Written by Meron Tekleberhan Monday, 04 February 2013 08:50
The Ethiopian Ministry of Finance and Economic Development backed a 505 million US dollar loan extended to Djibouti by the Chinese Export-Import Bank. The ministry responded to a request for a guarantee for the loan to be used in the construction of Djibouti’s part of the railway connecting it to Ethiopia.
The bank has accepted the Ethiopian guarantee and approved the loan according to sources.
The new railway is expected to be 752.7 kilometers in length with 670.7 kilometers to be constructed within Ethiopian territory and the remaining 82 kilometers extending into Djiboutian land. The country is expected to utilize this loan for the construction of the railway track over the 82 kilometers.
In related news Ethiopia and Djibouti have launched a joint commission to coordinate the development of the railway project. The commission is expected to handle the execution of the project so that the completion schedule is met on both sides according to sources.
The Ministers of transport for both countries are responsible for setting up and staffing the commission so as to enable it to be ready to address diverse issues which could occur in relation to the construction program. Source: The Reporter