Ethiopia and South Sudan have agreed to a $738 million project to connect the two countries by road. The project, which initially involves building a 220-kilometre cross-border road, was signed in May last year.
The project, which will be financed by Ethiopia under a loan to be repaid by South Sudan, will begin once South Sudan’s president gives the final mandate, after presenting the project to the transitional legislative council last week, Business Insider reported.
The Ethiopian Foreign Ministry said the project aims to increase connectivity and enhance economic relations between the two countries, which share some borders. The ministry considered that the project indicates the advanced cooperation and mutually beneficial partnership between Ethiopia and South Sudan, and the growing interdependence of the East African Community, of which both countries are members.
Ethiopia has agreed to oversee the construction of the new road, according to the financial arrangements. The agreement names South Sudan as the borrower and Ethiopia as the financier, with repayment including crude oil from South Sudan to Ethiopia. The only thing holding up the project at this stage is the green light from South Sudan President Salva Kiir Mayardit, Business Insider said.
The East Africa Magazine report said that the areas of Palwesh, Maiwut and Pagak (in South Sudan) will be linked to the border areas of Ethiopia through this project.
