The Ethiopian Roads Authority (ERA) on Wednesday signed a road construction agreement worth about 33 million U.S. dollars with Chinese firm Sinohydro Corporation.
In a press statement, ERA said Sinohydro Corporation is expected to upgrade the 80.5 km Gedo-Menabegna gravel road to asphalt concrete level.
"The financing for the asphalt concrete road project will be sourced from the African Development Bank (AfDB) and Middle Eastern financial sources," said ERA.
The Ethiopian government is undertaking extensive road infrastructure projects, aiming to increase the country's main road coverage from 100,000 km in 2015 to 200,000 in 2020.
ERA has recently disclosed that the country's main-road coverage has increased from less than 19,000 km to 113,000 km during the last 27 years.