Project ID: 1471

China Eximbank provide $475 million loan for Addis Ababa Light Rail Project

Commitment amount

$ 507304430.9

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Ethiopia

Sector

Transport and storage (Code: 210)

Flow type

Loan

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2011

Implementation

2013

2013-04-01

Actual start

Completion

2015

2015-11-09

Actual

Geography

Description

On June 22, 2011, China Eximbank signed a $475,000,000 loan agreement with the Ethiopian Railways Corporation (ERC) for the Addis Ababa Light Rail Project. The terms of the loan were as follows: interest rate of 6 month LIBOR (0.398%) plus 2.6%, 3 year grace period, 23 year maturity (see 'Public Sector Debt'). The Government of Ethiopia provided a sovereign guarantee for the loan. Construction was undertaken by China Rail Engineering Corporation (CCECC). Construction began in April 2013. Each train was planned have a capacity to carry 286 passengers for a maximum capacity of 300,000 passengers/day. The Addis Ababa light rail metro system is a 31.6 km electrified light rail transportation system with two lines: a 17.4 kilometer east-west line and a 16.9 kilometer north-south line. The east-west line stretches from Ayat village to Tor Hailoch passing through Megenagna, Legehar and Mexico Square The north-south line passes through Menelik II Square, Merkato, Lideta, Leghar, Meskel Square, Gotera and Kaliti. The light rail metro system was designed to facilitate transportation in a city of 5 million clogged with other forms of transportation. Trial operation of the railway began on February 1, 2015 (see '驻埃塞俄比亚大使解晓岩出席亚的斯亚贝巴城市轻轨试运行仪式'). The north-south line commenced operations on September 20, 2015, and the east-west line commenced operations on November 9, 2015. The rail system will be run until 2020 by the Shenzhen Metro Group and the China Railway Engineering Corporation. According to official figures, the rail system carried on average 105,000-110,000 daily passengers in its first 14 months of operations. Tickets currently cost two to six birr ($0.08 to $0.20), depending on the distance of the trip. ERC earned 5 million U.S. dollars in revenue from the light rail line during the Ethiopian Fiscal Year 2016/17 (see 'Ethiopia earns 5 mln USD from Addis Ababa Light Rail Transit in 2016/17 fiscal year'). By January 2017, the rail system had carried over 50 million customers (see 'UNECE International PPM Forum'). In 2018, The Ethiopian Railway Corporation prepared to take over operation of the railway from China Rail Engineering Corporation (see 'Corporation to takeover AALRT from Chinese operators').

Number of official sources

25

Number of unofficial sources

36

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Ethiopian Railways Corporation [Private Sector]

Implementing agencies [Type]

China Civil Engineering Construction Corporation (CCECC) [State-owned Company]; China Railway Engineering Corporation (CRECG) [State-owned Company]; Ethiopian Railways Corporation [Private Sector]

Accountable agencies [Type]

Loan type

Concessional

Maturity

23 years

Interest rate

2.998%

Grace period

3 years

Grant element

45.87185385%

Gurarantee provided

Yes

Insurance provided

No