China Lends US$3.3 Billion to Ethio-Djibouti Railway project in the Horn of Africa

ethiopian-railway

The Chinese government has agreed to provide US$3.3 billion in financing to the Ethio-Djibouti Railway project in the Horn of Africa.

Officials from the Export-Import Bank of China will travel to the Ethiopian capital of Addis Ababa in early May to put the finishing touches on the agreement between the finance ministers of China and Ethiopia.

The $3.3 billion loan will be used to construct a 752.7-kilometre railway between Sebeta, situated in central Ethiopia, to Negad Port in the Republic of Djibouti.

The project will be constructed in three phases, of which two of will take place on the Ethiopian side of the border with the third in Djibouti.

Chinese construction companies will be extensively involved in the project with the China Railway Engineering Corporation responsible for construction of the segment of railway line between Addis Ababa and Meiso, and the China Civil Engineering Corporation entrusted with building the Meiso-Dawalleh route.

The huge loan is part of increased efforts by China to provide financial support to emerging economies in Africa and other parts of the world in exchange for access to resources and commodities needed to fuel its own burgeoning growth.

In March, the China Development Bank, China’s largest foreign investment and financing bank, executed an agreement with South African freight rail company Transnet to provide $5 billion in infrastructure funding.

The China Development Bank has provided a total of $16 billion in financing to over 30 African nations.

The Chinese government has further stated that it will provide an additional $20 billion in loans over the next three years to support the development of Africa’s infrastructure, agriculture and manufacturing sectors.

Ethio-Djibouti Railways, jointly owned by the governments of Ethiopia and Djibouti, has struggled in recent years, running annual deficits which have compelled it to seek financial assistance from international lenders.

In 2009 it was reported that no passenger service had been provided between Addis Ababa and Dire Dawa, the country’s second largest city, while services between Djibouti and Dire Dawa were suspended completely in August 2010.

ethiopian-railway

Source : designbuildsource

Similar Railway & Urban Transport News

  • U.S. $3.3 Billion Loan for the Construction of Addis-Djibouti RailwayU.S. $3.3 Billion Loan for the Construction of Addis-Djibouti Railway U.S. $3.3 Billion Loan for the Construction of Addis-Djibouti Railway : Following the decision of the government of China to finance the Ethio-Djibouti railway project, it was learned  (April 29) that high level officials of China's Exim Bank will arrive in Addis Ababa in the coming days to finalize an agreement between the finance Ministers of both Ethiopia and China. This would […]
  • Ethiopia says new railway to Djibouti to start in early 2016Ethiopia says new railway to Djibouti to start in early 2016 Ethiopia says new railway to Djibouti to start in early 2016 : Ethiopia expects to open a new railway line linking the capital Addis Ababa with the Red Sea state of Djibouti in early 2016, a project at the centre of plans to create new manufacturing industries, the head of the state railways said. The 700-km (450-mile)line is being built at a cost of $4 billion by China Railway […]
  • China firms building new 700km railway in EthiopiaChina firms building new 700km railway in Ethiopia China firms building new 700km railway in Ethiopia :Ethiopia expects to open a new railway line linking the capital Addis Ababa with the Red Sea state of Djibouti in early 2016, a project at the centre of plans to create new manufacturing industries, the head of the state railways said. The 700km line is being built at a cost of US$4 billion (RM14.47 billion) by China Railway […]
  • Transnet, China Development Bank Sign AgreementTransnet, China Development Bank Sign Agreement Transnet and the China Development Bank have signed a cooperation agreement which will help to finance the construction and upgrade of railway and port infrastructure. The agreement, which was signed on Tuesday, 26 March 2013, as the Brics Summit got underway in Durban, also includes - but is not limited to - cooperation on localising equipment manufacturing, especially in the rail […]
  • Hungary plans to build a new railway using Chinese fundsHungary plans to build a new railway using Chinese funds Hungary plans to build a new railway link funded by a credit line signed with China last year to open a new freight route to western Europe, the government said on Wednesday. The two-track link which would cross the river Danube with two bridges would cost 360 billion forints ($1.6 billion), and Hungary aims to finance it mostly from Chinese funds. For that it needs to persuade […]

Last updated by - .

126 / 0.876
RaillyNews | Railway magazines with power of RayHaber located at Adalet mah. Anadolu cad. Megapol Tower 41/81 , İzmir, Bayraklı . Reviewed by 8198 customers rated: 4.8 / 5