(Ecofin Agency) - In partnership with Chinese firm TBEA Contractor Ltd, Ethiopian Electric Power (EPP) signed a $98 million funding agreement to develop an electric transmission project. 85% of the funds were mobilized from Exim Bank of China as part of a commercial loan. Remainder will be provided by Ethiopian government.

The transmission line will be laid by TBEA in the Bole Lemi and Kilinto industrial zones. The project includes, besides transmission lines, two sub-stations.

It will help meet power demand of industrial parks, residential buildings, as well as that of other power users in Koye Abo, Koye-Fitche, Kilinto and Bole Lemi.

In the long run, Ethiopia plans to interconnect with all African nations. In an interview with East African Business Week, CEO of Ethiopian Electric Utility, Gosaye Mengistie Abayneh said: “Once we finish the Ethiopia-Kenya Transmission line, we can interconnect with Tanzania and beyond, followed by the interconnection with the Southern African Power Pool. We can also reach northern Africa through Sudan and Egypt”

Gwladys Johnson