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Even though most of the construction of the Hawassa-Moyale highway is going on according to plan, work on the Hawassa-Chiko road, part of the project linking Ethiopia and Kenya, has been interrupted, affecting the local economy. The road lies on a busy corridor, and the interruption has disrupted the lucrative coffee and khat trade, not to mention its impact on provision of potable water, healthcare and transport services to the local community.

The 63-km-long road is expected to be complete within two years, and the Ethiopian government and the African Development Bank will defray its 965 million birr cost. Sino Hydai, a construction company, has recently won a bid to undertake the project. Owing to the difficult terrain, work on the Hawassa-Moyale road has been parceled out to 67 contractors.