The Multilateral Cooperation Center for Development Finance (MCDF) has approved its first African funding proposal which aims to increase power connectivity between Egypt and Sudan to fill a missing link in a planned African network of combined electricity grids.

The USD 2.84 million grant, to be implemented by the African Development Bank (AfDB), will fund preparatory activities for a project which will help the two neighboring countries integrate their electricity networks. The Egypt-Sudan Extra High Voltage Power System Interconnection Project will initially help transfer surplus power from Egypt to Sudan, where 40 percent of the population lacks access to electricity.

The MCDF grant is designed to ensure the project’s feasibility study complies with International Financial Institution (IFI) standards, including technical studies and design options; economic feasibility studies and due diligence; environmental and social assessments, including climate resiliency; and procurement and financial plans.

The grant approval represents an important step for MCDF as it begins to direct its finances to address the huge demand in Africa for connectivity infrastructure investments. The Egypt-Sudan interconnection project is designed as a key component in building a single unified electricity market in Africa, with the eventual goal of cross-global power linkages tying Africa to the Middle East, Europe and other regions.

“The African Development Bank is very pleased to partner with the MCDF to support this regional interconnection project, a key link in the Continental Power System Masterplan and an important step in the attainment of the goal to establish the Africa Single Electricity Market”, said Angela Nalikka, Manager Power Systems Solutions at the AfDB.

MCDF’s Governing Committee approved the funding proposal by AfDB, which is an MCDF Implementing Partner. MCDF’s grant resources are designed to foster high-quality infrastructure and connectivity investments that adhere to IFI standards in developing countries.