Friday, July 13, 2012

World Bank approves loans for Power Transmission Line between Ethiopia and Kenya

Power Transmission Line between Ethiopia and Kenya
The World Bank announced on Thursday its approval of loans for Ethiopia and Kenya to finance Eastern Electricity Highway Project, which will connect Ethiopia’s electrical grid with Kenya’s, the first phase of a $1.3 billion project to develop a regional power grid in East Africa.
The World Bank said the financing -- $243 million for Ethiopia and $441 million to Kenya -- will come from the International Development Association.

“This landmark transformational project will change the fundamentals of the power sector in East Africa. It will expand access and lower the cost of electricity supply to homes and businesses across Kenya and help to reduce thermal power emissions in Kenya, a clear benefit to the region’s environment,” said Makhtar Diop, World Bank Vice President for the Africa Region. “Currently, only one in three Africans has access to electricity in their communities so boosting power sharing between countries is an essential step toward addressing Africa’s needs.”

The bank said Ethiopia will benefit through the sale of energy to Kenya and that both countries will benefit from additional jobs created by construction and installation activities.

“The Eastern Electricity Highway Project will make a significant contribution to help meet the development needs of the people of Ethiopia, Kenya and the sub-region” said Jamal Saghir, World Bank Director for Sustainable Development, Africa Region. “Once built, this power line will be a symbol of Africa’s determination to solve its energy crisis through cooperation in energy trade. It will be a landmark in achieving more growth and less poverty in the region.”

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