The common goal of the governments of Ethiopia and Djibouti is to improve access to electricity for their respective populations. Their target indicators for success are to increase electricity access in Ethiopia from 16% in 2003 to 50% by 2010 and in Djibouti from 49.5% in 2003 to 60% by 2015.

Access to power will greatly assist the economic development of Ethiopian border towns. Increased electricity usage by irrigation pumps and small- and medium-sized businesses will enhance production, create employment and expand existing opportunities. In Djibouti, reduced electricity costs should lead to an increase in disposable income and assist with the development of new industries, especially in Djibouti City. It also will expand opportunities in Djibouti's fishing sector, where it is anticipated some 10,000 permanent new jobs will be created by 2015.

Strategic Underpinnings

The Ethiopia-Djibouti power interconnection project increases the transmission system's power-transfer capacity between the two countries and is in accordance with Poverty Reduction Strategy Papers, which are issued to encourage improved social benefits for all through the provision of access to electricity. When the project was initially considered, a thorough environmental and social impact assessment study was undertaken to ensure that all impacts were fully understood and mitigation measures were introduced, where necessary.

In September 2006, Parsons Brinckerhoff (PB) and its consortium partner, RSW International of Canada, were appointed by two clients, Électricité de Djibouti (EdD) and Ethiopian Electric Power Corp. (EEPCO), to help deliver the ambitious project. The contract included project supervision and management, technical and contractual review of the work such as power system studies, and environmental mitigation measures.

PB and RSW also are providing an institutional strengthening study for EdD and EEPCO to enable them to develop the operational capacity of the connection into their respective power systems and a tariff study to help establish the price of electricity resulting from the project.

The project also provides a commercial outlet for Ethiopia's extensive hydroelectric generation potential, estimated at 30,000 MW and 162,000 GWh — although only approximately 2% of this potential is currently realized. At present, Djibouti is dependent on oil-fired power stations, making the unit cost of power production three to four times higher than in Ethiopia.

Initially, the project, substantially funded by the African Development Bank, aimed to provide a single 230-kV interconnector. Then in October 2008, the African Development Bank approved funding for a second circuit. Subsequently, contract amendments were negotiated and agreed upon by PB, RSW and the appointed transmission line and substation contractors. The double-circuit transmission line is expected to be completed in August 2010.

The Ethiopia-Djibouti 230-kV Interconnector

The transmission line is routed from Dire Dawa in Ethiopia to Djibouti City, which is located in the Horn of Africa, near the Gulf of Aden. For the majority of the 282-km (175-mile) route, the interconnector runs parallel to the existing Ethiopia-Djibouti railway line, with 202 km (126 miles) in Ethiopia and 80 km (50miles) in Djibouti along national roads No. 1 and No. 5.

Substation construction work included an extension to the existing Dire Dawa substation, involving two 230-kV line bays. One circuit is used to supply Adigala, the principal Ethiopian border town along the 230-kV transmission line route where a 230/33-kV, 20/25-MVA substation has been constructed. The new Adigala substation was constructed to supply another 11 Ethiopian border towns, in the vicinity of Aysha, Dewele and Harewa, through a new network comprising 230 km (143 miles) of 33-kV overhead line and multiple 33/11-kV pole-mounted transformers, including 13 200-kVA units, 33 100-kVA units and 15 50-kVA units.

Adigala substation also includes a 230-kV line bay to supply Djibouti City, where a new 230/63/20-kV substation, equipped with 52/63-MVA transformers, has been built. Another 75 km (47 miles) of 63-kV overhead line was constructed to supply power to the border towns of Ali-Sabieh and Dikhil through a 63/20-kV substation equipped with a single 12-MVA transformer.

Project Specification, Equipment Suppliers and Contractors

Designed using well-proven and field-tested technologies to ensure efficient operation, the interconnector has not been without major challenges. The transmission line spans extremely remote and arid territory, where temperatures regularly exceed 35°C (95°F). The design was carefully considered to ensure the interconnector's current-transfer capacity is available under the anticipated ambient conditions. The appointed overhead line and substation contractors also faced these challenging conditions during construction.

The project contracts for the transmission lines and substations were awarded following a competitive bidding process in September 2007. The first phase of electrification in the border towns was completed in 2009. The entire project completion date is scheduled for August 2010.

Coinciding with the project construction program, PB and RSW have been working closely with EdD and EEPCO on the necessary institutional strengthening and tariff studies to establish a pricing policy. Almost complete, this work included demand forecasting, generation planning, consideration of transmission and distribution long-run marginal costs and structuring the interconnector tariff. Training of the staff who will operate the interconnector is planned for later this year.

Socioeconomic Benefits

The positive socioeconomic impact will provide extensive benefits and, importantly, help alleviate gender disparities common in Ethiopia and Djibouti. In particular, the rural communities in Ethiopia will receive improved public services with the electrification of social facilities such as schools, public health centers and religious sites. Widespread adult education and family welfare programs will be introduced using new audio-visual techniques.

Refrigeration will, for the first time, allow the systematic preservation and storage of drugs, vaccines and chemicals, while public health centers will become more accessible to all. Six border town health centers, catering to nearly 22,000 people, will be among the key beneficiaries on the Ethiopian side. Finally, the introduction of street lighting will generally improve security and benefit road safety.

Following completion of the 230-kV interconnector between Ethiopia and Djibouti in East Africa, regional power trading will be established for the first time between the two countries. Nearly 9000 new consumers in 12 border towns will have electricity connections for the first time, and some 33,000 existing customers in Djibouti will benefit from reduced tariffs.