Ethiopia Retenders $1.7 Billion Awash-Hara Gebeya Railway Project

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In an aim to boost the railway infrastructure in the country, Ethiopia has commenced the search for a company that will be responsible for restarting development works on $1.7 billion Awash-Hara Gebeya Railway project.

The 392-kilometer Awash-Hara Gebeya railway project was being executed by the Turkish contractor Yapi Merkezi and the France-based consultant Systra. The railway development project attained its funding from both Turkish Export-Import Bank and Credit Suisse.

Project Factsheet

Length: The railway line is approximately 392 kilometers long.

Construction Start Date: The project began construction in 2015.

Financing: The project is financed with a $1.7 billion investment from the Turkish EXIM Bank.

Contractors: The project is being built by the Turkish company Yapi Merkezi under an EPC (Engineering, Procurement, and Construction) Turnkey Contract.

Speed: The railway is designed to run at speeds up to 120 km per hour.

Infrastructure: It includes 10 substations, 12 tunnels, 52 bridges, 8 power control stations, and 12 radio poles.

Purpose: The railway aims to connect the northern and central parts of Ethiopia, enhancing transportation infrastructure and boosting economic development.

Also read: $13.8 Billion 3000-Kilometre Kenya-Ethiopia Railway Construction Agreement Signed

Project Scope

Inclusive of the railway track, the work also entailed the development of 10 stations and 12 tunnels . Furthermore, there will be the development of over 50 bridges, eight power stations, and lastly the construction of a both repair and maintenance depot.

This railway project was originally intended to connect the high speed Addis Ababa-Djibouti railway section with Mekelle-Tajura railway line that is located in the northern part of Ethiopia.

Challenges Facing the Project

The development works on the railway project kicked off in the year 2015. However, the project had to be suspended in 2020 following the war that broke out between the Ethiopian government and Tigray People’s Liberation Front. Fortunately, this war ended in the year 2022.

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The cancellation eventually led to an arbitration case. The case was heard in UK London last summer. Unfortunately, it has not been resolved. According to the Ethiopian media outlet, The Reporter, Yapi Merkezi is claiming a total of $1 billion and the Ethiopian Railway Corporation is seeking an amount of $1.6 billion in compensation.

Also read: $13.8 Billion Kenya-Ethiopia Railway Construction Plans Resume

 

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