AFD’s first concessional sovereign loan to Ethiopia

AFD’s two first sovereign loans to Ethiopia were signed on December 18th, 2013, by Ethiopia’s Finance and Economic Development Minister, Ato Sufian Ahmed and France’s Foreign Trade Minister, Ms. Nicole Bricq. These concessional financings of a total amount of 70 million Euros will be used to finance the construction of high-voltage transmission lines and substations in key areas of industrial development near Addis Ababa and for the construction of new sanitary landfill and associated solid waste management infrastructure in Addis Ababa.

The first 50 M€ loan will finance the erection of 62 kilometres of 400 kV and 230 kV transmission lines, and the construction of the corresponding new substations. The financing will be on-lent by the Government to the public power utility in charge of implementing the project.

The second 20 M€ loan will finance the construction of infrastructure including a new sanitary landfill, its access road and three transfer stations dedicated to both waste sorting and recycling. This financing shall be on-grant to the Addis Ababa City Government.

The two loans are a confirmation of AFD’s commitment in these two sectors. In the energy sector, AFD is cofinancing the Ashegoda wind farm (120 MW) near Mekele and other interventions under preparation include the upgrading of the grid management infrastructure and the development of geothermal energy. In the urban sector, AFD is involved in the financing of urban infrastructures, via projects such as water networks and urban transport.