Addis Ababa, October 13, 2026 (FMC) — Ethiopia’s House of Peoples’ Representatives has unanimously approved a 145.8 million US dollar concessional loan agreement with the International Development Association (IDA), a member of the World Bank Group, to finance the first phase of the Power Sector Reform, Investment and Modernization Project.
The approval came during the second regular session of the first year of the House’s seventh parliamentary term, where lawmakers deliberated on the draft proclamation ratifying the loan agreement between the Government of Ethiopia and the IDA.
Presenting the agreement to lawmakers, Government Chief Whip Fikadu Tesema said the financing would help strengthen Addis Ababa’s electricity transmission network, construct new substations, upgrade existing facilities and install underground power transmission lines.
He emphasized the project’s importance in improving the reliability and modernization of electricity infrastructure, particularly as Ethiopia prepares to host the 32nd United Nations Climate Change Conference (COP32).
Fikadu said the loan agreement would play a significant role in ensuring a reliable and modern electricity supply for the international climate summit.
The concessional financing is repayable over 31 years, including a six-year grace period, helping limit the immediate financial burden on the country.
Fikadu further stated that the loan was fully aligned with Ethiopia’s debt financing and management strategy and would make a significant contribution to sustainable economic growth.
Following deliberations, the House unanimously approved the draft proclamation ratifying the additional concessional loan agreement between the Government of Ethiopia and the IDA as Proclamation No. 1441/2019, completing the legislative approval of the financing for the power sector modernization project.