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Ethiopia – Recruitment woes delay takeover of power company

03 December 2013

An inability to recruit local manpower is hampering a bid by a consortium, led by PowerGrid Corporation of India Ltd, to take over the management of the Ethiopian Electric Power Corporation, reports the Hindu Business Line.

Under the contract, the Indian consortium will field six management heads, in the areas of power generation, transmission, operations, procurement, finance, and distribution. As part of the agreement, the Ethiopians will have to recruit the residual staff based on parameters identified by the consortium.

The inability on the part of the Ethiopians to source sufficient manpower has resulted in the postponement of the takeover until early next year.  

PowerGrid and its partners hold a two-year contract from the Ethiopian government to operate and maintain the Power Corporation and help the company create a modern operations system.

An integrated power company, the state-owned power company currently operates at low efficiency rates. Over and above the technology gaps, according to Business Line, there is little record of electricity sales. The accounting practices are archaic and the company doesn’t even enjoy a cheque facility with its bankers.

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