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China Eximbank provides $2.49 billion loan for the Addis Ababa–Djibouti Railway Project (Linked to Record ID#61941, #70083, #70085, #70086, and #46183)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Ethiopia |
| Country | Ethiopia |
| Start Date | May 15, 2013 |
| End Date | Sep 13, 2033 |
| Duration | 7,426 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 30171 |
Grant Description
China Eximbank provides $2.49 billion loan for the Addis Ababa–Djibouti Railway Project On 15 May 2013, China Eximbank provided a $2,490,760,000 loan to the Government of Ethiopia for the Addis Ababa–Djibouti Railway Project (or Djibouti-Ethiopia Railway Project).
This $4,273,890,000 public-private partnership (PPP) project was financed with 85% debt and 15% equity. 25% of the debt came from an Ethiopian commercial bank and 60% of the debt ($2.49 billion) came from China Eximbank.
Total interest rate is 0.421% + 3% = 3.421. China Eximbank provided this loan through three separate loan tranches.
One tranche is worth $220,471,000 (covered in Record ID#70083), the second is worth $981,260,000 (covered in Record ID#70085), and the third is worth $1,289,029,000 (covered in Record ID#70086). The loan was also insured by China Export and Credit Insurance Corporation (SINOSURE).
However, the loan was restructured in 2018 when China Eximbank agreed to extend the maturity by 20-years (see Record ID#61941).
Sinosure reportedly had to write off US$1 billion in losses due to the poor commercial performance of the Addis Ababa–Djibouti Railway Project.
In 2011, Ethiopian Railway Corporation awarded China Railway Engineering Corporation (CREC) a $1.4 billion contract to build the 330 km Sebeta/Addis Ababa to Miesso section, and China Civil Engineering Construction Corporation (CCECC) a 579 million USD contract for the 339 km from Miesso to Ethiopia's border with Djibouti.
Track laying for the railway began in May 2015. On October 4-5, 2016, the railway was opened.
Then, on July 28, 2016, CCECC signed the Addis Ababa-Djibouti Railway Operation Management Service Contract on behalf of China Earth Group and China Railway Joint Venture‚ with Ethiopian Railway Company and Djibouti Railway Company, creating a public private partnership (PPP), and the railway was opened to traffic in October 2016.
In January 2017, Ethiopia and Djibouti signed an agreement to establish a joint company that would manage the railway. Ethio-Djibouti Standard Gauge Railway Share Company (or Ethio-Djibouti Railway) was then established in April 2017.
On December 31, 2017, Ethiopian Railway Company issued the Yaji Railway receiving certificate to CREC and CCECC and on January 1, 2018, Ethiopia, China and Djibouti held a ceremony at the Rab Station in Addis Ababa, the starting station of the Yaji Railway Passenger Transport, officially announcing the commercial operation of the Yaji Railway and sending a round-trip freight train between Yades and Djibouti Port.
On January 3, 2018. a two-way passenger train in the Ethiopian section was opened. The Yaji Railway runs passenger trains (at 120 km/hr) and cargo trains (at 80 km/hr). It is the first modern electric railway in Ethiopia. The 759 km railway begins at Sebeta, just outside of Ethiopia's capital of Addis Ababa.
The city is served by two stations in its southern outskirts, at Furi-Labu and Indode. The line then runs southeast to Modjo and Adama, both towns located in the Ethiopian Great Rift Valley. At Modjo, a railway junction exists for the planned Modjo–Hawassa Railway.
In addition, at Modjo the railway is connected to the Modjo Dry Port, Ethiopia's most important inland dry port and also Ethiopia's main hub for domestic and international freight services. At Adama, the railway turns northeast towards Dire Dawa. At Awash, there is a junction with the Awash–Hara Gebeya Railway, which is under construction as of 2018.
Directly after Awash station, the line crosses 60 meters above the Awash River canyon over a 155 meter long bridge, the main bridge of the railway.The railway then proceeds to Dire Dawa, where it turns and heads directly for Djibouti.
Crossing the Ethiopia-Djibouti border between Dewale and Ali Sabieh, the line reaches the Djibouti passenger terminal at Nagad railway station, near Djibouti–Ambouli International Airport.
CREC and CCECC are currently undertaking all the maintenance, rail captaincy and control operations through a joint venture company (Chinese name: 中土集团与中铁二局亚吉铁路联营体公司).
The railway is part of phase one of Ethiopia's ambition to put in place a network of over 5,000 km of railway lines by the end of the second five-year Growth and Transformation Plan (GTP-II) period.
Staff Comments
The Chinese project title is 东非亚吉铁路项目.
