This archive report was first published on 19 July 2021.
July 19, 2021
Neighbours Djibouti and Ethiopia are set to take their energy trade to the next level with the construction of a second power transmission line.
The African Development Bank (AfDB) has approved two grant loans worth $83.6 million to enable the two countries to proceed with the construction of their second power transmission line.
The funds, which comprise a $69.65 million grant to Ethiopia and a second grant of $13.93 million to Djibouti, were sourced from the African Development Fund, the African Development Bank's concessional financing window.
The Ethiopia-Djibouti Second Power Interconnection project will entail the construction of nearly 300 km of interconnector line, 170 km of transmission lines, and new construction or renovation of substations in the two countries.
According to Batchi Baldeh, the Bank's Director of Power Systems Development, the first interconnection line is reaching its power transfer capacity limit due to several developments in both countries.
“The two countries have thus decided to develop the second power interconnection line to maintain energy security and reliability for Djibouti,” Mr Baldeh added.
