Ethiopia agrees £960m deal from China for new railway line

25 June 2012

Ethiopia's transport system is to receive a boost from China in the next few years after a $1.5 billion (£960 million) agreement was made, The Africa Report has revealed.

The state-run China Communications Construction Company (CCCC) has agreed to help construct a new railway line in the northern part of Ethiopia - a project that is set to take three years to complete.

Around 260 kilometres of new track will be laid to connect Mekele and Hara Gebaya, helping to transport potash from mines in the north-east of the country.

Furthermore, passengers will be transported to the nearby Djibouti's Tadjourah port, currently under development, as well as freight.

According to the news provider, the new railway is part of a wider five-year growth and transformation plan to improve the country's infrastructure.

It also comes only a month after the African Water Facility announced it will be providing a €2 million (£1.6 million) grant for the development of water resources in the country and South Sudan.