Ethiopia has launched a tender to resume construction of a 392-kilometer railway connecting key regions. The project aims to enhance the country’s transportation infrastructure. This was reported by the railway transport news portal Railway Supply.

Ethiopia has launched a tender to resume construction of a 392-kilometer railway connecting key regions
Photo:ERC

International bidders are invited to assess the losses and costs to restart the halted construction. Work was suspended due to armed conflicts, complicating the project’s realization.

Ethiopia Strengthens Transportation Infrastructure

The railway will connect the eastern and northern economic zones, improving interregional connectivity. It will also integrate with the Mekelle-Tajura and Addis Ababa-Djibouti railway lines.

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The project began in 2015 in collaboration with the Turkish contractor Yapi Merkezi. The total construction cost was $1.7 billion, funded by Turkish Exim Bank and Credit Suisse.

Resuming Work Amid Economic Challenges

Construction was halted in 2020 due to armed conflicts, forcing the contractor to abandon the project. Yapi Merkezi demanded $500 million in compensation for losses, while ERC is claiming $1.6 billion.

The dispute is under review at the London International Arbitration Court, which is expected to issue a decision in the coming weeks. Ethiopia hopes to find a new partner to complete this strategic project.

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