VENTURES AFRICA – The World Bank has announced the approval of $684 million for Ethiopia and Kenya as loan to finance the first phase of a $1.3 billion project to develop a regional power grid in East Africa.
In a statement made available to Reuters on Thursday, the World Bank said the loan will be used to set up a cross-border power line.
According to to reports, $243 million was approved for Ethiopia while Kenya got $441 million. This will allow Ethiopia to sell surplus power needed in Kenya, which is currently experiencing severe power shortages as its economy blossoms from new oil and gas discoveries.
Power will be gotten from existing and future power plants in Ethiopia, the World Bank said in the statement.
“It will expand access and lower the cost of electricity supply to homes and businesses across Kenya and help to reduce thermal power emissions in Kenya, a clear benefit to the region’s environment,” said Makhtar Diop, World Bank vice president for Africa.
According to the World Bank, additional revenue will accrue to Ethiopia from the sale of electricity to Kenya, and both countries will create jobs from the construction and installation of the power lines.