The African Development Bank (AfDB) has approved US $101.46m to finance the rehabilitation of Addis Ababa’s power project. A US $86.26m loan as well as US $15.2m grant from African Development Fund will cover part of the cost for the Addis Ababa Transmission and Distribution System Rehabilitation and Upgrading Project (AATDRUP).
AfDB financed the Addis Ababa Distribution Master Plan Study in 2015, which provides the basis for the three-year AATDRUP. The project involves rehabilitation and construction of 545km of medium voltage lines. There is also replacement and installation of 582 distribution transformers and 13 primary substations and the establishment of supervisory control and data acquisition system for the operation or control.
It also includes upgrading of nine existing high-voltage substations and the construction of 3.8km of 132kV double-circuit overhead line. According to AfDB, the project will support the government of Ethiopia relieve existing or imminent constraints on electricity infrastructure. This, in turn, will enable it to meet growing demand in capital city and environs.
The project goes hand in hand with AfDB Group’s 10-year strategy (2012-2022) and the High 5 priorities, which include lighting up and powering Africa. The bank’s intervention directly correlates with Ethiopia’s long-term development blueprint, Growth and Transformation Plan II (2016-2020). The plan includes energy infrastructure development as the main pillar of nine priority areas.
AfDB said the project will benefit the Ethiopian population with delivery of adequate and reliable electricity supply to meet the rapidly growing demand in the capital. it will also ensure acceptable quality and reliability of electricity supply for housing development. That, as well as new commercial and industrial centres.
In addition to AfDB’s contribution, Japanese International Cooperation Agency and the Ethiopian government will contribute US $90.65m and US $20.59m respectively to finance the project in its totality.