first loan administration report on the three ... - world...

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INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

FIRST LOAN ADMINISTRATION REPORT ON THE THREE LOANS TO

THE EMPIRE OF ETHIOPIA

luly 14 1954

Department of Operations Asia and Middle East

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FIRST LOAN ADHINISTiiATION RElgtORT ON THE THREE LOAlJS TO

THE EMPIEE OF ETHIOPIA

TABLE OF CCNTENTS

Paragraphs Pages

Basic Data i-iii

Introducticm 1 - 7 1 - 2

Part I - Loan of $5 million for tlHl RehClbiitation of Roads

A The Loan 8 - 9 2 B The Project 10 - 13 2 - 3 C Progress of the Project 14 - 29 3 - 7 D Effects of tbe Loa1 30 - 33 7 - 8

Part 11- boan of $2 1Lllion Jr ~hpev~)pment Bank P~ojecv

A The Loan 34 - 35 8 B The Project 36 - 40 8 - 9 C Progress of the Project 41 - 61 9 - 15 D Effects of the Loan 62 - 65 15

Par~ III-Loan of $1 5 million for Rehabilitation -- and-DevTlOD~ent ofTclecommunications

A The Loan 66 - 67 15 - 16 B The Project 68 - 71 16 - 17 C~ Progress of the Project 72 - 90 17 - 20 D Effects of the Loan 91 20

Part IV- fo1itical Situation 92 - 96 21

Part V - yenconomic Situation 97 - 101 21 - 22

Facing Page

Principal Highways of Ethiopia in 1954 3

Telephone Exchanges Telegraph Services and Main Interurban Telephone lines in Ethiopia in 1953 17

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ETHmill

~IC DATA

Except for the data on the budget the figures below cover the entire Empire of Ethiopia including Eritrea which was federated with Ethiopia in 1952 Budget figshyures are shown separately for the Federal Government of the Empire and for the Eritrean Government For intershynational transactions figures before and after September 1952 are not strictly comparable

- 450000 sq miles

Population Estimate - About 15000000

Budget of Federal Goverr~t (Fiscal year Jnding September 10 in millions of Eth $)

19[9-50 US0-51 1251-5S 1252-51 (actual) ( actual) (actual) ( rev est 0 )

Revenue 742 766 843 998 Expenditure 878 984 843 945

of which Development (167) (300) (186) (160) Defense (19~) (191) Cl2) (~)

Surplus (+) or deficit ( -) -136 -218 0 + 53

Budget of Eritrean Government (Septe1ber 11 1952 to December 31 1953 in millions of Eth $)

(actual)

Revenue 137 Expenditure 12~ Surplus 12

Government Debt (December 31 in millions of Eth $)

12lt2 1950 1951 12i~ 1251

Internal 513 593 685 831 1024 External 162 19n1 199-rshy 30 Ll~ 244- Total 675 784 884 1135 126 0 8

~ltExcluding undisbursed portion of IBRD loan

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Money Supply (December 31 in millions of Eth $)

Net increase 1949-53

Currency 620 729 868 926 1105 485 Demand deposits 12t~ 238 l2tl 264- ~ 108 iioney suprly 816 967 1059 1190 1409 593

Foreign Trade (Year ending December 10 in millions of Eth $)

1951 1952 J22119112

Exports 714shy 1168 1065 1694 Imports 885 1046 1152 1378 Surplus (+) or -171 +122 -87 +316

deficit (-)

frincipal Exports (Year ending December 10 in millions of Eth $)

19112 122Q 1951 128 l2ll Coffee 221 326 627 503 1003 Hides and skins 175 189 307 14-6 184 Oilseeds 106 67 83 139 146 Pulses 55 41 55 98 120 Cereals 87 38 30 89 44

Principal Imports (Year ending December 10 in lnillions of Eth $)

12l2 1950 1951 ill 12ll

Cotton goods 413 281 419 382 402 Petroleum products 47 56 65 90 130 Vehicles 29 24 63 82 105 Sugar 45 41 63 5 8 72 rmiddotIachinery 17 29 34 56 60

Estimated Balance of Payments Current Account (in millions of Eth $)

1lli 1920 128 1221

Exports FOB 778 777 1248 1151 1778 Imports FOB 761 624 866 22t2 1195

Trade balance +17 +153 +382 +156 +583

Other services and private rerr~ttances (net) -86 -~ -196 -258

Surplus (+) or -69 +124 -40 +325 deficit (-)

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Gold 2 Si1~l_and Foreign Exchanoe Holdings of the State Bank of Ethiopia (December 31 in millions of Eth $)

~ 1950 J921 192~ lli1

Gold 62 90 97 99 99 Silver 95 137 143 149 151 US amp Canadian

dollars 13 48 222 328 677 Other foreign

exchange 17t 223 172 146 202 Total US $ equivalent

2lplusmnJt 138

ltLamp 200

634 255

722 289

1129 452

THE EHPIRE OF ETHIOPIA

INTRODUCTION

1 This Report covers the period from September 1950 through April 1954 and deals with the following Loans

31 ET $50 million 20-yecr Jfo loan of September 13 1950 for rehabilitation of roads

32 ET $2 0 0 million 20-year 4 loan of September 13 1950 for Development Bank

42 ET $15 million 20-year 4 loan of February 19 1951 for rehabilitation and development of telecommunications

$85 million Total loans made to Ethiopia (held entirely by the Bank)

20 In February 1948 Ethiopias representative discussed with the Bank the possibility of obtaining loans to assist in financing a $153 million development program based largely on engineering reports prepared by the US Technical Hission to Ethiopia in 1944-45 and by J G 1rJhite Co of New York The program covered a wide range of projects with particular emphasis on rehabilitation and development of trans1)ort

3 In informal discussions the Bank expressed interest in Ethiopia1s development plans and suggested the need for more study of the priority of these various projects In November 1949 the Government submitted a $25 million program of se~ected development projects which included a number of first priority projects esti~ilated to cost about $ 9 million At the sarne time the Govermnent asked tl1e Bank to send a mission to Ethiopia

4 A Bank mission visited the country in the spring of 1950 to review the economy and the projects It recommended that top priority be given to projects for a highway program for a development bank and for rehabilitation and improvement of the telephone and telegraph systems On the basis of the missions report the Bank negotiated and signed loan agreements for high~ way a~d development bank projects in September 1950 and for a telecommunicashytions project in February 1951

5 In 1951 1952 and 1953 Bank staff members visited Ethiopia several times to discuss administrative and technical problems that arose in the course of carrying out the three projects One of the visits in June 1953 was undertaken at the request of the Government which asked for a field survey of the progress of the highway project the resulting report was made available to the Government

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6 The President of the Bank visited Ethiovia in March 1953 du~-ng his tour of several Middle Eastern countrieso

7 In April and May 1954 a Bank mission -lisited Ethiopia to review the recent economic and financial developments and prospects of the count~ and to examine the progress made on the three projects

YJAil OF $ 5 MILLION FOR THE REHABILITATION OF ROADS-l~

A THE WAIl

8~ The Loan was made on September 13 1950 and became effective on February 28 1951 It carries an interest rate of 4 including the 1 statutory commission Semi-annual payments of principal are due to begin on March 1 1956 and should retire the Loan on March 1 1971 As of April 30 1954 the equiValent of US $ 49 million had been disbursed Of this the equivalent of US $40000 were repayable in sterling and US $81000 in Swiss francs and the remainder in US dollars

9 Payments of interest and loan charges have been made when due To date the Borrower has not been asked to deliver any bonds to the Bank as provided in Article III of the Loan Agreement

