African Development Bank announces new power funding

• 13 years ago (2010-12-26)
• Junior Isles

Africa 320 Middle East 326 North America 1021

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The African Development Bank (AfDB) has approved over $1 billion to be invested in energy projects in Egypt, DR Congo, Ethiopia, Kenya and Tanzania.

In a statement it said the financing is in line with the top priority the bank puts on energy for Africa’s development.

Egypt will get $550 million to finance the Suez steam cycle thermal power plant project while DR Congo will receive $106.6 million for its rural and peri-urban electrification project. In Ethiopia, nearly $232.2 million will be used to finance the electricity transmission system improvement project. In Kenya and Tanzania, who receive $71.45 million and $69.4 million, respectively, the loan will be for projects to improve power transmission.

AfDB said the purpose of the Suez Power Plant Project is to increase the power generation capacity in Egypt leading to “the enhancement of socio-economic development”. It involves the construction of a 650 MW steam cycle power plant at a site located in the vicinity of Suez city, about 150 km east of Cairo.

The power generated will be used for industrial and commercial activities countrywide thus contributing to job creation, increase in productivity, electricity connection rates and improvement in quality of life.

“Other direct project beneficiaries include the people living around the project site who will benefit from employment during project implementation and operation,” the bank said.