Infrastructure
Government Steps In to Finish Kombolcha Railway as London Arbitration Nears Conclusion
The Reporter · 5 hours ago · Read the Full Story on The Reporter
AI SUMMARY
The Ethiopian government has taken over the restoration of the stalled Awash-Kombolcha-Hara Gebeya railway line using internal resources while legal arbitration with the former contractor nears its end.
- The Ethiopian Railways Corporation has taken over the restoration of the Awash–Kombolcha–Hara Gebeya railway line using its own workforce, machinery, and materials.
- State engineers have successfully defended against more than 70 percent of the claims brought by former contractor Yapı Merkezi.
- Remaining disputes regarding outstanding payments and machinery continue at the London Court of International Arbitration following an initial one-billion-dollar war damage claim by Yapı Merkezi.
- State workers have repaired approximately 70 kilometers of track and plan to initiate test runs soon.
- Phase One up to Kombolcha is targeted for completion within two years.
- The 392-kilometer project began construction in 2015 under a USD 1.7 billion contract backed by European and Turkish financial institutions, featuring 12 tunnels and 52 bridges.
- A full assessment of total restoration costs remains pending due to ongoing legal arbitration.
- A localization study presented at the 27th EACE Convention estimated that domestic firms can deliver 68.3 percent of the value across four major railway contracts worth USD 6.53 billion.
- Local companies are equipped for foundational tasks like earthworks and station construction, while complex systems such as signaling and electrification still require imported technology.
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