Ethiopia-Kenya Power interconnection II

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A $600,000 grant from NEPAD-IPPF in 2008 helped kick-start the development of an ambitious $430 million energy project on the Zambezi
River, some 165 km from Lusaka, Zambia. KfW, the Development Bank of South Africa (DBSA) and the Zambian National Electrical Supply Corp. (ZESCO) also supported project preparation studies. The project was designed to provide more reliable and cost-effective electricity to consumers living in Southern African Power Pool (SAAP) member countries; Botswana, Angola, DRC, Lesotho, Mozambique, Malawi, Namibia, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe.

Project financing

The project has reached the final stage in the IPPF project cycle. The project managed to secure USD 1,260 Million in funding with contributions from AfDB (USD 338 million), World Bank (USD 684 million), Agence Française de Développement (USD 118 million), Government of Kenya (USD 88 million) and Government of Ethiopia (USD 32 million). The ADF is expected to play a crucial role with a proposed loan of UA 150 million to Ethiopia and UA 75 million to Kenya.The construction of the project is underway and the AfDB has approved its share of the financing of the transmission line, thus it is in the implementation phase.

Impact

According to the African Development Bank, the transmission line will see an additional 870,000 households receive power by 2018. By 2022, this figure will grow to 1.4 million households. The commercial sector is also set to benefit by an additional 3,100GWh of power by 2018 and by 2022, this figure will increase to about 5,100GWh.