Saturday, July 14, 2012

World Bank gives $684m for Kenya-Ethiopia project

(Saturday, July 14, The East African)--The World Bank has approved funding — $243 million for Ethiopia and $441 million for Kenya — for the power interconnection line between the two countries, bringing the $1.3 billion power plan closer to reality.

The Eastern Electricity Highway Project is expected to result in reduced energy costs, and promote renewable power generation. Kenya is seeking to buy 400 Megawatts from Ethiopia to forestall any severe power shortage because of its growing economy that has increased demand for industrial, small enterprises and domestic connections.

The two countries have already signed Power Purchase Agreements. Kenya currently faces shortage of at least 70MW every day, against peak demand of 1,200MW according to Kenya Power.

The power project will enable Ethiopia to sell its surplus power to Kenya but when required, the flow of electricity can be reversed and Kenya would thus use the same interconnection facilities to sell electricity to Ethiopia. Read more from The East African »

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