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Ethiopia signs Djibouti railway deal with China

January 14, 2012 · 2604014 Comments2012-01-15+04%3A34%3A25Hassan+Ali

ADDIS ABABA — Ethiopia signed an agreement with a Chinese state-run firm to build the final section of a railway line that will link its capital Addis Ababa to the tiny Red Sea state of Djibouti, an official said.

The deal signed late on Friday with the China Civil Engineering Construction Corporation (CCECC) covers a 339-kilometre line that will join another project to connect the capital with Djibouti.

“This agreement is a contract to construct between Mieso, which is half way from Addis Ababa, to the Djibouti border,” Getachew Betru, general manager of the Ethiopian Railways Corporation, told Reuters.

Ethiopia and Djibouti’s economies are reliant on each other with about 70 percent of all trade through Djibouti’s port coming from its land-locked neighour.

CCECC and China Railway Engineering Corporation (CREC) have won tenders for other sections of the 656-kilometre build. Those companies have brokered loans for Ethiopia from China’s EXIM Bank, Development Bank of China and the Industrial and Commercial Bank of China (ICBC), Getachew said.

Ethiopia, which aims to construct 5,000 kilometres of railway lines in the huge country by 2020, says companies from BRIC nations have shown an interest in other projects.

The Horn of Africa country has posted high economic growth rates over the past five years and hopes to exploit growing business ties with China, India and Turkey to boost its expanding economy.

Under a five-year development plan launched last year, Ethiopia aims to boost infrastructure with a plan to increase power production from 2,000MW to 10,000MW and ambitions for 2,600 kilometres of railway lines by 2015.

“We have called on companies from the BRIC countries to be involved in the other projects. They have shown a considerable interest to get into tenders,” Getachew said.

Getachew said Ethiopia will use some of its own funds to cover costs of the projects alongside loans secured from banks.

Ethiopia is looking for long-term loans that could either be on preferential or commercial terms, he said.

It also plans to construct an inter-city light rail system in Addis Ababa.

Reuters

Saturday, Jan 14, 2012

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By Hassan Ali

Tags: China, Djibouti, Ethiopia, Port, Railway system

Omer Hussein Dualeh says:

I dream one day, this line will reach my home town of Hargeisa. We the countries in Horn must share the development of our countries, through partnership. Wars and drought should be tackled in partnership projects like this one. Somaliland is ready to contribute this task, where possible.

Horn of Africa business environment should be encouraged.

12:07 am on January 15, 2012

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Jabuuti_Hanolaato says:

Mashallah to Djibouti. Onward and upward. I can't wait for the day they build a bridge from Djibouti to Yemen with rail tracks. Middle-East's petrodollars and Africa's natural resources, definitely marriage made in heaven.

12:46 am on January 15, 2012

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Kayse says:

Djibouti opps I mean the French Military Camp has no resources to speak of, just a port and a railway. Absolutely nothing else and in the future Ethiopia will switch to Berbera, Zeila, Meid, Kismayu, Mombasa or even Massawa because very soon Isaias will go.

Djibouti depends on Ethiopia by 70%…I wonder where the 30% comes from ohh of course the French soldiers. Djibouti is hell. No wonder they all dwarfs, sun is good for bones (Vitamin D) but in the case of the DJ Oven—the heat melted their bones——-little dwarfs. I bet French Camp Hanolaato uses a ladder to turn his light on.

1:32 am on January 15, 2012

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- Abdirazack says:
  
  You are suffering from a psychiatric disorder due to your negative thoughts; the following will be a good therapy for your mental illness.
  
  We in DJIBOUTI do business at the heart of the Europe-Far East sea route, the second of the three largest routes in the world, an average of 90 large and medium size vessels await transhipment into different destination on a daily basis,Over 20 banks are operating in Djibouti to facilitate these transactions. Ethiopia has surpasses Kenya to become East Africa's Biggest Economy and 90% of their import and export goes through Djibouti. Investment from China and India are on full cylinder in Djibouti and Ethiopia.
  
  Our stability and strategic location are our most precious natural resource and we are moving forward…We stand for business.
  
  7:26 am on January 15, 2012
  
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Hassan says:

Djibouti's number one revenue comes from its port used by Ethiopia, secondly the American and French troops stationed in the country. So djibouti is indirectly colonized by these countries.
Djibouti would never allow Somaliland to develope its economy let alone get recognition as they know they would lose a big share.

