AfDB and Kenya Sign Multi-Million Dollar Loan Agreement to Finance Hydroelectric Power Projet
The first loan totaling US $115 million will finance the construction of the
multinational electricity highway between Ethiopia and Kenya, consisting of
about 1,068 km of high voltage direct current (HVDC) 500 kV transmission
line and associated AC/DC converter stations at Wolayta-Sodo (Ethiopia) and
Suswa (Kenya) substations, with a power transfer capacity of up to 2,000 MW.
The project will be commissioned in November 2017.
The second loan of US $43 million will go towards improving the quality and
relevance in engineering faculties in line with Kenya's Vision 2030
priorities for science, technology and innovation (STI) and human resource
aspirations of the East African Community (EAC) integration. The project
aims to contribute to an increase in qualified and skilled engineers from
6,350 in 2012 to almost 12,000 by 2017 to drive the key sectors of Vision
2030. The project will target six university constituent colleges and two
universities whose core mandate is STI in line with the Kenya Engineering
Registration Board (KERB) recommendations.
The loan agreements were signed by Gabriel Negatu, AfDB's East Africa
Regional Director, and Kenya’s Finance Minister Robinson Githae.
Speaking shortly after the signing ceremony, Negatu said, "Following the
successful completion of the Thika Super Highway last month, the AfDB is
today embarking on another highway " an Energy Super Highway that will
facilitate energy trading within the East Africa region. It is also the
first step to enabling affordable energy from the region to be traded
through the East Africa Power Pool, as far North as Egypt and as far South
as SADC [Southern African Development Community] countries, by connecting
with the Southern Africa Power Pool.
He reiterated the Bank's commitment to working with the Kenyan government to
enable it to deliver and make an impact on its development activities for
the well-being of the Kenyan people.
On the other hand, Githae praised the AfDB's contribution towards the
country's development agenda.
"Our partnership with the AfDB is growing every year, particularly in
financing key development projects especially in infrastructure, which is a
critical sector to the achievement of our Vision 2030," he said.
ADF LOAN OF US $115 MILLION TO FINANCE ETHIOPIA-KENYA ELECTRICITY HIGHWAY
PROJECT
The hydroelectric power project will ultimately promote power trade and
regional integration, contribute to the Eastern Africa Power Pool (EAPP)
countries' social and economic development, and reduce poverty in those
countries.
"This project will facilitate export of surplus power from Ethiopia to Kenya
and therefore increase power supply in the country," Githae said.
The demand for electricity in East Africa has steadily risen relative to
supply, leading to occasional severe power shortages. To alleviate this
situation, East African countries must resort to exorbitantly expensive
power from emergency generators. However, the region is blessed with a great
variety of natural resources, in particular hydropower, mainly concentrated
in Ethiopia. The integration of the power systems of the EAPP will enable
the development of Ethiopia's large hydropower resources to enable export
and address power shortages throughout the region. The project will position
Ethiopia as the main powerhouse and Kenya as the main hub for power trade in
the East African region. It will promote power and economic trading as well
as regional integration, and will complement some ongoing Bank-financed
projects, such as the regional Interconnection of Electric Grids of the Nile
Equatorial Lakes Countries, which aims to connect five East African
countries: Kenya, Uganda, Rwanda, Burundi and the Democratic Republic of
Congo.
ADF LOAN OF US $43 MILLION TO SUPPORT ENHANCEMENT OF QUALITY AND RELEVANCE
IN HIGHER EDUCATION, SCIENCE AND TECHNOLOGY PROJECT
The project aims to contribute to an increase in qualified and skilled
engineers from 6,350 in 2012 to almost 12,000 by 2017 to drive the key
sectors of Vision 2030. The project will target six university constituent
colleges and two universities whose core mandate is STI in line with the
Kenya Engineering Registration Board (KERB) recommendations.
The project will also contribute to increasing the number of qualified
personnel, including women, in engineering and applied sciences through
training at the master's and Ph.D. level.
"It is estimated that Kenya currently has a skills gap of about 30 million
engineers, 90,000 electricians and 400,000 artisans, which could hamper the
country's medium- and long-term economic growth prospects and undermine
Kenya's strategic position as the region's economic power,"said Negatu.
Furthermore, the Wangari Maathai Institute for Peace and Environmental
Studies (WMI) will be upgraded to improve the quality of applied knowledge
and skills in environmental and natural resource management. It will be
implemented within a period of five years, from 2013 to 2017