The Ethiopian parliament has approved the loan agreements for the construction of Gedo-Lemlem Bereha, a 50 million dollar road project, on Tuesday, December 18, 2012.
The approved agreements include 25 million dollar loan from the Saudi Development Bank, 10 million from the Abu Dhabi Development Fund, and 10 million Dollars from Arab Bank to Africa Development Bank. The rest five million dollar will be covered by the government.
The project involves the 80.5Km road from Gedo to Menebegna in Wollega Zone of Oromia. This project, part of the bigger Gedo-Lemlem Bereha project, which is 144.3kms, is expected to cost 50 million dollars.
The loan from Saudi Development Bank has a loan charge of one per cent per annum, and payable in 30 years including 6 years grace period.
And the lone from Abu Dhabi Development Fund will have a 1.5 pc interest, 0.5 service charge, and payable in 20 years including 5 years grace period.
The loan from Arab Bank to Africa Development Bank has one percent interest and payable in 20 years including the 10 years grace period.