GERD (Ethiopia)- Khartoum (Sudan)Transmission Line

Construction of a transmission line (580 km / 500 kV) that connects the power networks of Ethiopia and Sudan to facilitate trading in electricity and promote power systems stability. The interconnector will have a transmission capacity of 3000 MW.

The Project also includes two new, 500kV capacitated substations at Rabak and Jebel Aulia (both in Sudan), and power line bay extensions at the following existing substations: Grand Renaissance (500kV Ethiopia), Rabak (220kV, Sudan) and Jebel Aulia (220kV, Sudan).

Construction of a 500kV transmission line and the associated substations that connects the power networks of Ethiopia and Sudan to facilitate trading in electricity and promote power systems stability. The line will be 580 km in total, 564 km in Sudan, terminating in Khartoum, 16 km in Ethiopia, terminating at the Grand Renaissance Dam. The Project also includes two new, 500 kV capacitated substations at Rabak and Jebel Aulia (both in Sudan), and power line bay extensions at the following existing substations: Grand Renaissance (500kV Ethiopia), Rabak (220kV, Sudan) and Jebel Aulia (220kV, Sudan).

It is expected that the project would assist the two partners to obtain the following specific benefits: to promote power system stability in the countries concerned; to promote energy connectivity among the countries by assisting them to integrate their respective networks and thereby develop ability for building larger power projects to meet larger regional markets; to develop ability to negotiate better terms for procurement of power equipment and technical assistance; to reduce the cost of power in both countries; in the long term, complete integration of the power systems in Egypt and Sudan; and to create productive employment and economic development across the borders. The main objectives of the project include provision of transmission capacity to cater for grid interconnection between Egypt and Sudan, provision of transmission infrastructure to cater for future grid interconnections to other countries, promotion of regional cooperation through sharing of power generation resources and facilitation of rural electrification and improve the standard of living for the population in project areas

It is expected that the project would assist the two partners to obtain the following specific benefits:

• to promote power system stability in the countries concerned;
• to promote energy connectivity among the countries by assisting them to integrate their respective networks and thereby develop ability for building larger power projects to meet larger regional markets;
• to develop ability to negotiate better terms for procurement of power equipment and technical assistance;
• to reduce the cost of power in both countries;
• in the long term, complete integration of the power systems in Egypt and Sudan; and
• to create productive employment and economic development across the borders.

The main objectives of the project include provision of transmission capacity to cater for grid interconnection between Egypt and Sudan, provision of transmission infrastructure to cater for future grid interconnections to other countries, promotion of regional cooperation through sharing of power generation resources and facilitation of rural electrification and improve the standard of living for the population in project areas.

CAPEX last updated in 2006. Project economics and finances reflected here also refers also to "E.02.02.02 Ethiopia-Sudan Transmission Interconnector (Sudan section)".

 A sensitivity analysis was undertaken as part of the Feasibility Study which quantified the impact on the Ethiopian section of an increase in interest rates and quantified the impact of construction delays, cost overruns and mezzanine debt on the Sudanese section. The sensitivity analysis concluded that a 4% increase in interest rates on the senior debt would result in the Ethiopian equity payback period increasing from 17 years to 29 years

• Environmental Risk: Potential impact during the construction and operational phases relating to biodiversity and ecosystems (including avifauna), material use as it impacts on soil and groundwater recharge as well as solid waste and wastewater pollution impact on water bodies
• Socio-economic Risk: Potential impact during the construction and operational phases relating to quality of air and dust emissions, noise and other nuisance as well as the impact on tourism and cultural heritage due to visual and aesthetic impacts. Resettlement necessary for project-affected communities. Furthermore, possible adverse community health and safety effects from electromagnetic fields.
• Construction Risk: A comprehensive set of risks have been identified, including potential degradation and damage of the existing structures including any archaeological materials and terrain due to excavation,
• Operation Risk: Collision of birds with conductors, permanent interference between the project and local habitats as well as air emissions from maintenance equipment.

The Feasibility Study highlights two sets of project-related risks in the ESMP, namely construction risk and operation risk. - adverse physical and/or economic impacts, temporary or permanent displacement, as well as temporary or permanent loss of assets, facilities or access to resource such as crops, woodlots, grazing lands, wells, businesses and services, etc. Among the risks identified, the Project considered the social risk of resettlement as being particularly serious