$1bn deal for Ethiopian Railway
28 October 2011
A $1 billion (£625 million) deal has been agreed between the Ethiopian Railway Corporation (ERC) and the China Railway Group (CREC) that will see new railway infrastructure built in the country.
The CREC will build a new line which will stretch from Sebeta, which is 25 km west of Addis Ababa, to Meiso, a town east of the capital, according to the Africa Report.
When finished, the line will stretch for a total of 320 km, and is part of Ethiopia's five-year development plan. Within the five-year timeframe, the country wants to construct more than 3,000 km of new railway infrastructure.
Getachew Betri, general manager of the ERC, said the project was the first of its kind in Ethiopia and will help boost economic growth.
He added that the line "will have a great role for our export and import activities through the Djibouti port in the future".
Ethiopia was recently given a $125 million loan from the African Development Bank, which will go towards the building of a vital road link in the country.