African Development Bank Backs $104Mn Power Upgrade in Eastern Ethiopia

Addis Ababa, Ethiopia (15 September 2023)

The African Development Bank Group has given the green light for a transformative $104 million funding package to bolster the power transmission infrastructure in eastern Ethiopia. This project seeks to revamp the region's electricity distribution network, ensuring more reliable power supply and addressing critical challenges. The following are the key highlights of the agreement:

• The initiative involves the establishment of 157 kilometers of 400-kilovolt double-circuit transmission lines and the strategic placement of substations.
• The project will be supported by a $52 million grant from the African Development Fund and a $52 million soft loan from the Korea-Africa Energy Investment Framework.
• It has an overarching mission to eliminate brownouts and load shedding while simultaneously diminishing reliance on diesel generators.
• In addition to its power-related objectives, the project extends its support to the government's agricultural irrigation program, aiming to fortify food security and bolster livestock fodder.
• It offers training opportunities to 200 students, with a commitment to 40% female participation in energy sector courses during construction. These students will have the opportunity to gain practical, hands-on experience during the project's construction phase, as well as access grants to participate in training courses within the energy sector.