Ethiopia, South Korea Sign Loan Deals Amounting $93mln

ADDIS ABABA – The governments of Ethiopia and South Korea have signed today two concessional Loan Agreements amounting to 93 million USD or equivalent to 3 billion Birr.

The deals were signed between Ethiopia’s state finance minister Admasu Nebebe and Senior Executive Director of Korea’s EXIM Bank Shin Deog-Yong via a virtual ceremony held to ensure the WHO recommended social distancing due to the current global COVID-19 Outbreak.

 

The latest finance will fund the Establishment of Addis Ababa Bus Rapid Transit and Land Information Management System (LIMS) project, according to the ministry of finance.

The first project is intended to enhance mobility and accessibility by increasing the number of passengers using public transportation; reduce social costs incurred by traffic congestion and accidents; and improve the atmospheric environment.

The project loan amounts 63 million US dollars and is expected to be completed within 5 years, said the ministry.

The second agreement is aimed at reducing social conflicts by constructing and managing accurate land information; Improve tax collection based on exact data on land ownership; and improve land administration service in five largest cities in Ethiopia.

The project loan amounts 30 million US dollars and is expected to be completed within 6 years, according to the ministry.

The dead was signed a couple of days after Prime Minister Abiy Ahmed has requested that South Korean President Moon Jae-in share his experiences in dealing with the novel coronavirus pandemic.

Moon reportedly responded by asking that Ethiopia cooperate in helping all South Korean nationals in Africa who pass through Ethiopia during their repatriation process.

The two leaders discussed ways of cooperating on fighting the COVID-19 pandemic. Healthcare issue was one of the topics discussed during the video conference of G20 leaders on Mar. 26.