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African Development Bank Approves USD 104 Million to Boost Ethiopia’s Power Sector

Electric Lines 2

The Board of Directors of the African Development Bank Group has granted approval for a transmission project in Eastern Ethiopia, securing a financing of USD 104 million. This project, funded by the African Development Fund and Korea's Economic Development Cooperation Fund, aims to benefit various communities, including small farmers, livestock farmers, manufacturers, and students.

The project entails the construction of 157 kilometers of 400kv double-circuit transmission lines and the establishment of associated substations at Harar, Jigjiga, and Fafem. It not only serves as a foundation for future power interconnection with Somalia but also contributes to the Horn of Africa Regional Initiative. This initiative aims to tackle issues of fragility and conflict, facilitate regional economic integration and trade, and foster development in the Horn of Africa region.

Accordingly, the funding will play a crucial role in enhancing the power grid infrastructure in eastern Ethiopia. By increasing the capacity to transmit electricity, the project will mitigate issues such as brownouts and load shedding. Furthermore, it will extend the reach of the power grid, connecting more industries and households and eliminating the reliance on diesel generators. The project will support the implementation of the government's regional agricultural irrigation program. This program is vital for addressing food insecurity and providing fodder for livestock.

In March this year, Ethiopian Electric Utility (EEU) announced its plans to increase its customers to 7.5 million in 2030. The company is working to expand its supply coverage and provide electric supply across the entire country by 2030. In order to achieve this plan, EEU aims to modernize its infrastructure, provide customer-oriented services, and build a reliable financial capacity.

Ethiopia’s capacity to generate hydro electric power has increased from 850 MW to 4300 MW during the past 10 years. It is expected that the country’s power generating capacity will reach 17 thousand MW once the Grand Ethiopian Renaissance Dam and other hydro-electric dam projects are completed.

Source: Ethiopian News Agency

Additional source: 2Merkato Archives