Minister of Justice Presents South Sudan-Ethiopia Highway Financing Agreement to Parliament
On Wednesday, Ruben Madol Arol, South Sudan’s Minister of Justice and Constitutional Affairs, introduced a financing agreement between South Sudan and Ethiopia to the national parliament. This agreement, previously approved by the Council of Ministers, aims to upgrade the Palouch, Mathiang, Maiwut-Pagak highway. It was initially signed by President Salva Kiir Mayardit in 2023.
In his address to the Transitional National Legislative Assembly, Minister Madol emphasized the importance of the agreement in enhancing cooperation between South Sudan and Ethiopia in various sectors, including business and politics. He noted that Ethiopia will provide financial support for the road project, amounting to $738,264,150.94.
“This agreement, signed on May 18, 2023, designates South Sudan as the borrower and Ethiopia as the financier,” he explained.
Madol elaborated that the agreement aims to improve connectivity between the two nations, fostering collaboration in multiple areas.
As the borrower, South Sudan will repay the loan over five years, following a five-year grace period from the agreement’s signing date. Ethiopia will be compensated in crude oil.
“In terms of repayment, South Sudan will settle the equivalent amount on the due date or in cash. If opting for cash payment, the country must ensure the crude oil price is delivered to Ethiopia. The repayment will be based on the price difference between the Arab Gulf market and the date of crude oil delivery. Alternatively, if paid in crude oil, the delivery will be made accordingly,” Minister Madol clarified.
He also mentioned that services necessary for executing the project will be sourced from Ethiopian consulting firms, in accordance with South Sudan’s Public Procurement and Asset Disposal Act of 2018.
Jemma Nunu Kumba, Speaker of the Assembly, has referred the financing agreement to the Committees of Roads and Bridges, and Finance and Planning for review, with a report expected within 14 days.
