Ethiopia-Kenya power project to be launched soon

power  james jhsEthiopia and Kenya have revealed plans to begin construction of the Ethiopia-Kenya interconnector high-voltage electric highway line from September 2013

The project has secured financing from the World Bank and the African Development Bank (AfDB).

Both banks will provide 80 per cent of the funds needed for the US$1.26bn project. The World Bank has agreed to lend Ethiopia US$243mn and Kenya US$441m while AfDB will lend an additional US$242.9mn to the project.

The Ethiopian government will contribute US$21.1mn and the Kenyan government will provide US$88mn.

The project will be expected to provide revenues to Ethiopia through the export of electricity to Kenya and increase the volume and reduce the cost of electricity supply in Kenya.

Ethiopian Electrical Power Corporation (EEPCo) CEO Meheret Debebe said, “The power highway will enable electric power-sharing between the two countries and pave way for more regional cooperation between the countries of East Africa.

“There is no doubt that cross border electricity interconnection and power trade has become a target for each country due to the advantages to all the interconnected countries in both economical and social aspects.”

The MoU for the project was signed in December 2009 between the Ethiopian and Kenyan governments.

Meheret said, “The power trade strategy, to be developed as part of the power trade program study in the region, will enable the countries from the regional energy market, supported by the Ethiopia-Djibouti, Ethiopia-Sudan and Ethiopia-Sudan-Egypt power interconnections.”

The loan agreement has already been approved by the banks and the draft tender document for the design has been submitted to the project office. The project is expected to be completed in 2016.


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