Upgrading of the 112-km road to an all-weather standard is designed to will boost economic activities and promote poverty reduction in Ethiopia. An estimated 1.3 million people residing along the Bedele-Metu road corridor will benefit from the project.
Total cost of the work is estimated at US$81.7m. The road corridor will serve a broad range of economic development activities within the corridor, which borders other countries in the region. The project’s immediate beneficiaries include small holder farmers, coffee producers, traders and agro-based industries including a beer brewery and a sugar factory.
AfDB department director Gilbert Mbesherubusa said that the bank’s strategic plan for Ethiopia prioritises infrastructure development, given that the transport sector is critical under the strategy which aims at focusing on selected key projects with potential high impact on the country’s economic and social development. “The Bank is excited to make substantial contributions to the country’s ambitious programme in the sector,” he said.
Since 2001, the AfDB has approved US$347.5 million for five loans and one grant to fund the rehabilitation of 790km of roads in Ethiopia.