Ethiopia is endowed with huge amount of renewable energy resourcesrnsuch as small-hydro that is identified to be suitable for ruralrnelectrification. This study takes the case of potential small hydropowerrnassessment in Anger and Guder sub-basins of Abbay Basin. The studyrnindicates that there are many small hydropower potential sites in thernstudy area. Various researchers identified potential small hydropowerrnsites in the different regions of the country. Unfortunately, randomrnselection of sites as considered by other researchers may end uprnidentifying a site which will not give reliable amount of discharge forrnpower generation through out the year. In this study, a new attempt isrntried to produce initial site identification criteria by considering variousrnparameters which will affect the power out put of a site. The initialrnidentification criteria set up specifically suitable for the study area isrnfound to be a minimum of 110 km2 catchment area and 80 m head. Arntotal of 18 potential sites are identified in the present study byrnconsidering this criterion with a total power potential of 19564 kw. Inrnaddition an attempt is also made to develop regionalized flow-durationrncurves for prediction of discharge at ungauged streams. To do this,rnmethods have been involved in developing a set of parametric flowdurationrncurves based on flow values at gauged points. This data setrnincludes the correlation of drainage area versus average annual run offrnfor all gauges in the region and values of Q for a particular exceedancernvalues. This method allows prediction of only certain exceedance valuesrnof discharge for potential sites.rnFor the present study, engineering geological mapping was carried outrnalong the different components of the sites in the context of highrnlightening possible problems that could be caused from the earthrnmaterials present around each ground verified SHP sites. In an effort to incorporate these factors, the strength and weathering characteristics ofrnrocks, swelling potential of soils and the stability conditions of rock andrnsoil slopes exposed along the different components of the SHP schemesrnwere evaluated by utilizing various empirical and index properties ofrnsoils. Therefore, further research is recommended for the assessmentrnsmall hydropower sites which consider a combination of more elaboraternhydrologic and geotechnical aspects.