Kenya strikes infrastructure deal with Ethiopia

21 March 2012

Government officials in Kenya and Ethiopia have struck a deal that is expected to stimulate and simplify trade in electricity between the two countries as well as the rest of the region, Business Daily Africa has reported.

Under the terms of the agreement, as much as Sh54 billion ($666 million) is to be spent on developing a transmission line that will improve the infrastructure.

Inhibitive energy costs have previously been cited as one of the key obstacles in the way of stronger business links between the two countries.

It has been revealed that the signing ceremony for the project is to be held at Suswa in the Rift Valley, which is where a base station will be built.

"The power line will go up to Sodo in Ethiopia," Jeff Otieno, Kenya Electricity Transmission Company communications manager, explained.

It has been confirmed that the project will be funded by three main agencies - the International Development Association, African Development Bank and the French Development Agency - as well as the Kenyan government.

Category: General