USD1.26bn for African electricity highway
GOVERNMENTBy BiztechAfrica - Sept. 21, 2012, 3:36 p.m.
The Board of the African Development Fund has approved USD348 million in funding for a USD1.26-billion electricity highway project between Kenya and Ethiopia.
Due for commissioning in November 2017, the project involves the construction of a 1,068-kilometre high-voltage direct current 500 kV transmission line between the two countries. It also includes putting up of associated converter stations at Wolayta-Sodo (Ethiopia) and Suswa (Kenya), with a power transfer capacity of up to 2,000 MW.
The project is intended to promote power trade and regional integration, contribute to the Eastern Africa Power Pool (EAPP) countries’ social and economic development, and reduce poverty in those countries.
“With the approval of this project, we have solidified our position as the key strategic partner for East African countries in the power sector,” said Gabriel Negatu, AfDB’s Regional Director in charge of East Africa.
“Our involvement in the project has included a leading role in the preparation of the project and financing some of the feasibility studies required to appraise the project and make it bankable. We have mobilized funds from other development partners in a timely and efficient manner. The project is also perfectly aligned with the climate change mitigation and adaptation strategy of the Bank, as it has the potential to replace some fossil-fuelled thermal generation in the East African region.”
The project has been co-financed with the World Bank, the French Development Agency (AFD) and the Governments of Kenya and Ethiopia. This key inter-country power link comes at a time when demand for electricity in the East African region has steadily risen relative to supply, leading to occasional severe power shortages. To alleviate this situation, East African countries have had to resort to exorbitantly expensive power from emergency generators. However, the region is blessed with a great variety of natural resources, in particular hydropower, mainly concentrated in Ethiopia.
The integration of the power systems of the EAPP will enable the development of Ethiopia’s large hydropower resources for the export market and address power shortages throughout the region. The project will position Ethiopia as the main powerhouse and Kenya as the main hub for power trade in the East African region. However, it is anticipated that power will flow in both directions: from Ethiopia to East African countries all the way to the Southern African Power Pool in the short term, and/or from the Eastern and Southern power pools to Egypt and Sudan in the long run.
In Kenya alone, the additional power injected into the national grid will enable the supply of electricity to an additional 870,000 households by 2018, and a cumulative total of 1.4 million additional households by 2022, of which 18% will be located in rural areas. Businesses and industries will also benefit, with around 3,100 GWh of additional energy by 2018, increasing to around 5,100 GWh by 2022.
“The East African region is blessed with abundant energy resources which have remained untapped for some time, in particular hydropower and geothermal. With the implementation of this flagship project, which is meant to be an anchor link in establishing the backbone of the EAPP, energy resources can be pooled at the regional level to create a regional electricity market through power trading,” said Thierno Bah, AfDB’s Senior Power Engineer.
“Power trading will ensure enhanced power security for the EAPP countries and result in cost savings for the electricity companies and ultimately lower tariffs for end users. The two electricity companies, Ethiopian Electric Power Corporation (EEPCO) in Ethiopia and Kenya Electricity Transmission Co. Ltd. (KETRACO) in Kenya, will also benefit from additional revenues from carbon credits with the innovative Clean Development Mechanism (CDM) methodology developed by the Bank and recently approved by the CDM methodology panel,” he added.
MORE GOVERNMENT NEWS
Angolan census pilot gets underwayAngolan Vice-President Manuel Domingos Vicente has launched the 15-day pilot census, ahead of the republic’s first national census in over 40 years. Read More
Being Pan-African symposium underwayLeading intellectuals from Africa and the African Diaspora are convening in Ethiopia for the African Union symposium “Being Pan-African.” Read More
NCC: MNP is succeedingDespite scepticism over MNP in a nation well used to owning multiple SIMs, Nigeria’s NCC says MNP is succeeding. Read More
Malawi to establish National Data CentreThe Malawi government will this year establish a National Data Centre to rationalise data storage and data processing facilities in the country. Read More
Zambia commends Ghana for digital migrationZambia’s Information and Broadcasting Services deputy minister Mwansa Kapeya has commended Ghana for the successful implementation of its digital migration programme. Read More
Mozambican President on visit to ChinaMozambican President Armando Guebuza has arrived in Shanghai, on a working visit to China, to boost trade and cooperation between the two countries. Read More
ITU awards Rwanda for WSIS ICT4D action planThe ITU has handed two awards to Rwanda for its efforts in implementing WSIS (World Summit on Information Society) in ICT for Development. Read More
Egypt stages second IT companies’ forumEgypt’s Minister of Communications and Information Technology, Atef Helmy, this week presided over the second forum for IT companies. Read More
Uganda invites input on draft ICT policyThe Ugandan government is staging a series of consultative workshops on its draft ICT Policy for the country. Read More
Stakeholders oppose NCC’s lawful interception regulationTelecoms industry stakeholders have risen up against Nigerian Communications Commission (NCC’s) Draft Lawful Interception of Communications Regulation. Read More
FEATURED STORYICT opens doors for Kenyan slum dwellers
A Nairobi based group is equipping high school girls from Nairobi's slums with ICT skills to help them participate meaningfully in building the economy.
BEST READ NEWS
IN DEPTHBetting on the cloud
In Africa, an emerging ICT industry is betting its future on serving customers and businesses through cloud based applications, Riverbed Technology has told Biztechafrica.
COMPANY NEWSMost powerful and compact Samsung A3 colour and mono copiers announced
Samsung Electronics South Africa has launched its groundbreaking CLX-9201, 9251, and 9301 A3 colour and SCX-8123, CX-8128 A3 mono copiers.