Woyanne’s Meles Says World Bank to Blame for Power Blackouts – By Jason McLure (Bloomberg)

June 22nd, 2009 Print Print Email Email

Ethiopian Prime Minister Meles Zenawi said the World Bank and international donors share the blame for nationwide power cuts that led the government to trim its economic growth forecast. (more…)

Ethiopian Prime Minister Meles Zenawi said the World Bank and international donors share the blame for nationwide power cuts that led the government to trim its economic growth forecast.

The Horn of Africa country’s economy may grow 10.1 percent in the fiscal year ending in July, compared with an earlier prediction of 11.2 percent, Meles said in an interview on June 19 in the capital, Addis Ababa. The World Bank underestimated electricity demand in previous years and failed to provide funding for new power-generation projects the government had wanted, leading to under-investment in the industry, he said.

“We could have avoided that mistake if we had the money or had we had the support of our donors,” Meles said.

A shortage of electricity in Africa’s second most-populous country led the state-run Ethiopian Electricity Power Corp. to institute nationwide blackouts every second day this month. The outages, which began in March, are partly due to “unpredictable” factors such as rainfall shortages that left dams without enough water, and delays in building new hydropower plants, Meles said.

Power cuts might also have been alleviated if the Washington-based multilateral lender had provided funding for a 60-megawatt diesel generator the government requested this year, Meles said.

World Bank Country Director Kenicha Ohashi didn’t immediately respond to a voice mail left by Bloomberg News on his phone seeking comment.

Growth Slows

This is the second consecutive year Ethiopia has experienced nationwide blackouts in the months before July, when reservoirs begin to refill during the country’s rainy season.

Economic growth in “the last part of the year has not been as good as we thought it would because of power cuts and so on,” Meles said. A reduction in coffee exports from Africa’s biggest producer of the beans also trimmed growth expectations, he said.

Ethiopian coffee exports have declined by more than 30 percent this year. In March, Ethiopian authorities shut six of the country’s largest exporters’ warehouses after accusing them of hoarding beans bound for export.

“The transition from the traditional marketing network to the commodity exchange was not universally popular amongst the exporters and traders in the coffee market,” Meles said. “We felt that some were trying to sabotage the transition.”

Ethiopia’s coffee earnings have declined this year due to a smaller crop, lower world prices and exporters stockpiling beans in anticipation of a devaluation of Ethiopia’s currency, Eleni Gabre-Madhin, chief executive officer of the Ethiopian Commodity Exchange, said in March.

Stepping Down

Meles, who is 54 and has been in power since 1991, reiterated an April 2008 pledge that he would like to step down after next year’s elections, though he indicated he would stay for part of an additional five-year term if his ruling Ethiopian People’s Revolutionary Democratic Front requests it.

He said he would resign from the ruling party only as a matter of “fundamental principle” and not over a small difference in how long he should remain in office.

“My guess is this is going to boil-down to plus or minus a year or two,” he said. “I’m simply thinking aloud. Now if it were to boil-down to plus or minus a year or two, I would probably say this is not a matter on which I ought to leave the party.”

It’s also possible, “some would say very likely” that he will be succeeded as prime minister by a person from outside the Tigrayan ethnic group, Meles said.

Rebel Group

Veterans of Meles’ Tigray People’s Liberation Front, a rebel group from northern Ethiopia that helped defeat Ethiopia’s Communist Derg government in 1991, form the core of the current ruling party. Though Tigrayans make up just six percent of the country’s population, they dominate the upper levels of Ethiopia’s civilian and military leadership

Meles said there is “zero” chance that opposition leader Birtukan Mideksa will be released from prison in time to compete in the elections scheduled for next May. He also said Birtukan’s jailing is not a pretext to eliminate political opposition.

Birtukan, a leader of the now-defunct Coalition for Unity and Democracy alliance, was first jailed along with more than 120 other opposition leaders, activists, and journalists after unrest following Ethiopia’s disputed 2005 elections.

Birtukan was freed under a government pardon in 2007, before being put back in jail under a life sentence in December after she denied requesting the earlier amnesty. Her supporters say she was jailed because of the growing popularity of her new party, Unity for Democracy and Justice.

The prime minister also defended local elections last year, in which opposition candidates won just three of 3.6 million seats, saying that “democracy is about process, it’s not about outcome.”

Ethiopia’s largest remaining opposition parties withdrew in advance of the poll, citing government intimidation.

“If the process is clean and you get zero, tough luck,” he said.

To contact the reporter on this story: Jason McLure in Addis Ababa via Johannesburg at pmrichardson@bloomberg.net.

    | #1

    We are feadup with a lier weyane reigim. Alwayes he blame others insted of to be honest. he is not ashemed when he lie. what kind of fly this person is? and he olso said if the slamist take over the gevernement we will kikked the like the past. Did he think last year is this year? he is fullishe . day up to day evrything is changed. all somalia ppl will fight him and distroy any weyane sølider.god bless mama Ethiopia.

  2. peace
    | #2

    When does Weyane takes responsibility on its own leaderships is the worst that Ethiopia has to face and not the fault of outsiders or Ethiopians? It is shameful begging and crying for money and gold from the West when Ethiopia is capable of feeding itself despite lack of rain or what ever the reason. Instead of exploiting the land for its own cause give the land to farmers so that they can grow crops they want to feed Ethiopian people, allow more modern farming technology. Allow for open competition of open instead of becoming racist and favoring only for those from Tigre region. Ethiopia can sustain itslef, can be innovative into creating its own way to feed and protect itself the problem is the so called greedy leadership. Ethopia can even feed outsiders let alone the people inside. All they need is education and democracy

  3. hababuba
    | #3

    where is the maturity gyes?Meles is alwayes tring to divert the att, of the people,we should be aware of these facts,beside that what do you expect from the TYRANNY.

  4. ethiopian
    | #4

    we, ethiopian will come after you soon
    all ethiopian must unite against weyane TPLF.
    G7 & OLF good start.
    we are comming after you.


    Many things can be done; one important thing we can do is exposing Woyane’s cadres where ever we live. They are criminals in their own right. The cadres must be exposed for the world to see, we have to follow them to their grave until they pay for their crime.

    In our town we know two who we are following, in due time their picture will be posted all over with the list of their activities. Others we heard who amassed stole money in another city we are working with another group to follow them

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