Ethiopia secures US$98mn transmission project deal

Oran Viriyincy flickr transmissionEthiopian Electric Power (EEP) has signed a US$98mn deal with the Chinese company, TBEA Contractor Ltd, for a power transmission project in Addis Ababa

TBEA will be responsible for the construction of Bole-Lemi and Kilinto industry zone power transmission project. The project is expected to meet the power demand of the industrial parks, condominium houses, real estates and other structures around Koye Abo, Koye-Fitche, Kilinto and Bole Lemi areas of Addis Ababa.

The agreement includes two packages of substations and the construction of transmission lines. The substation contracts include Koye-Abo (400kV), Qilinto (230kV) and Bole-Lemi (230kV). The transmission line construction contract comprises the design, manufacture, supply, construction and commissioning of 26 km long 400kV and 230kV transmission lines between the three substations.

Exim Bank of China will provide 85 per cent of the project financing through a commercial loan and the balance will be provided by the Ethiopian government.

EEU CEO Gosaye Mengistie Abayneh said, “Once we finish the Ethiopia-Kenya transmission line we can interconnect with Tanzania and beyond, followed by the interconnection with the Southern African power pool. We can also reach northern Africa through Sudan and Egypt."

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