AfDB $1.03b Loan to Increase Electric Power in Ethiopia,Kenya

Filed under: Business |
power transmission lines photo

Ethiopia is building 3 massive hydropower plants

The African Development Bank (AfDB) on Thursday approved a $348 million loan for Ethiopia and Kenya to finance a cross-border power line, the second phase of a $1.26 billion power project to help improve power supply in the region.

In the first phase of the funding in July, the World Bank approved $684 million for the project that will see Ethiopia generate revenue by exporting power from its hydropower stations to Kenya.

Kenya,  which is east Africa’s biggest and fastest growing economy, with a 4.3 percent growth rate in 2011, has been facing constant power blackouts and has been investing in increasing power generation and distribution to meet growing demand amid robust economic activity and growing population.

Under the terms of the loan Ethiopia will receive $232 million of the second phase funding, while Kenya would take $116 million.

The 1,068 km high-voltage transmission line power project is co-funded by the World Bank, the French Development Agency and the Ethiopian and Kenyan governments.