Ethiopia is set to receive a US $98m grant from the African Development Bank (AfDB) for the construction of the Ethiopia-Djibouti corridor road project. The entire project is expected to cost US $255m.
The government of Djibouti is expected to contribute US $5.3m to the project through an AfDB grant, leaving a deficit of US $151m which will be covered by the Ethiopian government through a co-financing contribution.
The Ethiopia-Djibouti corridor road
The project consists of the construction of the first 60-kilometre of a 4-lane expressway section of the new 126-kilometre stretch from Adama to Awash and includes the design of a one-stop border post at Dewele.
The project is expected to enhance trade by significantly reducing transport costs, thereby accelerating the economic growth of Ethiopia and its neighbour Djibouti, as it is part of the main import-export corridor.