Ethiopia, World Bank sign $1.3 bln grant, loan agreements

Addis Ababa, September 29, 2017 (FBC) – Ethiopia and the World Bank (WB) have signed grant and loan agreements amounting 1.3 billion US dollars today.

The agreement was signed here by Dr Abrham Tekeste, Minister of Finance and Economic Cooperation of Ethiopia and Carolyn Turk, World Bank Country Director for Ethiopia, Sudan and South Sudan.

According to the agreement, 700 million US dollars of the total amount will be used for the implementation of the Enhancing Shared Prosperity through Equitable Services (ESPES) Program of Ethiopia.

This additional financing will support the achievement of the program’s objective of improving equitable access to basic services and strengthen accountability systems at the decentralized level in five sectors such as education, health, agriculture, water supply and sanitation, and rural roads through inter-governmental fiscal transfers.

The remaining 600 million US dollars grant is aimed at supporting the Productive Safety Net Program (PSNP) that has been in operation in the country for the last 12 years and is one of the world’s largest safety net programs in the world.

Run by the government of Ethiopia, the PSNP pools money from 11 donors, including the PSNP provides regular cash or food transfers to 8 million people; currently 4 million of them are in areas affected by the ongoing drought.

Its food-for-work component supports public works programs related to landscape restoration, irrigation, and agro-forestry.