The House of Peoples’ Representatives has approved the US$320 million loan agreement previously agreed between the Ethiopian government and the Chinese Export-Import (EXIM) Bank to finance the ongoing construction of the six-lane expressway between Adama (Nazreth) town and Addis Ababa.
The agreement made in September between the Ethiopian Roads Authority (ERA) and the EXIM Bank has two parts including US$143 million of additional finance to finish the constructionof the 80 km Adama – Addis Ababa expressway.
The second condition relates to the US$177 million loan allocated to finance the first part of the project, the outer Addis Ababa ring road which stretches along Lebu-Akaki-Guro. The loan agreement, under a long-term package, is expected to be paid over after 13 years, with an annual interest rate of two percent and a seven year holiday period, as well as a 0.25 percent fee for administration costs.
The ERA is the developer of the project, while the Chinese Communication Construction Company (CCCC) is the contractor, and the total cost is estimated at some US$612 million. Out of the entire budget, the Ethiopian government will cover 15 percent.
The construction of the first six-lane toll road in the country started in April 2012 and is expected to be completed in April 2014. The expressway will be able to accommodate up to 15,000 vehicles a day, while helping to speed up the development of the country by reducing the traffic jams that habitually affect the 99 km Addis Ababa-Bishoftu-Adama route.