The mentioned loans extended by those agreements granted on highly concessional terms and in accordance with BADEA's Seven Five-Year-Plan (2015-2019), and are allocated as follows: -
1. The Federal Republic Democratic of Ethiopia: -
The Federal Republic Democratic of Ethiopia received a Loan of US $ 20 million to help finance the Shambu- Agamsa road upgrading project. The loan will be repaid in 30 years, including a grace period of 10 years, and at an annual interest rate of 1%.
The road project aims to contribute to the development, expansion and integration of the national road network and to link the Aroma region with various regions in Ethiopia and the capital, Addis Ababa.
The project also aims to improve traffic efficiency, reduce transport time and vehicle operating costs, thereby lowering transport costs and facilitating the transport of agricultural products in the project area to the other regions of the country, and ensure that the population will have access to social service centres, and to contribute to the support of economic and social development in the country.
2) The Republic of Burundi
BADEA extended a loan of US $ 15 million, to the Republic of Burundi to help financing the construction of the National Road No. 16 "Bururi-Getiga" Trunk No. 01 "Bururi-Gafoor" project. The loan is repaid in 30 years, including a 10-year grace period, and an interest rate of 1% per annum
The road project aims to contribute to the development of the road network, to facilitate the movement of goods and passengers to the area, to reduce the cost of transportation, and to remove isolation from villages located on path and facilitate access to administrative and social centres, in addition, to contribute to economic and social development and alleviating poverty for the people of the region.
The above-mentioned agreements were signed on behalf of the Arab Bank for Economic Development in Africa, by H.E. Eng. Yousef Bin Ibrahim El-Bassam, Chairman of the Board of Directors.
The beneficiary countries were represented by the officials designated by their respective countries as follows: H.E. Dr. Abraham Tekeste, Minister of Finance and Economic Cooperation for the Republic of Burundi, H.E. Dr. Domitien NDIHOKUBWAYO, Minister of Finance, Budget and Privatization for the Republic of Burundi.
