Officials of the Ministry of Transport have approved a toll tariff for the Modjo-Batu Expressway, which will be open to traffic beginning this week.

The approval comes after the Ethiopian Toll Roads Enterprise proposed the toll fees for the expressway two weeks ago, built at the cost of 78.8 million Br a kilometre. The expressway is a part of a project connecting the town of Modjo with Hawssa city, divided into four lots at an estimated cost of 354 million dollars. It was designed by Techniplan International Consulting, an Italian firm, in partnership with Ethio-Infra Engineering Plc. This domestic firm has participated in dozens of projects, including the one billion Birr Maitsebri-Shire road project stretching 69Km.

Drivers will be charged 0.77 Br a kilometre, while heavy trucks are to pay 1.05 Br. It is similar to the fees charged by toll stations on the Addis Abeba-Adama Expressway, a flagship project launched seven years ago after being constructed for 11.2 billion Br (132 million Br a kilometre).

Inaugurated by Prime Minister Abiy Ahmed (PhD) almost three months ago, the newly opened expressway would cut the travel time from Modjo to Meqi from one and half hours to 40 minutes. It is the third express road project to operate after the 84.7Km Addis-Adama and the 220Km Dire Dawa–Dewale highway, built for 5.9 billion Br. The Modjo-Batu Expressway is designed to handle 27,000 vehicles a day and significantly improve the revenues of the Enterprise, which stood at 382 million Br last year.

It will bring an economic benefit to all actors on the corridor, according to Matiwos Ensermu (PhD), professor of logistics and supply chain management at Addis Abeba University. It would also make logistical work for the factories at Hawassa Industrial Park more efficient.

"Time is one key factor in logistics," said Matiwos.

Kassahun Gofe, a state minister for Transport, sees the highway's opening as boosting trade activities with the central market and addressing the capital's supply gap. The high cost of living was taken into consideration in the administration's decision not to adjust the tariff, although this may change in the future, according to Kassahun.

The construction of infrastructure to support toll stations was not included in the initial project design, Kassahun told Fortune. However, the government continued setting up toll booths and integrating tolling systems, where 40 booths were planned, but half were built to start operation.