AYSHA II WPP

August 2023
1. Project Overview

As part of implementing the macro strategy plan of the country, EEP had visualized Aysha
II 120 MW Wind Power Project in early of 2016 through an EPC/Turnkey contract. The
contract agreement was signed between Ethiopian Electric Power (EEP) and Dongfang
33Kv Electric International Corporation (DEC) for the construction of Aysha II 120Mw
wind power project dated on January 15, 2016 with reference No. Co/33.20/68/08. The
project cost is USD 257,285,160.00 of which 85% of the project cost amounting USD
218,692,386 is financed by the EXIM Bank China under concessional loan while the
remaining 15% amounting USD 38,592,774 is financed by the Ethiopian Government in
local currency. The project scope mainly includes: a total capacity of 120MW WTGs,
33KV transmission lines, 230kv substation, 230Kv transmission line and permanent
dwelling houses for EEP’s O&M staffs. In accordance to the original contract, the
commencement and project completion dates were agreed to be on 25th February 2017 and
18 months from commencement (19th August, 2018) respectively. So far, three
amendments were agreed between the Employer & the Contractor for different reasons
without affecting the original contract price.

The existing work plan of the project was based on the schedule & scope targets of the third
amendment (Amendment No.3, reference No. EEP/33.20/135/13) which was signed on
September 10, 2021. In the last Amendment (III) the Owner (EEP) and the contractor mutually
agreed to complete the EPC contract on the 12th of October, 2022 if and only if three conditions
would be fulfilled: the disbursement of the suspended certified payments by EXIM bank of
China in the first quarter of the budgeting year, 2014 (for manufacturing, transporting, erecting
& and T&C of the 5th & 6th clusters of WTG) and the settlement of some payments by EEP
from its own finance & handling of LILO connection (for early generation from the first ‘Four
clusters’ by performing the required activities). However, the success to meet the desired targets
of Amendment III is most unlikely.

As of this reporting time, all 48-wind turbine generator (WTG) unit’s foundation were casted
and the WTG system fencing work, and Earthing pit foundations works are going to Finished.
Almost all substation switch yard equipment foundation was completed.
The Electro Mechanical works erection of 32 WTG and 32 Box transformer units were
completed and the test commissioning of 1st, 2nd and 3 rd are done and CLUSTER WTGs and
the 4th batch is under progress. The erection of both 33kV and 230 kV transmission towers is
completed and conductor stringing & tower accessories installation are under progress for 33kV
and completed for 230kV. In side substation the EM work is almost under completion and this
time remark rectification and some remaining works have been done.

The test and commissioning work for 1st, 2nd and 3rd WTG Groups are completed. Parallelly,
substation test and commissioning works are completed. Up to now 82.224% percent of the
project has completed.

2. Project Components
The overall objective of the project is installation of 120MW wind farm project at Aysha II site
using a 2.5 MW Wind Turbine Generator unit capacity.
The main parameters and dimensions of the project components will be stated as follows.

No Project component capacity

1 48 units of Wind Turbine Generator and accessories, 48 x 2.5 = with a total capacity of 120MW
33kV collector lines (#118), 48 Cabinet transformers
(divided in Six phases Each phase contains Eight
WTGs)

2 48 Unit transformers 2750 KVA capacity each

3 33kV switch gear and auxiliary system 29.71 Km

4 230kV substation including 230kV switch yard,

2x75MVA Transformers, double bus bar, and
protection, control and communication system

5 230KV transmission line for LILO connection (#4) 1.1Km

to the existing 230kv Ethio- Djibouti line

6 Permanent Employee Camp 30 houses

7 Access road construction

8 O&M service support and Spare part supply

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9 Conduct Training for EEP employees 20 O&M trainees both at site & factory

Figure 1permanent camp

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Figure 2 Wind farm area

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Figure 3 230 kV transmission line

3. Current Status

The construction progress of Aysha II WPP is 82.224 to date. Some of the major achievements
include:

 Erection of 32 Wind turbine Generators

 Erection of 32 box transformers
 Performing testing and commissioning of 24 Wind turbine generators except 240 Hour
trial test
 Connecting the first phase (FOUR WTGs) and the second phase (8 WTGs) with the grid.
 Erection of 118 towers of 33kV transmission lines and cable stringing of four Lines (Line
1-Line 4) have been completed.

