Ethiopia signs two grant agreements with AfDB

Addis Ababa, July 21, 2021 (FBC) – Two grant agreements with a total amount of $118.1 million were signed between Ethiopia and the African Development Bank (AfDB).

The grant agreements were signed by Ahmed Shide, Minister of Finance of Ethiopia, and Abdu B. Kamara, Deputy Director-General, East Africa Region, African Development Bank Group in support of two projects submitted by the Government of Ethiopia.

The first project which is known as the Ethio-Djibouti Second Power Interconnection Project received grant funds amounting $71.3 million through this financing agreement.

The project focuses on the construction of a transmission line from Semera to Djibouti and between Kombolcha to Semera including the construction of substations in Semera, Mile, and Kombolocha.

The second project named Integrated Agro-Industrial Parks and Youth Employment Project which has received grant funds of $46.8 million will target the development and rehabilitation of irrigation schemes in selected areas in proximity to the integrated agro-industrial parks located in Amhara and Oromia regional states.

The project is also being co-financed by the Arab Bank where the funds will be used to implement irrigation schemes in Sidama and Tigray regions, according to a statement issued by the Ministry of Finance.