The Development Objective of Geothermal Sector Development Project (GSDP) is to develop geothermal resource for electricity generation in Ethiopia.

This component will finance drilling consumables, associated materials, drilling contractors, supervision engineer, etc. to drill and test 22 wells and set up a steam gathering system connecting the producing wells.

The Aluto geothermal site is located in Oromia Regional State. The project site is about 200 km South-East of Addis Ababa, and is conveniently located in between the Lake Ziway and Lake Langano. A pilot power plant, established in 1998, has been generating approximately 3 MW of electricity at this project site. Financing from IDA and SREP will be used for production drilling and testing activities in order to establish the economic viability of the geothermal resources at the Aluto geothermal site and help finalize the feasibility and design of the planned 70 MW. 

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

IBRD Project Portal

In the News:
Ethiopia looks to realise its geothermal energy potential (The Guardian, February 13, 2013)

Project Details
Cover Note | Project Document | MDB Project Implementation Services (MPIS) | Proposed Decision
Approved on April 16, 2014 (Approved Decision)
Approved amount(s):
USD 24.5 million (grant funding)
USD 275,000 (MPIS Second tranche)

Comments and Responses:
United States (April 11, 2014)
United Kingdom (April 11, 2014) 
Switzerland (April 14, 2014) 
United Kingdom (April 15, 2014)
Switzerland (April 16, 2014)

IBRD Response to United Kingdom and United States (April 13, 2014)
IBRD Response to United Kingdom and Switzerland (April 14, 2014)