Contacts
In Washington: Timothy Carrrington (202) 473 8133
tcarrington@worldbank.org
Christopher Walsh (202) 473 4594
cwalsh@worldbank.org
In Addis Ababa: Gelila Woodeneh (251-1) 17 60 00
gwoodeneh@worldbank.org WASHINGTON, December 20, 2007 – The World Bank's Board of Executive Directors today approved an International Development Association (IDA) credit of US$41.05 million to the Government of Ethiopia to help the country finance its portion of a new transmission line connecting Ethiopia’s to Sudan’s power grids. The Ethiopia-Sudan Interconnector will allow power trading between the two countries, where just 6 and 22 percent of the respective populations have access to electricity, thereby promoting Ethiopia’s power export revenue generation capacity. The transmission line will run between the Ethiopian towns of Bahir-Dar and Metema and up to the border with Sudan to connect the countries’ grids. The project will also enable Sudan to replace domestic thermal generation with surplus hydropower from Ethiopia, reducing Sudan’s greenhouse gas emissions. This will enable the two countries to better integrate their reserve capacity, thus improving reliability on the interconnected system, and ultimately providing savings on capital and operating costs. By building transmission lines, the project will improve the reliability and security of supply in Ethiopia and Sudan. This increased access to electricity is part of both countries’ poverty reduction strategies and will realize benefits such as lighting of schools and homes, improved access to social services, and greater opportunities for business development. The Project is also being implemented in accordance with World Bank environmental and social standards. “This project is the first power connection within the framework of the Nile Basin Initiative and is an important step in contributing to cross-border trade and regional interconnection as part of a growing power trade agenda in the region,” said Philippe Benoit, World Bank Task Team Leader for the Project. The Nile Basin Initiative (NBI), a partnership of the riparian states of the Nile, is providing a framework for promoting cross-border investments that are designed to generate benefits both at the country and regional levels. Although the power systems are largely undeveloped in the region, there are extensive, untapped sources for power generation as well as a desire to improve access to electricity for both domestic and industrial/commercial consumers. “The Ethiopia-Sudan Transmission Interconnection Project is one of the first tangible investments from the NBI, and is an important step in converting the collaborative intentions of the countries into physical investments and benefits”, said Ashok Subramanian, Manager Africa Water Resources Group. “Over the long term, we expect that this project will improve the effectiveness of the power systems of the Nile Basin countries and beyond, by promoting regional power trade through the establishment of coordinated planning and the erection of transmission interconnections.” The project represents an important step in a broader power trade agenda for the region, where interconnections with Djibouti, Kenya, Tanzania, Southern Sudan, Somalia, and Yemen are being planned. The project also will invest in Institutional Strengthening and Capacity Building to improve the skills of electricity company staff in Ethiopia in implementing and operating the transmission line, thereby supporting Ethiopia’s ability to participate intensively in the development of a broader regional power market. ### For more information on the World Bank’s work in sub-Saharan Africa, visit www.worldbank.org/africa For more information on the International Development Association, visit www.worldbank.org/ida For more information on the Bank’s work in Ethiopia, please visit www.worldbank.org/et For more information on the Bank’s work in Sudan, please visit www.worldbank.org/sudan For more information on the NBI, please visit www.nilebasin.org |
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