Ethiopian government will pay 15 percent upfront while the remainder of the fund for the industrial park project is a concessional loan arrangement with the government of China
August 14, 2019
Ethiopia and China are partnering on a new $300 million dollar Industrial Park project, according to a report by Chinese news source – Xinhua.
The Park will be constructed in Adama (Nazareth), in Oromo regional state, about 100 kilometers east of the capital Addis Ababa. When completed this industrial park will be the second one for Adma city.
The Chinese firm, China Civil Engineering Construction Corporation (CCECC), constructed the existing Adama Industrial Park at a cost of $U.S146 million dollars; it was inaugurated in October 2018.
Construction of the new industrial park could start as early as the end of 2019 according to Xinhua report. 100 hectares of land is allocated for it.
Works on land acquisition and financing-related procedures are already underway.
In terms of finance, 85 percent of the funding will be covered with a concessional loan from the Chinese government which is said to be of “low” interest rates.
The Ethiopian government will be covering the remaining 15 percent of the funding for the project.
Mr. Liu Yu, who is the economic and commercial counselor at the Chinese Embassy in Ethiopia, is quoted by xinhua as saying “The planned industrial park will focus on attracting firms engaged in equipment manufacturing.”
When completed, the project is expected to create as many as 25,000 jobs.
China has a strong business presence in Ethiopia in the areas including in infrastructure development and manufacturing sector – mainly textile industry.
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