Ethiopia has announced the start of the $738 million Ethiopia-South Sudan Road Project, aimed at enhancing connectivity between the two nations. The road, spanning 220 kilometers from Ethiopia’s Gambella region to South Sudan’s Paloch in Upper Nile State, will be constructed by Ethiopian contractors. The Ethiopian House of People’s Representatives approved a loan agreement for this project, which will be repaid using South Sudan’s crude oil and cash.
The road project is a significant infrastructure development that will link several key areas, including Paloch, Guelguk, Mathiang-Maiwut, and Pagak, to the Ethiopian border. The construction is expected to boost economic ties between Ethiopia and South Sudan by improving transportation and trade routes. The project’s total length is 284 kilometers, and the $738 million loan will be repaid over ten years, with a four-year grace period.
This initiative is a prime example of resource-backed funding, where South Sudan will use its natural resources, particularly oil, to meet its financial obligations. It is a strategic approach that not only strengthens bilateral relations but also supports the region’s infrastructure development, which is essential for economic growth.
The construction of this major road will likely involve significant heavy equipment, such as graders, excavators, and trucks, to facilitate grading, earthworks, and road paving. The project is a model for financial diplomacy and could set a precedent for future infrastructure projects across Africa, showcasing the role of heavy equipment in large-scale construction and development initiatives. This partnership also highlights the ongoing efforts to foster regional cooperation, paving the way for further collaborative projects to enhance economic stability and connectivity.
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