Power link to boost electricity supply

Ethiopia and Djibouti are to link up their power generation in a bid to boost electricity access in both countries using loans worth US $32 million and $27 million respectively, the African Development Fund (ADF) said on Monday.

"The common sector goal is to improve the population's access to electricity in Ethiopia and Djibouti through regional cooperation in the energy sector," the fund said.

Only 13 percent of the population in Ethiopia has access to electricity but that would rise to 20 percent by 2012. In Djibouti 49 percent of people have access to electricity, which would increase to 60 percent by 2015.

The project includes development of power transmission network, electricity supply to border towns, project supervision and management and institutional support.

"The power interconnection permits harmonisation of investment programs between Ethiopia and Djibouti and will provide mutual benefits to these countries," the ADF said. "The project will largely benefit the border towns population."

The fund also announced it would finance a new Mombasa-Nairobi-Addis Ababa road corridor to boost economic integration between eastern Africa and the Horn. "The project road is an important section of the Trans-African highway corridor from Cairo to Cape Town," it said.