US $33m for Ethiopian road project approved
The Ethiopian Parliament has approved a US$33-m loan for the second phase of construction and upgrading the of 57.5-km.Arbereket-Gelemso Micheta road.
The funds were sourced from Oil Producing & Exporting Countries (OPEC), Fund for International Development (OFID), and the Arab Bank for Economic Development in Africa (BADEA).
The project involves upgrading the road from gravel to fully-paved asphalt.to develop the national roads network and improve agricultural and trade activities within the region. The road will link the region to the rest of the country and contribute to socio-economic development and poverty alleviation.
This loan has raised BADEA’s commitments to Ethiopia to US$165.23 million to be paid back over 30 years after a grace period of 10 years. OFID’s loan has a 5-year grace period and repayment over 20 years. Both loans will attract 1% interest.