Electrical energy is becoming an essential conunodit; for the modern life. En:r; sector.rnweather industry, technology, transportation, public utilities or the domestic life, is nowrndependent on electrical power. The dependence on electrical power is becoming more andrnmore, which has resulted into increasing demand for it. Therefore, with the increasing demandrnfor power, the activities on smail hydropower projects is accelerated in recent times. Thernsmall hydropower schemes are the appropriate solution to power demand as these requirernsmall capital investment and can be completed in a very short period of time, with minimumrnadverse environmental impacts.rnThe present study area is located in Abay drainage basin, in the central part of the country.rnMuger, lemma, and Waleka drainage Sub-basins of Abay ha'e been identified for thernpresent study. The main objective of the present study was to identify potential SmallrnHydropower sites in the study area and to carry out ground verification with engineeringrngeological appraisal, at pre feasibility level, of SHP sites (Selected sites).rnIn total 36 potential SHP sites has been identified during the present study. Out of these 36rnsite s observed discharge data was available for only 18 sites. For 9 small hydropower (SHP)rnpotential sites, flOW-duration curve is prepared from observed daily discharge data. However,rnfor 9 other potential sites the observed discharge data has been projected from adjacentrngauged stations by percent area ratio method for those which demonstrate similar catchmentrncharacteristic. Initial estimation of the power potential of 18 SHP sites has been computed forrn75% dependable discharge and taking turbine efficiency to be 90% and efficiency of therngenerator as 95%. Thus, the total power potential, as estinmted for 18 idcntified sitcs comesrnout to be 5325 kW.rnThus, these 18 potential SHP sites can be ground verified and be taken up for detailedrnEngineering Geological Appraisal. However, for the present study, with the limitation ofrnresources, time and financial constraints it was not possible to undertake ground verificationrnand detailed engineering geological appraisal of all 18 SHP sites. Therefore, a sincere effOitrnhas been made to cover 4 potential SHP site to undertake ground verification and detailedrnengineering geological appraisal, at pre feasibility level. These sites were, Beresa, Chacha,(ill/" and R"bi (;,"n('1"O. Tillis. these !~ '.il sites Vere gHllllld verilied le)r the availability of thernhead, discilarg.; and til.; possible la)l'lll, FUriher, engineering ge,)logical appraisal of thesernsites has been carried out. In additi"ti to this at all four l'ropos"d SHP site, eng"'ec'nngrngeological mapping has been carried out.rnFor the present study, an attempt has been made to tentatively design the varIOUS SHPrncomponents and select the turbine based on the power potential for the selected site.rnFurther, in the present study an attempt has been made to develop a GIS data base on smallrnhydropower. Tllis data base is prepared with an intention to provide all necessary informationrnon SHP a1 pre-feasibility level for the present study area and may serve the planners andrndevelopers to haw some form of 'first hand information' on small hydropower potential inrnthe area. The GIS database on SHP may serve as a useful decision making tool for thernplanners and developers, intending to develop slllall hydropower schemes in the present studyrnarea.rnFinally based on the results and finding of the present study, certain recommendations hasrnbeen made.