Ethiopian Railways Corporation Signs Framework Agreement with Fiza Elixer Covering Kombolcha Workshop and Addis Ababa Light Rail

The framework gives ERC a partner for two assets that have waited for investment: the Kombolcha Workshop on the northern network and the Addis Ababa light rail, where ticketing, fleet size and systems have long limited the service. Moving maintenance and parts manufacturing into Ethiopia could reduce the corporation’s dependence on imported support and foreign currency.

• Ethiopian Railways Corporation has signed a Master Framework Agreement with Fiza Elixer Infrastructure Pvt. Ltd.
• The agreement covers development of the Kombolcha Workshop and the establishment of a train repair centre.
• Planned Addis Ababa light rail upgrades include electronic ticketing, additional trains and upgraded power, signalling and communications systems.
• The agreement also covers electric-vehicle charging stations, the import of electric buses and local production.
• Each project will be subject to profitability, technical and financial studies.
• Special purpose vehicles are to be established to implement the projects.

The Ethiopian Railways Corporation (ERC) has signed a Master Framework Agreement with Fiza Elixer Infrastructure Pvt. Ltd. under which the two parties intend to develop joint commercial projects in rail and electric transport, including development of the Kombolcha Workshop and upgrades to the Addis Ababa light rail system. No values have been disclosed, and each project will be subject to technical and financial studies before it proceeds.

According to ERC, the agreement is intended to combine the financial and technical capacity of the two organisations, develop the corporation’s assets and create new sources of revenue, while facilitating technology transfer and expanding business opportunities in the rail and electric transport sectors.

The focus areas named by ERC are the development of the Kombolcha Workshop, the establishment of a train repair centre, and the modernisation of the Addis Ababa light rail with an electronic ticketing system, additional trains and upgraded power, signalling and communications systems. The agreement also covers electric-vehicle charging stations, the import of electric buses and the strengthening of local production.

Seyoum Gezmu, ERC’s Head of Investment and Marketing Services, said profitability, technical and financial studies would be carried out for each project, and that special purpose vehicles would be established to implement them.

Eng. Sileshi Kassa, ERC’s Deputy Executive Officer for Railway Infrastructure, said the agreement would contribute to employment, technology transfer, domestic production and foreign exchange earnings. Muhammed Farugudin, Chairman and CEO of Fiza Elixer Infrastructure, said it would lay a foundation for raising finance, building capacity and combining the experience of the two organisations to expand development and commercial projects.