Addis Ababa

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Addis Ababa Djibouti Standard Gauge Railway
Project Es May 2, 2012
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Topics of Discussion

• Background Information
• Development of A.A Djibouti New Standard Gauge
  Railway Line
• Techno-Economic Feasibility Study
• Conclusion

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Background

• A) Socio-Economic Conditions
• Ethiopia
• Area about 1 million square kilometer
• Population 74 million (2007 Census) 80
  million in 2011
• Addis Ababa (capital city)
• Population 2.74 Million (2007)
• cover 32.27 all cities population
• annual growth rate 2.1
• Growing City size of 540 sq. km
• About 110 Embassies/Consulates
• Head Quarters of AU and UNECA

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Background continued

• Djibouti
• Border countries Eritrea 109 km, Ethiopia 349
  km, Somalia 58 km
• Area 23,200 square kilometer
• Population 774,389 with a growth rate of 2.285
  (2012 Census)
• Capital Djibouti
• Two-third of the population of the country live
  in the capital city

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Background continued

• The Economy of the two countries (Ethiopia and
  Djibouti) is highly integrated and is at the
  stage of convergence
• Various Preferential Bilateral Agreements
• Closely work at different levels
• The Heads of State and Government
• Joint Ministerial Commission
• Joint Border Administration
• Technical Committees
• Members of IGAD, COMESA

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Background continued

• B) Transport and other infrastructure

No Parameter Unit of Measure Prior to 1991 Cumulative 2010 2011 2015
1 Road km 26,050 (FRA RRA) 48,800 (FRA RRA) 64,500 (FRA RRA) 71,523 (URARP)
2 Railway km About 800 (old meter gauge) Preparation for standard gauge 2,395 (new standard gauge)
3 Power MW lt800 2,000 10,000 including Millennium Dam)
4 Import mill T/yr lt 1 reached 8.7 estimated 10 in 2015
5 Export mill T/yr ltlt 1 reached 0.98 Estimated 3 in 2015
Note FRA Federal Roads Authority RRA Regional Roads Authority, URAR P Universal Rural Access Road Project FRA and RRA are Asphalt and Gravel while URAR P is all weather rural road Note FRA Federal Roads Authority RRA Regional Roads Authority, URAR P Universal Rural Access Road Project FRA and RRA are Asphalt and Gravel while URAR P is all weather rural road Note FRA Federal Roads Authority RRA Regional Roads Authority, URAR P Universal Rural Access Road Project FRA and RRA are Asphalt and Gravel while URAR P is all weather rural road Note FRA Federal Roads Authority RRA Regional Roads Authority, URAR P Universal Rural Access Road Project FRA and RRA are Asphalt and Gravel while URAR P is all weather rural road Note FRA Federal Roads Authority RRA Regional Roads Authority, URAR P Universal Rural Access Road Project FRA and RRA are Asphalt and Gravel while URAR P is all weather rural road Note FRA Federal Roads Authority RRA Regional Roads Authority, URAR P Universal Rural Access Road Project FRA and RRA are Asphalt and Gravel while URAR P is all weather rural road
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Background continued

• C) History of Railway in Ethiopia and Djibouti
• Railway service began before 100 yrs (1915)
• The Legacy Railway is 1,000 mm gauge with diesel
  traction
• It is owned and administered by the governments
  of Djibouti and Ethiopia (Bi-lateral ownership
  and operation)
• It stretches from Addis Ababa Djibouti (about
  780 km 680 in Ethiopia and 100 in Djibouti

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Background continued

• One Meter gauges were very popular in East
  African Countries (Kenya, Uganda, Tanzania )
• In all of these countries, all suffer from
  old-age, lack of spares, technology obsolescence
• High operating cost, worn out track, too old
  Locomotives, low capacity (12 -16 Ton/Axle)
• Intermittent service only in few one segment
  (Dire Dawa to Port of Djibouti 459 km)
• A legacy system and historical tie of sisterly
  countries

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Ethiopian National Railway Network

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Background continued

• G) Railway Development Approach
• Two Phases of development
• 1st Phase/GTP (2010/11- 2014/15) about 2,395 km
• 2nd Phase (2015/16 2020/21) about 2,665 km
• Deploy multiple Lots in parallel
• National Railway Network Characteristics
• Standard Gauge (1,435 mm)
• Electric Traction
• High Capacity (22 - 25 Ton/axle)
• Moderate Speed (120- 160 km/hr for passenger and
  120 km/hr for freight)
• Concrete Sleeper (160cm x20.5cmx22cm)

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Development of A.A Djibouti continued
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Development of A.A Djibouti continued

• b) Consultation Bilateral (with Republic of
  Djibouti)
• Signed MoU on June 10, 2010 The Development and
  Operation of Standard Gauge Railway Line between
  Ethiopia and Djibouti
• Follow-up meetings and work visits by Ministers
• Establishment of technical working group
• Technical experts experience sharing
• Submission of draft Bilateral agreement on The
  Development and Operation of a Standard Gauge
  Railway Network by FDRE to the RoD

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Development of A.A Djibouti continued

• c) Consultation with EPC/Turnkey Contractors
• Construction contract for Addis Ababa Mieso
  Signed on October 25, 2011
• Construction contract for Mieso Dawanle (border
  of Ethiopia with Djibouti) signed December 16,
  2011.
• Construction Contract Project from Ethiopian
  border to the Port of Djibouti has signed

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Techno-Economic Feasibility Continued
3.3 Transport Demand Forecast - Volume
Cargo Type 09/10 Base yr 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20
Export 791 894 978 1262 1597 1824 2084 2221 2370 2535 2631
Import
Dry 5256 5529 5261 5704 6189 6721 7304 7944 8646 9416 9597
Fuel 2880 3148 3452 3790 4114 4471 4862 5293 5767 6344 6401
Total 8927 9571 9691 10756 11900 13016 14250 15458 16783 18295 18629
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Techno-Economic Feasibility Continued

• 3.3 Transport Demand Forecast - Volume

Cargo Type 09/10 Base yr 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28
Export 791 2920 3241 3598 3994 4433 4920 5462 6063
Import
Dry 5256 10653 11825 13125 14569 16172 17950 19925 22117
Fuel 2880 7106 7887 8754.7 9718 10787 11973 13290 14752
Total 8927 20678 22953 25478 28280 31391 34844 38677 42932
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Techno-Economic Feasibility Continued

• 3.4 Project Financing and Cost Estimate
• Financing
• 15 Equity and 85 loan
• Cost Estimate

Investment Costs (million USD Equivalent) Investment Costs (million USD Equivalent) Investment Costs (million USD Equivalent) Investment Costs (million USD Equivalent)
Cost Category Equity Financing Debt Financing Total (USD)
Railway Works 535.1 3,032.29 3,567.4
Telecom Supply 4.4 0.0 4.4
Power Supply 62.2 0.0 62.2
Right-of-way 29.5 0.0 29.5
ESIA 7.6 0.0 7.6
Rolling stock 0.0 366.2 366.2
Total 638.9 3,398.5 4,037.4
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5. Conclusion

• The project has great socio economic significance
  or the Peoples and Governments of Ethiopia and
  Djibouti
• The Corridor has sub-regional, regional and
  continental importance
• The Project is
• Socially Acceptable
• Technically Feasible
• Economically Viable
• Environment Friendly

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Thank You