9:45 am on January 15, 2012

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- Abdirazack says:
  
  Unlike some big country and powerful, Djibouti has neither the power nor the capacity or influence the recognition of S'Land….It's a negative perceptions from most S'Landers who are still in the days of believing the rumors of the BBC Somali Language…Get real dude
  
  10:27 am on January 15, 2012
  
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Gambella Man says:

Another great newspiece in developpment of my country. This year alone we have continued with massive projects that are the envy of our enemies including:

Grand Renaissance Dam(will be biggest in Africa/11th biggest on globe)
Sheikh Al Amoudis new National Ciment factory.
Train route construction spanning across Ethiopia and touching Djibouti.
Major International Airports being built in Asosa and Jijiga.
International highway connecting Ethiopia and Kenya.

So to all those dark ages stone heads praying that gragn gurey ahmed comes back to life and destroy Ethiopia, you need to stop hating. Ethiopia is the nation you want to be friends with, not fight with. Somaliland and Djibouti realize this and i promise that both will be reaping the benefits real soon.

2:13 pm on January 15, 2012

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abdid says:

so where all the money is going…str8 to ismail g private treasure…..

4:11 pm on January 15, 2012

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Jabuuti_Hanolaato says:

S.Land's number one revenue is exporting four-legged animals to Saudi-Arabia.

No. 2 revenue source you ask? Exporting the two-legged animal or qaxoti to Djibouti and elsewhere around the globe.

4:15 pm on January 15, 2012

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Joe says:

Who cares what business Djibouti makes at the end of the day the ones benefiting are Isaaq entrepeneurs like Jama Mohamud Haid, the governor of Djibouti's so called central bank, Ibrahim Dheere, Khadra Mohamud Haid, Ina M&G aka SomCable owner who also owns all the tobacco businesses in Djibouti and Somaliland.

The only non-Isaaq rich men are Ismail Geele and Borreh.

10:07 pm on January 15, 2012

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Jabuuti_Hanolaato says:

The people you mentioned are leeches living off Ismail. Here is the breakdown.
Khadra shares same bed with Ismail, literally. So naturally she gets piece of the pie.
Mohamud , her brother, is riding her all the way to the bank because she is married to an Issa man.
Ibrahim, old man, has one foot in the grave and his days are numbered. Ismail himself is an old man. Let's see what becomes of your kind once he leaves office. I suggest you look for a place in Hargiese, because sure as hell you will not be living amongst us. You exactly have 4 years, 3 months, several hours to get your affairs in order and get lost.

11:17 pm on January 15, 2012

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Maaydhaane says:

Even though I'm happy for our brotherly country Djibouti, I can't help but feel puzzled about what happened to the plan Railway from Addis Ababa, Ethiopia to Berbera, Somaliland discussed between the leaders of Ethiopia and Somaliland last year. Does this project mean the proposed railway was diverted to Djibouti? Another thing is the much talked about Gas pipeline from Somali Region of Ethiopia to Berbera which is no longer being talked about, I hoped it hasn't been haulted altogether.

Can anyone give us some insight about why these projects have been shelfed?

4:22 pm on January 16, 2012

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Omar says:

Did you know guys we somali Ethiopians are buildind a live stock market in Jigjiga includion darry plants. So all the live stock that Somaliland exports to the middle east and generates huge profits from it will be cease to continue. And instead the people of the Somali state of Ethiopia will benefit because its going to be Ethiopia that I’ll be selling these live stocks to the middle eastern Markets and not somaliland, and as a result Somaliland will suffer tremendous economic decline.

5:47 am on January 17, 2012

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osman says:

It reported the prosposed pipeline project from ogaden region of Eithopia to Berbera, Somaliland has been diverted to Lamu, Kenya. This project is considered the biggest project in the history Africa. it estimated $ 23b which encompasses railway, highways and very long pipelines, connecting South sudan, Eithopia and Kenyan coastal city of Lamu.

It might cause an enviromental distruction due to its size, if an accident occurs. On the other hand, however, It could also have significant economic benefits to Lamu people if it managed properly.

I wonder if the pros and cons of this mega project have been taken into account or perhaps the greedy investors are looking at the very bottom line?
Given the fact that the investos and politicians alike were out for shopping as to the most viable route for their buck quite sometime. A rumor has it, there're chinese investors involved in this project. My guess is that therefore, Somaliland has dodged the bulit this time.

Osman Qaal,
Ottawa, Canada

9:45 pm on March 7, 2012

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