By: Ethio negari

Italian Railway Company to Support Construction and Completion of Railway Projects in Ethiopia

The Italian railway company COIPA Italia S.P.A, has signed a Memorandum of Understanding (MoU) with the Ethiopian Railway Corporation (ERC), marking a renewed commitment to enhancing Ethiopia’s rail transport infrastructure.

According to the Ethiopian government, there is a strong commitment to completing the Awash-Kombolcha-Hara Gebeya railway line, a critical transport corridor whose construction was previously suspended due to the civil war in northern Ethiopia.

Speaking on behalf of the ERC, Kassahun Mulatu, Head of the Corporation’s Legal Services, confirmed the signing of the agreement with COIPA Italia.

He explained that the partnership includes both the construction of new railway lines and the expedited completion and commissioning of railway lines already under development.

Kassahun emphasized that this agreement is strategic in nature. In addition to construction, it includes plans to establish joint ventures, improve large-scale railway workshops, and enhance the overall efficiency and sustainability of Ethiopia’s railway system.

He stated that the focus will be on the resumption and completion of projects that were halted, particularly the Awash-Kombolcha-Hara Gebeya line.

He added that extensive efforts are underway to restart the suspended project, with the government taking proactive measures to identify existing challenges and ensure the swift operationalization of the railway.

Under the new agreement, there will also be knowledge and technical exchange to improve service delivery post-completion.

Furthermore, the agreement aims to better integrate railway infrastructure with industrial hubs and logistics centers, boosting economic connectivity and enhancing the role of rail transport in Ethiopia’s broader development strategy.

The Awash-Kombolcha-Hara Gebeya railway line, a key component of Ethiopia’s national railway development plan, was originally awarded to the Turkish construction firm Yapı Merkezi in 2015.

The project was designed to span 392 kilometers, linking central and northern Ethiopia to the port of Djibouti, Ethiopia’s primary trade gateway.

The railway was expected to significantly enhance trade and regional economic integration by providing a reliable and efficient transport route for goods and passengers.

However, the outbreak of civil conflict in northern Ethiopia—particularly in the Tigray, Amhara, and Afar regions—severely disrupted construction efforts.

Yapı Merkezi reported that the project, which was nearing completion, was halted and partially looted during the conflict.

The company later sought $1 billion in damages due to the disruption and destruction incurred.

With the signing of the new MoU between ERC and COIPA Italia, there is renewed optimism that this strategic railway corridor can be completed and brought into operation.

Once operational, it is expected to play a transformative role in Ethiopia’s transportation network and broader economic landscape.