Ethiopia is seeking an additional loan of 300 million US dollars in financing for the last stretch of the Awash-Woldiya-Mekele Railway Project, from the government of India.
The new loan will be in addition to the original 300 million US dollars promised by Indian Prime Minister Manmohan Singh.
Discussions to negotiate the conditions of the loan arrangement are underway between the governments of the two countries according to Genet Zewdie, Ethiopian Ambassador to India.
Contracts for the construction of two out of the three sections included in the railway construction project have been awarded to Turkish and Chinese companies. The China Communications Construction Company is in charge of building the Mekele-Woldiya section while the Turkish company Yapi Merkezi Construction was awarded the Awash to Woldiya section of the Tadjourah railway.
The Tadjourah project is intended to offer Ethiopia an alternative port to alleviate the increasing problem with congestion at Port Djibouti. The railway is also intended to facilitate the transport of Potash mined in the Northern parts of Ethiopia to the regional and international markets according to sources.
The Indian government has been active in supporting a range of development oriented projects in Ethiopia including the rail sector, construction of sugar factories and electrical infrastructure as well as offering opportunities for further training for Ethiopian professional noted Genet. http://www.2merkato.com/
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