India, China To Finance Construction of Rail Network Across Ethiopia

[DelhiDareDevil]

March 30, 2011 (Ezega.com) -- India and China have separately agreed to finance construction of a railway corridor across Ethiopia. The proposed 2,395-km national rail track, which is part of the Growth and Transformation Plan, is being seen as quite significant for the transportation system in this east African country.

The entire railway network to be constructed across Ethiopia is estimated to cost $6 billion, of which India has pledged $300 million. The country seeks $300 million more from India, which has pledged assistance for the development of infrastructure in Africa.

Besides India, China has pledged $490 million to finance 85 percent of the cost of the Addis Ababa railway network. The Export and Import Bank of China has signed a deal with Ethiopia to fund a significant amount for the construction of the 36.5-km-long light rail network in Addis Ababa, the capital city.

According to an estimate, construction of every kilometer of the 2,395-km-long national rail track is expected to cost $2-3 million, while the prioritized 1,808-km-long rail network, targeted to be completed in five years, would likely cost $4.5 billion. The railway corporation vows to complete the remaining part soon.

With the total cost of the entire project estimated at $6 billion, the Ethiopian Government seeks more assistance for the Growth and Transformation Plan from both of its infrastructure development partners.The Ethiopian Railway Corporation has high hopes from the Addis Ababa rail network, which is seen as the solution to the mounting transportation problems facing the capital city. The Addis Ababa rail system will be supplemented by buses and taxis, for which the Ethiopian Railway Corporation seeks Chinese assistance.

During Indian external affairs minister’s visit to the country in February 2010, the president of Ethiopia requested for Indian assistance to build an extensive rail transport network connecting the major towns of the country and a rail corridor with Djibouti. In the recent years, there has been a growing competition between India and China to fund projects in African countries and provide loans and assistance for infrastructure development.

Continuing its focus on Africa program, China has agreed to provide four buses in built-in condition along with the transfer of their manufacturing technology. The Government of Ethiopia plans to use this technology to manufacture more units of such buses in the country.

Ethiopia lacks local expertise in construction of infrastructure development, which is vital to the country’s progress. Lack of finance has consistently delayed government’s efforts to establish and build a railway transportation network across the country in the past. Now both politicians and citizens hope that foreign assistance will deliver them a good communication technology and enhance their capability to extend it in the future.

India, China To Finance Construction of Rail Network Across Ethiopia

 

[madooxno9]

WE have been dealing Africans in better way then Chinese, though China is largely involved in Africa and sucking the resources in return of Infrastructure and aids . Same work is being done by India but India is keeping little low and is not in lime light as China for the "so called slaves industry" it has created there. It's not my word it is what world is saying even the people who work with them as co-workers from small things to big thing.

I really do not know how much it is true but their has been a lot of talks about it .


Regarding to the topic , it' s very nice to hear that Both nations are working closely in Africa ... that will help us stick to Africa for longer time.

Coz later or sooner WEST will start making it's way in Africa for resources.

 

[StingRoy]

Couldn't add up the math here. (highlighted) How does $490 million become 85% of the cost?

The entire railway network to be constructed across Ethiopia is estimated to cost $6 billion, of which India has pledged $300 million. The country seeks $300 million more from India, which has pledged assistance for the development of infrastructure in Africa. Besides India, China has pledged $490 million to finance 85 percent of the cost of the Addis Ababa railway network.

Both India and China would have made bids and the Ethiopian govt would have decided to share the contract 50-50%

 

[Obambam]

WE have been dealing Africans in better way then Chinese , though China is largely involved in Africa and sucking the resources in return of Infrastructure and aids . Same work is being done by India but India is keeping little low and is not in lime light as China for the "so called slaves industry" it has created there. It's not my word it is what world is saying even the people who work with them as co-workers from small things to big thing.

I really do not know how much it is true but their has been a lot of talks about it .


Regarding to the topic , it' s very nice to hear that Both nations are working closely in Africa ... that will help us stick to Africa for longer time.

Coz later or sooner WEST will start making it's way in Africa for resources.

As a country grows, it will inevitably start to consume more. In order to sustain the growth it must look outwards. At least the African nations are happy with China's business propositions. We didn't land our army there and plunder their land did we?
They have plenty of resources but they lack the ability to develop infrastructures so China offered to help in return for resources. There is nothing wrong there as everything is legit. Unlike what the west did, they raided and enslaved the people.
Please get yourself clued up about Africa's history and digest the definition of 'slavery' before posting.
I am pretty sure if India has the opportunity to shine, they will. Fact that they are "keeping little low" is because they are not quite there yet and is still behind China in many aspect. I don't see India keeping itself low on the 'arms import' department? Reality is, you simply cannot have everything, India needs to walk before they run. It took China decades to get to where we are today, so don't expect to get there overnight.

