World Bank approves Ethiopia-Kenya power grid

ETHIOPIA

-
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 ETHIOPIA NEWS

MWH Global names Ethiopia Country Manager

MWH Global has hired Moghes Ayalew Mekonen as the country manager for its operations in Ethiopia.  Read More

SatLink chosen as global TV distribution partner for Ethiopian TV agency

SatLink Communications has been selected by the Ethiopian Radio and Television Agency (ERTA) for the global distribution of its ETV news channel.  Read More

AUC on education: leave no one behind

ICTs, infrastructure and collaboration must be employed to ensure that no country is left behind in Africa’s efforts to improve education, delegates heard at an AU Commission education forum. Read More

African Union marks Science and Technology week

Science and Technology is key for Africa’s socio-economic advancement, says the African Union. Read More

Ethio telecom moves to next phase of expansion

Ethio telecom reports that it has concluded the task of telecoms vendor allocation and is now proceeding to implement its network expansion project. Read More

New Climate Innovation Centre in Ethiopia

Ethiopia is set to reap the rewards of a new initiative to help local businesses develop and deploy climate friendly technologies that will create thousands of new green jobs.  Read More

Ethiopia approves 3 new solar projects

Ethiopian Electric Power Corporation (EEPCo) has approved a 300 Megawatt solar project in partnership with two US firms. Read More

Kaberuka named African of the Year

African Development Bank Group President Donald Kaberuka has been named 2013 African of the Year. Read More

Joint initiative to boost youth employment in Africa

A Declaration of Intent on youth job creation has been signed at the AU headquarters in Addis Ababa, Ethiopia. Read More

AUC launches AU Agenda 2063 website

The African Union has officially launched the Agenda 2063 website, aiming to highlight a common vision for the African continent. Read More

PRESS OFFICES

Sage ERP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN Business

FEATURED STORY

Kenyan shift to Green Economy would generate USD 45bn by 2030 Kenyan shift to Green Economy would generate USD 45bn by 2030

Kenya’s transition to a green economy could produce major economic benefits  equivalent to an estimated USD 45 billion by 2030, a new  study shows.

IN DEPTH

E-waste threatens Ghana’s beachesE-waste threatens Ghana’s beaches

Many beaches in Ghana, already stressed by pollution and poor maintenance, are now facing a new threat: e-waste.

COMPANY NEWS

MTN makes it onto World Champions list

MTN Group has been named as the only South African company on the World Champions list. 

VMware Reports First Quarter 2014 Results

VMWare has announced Year-over-Year revenue growth of 14% to $1.36 Billion in its Q114 results.