ERC – Railway Network Development – Ethiopia - Project Profile
"ERC – Railway Network Development – Ethiopia - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.
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Ethiopian Railway Corporation (ERC) is undertaking the construction of Railway Network Development project in Ethiopia.
The project involves the construction of 5,060km railway line from Addis Ababa, the capital city of Ethiopia to various regions of the country to connect about 49 towns.
The railway network in northern part of the country will run from Mekele to Woldiya to Hara Gebeya, ultimately linking northern regions with Port Tadjourah in neighboring Djibouti allowing an alternative route to land locked Ethiopia.
The project will be developed in two phases. The first phase consists of the construction of 2,066 km railway line and the second phase consists of the construction of 2,994 km railway line.
The first phase of the project consists of railway line being developed in five different sections and the section one includes the construction of 752km railway line from Sebeta town near Addis Ababa to Durale via Dewele town near Djibouti, section two includes construction of 252km railway line from Mekele to Hara Gebeya /Weldiya, section three includes the construction of 423km railway line from Addis Ababa to Bedele/Jimma via Ejaji, section four includes the construction of 370km railway line Weldiya/Hara Gebeya to Awash via Kombolcha and the section five includes the construction of 265km railway line from Weldiya - Semara - Elidar – Tadjourah.
The second phase of the project of railway line being developed in seven different sections, the first section include the construction of 301km railway line from Jimma to Dima via Guraferda, the second section includes the construction of 460km railway line from Ejaji to Kumuruk via Nekemet and Assosa, the third section includes the construction of 382km of railway line from Shire to Mekele, the fourth section includes the construction of 454km railway line from Fentoselam to Weldiya via Bahirdar and Werota, the fifth section of railway line includes the construction of 244km railway line from Metema to Werota via Azezo, the sixth section includes the construction of 905km line from Mojo to Moyale and the seventh section include the construction of 248km line from Adama to Ginir via Indeto.
The section one of the First phase of the project includes the construction of 752km line in three sections, the first section includes the construction of 320km railway line from Sebeta town to Meiso town, the second section includes the construction of 332km railway line from Meiso town to Dewele and third section includes the construction of 100km railway line from Dewele to Durale.
Study works on the project was undertaken by four different companies China Communications Construction Company Ltd, China Railway Group, Overseas Infrastructure Alliance Private Ltd, and a Russian company.
In October 2011, China Railway Group was appointed as the EPC contractor for the first section of first phase section one.
In January 2012, China Civil Engineering Construction (CCEC) was awarded the US$1.2 billion EPC contractor for the second section of first phase section one.
In February 2012, China Railway Construction Corporation (CRCC) was awarded the US$505 million EPC contract for First, the Third Section of First Phase section one.
In July 2012, China Communications Construction Company Ltd was appointed as the EPC contractor for the section two of the first phase and Yapi Merkezi Group was appointed for the construction of the section four of first phase.
Andrade Gutierrez has been appointed as the construction contractor for section three of the first phase.
On July 7, 2013, the construction work on the new Nagad Railway Station commenced, which will form part of section one of first phase.
Ethiopia has secured US$100 million from the Chinese Export-Import Bank EXIM, while India has pledged a US$300 million loan for the project development.
Construction works on the other sections are getting delayed to commence, due to financiers have been unable to release the expected loan on time.
In May 2014, Swiss bank approved US$865 million loan for section four of the first phase.
Brazil's National Bank for Social and Economic Development (BNDES) is providing a US$1 billion loan for section three of the first phase.
Seven financial institutions along with the Ministry of Finance and Economy Development (MoFED) and the ERC were expected to sign a loan agreement for the construction of the Awash to Weldiya section in July 2014, however, it has been postponed.
On May 14, 2015, the foundation stone was laid for the section three of the first phase.
In the third quarter of 2015, construction activities commenced on section three of the first phase.
Tendering activities on section five of the first phase are getting delayed as bidders were requested many times to prepare technical and financial bids.
In December 2015, 93.5% of construction works completed on section one of the first phase.
September 2016, marked the completion of construction activities on the first section of the first phase.
As of July 2017, 51% construction works were completed on the fourth section of the first phase.
Construction activities are currently underway for second, third, fourth, fifth sections of the first phase and Planning activities are underway on the second phase and the entire project is expected to be completed in 2021.
The project involves the construction of a 5,060km railway line from Addis Ababa to Djibouti in Ethiopia.
The US$10,701 million project includes the following:
1. Construction of a 2,066km railway line in the first phase in five sections
2. Construction of 2,994km railway line in the second phase in seven sections