Global oil cartel, Organisation of Petroleum Exporting Countries (OPEC), has advanced Sh1.3 billion loan for construction of power transmission to connect Garrisa town with Kindaruma power plant.

Energy permanent secretary Patrick Nyoike said the project will start in the first quarter of next year. The OPEC Fund loan will be used to finance connection of an additional 300,000 consumers to the national grid.

"The main objective of this programme is to provide rural population with access to reliable and offordable electricity energy," said grid the minister for finance Njeru Githae.

The loan will be repaid at 1.75 per cent interest per annum over the next 20 years, but it comes with a one per cent service charge and a grace period of five years.

Lat year the Treasury signed an agreement with the World Bank's soft-lending arm, the International Development Association to fund a multiple project power grid expansion including the Garissa to be implemented by Kenya Electricity Expansion Program.

The Garrissa link from Kindaruma, through Mwingi is expected to cost Sh1.3 billion along with substations.