World Bank approves Ethiopia-Kenya power grid
ETHIOPIABy BiztechAfrica - July 13, 2012, 10:32 a.m.
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.
MORE ETHIOPIA NEWS
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
Ethiopian mining venture drills into Q-KON for connectivity supportQ-KON has been selected as the preferred provider of connectivity services to Allana Potash Afar PLC, an Ethiopian subsidiary of a Canadian Corporation. Read More
AfDB Launches USD1.26B Kenya – Ethiopia electricity highwayThe African Development Bank has launched the 1,068-kilometre high-voltage electricity highway to be built between Kenya and Ethiopia. Read More
Ethiopia to Host Banking and ICT Summit 2013The Ethiopia Banking and ICT Summit will be staged on 2 August, 2013 at the Sheraton Hotel, Addis Ababa Ethiopia. Read More
6th Ethiopian ICT conference calls for papersPapers are invited from speakers at the 6th Ethiopian ICT annual Conference (EICTAC-2013), with the Theme: “ICT for sustainable Development”. Read More
ethio telecom punts 3G packagesethio telecom has launched a 3G internet service package offer with 3G dongle and 3G Wi-Fi router, for both postpaid and prepaid subscribers. Read More
Metro, LG launch mobile service in EthiopiaLG Electronics and Metro Plc have launched a mobile after-sales service centre in Ethiopia. Read More
ZACR highlights dotAfrica value propositionsZACR has brought Africa’s ICT community up to speed with the dotafrica domain progress at the IAD Summit in Ethiopia. Read More
AU Commission slams Dlamini Zuma ‘fakers’The African Union has warned against the unauthorized use of the name of its chairperson, Dr Nkosazana Dlamini Zuma. 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.