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Ethiopia signs $3.2 billion railway deal


June 30, 2012 (ADDIS ABABA) - Ethiopia has signed two agreements with Chinese and Turkish companies to construct a 3.2 billion dollar railway network.

According to the Ethiopian Railways Corporation (ERC), a Turkish firm Yapi Merkezi will build a $1.7 billion section of the project, while a Chinese company, China Communications Construction Company (CCCC) will build the remaining portion.

The Horn of Africa country plans to construct 5,000 km of railway lines by 2020. Some 1,808km of it is expected to be completed by 2015.

The railway network in northern part of the country will run from Mekele-Woldiya Hara Gebeya-Semera-Dicheto-Elidar, ultimately linking northern regions with Port Tadjourah in neighbouring Djibouti allowing an alternative route to land locked Ethiopia.

The northern railway project will have an extension which runs from Woldiya-Awash joining the Addis Ababa-Djibouti line.

Upon completion, Ethiopia hopes to transport potash, metals and other products from northern mines to Djibouti’s Port Tadjourah for international market.

The nationwide massive railway network will enable passengers to easily travel to every corner of the country. The government hopes the railway will further boost trade across nation. India has granted Ethiopia a $300 million loan which will cover 665km of rail line.

Since Ethiopia launched the 5-year growth and transformation plan (GTP) in 2010, the country is investing billions for infrastructure and industries.


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  • 1 July 2012 09:02, by Gutema

    Thank you God! We are going to be Great! GO TO GREAT HEIGHTS MOTHER LAND!

    repondre message

  • 1 July 2012 10:53, by Kikiji longiro


    Why are you people making a mistake.The main thing we need at the moment is to build the South Sudanese pipeline to Tadjourah port.The rest one will come step by step.

    The really econmy today in our zone is in South Sudan.


    repondre message

  • 1 July 2012 18:53, by Justice Seeker

    As you are aware, the pipelines project is already underway. Surveying has already started after the signing ceremony of the Lamu project among the three countries (South Sudan, Kenya and Ethiopia). Hope this clarifies your query.

    repondre message

  • 2 July 2012 00:49, by panom lualbil

    I thought like if the constructions of RAILWAYS, PIPELINES and ROADS would be incorperated by ETHIOPIA, KENYA and SOUTH SUDAN where A COUNTRY could fund each portion and finish it before that of ETHIOPIA expected by 2020. Man ! I am furious to hearing from president that INSFRACTURES of ours also starte soon!

    repondre message

    • 2 July 2012 10:47, by Kikiji longiro

      I think South sudan is still running inside mistakes. Why do they signed a double pipelines contracts.One through Ethiopia & the other to Kenya meanwhile from Bentui to Ethiopia is simple then from Bentui to Lamu port in kenya.

      Taking one thing in a time is better than taking ten things in
      a time.Learn so that your sins will be forgiven after acknowldging them.


      repondre message

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