Multinational - Power Interconnection Project

The Ethiopia-Djibouti Power Interconnection Project (component of Ethiopia) deals with the interconnection of electricity grids between Ethiopia and Djibouti with the aim of making possible power trade between the two countries and allow the sharing of cheap hydropower resources of Ethiopia. As such, the project should help reduce the cost of energy and contribute to poverty reduction by encouraging industrial and commercial development that should create jobs in both countries. The project would (i) immediately provide clean, cheap and reliable energy to the population of twelve (12) towns in Ethiopia and 36-72 percent of yearly energy supply to Djibouti during its life and (ii) enable further electrification of the surrounding areas at little incremental cost, thus improving the quality of life of the population and advancing socio-economic development. It should also develop human capacity and improve financial management and control systems to contribute to the efficient and sustained operations of power utilities in Djibouti and Ethiopia. The project comprises the following components: (A) Development of Power Transmission Network (construction of transmission lines and substations); (B) Electrification of Border Towns; (C) Project Supervision and Management; and (D) Institutional Support to EdD (Electricité de Djibouti) and Ethiopian Electric Power Corporation (EEPCO).