In a ceremony held at BADEA’s Headquarters in Khartoum, on Sunday 5 March 2006, 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 $ 3.6 million to help finance Wolisso Rural Electrification Project.
The signing ceremony was attended by H.E. KADAFO M. Hanfare, the Ambassador Extraordinary and Plenipotentiary of the Federal Democratic Republic of Ethiopia in Sudan and by H.E. Mr. Medhat S. Lotfy, the Director General of BADEA.
The project aims at achieving the objectives of the economic and social development plan, which includes among its components, the provision of electricity for rural areas. The project will in addition contribute to the improvement of the standard of living of population and the reduction of the poverty in the project area, in addition to the reduction of exodus from the rural areas to the cities.
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.