B TIL~ PRC JeCT

10 Due to limited rail facilities the greatest part of Ethiopias internal and external trade moves by road It is generally agreed that imshyprovement ruld expansion of the highway system is of first priority for the development of Ethiopia Large potentially productive areas of the country are now aL~ost completely isolated or can be reached only after long and arduous journeys At present transportation in Ethiopia depends largely on its highway network most of Ihich was built during the Italian occupation at a cost equivalent to about US ~~120 million These roads steadily deteriorated during and after the war because of lack of maintenance The resulting difficulties of transport aciverfely affected the development of the country

-l~ Additional data may be found in the following reports circulated to the ~~ecutive Directors (a) ~15~ - Report and Recommendations of the President to the Executive Directors Concerning the roposed Loans to the Empire of Ethiopia September 1950 and

(b) Loan 102a - Technical Reort on the Road Rehabilitation Project in Ethiopia July 19 1950

34middot 36middot 38middot 40middot 42deg 44deg 46middot

HIGHWAYS OF

1 N 1954 BEING RECONSTRUCTED BY IHA

BEING MAINTAINED BY IHA

A R A B I A PRINCIPAL

ETHIOPIA

1----+----4--j--__jr-----I-~~--_r_-+-----~-_t____middotmiddot OTHER ROADS 16

Smiddot

SO

4deg1------------------

~

----shy FEDERAL ROADS IN ERITREA BEING MAINTAINED BY IHA

O50====130~O~15~O==~2~O MILES

----~------------+_------------__jIOO

BRITISH SOMALI AND

SO

6

r-------~~1-~~~----_+~----~__~~~----------+_----------~--------------_44deg

KENYA

3S 40deg 42deg 44deg

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11 The Project comprises a program to rehabilitate repair and maintain the road system of Ethiopia re~litinary details of this program were worked out in October and November 1950 by a mission of the US Bureau of Public Reads which was asked by the Ethiopian Geve~~ent with the consent of the Bank to plan and to carry out the program The preliminary pOgram laid out in this missions re~ort called for complete rehabilitation of 303 kms from Addis Ababa to the Sritrean Border near Assab of 335 kms from Addis Ababa to Jimrna and of 331 kms from Addis Ababa to Lekempti and the maintenshyance of an additional 2600 kms of oain roads to prevenJoj further deteriorashytion The main roads under the program thus totalled about 4100 kms (See map facing this page)

12 This Project was to be carried out over a three-year period To carlY out the Project the Ethiopian Government undertook to establish an autonoshymous agenc3r and in consultation with the Bank to select competent manageshyment for it The duties of this management were to include the training of Ethiopian personnel

13 The total cost of the Project was estimated at Eth ~355 million (US ~~142 million) The Loan (equivalent to Eth gt125 million) was to be used to finance the foreign exchange cost of equipment materials and sershyvices In order to finance the local currency cost of the Project (Eth $23 million) the Government undertook to provide the nelr agency with an initial appropriation of Eth ~5 million an additional annual appropriation of Eth $2 million for the first three years and during those three years the proceeds of all taxes imposed on the importation sale purchase or use of gasoline and oil with a guaranteed minLllUffi of Eth i~4 million per yeax Thereafter the Govermaent was to provide annually a mllxUnUffi of Eth $5 million and up to Eth ~8 million The mission of the US Bureau estimated that with the funds provided for in the three-year period only 60 of the reshyquired rehabilitation work on the Addis Ababa-Jimma road and 40 on the Addis Ababa-Lekempti road could be completed

C PROGHESS OF THE FFO~

(i) Imperial Highway Authorit~

14 The autonomous agency known as the Imperial Highway Authority (IHA) was established on January 26 1951 On February 27 1951 the Governshyment entered into a three-year m2nagement contract with the US Bureau of Public Roads under which the Bureau agreed to r-rovide some 40 engineers forereen mechanics and a~~nistrative personnel for the IHA including its Director The agreement with the Bureau was renewed in November 1953 for an additional year from Earch 1 1954 to February 28 1955

15 The management and staff of the IHA are competent and adequate to their tasks The IHA employed 3375 persons on March 1 1954 Of these 25 were from the Bureau (maximum Bureau staff once was 46) 98 were other nonshyEthiopians and 3252 were Ethiopians The number of Ethiopians in general and particularly of Ethiopians in clerical and mechnical positions has risen considerably since the IHd was established All equipment operators and drivers all sub-foremen most masons and carpenters about 60 of the mechanics half the foremen practically all the field clerks and half the chief clerks and acco~~tants are now Ethiopians The training of personnel

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for clerical and mechanical positions has had fairly satisfactory results The training of personnel for engineering or administrative tasks has been more difficult

16 The functioning of the IHA would from its beg_nning have been smoothshyer if there had been better team-work bet~Ieen its manrgement and its Board of Directors and between the IHA and the Government and if their relations had been based on mutual confidence and on a better understanding of the responsibilities of the IHA In the past year relations among all concerned have improved considerably

(ii) Init5 al 3-Year Program

17 In the t~1ree years ena~ng February 28 1954 when the program was to have been completed the IRA had available to it a total of Eth ~ 358 million (US $143 million) Of this sum the Govelnment appropriation amounted to Eth ri~233 million which was Eth $300000 in excess of the minshyim-run provided for in the Loan Agreement This excess occurred because fuel tax collections fell short of the annual minL11tL1l of Eth )4 million in the first two years ald the GoverUl1ent made up the difference from other revenues but in the third year fuel taxes reached Eth ~f43 million During the period actual expenditures totalled Eth $339 Inillion Of this foreign exchange expenditures amounted to Eth ~gt155 million (US t~62 million) derived mainly from Loan funds and partly from conversion of dOlnestic currenshycy_

18 The rehabilitation of the primary roads made substantial progress and at the end of the three-year period stood roughly where the mission of the US Bureau of Public Roads had estimated it auld stand The road from Addis Ababa to Assab was about 98 completed the road from Addis Ababa to Lekempti about 53 and the road from Addis ababa to Ji~11a about 60 On the remaining roads which were to be maintained so as to prevent deterioration rehabilitation as well as maintenance work had been done for in practice it 1[ as found that much the same kind of work was required on both groups of roads During the three years 2333 culverts and bridges rere repaired or constructed 1050 kms of base or sub-grade spot repaired and 125 kr~s of new base constructed 2613 kIDs of roads resurfaced or patched over 123000 cubic meters of slides ra11Oved about 37528 cubic meters of stone masonry constructed and 3007 kms of shoulder repair and ditching completed

19 Before the Project started Bank engineers had found that over the entire network deterioration of roads was wanfest in badly lorn surface degeneration of road shoulders clogging of drainage ditches collapse of culverts unfilled holes and cacks and sinkage of road bed Travel over the roads was slow difficult and sometL~es dangercus It was roughly estimated that perhaps a third of the 4lCO-kilometer road network had deteriorated to a pcint requiring thorough repair While two-thirds needed immediate maintenance and light repair As the result of the work carried out by the IHA during the first three years the entire primary network of 4100 kIDs was by February 28 1954 usable and most of it ~cas in condition to be used in all seasons

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(iii) Fourth-year Program

20 By the middle of the third year it became apparent that the IHA could not in the three-year period bring the entire 4100-kilometer network up to standards which would require thereafter only routine maintenance A variety of factors was responsible for the short-fall It required many months to organize a staff and to acquire the needed equipment The diffishyculties of climate especially rainfall and topography had been underestimatai Original estimates of the funds staff and time required had been too lowe Original plans had provided for asphalting and some was done although it was subsequently and correctly decided that traffic did not justify such a surshyface expenditures on asphalting left even less funds for 1Ork that had to be done Jork had not always been done in a progressive manner with the result that some sectors of certain roads had been completed but the whole of very few roads At least another year was needed to complete the work originally contemplated in the Loan Agreement

