AfDB approves Sh29.2bn for Kenya-Ethiopia power line

What you need to know:

The 1,068km power line is expected to cost Sh106 billion.
The lender 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 Sh57.4 billion ($684 million) in the first phase of funding.
The transmission line would link Kenya to the Gilgel Gibe III dam in southern Ethiopia despite protests by environmental groups against the project.
The project seeks to promote power trade and regional integration, contribute to the Eastern Africa Power Pool countries’ social and economic development, and reduce poverty.

The African Development Bank (AfDB) has approved Sh29.2 billion financing for the Kenya-Ethiopia power line, bringing to Sh87 billion the funding committed to the project in the last two months.

The 1,068km power line is expected to cost Sh106 billion.

“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 AfDB regional director in charge of East Africa Gabriel Negatu.

The lender 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 Sh57.4 billion ($684 million) in the first phase of funding.

The transmission line would link Kenya to the Gilgel Gibe III dam in southern Ethiopia despite protests by environmental groups against the project.

Last year, the UN’s World Heritage Committee expressed concerns over the 1,870 megawatt dam’s potential impact on Lake Turkana, urging Ethiopia to halt construction.

Regional integration

Kenya is keen to reduce the cost of electricity given that 24.8 per cent of its total 1,350 megawatts comes from diesel powered generators that have partly been responsible for the high cost of doing business.

“The project is also perfectly aligned with the climate change mitigation and adaptation strategy of the bank, as it has the potential to replace some fossil-fuelled thermal generation in the East African region,” said Mr Negatu.

The 500kV transmission line between the two countries would be commissioned in November 2017, said AfDB.

It also includes putting up of associated converter stations at Wolayta-Sodo in Ethiopia and Suswa in Kenya, with a power transfer capacity of up to 2,000 megawatts.

The project seeks to promote power trade and regional integration, contribute to the Eastern Africa Power Pool countries’ social and economic development, and reduce poverty.

The integration of the power systems will enable the development of Ethiopia’s large hydropower resources for the export market and address power shortages.

The project would position Ethiopia as the main powerhouse and Kenya as the main hub for power trade in the East African region, AfDB said in a press statement.