On June 16, 2015, in Addis Ababa a Loan Agreement was signed between The Federal Democratic Republic of Ethiopia and the Kuwait Fund for Arab Economic Development. The agreement constitutes a K.D. 6.5 million loan, equivalent to about US$ 22.1 million, which will help fund the Axum Water Supply. Along with the loan a Project Agreement was also signed between the Axum Water Supply, Kuwait Fund and Sewerage Utility. The Loan will cover about 47.7 of the costs for the project.
The purpose of the Project is to provide a clean sustainable water supply for the city of Axum and the surrounding areas. It is set until the year 2050 and involves building a water supply and treatment systems which will begin at the Maychew River in the Tigray National Regional State which is about 30 kilometers south of Axum.
This is the seventh loan made by the Kuwait Fund to Ethiopia, the previous six have totalled about K.D 43.3 million, approximately US$ 147.22 million. The funding has focused on projects pertaining to water, transport and power within Ethiopia.