In September 2012, the bank has approved $348m in funding for the same electricity highway project, which calls for an investment of $1.26bn. The project is due for commissioning in November 2017.
The project includes construction of a 1,068km-long high voltage 500kV power transmission line with a electricity transfer capacity of up to 2,000MW.
According AfDB, the electricity highway project will position Ethiopia as the main powerhouse and Kenya as the main hub for power trading in the East African region.
AfDB East Africa regional director Gabriel Negatu commented, "With the approval of this project, we have solidified our position as the key strategic partner for East African countries in the power sector."
Ethiopia intends to spend over $12bn to grow its hydropower generating capacity to 10,000Mw by 2015 from its current 2,000MW capacity.
