AfDB: More than USD 1 Billion in Energy Projects to Support Africa’s Development
TUNIS, Tunisia, December 21, 2010/African Press Organization (APO)/ – In line with the top priority it puts on energy for Africa’s development, the African Development Bank (AfDB) Group has approved, during the last few weeks of 2010, energy projects representing investments of over USD 1 billion.
These projects, located in Egypt, DRC, Ethiopia, Kenya and Tanzania, are:
-A loan of USD 550 million to finance the Suez steam cycle thermal power plant project, in Egypt. The purpose of the Suez Power Plant Project is to increase the power generation capacity in Egypt leading to the enhancement of socio-economic development. It involves the construction of a 650 megawatt (MW) steam cycle power plant at a site located in the vicinity of Suez city, approximately 150 km east of Cairo. Power will be evacuated from the plant through a 220 kV network by rehabilitating the existing double circuit over-head transmission line and implementing two additional underground cables. The power generated will be used for industrial and commercial activities countrywide thus contributing to job creation, increase in productivity, electricity connection rates and improvement in the quality of life. Other direct project beneficiaries include the people living around the project site who will benefit from employment during project implementation and operation. This project was approved by the AfDB Board on 15 December 2010.
-A Units of Accounts (UA) 9.69 million grant, equivalent to USD 14.8 million, and a Fragile States Facility UA 60 million (equivalent to USD 91.8 million) grant for the rural and peri-urban electrification project, in the Democratic Republic of Congo (DRC). It is an investment project concerning the rehabilitation and extension of the electric power distribution system of Kinshasa and selected localities in four provinces of the DRC. It comprises the improvement, rehabilitation and extension of the medium and low voltage lines, establishment of connections, installations of public lighting units and promotion of specific commercial operations to increase the number of new subscribers and reach the maximum number of inhabitants, especially the most disadvantaged segments of the population. All these operations will contribute to increasing available energy, improving network operating conditions and enhancing the operational performance of sector players. They will also help reduce technical and non-technical losses, in particular through the installation of prepayment meters. This project was approved on 15 December 2010.
-A loan of UA 93.75 million (USD 143.44 million) and a grant of UA 58 million (USD 88.75 million) to finance the electricity transmission system improvement project, in Ethiopia. The project consists of construction, on a turnkey basis, of four 230 kV transmission lines and related substations. The lines and substations to be constructed are as follows: (i) 352 km of 230 kV Koka- Hurso transmission line; (ii) 315 km of 230 kV Alaba-Hossana-Wolkite, Gilgel-Gibe I –Jimma-Agaro-Bedele transmission line; (iii) 141km of 230 kV Alamata-Muhoni-Mekele line; (iv) 140 km of 230 kV Metu – Gambela line; and construction of associated eight new substations, the extension of seven substations, and the upgrading of four major substations around Addis Ababa and Debre Markos. This project was approved on 6 December 2010.
-A loan of UA 46.70 million (equivalent to USD 71.45 million) for a power transmission system improvement project, in Kenya. The project consists of construction of a total of 431 km of 132 kV lines, the extension of six substation bays and construction of eight new 132/33 kV substations. The project will result in increased and reliable power supply in the western and eastern part of Kenya and thereby contribute towards increasing the number of new connections by 200,000 annually and the increase in rural electricity penetration from the current 20% to 40% by 2020. The project was approved on 6 December 2010.
-A loan of UA 45.36 million (equivalent to USD 69.4 million) to finance the Iringa-Shinyanga transmission line project, in Tanzania. The planned line is a 400 kV line and will have a length of approximately 670 km. It will interconnect four substations at the Iringa, Dodoma, Singida and Shinyanga towns. The project was approved on 26 October 2010.
1 Unit of Account (UA) = USD 1.53 (December 2010)
SOURCE
African Development Bank (AfDB)
