Agreement Signed for the Construction of Mieso-Dire Dawa

Agreement Signed for the Construction of Mieso-Dire Dawa-Dewele Railway Project
Written by Administrator
Thursday, 22 December 2011 06:12 - Last Updated Friday, 24 May 2013 06:00
December 16, 2011:- Ethiopian Railways Corporation (ERC) and China Civil Engineering
Construction Corporation (CCECC) signed an agreement for the construction of Mieso-Dire
Dawa-Dewele Railway Project at a ceremony held at the Hilton Hotel.
Dr. Engineer Getachew Betru, General Manager of ERC and Mr. Yuan Li, President of CCECC,
signed the agreement at the presence of H.E. Ato Deriba Kuma, FDRE Transport Minister and
H.E. Ato Seyoum Mesfin, Ethiopian Ambassador to China.
Dr.Getachew (right) and Mr. Yuan signing the agreement
Dr. Getachew Betru, General Manager of ERC, on the occasion, noted that due to the rapid
growth of the economy the transport requirements could rise to a phenomenal level for both rail
and load transport. The Manager went on to say that currently the cost of transport is very high
due to increased transport charge, inefficient facilitation and inadequate capacity. According to
Dr. Getachew, studies indicate that Ethiopia spends about 18% of its import value and 8% of its
export earning on transportation and this gives a weighted average of about 15% of the total
foreign trade value annually.
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Agreement Signed for the Construction of Mieso-Dire Dawa-Dewele Railway Project
Written by Administrator
Thursday, 22 December 2011 06:12 - Last Updated Friday, 24 May 2013 06:00
All the above required the government to consider alternative land transport like railway and
these are the rationales behind making railways infrastructure building as part of the GTP,
Getachew noted.
Mr. Yuan Li, on his part, said that his Company is experienced in railway development and will
complete the Project in time and with required quality. The Project, which is part of the Addis Ababa-Dire Dawa-Djibouti Railway Project and among
the priority projects to be constructed within the coming five years, has among others, the
following features:
• It has 339 km length,
• It is single track with standard gauge (1.435m),
• Provides services both for passengers and freight transportation,
• Connects Addis Ababa with the port of Djibouti, and
• Is driven by renewable energy source (electric traction).
The contract agreement follows EPC Turnkey (engineering, procurement and construction)
contract agreement approach and CCECC has reached a deal to undertake the engineering,
procurement and construction responsibilities.
The Project is expected to cost 3.5 million USD per km and will be financed by the Ethiopian
Government and from loan to be provided by the Chinese Government.
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