Wednesday, October 26, 2011

Ethiopia, China sign Ethio-Djibouti railway construction agreement

Ethiopia - Djibouti railway
Ethiopia and China signed agreement on Tuesday for construction of the first phase of Ethio-Djibouti railway project.

General Manager of Ethiopian Railway Corporation Dr. Eng. Getachew Betru and Vice President of China Railway Group (CREC) Zhou Mengbo signed the agreement.

Deputy Prime Minister and Foreign Affairs Minster, Hailemariam Desalegn on the occasion said the railway construction is among mega projects of the government during the implementation of Growth and Transformation Plan (GTP).

Deputy PM Hailemariam, who is also board chairman of the Ethiopian Railway Corporation, said the construction of the railway line from Addis Ababa to Adama costs 3.9 billion US dollars and the Adama - Mieso 3.7 million US dollars per km.

The first phase of Ethio-Djibouti railway project covers 317-km of the total 665-km length. The line is stretching from Addis Ababa to Mieso.

CREC, the world’s major railway contractor is expected to complete the construction work within three and a half years.

Company's vice president on his part said the installation of the railway would be a historic one and the company will strive to complete the work as per the schedule.

The total cost of more than 1.1 billion US dollars would be covered by long term loan from the Chinese government and the Ethiopian government.

According to the GTP, launched a year ago, the nation envisages constructing 2,395-km of railway lines.

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