Ethiopia Signs USD 1.3 billion Financing Agreement with the World Bank

Tigrai Online, Sept. 29, 2017

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Today, September 29, 2017, the Federal Democratic Republic of Ethiopia signed two Financing Agreements amounting to USD 1.3 billion (approximately ETB 30.37 billion ) in the form of loan and grant with the World Bank at a ceremony held at the Ethiopian Ministry of Finance and Economic Cooperation (MoFEC).

The proceeds from the first Financing Agreement amounting to USD 700 million credit will be used for the implementation of the Enhancing Shared Prosperity through Equitable Services (ESPES) Program. This Additional Financing will support the achievement of the Program objective of improving equitable access to basic services and strengthen accountability systems at the decentralized level in five sectors namely education, health, agriculture, water supply and sanitation, and rural roads through inter-governmental fiscal transfers.

The second Financing Agreement amounting to USD 600 million in the form of grant will be used to finance the implementation of Ethiopian Rural Productive Safety Net Project (ERPSNP). The proceeds from the Grant will be used for the improvement of the effectiveness and scalability of Ethiopia’s rural safety net system.

H.E. Dr. Abraham Tekeste, Minister, Ministry of Finance and Economic Cooperation and Ms. Carolyn Turk, World Bank Country Director for Ethiopia Sudan and South Sudan, signed the agreements on behalf of the Ethiopian Government and the World Bank respectively.