Addis Ababa:Ethiopia's House of People's Representatives (HPR) has unanimously passed a loan agreement amounting to $145.8 million with the International Development Association (IDA) to initiate the first phase of the Power Sector Reform, Investment, and Modernization Project.
According to Ethiopian News Agency, the approval occurred during the 7th House's second regular session of its first year, where the draft proclamation ratifying the supplementary financing agreement between the Ethiopian government and the IDA was reviewed and approved by the lawmakers.
Government Chief Whip Fekadu Tessema presented the agreement to the House, explaining that the funds will be allocated to modernize the power infrastructure in Addis Ababa. This includes expanding the electricity transmission grid, constructing new substations, upgrading existing facilities, and installing underground power lines.
Fekadu highlighted that the project is crucial for ensuring a reliable and modern electricity supply as Ethiopia prepares to host the 32nd Conference of the Parties to the UN Framework Convention on Climate Change (COP32) in 2027. The loan offers favorable terms, such as a six-year grace period and a 31-year repayment plan, which minimizes the financial burden on the government.
He further noted that this financing is in line with Ethiopia's national debt management strategy and supports sustainable economic growth by strengthening the power grid. The House's unanimous decision resulted in the official ratification of the additional $145.8 million agreement, known as Proclamation No. 1441/2026.
