Memorandum of Understanding Between The Government of Ethiopia and The Government of the United States of America Regarding Power Africa

The MOU replaces the 2013 Memorandum of Understanding between the Federal Democratic Republic of Ethiopia and the Government of the United States of America for Technical Advisory Services on Energy Development in Ethiopia. The Power Africa initiative was launched by U.S. President Barack Obama on June 30, 2013, during his visit to Africa. The initiative aims to increase significantly the amount of electricity available in sub-Saharan Africa by partnering with multiple U.S. government agencies, including the Department of Commerce, the Department of Energy, the Department of State, the Department of the Treasury, the Export-Import Bank, the Overseas Private Investment Corporation, the U.S. Agency for International Development, and the U.S. Trade and Development Agency. The Government of Ethiopia and the Government of the United States of America share a long history of partnership in fostering economic development, as formalized under the Agreement between the Government of the United States of America and the Transitional Government of Ethiopia for Economic and Technical Cooperation, signed in Addis Ababa on November 15, 1994. The Power Africa initiative aims to double the number of people in sub-Saharan Africa with access to electricity through a multi-stakeholder partnership with the Governments of Ghana, Kenya, Tanzania, Nigeria, and Nigeria, the U.S. and African private sectors, the World Bank, and the African Development Bank. The initiative seeks to accelerate investment in sub-Saharan Africa's power sector through its programs over the next five years, adding no less than 10,000 MW of power and increasing the number of people with access to electricity by 20 million in the Power Africa Focus Countries. The Government of Ethiopia has set a goal to increase its supply of electricity to 10,000 MW by 2015, as per the Growth and Transformation Plan (GTP). The Government of Ethiopia has expressed its support for Power Africa, which aligns with the GTP's objectives to improve operational efficiency of utilities, increase the scale and quality of electricity supply, promote alternative energy, and increase access to electricity for all Ethiopians. The Government of Ethiopia has committed to take several actions with respect to the Energy Sector, including: 1. Executing catalytic power sector reforms to spur rapid, broad, sustainable, and sustainable economic growth. 2. Transforming the institutional capacity of the power industry by changing the organizational structure of the Ethiopian Electric Power Corporation (EEPCO) into two entities and improving the technical capacity of the staff. 3. Ensuring a dependable supply of electricity and transmitting power efficiently and economically to consumers through reliable distribution and transmission networks. 4. Expanding the production of alternative energy through clean, mini-grid, and off-grid solutions that will increase access to power in rural towns and villages. 5. Developing a favorable business environment for private investment in the power sector and enhancing participation in energy trade exchanges through the Res Africa Power Pool. The U.S. Government has committed to support the Power Africa initiative through its development programs, including: 1. Participating actively in the Power Africa initiative through the Department of Commerce. 2. Working to promote commercial opportunities for U.S. companies through the U.S. and Foreign Commercial Service. 3. Continuing to work with African and international legal experts to develop standardized, annotated Power Purchasing and other legal agreements that offer to reduce the amount of time it takes to negotiate and close energy transactions. 4. Mobilizing up to $5 billion in support of U.S. exports for the development of power projects across sub-Saharan Africa. 5. Providing up to $1.5 billion in financing and insurance to support energy projects in sub-Saharan Africa through the Overseas Private Investment Corporation. 6. Providing an estimated $285 million over five years to support Power Africa activities in the Power Africa Focus Countries through the U.S. Agency for International Development. 7. Supporting geothermal activities through the African Union's Geothermal Risk Mitigation Facility and providing financial and technical support for both on-grid and off-grid electricity projects through the hiring of Transaction Advisors based in Africa. 8. Providing up to $4 million for project preparation, feasibility, and development costs to develop renewable energy projects through the Overseas Private Investment Corporation and the U.S.-Africa Clean Energy Finance Initiative. 9. Supporting Power Africa activities in all the Power Africa Focus Countries by providing analysis of major energy infrastructure investments, pilot projects to demonstrate the effectiveness of U.S. solutions, trade missions to the United States, and technical assistance to support legal and regulatory reforms for development. 10. Providing technical assistance to help resolve technical impediments to the deployment of power projects and to expedite projects through the Department of Energy.