Ethiopian Electric Power has invited bids without prequalification for the construction of a 230kV transmission line as part of the second Ethiopia-Djibouti interconnection project.

The first interconnection project has been operational since 2011, with the power exchange between the two countries increasing from 155GWh to 532GWh in 2020 as a result.

The second interconnection project involves the construction of 292km of 230kV transmission lines from Semera in Ethiopia to Nagad in Djibouti as well as the expansion of substation capacity. About 102km will be installed in Ethiopia and 190km in Djibouti. Each circuit will have a rated power transfer capacity of 160MW. The total project cost is estimated at US$138 million.

The project has been divided into six lots.

The current tender is for lot 2 and entails the design, supply and installation of 170km of 230kV double circuit transmission line between Kombolcha and Semera via Mile. The project duration is 18 months and the deadline for submissions is 22 July. The tender notice can be found here.

Lot 1a entails the construction of 102km of 230kV double circuit transmission line from Semera to Galafi on the Djibouti border.

Lot 1b entails the construction of 190km of 230kV double circuit transmission line from Galafi to Nagad in Djibouti.

Lot 3a comprises the construction of a new substation at Mile and an extension of the existing 230kV substations at Kombolcha and Semera in Ethiopia.

Lot 3b comprises the extension of the 230kV Nagad substation in Djibouti, while lot 3c covers the last mile connection of 10,000 vulnerable households in Djibouti city and the interior of the country.

Some U$89 million of the total project cost relates to transmission lines, while about US$28 million relates to the substations. The scheme will be financed through the African Development Bank’s African Development Fund and the World Bank’s International Development Agency (IDA). In March 2022, the World Bank approved US$55 million of IDA credit to finance the Djibouti section of the interconnection.

The interconnection project aims to increase the power exchange between the two countries to 696GWh and lower the cost of power supply in Djibouti.

According to the project appraisal report from 2021, since the first interconnector was commissioned, industrial and railway line development in Ethiopia has introduced transmission network congestion problems. The second transmission interconnection is needed to overcome these challenges and to meet increasing power demand in Djibouti.

Between 2011 and the end of 2020, Ethiopia earned US$275 million from electricity sales to Djibouti.

The project has experienced delays due to political instability in Ethiopia, but the tender this month shows it is moving forward again.