Politics and policy
AfDB approves Sh29bn loan for Kenya-Ethiopia power line
Posted Thursday, September 20 2012 at 13:11
The Kenya-Ethiopia electricity power line on Wednesday got a shot in the arm after the board of the African Development Bank (AfDB) approved Sh29.2 billion financing two months..
AfDB from its capital in Tunis signed the US$ 348 million (Sh29.2bilion) funding of $1.26 billion (Sh105.8 billion) loan for the construction of the 1,068 km power line.
AfDB said Ethiopia would receive Sh19.4 billion ($232) million of the funding, while Kenya would take Sh9.7 billion ($116 million). The World Bank approved the first phase of the funding in July, totalling Sh57.4 billion ($684 million).
The major transmission line would link Kenya to the controversial Gilgel Gibe III dam site in southern Ethiopia, pushing back against months of calls by local and international rights and environmental groups to keep out of the project.
“With the approval of this project, we have solidified our position as the key strategic partner for East African countries in the power sector,” said Gabriel Negatu, AfDB’s regional director in charge of East Africa.
AfDB however told Business Daily that the project is more of a regional project targeted at more than one dam rather than a bilateral arrangement between Kenya and Ethiopia.