Quick Facts

Where the impacts of the investment may be experienced.
  • Ethiopia
Location: west side of Zeway town and ends before Arsi Negele town
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • World Bank (WB)
Status: Active
Bank Risk Rating: A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2015-05-19
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Federal Ministry of Finance and Economic Development - Goverment of Ethiopia
The holder of the loan, grant, or other investment.
The service or industry focus of the investment. A project can have several sectors.
  • Transport
Potential Rights Impacts:
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
  • Healthy Environment
  • Housing & Property
  • Right to Food
  • Right to Water
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 370.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 370.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ WB website
Updated in EWS: 2018-02-28
Disclosure Date: 2014-07-10
Ethiopia- Expressway Development Support Project

Project Description

The Ethiopian government with funding from the World Bank is proposing to implement an expressway development support project that aims at enhancing efficiency and safety in the movement of goods and people along the Zeway-Arsi Negele part of the Modjo-Hawassa development corridor. The project involves the construction of the Zeway- Arsi Negele section of the new highway from Modjo to Hawassa and is estimated to affect 4103 people.

Location: The proposed construction of Lot 3 of the Modjo-Hawassa high capacity highway starts at the west side of Zeway town and ends before Arsi Negele town. It has a total length of 57km.

Resources needed: The total land requirement for the project is 1618ha. It includes 1520 ha required for the entire Modjo- Hawassa section which has a dual carriageway with a 70m right of way and road links to establishments and towns along the corridor. Sites for development of borrow pits and quarries will take up about 50ha of land and the total land for establishing the camp and garages would be 48ha.

Early Warning System Project Analysis

Risk Assessment: Category A

The World Bank classifies proposed projects based on the type, location, sensitivity, and scale of the project and the nature and severity of its potential environmental impacts. Category A is assigned to a project only if it is likely to have “significant adverse environmental impacts that are sensitive, diverse, or unprecedented.”


Environmental Assessment (OP/BP 4.01)

triggered due to "the potential environmental and social impacts of the planned construction of the Modjo-Hawassa road."

Natural Habitats (OP/BP 4.04)

triggered because "the project road passes close to lakes and a national park endowed with natural habitats." The project requires construction of new bridge structures across main rivers and streams leading to siltation which affects lake storage and aquatic bio-diversity.

Forestry (OP/BP 4.36)

triggered because "the project road passes close to a national park and traverses a large area of woodland dominated by acacia species." The route corridor traverses Montana forest vegetation with scattered rare tree species on the east side of the existing road.

Physical Cultural Resources (OP/BP 4.11)

triggered because "some road works and ancillary activities may be located in the area of influence of some sites."

Involuntary Resettlement (OP/BP 4.12)

triggered because "the project will involve land take and restriction in economic activities." The Resettlement Action Plan report indicates that the Zeway- Arsi Negele road project will affect an estimated 4103 people.

People Affected By This Project


The Right to Water

Increased soil erosion by construction activities, chemical/oil spillage and waste from camp and garage sites may result in pollution of water sources located in the road construction influence area. Direct impact is likely to occur while constructing bridges across streams like Bulbula, Horakello, Awade and Dedeba.

Right to Property & Adequate Housing

According to the Resettlement Action Plan, a total of 651 households are likely to be dispossessed from their land and property. Most of these affected households (79%) are farmers that will lose a part of their land. Among these are 173 vulnerable people including elderly men, women, heads of households without labor, HIV/AIDS affected persons, child headed families and persons with disabilities.

Right to food

The expressway option traverses through rugged topography and involves quite large excavation and movement of earth materials hence it is likely to result into soil erosion and sedimentation. Steep slope cultivation without soil and water conservation measures may also increase soil erosion and land degradation in this area. This is likely to affect food production in project affected areas.

The Right to a Healthy environment

Due to construction activities, the air quality is likely to deteriorate affecting the health of the people in and around construction sites. Malaria infections may increase due to the creation of borrow sites which are breeding grounds for mosquitoes. Influx of the construction labor force may result in promotion of commercial sex work, increasing the spread of HIV/AIDS and other communicable diseases in the project area.

Investment Description

Bank financing: International Development Association
Borrower: Federal Ministry of Finance and Economic Development, Federal Democratic Republic of Ethiopia
Amount of bank loan or investment: $300M
Total project cost: $372M

Contact Information

Fiseha Aberra
Director, Multi-lateral Cooperation Directorate
Tel. +251111113247
Email. ifdid@ethionet.et

Arbitral tribunals will be formed in Adami Tulu and Arsi Negele Weredas and will settle disputes arising in the respective kebeles. The arbitral tribunals will be established from the outset instead of leaving the appointment of the arbitrators to the disputants. If any of the parties disagree, the aggrieved party has a right to appeal to the ordinary courts.


The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.

Bank Documents