Ethiopia inks $296M deal with World Bank, EU

Following recent agreements with two major donors, Ethiopia is poised to receive as much as ETB2.6 billion ($295.7 million) in aid to help develop its basic services and water supply systems. European Commission Delegation Head Ambassador Tim Clarke signed a grant of EUR $150million ($204.7 million) with Ethiopian State Minister of Finance and Economic Development Mekonnen Manyazewal, who said the funding “would be utilized for financing key pillars of five-year plans enhancing basic services at state and local level.” Earmarked for the pro-poor Protection of Basic Services (PBS) Program, which seeks to enhance the state’s capacity to provide funds for the education, health, agricultural and natural resources sectors, the E.C. grant will be disbursed over three years, with an initial EUR80 million ($107.9 million) to be spent this year. At a separate ceremony, World Bank Country Director for Ethiopia and Sudan Ishac Diwan agreed to provide a $65 million loan and a $35 million grant to the country for water supply urbanization and sanitation projects in Addis Ababa, Jimma, Gondar, Makalle and Awassa.

Source: Ethiopia: Country Signs Grant, Loan Accords With EC, World Bank (The Ethiopian Herald)

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