Djibouti signed a 15 million euro ($21.7 million) financing deal with the European Union for the development of an electricity interconnection project with neighbouring Ethiopia.

The agreement was signed yesterday by Ilyas Dawaleh Moussa, Djibouti’s Minister of Finance and Andris Piebalgs, the EU’s commissioner for development, in Djibouti City, the capital.

Djibouti wants to reduce its dependence on oil-fired power plants and increase use of hydropower sources in Ethiopia as it seeks to reduce power costs.

The EU is planning to provide 63.7 million euro of aid to Djibouti for the 2000-2013 period according to the EU’s website.

Source: Bloomberg