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Ethiopia, China to sign USD 3.3 Bln Loan Agreement

Following the decision of the government of China to finance the Ethio-Djibouti railway project, high-ranking officials of Export Import Bank of China are expected to arrive in Addis Ababa in the coming days to finalize an agreement between the finance Ministers of Ethiopia and China.

The signing of the agreement would pave the way for the release of the USD 3.3 billion loan which will be used to finance the 752.7km railway project which connecting Sebeta town of Oromia Regional State with Djibouti’s Negad Port.

The project would be accomplished in three phases, two of which would be implemented on the Ethiopian side, and the third, in Djibouti.

The Chinese Railway Engineering Corporation will construct the Addis Ababa-Meiso railway line while the Meiso-Dawalleh route will be built by China Civil Engineering Corporation.

Source: Walta