Kenya, Tanzania invite bids for construction of a high-voltage power line

Kenya and Tanzania have invited bids for the construction of a high-voltage power line connecting the two, part of efforts to meet growing demand for electricity and deepen integration of their economies.

The two countries will build approximately 510 km of 400 kilovolt (kV) power lines and several substations to allow them trade in power, they said in a statement published in Kenya's Daily Nation newspaper.

The tender did not indicate the cost of the project to be funded through financing by the African Development Fund (ADF) and the Japan International Cooperation Agency (JICA). Bids are due by Sept.9.

The African Development Bank (AfDB) said in February it had approved a $145 million loan to fund the building of the electricity line between Kenya and Tanzania to improve regional power connections.

East Africa has some of the fastest growing economies on the continent but power shortages deter investment, pushing up business costs and sustaining poverty and inequality.

Kenya, which relies heavily on renewable energy like geothermal and hydro power, aims to expand installed capacity to about 6,700 megawatts (MW) by 2017, from about 2,500 MW now. It also aims to halve bills from around $0.17-0.18 per kWh in three or four years.

As well as expanding generation, Kenya has plans to add 5,000 km of power lines to its existing 3,800-km network by 2017. Only a third of Kenya's 44 million people are connected to the grid, according to its energy ministry.

Neighbouring Tanzania aims to double its generation capacity to 3,000 MW by 2016.

Southern Africa already has a series of interconnections linking countries, including South Africa, Zambia, Zimbabwe and Mozambique, which allows them to trade power.