Despite securing loans from the African Development Bank (AfDB) and the Nile Basin Initiative (NBI), Ethiopia and Kenya have decided to dip into their own pockets to cover the planned $3.5 million power interconnection project. The money will be used to hire a consulting engineer to prepare the bid document for the construction of the power interconnection between the two countries.
The AfDB and NBI were expected to grant $1 million and $2.5 million (Energy Shortage Could Ease if Kenya and Ethiopia Partner), respectively, according the Wondimu Hailemeskel, manager of the Ethio-Kenya Interconnection Project at the Ministry of Mines and Energy (MoME) in an interview with Fortune.
The power interconnection is expected to have a 1,100 km long transmission line of which 400 km will be in Ethiopia while the remainder will cross the border into Kenya. The design of the interconnection project involves extending a line from Gilgel Gibe III to a substation in Wolayta Sodo, and from there to Longonot, Kenya. The transmission line will have two phases: a line from Gibe III through Sodo and Longonot to Isinya and the second from the Gilgel Gibe IV hydropower project to the same destination along the same route.
If successful, Ethiopia will start selling power to Kenya beginning in 2012 with a third of the 1,870 MW of power that will be generated from Gibe III going to Kenya, according to the deal. Ethiopia also plans to sell 200 MW of power to Djibouti and Sudan each when the Tekeze (300 MW), Gilgel Gibe II (420 MW), Beles (460 MW), Fincha (100 MW) and Gilgel Gibe III all start feeding power to the national grid.