Project ID: 980

China Eximbank provides $349 million preferential buyer's credit for Addis Ababa-Adama Expressway Project (Linked to #30886, #589, #101)

Commitment amount

$ 454996539.9

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Ethiopia

Sector

Transport and storage (Code: 210)

Flow type

Export Buyer's Credit

Concessional

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2009

Implementation

2010

2010-04-01

Actual start

Completion

2014

2014-05-05

Actual

Geography

Description

On June 27, 2009, the Director-General of Ethiopian Roads Authority (ERA) Zaid Woldegebriel and a representative from the China Communication and Construction Company (CCCC) signed a deal to construct a new eight-lane asphalt expressway stretching 78 km from Addis Ababa to Adama, Ethiopia's first expressway. The project sought to reduce the transportation time on Ethiopia's main import-export route from three hours to one hour. The total estimate cost of the project was $612 million. On November 8, 2009. China Eximbank provided a $349,000,000 preferential buyer credit (PBC) loan to cover 85% of the cost of the project, and the Ethiopian government covering the balance. Construction began in April 2010. The terms of the loan are as follows: 20 year maturity, 7 year grace period, 2% interest rate. According to Samson Wondimu, the Communication Director of ERA, construction was 33.6% complete as of April 2012. This project has provided the groundwork for the use of innovative technology via tolls and creates local employment opportunities. It is also expected to contribute to the development of roadways between capital and regional locations, such as Hawassa and Bale. A completion ceremony for the first phase of the project was held on May 5, 2014. An additional loan from China Eximbank for the expressway and two feeder roads worth USD 320M was committed in late 2013 for phase two of the project (project ID #30886). The Addis-Adama Expressway (AAE) is managed by Ethiopian Toll Road Enterprise (ETRE). The expressway is fully access controlled. This 78 km expressway runs from Addis Ababa to Adama. Traffic volume exceeds 20,000 vehicles per day on the two-lane road trunk road between Addis Ababa and Adama (see 'Chapter 5: Infrastructure Sector Development Status and Future Plans considering Regional Corridor Development'). In October 2019, an official from the Ethiopian Toll Roads Enterprise (ETRE) reported that around 33 million cars had used the toll expressway over the previous five years, earning around $34 million of revenue for the country. The toll road reportedly generated $13.5 million of toll revenue in Fiscal Year 2019/2020.

Number of official sources

11

Number of unofficial sources

11

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Ethiopia [Government Agency]

Implementing agencies [Type]

China Communications Construction Co., Ltd. (CCCC) [State-owned Company]; Government of Ethiopia [Government Agency]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grace period

7 years

Grant element

56.00770973%

Gurarantee provided

No

Insurance provided

No