Ethiopia’s House of People’s Representatives (HPR) has unanimously approved a concessional loan agreement worth USD 145.8 million with the International Development Association (IDA) to finance the first phase of the Power Sector Reform, Investment, and Modernization Project.
The agreement was ratified during the second regular session of the House’s first year under the 7th Parliament, following deliberations on a draft proclamation approving the supplementary financing arrangement between the Ethiopian government and the IDA.
Presenting the agreement to lawmakers, Government Chief Whip Fekadu Tessema said the financing would support the modernization of Addis Ababa’s electricity infrastructure through the expansion of transmission networks, construction of new substations, upgrading of existing facilities, and installation of underground power lines.
Fekadu noted that the project is expected to enhance the reliability and efficiency of the capital’s electricity supply, particularly as Ethiopia prepares to host the 32nd Conference of the Parties to the United Nations Framework Convention on Climate Change (COP32) in 2027.
He further explained that the loan carries favorable concessional terms, including a six-year grace period and a 31 year repayment period, aimed at reducing the government's financial burden.
The financing is also expected to support Ethiopia’s broader debt management strategy and contribute to sustainable economic development by strengthening the country’s power infrastructure.
Following its deliberations, the House unanimously ratified the supplementary loan agreement of USD 145.8 million under Proclamation No. 1441/2026.
Source: Ethiopian News Agency
