Ethiopia to fund Ethiopia-Djibouti power project

Independent Power Producers have threatened to shut down

Ethiopia signed a 71.3 million U.S. dollars grant agreement to finance the Ethiopia-Djibouti second power interconnection project, the Ethiopia Ministry of Finance (MoF) disclosed on Thursday.

In a press statement, the MoF said the grant will be used to finance the construction of a transmission line from Djibouti to Semera in Ethiopia and between Semera and Kombolcha towns.

The MoF also said the grant will be used to finance the construction of substations in Semera, Mile and Kombolcha towns, all three located in Ethiopia.

Ethiopia already exports 100 Megawatts of energy to Sudan, 70 MW of energy to Djibouti and 10 MW of energy to Kenya.

Ethiopia and Kenya are also building a 1,045 km electricity transmission line that will link grids of the two countries.

Ethiopia’s energy exports are part of a broader plan to economically integrate the East African region including through electricity.

The energy sector is one of Ethiopia’s priorities as the country envisages becoming a light manufacturing hub in Africa and middle-income economy by 2025. Enditem

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