WB okays massive loan to Ethiopia

The World Bank on Friday approved a 274.72 million U.S. dollar credit to Ethiopia to support its projects on rural development, rural electrification and road development.

In a statement available to international media, the bank said it approved a 133.42 million dollar credit for rural electrification project, 87.3 million dollar for road sector development while the balance is approved for rural development programs, being carried out in Ethiopia.

The bank said the credit it approved for the three projects would be paid back in a 40 year period of maturity, including a 10- year grace period.

The credit approved for the rural electrification project would be used to establish a sustainable program for expanding access to electricity, notably in small and medium sized communities located in rural areas, the bank said, adding that the project would support the country's economic development and the effort in the fight against poverty.

The bank said the project is also aligned with the country's plan to expand the electricity system to both support the high demand growth and extend access to the rural population at an accelerated pace.

Meanwhile, the financing, which supports Ethiopia's road sector development program, seeks to increase the road transport infrastructure and improve its reliability, strengthen the capacity of road construction, management and maintenance, and create conditions conducive to private sector participation in the road transport sector, the statement said.

The statement also said that the bank approved a 54 million dollar credit to Ethiopia to support its rural development.

The bank said it anticipates that additional financing for this project would be provided by other donors in the coming months.

The project aims at strengthening the agricultural technology system, make it more responsive to clients needs, and enhance the capacity of producers to select economically viable technological practices, the statement added.

Ethiopia is sub-Saharan Africa's second most populous country and is ranked seventh poorest in the world. Its development efforts have to rely on massive foreign financing.

Source: Xinhua