$2 Billion USD Loan Agreement Signed for 756 Km Addis Ababa to Djibouti Railway Project (Video)
Addis Ababa, May 23, 2013 — (WIC) — Ethiopia, Djibouti and China here on Wednesday signed a loan agreement amounting to over two billion USD for construction of 756 km Addis Ababa/Sebeta – Djibouti railway project.
The loan secured from EXIM Bank of China will also cover the cost of the remaining 100 km railway project that extends from the Ethiopian border with Djibouti to the Port of Dorrale.
According to ENA, the project will play a pivotal role in reducing time to the Djibouti Port and contributes to the economic growth in Ethiopia The agreement was signed by CEO of the Ethiopian Railways Corporation, Dr. Eng. Getachew Betru, Minister of Economy and Finance of Djibouti, llyas Moussa Dawazeh, and EXIM Bank Vice President Zhu Xinqiang in the presence of PM Hailemariam Dessalegn and other officials.
The Addis Ababa – Djibouti Railway Project is 656 Km long (now increased to 756 Km) connecting Addis Ababa with the port of Djibouti. Double track from Addis Ababa to Adama (107 km) and single track from Adama to Dewele (549 km). Both will be used for freight and passenger transportation and they are driven by renewable energy source (electric traction) Standard Gauge (1.435 meters).
Ethio-Djibouti Railway Receives Multi-Billion Dollar Financing
May 27, 2013
With support from the Chinese Export & Import Bank, the project is expected to improve the relationship between the neighboring countries
The Chinese Export & Import Bank (EXIM) provided a 2.3 billion dollars loan for the construction of the Ethiopia-Djibouti electrified railway project, in an agreement signed on Wednesday, May 22, 2013, at the Sheraton Hotel.
This loan, accompanied by a five million dollar loan to Djibouti, will cover 70pc of the cost of the new Ethio-Djibouti electric railway track, with construction already underway.
The track is 756kms long. China Railway Engineering Corporation (CREC) is undertaking the construction of the 317km segment from Sebeta to Meiso, while the China Civil Engineering Construction Cooperation (CCECC) is constructing the 339km line, from Meiso to Dawale, at the Djibouti border. The CCECC will also construct the remaining 100kms to the Red Sea port of Doraleh, in Djibouti.
“[This project] will play a critical role in reducing the travel time to the Djibouti port and its contribution to the economic development of Ethiopia is expected to be substantial,” said Getachew Betru (PhD), CEO of the Ethiopian Railway Corporation (ERC), during the signing ceremony.
“This project is the game changer in our bilateral relationship and cooperation with Ethiopia,” said Liyas Moussa Dawazeh, Djibouti’s Economy & Finance minister.
At present, Ethiopia is constructing a total of 2,400kms of national electric railway network and 34kms of light rail, in Addis Abeba, as part of its five-year Growth & Transformation Plan (GTP).
“We are always there to support the development plans of both countries,” said Zhu Xinqiang, vice president of EXIM Bank of China.
The old 781km track remains out of function years after going out of service, although employees of the Ethio-Djibouti Railway Enterprise still come to work regularly. A maintenance that was underway in 2007 with a 50 million Euro grant from the European Union was interrupted shortly afterwards.
Source: Addis Fortune