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…

Ethiopia National Team Secures a Spot in CHAN 2023

Ethiopia National Team Secures a Spot in CHAN 2023

Ethiopia's national team secures a place in the 2023 African Cup of Nations (CHAN), which will be held in Algeria. The Ethiopian national team, coached by Wubetu Abate, played their first double-leg game with Rwanda in Tanzania after CAF excluded Bahir Dar stadium...

Bego Sew Award announces its 2022 winners

Bego Sew Award announces its 2022 winners

The Bego Sew Award has been recognizing and honoring individuals in many categories for the past ten years, founded to honor individuals who are making a difference in Ethiopia. The 2022 award announced nine winners in different categories and a special award. The...

Forbes Africa lists Africa’s top 20 musicians

Forbes Africa lists Africa’s top 20 musicians

Forbes Africa lists Africa's top 20 musicians of 2022 for their record-breaking contribution to the entertainment industry. Forbes Africa recognizes the shift in the music industry that African artists are bringing to the table. The world's highest stream of African...

CBE Launches “Nedaj” a Fuel Payment Mobile App

CBE Launches “Nedaj” a Fuel Payment Mobile App

The application, "Nedaj," officially launched on August 18, 2022, after Dahlak Yigezu, Deputy Manager of the CBE's Digital Banking Department, signed an agreement to implement it with Besufeqad Getachew, founder, and CEO of EagleLion Systems Technology Company. The...

Ethiopia plans to host its first-ever African Tech Expo

Ethiopia plans to host its first-ever African Tech Expo

Ethiopia plans to host its first-ever African Tech Expo from September 7-9, 2022, at the renowned Skylight Hotel, organized by Jorka Events Communication. The exhibition focuses on solar technology, electric vehicles, digital payment systems, telecommunications, and...