This archive report was first published on 10 June 2020.
On June 10, 2020, the African Development Bank's Board of Directors approved a grant of over Sh100 million to Ethiopia's government to finance a feasibility study for a standard-gauge railway link between Ethiopia and Sudan.
The grant, provided by the African Development Fund, will cover 35% of the total estimated $3.4 million cost of the study. The remaining funding will be provided by the NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) and a contribution from both countries involved.
The two-year feasibility study will assess the proposed project's technical, economic, environmental, and social viability, as well as alternative financing arrangements, including a public-private partnership (PPP). The railway line will link Addis Ababa in Ethiopia to Khartoum in Sudan, with an extension to Port Sudan on the Red Sea.
The absence of a regional arterial route linking Ethiopia, Sudan, and other countries in the Horn of Africa is a significant barrier to trade, development, and regional integration. The implementation of the railway project would benefit a large proportion of Ethiopia's 110 million people and 43 million inhabitants of Sudan, as well as populations in the wider region.
