Fortune News | Mar 12,2020
July 6 , 2019
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )
The government is considering the construction of a 1,512Km standard gauge railway line that will connect Ethiopia with Sudan.
To determine the feasibility of the project, the Ethiopian Railways Corporation has tendered a request for proposal looking for a company to conduct a study on the project, requesting the submission of financial and technical offers.
Approximately 594Km of the railway line will run through Ethiopia starting in Addis Abeba, travelling through Weldia, Wereta, Gonder and Metema and then across the Sudan boarder. The remaining 918Km line will connect Metema with the Port of Sudan running through Galabat-Gadarif-Kassala and Haiya towns in Sudan. Two percent of Ethiopia’s cargo is ferried through Port Sudan.
Expected to begin in four to five months, the overall process of the feasibility study is planned to be completed within 20 months, while the construction of the railway line is expected to take up to four and a half years.
The African Development Bank, a financial institution comprising 54 African countries and dedicated to promoting economic and social progress in the continent through loans, equity investments and technical assistance, will finance the study.
The Bank has allocated an estimated 3.2 million dollars for the study. It will disburse the funds under two components: for the preparation of a complete feasibility study and to cover regional validation workshops to build consensus, review and approve the study outputs.
The project will present a strong case for economic development in the Horn of Africa by reducing the costs of doing business by facilitating the movement of persons and goods, providing infrastructure to transport goods and services supporting trade, industrialisation and regional integration, according to Abdul B. Kamara, (PhD), country manager of the African Development Bank Group.
“The role of the Bank in the feasibility study is in monitoring the implementation of the project through supervisory missions and quarterly progress reports submitted by the Corporation,” said Abdul.
The winning consultancy firm will assess the engineering services, cost estimates, railway operation analysis, environmental and social impact analysis, economic and financial analyses, economic evaluation and sensitivity analysis and private sector participation.
Engineers in the railway industry estimated the total cost of the project to be nine billion dollars. The 656Km railway that connects Ethiopia with the port of Djibouti cost the two countries 4.2 billion dollars.
Inaugurated in October 2017, the Ethio-Djibouti railway was constructed by China Railway Group Ltd and China Civil Engineering Construction Corporation after the two countries secured 70pc of the financing from the Export-Import (EX-IM) Bank of China.
An expert in the railway industry believes that the project could not be realised, due to the current debt level of Ethiopia.
“The Corporation has to take a lesson from the ongoing railway projects,” he adds.
Weldiya-Hara Gebeya-Mekelle railway project that covers 216Km has been under construction by China Communications Construction Company at the cost of 1.5 billion dollars. After construction of the project reached 56pc completion, construction was halted due to financial problems.
Tesfaye Melaku, a lecturer in the economics department at Bahir Dar University, believes that the project will not be realised, since the government has announced it does not have a plan to start new mega projects until it is finished with those already begun.
“Securing financing in the current economic situation of the country is a major challenge,” said Tesfaye.
The government should work on solving electric power shortages before planning to build a new railway line that operates by electrical power, according to Tesfaye.
Dereje Tefera, communications director of the Ethiopian Railway Corporation, declined to comment on the issue.
PUBLISHED ON Jul 06,2019 [ VOL 20 , NO 1001]
Fortune News | Mar 12,2020
Radar | May 25,2019
Fortune News | Nov 29,2020
Advertorials | Jul 11,2019
Radar | Feb 01,2020
Radar | Mar 07,2020
Editorial | Feb 01,2020
Commentaries | Jun 29,2019
Fortune News | Mar 16,2020
Featured | Sep 14,2019
January 3 , 2021 . By ABDUREZAK LESMAN
Women wearing netela, a white cotton garment with woven coloured borders, and men in...
December 26 , 2020 . By MAYA MISIKIR
Black and white markings on their legs and large semi-circular rimmed horns that stre...
December 12 , 2020
Dietrich Rogge, founder and CEO of Rockstone, a German-based real estate developer an...
December 5 , 2020
The circumstance of this girl, carrying a child on her back, fleeing her home for safety, is the collateral damage of the armed conflict in...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
January 9 , 2021
There is something curious about elections that have been conducted in Ethiopia since...
January 2 , 2021
One by one, Workneh Gebeyehu (PhD), executive secretary of the Intergovernmental Auth...
December 26 , 2020
It is refreshing to see a publicised high-level government meeting become somewhat co...
December 19 , 2020
There is no shortage of ironies in Ethiopia’s history. One of the cruellest, perhap...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
The COVID-19 pandemic, having seen over 126,000 cases reported across Ethiopia and leading to the deaths of around 2,000 people, had a silve...
Or see contact page