State-owned Tanzania Electric Supply Company’s Managing Director, Felchesmi Mramba, said that Tanzania will sign a 400 MW power purchase agreement with Ethiopia. The deal will be followed by the installation of power generation and transmission facilities that will not only foster economic integration but also cater for the region’s power needs for the next 25 years, All Africa reported.

Ethiopian Electric Power’s (EEP) CEO, Azeb Asnake, said that the power transaction will create further economic integration between Tanzania and Kenya as the latter sits between Ethiopia and Tanzania, according to Sudan Tribune.

The agreement between the two countries will be finalized after a meeting in Arusha of the 10 member states of the Eastern Africa Power Pool , which includes Kenya, Rwanda, Burundi, Uganda, Ethiopia, Egypt, Sudan, the Democratic Republic of Congo (DRC), Eritrea and Tanzania.

The horn of Africa’s nation is investing billions of dollars to construct a number of hydro-electric power plants including what would be Africa’s largest Dam known as Grand Ethiopia Renaissance Dam (GERD), which is being constructed along the Nile River in the Benshangul Gumz region near the Sudanese border and is currently over 50% complete and will have power generation capacity of 8,000 MW.