World Bank approves Ethiopia-Kenya power grid

DEVELOPMENT

|
Image: By BiztechAfrica
World Bank approves Ethiopia-Kenya power grid

The World Bank’s Board of Executive Directors has approved the Eastern Electricity Highway Project, which will connect Ethiopia’s electrical grid with Kenya’s, create power- sharing between the two countries, reduce energy costs, promote sustainable and renewable power generation, better protect the region’s environment, and pave the way for more dynamic regional cooperation between the countries of East Africa.

The new project marks the first phase of a regional East Africa power integration program which is likely to cost  USD1.3 billion at completion, eventually benefiting 212 million people living in five countries with a combined GDP of USD107 billion.

Together with the Governments of Ethiopia and Kenya, the African Development Bank (AfDB), and the French Agence Française de Développement (AFD), the project will finance a cross-border power line, to be built according to strong social and environmental safeguards that will allow Ethiopia to sell its surplus power to Kenya and reduce the need for polluting thermal power in Kenya. 

The exported electricity will originate from the large number of existing and future power plants in Ethiopia.  When required, the flow of electricity can be reversed and Kenya would thus use the same interconnection facilities to sell electricity to Ethiopia. 

The World Bank financing to both governments − USD243 million for Ethiopia and USD441 million to Kenya − will come from the International Development Association,* the Bank’s fund for the world’s poorest countries.

“This landmark transformational project will change the fundamentals of the power sector in East Africa. It will expand access and lower the cost of electricity supply to homes and businesses across Kenya and help to reduce thermal power emissions in Kenya, a clear benefit to the region’s environment,” said Makhtar Diop, World Bank Vice President for the Africa Region. 

“Currently, only one in three Africans has access to electricity in their communities so boosting power sharing between countries is an essential step toward addressing Africa’s needs.”

Ethiopia will benefit through the sale of energy to Kenya, which faces severe power shortages, and is among the five African countries considered likely to achieve middle-income status in the next decade provided it can grow at six percent annually, significantly expand its electricity supply and improve its transport links. Both countries will benefit from additional jobs created by construction and installation activities.

“The Eastern Electricity Highway Project will make a significant contribution to help meet the development needs of the people of Ethiopia, Kenya and the sub-region” said Jamal Saghir, World Bank Director for Sustainable Development, Africa Region. “Once built, this power line will be a symbol of Africa’s determination to solve its energy crisis through cooperation in energy trade. It will be a landmark in achieving more growth and less poverty in the region.” 

The approval of the East Africa electricity highway project is anchored in a World Bank regional strategy for Africa which promotes greater investment in the continent’s dire lack of key infrastructure as a key step to creating significantly more economic growth and less poverty, with a special emphasis on lowering the cost of supply to create jobs and stimulate the investment capacity of the private sector.

 



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE DEVELOPMENT NEWS

Obuasi MCE salutes Tigo Ghana Shelter 4 Education Initiative

Tigo has donated new classrooms and facilities to the St Joseph R/C Primary School for special needs children.  Read More

Gender disparity in tech industry worries MainOne

MainOne’s Chief Executive Officer, Ms. Funke Opeke, has lamented the gender imbalance in the technology space. Read More

Tigo Shelter4Education puts smiles on faces of Tupaa pupils

Tupaa, a farming community within the Ga South Municipal Assembly in the Greater Accra Region, was presented with a new six-unit classroom block by Tigo Ghana as part of its Shelter 4Education project. Read More

MainOne supports initiatives to teach Nigerian girls software skills

MainOne has for the second year, backed the Women Technology Empowerment Center’s Technology Camp.  Read More

Tigo leads CSR in Ghana with Shelter 4 Education programme

Tigo Ghana has unveiled its new flagship Corporate Social Responsibility (CSR) programme dubbed Shelter 4 Education. Read More

Huawei repairs Kampala’s Solar street lights

Huawei has reached an agreement with Kampala Capital City Authority (KCCA) to complete the repair and maintenance of solar streets lights in a move aimed at lighting the city without incurring exorbitant power costs. Read More

Tigo launches Tigo Digital Changemakers Competition 2015

Gaspard Twagirayezu Tigo Rwanda, in partnership with non-profit organization Reach for Change, has launched the 4th edition of the Tigo Digital Changemakers Award.   Read More

Scatec Solar to build first large scale solar plant in West Africa

Mali will install the largest solar grid-connected power plant in the region. Read More

Airtel sponsors Accra Millennium Marathon

Airtel Ghana has partnered the Accra Metropolitan Assembly as headline sponsor of the maiden edition of the Millennium Marathon. Read More

Airtel employees inspire students at Kangemi Resource Centre

Students from over 20 non-formal schools in Kangemi got a chance to interact with Airtel Kenya employees this weekend, through an Airtel sponsored- symposium that was held at Kangemi Resource Centre, Nairobi. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Batswana dragging feet in digital migration Batswana dragging feet in digital migration

More than a month after the deadline for the digital migration from analogue television, few people have shown any pronounced enthusiasm in entering the new digital TV realm. 

IN DEPTH

As curtain falls on MDGs, what next?As curtain falls on MDGs, what next?

Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.

COMPANY NEWS

MTN Business App of the Year submissions closed

Entries for the annual MTN Business App of the Year Awards taking place on 13 August in Johannesburg have closed, and an expert panel of judges that is adjudicating ...