India: BADEA signs loan agreements with Ethiopia, Burundi

Ahmedabad, India (PANA) - The Arab Bank for Economic Development in Africa (BADEA) on Wednesday signed two loan agreements with Ethiopia and Burundi.  

The agreements were signed on the sidelines of the 52nd Annual Meetings of the African Development Bank (AfBD) taking place in Ahmedabad, India.

The loans, reportedly granted on highly concessional terms and in accordance with BADEA's Seven Five-Year-Plan (2015-2019), are allocated as follows:-

1. Ethiopia - Ethiopia received a Loan of US$ 20 million to help finance the Shambu-Agamsa road upgrading project. The loan will be repaid in 30 years, including a grace period of 10 years and at an annual interest rate of 1%.

The road project aims to contribute to the development, expansion and integration of the national road network and to link the Aroma region with various regions in Ethiopia and the capital, Addis Ababa.

The project also aims to improve traffic efficiency, reduce transport time and vehicle operating costs, thereby lowering transport costs and facilitating the transport of agricultural products in the project area to the other regions of the country, and ensure that the population will have access to social service centres, and to contribute to the support of economic and social development in the country.

2. Burundi - BADEA granted a loan of US$ 15 million to Burundi to help in financing the construction of the Bururi-Getiga road; and the Bururi-Gafoor road project.

The loan is repayable in 30 years, including a 10-year grace period and an interest rate of 1% per annum.

The road project aims to contribute to the development of the road network, facilitate the movement of goods and passengers to the area, to reduce the cost of transportation, and to remove isolation from villages located on the path and facilitate access to administrative and social centres, in addition, contribute to economic and social development and alleviating poverty for the people of the region.

The agreements were signed on behalf of the BADEA by Yousef Bin Ibrahim El-Bassam, Chairman of BADEA Board of Directors.

The beneficiary countries were represented by the officials designated by their respective countries -- Dr. Abraham Tekeste, Minister of Finance and Economic Cooperation for Ethiopia and Dr. Domitien Ndihokubwayo, the Minister of Finance, Budget and Privatization for Burundi.
-0- PANA VAO 24May2017







24 may 2017 13:09:07




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