Geothermal Resource Development (Amendment) Proclamation No. 1204/2020.

Proclamation No. 1204/2020 amends the Geothermal Resource Development Proclamation No. 981/2016 with the purpose of refining the legal, fiscal, and administrative framework governing geothermal resource development in Ethiopia. The proclamation introduces changes to provisions on administration, compensation, fiscal treatment, and dispute resolution. It revises the structure and titles of key parts and articles of the principal proclamation, explicitly regulating exemptions from customs duties and taxes, income tax obligations, license fees, and environmental safety. It establishes that the income tax rates applicable to licensees engaged in geothermal energy development for sale shall mirror those applicable to mining and petroleum operations under the Federal Income Tax Proclamation. It also replaces negotiation-based dispute settlement mechanisms with binding arbitration where disputes between licensing authorities and licensees cannot be resolved within a defined timeframe, thereby strengthening enforceability and investor certainty.