MetEC, EEPCo Transformer Saga Burst Out Of The Shell

The two state owned enterprises, the Metals and Engineering Corporation (MetEC) and the Ethiopian Electric Power Corporation (EEPCo), are locked in a serious dispute over locally manufactured power transformers that the former supplied to the later, The Reporter reported.

The confrontation which remained under the covers for quite some time had been revealed after MetEC lodged complaint against EEPCo accusing the latter of failing to live up its contractual agreement valued at some 200 million birr. EEPCo on its part denied the accusation saying it had no the knowledge about the agreement.

MetEC, under the leadership of Brigadier General Kinfe Dagnew, has been established with a huge financial muscle and responsibility to lead the industrial development of the country. While EEPCo is mandated to implement and build the country's energy infrastructure.

“We have been producing transformers and related electrical equipments to deliver to EEPCo. Currently, we have stored most of the transformers that we have been producing because EEPCo was not willing to collect the products. So, we were forced to keep the products in stores while the country is facing critical shortage of transformers,” Michael Desta, Communication and International Relations Head at MetEC, told Fana Broadcasting Corporate (FBC) on Wednesday.

“We do not know the reason as to why they declined to collect the products. Thus far, we have not been informed of their reason,” he added. He, however, indicated that discussions are underway with EEPCo and other government officials to make them take the product so that they can utilize it.

Mesikir Negash, EEPCo's Corporate Communication Director, told FBC that the products that MetEC claims to have produced and stored are not ordered by EEPCo. FBC quoted Miskr as saying, “Regarding the compact transformers, we have no agreement whatsoever. However, since MetEC is our partner tackling the existing shortage of electrical equipment, currently we are negotiating to resolve the situation.”

Few years ago, EEPCo had reportedly made an agreement with the state-owned MetEC, to produce, supply and maintain its transformers. Due to that fact, the corporation has reportedly reduced its importation of vital electrical components.

Source: The Reporter