A 275 million dollar loan agreement was approved by Parliament last week, to support the second phase of the Urban Water Supply & Sanitation Project. Set to be implemented over the next three years, the project follows negotiations between Ethiopia and the International Development Association (IDA). The Chief Whip Tesfaye Beljige (PhD), presented details of the loan agreement to lawmakers and said that the project focuses on enhancing the supply of clean drinking water and improving sanitation services through policies and programs. Tesfaye noted that the second phase of the project has been operational in previous years and emphasised that the additional loan agreement aims to complete the ongoing projects and address the budget shortfall. The terms of the loan include an annual interest rate of up to 0.5pc on the concessional loan and a service fee of up to 0.75pc for the management of the funds by the IDA. The loan has a grace period of six years and is to be repaid over 38 years.
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