Ethiopia secures $100 mln from Korean Bank

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Addis Ababa, 18 June 2014 (WIC) - The 100 million dollar loan promised by the Korean Export Import (EXIM) Bank to finance part of the Modjo-Hawassa high way project is secured by the government of Ethiopia.   

The loan agreement was signed with the Bank and a bill for its ratification was approved by the Parliament on last Tuesday, June 9, 2014.    The 218-Km long Modjo-Hawassa high way will be constructed in two phases.

The first phase, which is estimated to cost 350 million dollars, will cover a distance of 93Km. It stretches from Modjo to Ziway. This phase is, in turn, divided in two lots.

The construction of lot one, which run from Modjo to Meki, will be constructed by the 128.5 million dollar loan already secured from the African Development Bank (AfDB).

The recent loan obtained from the Korean EXIM Bank will be used for the construction of the second lot of the first phase of the road, which 37 Km long, extending from Meki to Ziway, according the loan agreement.

The loan from the AfDB and Korean EXIM Bank covers a sum of 228.5 million dollars out of the total cost needed for the construction of phase one of the road, which covers the distance from Modjo to Ziway.

The remaining amount of the cost of construction will be covered from the coffer of the government. (