Ethiopia’s House of People’s Representatives Tuesday endorsed loan agreements amounting $640 million with Italy and two international development partners.The first loan agreement made with the International Development Association (IDA) amounts to $ 5.1 million.
The agreement, which incorporated six years of grace period, will be utilized to finance Tana and Belese Integrated Water Resources Development Project in northern part of the country.
Similarly, the House ratified additional loan agreement with the International Development Association worth $600 million. The agreement provides for the financing of the Enhancing Shared Prosperity through Equitable Service – ESPES project.
Both agreements with IDA are expected to be refunded in more than 30 years after a grace period of six years.
The loan agreements signed with Agence Francaise de Development and the government of Italy were also approved by the House. The agreements amount to $20 million and $ 15 million, respectively.
Both loan agreements are meant to partially finance clean water supply and sanitation program of small and medium towns.
The agreement with Agence Francaise de Development (AFD) extends the term of payment to 18 years following 7 years of grace period with 1.72 per cent regular interest.
The agreement with the government of Italy also terms the loan to be paid back within 13 years after a grace period of 27 years with no interest.
No comments:
Post a Comment