21 The management of the IHA and the Bank urged the Government to proshyvide for at least another 3-year period for funds and managa~ent that would be adequate not only to bring the 4100 kills up to reasonable standard but also to construct and maintain essential secondary roads and to rehabilitate and maintain those roads in Eritrea which had been declared federal roads~ Pending a revieV of the results of the original progran the Government deshycided to renew its contract ~~th the Bureau for one year and to provide Eth ~~8 million for that year

22 Including its carry-over from previous years the IHA will have Eth $10 million for this fourth year of its operation lJith this sum it expects to complete the three roads originally scheduled for rehabilitation It is possible however that part of the Addis Ababa-Lekempti road will receive only a first-stage surfacing due to insufficient time and funds In addition work on the remaining IHA roads will continue but a first-class surface will not exist everYirhere and much rehabilitation and betterment irill still be required Except for three sections (Blue Nile - Lake Tana Wondo-Adola and Ambo-Lekempti) totalling 709 kills the roads covered by the project will be all-weather roads b the end of this year

23 There Mill remain for the future not only the completion of these sections of road but also the further improvement and constant maintenance of the entire system

(iv) Maintenance Orgapization

24 The Loan Agreement provided for the maintenance of Ethiopia s road system During the IHAs early days its activities were generally divided into two categories the bare essential work necessary to keep roads open to traffic and the construction work needed before maintenance of any kind could be attempted As construction of various sections of roads progressed maintenance operations were instituted despite the fact that on virtually all roads construction continued to be necessary To date six maintenance districts have been set up in Ethiopia (Shoa Harrar Uollo Tigre Gondar and Sidamo) Except for three roads (from Addis Ababa to Jimma to Lekempti and to Debra Sina on the Assab road) totalling 856 kms the rest of the

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4100-kilometer netwolk is being maintained by these six district offices Each district is headed by a District Engineer who reports to the Chief Engineer (Maintenance) The six districts have a total maintenance pershysonrel of 1039 including engineers foremen masons mechanics laborers etc about one-third of IHAs total personnel

25 i-iaintenance activities consist mainly of repairing existing structshyures cleaning ditches removing slides repa~r~ng erosion filling holes and some replenis~~ent of surface materials Some of the work may be classed as betterment

(v) Eritrea

26 When Ethiopia and Eritrea were federated in September 1952 894 lillls of Eritrean roads were declared federal roads and became the responsibility of the IHA These roads were in far better condition than the roads of Ethiopia had been when IHA was created nevertheless they were gradually deteriorating and an extensive program of rehabilitatiun was necessary as rell as maintenance As the IHAs flmds insufficient to meet even the reshyquirements of old Ethiopia could not be used for Eritrea the IHA recommendshyed that the Goverm1ent provide appropriations for a highway program in Eritrea No action has been taken on this recomnendation Emergency repairs and mainshytenance on the Eritrean roads are meantime being carried out under the directshyion of the IEA by a separate organization mostly inherited from the British administration and are being paid fer by special appropriations (an initial Eth ~75OOO a monthly sum of Eth ti48OOO and one emergency allotment of Eth ct5200OOO)

(vi) Control Proclama~

27 Huch of the deterioration of Ethiopia l s roads may be attributed to the use of trucks of excessive weight In 1952 the IHA recolID~lended that the Government issue a proclamation limiting the size and weight of vehicles in accordance with the international convention on road and motor transport in use in most cOQ~tries In addition the IHA asked for issuance of a proclamation authorizing the IHA to designate roads Ihich ould come within its jurisdiction This procla~ation is essential in view of the vagueness of ~HAts chal~er in defining the roads in its jurisdiction and of the pressureuro that both governmental and provincial a~thorities bring to bear on the IHA to work on specific roads outside the 4lOO-kilometer network The Council of T1inisters approved the draft proclamations a year ago but they have not yet been enacted

(vii) Continuing Program

28 No decision has yet been made by the Governlent regarding the future program and ma1agement of the IHA On Hay 10 the Board of Directors of the IHA decided (a) to present to the Gover~ent a specific recoffiaendation for the future program a~d management after February 1955 (b) to recommend an expansion of the program to include (i) further reconstruction and maintenshyance of the primary roads (ii) additional reconstruction and maintenance of Eritrean roads and (iii) construction and maintenance of secondary roads and (c) to reco~~end renewal of the management contract with the US Bureau

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of Public Roads for three to five years The Government has stated it will take a decision on this matter soon

(viii) Use of the Loan

29 As of Harch 1 1954 the IRA had used the funds reuroceved from the Loan Account as fo110s

Equipment Us $ 2921000

Spare parts 168000

Materials 608000

Services 1055000

Total 4752000

The main categores of equ~pment and materials purchased are earth-moving and road-building equipment vechicles and bitumen f1ost of the equipment and materials purchased abroad has been obtained through the purchasing organization of the US Bureau of Public Roads This arrangement was made by the Government and the IRA and the Bureau after consultation with the Bank because when the Project got under way in 1951 the required equipment was almost unobtainable except in the US and because the use of the Bureau made it possible to obtain gove~~ental priorities and discounts

D EFFECTS OF THE LOAN

30 Although the 4lOO-kilometer network has not yet attained a condition in which only routine maintenance is required the progress to date has been substantial and the effects of the program and the Loan can already be felt

31 The entire network is now useable almost all of it in all seasons~ One result is that traffic is now faster and safer For instance before the IHA started work a truck generally required several eeks to cross the 366 ~~s from Addis Ababa south to Dilla this road is covered today in onE day On the Addis Ababa-ZbTh~a road to the coffee-producing areas of the southwest the rehabilitation work done has permitted trucking speeds to inshycrease from 5-8 kIDs per hour to 50-70 kIns per houT once virtually iInpassable this road can now be traversed in less th~~ a day The Addis Ababa-Assab road was almost L~passable when IHA began its work early in 1951 less than two years ago a truck load of lumber from Addis Ababa took two weeks to reach IPills camp at Cantoniera at Ian 709 in dry season Today with the complete reconstruction of this road commercial trucks make the 86o-kiloshymeter trip to Assab in two to two-and-a-half days in all seasons Speeds from 40-60 kms per hour for trucks and busses depending on the type are safe and usual on all roads where surfacing has been completed On other sections 10-20 kms per hour are still customary

32 As a result of the road program trucking costs have already been ppreciably lowered The records of one trucking firm show that expenditures

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on truck tires used up 2$ of its total earnings during July 1952 - June 1953 the corres20nding fig~re was recuced to 15 during July 1953 - January 1954 Maintenance costs have also decreased Reduced costs have not ret brought forth sufficient competition in trucking to effect a general reduction of rates although reduetions in specific areas for specific commodities are known

33 Since 1950 passenger vehicle imports have increased steadily from 317 in 1950 to 1361 in 1953 Imports of lorries have also gro~ Increased road traffic has been reflected jn growing imports of gasoline from 7400 tons in 1950 to 18000 tons in 1953 These imports have favorably affected Government revenues Receipts from the motor fuel ta alone se from Eth ~13 million in 1950-51 to Eth $38 million in 1952-53 Revenues also rose from larger collectio1s of import duties and toll taxes on these products

