The Ethiopian Railways Corporation (ERC) on Saturday signed a 55-million-U.S. dollar Memorandum of Understanding (MOU) with China Civil Engineering Construction Corporation (CCECC).
Under the agreement, CCECC will build an infrastructure that connects the Chinese built 756 kms Ethio-Djibouti electrified rail line to the 390 kms Awash-Kombolcha-Hara-Gebeya rail line.
CCECC will also build an infrastructure which connects the Awash fuel depot to central Ethiopia as well as other facilities necessary for loading and unloading goods, reported state affiliated media outlet Fana Broadcasting Corporate.
The cost of the Engineering, Procurement, Construction project will be fully covered by the Ethiopian government.
The project is slated to be finished within a one-year period.
CCECC has a long history of supporting Ethiopia’s infrastructure development endeavors, including constructing the Adama, Hawassa and Dire Dawa industrial parks.
CCECC also built the 436-km Mieso-Djibouti section of the 756-km Ethio-Djibouti electrified rail line. Another Chinese firm, the China Rail Engineering Corporation, constructed the remaining 320 kms rail line from Sebeta to Mieso. Enditem