The Ethiopian Railways Corporation (ERC) has called for Public-Private Partnership (PPP) to seize the opportunities in the country’s infrastructure development scheme.
The national railway operator, with has a mandate to develop modern railway infrastructure to ease both goods and passengers transportation and has challenged PPP to join on board to lighten the task at hand.
As it plans to expand the public services for the citizens to access better transport network, the state-owned enterprise acknowledges the importance of PPP’s contribution to such infrastructure investments. The country earlier this year, introduced a PPP law, being cognizant of its support in economic growth and improvement of public services.
Despite being among Africa’s fastest growing economy, the company’s CEO, Dr. Berhanu Beshah expressed pressing challenges that Ethiopia faces that can be solved by invoking PPPs. In addition to the hurdles of lack of capacity, he added: “We need to further strengthen our capacity in planning, implementation, and maintaining various projects as well as expanding existing projects, and building a new partnership to realize our ambitions.”
He went on to say that the creation of partnerships is important to achieve the country’s objectives guided by its vision in the infrastructure sector. The railway sector in the East African nation is one of the fastest growing industries that will gear up business opportunities with better transport and communication networks.
The corporation has recently completed a $4 billion Addis Ababa-Djibouti cross-border electrified standard gauge railway. The new cross-border project aims at improving the speed of cargo movement between the two nations. It is the first standard gauge electrified railroad on the continent. Railway infrastructure will contribute significantly to the regional economy.
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