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Ethiopia Secures $1.4 Bln Credit Suisse Loan For Railway Project

Ethiopia Secures $1.4 Bln Credit Suisse Loan For Railway Project

Ethiopia secured a $1.4 billion loan facility from Credit Suisse, a Switzerland-based financial group, to finance the construction of Harro market railway line, Ethosport quoted The Reporter saying.

The line stretches from Awash to Weldia, both in the Amhara Regional State, and is part of the national railway project that extends from Mekele, the capital of the Tigray Regional State, to Djibouti, via Semera, in the Afar Regional State.

The loan agreement will be officially signed on Wednesday by officials from Credit Suisse and the Ministry of Finance and Economic Development (MoFED), sources told The Reporter. According to sources the board of directors at Credit Suisse has already approved the loan facility ahead of the signing ceremony.

Turkish company Yapi Merkezi secured the contract for the construction of the 389kms Awash to Weldia section, estimated to have cost $1.7 billion. Credit Suisse will provide USD 1.4 billion, while the Ethiopian government will cover the difference of $300 million.

This is the first time that Credit Suisse has financed a project in Ethiopia, but sources revealed the Swiss multinational will actively participate in funding American and European corporations if they commit to undertake large developments in Ethiopia.

It was reported that the China Communication and Construction Corporation (CCCC) has secured construction for the Mekele to Weldia part of the rail line. This project, estimated to cost some $1.5 billion, is financed by the Chinese EXIM bank and covers some 260kms.

The section that stretches from Mekele to Port Tajura, Djibouti, covers a total distance of 675kms, and is expected to link the northern part of the country to the central, in addition to neighboring markets such as South Sudan.