Ethiopia Electric Power signs US$120mn power project deal

Atlantis Images-transmissionlinesAfDB has provided the Kenyan government funding for a 500 kV transmission line in the country. (Image source: Atlantis Images)The Ethiopia Electric Power has signed a US$120mn contract with China Electric Power & Equipment Technology Company (CET) for the construction of the Ethiopia-Kenya Transmission line 

Funding for the construction of the 433 km transmission line on the Ethiopian side of the border came from the African Development Bank (AfDB), which approved a US$208mn loan three years ago.

AfDB has also provided US$118mn to the Kenyan Government for the project with the French development agent funding parts of the 1,100 km long, 500 kV transmission line with a capacity of 2,000MW.

“We are confident that this contract will be completed in time considering the satisfactory performance of CET,” said Azeb Asnake, CEO of Ethiopian Electric Power, which is the state power generation agency.

The overall cost of the project, which includes two connector stations in each country is estimated at US$1.26bn. Two converter stations will be located at Wolayta-Sodo in Ethiopia and Suswa in Kenya.

The construction process will also involve putting up steel towers and transmission cables.

“The direct beneficiaries of the project are households, business and industries in communities located in Kenya, the direct off-taker of the power. The interconnection with Ethiopia will ensure access to reliable and affordable energy to around 870,000 households by 2018,” noted AfDB Gabriel Negatu.

Mwangi Mumero

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