AfDB, South Korea join forces for USD 255m road project
Addis Ababa, Ethiopia – The African Development Bank (AfDB) is set to approve a loan of USD 130 million for a 120 km long expressway stretching from the town of Modjo to Ziway.
Lamin Barrow, resident representative of the AfDB, told The Reporter in an exclusive interview that the Bank will finance construction of the roadÃ¢â‚¬â„¢s first phase, with the board of directors set to approve the loan in October.
According to Barrow, the loan will benefit the construction of the road project, and the Bank expects it to be completed within three to five years in line with its other ventures. The expressway will commence construction this fiscal year following the release of the loan, the Ethiopian Road Authority (ERA) has confirmed.
According to Samsom Wondimu, public relations head of ERA, the link road awaits finance from both the AfDB and the Republic of South Korea. Samsom said the ERA is expecting to receive USD 125 million from the South Koreans in the near future, bringing the total cost to USD 255 million. The ERA has finalized preparations to award contracts to international bidders. The next phase of the expressway will join Ziway and Hawassa towns, for which the World Bank and Export and Import (EX-IM) Bank of China are expected to extend loans.