South Sudan's English Daily Newspaper
"We Dare where others fear"
By Benjamin Takpiny
The much -awaited construction of the 320 kilometers Pagak- Maiwut-Mathiang-Paloch road linking South Sudan to Ethiopia, has received major boost following the approval of it’s financing by the Ethiopian parliament.
The road is estimated to cost $738 million under the agreement signed between the two countries on May 18, 2023.
Simon Mijok Mijak, the Minister of Roads and Bridges told journalists on Wednesday in Juba, that the construction of the road connecting to Gambella region of Ethiopia is great news to the people of both countries, as it will ease cross border trade and catalyze regional integration.
“We are happy to announce that the financing agreement was also endorsed by the Parliament of the Federal Democratic Republic of Ethiopia yesterday (Tuesday), and therefore, it is fulfilling the main condition precedent for coming into force as an agreement. Going forward, the South Sudan Road Authority and Ethiopian Road Administration are therefore, going to engage diligently and expeditiously on the processes leading to the realization of the objectives of the project,” said Mijak.
He disclosed that road will be financed by a loan from the government of the Federal Democratic Republic of Ethiopia that will be repaid by the government of South Sudan over the period of 10 years, at annual discount rate of 4 percent interest rate within the grace period of 3 years.
Mijak said that the road is vital as it serves the regional integration agenda, adding that it will link the north western and north eastern parts of the country to the Port of Djibouti.
He said that the construction of the road is expected to commence in early 2025.
Nebil Mahdi Abdullahi , Ethiopia Ambassador in South Sudan lauded the leadership of Ethiopia and South Sudan for inking the financing agreement for the road, which he referred to as a model for African countries.
“From our Ethiopian side, I want also to present my gratitude to our Prime Minister and all concerned Ministers there, Minister of Finance, even though this issue was started since 2012, we got here due to the commitment of our leadership, especially President Salva Kiir and His Excellency Prime Minister of Ethiopia, Dr. Abiy Ahmed, they made a great decision and we are very glad to be part of this achievement,” said Mahdi.
Mahdi said the agreement fits the mantra of African solutions for African problems, as it reduces overreliance on international financial institutions to finance infrastructure projects with high interest loans.
“This is a good model, rather than always looking to the IMF and World Bank for loans. Then this is a good model that benefits the two countries for regional integration, economic connectivity, and road connectivity and at the same time for solving African problem, for giving the motto of African solution for African problems. I hope other countries will follow this initiative which at the same time enhances the investment and economic relation between our two countries,” he said.
