New highway planned for Ethiopia

A new highway in Ethiopia will provide a key link for the country’s future economic development. The 218km Modjo-Hassan highway is expected to cost US$720 million to construct. The highway will be constructed in two stages. The first section of the route will stretch 93km from Modjo to Zeway and is expected to cost $350 million to complete. The second section of the highway will be 125km long and link Zeway with Hewassa and this stretch is estimated to cost $370 million to build. However, funding for the highway project has yet to be finalised. The Ethiopia Roads Authority (ERA) is looking for a portion of the project funding from the China Exim Bank and the 2332 World Bank as well as a $350 million tranche from the South Korean Government and the 1586 African Development Bank.