $245 million.
"It will take at least 20 years for us to recoup the investment," Wang said.
Ethiopia urgently needs infrastructure. It's banking on huge government-supported energy and transportation projects to help transform its agrarian economy.
Infrastructure projects required financing equivalent to 19 percent of Ethiopia's GDP in fiscal 2011-12 (the fiscal year starts on July 8). according to World Bank estimates.
"China's economic development model is a benchmark for Ethiopia. We hope to get more support from China, both in finance and technology," said Ahmed Shide, Ethiopian minister of finance and economic development.
Shide said that Chinese infrastructure projects have made "visible and significant" contributions to Ethiopia's road and rail facilities.
"At the same time, Ethiopia is providing market access to Chinese companies," said Shide.
As of Dec 31, 2012, the cumulative value of contracts signed by Chinese companies in Ethiopia totaled $18.82 billion, with $9.71 billion of work delivered.
Major sectors covered by these contracts include roads, power, telecommunications and water conservation, according to figures from the Ministry of Commerce.
China has completed 24 foreign aid projects in the country, such as the rehabilitation of the Aba Samuel Hydro Electric Power Plant and the construction of the Addis Ababa Municipal Road.
"Foreign aid is becoming a significant path for China's giant players to contribute to the development of Ethiopia.
"It's also pushing Chinese infrastructure builders into the 'going global' process," said Xie Xiaoyan, China's ambassador to Ethiopia.
Xie said that he attends at least one contract signing or groundbreaking ceremony each week.
Back in 1971, China financed and built the 2,000-km Tanzania-Zambia railway, the largest single foreign aid project undertaken by China at the time.
Decades later, the $124 million African Union headquarters in Addis Ababa, which was completed at the end of 2011 and handed over in 2012, was another major infrastructure project in China's foreign aid history.
As a latecomer to the marketplace, contractor China State Construction Energy Ltd is focusing on teaching local workers how to manage and maintain sophisticated projects.
"It is a good way to enter a new market, through the Chinese government's aid program. I think the Chinese government will emphasize different industries in different periods," said Liu Chunpeng, director for the technical cooperation group at the AU headquarters.
"Although we have missed the prime period for road construction, we are looking forward to the budding housing market," said Liu.
China Road and Bridge Corp, which entered Ethiopia relatively early in 1998, has built on its advantages with its core business of roads.
"Foreign aid projects contributed to prime the pump for our market growth," said Wei Qiangyu, deputy general manager of the company's Ethiopian office.
In the past 15 years, China Road and Bridge has built more than 2,000 km of roads.
Ethiopia-China Friendship Avenue, located in the center of the capital, was a project for the company in 2004. And China Road and Bridge is now working on the Bole Ring Road RBT Meskel Square Road Project, the first Ethiopian highway (the Addis Ababa-Adama Toll Motorway) and Addis Ababa Bole International Airport.
China Road and Bridge has big plans, such as developing commercial property or cooperating with local governments to establish integrated planning companies.
Wei said that whether a company can get a foothold in the market depends on whether its aid project can make a profit.
"I think the government should look at the capabilities of a company when it comes to bidding, not just considering the price," said Wei.
Did read Aid? Naaa. Aid is way beyond us now. Quarter of a century since we took power and still aid. These Chinese must be working with diaspora oppositions to give us bad name. 25 years of 11% (not the 11 on our eyebrows ) average growth but people who do not to see our success say we still receive Aid. Ethiopia is a place where people eat 3 times per hour not a day as once our visionary leader (may god rest his Melata in ..) envisioned.
CHINA way to go developing Ethiopia. It took less decade to do the work that the West fail to do in hundreds of years building Africa. This is the kind of transformation and economic development Africa has been missing for decades. It is time to go East and build good Chines economic model. Ethiopia is growing faster than expected and many countries are surprised of the mixed economic value being delivered. Good governance and relatively peace Ethiopia will become much more Africa’s economic powerhouse. I believe economic development takes preceding over individual democracy because simply people need to eat rather chose how they want to be governed i.e. the Arab World as privet example, how quick they have accomplished relative peace because the boom in oil revenue. China is the way to go with business.
New era the asshole shabian,…
Take it easy mazzafak shabian. Sarcasm is a silent killer. You might have thought it is easing your suffering, but deep inside it is eating you alive. Chingaff wusha!
“He said his biggest challenge is developing a group of local employees, since many workers in Ethiopia are “complete strangers” to technology.”
