Addis Ababa February 28/2013 The country here on Thursday signed two loan agreements amounting to a total of 25 million USD with the Arab Bank for Economic Development in Africa (BADEA) and the Saudi Fund for Development (SFD).
At the same occasion, the country also signed avoidance of double taxation agreement with Saudi Arabia.
The first loan agreement amounting to 10 million USD was signed with BADEA while the second loan agreement amounting 15 million USD was signed with SFD.
According to the loan agreements, the proceeds will be used to finance the implementation of the Gode Kebridehar Rural Electrification project, which is co-financed by the two development partners.
The purpose of the project is to provide reliable electric power supply to rural areas in Somali Regional State in Eastern part of the country.
Finance and Economic Development Minister Sufian Ahmed and Minister of Finance of Saudi Arabia, Dr. Ibrahim Abdulaziz Al-Assaf as well as Chairman of Boards of Directors of the BADEA and the Saudi Fund for Development, Eng. Yousef Ibrahim signed the agreements.
Sufian on the occasion said the avoidance of double taxation agreement will contribute for enhancement of foreign capital, domestic productivity, investment, skill and technology transfer, trade and export, among others.
The agreement is expected to create conducive environment for investment and economic growth between Ethiopia and Saudi Arabia, he said.
Dr. Ibrahim Abdulaziz Al-Assaf on his part said the agreements will support Ethiopia's development endeavours and further boost trade and investment ties.
Saudi Arabia will further enhance support to Ethiopia, he said.