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Ethiopian parliament approves infrastructure loan agreement with Chinese bank

Ethiopia’s parliament on Tuesday approved a 250-million-U.S.-dollar loan agreement made with China’s Export-Import (Exim) Bank to finance major infrastructure construction in the country.

The loan agreement, already approved by the Ethiopian House of Peoples’ Representatives, the lower house, would finance supply and construction of 400-kv power transmission projects of Genale Dawa III-Yirgalem II-Wolayita Sodo II-Hawassa II in the southern part of Ethiopia.

The agreement, signed in December in China, is composed of two major parts: 195 million dollars for building the transmission line and the remaining about 54 million dollars for undertaking major substation parts of the project.

The Ethiopian Electric Power and China Engineering Corporation Limited have entered into agreement for Genale Dawa III-Yirgalem II-Wolayita Sodo II-Hawassa II back in September 2014, and another supplementary contract agreement a year after the first agreement.

Meanwhile, China and Ethiopia have enhanced their bilateral ties, leaders of the two sides said on November 18, 2016.

Ethiopia is ready to work with China and deepen the friendly bilateral relations at all levels, including people-to-people exchanges, President Mulatu Teshome told a then visiting Chinese Vice President Li Yuanchao.

Ethiopia attaches great importance to relations with China and has harvested tangible benefits, he added.

Mulatu further commended that the major China-Africa cooperation plans proposed by Chinese President Xi Jinping at the Johannesburg Summit of the Forum on China-Africa Cooperation will meet Africa’s needs and strongly promote its industrialisation.

 

Source: Xinhua | Updated Jan 8

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