The African Development Bank (AfDB) Board of Directors, have approved two sets of funding aimed at boosting Ethiopia’s electricity infrastructure.
The funds include $83.64 million African Development Fund (ADF) loan and $14.15-million ADF grant to finance part of the cost for the Addis Ababa Transmission and Distribution System Rehabilitation and Upgrading Project (AATDRUP).
The Bank had financed the Addis Ababa Distribution Master Plan Study completed in 2015, which provides the basis for the AATDRUP.
In addition to the Bank's contribution of $97.79 million, the Japanese International Cooperation Agency and the government of Ethiopia will contribute $90.65 million and $20.59 million, respectively, to finance the total project cost of $209.03 million.
The project, which is expected to be completed within the next three years involves:
- Rehabilitation and construction of 545 km of medium voltage lines,
- Replacement and installation of 582 distribution transformers and 13 primary substations,
- And establishment of the supervisory control and data acquisition system (SCADA) for the operation/control.
It also includes upgrading of nine existing high-voltage substations and the construction of 3.8 km of 132-kV double-circuit overhead line.
Ethiopia’s electricity infrastructure development
The project will support the government of Ethiopia to relieve existing or imminent constraints on the electricity infrastructure to enable it to meet the growing demand in the capital city and its environs. Read more...
It also aims to replace obsolete equipment in order to reduce energy losses and remove overloads, hence improving the quality of electricity supply, and to help address the connection backlog of an estimated 432,000 customers, occasioned by inadequate distribution system capacity.
The Bank’s intervention is aligned with Ethiopia’s long-term development blueprint, the Growth and Transformational Plan II (2016-2020), which includes energy infrastructure development as the main pillar of the nine priority areas.
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