 

[casual]

WE have been dealing Africans in better way then Chinese, though China is largely involved in Africa and sucking the resources in return of Infrastructure and aids . Same work is being done by India but India is keeping little low and is not in lime light as China for the "so called slaves industry" it has created there. It's not my word it is what world is saying even the people who work with them as co-workers from small things to big thing.

I really do not know how much it is true but their has been a lot of talks about it .


Regarding to the topic , it' s very nice to hear that Both nations are working closely in Africa ... that will help us stick to Africa for longer time.

Coz later or sooner WEST will start making it's way in Africa for resources.

"slaves industry" is quite a serious and hateful assertion. citation needed

the language you used quite anti-china. sucking the resources in return of Infrastructure and aids? not really. it's more like buying the resources and providing aid and infrastructure financing.

and i applaud india for helping the africans. i believe it's the right thing to do.

 

[Anonymous user]

WE have been dealing Africans in better way then Chinese, though China is largely involved in Africa and sucking the resources in return of Infrastructure and aids . Same work is being done by India but India is keeping little low and is not in lime light as China for the "so called slaves industry" it has created there. It's not my word it is what world is saying even the people who work with them as co-workers from small things to big thing. .

I am interested in how India supports Africa with regards to infrastructure project, numerous videos on the internet already cover how China does it and I would like to know more about India's role. Do you have any links/video on this?

 

[StingRoy]

I am interested in how India supports Africa with regards to infrastructure project, numerous videos on the internet already cover how China does it and I would like to know more about India's role. Do you have any links/video on this?

Don't have video links right now, but I am sure you will find some. Lots of Indians have been working in Africa and running industries since past 30-40 years... mostly in Tanzania, Zambia, Kenya, Nigeria, South Africa. I know a lot of people in the Indian community in Africa. A lot of them also run NGOs and are actively working towards rural upliftment and education... since a lot of these issues are similar to ones we face here in India.

You can say there has been a human touch towards Indian presence in Africa for a long time now.

Indian construction firms making inroads into Africa

‘South Africa can benefit from India’s infrastructure plans’

 

[BigTree.CN]

If China builds infrastructure in exchange for resources in Africa, it is called robbery; if India does the same thing in Africa, it is called good-will assistance!

 

[Water Car Engineer]

though China is largely involved in Africa and sucking the resources in return of Infrastructure and aids . Same work is being done by India but India is keeping little low and is not in lime light as China for the "so called slaves industry" it has created there. It's not my word it is what world is saying even the people who work with them as co-workers from small

These comments are silly, it's honesty fair game..

Obambam comment is enough..

As a country grows, it will inevitably start to consume more. In order to sustain the growth it must look outwards. At least the African nations are happy with China's business propositions. We didn't land our army there and plunder their land did we?
They have plenty of resources but they lack the ability to develop infrastructures so China offered to help in return for resources. There is nothing wrong there as everything is legit. Unlike what the west did, they raided and enslaved the people.
Please get yourself clued up about Africa's history and digest the definition of 'slavery' before posting.
I am pretty sure if India has the opportunity to shine, they will. Fact that they are "keeping little low" is because they are not quite there yet and is still behind China in many aspect. I don't see India keeping itself low on the 'arms import' department? Reality is, you simply cannot have everything, India needs to walk before they run. It took China decades to get to where we are today, so don't expect to get there overnight.

 

[Anonymous user]

I saw a video once on infrastructure projects in Africa quite funny really, a Chinese company had just finished a brand new highway coupled with roadside barriers and traffic lights etc, a week after the road opened people already looted the traffic lights and what not. After that I really doubt how much all the modernization can help Africa if the people don't help themselves first.

 

[StingRoy]

I saw a video once on infrastructure projects in Africa quite funny really, a Chinese company had just finished a brand new highway coupled with roadside barriers and traffic lights etc, a week after the road opened people already looted the traffic lights and what not. After that I really doubt how much all the modernization can help Africa if the people don't help themselves first.

Atleast the road remains for the public to use.

One cannot simply blame the African people for such an act... and neither can we expect a fully responsible society overnight. It takes time to change the attitude of the people, education and prosperity has a big role to play in this. If we work together helping the social structure in Africa, it will help them grow a collective ownership of their infrastructure and only then we will see a rise in their willingness to help themselves.

 

[Mech]

What is interesting to me is the fact that india and china are trying to take on the african challenge.....while trying to out do the other. I think the future is going to be a very interesting one for indians and chinese alike. I just hope we dont clash.....it will destroy us both.

 

[acetophenol]

thats a good news !

 

[milvipes]

In a race to build railroads in Africa you say?

 

[Anonymous user]

Atleast the road remains for the public to use.

One cannot simply blame the African people for such an act... and neither can we expect a fully responsible society overnight. It takes time to change the attitude of the people, education and prosperity has a big role to play in this. If we work together helping the social structure in Africa, it will help them grow a collective ownership of their infrastructure and only then we will see a rise in their willingness to help themselves.

I certainly hope so