Addis Ababa – The Ministry of Finance and the African Development Bank (ADB) today signed a $ 125 million grant agreement to finance the Basic Service Transformation Program of Ethiopia.
It was indicated that the Supplemental Funding of the Basic Services Transformation Program (BSTP-SF) will be for fiscal years 2018/19 to 2019/20, it was indicated.
The Agreement was signed by Ahmed Shide, Minister of Finance and Gabriel Nigatu, General Director of the Office of Regional Development and Business Distribution of East Africa of ADB.
The additional financial support is a continuation of ADB's commitment to provide quality basic services in the critical services sectors of Ethiopia, such as health, education, water and sanitation.
During the signing ceremony, the Minister of Finance, Ahmed Shide, said that ADB continues to be one of the main actors in the agenda of the provision of basic services in Ethiopia, for which the government is very grateful.
He added that the government of Ethiopia will commit to use the resource of the subsidy for the intended purposes.
The government will also continue working to improve accountability and transparency in the provision of public services, which will strengthen the effectiveness of the program, he said.
"The government has identified equitable services as a priority area in the ongoing GTP II for the SDGs and has committed record financing to ensure its sustainability," said Ahmed Shide.
Ahmed thanked the ADB for its important financial support in the development efforts of Ethiopia and acknowledged the productive collaboration between Ethiopia and the bank.
The Director General of ADB of the Office of Regional Development and Business Distribution of East Africa, Gabriel Nigatu, said that the bank fully appreciates and supports the government's deep economic reforms.
"This supplementary financing will expand the fiscal space of the government to accelerate improvements in the development of human capital, which is a key enabler for the industrialization of the country," said Nigatu.
The complementary financing will also improve citizen participation in the provision of basic services, and will broaden and deepen the provision of basic services with a focus on improving quality and equity, mainly in health, education and sanitation, he said.
He added that ADB has shared the commitment to the structural transformations of Ethiopia that confirm the depth and breadth of the association between the bank and Ethiopia.
Including today's grant agreement, ADB's continued total commitment to Ethiopian transformation programs has increased to $ 1.74 million.