House approves loan agreement for urban WASH projects bill
Addis Ababa, June 20, 2024 (FBC) – During its 33rd regular session held today, the FDRE House of People’s Representatives (HoPR) today endorsed the draft bill on the loan agreement signed between the Ethiopian government and the International Development Association (IDA) for the Second Urban Water Supply and Sanitation projects.
Recall that this draft bill, among other four draft bills, was forwarded to the parliament by the Council of Ministers during its 35th regular session on June 14, 2024, for further consideration and final approval. The Council referred this bill to HoPR after ensuring that the loan scheme is in line with the country’s loan administration policy.
It is stated that the loan, worth 207,200,000 US dollars, will be utilized to enhance drinking water supply, sanitation, and hygiene services, as well as to bolster the performance capabilities of the sector. Notably, the loan is interest-free, with a service charge of 0.75%, and will be repaid over a period of 38 years, including a 6-year grace period.
In that regard, the parliament has examined and approved this loan agreement signed between the Ethiopian government and IDA for improving the implementation capacity of the aforementioned projects.
On the occasion, Chief Government Whip, Mr. Tesfaye Belejge presented the nature and significance of the loan scheme to the parliament. He reminded that the agreement is an interest-free and additional loan agreement to complete the projects designed by the program and to fill the budget gap.
The House referred the bills pertaining to the National Bank of Ethiopia Proclamation, the Special Fund for the Green Legacy Initiative, the Environmental and Social Impact Assessment of Development Projects, and Property Tax to the relevant standing committees for thorough examination and deliberation.