PiGT II

LOAll1 OF ~2 iILI-ION FOR THE DEYEL01JMENT RiNI( PEOJECT~~

A THE 10ill

34 This Loan was made on September 13 1950 and became effective on June 1 1951 It carries an interest rate of 4 inc1~ding the 1 statutory commission Semi-annual payments of prL1cipal are due to begin on Harch 1 1956 ald should retire the Loan on Narch 1 1971 As of April 30 1954 the equivalent of US t~761OOO had been disbursed Of this the equivalent of US ~224000 are payable in sterling and the remainder in US dollars

35 Fayments of interest and Loan charges have been made when due o To date the Borrower has not been requested to deliver any bonds to the Bank as provided in Article III of the Loan Agreement

B bull PHE PROJECT

36 Before 1951 long-term credit facilities in Ethiopia were extremely lilnited The only private ban~ a branch of the Banque de l Indo-Chine granted no long-term loans In the field of agriculture the governmentshyowned Agricultural ald Commercial Bank with a capital of Eth $1 million made loans of up to three years in amounts rarely more than Eth $1000 (US $400) mostly to small cultivators in the vicinity of Addis Ababa Because of its limited capital~ the Agricultural Bank had to turn down loan requests for deve~opment projects The State Bank of Ethiopia (the central

-l~ Additicnal data may be found in the following Report circulated to the Executive Directors F15~ - Report and Recommendations of the President to the Executive Directors Ccncerning the Proposed Loans to the Empire of Ethiopia~ September 1950

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bank) was the only institution capable of extending long-tenn loans but it was reluctant to do so

37 Yet the need was apparent Possibilities for productive invest~ent existed in both agriculture and industry The size of such projects were generally small and called for an institution capable of local technical fin~~cial and creditworthiness appraisals

38 The Government concurred in the recommendation of the International Bank to establish a new bank to assist the development of agriculture and industry in Ethiopia and to merge the Agricultural Bank into the new bank

39 The Loa1 Agreement provided that the new bank would have a charter satisfactory in form and substance to the International Bank It also proshyvided that terms on which the capital of the new bank was subscribed and its manager and staff would be mutually satisfactory to the Borrower and the International Bank and that the new banks operations would be conducted Ifin accordance with sound ba1king standards

40 The Loan was to be used to meet the foreign exchange costs of investshyment projects financed by the new bank Such investment projects were to be subject to prior approval by the International Bank (The International Bank subsequently waived its right of prior approval for projects requiring less than $10000 from the Loan) The Loan Agreement provided that $100000 would be credited to the Loan Account on the Effective Date of the Loan and that upon approval of an investment project the equivalent of the foreign exchange cost thereof would be credited up to a total amount set by limits specified in the Loan Agreement

C PROmSss OF THE PROJECT

(i) Establishment of the Development Bank

41 The Development Bank of Ethiopia was created by a charter published on March 19 1951 The charter authorized the Development Bank to make guarantee or participate in loans to industrial agricultural or business enterprises to participate in such enterprises on an equity basis and to develop such enterprises on its own account The charter provided that loans to industrial and business enterprises would be made for specific productive projects The Board of Directors and the IIanaging Director of the Development Bank were to be appointed by the Government Capital stock of Eth $13 million was authorized of which Eth $11 million was ordinary stock subscriba by the Government and Eth $2 million preferred stock to be sold under conshyditions to be determined by the Board Of the ordinary stock Eth $2 million were to be paid in upon promulgation of the Charter Eth $1 million represented the net assets of the Agricultural Bank which were to be transshyferred after completion of its Inerger with the Development Bank Eth $5 million represented the counter value of the International Bank Loan and were to be considered paid in as iithdrawals from the Loan Account were made and the remaining Eth $3 million were subject to call by the Board

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42 On April 20 1951 the Government appointed a Hanaging Director Following the proclamation of the charter the appointment of the Hanaging Director the payment of the initial Eth $2 million of capital a1d the transfer of the net assets of the Agricultural Bank the Development Bank commenced operations on Hay 15 1951 and the Loan became effective on June 1 1951

(ii) Board Management and Staff

43 Aside from the Managing Director the Development Bank employed a number of persons from abroad in the following positions legal advisor economic advisor agricultural specialist industrial specialist and loan officer In the course of the following three years a11 but one were reshyleased at the termination of their contracts or resigned including the Hanaging Director on August 31 1953 On October 30 he was succeeded by his Deputy who had been Hanager of the Agricultural Bank refore the estabshylishment of the Development Bank The professional staff of the Development Bank today aside from the Managing Director consists of an economic advisor an auditor an accountant and a coffee specialist employed in December 1953 when the Development Bank established a branch office in Jirr~na

44 The size and quality of the staff required by the Development Ba~ depend on the policy of the Board and on the vigor and thoroughness with which that policy is pursued under present circ~~stances the Development Bank does not have sufficient technical staff The inadequacy of staff has not appeared so serious as it in fact is because the Development Bank has in general pursued a conservative policy The inadequacy of staff apl)earS most clearly in the field of agriculture in which Governwent Board and management state they wish to increase lending yet do not dispose of the technical competence to determine how it can be done in a productive way under prevailing conditions

45 Several factors Lmpede the operations of the Development Bank among them (a) economic cultural legal and other circu nstances in Ethiopia Nhich inhibit private enterprise and increase the risk of lending to it (b) the relative lack of entrepreneurial spirit and experience common to underdeveloped cOlli1tries (c) the lack of experience in development banking (d) the tendency of the management to judge its loan applications in terms of the 88curity available rather than by the test of long-tenn productivitythat gives development barMing its special character These factors have sometimes been reflected in disagreement bebreen the Board and the manageraent and have often influenced the reception given to new projects when they were presented

46 These facts have often been pointed out to the Development Bank On ~1ay 12 1954 the Board of the Development Bank formally stated that it was flwide awake to any opportunity to further the objectives set forth in its charter throughout the Empire including Eritrea At the same time it deshycided that the Development Bank needed a Deputy Managing Director and asked the International Bank to assist in finding a suitable one The Board did not accept the urgent recommendation of the International Bank that an agrishycultural specialist was also necessary

I

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(iii) Capital Position

47 Late in 1952 it became apparent that while sufficient foreign exchange was available from the Loan to provide for expected foreign exchange requirements for some time to come the lack of domestic currency lrlOuld soon prevent further lending Accordingly the Board decided to call in part of the unpaid capital subscription The following additional payments have been made Eth $2001 000 in November 1952 Eth $800000 in November 1953 and Eth $1 million on April 15 1954 There remained Eth $1 million of the Governments subscription not yet called in On the basis of these payments the International Bank under the provisions of the Loan Agreement would credit to the Loan Account up to US $1667000 for approved investment projects

48 The resources of the Development BWlk are today sufficient to cover its immediate lending prospects The position in domestic currency for 1954 is as follows

Cash on hand on Deca~ber 31 1953 Eth $

New capital payment (made April 15 1954) 1000000

Repayments due in 1954 lt059000

Sub Total 2467000

Less Co~~tments 196000

Total 2271000

In addition foreign exchange was available from the Loan to the extent of US $1667000 of which US $767000 remain unused or uncommitted Against these availabilities the management expected in 1954 to make loans requ~rlng about Eth $460000 in domestic currency and about US $540000 in foreign currency

(iv) Operations

49 The activities of the Development Bank have increased steadily though slowly since they started in lvIay 1951 The number of loans and the funds invested were as follows

Dec 31 Dec 31 Dec 31 April 30 1951 1952 poundill_ ]22~

Loans Outstanding

Number 104 193 337 396

(In millions of Eth Dollars)

AlTounts outstanding 03 35 42 41

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Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954

