Study for Ethiopian railroad underway

21 January 2010

The Ethiopian Railway Corporation (ERC) has signed a memorandum of understanding with four foreign companies for the launching of a study on the construction of a rail line in the country.

China Communication Construction Company, China Railway Group, India's Overseas Investment Alliance and a Russian company will undertake independent studies to inform their decision of whether or not to invest in the project that has a projected cost of $1.5 billion (£927 million).

ERC director of the board Hailemariam Desalegn told Addis Fortune that the firm to come forward with the financing would get the contract and they hoped to begin construction before the end of this fiscal year in early July.

The East African Community (EAC) Railway system plans to eventually extend the rehabilitated rail lines in Tanzania, Kenya, Uganda to Ethiopia, along with several other states in the region including southern Sudan and the Democratic Republic of Congo.

Ugandan commissioner in charge of economic affairs on the EAC ministry Rashi Kibowa was quoted by the Monitor as saying the project should be complete by 2018.

Category: Transport