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African Development Bank is dedicated to combating poverty and improving the lives of people of the continent and engaged in the task of mobilizing resources towards the economic and social progress of its Regional Member Countries. Ethiopia is getting assistance from African Development Bank for the rural water supply and sanitation program. The protocol of agreement between the Federal Democratic Republic of Ethiopia and The African Development Fund entered into force on 25 February 2006. AfDB donated Ethiopia 64 million American dollars be consumed within the span of three years. This work evaluates the financial performance and comes up with device measures regarding the implementation of the program in an effective and efficient way.