The Ethiopian government has secured a US$100mn loan from the Korean Export-Import (Exim) Bank.

The loan agreement, which is to finance part of the Modjo-Hawassa highway project, was given a green light from the House of Peoples’ Representative through a ratification bill.

The Modjo-Hawassa highway is a 218-km road to be constructed in two phases. The first phase will cover a total distance of 93km and stretches from Modjo to Ziway.

From the US$350mn total cost of the construction, US$128.5mn has already been secured as a loan from the African Development Bank (AfDB) and the loan to be obtained from the Korean Exim Bank is to be used to extend the highway from Meki to Ziway.

The remaining amount of the cost of construction will be covered by the Ethiopian government.

The US$100mn loan from the Korean Exim Bank will be paid in 40 years and includes a 15-year grace period.