Ethiopian opposition party refuses to support loan for rural electrification -OFDM asks gov’t to open books on debts

By Simegnish Yekoye

ADDIS ABABA, Ethiopia – An Ethiopian opposition party, the Oromo Federalist Democratic Movement [OFDM] has opposed a loan, of 159.3 million USD by the Ethiopian government from the International Development Agency (IDA) that is meant for use for rural electrification.
The party says the house of people representatives, the upper house of the Ethiopian Parliament should first be informed of how much debt Ethiopia is in before approving a new loan.

According to a document presented to Ethiopian parliament for ratification early this week, the money is said to be used to electrify 265 rural towns and villages found in the Amhara, Oromia and Southern regions of the country benefiting 1,101,000 people living in the areas. It also states about 286,000 houses will benefit from the electrification.

However OFDM party chairman Mr. Bulcha Demekesa says his party would not support the loan unless his party is provided with information on how much Ethiopia is in depth so far and how the money is going to be paid back.
"We endorse loans in this parliament every now and then, but we don’t know how much this loan has reached and how much of it has been paid back," he told parliament. "It is only the Ethiopian parliament that doesn’t know how much the country is in debt".

He also doubted how the rural villages and cities were selected as many of them are from Amhara region and a few are selected from Oromiya and Southern Nations and Nationalities People Representative (SNNPR).
"We don’t know the criteria for the selection of these cities," he said.
The money Ethiopia is going to borrow form IDA is free of interest and is to be paid within 40 years, the document explains in addition to the electric service the cities get, it will help for starting income generating projects using electricity.

Though supporting the ratification of the document that requests for the loan, Temesgen Zewde, parliament member, also asked for the criteria those cities are selected from other cities and added the need for electrification should come from not from the federal government but from regional governments. He stressed even though he and his group members support the document this time, their support may not be around for another round of resolutions unless their question is addressed.
The document was however ratified by the house with 345 votes in support, 10 oppositions and nine abstaining.