Kenya’s plans to buy electricity from Ethiopia have reached a critical stage, with the expected signing of a $231 million (Sh23.6 billion) agreement to start construction of transmission infrastructure.
The Kenya Transmission Company (Ketraco) will tomorrow ink a deal with the African Development Bank (AfDB), World Bank and French Development Agency (AFD), who will finance the project. A consortium of Siemens AG (Germany) and IsoluxIngeniera SA (Spain) will be the contractors.
In 2011, Kenya, through electricity distributor Kenya Power, reached a deal with Ethiopia’s Electric Power Company (EEP) to import 400 megawatts of electricity to boost local capacity, which is below demand at just 2,298 MW. However, the absence of carrier infrastructure has delayed the implementation of this agreement.