Ethiopia retenders $1.7bn rail scheme interrupted by Tigray war
17 January 2025
Ethiopia has begun looking for a company to restart work on a $1.7bn railway connecting the country’s eastern and northern regions, website Railway Supply reports.
The 392km Awash–Hara Gebeya project was being carried out by Turkish contractor Yapi Merkezi and French consultant Systra with finance from the Turkish Export-Import Bank and Credit Suisse.
As well as the track, the work included 10 substations, 12 tunnels, more than 50 bridges, eight power stations and a repair and maintenance depot.
The railway was intended to link the high-speed Addis Ababa–Djibouti line to the Mekelle–Tajura line in the north of the country.
Work began in 2015 but was suspended in 2020 when war broke out between the federal government and the Tigray People’s Liberation Front. This conflict came to an end in 2022.
The cancellation led to an arbitration case. This was heard in London last summer and has not yet been resolved. According to Ethiopian website The Reporter, Yapi Merkezi is claiming $1bn and the Ethiopian Railway Corporation is seeking $1.6bn in compensation.
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