Ethiopia Geothermal Sector Development Project

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The development objective of the Geothermal Sector Development Project (GSDP) is to develop geothermal resources in Ethiopia. There are four components to the project, the first component being Aluto geothermal site development. This component will finance goods, including drilling consumables and associated materials; services, including drilling contractors, the supervision engineer, reservoir engineering, and management; drilling and testing of about 22 wells; and design and construction of a steam-gathering system connecting the producing and injection wells. The second component is the Alalobad geothermal site development. This component will finance goods, including drilling consumables and associated materials; services, including drilling contractors and the supervision engineer; and drilling and testing of about four wells. Financing from International Development Association, or IDA will be used for production drilling and testing activities, in order to establish the economic viability of the geothermal resources and finalize a feasibility study of the Alalobad geothermal site. The third component is the drilling rigs, associated accessories, and spare parts. This component will finance goods, in particular two full-size modern diesel electric drilling rigs with all associated equipment, accessories for directional drilling and both overpressure and under-pressure drilling, and a complete inventory of spare parts. Finally, the fourth component is the legal, institutional, and regulatory framework development.