Ethiopia has inked a $184 million grant agreement with the African Development Bank (AfDB) to facilitate construction of the Adama-Awash expressway project. It is a critical segment of the Ethiopia-Djibouti transport corridor. The corridor is responsible for carrying more than 90 percent of the country’s maritime trade through the Port of Djibouti. The funding took place in Addis Ababa and will finance the 67-kilometer stretch. Conversely, it is one of the main missing links in the 130-kilometer Adama-Awash expressway. It extends the Addis Ababa-Adama toll road eastward and is designed to cut travel times.
Moreover, it will ease congestion and strengthen the logistics backbone of Africa’s second-most populous nation. “The project reflects Ethiopia’s commitment to regional stability and deeper integration,” Finance Minister Ahmed Shide said at the signing ceremony. Also present during the signing was AfDB’s Director General for East Africa, Alex Mubiru (PhD). He noted that the bank would continue supporting Ethiopia’s reforms and infrastructure pipeline. These include planned investments in major transport and aviation projects.
Scope of Implementation on the Adama-Awash Expressway Project
The Adama-Awash expressway project is part of a broader plan to modernize the Ethiopia-Djibouti transport corridor. The significance of the corridor is unmatched in the country as it is the main hub route for all imports and exports. Furthermore, the route runs parallel to the Djibouti railway and bypasses busy towns. These include Nura Era, Wolenchiti and Melka Jilo. Once complete, it will create a seamless, access-controlled, four-lane connection from Addis Ababa to Awash. It will descend from 1,500 meters near Adama to around 900 meters at its eastern end. Construction on the project commenced in 2021 after Prime Minister Abiy Ahmed launched the first 60-kilometre section. The project was financed partly through a $95 million AfDB loan. That stretch, built by a joint venture between China Communications Construction Company and local contractor LRBCL, is now nearing completion.
Challenges Facing the Segment on the Ethiopia-Djibouti Transport Corridor
Despite steady continuation on the Adama-awash expressway project, progress on the expressway has been slower than originally planned. The initial section cost an estimated $154 million, while resettlement and compensation for affected communities in Oromia and Amhara regions added more than 502 million birr. Hundreds of households were relocated under a Resettlement Action Plan designed to restore livelihoods. It also aimed to support vulnerable groups, including women-headed households. Challenges such as land acquisition, environmental clearances and logistical bottlenecks have also contributed to delays.
This is becoming common in Ethiopia’s large-scale transport projects. However, once operations commence, the expressway is expected to halve travel time between Adama and Awash to about 30 minutes. Furthermore, it will support daily traffic of more than 20,000 vehicles. Other than the Adama-Awash expressway, AfDB is also engaging in discussions on budget support and financing for flagship projects such as the planned Ethiopian Airlines Bishoftu International Airport.
Project Factsheet
Funding & Status:
- Ethiopia signs $184 million AfDB grant to build the 67 km Adama-Awash expressway segment.
- Part of the Ethiopia-Djibouti transport corridor, which carries 90% of Ethiopia’s maritime trade.
- Extends the Addis Ababa-Adama toll road eastward.
Project Significance:
- Closes one of the key missing links in the 130 km Adama-Awash expressway.
- Designed to cut travel time, ease congestion, and strengthen Ethiopia’s logistics backbone.
- Reflects Ethiopia’s push for regional integration and improved trade competitiveness.
Scope of Works:
- Access-controlled, four-lane expressway to run parallel to the Djibouti railway.
- Bypasses busy towns including Nura Era, Wolenchiti, and Melka Jilo.
- Elevation drops from 1,500m near Adama to 900m near Awash.
- Construction started in 2021; the first 60 km section (built by CCCC & LRBCL) is nearing completion.
Key Challenges:
- Slower-than-planned progress due to land acquisition, environmental clearances, and logistical delays.
- Over 502 million birr spent on resettlement and compensation in Oromia and Amhara regions.
- Hundreds of households relocated under a Resettlement Action Plan.
- Increasingly common challenges in Ethiopia’s large-scale infrastructure projects.
Expected Impact:
- Travel time between Adama and Awash expected to drop to 30 minutes.
- Projected to support 20,000+ vehicles daily.
- Boosts efficiency of the Ethiopia-Djibouti corridor, the country’s lifeline trade route.
- Complements AfDB’s wider support for Ethiopia’s transport infrastructure, including the planned Bishoftu International Airport
