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AfDB approves new funds for Ethiopia-Kenya power project

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December 8, 2012 (ADDIS ABABA) - The African Development Bank (AfDB) has approved a loan agreement amounting US$115 million to finance the construction of a cross-border electricity highway running between Ethiopia and Kenya.
 

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A member of the Karo tribe by the Omo river in Ethiopia. Three hydropower dams are planned - there are fears that the resulting scarcity could lead to violent conflict (Getty)

According to a press release issued by AfDB on Friday, the loan agreements were signed in Nairobi by Gabriel Negatu, AfDB’s East Africa regional director, and Kenya’s finance minister, Robinson Githae.
 
The US$1.26 billion Ethiopia-Kenya power line project is a 1,068km high-voltage transmission line with a power transfer capacity of up to 2,000MW.

Upon completion, the project will promote power, economic trading and regional integration further contributing to the Eastern Africa Power Pool (EAPP) countries’ social and economic development, and thereby playing tremendous roles in alleviating poverty across countries of the region.
 
“This project will facilitate export of surplus power from Ethiopia to Kenya and therefore increase power supply in the country,” Githae said.
 
According to AfDB, the project will position Ethiopia as the main powerhouse and Kenya as the main hub for power trade in the East African region.
 
The project which is co-funded by the World Bank; the French Development Agency; and by the governments of Ethiopia and Kenya will ultimately connect power grids of five East African countries, namely Kenya, Rwanda, Uganda, Burundi and the Democratic Republic of Congo.
 
Last September AfDB approved a second phase US$348 million to fund to the project.
 
Ethiopia is currently investing billions of dollars in building hydro-power dams as part of its ambitious plan to be a leading regional power exporter.
 
Ethiopia is currently exporting hydropower processed electricity to Djibouti and Sudan. It will soon start exports to Kenya when the construction of power transmission inter-connector pipeline is complete.
 
South Sudan has also signed a memorandum of understanding with the Ethiopian government to a build transmission line that will enable it to import Ethiopia’s electricity.
 
According to state utility, Ethiopia Electric and Power Corporation (EEPCo), Ethiopia has plans to invest over US$12 billion to increase its power generating capacity to 10,000MW in 2015 from the current 2,000MW and to further boost it to more than 40,000MW of hydropower by 2035, which will then make the country Africa’s largest power exporter.

There are fears that the scarcity of water which could result from the damming will result in conflict.

The UK’s secretary of state for energy and climate change, Ed Davey, told a conference in March that "countries have not tended to go to war over water, but I have a fear for the world that climate instability drives political instability [...] The pressure of that makes conflict more likely."
 
(ST)

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  • 9 December 2012 06:58, by Jalaby

    South Sudan is unqualified to join such a project and its appeal to join East African Community (EAC) has been rejected (this is like a big slap on the face) due to high profile of corruption, cattle raiding,high profile of tribalism and discrimination that based on ethnicity and last but not least,killing innocent journalists and terrorizing them to keep them silent!

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    • 9 December 2012 07:04, by Jalaby

      I believe the real reason behind rejecting south appeal to join (EAC) countries because these countries (EAC) do not want to have thieves and gangsters who kill journalists during the daylight with cold blood among them, also the harassment that they’re creating to Sudan, supporting the rebels and offering them a safe haven, invading Sudan land (Heglig) and claiming

      repondre message

      • 9 December 2012 07:09, by Jalaby

        ownership of that land just overnight and contradict all the international laws and face the real threat from UNSC to put sanction on them while they ’re still child country with no teeth in their mouth yet! you see how devils are those people? where in the world that a country didn’t complete one year since its independence and faces threat of sanction from UNSC?!

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        • 9 December 2012 07:14, by Jalaby

          (EAC) countries have rejected South Sudan appeal to join them because they consider south Sudan as the rotted onion which will make the whole onions in the basket as bad as ugly rot if allowed to participate with them!

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        • 9 December 2012 10:42, by Tutbol

          The likes of Mr. Jallaby are still bitter for the lost of their cash cow, S Sudan. They would stop at nothing less but to throw every bad adjectives they have to tarnish S Sudanese, hoping they may get their cash cow back. Forget about it people, that won’t happen. They made S Sudan the poorest country on earth, but blamed S Sudanese for being poor. Arabs don’t have brains, but only hogs brains!

          repondre message

          • 9 December 2012 10:56, by Jalaby

            Totbol,
            Stop burying your head in the sand like Ostrich!
            We never ever feel sorry for letting the south go because the south was never a positive figure in our national income and economy until very recently and after we discovered the oil, the war destroyed our economy and our human resources that we consider as priceless and the south

            repondre message

            • 9 December 2012 11:01, by Jalaby

              should go with no regret even if it’s a paradise!
              We never made the south poor but the opposite is correct we let the south go with its all oil, we gave the south with its 350k barrel per day to SPLM/A and the south should be the richer country in Africa but look at the south now after the separation with its oil? full of corruption, thieves, hatred among tribes,

              repondre message

              • 9 December 2012 11:06, by Jalaby

                conflict, war, famine, disease and outlaw state!
                Despite we let the south go with its oil that we discovered and managed to drilled it out and export it but the south never want to leave us alone but working day and night to destroy Sudan, offering safe haven to any group regardless whether they agree with them or not as long as their goal to destroy Sudan,

                repondre message

                • 9 December 2012 11:16, by Jalaby

                  invading our land and revoked your recognition to the international border between our countries that you recognized before during CPA and after u got your separation you evaded it!shame on u
                  Just tell me why SPLM/A still calling themselves SPLA? they want to liberate Sudan from whom? why you put your nose in Sudan issues after u decided to separate in the first place

                  repondre message

    • 9 December 2012 10:07, by South South

      Oh my God !!!! This Sub-human called Jalay is not a human being. Look what he wrote. The title of the article to be discussed is "AFDB Approves new funds for Ethiopia-Kenya power project" But look, he is talking about South Sudan been rejected by EAC. Oh my God !!!! He has unstable mind,Stupid, crazy and very siple minded.

      repondre message

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