What changed
Ethiopia’s House of Peoples’ Representatives unanimously approved a $145.8 million concessional loan from the International Development Association on October 13, 2026. The financing will fund the first phase of power-sector modernization, including upgrades to Addis Ababa’s transmission network, new substations and underground transmission lines. The loan will be repaid over 31 years, including a six-year grace period.
Why it matters
This moves the project from financing agreement to legally authorized national program. The immediate focus is Addis Ababa, where stronger transmission infrastructure and upgraded facilities are intended to make electricity supply more reliable and modern.
The timing also links the investment to Ethiopia’s preparation to host COP32. Reliable power will matter for the summit itself, but the larger test will be whether the improvements remain useful after the event has ended. The financing terms limit the short-term strain on Ethiopia’s budget, while the government says the project fits its debt-management strategy and supports sustainable economic growth.
The legislation, ratified as Proclamation No. 1441/2019, completes domestic approval of the loan. Construction dates, procurement terms and expected capacity gains have not been specified.
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