The African Development Bank (AfDB) has granted a loan of Euro 26.1 million to construct an underground power transmission line as part of the Ethiopia-Kenya electricity highway. The project aims to boost power supply to Kenya's Laikipia Airbase and surrounding areas.

The 132-kilovolt underground cable network will stretch 16.5 kilometers and connect Nanyuki and Rumuruti substations in Kenya. The substation is targeted to be completed before the end of next year.

The transmission line is part of the Ethiopia-Kenya Power Interconnection project, which is designed to increase electricity imports from Ethiopia to Kenya. The line is also critical to linking the Southern Africa Power Pool and Eastern Africa Power Pool to Egypt and Sudan in the north.

Kenya sought the loan due to underestimations made on the feasibility study on power demand growth, an increase in electrification rate and generation capacity, which resulted in an overrun of the initial project cost estimates.

Kenya started importing power from Ethiopia in November last year after the two countries entered a 3 year power purchase agreement for 25 years. The price of 1KW is agreed to be USD 6.5 cents per hour.

During the first phase of the agreement, Ethiopia will export 65MW of electricity during off-peak hours and 200MW of electricity during peak hours. The second phase of the agreement will see the sale of 150MW of electricity during off-peak hours and 400MW during peak hours while in the third phase of the agreement, 400MW of electricity will be exported to Kenya at all hours.

Source: Fana BC and 2Merkato Archives