China has approved a quarter billion USD for the realization of an industry park that will be constructed in Adama town.
The Adama Industry Park that will be constructed by Hunan Province of China and the Ethiopian government via a joint venture basis will produce heavy machinery and parts.
Experts told Capital that the loan approval is one of the very few that was secured from China in the current budget year.
In the past few years China has dispersed a huge amount of money for several developmental projects, but that trend has not occurred during the current year, according to experts.
According to the information the Chinese Export Import (EXIM) Bank has agreed to release USD 250 million for this particular project.
On Monday April 10 Ethio-Hunan Investment Cooperation Forum signed agreements to implement the project. These include operation and management of the joint Adma Industry Park.
It was disclosed that the Chinese construction giant CGCOC will manage the construction of the park that will be finalized in less than a year.
The park will include huge Chinese heavy machinery manufacturers and local investors.
Further memorandums of understanding are expected to be signed about this project during Prime Minister Hailemariam’s visit to Hunan next month.
Some 55 delegation members drawn from different institutions and organizations of Hunan province have come with the leadership of He Baoxiang, vice governor of the province.
China is pioneer in industry park development in the country. The first industry zone in the country, Eastern Industry Zone, is constructed by Chinese investors.