Ethiopia and the Export-Import Bank of Korea on Thursday signed a $63 million loan agreement for the construction of bus rapid transit (BRT) corridor B6 in the Ethiopian capital city, Addis Ababa.
The agreement followed the five cooperation agreements the two countries signed during a state visit of Ethiopian Prime Minister Abiy Ahmed’s in South Korea late last month.
The five cooperation accords include a memorandum of understanding on mutual waiver of visa requirements for holders of diplomatic passports, memorandum of understanding on the establishment of a joint ministerial commission as well as memorandum of understanding on cooperation relating to standardization, certification, conformity assessment and technical regulation.
The latest agreement involves s financing the first bus rapid transit having 11.05 km corridor B6 runs from places called Torhailoch Square to Addis Ababa Bole Airport via Pushkin Square, Gotera and Wello Sefer (Torhailoch Square-Pushkin Square-Gotera-Wello Sefer-Bole Airport).
Bilateral Cooperation Director at the Ministry of Finance, Kokeb Misrak, Deputy Head of Addis Ababa Transport Bureau, Mesfin Mengistu, and Korea Eximbank Africa Group Director, Mr. Moon Jae Jeong signed the agreement in Addis Ababa.
With a 15-year grace period and interest rate of 0.01 percent, the loan will be repaid within 40 years.
Corridor B6 sees the construction of two terminals and 17 bus stations at 630 meters interval on average.
Once completed, the BRT will contribute its share towards easing transport problem in the capital city, it was noted at the signing ceremony.
MG/abj/APA