Ethiopia, AfDB Sign Over U.S. $128 Million Financing Agreement

The government of Ethiopia and the African Development Bank (AfDB) on Friday signed grant and loan agreements amounting to 128.46 million USD for construction of Modjo-Hawassa highway road project. The construction of the 201km Modjo-Hawassa highway project is expected to be completed within the coming four years.

The road will connect the towns of Modjo and Hawassa in Oromia and South Ethiopia Peoples' States, respectively. Some 126.02 million USD of the total finance is secured in the form of loan, while the balance comes in grant.

The government of Ethiopia, AfDB and the Korea Exim Bank will finance the road project which will be executed in two phases.

After signing the agreement, Finance and Economic Development Minister, Sufian Ahmed said the project is roads to be construct during the Growth and Transformation Plan (GTP) period as part of the fourth Road Sector Development Program.

AfDB resident representative, Josephine Ngure for his part congratulated the Ethiopian government and the Ethiopian Roads Authority for showing boldness in efforts to provide an efficient and modern road transport system.

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