Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Construction of a high-voltage transmission line connecting Guba (Ethiopia) to Khartoum (Sudan) as part of the Eastern Africa Green Power Transmission Network, enabling power trade between the two countries and supporting regional integration.
Objectives
Establish a reliable power transmission interconnection between Ethiopia and Sudan; enable power trade between the two countries leveraging Ethiopia's hydropower potential; reduce power generation costs through efficient resource sharing; enhance the reliability of power supply in both countries; support regional economic integration through energy infrastructure; contribute to the Eastern Africa Power Pool (EAPP) integration objectives; create a foundation for wider regional energy market development; and reduce carbon emissions through optimization of regional power resources.
Strategic Importance
This project represents a critical link in the Eastern Africa Green Power Transmission Network, enabling power trade between Ethiopia with its substantial hydropower resources and Sudan. It forms part of the broader regional integration of power systems in Eastern Africa, supporting the development of a regional power market, enhancing energy security, and enabling more efficient utilization of energy resources across the region. The project aligns with both countries' energy development strategies and supports the Eastern Africa Power Pool's vision for an integrated regional power system.
Technical Specifications
Technology & Design
The project will employ high-voltage AC transmission technology (likely 500kV) with modern design features including high-capacity conductors, robust tower structures for the challenging terrain, and advanced substation equipment with digital control systems.
Capacity & Size
Approximately 400 km of 500kV high-voltage transmission line with transfer capacity of 2,000 MW; Two major substations with transformation capacity of 1,500 MVA each; Interconnection to national grids in both countries
Technical Details
Transmission voltage: 500kV AC; Tower types: Self-supporting lattice steel towers; Conductor configuration: Triple bundle with high temperature capability; Substations: GIS technology with advanced control systems; Communications: Fiber optic ground wire for control and protection; Lightning protection: Overhead ground wires and surge arresters; Reactive power compensation: Static and dynamic devices as needed
Development, Implementation & Financial Details
Development Timeline
Feasibility studies (2021-2023); Detailed design and financing arrangements (2023-2025); Construction and implementation (2025-2029)
Latest Implementation Updates
UPDATEDFinancing Structure
The project financing will likely combine sovereign loans from multilateral development banks (AfDB, World Bank), bilateral financing from development partners, and contributions from the governments of Ethiopia and Sudan. Potential climate financing may also be sought given the project's contribution to enabling renewable energy utilization.
Capital Structure
Public financing through sovereign loans (85%), government contributions (15%)
Project Timeline
Start Date
January 2021
Expected Completion
December 2029
Development Timeline
Feasibility studies (2021-2023); Detailed design and financing arrangements (2023-2025); Construction and implementation (2025-2029)
Project Status History
Status 2020
Feasibility
Status 2022
Pre-Feasibility
Status 2024
Structuring
Additional Project Details
Preparation Funding Gap
USD 15.00M
Construction Timeline
Site preparation and land acquisition (2025-2026); Tower foundation and erection (2026-2028); Conductor stringing and substation work (2027-2029); Testing and commissioning (2029)
Legal & Financial Advisors
CESI S.p.A. providing technical advisory services; legal and financial advisory services pending appointment
Market Analysis
Market Analysis
Power demand in Sudan continues to grow at 7-9% annually, with supply constraints limiting economic development. Ethiopia has developed substantial hydropower capacity, including the Grand Ethiopian Renaissance Dam (GERD), creating significant export potential. The interconnection will enable mutually beneficial power trade between the two countries.
Market Demand
The transmission line is designed to transfer up to 2,000 MW of power, primarily from Ethiopia to Sudan in the initial years, with potential for bidirectional flow as Sudan's generation capacity develops. Peak demand in Sudan is projected to reach 5,000 MW by 2030, with the interconnector providing a significant contribution to meeting this demand.
Key Stakeholders
Project Sponsor
Ethiopian Electric Power (EEP), Sudan Electricity Distribution Company (SEDC), Eastern Africa Power Pool (EAPP)
Key Parties
Ethiopian Electric Power (EEP), Sudan Electricity Distribution Company (SEDC), Eastern Africa Power Pool (EAPP), Ministry of Energy (Ethiopia), Ministry of Energy and Mining (Sudan)
Investors
African Development Bank, World Bank, Arab Fund for Economic and Social Development, potential bilateral partners (China, Arab countries, European partners)
Contractors & Operators
To be determined through international competitive bidding following project structuring
Risk Assessment
General Risk Assessment
Key risks include: geopolitical factors affecting bilateral relations; technical challenges in the difficult terrain between the countries; coordination complexities across two different power systems; potential financing challenges for a large cross-border project; and security considerations in certain areas along the route. Risk mitigation includes structured bilateral coordination mechanisms, phased implementation, and comprehensive stakeholder engagement.
Regulatory Risks
The project will require harmonization of technical standards, operational protocols, and regulatory frameworks between Ethiopia and Sudan. A joint coordination committee will be established to address regulatory issues. Key regulatory risks include potential delays in establishing consistent operational frameworks and challenges in tariff-setting mechanisms.
Impact Assessment
Environmental Impact
The project requires a comprehensive Environmental and Social Impact Assessment with particular attention to areas with sensitive ecosystems and populated regions. Key environmental considerations include land clearing for right-of-way, potential impacts on biodiversity, watershed management particularly at river crossings, and visual impacts of transmission infrastructure. Environmental management plans will focus on minimizing habitat disturbance, preventing soil erosion, and proper waste management during construction.
Social Impact
The transmission line is expected to generate approximately 800 direct jobs during construction and 150 permanent jobs during operation. Broader socioeconomic benefits include improved power reliability benefiting businesses and households, potential for reduced electricity costs, enhanced regional economic integration, and improved conditions for industrial development along the corridor. Community development initiatives will be implemented in areas along the route.
Investment Opportunities
Private Sector Opportunities
Significant opportunities exist in: construction and installation of transmission infrastructure; supply of equipment (towers, conductors, substations); engineering and project management services; operations and maintenance services through management contracts; and technical training and capacity building.
Next Steps & Agreements
Next Steps
Complete comprehensive feasibility studies; secure financing commitments; establish implementation framework including bilateral agreements; finalize environmental and social impact assessments; develop procurement packages; appoint project implementation teams in both countries
Offtake Agreements
A bilateral Power Trade Agreement between Ethiopia and Sudan will establish the framework for electricity exchange, including scheduling, pricing, and operational protocols. Transmission service agreements will define access rights and responsibilities.
Contact Information
Dr. Abraham Belay, CEO, Ethiopian Electric Power, Email: info@eep.gov.et; Eng. Osman Abdalla, Director General, Sudan Electricity Distribution Company, Email: info@sedc.gov.sd
