Planned projects to develop a logistics corridor to Eritrea and Djibouti are bound to suffer delay, after the European Union (EU) decided to hold up disbursements of financial aid due to concerns in Brussels over the humanitarian situation unfolding in Tigray Regional State. The funding, which was earmarked in three instalments over the remainder of the year, was to be disbursed following the fulfilment of conditions that include unfettered humanitarian access for relief workers, the restoration of communication lines, as well as media access in the region.

EU officials in Brussels have suspended 88.5 million euros in direct budget support to the country's health and logistics sectors, the latter comprising two-thirds of the financial support. Close to 17.5 million euros was earmarked to support the health sector, including payments for prenatal care, additional health workers, and enhancing health facilities. The EU was committed to provide 1.2 billion euros in financial support over a period of six years beginning in 2014, of which 800 million dollars was allocated to development work.

The aid suspension arrivedlast week following the conflict that broke out in the northern part of the country between the federal government and former administration of Tigray Regional State. The conflict resulted in a refugee crisis where over 50,000 people, half of them children, fled to Sudan and the interruption of basic services such as water, electricity and communications, services that were recently partially restored.

The aid was particularly aimed at the maintenance of the trunk roads leading to the exits of the country, according to Erik Habers, head of cooperation at the Delegation of the EU to Ethiopia.

"This support has been ongoing for 25 years," he said. "Initially, it was going toward building these roads leading to other regions jointly with the government."

These trunk roads include routes to Djibouti and Bahir Dar, as well as roads leading to Modjo Dry Port. The funding was also going toward objectives that Ethiopia had established under the Common Market for Eastern & Southern Africa (COMESA), a free trade movement with 20 other member countries. Indicators here include the time it takes for one container to get from a port to a warehouse in the city, the amount of cargo handled over a period of time, and the commitment to work with a logistics council.

Though the release of the funds depends on the achievement of targets set by the government, there was space for negotiations where that was not the case, according to Erik.

"There are various reasons why targets may not be achieved," he said. "This includes instances that are outside of the government's control."

The decision to postpone the funding shows the level of seriousness with which this issue is viewed by the European Union. Johan Borgstam, head of the EU Delegation to Ethiopia, sees a lack of independent investigations on the numerous claims of human rights abuses coming from Tigray Regional State and widespread ethnic profiling remaining a cause for concern for the EU.

"It's in the interest of the government to get independent investigators and forensic experts," Borgstam told Fortune. "It'll be a clear signal for any country that there is nothing to hide."