Home The EAC Issues EAC News East Africa seeks $8.4b for energy projects

East Africa seeks $8.4b for energy projects

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ARUSHA, TANZANIA - A total of $8,357,000,000 is required by the ten Eastern Africa countries including member states of the East African Community (EAC) to implement the regional power generation and interconnection projects.
This is according to a study report released by the Canadian consultancy firm, SNC Lavalin International Inc in association with Parsons Brinckerhoff.
The report that covered Burundi, Djibouti, DRC, Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania and Uganda reveals that they all require a total capital cost of up to $8,357m.
This amount is made up of US$ 6,032 million for capital expenditure, US$ 969 million for interest during construction and US$ 1,356 million allowance for price escalation
The total investment required for the interconnection projects in a five year blocks include $ 1,746 million for implementation of the projects during the period 2009 to 2013, $3,669 million between 2014 and 2018, $2,546 million for the third five years period (2019 to 2023) and finally $486 million for the period 2024 to 2028. A statement issued by the EAC secretariat said that the sixth meeting of the sectoral council on energy considered the report of the permanent secretaries responsible for energy, which covered regional activities in the areas of new and renewable energy and energy conservation and efficiency, fossil fuels and power sub-sectors.
The Deputy Secretary General in charge of productive and social sectors, Jean Claude Nsengiyumva, reported that work on the regional power master plan was completed and that the plan will play a pivotal role in harnessing electricity generation resources from the region.
 "This will help the partner states taking advantage of interconnection opportunities to enable the EAC access electricity from neighboring regions at competitive rates," he noted.  The meeting also noted that the development of cross-border electrification policy to address the development of trans-boundary resources and extension of electricity supply to border towns from neighboring EAC partner states was ongoing.
Mr. Nsengiyumva disclosed that the feasibility study for a natural gas pipeline from Dar es Salaam to Tanga and Mombasa was complete and a similar study for extension of the oil products pipeline from Kigali to Bujumbura was set to start after the EAC secretariat secures funding from the African Development Bank.
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What will be the effect of the East African Budgets on the economies of the EAC