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AfDB approves $83.6mn grant for
Ethiopia-Djibouti power link
ETHIOPIA THE African Development Bank (AfDB) has for Djibouti,” said Mr. Batchi Baldeh, the Bank’s
approved two grants worth $83.6mn to boost director of power systems development.
cross-border trade in electricity between Ethio- Project completion is anticipated to increase
pia and Djibouti and to deepen integration in the Ethiopia’s power export revenue while also
Horn of Africa sub-region. boosting Djibouti’s access to reliable and afforda-
The funds comprise a $69.65mn grant to ble clean electricity, lowering costs to below
Ethiopia and a second grant of $13.93mn to Dji- $0.10 per kWh. Other expected impacts in Dji-
bouti, both sourced from the African Develop- bouti include a more conducive environment for
ment Fund, the AfDB’s concessional financing businesses and job creation for youth, as well as
window. lower greenhouse gas (GHG) emissions.
The Ethiopia-Djibouti Second Power Inter- In 2004, the bank financed the first power
connection project will entail the construction interconnection project between the two coun-
of nearly 300 km of interconnector line, 170 km tries. This second project is expected to build on
of transmission lines, and new construction or benefits achieved over the last 10 years, including
renovation of substations in the two countries. a 65% increase in customer connections in Dji-
“The first interconnection line is reaching its bouti and a sharp reduction in the use of ther-
power transfer capacity limit due to several devel- mal generation plants from 100% to around 16%.
opments in both countries, such as the industrial Ethiopia has earned $275mn in revenue from
development in the eastern part of Ethiopia, the power exports over the same period.
railway line from Djibouti to Ethiopia (pow- The project is aligned with the bank’s East
ered by electricity), and the port expansion in African Regional Integration Strategy Paper,
Djibouti. The two countries have thus decided which seeks to promote regional infrastructure
to develop the second power interconnection for economic transformation.
line to maintain energy security and reliability
HYDRO
AfDB to fund Gabon hydro project with €39mn
GABON THE Board of Directors of the African Devel- “We are delighted to support the first IPP pro-
opment Bank Group (AfDB) has approved a ject in Gabon”, said Mr. Wale Shonibare, Direc-
€39mn loan package for the construction of the tor of the Energy Financial Solutions, Policy and
Kinguélé Aval hydroelectric project in Gabon. Regulation Department at the African Develop-
The package comprises €20mn from the Afri- ment Bank.
can Development Bank, €10mn from the Africa “Kinguélé Aval is a showcase project, and the
Growing Together Fund and €9mn in conces- success of the model provides a useful template
sional financing from the Sustainable Energy for future projects that will help move the coun-
Fund for Africa, a special multi-donor fund try closer towards achieving the government’s
managed by the African Development Bank. 100% clean energy target.”
Additional financing to meet the project’s “Kinguélé Aval epitomizes the catalytic effect
€133.8mn budget will come from the Interna- of SEFA and co-financing from the likes of the
tional Finance Corporation of the World Bank Africa Growing Together Fund that the Africa
Group, the Canada-IFC Program for Renewa- Development Bank brings forth to support
ble Energy in Africa, the Development Bank of developers deliver sustainable renewable pro-
Southern Africa and the Emerging Africa Infra- jects that aid Africa’s energy transition”, said Dr
structure Development Fund. Kevin Kariuki, Vice-President of Power, Energy,
The loan funds will be disbursed to Asonha Climate and Green Growth at the African Devel-
Énergie S.A., a company created to manage the opment Bank.
project. The project entails the design, construc- The project aligns with the “Emerging
tion, and operation of a 34.1-megawatt power Gabon” Strategic Plan and the country’s com-
plant with a net annual generation of 203-giga- mitment to address climate change under the
watt hours. The Kinguélé Aval dam will be built Paris Agreement nationally determined contri-
on the Mbei River, 90 km east of Gabon’s capital, butions framework. The project is also consist-
Libreville, downstream from the Tchimbélé (69 ent with the African Development Bank’s New
MW) and Kinguélé Amont (58 MW) hydroelec- Deal on Energy for Africa and the “Light up and
tric plants. Power Africa ” High-5 strategic priority.
P4 www. NEWSBASE .com Week 28 15•July•2021
