Ethiopia Approves $145.8mln World Bank Loan Ahead of COP32

Ethiopia’s parliament has approved a 145.8 million US dollar concessional loan from the World Bank Group to modernise Addis Ababa’s electricity transmission network ahead of the country’s planned hosting of the 32nd United Nations Climate Change Conference (COP32).

The financing from the International Development Association (IDA) will fund the first phase of the Power Sector Reform, Investment and Modernization Project, including the construction of new substations, upgrades to existing facilities and the installation of underground transmission lines.

Government Chief Whip Fikadu Tesema told lawmakers that the investment would help improve the reliability of electricity infrastructure and support a more dependable power supply for the international climate summit.

The loan is repayable over 31 years, including a six-year grace period. Fikadu said the financing was consistent with Ethiopia’s debt financing and management strategy and would contribute to sustainable economic growth.

The House of Peoples’ Representatives unanimously approved the ratification of the loan agreement during its second regular session of the first year of the seventh parliamentary term. The agreement was ratified under Proclamation No. 1441/2019, completing the legislative approval process for the financing.

Source: FSX Business News