Of this, some 2.35 billion birr and about 415.66 million birr is in the form of loan and grant, respectively, and will be used to address existing constraints in electric infrastructure and meet the growing demand in the city and its surroundings.
During the signing ceremony, Finance and Economic Cooperation State Minister, Dr. Admasu Nebebe said the project will help to create sufficient and reliable electric power transmission and distribution capacity.
The State Minister added that AfDB, with other partners, has remained engaged in supporting Ethiopia to expand access and reach electricity supply to the society. “The current project we have just signed is a further testimony to the bank’s commitment to continue engaged in the energy agenda of the country”, he noted.
AfDB Representative, Dr. Abdul Kamara said key activities of the project will include rehabilitation and construction, 545kms of medium voltage line replacement, installation of 580 pieces of distribution transformers, and upgrading of existing 9 high voltage sub-stations.
“Through these activities the project seeks to strengthen the electricity supply network of Addis Ababa and its surroundings. In so doing, it will serve a population of 5 million in the capital and its environs”, he added.
In addition, the project will strengthen the capacity of Ethiopia’s power and electric companies.