Sources & References
- http://global.factiva.com/aa/?ref=AFNWS00020130523e95n00191&pp=1&fcpil=en&napc=S&sa_from=
- Ethiopia Courts BRICS for Rail Links to Spur Economic Growth
- China Lends US$3.3 Billion to Ethio-Djibouti Railway project in the Horn of Africa
- Ethiopia signs Djibouti railway deal with China
- Addis Ababa -- Djibouti Railway Project Lot 1 & 2 Sebeta -- Adama -- Mieso
- Sebeta-Miesso Railway Project Over By 18 Percent
- Ethiopia
- Djibouti secure $3 bln loan for railway project, http://www.ena.gov.et/story.aspx?ID=8055
- Djibouti-Ethiopia rail-line launched
- Loan agreement signed for 756km Addis Ababa/Sebeta-Djibouti railway project
- THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA US$1,000,000,000 6.625 per cent. Notes due 2024 Issue Price: 100 per cent.
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- 习近平主席特使徐绍史出席亚吉铁路通车仪式
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- Experts discuss technical, legal frameworks on Ethiopia-Djibouti railway
- WELCOME ETHIO-DJIBOUTI RAILWAY, 21世纪经济报道专访中土集团董事长袁立
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- Addis Ababa)
- Chinese investments in Africa go off the rails
- Addis Ababa–Djibouti Railway, “ 一带一路 ”PPP 项目案例 —— 东非亚吉铁路项目, 'Belt and Road' PPP project case-East Africa Yaji Railway Project
- Prospectus - Standalone_228f3a84-2355-481d-8be1-662143d0c098
- 驻埃塞俄比亚大使谈践与埃塞官员和学者出席亚吉铁路开放日
- 驻埃塞俄比亚大使谈践出席亚吉铁路媒体开放日
- 非洲人欢天喜地踏上中国投资的列车
- Ethiopia hails economic importance of Chinese-built Ethiopia-Djibouti railway
- Chinese-built modern Ethio-Djibouti railway begins commercial operations
- Worldwide: Clyde & Co / East African Investor: January 2018 Update
- Chinese construction earns high reputation from overseas
- China agrees to restructure Ethiopia’s railway loan
- Spotlight: Chinese engagement in Ethiopia's economic boom in a nutshell
- Ethiopia bags China debt deal, others wait
- Ethiopia
- Tanzania electric trains to speed up cargo movement
- Ethiopia-Djibouti infrastructure projects hit 15 bln USD
- Feature: Chinese-built railways put Ethiopia on track to meet 2025 development goals
- China to restructure Ethiopia loan repayment
- ETHIOPIA’S LOAN PAYMENT EXTENDED FOR 30 YEARS BY CHINA
- Chinese-built Ethiopia-Djibouti railway begins operations
- Abuja-Kaduna rail costs N1.7bn per kilometre
- Chinese-built and funded Ethiopia-Djibouti electric rail line begins commercial operations
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- Silk Road to the Sahel: African ambitions in China’s Belt and Road Initiative
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- Ethiopia and China signed agreement on Tuesday for the construction of the first phase of Ethiopia-Djibouti railway
- Joyous Africans Take to the Rails
- With China’s Help
- Ethiopia
- China to sign USD 3.3 Bln Loan Agreement
- Construction of new Addis Ababa-Djibouti railway
- China to sign $ 3.3 bln loan for Addis-Djibouti Railway project
- Ethiopia signs Djibouti railway deal with China
- Ethiopia
- Djibouti secure $3 bln loan for railway project
- Ethiopia-Djibouti Railway Line Modernisation
- Ethiopia
- 亚吉铁路完成移交并正式投入商业运营
- UPDATE 1-Ethiopia PM says China will restructure railway loan
- An Economic Analysis of Djibouti - Ethiopia Railway Project
- Ethiopia: A Preferred Location for Foreign Direct Investment in Africa
- China extends debt repayment period for Addis Ababa-Djibouti railway
- China Extends Debt Repayment for Ethiopia
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- China pursues awe-inspiring project of century
- All aboard for Africa's heartland - on a train built in China
- Ethiopia-Djibouti railway to start commercial operations in October: minister
- MODELLING AND ANALYSIS OF THE LIFE CYCLE COST OF A/A – DJIBOUTI RAILWAY TRACK
- Chapter 5: Infrastructure Sector Development Status and Future Plans considering Regional Corridor Development
- 埃塞总理出席亚-吉铁路铺轨贯通仪式
- China Railway Construction participated in the construction of the first 'China-wide' railway in the whole industry chain - Yaji Railway opened
- Botched Chinese railway project in Africa is a warning to belt and road investors, “一带一路”PPP项目案例 ——东非亚吉铁路项目 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
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Government of Ethiopia
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