Ethiopia: HPR Ratified Loan Agreement for Ethio-Djibouti Road

Ethiopia: HPR Ratified Loan Agreement for Ethio-Djibouti Road

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A 3.73 Billion Birr loan agreement with the China EX-IM Bank was ratified by Ethiopia’s legislature, House of People’s Representatives (HPR). The loan is secured for the upgrade of the 210 Kilometers Dire Dawa – Dewalle road project.

The loan is one to be paid in 20 years at a two percent interest and seven years grace period.

The ratification proclamation was tabled to the House by the Budget & Finance Standing Committee on June 2, 2014. The standing committee on its part, it discussed the bill with four experts; three from the Ministry of Finance and Economic Development and one from the Ethiopia Roads Authority.

The road construction is going to be done by CGC Overseas Construction Group LTD (CGCOC). This is done as per the finance deal that was concluded earlier, Samson Wondimu, Communications Head at ERA said. Nonetheless the supervisor to the project has not yet been selected.

The road is going to be 15 Meters wide in town section and 10 Meters in rural section. The construction is said to start in September 2014.

Samson noted the construction of this road is aimed at strengthening economic linkage between Ethiopia and Djibouti.He furthered it will enhance transporting raw materials and finished products from the Industrial Zone that will be constructed in Dire Dawa as well the traffic flow in the route.

According to Fortune the road is part of the fourth Road Sector Development Program (RSDP IV), which has rehabilitated, upgraded, constructed and maintained 41,664km of roads since it was implemented in July 2010.

Source: Fortune

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