Investment in Ceres Company

Capital stock 03 03 03 03

Credit line 05 07 10 15

Total Investments 11 45 5~5 59

Betireen 70 and 80 of the number of loans are srGall agricultural loans the outstanding value of which on April 30 1954 was only Eth ~t244000

50 The De-Elopnent Bank a loans (other than the line of credit available to Ceres Company) may be divided into five main categories (a) industrial development loans (b) agricultural development loans (c) small agricultural loans (d) coffee loans by the Jimma br3Dch and (e) other miscellaneous loans

51 Twenty-nine industrial development loans were outstanding in the amount of Eth $31 million on April 30 1954 Although called industrial these loans were mainly for projects to process domestically produced agri shycultural raw materials and thus dir-_ ctly stimulate domestic agricultural production Only 12 of these loans required foreign exchange ~~d only eight were larger than US $10000 and therefore required International Bank approval Two loans to the Cotton Company of Ethiopia for the purchase of equipment re~uired to double its spinning capacity and to increase its stock of raw cotton accounted for 2$ (Eth $865000) of the total in industrial loans Thirty percent (Eth $920000) was outstanding in two loans to the United Oil Hill and Soap Factory of this about half was fer the building of new oil mills and the remainder was a seasonal credit for the purchase of oilseeds gt-mich is repaid and reneltled annually nro more loans outstanding in the amount of Eth ~t5ooOOO were to the Harrar Oil Crushers and Soap Factorie~ of which two-fifths was for expansion of mill equipment alld the remainder for working capital A seventh loan of 3th $300000 was for a tannery and shoe factory The remaining 22 industrial loans togetheuror amount to only about Eth $600000

52 The industrial loans have been used to expand capacity of existing enterprises to finance modernization of plants and to provide working capital None was used to establish new enterprises not previously exi3~~lng although one loan of Eth ~p89OOO was for meat refrigeration and Tas to test the export possibilities of Ethiopian meat The industrial loans are secured by mortgages are repayable in up to seven years and bear interest at 7 per annum The servicing of these loans has been satisfactory and arr~ars in interest payments at the end of April 1954 amounted to less than Ethu $6000 Supervision of the loans consists of periodic reviews of the accounts of the borrowers and occasional visits to the rojects

53 Outstanding agricultural development loans numbered 37 and amounted 0 Eth $286000 They were made to fiJrmers for farm improvements in amounts

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varying from Eth Cl500 to Eth $30000 There has been virtually no supershyvision of the use of these loans They are secured by a mortgage on land other real estate or personal properties are repayable in three to five years and bear interest at 6-8 per annum Most of the loans have been graYJted in Shoa Province in Central Ethiopia where the lais of land ownershyship make satisfacto~J security possible Eleven amounting to Eth ~78 000 were for coffee development in Kafa-JL~a Province Service of the loans is satisfacto~r arrears in interest to the end of April amounted to about Eth $3500

54 Outstanding small agricultural loans in part taken over from the Agricultural Bank totalled Eth $244000 They were mainly for the purchase of tools and work animals by small farmers The loans almost all in Shoa Province were all less than Eth ~2000 each repayable in three years They are secured by mortgages on the land and bear interest at 3-6 per annum If the security is adequate these loans are granted without question and are not supervised at all Although repayment is often very late these loans are repaid

55 Twelve coffee loans totalling Eth ~22OOO have been made through the Jinuna Branch (These are in addition to Eth $91000 of loans made in the same region but through the head office of the Development Bank) These loans were made under a program launched in December 1953 to take advantage of the favorable prospects for increasing the countrys production of coffee its main export product The program is to extend credit for development of coffee under natural forest conditions in Kaffa-Jinuna Province after technical appraisal by a coffee specialist The loan funds of the Jimma Branch are limited to Eth ~500OOO for three seasons and individual loans are to be limited initially to Eth $2000 per borrowe~all to be spent on one gasha (100 acres) to clear natural coffee forest Additional

loans may be granted subsequently for further development of the same land if inspection shows the first loan has been properly used The loans are secured by a mortgage on the borrowers land or by a personal guarantee of the borrower and a co-signer They carry an interest of 7 per annum and a term of not over five years repayable in two or three annual installments

56 other loans outstanding totalled some Eth e440OOO They were made mostly against title deeds on town property for the construction of new houses or buildings in Addis Ababa such loans carried 8-9 interest and were for a period of one to five years The remainder were short-term comshymercial loans (one year or less) mostly in amounts less than Eth $5000 each and carried interest of 6-9

57 The Ceres Company Ltd was established by the Development Bank in October 1951 to continue an activity of the former Agricultural Bank It is managed and operated by the Development Bank itself for which service it pays the Development Baru( a fee Its business consists in the purchase of cereals oilseed and pulses for export firms on a commission basis and in financing of such purchases until shipments are made Operations are conshyducted at four cities Addis Ababa Adama Assela and Debra 11arkos Comshymission charges vary from 2~ to 5 ~f purchase prices and interest charged for financing purchases is 7 per annum

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580 The Ceres Companys share capital of Eth ~300OOO was fQlly subshyscribed and paid in by the Development Bank In addition the Company has a credit line on which about Eth $15 million were outstanding on April 30 1954 This credit bears interest at 7 and can easily be called in The operations of the Company have been very successful Dividend and interest payments to the Development Bank have risen from Eth $2500 in 1951 to Eth ~48000 in 1952 and Eth $75000 in 1953 The Development Banks receipts from the Ceres Company amounted in 1953 to about 23 of the Development Banks gross earnings

(v) Financial Results

59 With the increase in outstanding loans the financial position of the Development Bank has improved During its seven-and-a-half months of operation in 1951 its operating loss amounted to Eth $120000 Its loss in the full year 1952 was Eth $130000 In 1953 for the first time it made a net profit of Eth ~57000 The Development Bank expects its net profit in 1954 to be close to Eth $200000 which would be sufficient to offset its remaining acc~~ulated losses This improvement in financial position is primarily the result of the increased volume of lending operations it also reflects the cutting down of expenditures on staff and the large profits from the investment in Ceres

(vi) Use of International Bank Loan

w At the end of April 1954 about US 900000 of the International Bank Loan had been cOITlnJtted Of this total about gt100000 were for adminishystrative expenses and for five small projects requiring less than $10000 each which do not therefore require International Bank approval The reshymaining $800000 financed eight projects all but one of which were industrial

61 International Bank funds are being used as follows

a US $6000 for the importation of two tractors and other agricultural equipment

b US $120000 for equipment to double the capacity of a spinning mill and to make use of cotton waste

c US ~~400OOO to purchase raw cotten for the sarne mill

d US $30200 to purchase two cold-storage railway vans to be used for xport of meat

e US $103600 for the erection of new oil mills

f US C14000 for the erection of a saw mill

g US ~)38100 for the expansion of an oil mill

h US )88000 for the construction of a tannery

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i us $276)0 for five small projects requlIlng imported equipment for a carpentry shop a brick factory a lemonade bottling plant and a mineral water bottling plant and for the importation of gunny bags for the Ceres Company


62 It is still too early to assess the effects of this Loan especially as most of the larger projects financed by the Development Bank have not yet been completed and most of the small projects have not been inspected Evalshyuation is also handicapped by the inadequacy of data on production in Ethiopic

63 The industrial loans i ere all for projects of economic value to Ethiopia The results of only two of them (meat refrigeration and a small saw mill) seem uncertain the saw mill is having difficulty finding an adeshyquate timber supply the owner of the refrigerated vans is having difficulty exporting his meat and may have to sell his vans The industrial projects involved additional equity investments esti~mated at 50-100 of the loans granted It is not possible to say 1nth certainty that these investments would not have materialized in the absence of Development Bank financing

