28 September 2012 – The African Development Bank (AfDB) has approved a US$348 million loan for Ethiopia and Kenya to finance a cross power interconnector, the second phase of a US$1.26 billion project to help improve power supply in the East African Power Pool region.
Ethiopia will generate revenue by exporting power from itsmainly hydropower resources to Kenya.Kenya, east Africa’s biggest economy, has been investing in its infrastructure, including expanding power supplies to meet growing demand amid robust economic activity.
Ethiopia is undertaking multi-billion dollar power investment projects, and is building Africa’s biggest dam on the Nile River with an investment of some US$5 billion. Various projects to produce about 7,500 MWarealready in the implementation stages in Ethiopia.
Ethiopia will receive US$232 million of the AfDB funding, while Kenya will get US$116 million.The World Bank approved the first phase of the funding in July 2012, totalling US$684 million
The transmission interconnector project, a 1,068 km high-voltage transmission line, is co-funded by the World Bank, the French Development Agency and the Ethiopian and Kenyan governments.