Multinational - Supplementary Financing for Kenya under the Ethiopia-Kenya Electricity Highway Project

The proposed operation aims to provide a supplementary financing of EURO 26.51million of ADB loan to the Republic of Kenya to finance the funding gap of the Ethiopia-Kenya Electricity Highway project. The supplementary loan for Kenya will contribute to the integration of the ongoing interconnection project and the reliable operation of the Kenyan grid through construction of 400/220 kV Mariakani substation and the 16.5 km length of 132 kV underground cable to interconnect the Nanyuki and Rumuruti substations. The need for additional reinforcement is due to the underestimation made on the feasibility study on power demand growth, increase of electrification rate and generation capacity, which has resulted in cost overrun of the initial project cost estimates. The revised design to reinforce the Kenyan power transmission network without reducing/downsizing the initial scope of the interconnector and the component of system reinforcement is through construction of: the 400/220 kV Mariakani substation to improve the power transfer capacity, adequacy and security to the Coastal Region; and (ii) the 16.5 km, 132 kV underground cable to interconnects the Nanyuki and Rumuruti substations that addresses the safety and security issues of Laikipia Airbase.