- The AfDB approves $83.6 million funding facility
- To boost cross-border electricity trade between Ethiopia and Djibouti
- Projects include a 300km interconnector line among others
The African Development Bank Group (AfDB) has approved two grants worth $83.6 million to boost cross-border electricity trades between Ethiopia and Djibouti. The facility includes a $69.65 million grant to Ethiopia and a $13.93 million grant to Djibouti. The beneficiary projects include the Ethiopia–Djibouti Second Power Interconnection project, which involves constructing nearly 300 km of interconnector line, 170 km of transmission lines, and new construction or renovation of substations between the two countries.
“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. The two countries have thus decided to develop the second power interconnection line to maintain energy security and reliability for Djibouti”, AfDB’s Director of Power Systems Development, Mr Batchi Baldeha, said.
The project is expected to increase Ethiopia’s power export revenue and boost Djibouti’s access to reliable and affordable clean electricity. In addition, the project is aligned with the Bank’s East African Regional Integration Strategy Paper, which seeks to promote regional infrastructure for economic transformation.