The African Development Bank (AfDB) has approved $101.46 million to finance the rehabilitation of Addis Ababa's power infrastructure.
A $86.26 million loan and $15.2 million grant from African Development Fund concession window will cover a part of cost of the Addis Ababa Transmission and Distribution System Rehabilitation and Upgrading Project (AATDRUP).
AfDB financed the Addis Ababa Distribution Master Plan Study in 2015, which provides the basis for the three-year AATDRUP.
The project involves rehabilitation and construction of 545 kilometres of medium voltage lines, replacement and installation of 582 distribution transformers, 13 primary substations, and establishment of supervisory control and data acquisition system for the operation or control.
It also includes upgrading of nine existing high-voltage substations and the construction of 3.8 kilometres of 132kV double-circuit overhead line.
"The project will support the government of Ethiopia to relieve existing or imminent constraints on electricity infrastructure to enable it to meet growing demand in capital city and environs," said AfDB.
The project is aligned with AfDB Group's 10-year strategy (2012-2022) and the High 5 priorities, which include lighting up and powering Africa.
The bank's intervention is aligned with Ethiopia's long-term development blueprint, Growth and Transformational Plan II (2016-2020) which includes energy infrastructure development as main pillar of nine priority areas.
AfDB said the project will benefit the Ethiopian population with delivery of adequate and reliable electricity supply to meet the rapidly growing demand in the capital.
"It will ensure acceptable quality and reliability of electricity supply for housing development, new commercial and industrial centres, the new light rail system and development of small and medium businesses," said AfDB.
In addition to AfDB's contribution, Japanese International Cooperation Agency and Ethiopian government will contribute $90.65 million and $20.59 million respectively to finance total project cost, set at $209 million.