China grants $349m for Ethiopia’s road construction

November 10, 2009 (ADDIS ABABA) – China has signed a 349 million US Dollar loan to Ethiopia to finance the horn of Africa’s nation first modern highway road project.

Construction of the 79 kilometers expressway that links the capital, Addis Ababa with country’s second largest town, Adama will start next year by china road and Bridge Corporation.

The financial grant signed on Sunday, makes Ethiopia as one of the first beneficiaries of the new china- Africa development funding.

In addition to the roads, Chinese companies have signed deals to build dams, power lines and upgrade telecommunication network in recent years.

The construction of the expressway is said to ease traffic flow, and to provide high quality transportation system and boost all types of service between the capital and the rest southern region of the country.

Chinese and African leaders over the weekend held a two- day forum, china – Africa cooperation (FOCAC) forum, in Egypt to design on ways to further bolster the booming economic and political ties.

Currently, China is Africa’s biggest partner on various sectors, with its direct investment in Africa rocketed from US$ 491 million in 2003 to US$ 7.8 billion in 2008. Africa-China Trade volume has seen an increase of tenfold over the decade.

Last year, china-Africa trade reached US$ 106.8 billion- a rise of 45 percent in one year.

(ST)