House Approves Loan Agreements with Arab Bank, International Development Association

Addis Ababa, June 3, 2025 (ENA) -- The loans and financial assistance obtained from the Arab Bank will enhance the economy through job creation, Government Chief Whip Tesfaye Beljige told the House of People's Representatives (HPR). 

In its regular session today, the HPR has endorsed draft proclamations.

Among the draft bills, is the loan agreement between Ethiopia and the Arab Bank for Economic Development in Africa for effective integrated industrial development parks and job creation projects for the youth.

The Government Chief  Whip said 49.550 million USD is obtained from the Arab Bank for Economic Development in Africa in loan and grant.

 

It will be used to expand irrigation schemes around agricultural industrial parks, build capacity, and enhance productivity, he added.    

He also stated that the money will be used for the construction of irrigation tunnels, water reservoir and water distribution tunnels on 8,000 hectares of land.

According to the agreement, 20 million US dollars will be released in the first phase and the remaining 29.550 dollars in the second phase.

The loan has five-year grace period and a 20-year repayment period.

On his part, Finance State Minister Eyob Tekalign said the finance will create conducive situation for industries to purchase inputs from farmers in surrounding areas.

 

The House has reviewed and approved the draft proclamation. 

The HPR has also approved the loan agreement between Ethiopia and the International Development Association (World Bank Group).

The draft bill is intended to amend integrated and resilience technology-assisted health services for women and girls.