House of Peoples Representatives (HPR) has approved on December 8, 2015, loan agreements with the International Development Association (IDA), the government of Italy and Agence Francaise de Development (AFD), Ethiopian News Agency reported.

The first loan agreement made with IDA is worth USD 5.1 million. It will be used for the financing of Tana and Belese Integrated Water Resources Development Project.

Moreover, HPR ratified loan agreements with IDA worth USD 600 million. The agreement will be used for the financing of Enhancing Shared Prosperity via Equitable Service-ESPES project.

The loan agreements made with IDA will be paid back in more than 30 years after a grace period of six years.

The loan agreements made with AFD and the government of Italy amounts to 20 and 15 million Euros, respectively. The agreements are made to partially finance clean water and sanitation program of small and medium towns.

The loan agreement with AFD specifies the term of the payment to be 18 years after seven years of grace period with 1.72 percent regular interest.

The loan agreement with Italy government is expected to be refunded within 13 years following a grace period of 27 years with no interest.

Source: Ethiopian News Agency