23 December 2012

Ethiopia: House Endorses U.S.$50 Million Loan

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.

Copyright © 2012 Addis Fortune. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.