64 Information about the effect of loans to landoNners is meager It seems clear h01rleVer that the small agricultural loans served a useful purpose L~ providing credit to a group which needed it and could otherwise get it only with difficulty but it is probable that they were often not intended for productive purposes The primitive state of agricultural techniques and the absence of an extension service or other means of tying money to methods will for some time to come lL~t the productiveness of lending to 511lall farmers The investments for the purchase of agricultural produce are a special case The investment in Ceres and the several loans to oilseed mills for capital expansion and for working capital have had beneficial effects in the encou~agement of production and the stabilization of the market

65 The mere existence of such a lending institution as the Development Bank which in principle has a specific-project approach to banling asks detailed information about projects before and after lending and disburses funds only for previously agreed expenditures may have an important longshyterm effect on the development of Ethiopia

PART III

LOAN OF ~n~5 rULLli)lJ FOE REHABI~ITJTLN AND DEVSVJdSNT OF TELECOl41IUIJICATIONS-l

A THE LOAN

66 This Loan was made on February 19 1951 and became effective on February 2 1954 the delay being mainly due to initial organizational difficulties It carries an interest rate of 4 including the 1 statutory commission Semi-annual payments of principal are due to begin on March 1 1956 and should retire the loan on March 1 1971 About US $32000 had

See note on next page

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been disbursed US dollars as of April 30 1954

67 As yet no interest charges have been incurred but payments of loan commitment charges have been made when due To date the Borrower has not been requested to deliver any bonds to the Bank as provided in Article III of the Loan Agreement

B THE PROJECT

68 Ethiopias limited telecommunication facilities were built largely during the Italian occupation Hhen the Loan was granted only about 1700 telephones were in existence of which about 1250 were in Addis Ababa Telegraph service was also limited in scope and poor in quality Fewer than 100 communities in the country could be reached by telephone or telegraph Largely because of lack of qualified personnel and management the Ethiopian Government was unable adequately to maintain or repair these facilities during and after the war Unreliable service impeded commercial activity and governmental administratio~and ~~provement was essential

69 The Project for which the Loan vlaS granted consisted of a program for the rehabilitation extension repair and maintenance of Ethiopia l s telecommunications facilities To operate these facilities the Government undertook to establish a special agency to which would be transferred all goverrunent property and equipment used to provide telecommur~cation services (other than military and aeronautical) The charter of this agency as well as its management and staff -vas to be satisfactory to the GoverrLllent and the Bank Before the LoaD could become effective arrangements satisfactory to the Bank had to be made for (a) the establishment of the agency (b) the transfer of the required property to it (c) the management and operation of the telecommunications system (d) paying in Eth $3 w~llion of capital subshyscribed by the Government to cover domestic costs of the project (e) paying in the countervalue in domestic currency of the Loan as withdrawals were made from the Loan Account and (f) payments by the Government for its use of the agencys facilities

70 The proceeds of the Loan vlere to be used to finance the purchase from abroad of equipment supplies and services required to carry out the Project

Additional data may be found in the following Report circulated to the Executive Directors (a) p-16 - Report and Recommendations of the President to the Executive

Directors Concerning Proposed Loan to the Empire of Ethiopia January 24 1950

(b) Loan 114A - Technical Report on the Telecommunication Project in Ethiopia January 15 1951

TELEPHONE EXCHANGES TELEGRAPH SERVICES a MAIN INTERURBAN TELEPHONE LINES

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HERRER l-TOWNS HAVING URBAN TELEPHONE EXCHANGES ( AABABA )-TOWNS HAVING URBAN TELEPHONE EXCHANGES

AND TELEGRAPH SERVICE Awosh l- MAl N TOWNS HAVING I NTERURBAN CONNECTIONS

BUT NO URBAN EXCHANGES l- TOWNS HAVING TELEGRAPH SERVICE ONLY

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71 In the Autumn of 1950 a mission consisting of experts from the International Telephone and Telegraph Corporation and of a Bank consultant had visited Ethiopia to make a technical study of the telecom~unications system On the basis of the report of that mission it had been decided that the program 1trould provide for extension and improvement in three main sectors the Addis Ababa telephone system the provincial telephone and telegraph system and the international system It was agreed with the Governrrent that the management of the agency would make a more detailed survey of the work it proposed to do and 1t-ould draw up a list of goods to be financed from the Loan Account Withdrawals would twe place after that list of goods had been approved by the Bamp~ It was understood also that the agency would sponsor a program to train Ethiopiru1s to operate the telecommunication system

C bull PROGRESS OF THE PROJECT

(i) Establishment of agency

72 In August 1951 the Government designated a General Hanager of the proposed agency from among several persons suggested by the Bank After his arrival in Addis Ababa in October work proceeded sirnultaneously on the drafting of the charter of the agency the acquisition of additional experts from abroad the organization of the agency and the laying out of detailed work programs Because of difficQLties of organization and personnel and of difficulties between the proposed board and management of the agency comshypletion of arrangements for establisrunent of the agency was long delayed

73 In August 1952 the General Eanager Designate resigned The Governshyment proposed a successor who was satisfactory to the Bank In September 1952 agreement was reached between the Goverrunent and the Bank on the charter of the agency the Imperial Board of Telecom~Q~ications of Ethiopia (I3TE) The charter was promulgated on October 15 1952 The capital of the IBTE was set at Eth $6750000 of which Eth $3750000 represented the countershyvalue of the Loan and the rest vlaS domestic currency to be paid in by the GovernTIent in three equal annual installments from 1952 to 1954 The charter provided for a Board of Directors to determine all matters of policy and a General i1anager to be head executive of the IBT The New General [1anager assumed his duties in November 1952

74 On January 1 1953 the IBTE took over from the Ministry of PTT the operations of the telephone and telegraph facilities in Ethiopia On March 1 it assumed the same responsibility in Eritrea

75 Although the at once commenced operations understanding regardshying the conditions for effectiveness of the Loan was not reached until Janshyuary 1954 The Loan became effective on February 2 1954

(ii) Board management and staff

76 Despite occasicYlal difficulties a working relationship has been established between the Board and managenent The management and the techshynical staff drawn largely from abroad are adequate and comptent to carry out the Project

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77 The employees of the IBTE totalled 1179 on January 1 1954 Only 96 of the employees were foreign the remainder Ethiopian The foreigners were in management and supervisory positions It is the established policy of the IBTE that the employment of any foreigner who can be replaced by an equally qualified Ethiopian will be terminated

78 A Telecommunications Institute was established by the IETE in June 1953 Instruction is given both by expert personnel of the IETE and by three persons provided by the United Nations Technical Assistance Ad1Iinistration under an agreement signed for the purpose by the Government and the Ul One of the UN employees director of the Institute Host of the COlrses proshyvide in-service training Courses of lectures and practical work have already been given for telephone and radio operators line-construction foremen cabl6 splicers exchange installers and line testers Other such courses includ1ng courses for telephone supervisors lin~nen r~pairmen automatic eXChange and other technicians storekeepers accounting and marketing personnel are being or will be given Courses of this kind will continue indefinitely though perhaps on a reduced scale so that neO personnel can be trained and existing personnel can be given preparation for advancement

79 In addition the Institute started in July 1953 a two-year course for tHigh Command personnel About half the 31 students (all of whom are secondary school graduates) are being trained for high administrative and half for high technical positions They are given theoretical courses in mathematics physics line construction etc and practical training in the field 1Jl1en the course is completed some of the best graduates may be sent abroad for additional trainirg Graduates gtrill ultimately be qualified for positions as regional ffianagers engineers and traffic officers and as division chiefs and other higher ersonnel at Headquarters

