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Press Release

EDCF Provides Loans to Develop Power Network and Clean Water in Ethiopia

Date 2019.04.23 View 17209

The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman EUN, Sung-soo, Korea Eximbank”) announced on April 23 that it signed a loan agreement to provide a total of USD 264 million EDCF loan to the Ethiopian government for the National Electric Power Network Expansion Project and the Groundwater Irrigation and Rural Development Project in Ethiopia.

 

Korea Eximbank Senior Executive Director Shin Deog-yong met with the Ethiopian Minister of Finance Ahmed Shide and signed the loan agreement on April 22.

 

Located in northeastern Africa, Ethiopia (USD 861 per capita GDP, 100 million population as of 2017) has been posting strong annual economic growth, outpacing more than 8 percent per year over the past five years.

 

However, Ethiopia’s power supplies are insufficient to build factories and industrial complexes. Its water system is no different. In some areas, residents are still using excavated wells or river water as a source of drinking water due to the poor water treatment system.

 

In light of this, Korea Eximbank signed a loan agreement to provide a total of USD 170 million in EDCF funds to Ethiopia’s National Electric Power Network Expansion Project, which will create new power transmission line and build substations in the State of Southern Nations, Nationalities, and People of Ethiopia.

 

This is the largest single EDCF loan ever extended to Ethiopia. Upon completion, it is expected to contribute greatly to the alleviation of power shortages and economic development in the region by providing stable power to the planned site of factories and industrial complexes nearby.

 

In addition, the Groundwater Irrigation and Rural Development Project, which will be supported with USD 94 million, is a “comprehensive package project” to improve the agricultural value chain through rural development including irrigation development projects in the State of Oromia, Ethiopia.

 

It is expected to establish the sanitary drinking water system in the region, and furthermore, it will help transfer Korea’s experiences in rural development to Ethiopia.

 

Shin Deog-yong, a Senior Executive Director of Korea Eximbank, remarked, "Our support for Ethiopia’s top priority infrastructure projects in its national development plan will greatly contribute to enhancing cooperative relations between the two countries and expanding Korean companies' entry into Africa."