Ethiopia and Saudi Fund for Development ink $140m loan agreement
Addis Ababa, December 19, 2019 (FBC) – Ethiopia and the Saudi Fund for Development (SFD) have signed a $140 million loan agreement.
The agreement was signed here today by Ahmed Shide, Minister of Finance and Khaled bin Sulaiman Alkhudairy, Vice-Chairman and Managing Director of the Board of Directors of SFD.
The soft loan would be used for the construction of the 118-km Debre Marko-Mota road project ($75m) and implementation of One WaSH National Programme ($65m).
Similarly, Ethiopia has signed agreement with the International Company for Water and Power Projects (ACWA POWER) for the Dicheto and Gad solar power projects.
The Public Private Partnership Board of Ethiopia last September picked the Saudi headquartered ACWA POWER as the winner of the $300 million solar PV projects.
Dicheto and Gad solar power projects will be implemented in Afar and Somali regional states, respectively, and are expected to generate a total of 250MW solar energy, each with 125MW.
ACWA POWER was picked as winner out of the 12 short listed companies as it has offered 2.5260 US cents/kwh for both sites, which is the lowest solar power purchase tariff in Africa and one of the lowest globally.