Ethiopia, Kenya in US$ 700 million road deal

(08 November 2011, The Africa Report)--Ethiopia and Kenya have signed a US$ 700 million agreement for the construction of the Nairobi-Moyale-Addis Ababa road network linking the two East African countries.

The road project, to be bankrolled by a loan from the African Development Bank, will cover more than 800 kilometers and implemented in the next three years.

Officials from Kenya and Ethiopia signed the deal on road transport services and Memorandum of Understanding (MoU) in development, management and utilisation of transport corridor on Monday. Diriba Kuma, the Ethiopian Minister of Transport and his Kenyan counterpart, Amos Kimunya, signed on behalf of their countries.

"The agreement indicates the commitment of the two governments to interconnect themselves through road and rail transport, which will bring immense socio-economic benefits to both countries," Kuma said.

"The agreement would further cement our multifaceted, historical and traditional bonds of friendship and cooperation. Kimunya said the deal was a milestone in the Ethio-Kenyan mutual efforts to develop linkages between the two countries.

"The completion of the Nairobi-Moyale-Addis Ababa road network will enable our countries to realise the huge potential in our relations particularly in boosting people to people interactions and cross border trade," Kimunya said.

"This road link is also critical to the fulfillment of the regional integration agenda of the Eastern Africa region, Common Market for Eastern and Southern Africa and beyond."

Resident Representative of the AfDB, Ethiopia country office, Washington Wakyendo, said the deal was an expression of the two countries' desire to enhance friendship and to promote economic cooperation on trade, transport and communications. The agreement will help landlocked Ethiopia to use alternative ports in Kenya for trade.
Source: The Africa Report

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