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Kenya enters power deal with Ethiopia

May 18, 2006 - Millicent Awour - Kenya Broadcasting Corporation

The government has signed a power supply agreement with Ethiopia, a move expected to boost supply to the national grid. The signing follows three days of consultations between the two governments. Speaking during the signing ceremony, acting Energy Minister Henry Obwocha said the deal may eventually see a reduction of power prices with the completion of a high voltage transmission line to interconnect the national grids of the two countries. A project implementation team has been set up to ensure timely implementation of the project scheduled to be complete by 2009. The project ,a NEPAD initiative will cost up to 1 billion US dollars and will be co-funded by the African Development Bank and the Bank of South Africa fund. The governments of Kenya and Ethiopia are expected to meet any difference in costs. Kenya currently produces 1100 mega watts of power with requirement surpassing 1500 mega watts leading to constant power outages and rationing.