Ethiopian News Agency
Tendaho and Fincha Sugar Factories and an Indian Company, Overseas Infrastructure Alliance Pvt. Ltd, (OIA) signed here on Thursday 640 million contract agreement providing for the expansion and launching of sugar development projects.
According to the agreement, the Indian government would provide the stated sum required for undertaking the projects on the basis of soft loan.
The Company would undertake the project, according to the agreement.
The contract agreement would last five years.
Ambassador V. B. Soni, chairman of OIA and managers of the factories signed the agreement.
Speaking on the occasion, Minister of Finance and Economic Development Sufian Ahmed said the enhancement of sugar factories is one of the priorities of the government.
He said the agreement is the second soft loan provided by the government of India.
Gurjit Singh, Ambassador of India to Ethiopia for his part said that India committed to support the development of Ethiopia.
The Ambassador said India’s commitment to provide a line of credit of up to 640 million USD to support the sugar industry in Ethiopia is the largest ever line of credit that his country has provided to any country so far.
This year he said, the commitment is to provide 122 million USD and further amounts will be progressively disbursed over the next four years.
“The sugar industry is important because India has the right technology and a successful experience, which it is willing to share,” the Ambassador said.
Chairman of OIA appreciates the existing investment climate in Ethiopia.
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