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The common sector goal is to improve the population’s access to electricity in Ethiopia and Djibouti through regional cooperation in the energy sector within the context of the New Partnership for Africa’s Development (NEPAD) programme. The indicator for this goal will be the electricity access in Ethiopia increased from 13% in 2003 to 20% by 2012 and electricity access in Djibouti increased from 49.5% in 2003 to 60% by 2015. The specific objective of the project is to establish power trade between Ethiopia and Djibouti and to improve electricity access at affordable prices in the region.
The Ethiopia-Djibouti Power Interconnection Project includes the following components:
Despite Ethiopia’s huge hydroelectric potential, the exploitation rate is only about 2%. Ethiopia’ power system is predominantly hydroelectric based and production cost is low. In the case of Djibouti, the country primarily depends on oil-fired electricity generation. Consequently, the unit cost of power production in Djibouti is significantly higher than in Ethiopia. The integrated power systems development as opposed to Ethiopia and Djibouti pursuing independent system development implies reduced investment outlays for Djibouti and reduced requirement of spinning reserve. The power Interconnection permits harmonisation of investment programs between Ethiopia and Djibouti and will provide mutual benefits to these countries.
The project will primarily benefit women from the provision of electricity, as it will free up some of their time for productive activities, education and health care. The health and education standards in the towns covered by the project are very basic, they will also directly benefit from the project, particularly in rural areas. The small scale industries in various sectors, such as fishing and plastic-related factories in Djibouti, would rely on the provision of electricity, a catalytic in reducing the production costs and increasing production, to create job opportunities and ensuring sustainable development in the region.
Project Information Sheet