Ethiopia Electric Power (EEP) and Ethiopia Electric Utility (EEU)


EEP (responsible for generation and transmission) and EEU (responsible for distribution) are state owned electricity sector companies covering generation/power purchase, transmission and distribution in Ethiopia.

Debt build up due to several factors including non-cost-reflective tariffs threatened financial viability of EEP and in turn the electricity sector. EEP/EEU debt amounted to over 12% of the country’s GDP and c. 40% of local banking sector balance sheet. Debt facilities included nearly two dozen different facilities from local and international providers.

Recognizing the challenges facing the power sector, the Government of Ethiopia formed a task force under Ministry of Finance for sector debt restructuring. MayCap team supported the task force in the analysis and structuring of debt restructuring options available to EEP/GOE.

MayCap team comprising Abhay Ketkar and Pankaj Nehra were responsible for:

  • Review and development of electricity sector financial model and key sensitivities/ options for debt restructuring
  • Analysis of EEP/EEU debt facilities involving local bank debt and government on-lending
  • Analysis of electricity sector cashflows and sector debt carrying capacity
  • Development of sustainable debt restructuring options including credit enhancement as appropriate
  • Incorporated multiple stakeholders’ perspective, including Commercial Bank of Ethiopia (CBE) and the Ministry of Finance.

In addition, the team also provided inputs to EEP/WB team on the energy sector reform program:

  • Tariff reforms, aiming at full cost recovery in the medium term
  • Institutional reforms, with a reform roadmap currently in the final stages of preparation
  • Performance improvement plan for EEP and EEU, to improve the operational efficiency, service delivery, and customer service of the power utilities.

For further information, contact Abhay Ketkar at abhay.ketkar@maycapadvisors.com.


Transaction Size

US$ 10 billion


Diagnostic assessment of sector financials and propose debt restructuring options