MOFCOM provides RMB 155 million grant — via ECTA — for Addis Ababa Light Rail Rolling Stock Spare Parts Project

Project narrative

On February 14, 2023, the Chinese Government and the Government of Ethiopia signed letters of exchange, committing RMB 155 million of grant funding for the Addis Ababa Light Rail Rolling Stock Spare Parts Project. The purpose of the project is to provide 573 types of rolling stock spare parts to support the Addis Ababa Light Rail. The grant proceeds were drawn from an Economic and Technical Cooperation Agreeement (ECTA) that the parties previously signed. At the time that the February 2023 agreement was signed, the lack of spare parts had left 23 of the Addis Ababa Light Rail’s 40 trams inoperable. At the same time, low ticket prices, overcrowded and limited services, along with electricity issues, had made it difficult for the Addis Ababa Light Rail to generate enough income to cover operational costs. Ethiopian railway officials admitted in January 2023 that years of inadequate maintenance left half of the network’s rolling stock unusable.