APA-Addis Ababa (Ethiopia) The government of Ethiopia and World Bank has signed a grant agreement amounting to $730 million to upgrade foreign trade routes along the Addis Ababa–Djibouti corridor.
The signing took place on Monday five weeks after the World Bank Group (WBG) board of directors approved the $730 million to Horn of Africa Regional Economic Corridor project.
The Ethiopian Ministry of Finance in a statement said the project aims to enhance the connectivity and logistics performance of Ethiopia along the strategic Addis Ababa-Djibouti road that handles more than 90 percent of Ethiopia’s maritime trade.
The route’s Mieso-Dire Dawa section is currently in poor condition, forcing road users to take a longer route through Mille, adding 146 kilometers to their journey.
The project will upgrade the 142km road into a four-lane expressway to reduce travel time and costs, as well as increase the transport capacity and efficiency.
It will also support local communities along the road by constructing education, health, and water infrastructures as well as secondary roads to link them with the main corridor, per the Ministry of Finance.
The project is part of the HoA Initiative, a regional partnership platform that promotes integration among countries in the region through infrastructure development.
Minister Ahmed has appreciated the World Bank for supporting the project and reiterated Ethiopia’s commitment to regional integration.
“As a current Chair of the HoA Initiative and Finance Minister, I strongly believe that infrastructure development is essential for achieving long-term growth and stability in our region,” Ahmed said.
MG/as/APA