The development plan of the Federal Government of Ethiopia emphasized low-cost energy supply as a prerequisite to the enhancement of industrial and economic development for the period 1984-1993. Current power planning studies have estimated Ethiopia's hydropower potential at 30,000 MW, which greatly exceeds foreseeable domestic demands. Presently, only 1 percent of the potential is utilized. The government has therefore initiated the implementation of the Gilgel Gibe hydroelectric power plant to enhance industrial development and increase its national income through export sales of surplus energy to neighboring countries. The World Bank-assisted Ethiopia Second Energy, projected to end in the year 2000 will help to realize this objective. The Ethiopian Electric Power Corporation (EEPCO) will implement the construction of the power plant, whose reservoir will cover an area of 6200 ha, necessitating land acquisition and involuntary resettlement. An environmental assessment (EA) including a social assessment was carried out and a resettlement action plan (RAP) designed to address the adverse social impacts presumed to be linked to the building of the reservoir. The reservoir as well as the resettlement site are located in the Oromia Region under the Jima zone administration. The host population and the resettled population are both Oromo and of Moslem faith. The main economic activity of the population is agriculture and animal husbandry.