The African Development Bank (ADB) board of directors has approved a $1.2 million grant for the Ethiopian government to fund a feasibility study for building a railway between Ethiopia and Sudan. The cost of the project is estimated at $9 billion.
In a statement, the ADB said the grant would cover 35% of the total study cost estimated at $3.4 million. The remaining financing will be provided by the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD‐IPPF), in the form of a grant of two million dollars, and a contribution of 100,000 dollars from each of the two countries.
The two-year comprehensive study will assess the technical, economic, environmental, and social feasibility of the proposed project, as well as alternative financing arrangements, including partnerships between the public and private sectors.
In 2017, Sudan announced its agreement with Ethiopia to build railways linking Addis Ababa to Port Sudan on the Red Sea to facilitate the movement of Ethiopian exports and imports. The construction of the railway is expected to take up to four and a half years, according to estimates by government officials.
The proposed project comes in line with the African Bank’s 2016-2020 Ethiopia Strategy Paper and with the long-term development goals of the Sudanese government as outlined in the 25-year national strategy (2007-2031). It also aligns with the 10-year African Development Bank strategy (2013-2022) and the operational priority for infrastructure development.
The project will also fulfill four of the ADB’s high strategic priorities, including Integrate Africa, Feed Africa, Industrialize Africa, and Improve the Quality of Life for the People of the Continent.
