Ethiopian government secured a U.S $ 100 Million promised loan from the Korean Export Import (EXIM) Bank. The loan is extended for financing part of the Modjo-Hawassa highway project.

The loan agreement was signed earlier and it was on Monday, June 9, 2014 the agreement was
given a green light from the House of Peoples’ Representative through a ratification bill.

Modjo-Hawassa highway is a 218 Kilometers road and it is going to be constructed in two
phases. The first phase will cover a total distance of 93 Kilometers and stretches from
Modjo to Ziway. This phase is also divided in to two lots.

From the total cost of the construction, which is U.S $ 350 Million, U.S $ 128.5 Million is already secured as loan from the African Development Bank for the construction of the first lot.

The loan obtained from the Korean EXIM Bank is going to be used for the second lot that stretches 37 Kilometers. This lot is going to extend from Meki to Ziway.

The loan from the Korean EXIM Bank will be paid in 40 years with a period of grace for 15 years.

Source: Fortune