European banks to finance Ethiopian railway constructions

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Addis Ababa, 16 June 2014 (WIC) - European banks have decided to finance Ethiopian railway constructions.

According to the Reporter, Credit Suisse and the Turkish export and import bank (ExIm bank) are the two that have agreed to finance the railway lines.     

Credit Suisse has helped in convincing and organizing the European banks to finance the constructions and on June 20, 2014 Credit Suisse is expected to sign an agreement with Ethiopian finance and economic development ministry.

The European banks have agreed to finance the 400 km railway line that stretches from Woldia to Awash which is part of the lengthy Mekelle to Djibouti’s Tajura port railway line.     

The banks will finance 85% of the 1.7 billion dollar project cost and the remaining finance is expected to be covered by the Ethiopian government.

Some commented that the European banks agreeing to finance projects in Ethiopia have a huge significance for the country and such situations haven’t been seen in the country’s recent history.

The Mekelle-Djibouti railway line construction is divided into three parts. The first leg of the construction which stretches for 260 Kms from Mekelle to Woldia is to be constructed by the Chinese construction company CCCC with 1.5 billion dollar finance from the Chinese ExIm bank.
The second one being the Woldia-Awash line mentioned above and for the third and final leg of the construction from Awash to Tajura port of Djibouti finance hasn’t yet been secured.

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