The World Bank and African Development Bank will provide 80 percent of the funds needed for a USD 1.26 billion transmission line that will take power to Kenya from Ethiopia.

The World Bank will lend the countries USD 684 million for the 1,070 KM transmission line running from Wolayta-Sodo in Ethiopia to Suswa, 100 KM Kenyan, African Development Bank Regional Director Gabriel Negatu told reporters. The African Development Bank is lending USD 338 million, he said.

“The interconnection with Ethiopia will ensure access to reliable and affordable energy to around 870,000 households by 2018,” Negatu said.

Ethiopia, according to the World Bank has the highest hydro-power potential in Africa after the Democratic Republic of Congo, hopes to finish the self-funded $5 billion Nile dam in 2018, which will be the continent's biggest power plant.

The transmission line will have capacity to carry 2,000 MW, from Ethiopian hydroelectric plants, Negatu said.

Agence Francaise de Development, the French agency that provides financing to emerging-market countries, will make USD 118 million available for the project, while Kenya will contribute USD 88 million and Ethiopia USD 32 million, According to Negatu.

Source: Bloomberg