Ethiopia to Build Road Linking It with South Sudan – 2merkato – Ethiopian Business Portal

Ethiopia is planning to finance the construction of a road that links it with South Sudan’s largest oilfields, Paloch oilefiends. The construction of the road is anticipated to help South Sudan to sell its fuel production for its neighbor at a planned new refinery.

According to Mayik Ayii Deng, Minister in President Salva Kiir’s office, among other things during his stay Kirr signed memorandum of understanding (MoU) with Ethiopia for construction of a road that will be connect Paloch oilfields in South Sudan’ Upper Nile region with Malakal city abd western Ethiopia.

In return South Sudan would build a refinery that has the capacity to process 100,000 barrels of oil per day, he explained. South Sudan has obtained financing from a Swiss and a US company, he added.

“We want to deliver this refined fuel at very decent prices,” Deng noted. “We want to access some hard currency through these refined products.”

Ever since the conflict erupted in December 2013, oil production in South Sudan has plunged by at least a third to as little as 120,000 barrels a day. This combined with drop in prices, has devastated the economy. Annual inflation has accelerated to 500 percent and gross domestic product is expected by International Monetary Fund to contract 6.1 percent.

Source: Bloomberg

Read More News Here Source link

Recommended For You

Leave a Reply

Your email address will not be published.