Rural Electrification Project II


  • Reference: P-ET-FA0-006
  • Approval date: 20/12/2006
  • Start date: 29/04/2008
  • Appraisal Date: 15/08/2006
  • Status: OngoingOnGo
  • Location: Amhara and Oromiya States


The project will involve:

(i) the construction of 33 kV Medium voltage lines, distribution transformers, low voltage lines etc to supply electricity to 131 towns surrounding the Sawla and Key Afer regions, and

(ii) Construction of 2,117 km of 33 kV, 1,265.8 km of LV distribution lines with all necessary distribution transformers, MV distribution equipment and LV distribution lines and equipments to supply electricity to 184 towns/villages in Amhara & Oromiya administrative regions.


The objective of the project is to extend the national grid to supply electricity to 335 rural towns and villages and improve the national electricity access rate from 17% to 20% in 2011 in to promote socioeconomic development in the rural areas.


In line with the national energy policy, the Government of Ethiopia has prepared a Universal Electrification Access Programme (UEAP) on a least cost basis for increasing people's access to electricity. UEAP, while broadening the national electricity coverage and increasing people's access to electricity from existing 15% to 50 % in the next 5 years, will underpin the Agriculture Development Led Industrialization Strategy and Poverty Reduction Strategy of the Government. The programme aims at supplying electricity to towns, villages, social service giving centers and irrigation facilities in all Regional States of the country. Its main concept is to provide power from the least cost source while meeting reliability standards to enhance capacity of wealth generation.

Under the UEAP, the Bank is to finance a component which involves extension of the grid to Sawla - Key Afer area in the south of Addis Ababa and to Akista-Alem Ketema area located in Oromiya and Amhara regional states. The component to be financed by ADB consist of two subprojects; namely

(i) the Sawla-Key Afer area electrification project and

(ii) the Akista - Alem Ketema area rural electrification project. The extension of electricity grid to the selected areas has been assessed to be the least cost solution compared to other alternatives such as using diesel generators or other forms of renewable energy.

Furthermore, the Government recognizes the importance of universal access to electricity and the need to develop institutions and methods capable of rapid expansion of services across the country and has therefore included Access to electricity supply among the pillars of the Poverty Reduction Strategy.

The project conforms to the Bank's Vision supporting the extension of grid to rural economic centers with potential of agro-industrial processing, among others. The project is also in conformity with the Bank's Country Strategy and ADF IX guidelines supporting the provision of basic infrastructure services including that of energy supply to rural areas as part of rural infrastructure development. Moreover, the project will help in alleviating the regional imbalance with respect to access to electricity.


It is anticipated that the project will provide benefits to the residents of 131 towns in Sawla-Key Afer and of 184 towns/villages in Akista-Alem Ketema areas through job creation, reduction of environmental degradation due to deforestation, and reduction of migration of people from rural towns to urban areas. It will also encourage the establishment of small and medium scale industries in the project related towns besides helping in the delivery of social services to residents.

Key contacts

ABIYEHOY Girma Mekuria - ONEC2


Finance source Amount
ADFUAC 87,200,000
GovernmentUAC 14,240,000
Co-financierUAC 12,870,000
TotalUAC 114,310,000