RailEnquiry

The Export and Import Bank of India (EXIM Bank) has provided a line of credit for the Ethiopian Railway Project to the tune of $300 million.The loan, which carries an interest rate of 1.75 percent, is for a 210 km rail line, 160 km of which will be in Northern Ethiopia, with a 50 km stretch to Djibouti. The project line is the initial part of a larger regional project to improve railway connections and advance economic growth in the East African nation, said Ahmed Shide Mehmad, Ethiopian Minister for Finance and development, ‘‘…the railway link to a port city will provide impetus to growth, particularly in the northern region of our country’’, he said.According to Hindu Business line, the scheme is the first line in the Ethiopian Railway sector. There are credit lines in the sugar and rural development sectors of the country as well. The line will be used for shipment but eventually made available for passengers.Chairman and Managing Director of Exim Bank T.C.A Ranganathan said the report for the project is being prepared by RITES (Rail India Technical and Economic Service) and will be finalized in two months.