See there. The country graduates every year hundreds of engineers of all variety. yet very few of them have the qualification worth their diplomas. The education quality is second to none.
Why do we invest in wind farm when we are building the largest dam in Africa that could power sub Saharan Africa. Wouldn’t it be money well spent if the gov’t gave up this type of investment and use the money to finish the dam. Why not China help us speed up the dam project by offering their technical expertise and lending us money.
What do you say? You’re an expert’s expert when it comes to the government’s developmental policies. Or should I ask New era , your new tormentor?
You’re right it’s a conspiracy by the diaspora
keep it up and you receive a dose of obscenities from AZ ever time you mention the name of his idol disrespectfully.
China has been God sent for Ethiopia.
The now famouse words of Meles” creating Win Win situation is the key. It is a very simple idea the west never mentioned in africa. Because they are all about greed.
Now they are jelous. Now they want to tell us China is bad for africa. They tell us they will stripe us of our resources.
Well…..africans believe their eyes. not what they say.
China is creating jobs…vital infastructer and helping kill poverty in a way the west never managed. giving aid is not the answer. allowing trade…education and creating jobs is the way out of poverty.
Next…i want tge ethiopian government and africa as a whole improve health care and build hospitals. Then you will see much of the educated ….experienced diaspira go back and help the continent rise to stratisphere.
China …Ethiopia…1 thing in common…they were civilized long before the west.
USA is hypocracy. they want to sell democracy to the world when they have a guantanamo. They want to tell china its not democratic when they can go to Iraq without the permission of theUN.
China is the way to go. At least they know the value if having heritage like us and decency
Chinas are known by their cheap non- long lasting products. Ethiopia does not afford to buy the long lasting western counties reliable products. Ethiopian government should be aware that Chinas products are not reliable and not long lasting, therefore at least long years of manufacturer and installer warranty are critical. Otherwise after few years of service parts may start to fail and the cost of maintaining equipment become costly and sometimes impossible.
Adiszemen ur arogezemen
Adiszemen ur arogezemen what kind fucking mind u got ??
you have said it better than the politicians.
you are of a great mind. class post
The great, you misunderstood me. There is no sarcasm in my comment. Yes I was a denier before I start reading your comments here. But after reading your comments, who does not ask himself twice the question do I belong here with the likes of the great minds like AZ. Why do you think my comment is sarcasm? Is it the part may god rest Meles’s melata…? I didn’t say that because I think he did not have a soul, I said that because his great mind was under that Melata. Please keep your constructive insults coming, the great.
Insignificant fleas the likes of nenewe the coward wounded dog and newera the asshole shabian,
let me give you a nice home work while licking your wounds to ease your pain you must Read the following, or have somebody to read it for you. Very important to keep you up to date with the real world. It is not about your artera sing-a-poor, or the expired sheep meat which infected your brain.
A Chinese Company Brings Hope To Former GM Workers In Ohio
by LEWIS WALLACEJanuary 28, 2014
For years, industrial cities across the U.S. have watched factories pack up and leave, taking their operations to Mexico or China. But here’s something relatively new: increasing numbers of Chinese companies are bringing manufacturingto the United States.Just south of Dayton, Ohio, a Chinese auto-glass maker now plans to open up shop in what used to be a large General Motors truck plant.The announcement is a big deal for this former factory town.Death knell, nail in the coffin, final blow. These phrases are often used to describe GM’s decision to close the Moraine Assembly plant in 2008.iLewis Wallace for NPRFormer GM employee Kate Geiger describes what followed: “Buildings closed down. Parking lots growing up with weeds. For sale signs. You know there’s a McDonald’s that been closed for 20 years and they’ve never done anything with it."Geiger works as a graphic designer now—and here in her office you can actually see the corner of the mostly empty GM plant through the window.But, at a recent news conference, Ohio Gov. John Kasich introduced Fuyao Auto Glass, China’s biggest windshield maker, which announced it will purchase about 1.4 million square feet of the former GM facility."We’re now beginning to see some really good news for the Dayton area,” Kasich said.David Burrows with the Dayton Development Coalition says the deal brings with it at least 800 jobs. That makes it the biggest Chinese investment ever in Ohio, though it took millions in subsidies to attract it. State officials hope this becomes a trend.Giorgio Rizzoni, with the Center for Automotive Research in Columbus, says, “What has happened in the last five or six years, is actually marking a profound change.
