August 23, 2010 -- The Export and Import (EXIM) Bank of China reached an agreement with the Ethiopian Railway Corporation (ERC) to finance its Light Railway Network project in Addis Ababa, reports Capital news.
The bank signed an agreement with ERC a few months ago. However, it still has to get final approval of the Chinese government which is expected in four to six weeks.
The light Railway Network project is expected to transport 20,000 passengers per day and is hoped to be a solution for Addis Ababa’s transportation problems. The railway service has a so-called T-shaped segment. The first track heads from east to west and connects the Ayat roundabout with the Torhailoch ring road. The second track starts from Menelik Square and heads towards the Merkato Bus Station. It passes through Sebategna and Abenet and links up with the east-west line. After that, the combined track will continue towards Meskel Square and make a right turn in the direction of the Akaki roundabout.
The Chinese government has also given its green light for the funding of the Addis Ababa - Djibouti project. In line with this agreement, ERC signed a contract with the Chinese Railway Corporation (CRC) two weeks ago to undertake the Addis Ababa-Me’eso Railway Projects, which is part of the line from the capital city to Djibouti.