HomeRegional NewsEast AfricaAfDB loans $145m for east-African transmission line

AfDB loans $145m for east-African transmission line

Tanzania and Kenya have secured a $145 million (ZAR2 billion) loan from the African Development Bank (AfDB) to fund the construction of a transmission line between the two east African countries.

The AfDB announced this decision on Thursday in support of increasing regional cross-border power connections, the Wall Street Journal reported.

The funds will cover the construction of a 508 kilometre transmission line as well as relevant substations which have the capacity to transmit 2 000MW in both directions.

“The project is expected to improve the supply, reliability and affordability of electricity in the east African region”, the AfDB said in a statement.

Last year the Energy and Minerals Ministry said that Tanzania will develop a $455 million (ZAR5 billion) power transmission line by April 2015 connecting their power grid to Kenya and Zambia.

Known as the ‘backbone interconnector’ it will deliver a more reliable power supply, and increasing trade profits as expensive diesel powered generators would no longer be a necessity.

Power resources

Tanzania has 46.5 trillion cubic feet of proven natural gas reserves and is investing in a pipeline and new gas-fired power plants to boost generation. The country also has 5 billion tonnes of coal reserves and plans to build coal-fired power plants. There are also plans to export liquefied natural gas (LNG) for a planned build LNG plant.

Nicolette Pombo-van Zyl
As the Editor of ESI Africa, my passion is on sustainability and placing African countries on the international stage. I take a keen interest in the trends shaping the power & water utility market along with the projects and local innovations making headline news. Watch my short weekly video on our YouTube channel ESIAfricaTV and speak with me on what has your attention.