Ethiopian parliament approves Sh35 billion loan for urban water projects
This project forms an integral component of the government's comprehensive approach to tackling the nation's water and sanitation issues.
The Ethiopian Parliament has approved a substantial loan of $275 million (Sh35 billion) to enhance urban water infrastructure across the country.
This significant investment aims to address the critical water supply challenges in urban areas, ensuring sustainable access to clean water for millions of residents.
The initiative reflects Ethiopia's commitment to improving public health and supporting urban development through enhanced water management systems.
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The loan agreement is between the government of Ethiopia and the International Development Association (IDA).
After a successful discussion, the Ethiopian government unanimously approved it through Proclamation No. 1335/2016.
The urban project forms an integral component of the government's comprehensive approach to tackling the nation's water and sanitation issues.
Through substantial investments in essential infrastructure projects, the government endeavours to enhance the well-being of its people and advance the country's broader developmental objectives.
According to Chief Government Whip, Mr. Tesfaye Belejge, the purpose of this additional loan is to ensure the completion of ongoing projects from the previous loan agreement and to address any budget shortfalls.
The Chief Whip detailed that the new $275 million loan (Sh35 billion), will be utilised over the next three years, with a specific emphasis on enhancing the second urban drinking water and sanitation initiative.
Additionally, he added that the loan is interest-free and that the government will be required to pay 0.5 per cent annual interest on any unused portion of the loan. Meanwhile, the managing bank will charge a service fee of up to 0.75% for overseeing the loan.
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