- Djibouti and Ethiopia set to construct 2nd Transmission line
- Project to be funded by AfDB
- $83.6 million approved for the project
Djibouti and Ethiopia are set to begin the construction of a 2nd transmission line (Ethiopia-Djibouti Second Power Interconnection project) between the two countries following the success of the previous transmission project. . The project, a 300km interconnector line and a 170km transmission line will improve energy trade between the two countries.
The African Development Bank (AfDB) has approved two loan grants worth $83.6 million to fund the 2nd transmission line project between the two countries. The Board of Directors of the African Development Bank Group approved the funds to boost cross-border trade in electricity between Ethiopia and Djibouti. The grants would also deepen economic integration in the Horn of Africa. Ethiopia will receive $69.65 million of the approved loan, and $13.93 million will go to Djibouti.
“The first interconnection line is reaching its power transfer capacity limit due to several developments in both countries, such as the industrial development in the eastern part of Ethiopia, the railway line from Djibouti to Ethiopia (powered by electricity), and the port expansion in Djibouti “, AfDB Director of Power Systems Development, Mr Batchi Baldeh said.