African Development Bank approves $104 million grant for Ethiopia

The African Development Bank has announced that it has approved a $104 million fund to help improve the energy supply in Eastern Ethiopia.

The financial support approved by the bank’s board of directors was $52 million from the African Development Fund.

The rest of the funding came from the Korea Economic Development Cooperation Fund, the bank’s lending partner under the Korea-Africa Energy Investment Framework Agreement.

Bachi Baldeh, the Bank’s Power System Development Director said that the project will increase the capacity of the energy buffer in Eastern Ethiopia and increase the supply of renewable and reliable electricity.

The government’s energy supply efforts in Eastern Ethiopia will benefit pastoralists, farmers with small fields and other sections of society.

The project includes the construction of 157 km long 400 KV dual power transmission lines and associated substations in Harar, Jigjiga and Fafem zonal areas.

When the construction is completed, it is expected to increase the power transmission capacity in the eastern part of Ethiopia.

The project will serve as a starting point for creating an energy connection with Somalia and will contribute to the economic integration of the Horn of Africa region and facilitate trade.


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