Ethiopia’s lower house, House of Peoples’ Representatives (HPR), ratified loan agreement made with China Export-Import Bank (EXIM Bank of China) worth 250 million USD. The loan is going to be used for finance major infrastructure construction that will be undertaken in the country.

According to Xinhua, the loan will be used to finance the construction of 400 kilovolt power transmission project in southern part of Ethiopia, Genale Dawa III – Yirgalem II – Wolayita Sodo II – Hawassa II.

The loan agreement was signed back in December in China. It is composed of 2 parts; 195 million dollars for building the transmission line and the remaining about 54 million dollars for undertaking major substation parts of the project.

It was in September 2014 that Ethiopian Electric Power entered into agreement with China Engineering Corporation Limited for Genale Dawa III – Yirgalem II – Wolayita Sodo II – Hawassa II. Another supplementary contract was signed a year after the first agreement.

Source: Xinhua