Capital Ethiopia Newspaper

Kuwait loans road authority USD 25 mln

The Kuwait Fund for Arab Economic Development (KFAED) a major external funder of development endeavours in the country is considering allocating 25 million dollars to the Ethiopian Roads Authority (ERA) for this year’s new road projects.
When KFAED was celebrating its 40 year anniversary two weeks ago, a delegation visited road sites in Ethiopia.
After the visit, ERA officials told Capital that they expect to receive the money before the end of the year.
The Kuwait Fund has become a big player in the past few years.  
Ethiopia and the Kuwait Fund for Arab Economic Development (KFAED) have signed an agreement for a loan amounting to 24 million  dollar loan for the 97 Km Nekemt-Bedele road. This road is expected to improve and facilitate the connection between west Oromia state and the nation’s capital.
According to sources, the new loan deal shall be confirmed after it is approved between the Ministry of Finance and Economic Development and the authorities in Kuwait.
The Ethiopian Road Authority has several major external financial sources including the World Bank, the European Union and China. Countries like Kuwait are also supporting the road development program which is receiving high attention from the Ethiopian government.    
During this Growth and Transformation plan (GTP) period the authority intends to construct major roadways at a much higher rate than during previous plans.
The five year plan will end in 2015 and the authority has already secured 81.1 billion birr for its projects, but it requires more funding as it is undertaking major constructions around the country.  
ERA has always received the biggest slice of the budget pie over the last few years. It also receives a larger supplemental budget than other sectors.
In the next five years the government plans to construct nearly one hundred thousand kilometres of new roads.
From the total 81.1 billion birr about 34.8 billion birr will be used to construct new link roads.
A major part of the remaining amount will go to upgrading and rehabilitating trunk and link roads.
According to the five year program ERA will construct 4,331Km of new roads. Most of the money will come from the government and external loans.
Based on this year’s data, there are now 8,300Km of paved roads and just over 14,000Km of gravel roads. In the last 14 years the country’s road network, which includes federal, regional and Woreda roads, has expanded to fifty four thousand kilometres from just under twenty seven thousand.