Ethiopia and Djibouti are getting two grant loans from AfDB worth over $83mil to build the second power transmission line.

July 22, 2021

After seeing the benefits of the first project that connected their power grids, Djibouti and Ethiopia have acquired funding to establish a second electricity transmission line. Djibouti was able to import Ethiopia’s hydropower-processed, renewable, and affordable electricity through the first project. The African Development Bank (AfDB) has granted two grant loans totaling $83.6 million, allowing Ethiopia and Djibouti to move forward with the construction of their second power transmission line, which would directly influence their energy trade. According to a statement released by the bank, the funds were approved by the African Development Bank Group’s Board of Directors in order to promote cross-border electricity commerce between Ethiopia and Djibouti. The grants will also help to strengthen the economic integration in the Horn of Africa. The funds come from the African Development Fund, the African Development Bank’s concessional financing window, and include a $69.65 million grant to Ethiopia and a $13.93 million award to Djibouti. The EastAfrican has discovered that the latest loans would be utilized for the second Ethio-Djibouti power transmission line project, which will be given on a long-term credit framework. According to the bank, the Ethiopia-Djibouti Second Power Interconnection project will require the construction of almost 300 kilometers of interconnector lines, 170 kilometers of transmission lines, and new or renovated substations in both countries. “Due to several developments in both countries, such as industrial development in the eastern part of Ethiopia, the railway line from Djibouti to Ethiopia (powered by electricity), and the port expansion in Djibouti, the first interconnection line is reaching its power transfer capacity limit,” said Batchi Baldeh, the Bank’s Director of Power Systems Development. “As a result, the two countries have resolved to build the second power interconnection line to ensure Djibouti’s energy security and reliability,” Mr. Baldeh added.

You May Also Like…

[et_pb_blog_extras posts_number=”6″ show_more=”off” show_author=”off” show_categories=”off” show_comments=”off” _builder_version=”4.14.2″ _module_preset=”default” header_level=”h3″ header_font=”Averta Black||||||||” global_colors_info=”{}”][/et_pb_blog_extras]