The project involves the construction of transmission lines of about 437km in Ethiopia and about 631km in Kenya.
Scope of the project also includes construction of the associated AC/DC converter stations at Wolayta-Sodo, Ethiopia and Suswa, Kenya substations with a transfer capacity of up to 2,000MW in either direction.
The project is funded by a $338m AfDB loan and $684m investment from the World Bank, while Kenya and Ethiopia have also agreed to contribute $88m and $32m, respectively.
AfDB said the French Development Agency has also expressed its interest to invest $118m in the project.
AfDB East Africa Resource Centre (EARC) regional director Gabriel Negatu said the project establishes power trade between Ethiopia and Kenya and the East Africa region.
