Ethiopia and China have signed a USD 15 million grant agreement to improve the operational efficiency, reliability and long term sustainability of the Ethio-Djibouti Railway.

The agreement was signed in Addis Ababa by Ethiopia’s State Minister of Finance, Tiguist Fisseha, and Liu Xiaoguang, Minister Counsellor at the Chinese Embassy in Ethiopia, representing their respective governments.

Financed through China's aid program, the grant will support supplementary works along the strategic railway corridor, including the provision of essential equipment, infrastructure components and technical assistance.

The project will supply mechanical and electrical spare parts for electric locomotives, specialized railway track components and station yard accessories. It will also provide small-scale machinery to support routine track inspections and maintenance activities.

Chinese technical experts will visit Ethiopia to provide hands on training, technical guidance and capacity building support for local railway personnel.

The assistance is expected to strengthen maintenance capabilities, reduce operational disruptions and improve the overall reliability of the standard gauge railway, which serves as a vital transportation link between Ethiopia and Djibouti.

The agreement also reflects the broader economic cooperation between the two countries, spanning infrastructure development, agriculture, technical and vocational education and training, green development and feasibility studies for future investment projects.

Officials from both governments reaffirmed their commitment to closely coordinating the implementation of the railway improvement project to ensure its successful execution and long term benefits.

Source: Ethiopian News Agency