CHINA HAS BEEN BuILDING CARS, ROADS AND BRIDGES with out doing any environmental assessment and the impact of construction work on the local environment.
most of china’s big cities are heavily polluted , rivers in china are polluted, the air is polluted to such an extent that people cover their faces and mouth when going out of their homes.
the air is so filthy and heavy with smoke and other pollutants that people fal sick in millions.
Third world technology advanced by china has a long term detrimental consequence on peoples health and the natural landscape.
It might sound a good idea to build something , but if the damage is greater than the benefit it is no good.
in 20 years time the land and the rivers will be so polluted that it will become very hard for people to live in the country.
The western advanced technology takes a balanced view of development, caring for the environment and peoples health is as important as building something.
that is why western construction companies are reluctant to enter africa.
You seem to be upset when people give
their personal opinion, why? Or is it only you
Who have this right without being backlashed at? Doma ras tsila!
Nenewe the coward wounded old dog, stop hiding behind somenody’s ass to show your incompetence.
Newera the asshole coward shabian, stop using multiple nicks, mimi, hadush etc. You will be thrown away as usual. It is not your place to begin with.
Anyway here is the full version of the above story about the world’s deliverer China. Enjoy!
A Chinese Company Brings Hope To Former GM Workers In Ohio
by LEWIS WALLACEJanuary 28, 2014 3:58
For years, industrial cities across the U.S. have watched factories pack up and leave, taking their operations to Mexico or China. But here’s something relatively new: increasing numbers of Chinese companies are bringing manufacturingto the United States.Just south of Dayton, Ohio, a Chinese auto-glass maker now plans to open up shop in what used to be a large General Motors truck plant.The announcement is a big deal for this former factory town.
“Death knell,” “nail in the coffin,” “final blow.” These phrases are often used to describe GM’s decision to close the Moraine Assembly plant in 2008.
Former GM employee Kate Geiger describes what followed: “Buildings closed down. Parking lots growing up with weeds. For sale signs. You know there’s a McDonald’s that been closed for 20 years and they’ve never done anything with it."Geiger works as a graphic designer now—and here in her office you can actually see the corner of the mostly empty GM plant through the window.But, at a recent news conference, Ohio Gov. John Kasich introduced Fuyao Auto Glass, China’s biggest windshield maker, which announced it will purchase about 1.4 million square feet of the former GM facility."We’re now beginning to see some really good news for the Dayton area,” Kasich said.David Burrows with the Dayton Development Coalition says the deal brings with it at least 800 jobs. That makes it the biggest Chinese investment ever in Ohio, though it took millions in subsidies to attract it. State officials hope this becomes a trend.Giorgio Rizzoni, with the Center for Automotive Research in Columbus, says, “What has happened in the last five or six years, is actually marking a profound change."Every 2 or 3 months or so there is an announcement of company X is reopening manufacturing plant A in Michigan or in Ohio,” Rizzoni says.
It’s simple math, really: production costs are going up in China, and down here. That’s in part because U.S. workers are more productive—and because auto industry wages have dropped since the recession.But Ohio’s still playing catch-up: In the last decade the Dayton area alone lost 40,000 manufacturing jobs.So there are workers to spare here — and a lot of nostalgia for building cars.Kate Geiger, the former GM worker says she’s considering applying for a job at the new glass plant “because I love … I love being a forklift operator and I miss that work.Geiger knows she’d take a pay cut. But she says making cars is in her genes, and when she heard about the glass factory, “I think inside I secretly did a little happy dance. You know …, I hate seeing the building deteriorate. So I’m really glad that somebody’s going to move in and take care of it. I thought they were gonna bulldoze it."She can just see the shiny new windshields rolling out of Fuyao shipped off to assembly lines for Honda, Kia and — who else — GM.
Another great mind blowing comment. I am speech less here. I bet you didn’t go to school. Who can teach such wisdom, you must born with it? Wait, you must went to MIT (not Massachusetts but Mekele . You also got me I am Shabia, spot on. Although the Dergs used to label anyone who does not agree with them Shabia, the thing those Derg losers did not understand was Meles didn’t come to power and he waited another 7 years after coming to power to tell them now Sahbia is the enemy. What Morons, right AZ?
About the greatness of our visionary leader, please see the link below to find out how great he was. After listening that speech Martin Luther king should be ashamed of himself. Mandela should wonder why people consider him great.
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