Ethiopia on Friday signed two grant agreements, amounting to 5.73 million U.S. dollars, with Japan and the World Bank.

Ethiopia's Ministry of Finance and Economic Development signed with Japan a 4.73 million dollar grant agreement to finance the second phase of the water supply project in South Ethiopia People's State.

The grant is mainly intended to be used for the construction of water facilities and procurement of equipment.

State Minister of Finance Mekonnen Manyazewal and Japanese Ambassador to Ethiopia Kenjiro Izumi signed the agreement on behalf of their respective governments.

Speaking on the occasion, Mekonnen said Japan has been assisting Ethiopia's efforts geared towards alleviating poverty and registering sustainable economic growth.

He said the Ethiopian government has designed a five-year strategic plan aimed at realizing development goals.

Ambassador Izumi on his part said the Japanese government would shortly conduct studies to launch similar projects in north Ethiopia's Afar and Tigray states.

The Japanese government has provided 4.5 million dollars for the implementation of the first phase of the water supply project in South Ethiopia People's State.

Similarly, a grant agreement, amounting to 1 million dollars was signed between Ethiopia and the World Bank.

According to the agreement, the grant would be used for the preparation of north Ethiopia's Tana-Beles water resources development project, which will improve the development as well as the management of land and water resources of the Tana-Beles subbasins to contribute to accelerated socioeconomic development of the country.

State Minister of Finance Mekonnen and Herber Acquacy, acting country director of the World Bank to Ethiopia, signed the agreement.

Source: Xinhua