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  Casting of Foundations of 48 Wind turbine Generators and 48 box transformers
 Erection of Four Towers oof 230 kV transmission line and wire stringing
 Permanent camp construction is under progress
 Manufacturing and transporting of Fifth and Sixth lines (totally 16 WTG with their
accessories) Not started yet
The following table summarizes the current progress of Aysha II WPP

Work front Overall progress Remarks

Consultant hiring and
signing contract 100%
agreements
Site preparation 100%
Manufacturing of 16 WTGs, 16 Box
Manufacturing of EM
8.25% transformers,Towers,blades and retative accessories is
components
not started due to financial problem
Transporting of 16 WTGs and necessary accessories
Transportation of EM
83.58% not done because are not manufactured due to financial
components
problem
Only permanent camp construction is active at the
Civil work construction 91.128% moment and. Maintenance Road and other civil work
are not started yet.
Overall erection process
80.75%
of the EM components
Testing and
68.8% Testing and commissioning of WTG is under progress
commissioning work
Finalizing and hand 13.97%
overprocess

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Figure 4 Aysha II WPP

4. Remaining Work
The remaining work for Aysha II WPP includes:
 Manufacturing Of 16 WTG Towers (including their Blades, Nacelle, Hub, convertors,
power distribution and control panels and necessary accessories, (stopped due to financial
problem and not started yet)

 Manufacturing of 16 Box Transformers with accessories. (stopped due to financial

problem and not started yet)
 Erection Of Fifth an

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  d sixth lines (Totally 16 Towers and box transformers). (Stopped due to financial
problem and not started yet)
 Wire stringing of Fifth and sixth lines (stopped due to financial problem and not started
yet)
 Maintenance road construction (stopped due to financial problem and not started yet)
 Employer’s permanent camp construction which is under progress now
 Testing and commissioning work
 Permanent camp road work

5. Execution Plan

The project's original completion date was October 2022 and already has passed, and only
82.224% of the project has been completed to date. The delays are primarily due to financial
constraints.

There is no valid signed contract amendment and it is difficult to predict the project completion
time. for the time being we are trying to complete Four batches only (Line 1 to line Four). The
active work at the moment is permanent comp construction and remedy rectification at WTGs.

Hence, completion of the remaining Aysha II WPP depends on the active signed contract
amendment and financial status.

Major Milestone according to the tentative program.

Milestone / Task Date Remarks

First Line 8 WTGs Connecting to the Grid Aug-23
Second Line 8 WTGs Connecting to the Grid Aug-23
Third Line 8 WTGs Connecting to the Grid Nov-23
Fourth Line 8 WTGs Connecting to the Grid Mar-24
Fifth 8 WTGs Manufacturing and transporting to site Not started
Sixth 8 WTGs Manufacturing and transporting to Not started
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 site
Fifth 8 WTGs Erection and Testing &
commissioning Not started
Fifth 8 WTGs Erection and Testing &
commissioning Not started
June
Construction of Employers permanent camp 30/2024 Not started
Maintenance road construction Not started

The following is a detailed execution plan:

Year 2016 E.C:

The project is on track to be 85.34% complete by the end of the current fiscal year, with a goal of
increasing the progress by 3.44% in 2016E.C

Year 2017 E.C:

The project is on track to be 100% complete by the end of the 2017 EFY, with a goal of
increasing the progress by 14.64% in 2017E.C if The remaining Two line WTGs (Sixten WTGs
and necessary accessories) get manufactured and transported to site.

6. Budget

The remaining work on the Aysha II WPP is estimated to cost 51, 457, 032 USD. Excluding the
undisbursed approved payments based on the project progress.

7. Challenges

The following are some of the challenges that may be encountered during the execution of the
remaining work on the Aysha II wind power Project:

 Financial constraints: The initial consideration to cover the cost of the project through a
commercial loan is not possible due to IMF restrictions. This means that the Ethiopian
government will be the sole source of finance for the project, which could make it
difficult to finance the remaining work.
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  Global crises: Global crises, such as wars and epidemics, are unpredictable and could
have a significant impact on the project.

 Cement supply: The supply of cement is becoming a major challenge, and this could
delay the project if it is not resolved. The project requires a significant amount of cement,
and the current supply is not sufficient. This could lead to delays in construction, as the
project team waits for cement to be delivered. We are facing this problem even in the
previous budget year.

8. Mitigation Strategies

The following mitigation strategies will be used to address the challenges of the AYSHA II
WPP:

 Financial constraints: The Ethiopian government could seek additional funding from
international financer or the Ethiopian government should cover the remaining expenses
of the project.

 Global crises: The project team could develop contingency plans to deal with unforeseen
events, such as wars or epidemics.

 Cement supply: The project team could try to secure long-term contracts with cement
suppliers or could look for alternative supplier cement factory that could be used in the
project.

Conclusion

The Aysha II wind power Project is a major undertaking that will provide significant economic
and social benefits to Ethiopia. The execution plan for the remaining work is ambitious, but it is
achievable with careful planning and execution if the financial problem is secured. The
challenges of the project will be addressed through a combination of mitigation strategies and
close management followship.