Brazil to Co-Finance Ethiopian Railway

Brazil is to co-finance the Ethiopian railway infrastructure construction project alongside China and Turkey.

The Ethiopian Ministry of Finance and Economic Development is in the final stages of negotiations with Brazil for the financing of the Sebeta-Ijaji-Jimma-Bedele railway project according to sources at the ministry.

It is to be remembered that Andrade Gutierrez S.A , Brazilian contractor signed a Memorandum of Understanding  with the Ethiopian Railway Corporation last financial year handle the construction of the railway project under the condition that it will find financing. The negotiation between the two sides have reached the final stages and financing has secured requiring only the approval of the lending party and official from the MoFED for the funds to disbursed according to sources.

Andrade Gutierrez will become the fifth company following three Chinese contractors China Communication Construction Company, China Railway Engineering Corporation, China Civil Engineering Construction Corporation and Yapi Merkezi Construction Industry already involved in the railway project.

The Chinese and Turkish companies also came up with funding for the projects from finance external finance sources including the Chinese Export-Import Bank and its Turkish counterpart.

The 496km Addis Ababa-Ijaji-Jimma-Bedele railway line is expected to transport passengers and freight and is designed to be powered by renewable energy. 

Source: Capital