80 In the course of the past year and a half the IBTE has ~offiPeted its administrative organization It consists now of six Headquarters Divisions (Technical Traffic Commercial Financial Personnel and Trainshying) and six regional Divisions (centered on rtddis Ababa Asmara Dassie Dire Dawa J~ma and Gondar) Each of the latter has a Regional Manager to whom report a traffic officer and a regional engineer The detailed organization beneath this level depends on the intensity and complexity of the services provided in the region The Asmara region has the organization and personnel inherited from the British Administration

(iii) Program

81 The IBTEs general prograr1 for reconstruction and L~provement of telecommunication services has been revised several times in the light of continuing study and experience The latest general program covers three years beginning January 1 1953 and includes many items of work which are for rehabilitation and maintenance and are classed as operating expenditures The items in that program classified as capital expenditures are now estimated to require Eth ~5lj million over the three-year period This investment program is made up as follows (in millions of Ethiopian dollars)

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195) ( spent) lcz~ 19~5 Total

1 Addis Ababa exchaJlges 005 042 057 104

2 Interurban services 003 068 075 146

3 Provincial exchanges and networks 004 032 011 047

4 Tools BI1d test equipment 040 011 015 066

5 Salaries and miscellaneous 008 017 038 063

6 International services 028 066 094

7 Broadcasting 007 011 018

060 205 273 538

82 Of this total about Eth $36 million will be financed from the proceeds of the Loan and the remainder from domestic capital funds Large rehabilitation and maintenance expenditures provided for in the general program and the salaries of all foreign eXgerts do not appear in these inshyvestment estimates Nor do certain additiJnal progr~~ed investments appear such as investments for impl~vement and rehabilitation of services in Eritrea for which additional appropriations are now being considered by the Governshyment

83 ~Jork on the investment program was necessarily limited in 1953 because the Loan was not yet available and because of the Governments delay in paying in its capital subscriptions Investments amounted only to Eth ~600ooo Some equipment and stores were purchased abroad with funds conshyverted from domestic currency

84 Because of both lack of funds and the poor condition of existing equipment work was concentrated in 1953 on beginning methodical repair and maintenance work and on keeping operations going while gradually introducing improvements The major new plant acquired and reconstruction work done were installation of eight terminals for single-channel carrier telephone equipment over three new circuits totalling 1650 kIDs opening of new radio-telegraph circuits bebleen Addis Ababa and Assab and between Dire Dawa and Djibouti installation of a new manual exchange in Addis Ababa and of a new manual exshychange and cable netwurk in Dire Dewa and reconstruction of a 75 kw transshymitter near Addis Ababa In addition the following main items of maintenance and rehabilitaGion were carried out 2560 kIDs of lines were repaired the entire Addis Ababa network was overhauled the batteries at the Addis Ababa central exchange and telegraph office were restored radio transmitters and receivers were overhauled varicus buildings both in Addis Ababa and in the provinces were repaired and inproved s1-ritchboards at various provincial stations were overhauled All personnel was examined and most had to submit to brief periods of training In Adnis Ababa all existing stores were sorted and a proper system of accounting for them installed New material was crdered to cover the nost urgent needs

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(iv) Operational and Financial Results

85 The bulk of the work of rehabilitation and improvement remains to be done but the benefit of the lTork that has been done is beginning to be felt Interurban telephone calls from Addis Ababa averaged 1900 per month in 1952 The average in 1953 was 3300 they increased steadily in the year and in October and December exceeded 4700 Outgoing inland telegrams from Addis Ababa increased by 125 in 1953 as compared with 1952 Outgoing foreign telegrams from AdQis Ababa also increased although negligibly by 65 Overall statistics are not yet available

86 Complaints of inadequate and faulty service continue to come to the IBTE The IBTE itself accepts the complaints as inevitable results of the facts that the telegraph amp1d telephone systems were in extremely bad condition at the beginning of its operations and that the lack of funds in 1953 slowed down the gtfork that could have been done if new equipment and more foreign exshyperts and skilled workers were available

87 The increase in use has been accompanied by an increase in the reveshynues Nevertheless IBTE continues to operate at a loss During1953 the loss amounted to about Eth $504OOq about 95 of which represented depreciltion charges Telegraph services noW provide almostmiddot half of all revenues and yield a large profit Urban telephone services also are profit-making Interurban calls are a heavy loss and are expected to be so for some time until their number increases considerably

88 NeT and increased rates for new subscribers and increased rates for all interurban calls were introduced on January 1 1954 Other rate inshycreases may be effected if justified as traffic statistics are acquired and analyzed Horeover despite the provisions of the Loan Agreement the Governshyment has not paid for its use of telephones since June 1953 The Government has promised to resume such payments soon 1lith increasing traffic higher rates ~~d full payment for C~vernment use the prospects are favorable for IBTE to become self-supporting within a reasonable tL~e

89 IETE has received Eth $2 million of the Governments capital subshyscription and Eth $1 million is due in October 1954

(v) Use of Loan

90 All disbursements to date have been for expenses incident to organishyzation before the IBTE co~~enced operations The entire Loan is expected to be disbursed by the end of 1955 Orders are being placed on the basis of international bidding

P EFFECTS OF THE LOAN

91 It is still too early to assess the effects of the Loan but the benefits of establishing a separa~o a~ency competently staffed to operate the telecommunication services are alreaay ~5~ible The Project is well under way and telephone and telegraph serv2ces are ~tt~~oving

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PART rJ

POLITICAL SITUATIO~r

92 The Elnpire of Ethiopia contains a variety of ethnic groups languages and religions The major cohesive force is the Monarchy

93 Ethiopi~ is an absolute monarchy modified only by custom and tradshyition The Emperor holds all important legislative and executive povers In 1931 the Emperor proclaimed and i~ 1942 reaffinned a constitution which provides for two deliberative Chambers a Senate appointed by the lUllperor and a House of Representatives chosen by the notables and local chiefs No law may be put into effect until it has been discussed by the Chambers and approved by the Emperor The constitution provides also for a Council of i1inisters Political parties in the normal sense do not exist The Governshyment is stable

94 Apublic administration in a modern sense has existed in Ethiopia sLI1ce 1942 The Gove-nment employs many foreign advisors to assist in the executive fu1ctions of government as well as in the adjniflistration of justice The Government is still handicapped by the lack of t rained personnel and by the prevailing low level of literacy A primary interest of the Emperor has been the spread of basic education

95 In September 1952 Eritrea under British administration since 1941 was federated with Ethiopia under the sovereignty of the Ethiopian Crown In accordance with the UN resolution of December 1950 Eritrea is an autoshynomous unit in the federation The Federal Government has jurisdiction over defence foreign affairs currency and fina~ce foreign and interstate comshymerce and external and interstate communications including ports Other matters are the responsibility of the Eritreal1 Gove~~ent acting in accordshyance with its own constitution through an elected legislature and a Chief Executive

96 Ethiopias relations with its neighbors and other foreign countries are good

PABT V

ECOHOHIC SITUATION

97 The high prjce of and demand for coffee in the worlds markets have had a strong and beneficial effect on Ethio9ias trade payments and budgetshyary position Exports increased by about 140 between 1949 and 1953 and the share of coffee in the total rose from 30 to 60 Imports also increased but at a much lower rate The result has been that a trade deficit has emngEd to arurplus and the gold silver and fcreign assets of the State B~~ have increased from the equivalent of U5 j~14 million at the end of 1949 to the equivalent of DS $45 million at the end of 1953

