Djibouti and Ethiopia have secured finance worth $83.6 million from the African Development Bank (AfDB) to build a second electricity transmission line.
The Ethiopia-Djibouti Second Power Interconnection project, according to the bank, 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.
“The first interconnection line is reaching its power transfer capacity limit due to several developments in both countries, such as the industrial development in the eastern part of Ethiopia, the railway line from Djibouti to Ethiopia (powered by electricity), and the port expansion in Djibouti,” the Bank’s Director of Power Systems Development, Batchi Baldeh said.
“The two countries have thus decided to develop the second power interconnection line to maintain energy security and reliability for Djibouti,” he added.
A statement from the bank said the loan was issued last week by the Board of Directors in a bid to boost cross-border trade in electricity between Ethiopia and Djibouti and deepen economic integration in the horn of Africa’s region.