$217m AfDB loans fund Horn of Africa road project
APA-Addis Ababa The Board of Directors of the African Development Bank Group on Wednesday approved $217 million in loans to fund the construction of a road which, the Bank said, will boost regional integration and trade between Kenya, Somalia, and Ethiopia. In a statement, the African Development Bank said the loans comprise $75 million from the…
APA-Addis Ababa (Ethiopia) The Board of Directors of the African Development Bank Group on Wednesday approved $217 million in loans to fund the construction of a road which, the Bank said, will boost regional integration and trade between Kenya, Somalia, and Ethiopia.
In a statement, the African Development Bank (AfDB) said the loans comprise $75 million from the non-concessional window of the Bank Group and $142 million from the concessional lending division, known as the African Development Fund.
The $223.3 million for the road project located in Kenya’s North-eastern region covers the 740 km Isiolo-Mandera corridor.
The Kenyan government will contribute $6.3 million for the road construction which will reportedly be carried out by China Communication Construction Company (CCCC) and will take 36 months to complete.
When it’s complete, the road “will enhance regional integration and trade between Kenya, Somalia, and Ethiopia,” the Bank said.
About 867,000 people who reside around the project area are expected to benefit from the initiative.
The road network, including the 142 km ElWak-Rhamu stretch, is one of the four priority corridors identified under the Horn of Africa Initiative, driven by the governments of Kenya, Ethiopia, Somalia, Sudan, Eritrea and Djibouti.
Apart from the African Development Bank, the World Bank and European Union support the initiative.
“The road project is expected to contribute to the socio-economic development of communities along the corridor, which is characterized by high poverty levels and prone to insecurity,” said AfDB.
