AfDB approves Sh13bn loan for power project

The Energy ministry said last year the Kenyan segment to run from Isinya to Namanga would be ready by December 2016. PHOTO | FILE

What you need to know:

  • The loan will see the countries embark on construction of the 400-kilovolt (kV) double circuit lines and two substations to allow them trade in power.

The plan to build a 508-kilometre electricity transmission line linking Kenya and Tanzania received a major boost Thursday after African Development Bank (AfDB) approved Sh13.19 billion ($144.9 million) loan to finance the project.

The loan will see the countries embark on construction of the 400-kilovolt (kV) double circuit lines and two substations to allow them trade in power.

“The project involves the construction of approximately 508km of transmission line between Kenya and Tanzania (about 93 km in Kenya and 415 km in Tanzania) and associated substations in Arusha and Singida (Tanzania),” the AfDB said in a statement.

The investment is a key piece of the regional power pool currently being created with another power line to Ethiopia already under construction.

The two countries have already invited bids which will close today with the project planned to be implemented in 23 months from the contract commencement date.

The Energy ministry said last year the Kenyan segment to run from Isinya to Namanga would be ready by December 2016.

The power line will have a transfer capacity of up to 2,000 megawatts in either direction. “The project is expected to improve the supply, reliability and affordability of electricity in the eastern Africa region through cross-border exchanges of cheap and cleaner surplus power from neighbouring countries,” AfDB added.
Kenya is looking to raise its power production by 5,000 megawatts by 2018 while Tanzania seeks to double its generation capacity to 3,000 megawatts by end of next year.
The regional power pool is set to boost access to cheap power as well as spur industrial production.

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