ADDIS ABABA – Ethiopia’s Ministry of Finance and African Development Bank (AfDB) have signed two grant agreements with a total sum amount of $118.1 million (ETB 5.2 billion) on Wednesday.
The grant agreements were signed between Ahmed Shide, Minister of Finance, and Dr. Abdu B. Kamara, Deputy Director-General of AfDB’s East Africa office, in Addis Ababa.
The signing came two weeks after AfDB’s Board of Directors approved the grants from the Bank’s concessional window, the African Development Fund, on July 7, 2021.
The funds will finance two government schemes, namely ‘Ethiopia Djibouti Second Power Interconnection’, and ‘Productivity Enhancement to Support Agro Industrial Parks and Youth Employment’ projects.
The power interconnection project received grant funds amounting $71.3 million through this financing agreement.
Ministry Finance said it focuses on the construction of a transmission line from Semera to Djibouti as well as between Kombolcha to Semera that involves installing substations in Semera, Mile, and Kombolcha.
The second project, on the other hand, has received grant funds of $46.8 million, according to the Ministry.
The fund will finance the development and rehabilitation of irrigation schemes in selected areas in proximity to the integrated agro-industrial parks located in Amhara and Oromia regions.
The project is being co-financed by the Arab Bank where the funds will be used to implement irrigation schemes in Sidama and Tigray Regions, according to the ministry of Finance.
The African Development Bank has recently become a major player in Ethiopia’s development agenda and currently has in commitment, operations valued at about USD1.76 billion, covering a range of key sectors including basic services and transport.