Saudi Fund for Development (SFD) has signed a loan agreement amounting to $ 25 Million (approximately 424.7 million Birr) with the Government of Ethiopia to finance the construction of Gedo-Lemlem Bereha Road Project, on Oct 11, 2011, at MoFED.

H.E Ato Sufian Ahmed, Minister of MoFED, signed the agreement on behalf of his country. During the signing ceremony he stated that previously, the Kingdom of Saudi Arabia has financed two main road projects and one other rural electrification project.

He also underlined that the Government will work closely with SFD to make this road project real.

Representing the SDF, H.E Mr. Yousef L. Al-Bassam, Vice Chairman and Managing Director of SFD, affirmed that the singing of this agreement shows the great interest of the Kingdom of Saudi Arabia in supporting the sincere and continued effort of the Government of Ethiopia in promoting the wellbeing and economic prosperity of its people.

 The Gedo-Lemlem Bereha road project will enhance the social and economic development of the country by reducing vehicle operation cost for traffic on the road and reduce transportation cost of goods and passengers, it is also expected to be constructed in two phases.

The first phase covers 80.5 KM long, connecting Gedo to Mene Begna, while the second phase reaches Lemlem Bereha from Mene Begna with 63.8 KM. 

The finance secured from this loan will be used in phase one (Gedo-Mene-Begna), which is estimated to take about $ 50 million (around 854 million Birr). The remaining cost of the project in phase one will be covered by the Ethiopian Government and other development partners.

The road will be constructed in asphalt concrete standard with 7m of width two-side shoulder of 1.5m, drainage structure and safety signals.