Sponsored Contents | Mar 28,2022
November 30 , 2019
By SEBLE WONDEMAGEGN ( FORTUNE STAFF WRITER )
The Jimma-Chida road project will finally begin construction after two years of stoppage as a result of a lack of financing. The project was brought back on track after Japan extended 89 million dollars for construction to begin.
The agreement was signed by Admasu Nebebe, state minister of Finance, and Daisuke Matsunaga, ambassador of Japan to Ethiopia, on November 26, 2019. The financing for the project comes a year after a bid was announced for the upgrading of the project from gravel to asphalt concrete.
"Two years ago Ethiopia’s debt was high, so Japan had doubts about extending the loan," said Yetimgeta Asrat, deputy director-general of the Ethiopian Roads Authority.
At the time, Ethiopia’s external debt stood around 25 billion dollars, according to the International Monetary Fund’s (IMF) 2016/17 report. But the debt level did not decrease thereafter. It stood at 26.9 billion dollars, a large share of which is owed to state-owned enterprises, by last March.
Japan’s government changed its mind after Prime Minister Abiy Ahmed (PhD) held talks with Japanese Prime Minister Shinzo Abe at the seventh edition of the Tokyo International Conference on African Development (TICAD), held in August this year, according to Yetimgeta.
The Jimma-Chida road, which has a mountainous terrain, is about 80Km long and will have a seven-metre carriageway and ditches on both sides of the road. Expected to create a connection between the Oromia and Southern Nations, Nationalities & Peoples (SNNP) regional states, the road is also expected to include bridges and be finalised in four years.
The road project was launched in conjunction with the Sodo-Sawla road that extends for 161Km across the SNNP Regional State. Financed for 1.8 billion Br by the African Development Bank (AfDB), the first phase of the project, extending from Sodo to Dinke, has already progressed 15pc of the way, is expected to be finished by May 2022 and is being constructed by the China Railway Seventh Group.
The second phase, extending from Dinke to Sawla and expected to be finished by January 2023, has reached a five percent completion rate and is being constructed by Beijing Urban Construction Group. All three of the projects are expected to benefit 1.4 million people, specifically smallholder farmers.
Ethiopia has been increasing its road networks. Expanding at an annual rate of 5.5pc, the length of paved roads reached 126,773Km in the last fiscal year. Last year alone, the government spent 33.1 billion Br to construct and maintain roads, a 2.4pc increase from the previous year.
Japan has contributed to the construction of roads in Ethiopia through financing. In the past decade, loans by Japan have been extended to road projects in Degen, Abay Bereha, Sululta and Debre Markos.
“Apart from financing, they have also contributed in-kind and technical assistance," said Yitimgeta.
Henok Semaw, dean and lecturer on business and economics at Haramaya University, believes that while the road project will facilitate trade, the government should strictly follow them up.
“The best means of reducing the burden of debt is to complete such projects on time,” said Henok. “Finishing infrastructure projects on time will make the generation of foreign currency all the more successful.”
PUBLISHED ON Nov 30,2019 [ VOL 20 , NO 1022]
Sponsored Contents | Mar 28,2022
Radar | Jul 18,2020
Life Matters | May 01,2020
Radar | Feb 06,2021
Fortune News | Apr 25,2020
Commentaries | Dec 07,2019
Radar | Mar 16,2019
Radar | May 14,2022
Radar | May 18,2019
Radar | Apr 10,2021
November 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
November 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
May 21 , 2022
There was a great deal of handshaking and patting each other on the back at the Hyatt...
May 14 , 2022
Diana Yohannes is one of those actively engaging in social media platforms with her T...
May 7 , 2022
The Ethiopian Economic Association (EEA) recently proposed the formation of a macroec...
April 30 , 2022
There is no ambiguity in the UNDP's assessment of Ethiopia’s economic performance a...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Adulteration is getting out of hand. Consumers in Ethiopia are being left to their ow...
Or see contact page