The Ethiopian House of Peoples Representatives has approved the US$300 million credit line credit extended from the Indian EXIM Bank in June for the construction of the Asaita-Tadjourah segment of the Mekelle-Tadjourah railway.

The Growth and Transformation Plan of the Ethiopian government has proposed to construct 2,395km of railway line. The single-track railway project is expected  to cost around US$ 1.08 billion, but the actual project cost will be known following the completion of detailed studies in two months time, according to Sufian Ahmed, Minister of Finance and Economic Development.

The Ethiopian Railway Corporation and its Djiboutian counterpart will also to setup a company that will regulate and facilitate the railway transportations,according to Sufian.

Source: Capital