In a ceremony held at BADEA’s Headquarters in Khartoum, on Wednesday 16 November 2005, a loan agreement was signed between the Federal Democratic Republic of Ethiopia and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement BADEA extends to Ethiopia a loan of US $ 6.5 million to help finance Assosa-Kurmuk Road Project.

The signing ceremony was attended by H.E. the Ambassador of Ethiopia in Khartoum and by H.E. Mr. Medhat S. Lotfy, the Director General of BADEA.

 The Assosa-Kurmuk road project, which is a regional project linking Ethiopia with Sudan, aims at contributing to the national, regional and economic development in Ethiopia by widening and integration of the road network connecting the various regions and by connecting the project area specifically with the roads network. The project will facilitate the traffic of the passengers and goods and trade with the Republic of Sudan; ensure the road safety of the passengers and assures their access to the social services (schools, medical centres); and reduce the costs of transport. The project will ultimately contribute to the poverty reduction of the populations in the project areas. The project is co-finance by the Saudi Fund for Development in addition to the government of Ethiopia

The loan will be repaid in 30 years including a grace period of 10 years and at an annual interest rate of 1%.

 Including this new loan, the total commitments of BADEA to the Republic of Ethiopia will amount to US $ 95.36 million.