Washington, United States of America – The World Bank’s Board of Executive Directors approved 2006-06-22 a US$87.3 million International Development Association credit* to support Ethiopia’s continued effort to restore and expand the country’s road network.

The Additional Financing for the Second Road Sector Development (Phase 2) Project, which supports Ethiopia’s Road Sector Development Program, seeks to increase the road transport infrastructure and improve its reliability; strengthen the capacity for road construction, management and maintenance; and create conditions conducive to private sector participation in the road transport sector. In addition, the road network density would increase with the construction of additional roads, where limited or no access existed.

These objectives are to be achieved through: construction, rehabilitation, upgrading and preserving the priority federal and regional road network; strengthening of the reform program for the Ethiopian Roads Authority; developing the capacity in program implementation; and improving rural travel and transport services.

In 1997, Ethiopia launched a 10-year Road Sector Development Program to address the limited coverage and poor state of the road network, as well as the growing transport needs of the country. The Program was launched with significant donor support to create adequate capacity in the road sector, and to facilitate the economic recovery process by restoring the condition and expanding the essential road network. The program also sought to develop a strong management and technical capacity to administer the road network in order to address key outstanding sectoral issues. With the completion of the first phase of this program at the end of June 2002, Ethiopia embarked on the second phase (2002-2007), which is designed to continue the process of institutional reform and the rehabilitation of major roads but also to address the travel and transport needs of the rural population.

* The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 40 year period of maturity which includes a 10-year grace period.

For more information about the World Bank’s work in sub-Saharan Africa, please visit www.worldbank.org/afr
For more information on the World Bank’s work in Ethiopia
www.worldbank.org/ethiopia