- AfDB and the Korea Economic Development Cooperation Fund plan to fund the transmission project with a $52 million grant and a soft loan of $52 million, respectively.
- A new initiative would support the government’s agricultural irrigation program in the eastern part of the country, focusing on 462,174 hectares of land.
The Board of Directors of the African Development Bank Group (AfDB) has approved a $104 million funding package to support a transmission project in eastern Ethiopia. The project aims to transform the region’s power supply infrastructure and enhance the efficiency of the power distribution network.
The project would include the construction of 157 kilometres of 400-kilovolt double-circuit transmission lines, along with strategically located substations in Harar, Jijiga, and Fafem. AfDB plans to fund the project with a $52 million grant. In addition, the Korea-Africa Energy Investment Framework Agreement’s Korea Economic Development Cooperation Fund would provide a soft loan of $52 million.
The Director of Power Systems Development, AfDB, Batchi Baldeh, stressed the importance of improving the power grid to address brownouts and load-shedding issues in the eastern region. According to him, the project aims to connect various industries and households to the electricity network and eliminate the reliance on diesel generators as the primary power source.
In addition to the power transmission project, a new initiative would support the government’s agricultural irrigation program in the eastern part of the country, focusing on 462,174 hectares of land. This program aims to address the food-security challenge faced by the region and ensure sufficient fodder for livestock.
The project includes an educational component, providing opportunities to 200 students committed to including at least 40 per cent of girls. These students would receive hands-on learning and experience during the construction phase and grants to attend training courses in the energy sector.
This funding announcement comes one month after the AfDB Group granted Ethiopia $84.3 million for its wheat production initiative. Ethiopia aims to achieve self-sufficiency in wheat production and become a net exporter by 2025/26, aiming to produce an additional 4.2 million metric tons of irrigated wheat.