BusinessCompaniesEthiopia, China in $ 1.5 billion railway deal

Wed,20Sep2017

Posted on Monday, 25 June 2012 17:43

Ethiopia, China in $ 1.5 billion railway deal

By The Africa Report

Ethiopia and a Chinese company have signed a $ 1.5 billion railway agreement to build a new railway line in the northern part of the Horn of Africa country.

The railway project is part of Ethiopia's five-year Growth and Transformation Plan-GTP/Photo/Reuters

The deal between the Ethiopian Railway Corporation and state-run China Communications Construction Company (CCCC (1800) was concluded over the weekend.

The project will cover 260 kilometers of rail to connect Mekele and Hara Gebaya in the northern part of Ethiopia.

According to the agreement, the project will be finalised in three years.

The railway would be used to transport potash from mines being developed in the northeast.

It will also be used to transport passengers and freight along a route to neighbouring Djibouti's Tadjourah port, which is being built.

The Ethiopian Ministry of Foreign Affairs said CCCC (1800), a Chinese government-owned transportation infrastructure company, will be "mobilising substantial resources to guarantee completion of the project.

Ethiopia recently signed a similar agreement with the Chinese company for the construction of 4,700 kilometer railway line to connection Addis Ababa and Djibouti after the closure of the route five years ago.

The project is part of the country's five-year Growth and Transformation Plan-GTP, which aims to undertake a multi billion investment on various development projects, including Africa's biggest dam, and become the major supplier of electricity to neighbouring countries, like Sudan, Kenya and South Sudan.



Last Updated on Thursday, 18 October 2012 13:59

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