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Parliament Approves U.S. $33 Million Loan for Road Construction

July 1, 2014

Ethiopian Parliament has approved a 33 million dollar loan from the Oil Producing & Exporting Countries (OPEC) Fund for International Development (OFID) and the Arab Bank for Economic Development in Africa (BADEA) for the Arba Rakate-Gelemso Micheat road construction and upgrading project.

The OFID extended a loan of 23 million dollars, while the BADEA provided a loan of 10 million dollars for the project, which will cost a total of 34.5 million dollars. The total amount of the loan covers more than 85pc for the project, with the reaming cost of the project covered by the Ethiopian Government.

The loan from the BADEA has a one percent yearly interest rate and, including the 10 year grace period, will be paid within 30 years. The loan from the OFID is also with a one percent annual interest rate and a one percent service charge. With its five years grace period, the loan will be payable within 20 years.

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Source: AllAfrica

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