98 As most of the Governments revenue derives from import and export taxes revenues have reflected the increase in foreign trade Additional

- 22 shy

income has alsn been obtained by increasi~g tax rates coffee export taxes in particular have been raised several times in the past 18 months Due largely to the Governments conservative fiscal policy and to small investshyment expenditures government receipts have grown at a Clore rapid rate than government expenditures A budgetary deficit of Eth $14 million in 1949shy50 changed to a surplus of Eth $5 million in 1952-53

99 GoverThlient debt is small Internal debt is owed entirely to the State Bank It amounts to about Eth $102 million (about equal to 1953 government revenues) Foreign indebtedness ~aounts to about US $13 million including the US $31 million undisbursed from the Banks loans

100 1-1oney supply has increased by more than 70 in the past four rears This increase reflected primarily the increase in the foreign holdings of the State Bank resulting from balance of palnents surpluses Nevertheless there is no sign of price inflation Prices of domestic goods have remained stable and prices of hlported goods have declined since 1951 The price stability and the lag in imports in the face of increasing cash incomes reshyflect the simple wants of the people and their traditional desire to hoard

101 The outlook for Ethiopias trade and balance of payments and the budget prospects are favorable There is a growing interest in the Governshyment in the development of the country and a oodest increase in the pace of development may be hoped for

t

CURRENCY EQUIVALENTS

Unit Ethiopian $

US $1 =Eth $25 Eth $1 =US $040 Eth $1000000 = US $400000

FIRST LOAN ADHINISTiiATION RElgtORT ON THE THREE LOAlJS TO

THE EMPIEE OF ETHIOPIA

TABLE OF CCNTENTS

Paragraphs Pages

Basic Data i-iii

Introducticm 1 - 7 1 - 2

Part I - Loan of $5 million for tlHl RehClbiitation of Roads

A The Loan 8 - 9 2 B The Project 10 - 13 2 - 3 C Progress of the Project 14 - 29 3 - 7 D Effects of tbe Loa1 30 - 33 7 - 8

Part 11- boan of $2 1Lllion Jr ~hpev~)pment Bank P~ojecv

A The Loan 34 - 35 8 B The Project 36 - 40 8 - 9 C Progress of the Project 41 - 61 9 - 15 D Effects of the Loan 62 - 65 15

Par~ III-Loan of $1 5 million for Rehabilitation -- and-DevTlOD~ent ofTclecommunications

A The Loan 66 - 67 15 - 16 B The Project 68 - 71 16 - 17 C~ Progress of the Project 72 - 90 17 - 20 D Effects of the Loan 91 20

Part IV- fo1itical Situation 92 - 96 21

Part V - yenconomic Situation 97 - 101 21 - 22

Facing Page

Principal Highways of Ethiopia in 1954 3

Telephone Exchanges Telegraph Services and Main Interurban Telephone lines in Ethiopia in 1953 17

- i -

ETHmill

~IC DATA


- 450000 sq miles








(actual)



12lt2 1950 1951 12i~ 1251



- i1 shy





1951 1952 J22119112


deficit (-)




12l2 1950 1951 ill 12ll



1lli 1920 128 1221


Trade balance +17 +153 +382 +156 +583



- iii shy


~ 1950 J921 192~ lli1




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722 289

1129 452


INTRODUCTION










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A THE WAIl



B TIL~ PRC JeCT





HIGHWAYS OF




ETHIOPIA


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O50====130~O~15~O==~2~O MILES

----~------------+_------------__jIOO

BRITISH SOMALI AND

SO

6

r-------~~1-~~~----_+~----~__~~~----------+_----------~--------------_44deg

KENYA


- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








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(iii) Program


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060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- i -

ETHmill

~IC DATA


- 450000 sq miles








(actual)



12lt2 1950 1951 12i~ 1251



- i1 shy





1951 1952 J22119112


deficit (-)




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Trade balance +17 +153 +382 +156 +583



- iii shy


~ 1950 J921 192~ lli1




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1129 452


INTRODUCTION










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HIGHWAYS OF




ETHIOPIA


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- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








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(iii) Program


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(v) Use of Loan




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PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- i1 shy





1951 1952 J22119112


deficit (-)




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B TIL~ PRC JeCT





HIGHWAYS OF




ETHIOPIA


Smiddot

SO

4deg1------------------

~


O50====130~O~15~O==~2~O MILES

----~------------+_------------__jIOO

BRITISH SOMALI AND

SO

6

r-------~~1-~~~----_+~----~__~~~----------+_----------~--------------_44deg

KENYA


- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- iii shy


~ 1950 J921 192~ lli1




2lplusmnJt 138

ltLamp 200

634 255

722 289

1129 452


INTRODUCTION










- 2 shy




A THE WAIl



B TIL~ PRC JeCT





HIGHWAYS OF




ETHIOPIA


Smiddot

SO

4deg1------------------

~


O50====130~O~15~O==~2~O MILES

----~------------+_------------__jIOO

BRITISH SOMALI AND

SO

6

r-------~~1-~~~----_+~----~__~~~----------+_----------~--------------_44deg

KENYA


- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $



INTRODUCTION










- 2 shy




A THE WAIl



B TIL~ PRC JeCT





HIGHWAYS OF




ETHIOPIA


Smiddot

SO

4deg1------------------

~


O50====130~O~15~O==~2~O MILES

----~------------+_------------__jIOO

BRITISH SOMALI AND

SO

6

r-------~~1-~~~----_+~----~__~~~----------+_----------~--------------_44deg

KENYA


- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 2 shy




A THE WAIl



B TIL~ PRC JeCT





HIGHWAYS OF




ETHIOPIA


Smiddot

SO

4deg1------------------

~


O50====130~O~15~O==~2~O MILES

----~------------+_------------__jIOO

BRITISH SOMALI AND

SO

6

r-------~~1-~~~----_+~----~__~~~----------+_----------~--------------_44deg

KENYA


- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $



HIGHWAYS OF




ETHIOPIA


Smiddot

SO

4deg1------------------

~


O50====130~O~15~O==~2~O MILES

----~------------+_------------__jIOO

BRITISH SOMALI AND

SO

6

r-------~~1-~~~----_+~----~__~~~----------+_----------~--------------_44deg

KENYA


- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 3 shy








- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 4 shy







- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 5 shy








- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 6 shy



(v) Eritrea






- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 7 shy





Spare parts 168000

Materials 608000

Services 1055000

Total 4752000






- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 8 shy



PiGT II


A THE 10ill



B bull PHE PROJECT



- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 9 shy









- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 10 shy







I

- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 11 shy







Sub Total 2467000


Total 2271000


(iv) Operations



Loans Outstanding

Number 104 193 337 396



- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 12 -

Dec 31 Dec 31 Dec 31 April 30 1951 1952 1953 1954










- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 13 shy







- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 14 shy















- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 15 shy







PART III


A THE LOAN



- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 16 shy



B THE PROJECT








( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $



( AmiddotoJ

I i i

KENYA

IN ETHIOPIA IN 1953

Adolcbull

-9 Gobo

bull Q





o 50 100 150 200

MILES

YEMEN

---- - olt~

bullNeghellia

[JAW raquo

(

ltgt

- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 17 shy










- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 18 shy





(iii) Program


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 19 shy









060 205 273 538




- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 20 shy







(v) Use of Loan




- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 21 shy

PART rJ







PABT V

ECOHOHIC SITUATION



- 22 shy





t


Unit Ethiopian $


- 22 shy





t


Unit Ethiopian $


t


Unit Ethiopian $


first loan administration report on the three ... - world...

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