Chinese Government provides $12 million interest-free loan for ring road and low-cost housing in Addis Ababa

In 2001, the Chinese government provided a $12 million interest-free loan to the Government of Ethiopia in support of the construction of the ring road project in the capital of Addis Ababa and the construction of low-cost houses in the metropolis. The ring road was constructed by the China Road and Bridge Corporation (CRBC) between 1998 and 2004 at a total cost of $98 million. According to a report from the International Conference on Multi-National Construction Projects, the project included the construction and upgrading of 33.4 km of highway, and the upgrading of 14.2km of bituminous asphalt concrete surfacing and the construction of 19.2km of new road, 41 new structures, 6 flyover bridges, 23 pedestrian bridges, and 12 culverts. This project was initiated on March 6, 1998 and completed on June 28, 2004.

Additional details

Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

2

Number of total sources

8