AfDB grants US$145mn loan for Kenya-Tanzania Interconnection Project

powertransmission-arbyreed-flickrThe African Development Fund will support the project that will improve the supply of electricity between Kenya and Tanzania. (Image source: Arbyreed/Flickr) The African Development Bank Group (AfDB) has approved a loan amounting to US$144.9mn to the Kenya-Tanzania Interconnection Project

The loan, known as the African Development Fund (ADF), will facilitate the project, which will allow power transmission between the two countries, stated AfDB.

The Kenya-Tanzania Interconnection Project promotes regional integration through power trade. It is expected to improve the supply, reliability and affordability of electricity in eastern Africa through cross-border exchanges of cheap, clean surplus power from neighbouring countries.

Nearly 508 km of transmission line between Kenya and Tanzania (about 93 km in Kenya and 415 km in Tanzania) and associated sub-stations in Arusha and Singida in Tanzania would be built. The line, with a transfer capacity of up to 2,000MW, will allow for the interconnection of the Eastern Africa Power Pool to the Southern African Power Pool, and eventually to northern Africa through the East Africa Electricity highway.

Initially, the project will allow Ethiopia and Kenya to exchange power, followed by the import and export of energy from the interconnected countries.

The project aligns with regional integration strategy papers (RISPs) for east Africa, which focus on regional infrastructure and capacity building. It also fulfills the objectives of the New Partnership for Africa’s Development (NEPAD) in terms of regional integration and promotion of infrastructure development through regional co-operation in key productive sectors, stated Alex Rugamba, director of energy, environment and climate change at AfDB.

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