Ethiopia's Industrial Parks Get More Foreign Finance
Other foreign financiers plan to join the World Bank and invest in the nation’s industrial park development.
According Sisay Gemechu, head of the Industry Park Development Corporation, European and Chinese financial companies are negotiating with the government of Ethiopia to provide finance for the upcoming industry park project.
Currently the government of Ethiopia is paying for the project from public coffers and cash from Euro bond sales. Recently the World Bank allocated a large loan to construct two parks in Addis Ababa.
The Chinese Export Import (EXIM) Bank and the European Investment Bank will be the other options to develop more parks in the country. He hinted that there will be other sources in the future.
Sisay said that the issue is under discussion. “Detailed information will be disclosed when we get a final decision from the government as for now it is being studied,” he added.
He did not disclose which projects will be financed by the two sources.
Recently the European Investment Bank disclosed that under the Ethiopia jobs compact partnership the European Investment Bank and the European Union, World Bank, and UK-Department for International Development, will work with the Ethiopian government on expanding industrialization and job creation; aiming to mobilize up to USD 500 million in additional concessional debt financing as well as additional grant support. The continental investment bank has been engaged in massive projects in Ethiopia.
The Chinese EXIM Bank has experience developing large projects in the country. It has provided support for infrastructural projects for the past a decade.
The World Bank loan has been allocated to construct Bole Lemi 2 and Qilinto industry park development projects that will be located in Addis Ababa.
On Friday Sisay and the Chinese CGCOC Group signed a contract to build Bole Lemi and Qilinto projects at a cost of 3.5 billion and 5.5 billion birr respectively. Both projects are being financed by the World Bank. The Bole Lemi 2 project covers 170 hectares and the Qilinto will rest on 279 hectares of land.
The South Korean Dohwa Engineering CO will manage the consultancy for both projects. They will begin operating within 12 months.
On the same day another industry park development construction project was awarded to the Chinese CCCC. The company will construct the Jima textile industry park at a cost of 1.5 billion birr, which will be covered from public treasury. The local MH Engineering will provide consultancy work. The project will be completed within nine months