Ethiopia to receive US $98m for Ethiopia-Djibouti corridor road project

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.

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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.

It is also expected to open up new markets to farmers and rural communities. Other beneficiaries would include some 3,000 truck-drivers who work the 900 kilometres between Djibouti and Addis Ababa, and youths, who will get over 95% of the job opportunities during the construction phase.

The project is set to commence next year and it will be implemented over a period of five years.

The AfDB grant to land-locked Ethiopia’s road transport sector is part of the Bank’s efforts to support regional integration and connectivity, with access to seaports being an area of special interest.