NAMA: Ethiopia's National Railway Network and Addis Ababa Light Rail Transit (LRT) NAMA

Title: Ethiopia's National Railway Network and Addis Ababa Light Rail Transit (LRT) NAMA
DescriptionOfMitigationAction: <br /> <p style="margin: 3.1pt 0.25pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Ethiopia&nbsp; &nbsp;&nbsp;has&nbsp;the&nbsp;ambition&nbsp;to&nbsp;develop&nbsp;its&nbsp;economy&nbsp;to&nbsp;make&nbsp;it&nbsp;&nbsp; &nbsp;more&nbsp;&nbsp; &nbsp;resilient&nbsp;&nbsp; &nbsp;to&nbsp; the&nbsp; impacts&nbsp; of&nbsp; climate&nbsp; change&nbsp; and&nbsp; pursue&nbsp; low&nbsp; carbon&nbsp;&nbsp; &nbsp;development.&nbsp;&nbsp; &nbsp;The&nbsp;Government&nbsp;&nbsp; &nbsp;of&nbsp;Ethiopia&nbsp;&nbsp; &nbsp;has&nbsp;adopted&nbsp;the&nbsp;Growth&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transformation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (GTP),&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; outlines&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; country&rsquo;s&nbsp;&nbsp; &nbsp;strategy&nbsp;&nbsp; &nbsp;&nbsp; to&nbsp;&nbsp; reach &nbsp;&nbsp;&nbsp; middle-­‐income&nbsp;&nbsp; &nbsp;&nbsp; status&nbsp;&nbsp; before&nbsp;&nbsp; 2025.&nbsp;&nbsp; At&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; same&nbsp;&nbsp; &nbsp;time,&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the &nbsp;&nbsp; Government&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; has&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issued&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Climate-­‐Resilient&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; Green&nbsp;&nbsp; &nbsp;Economy&nbsp;&nbsp; &nbsp;&nbsp; (CRGE)&nbsp;&nbsp; strategy&nbsp;&nbsp; in&nbsp;&nbsp; 2011,&nbsp;&nbsp; which&nbsp;&nbsp; lays&nbsp;&nbsp; down&nbsp;&nbsp; the&nbsp;&nbsp; country&rsquo;s&nbsp;&nbsp; &nbsp;plan<span style="letter-spacing: 0.6pt;">&nbsp;</span>for<span style="letter-spacing: 0.6pt;">&nbsp;</span>a&nbsp;&nbsp; <span style="letter-spacing: 0.6pt;">&nbsp;</span>carbon<span style="letter-spacing: 0.6pt;">&nbsp;</span>neutral,<span style="letter-spacing: 0.6pt;">&nbsp;</span>green<span style="letter-spacing: 0.6pt;">&nbsp;</span>economy<span style="letter-spacing: 0.6pt;">&nbsp;</span>by<span style="letter-spacing: 0.6pt;">&nbsp;</span>2025.<span style="letter-spacing: 0.6pt;">&nbsp;</span>Combining<span style="letter-spacing: 0.6pt;">&nbsp;</span>rapid&nbsp;&nbsp; &nbsp;economic&nbsp;&nbsp; &nbsp;&nbsp; growth&nbsp;&nbsp; while&nbsp;&nbsp; containing&nbsp;&nbsp; the&nbsp;&nbsp; environmental&nbsp;&nbsp; impact&nbsp;&nbsp; &nbsp;&nbsp; is&nbsp;&nbsp; a&nbsp;&nbsp; &nbsp;challenge&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp; &nbsp;&nbsp; Ethiopia&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; aims&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; realise&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; through&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; international&nbsp;&nbsp; &nbsp;partnerships,&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; targeting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; both&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; financial&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cooperation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; capacity&nbsp;&nbsp; &nbsp;buildin<span style="letter-spacing: -0.05pt;">g</span>.&nbsp;&nbsp; &nbsp;&nbsp;</span></p> <p style="margin: 3.35pt 336.7pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 0.25pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">If&nbsp;&nbsp; Ethiopia&nbsp;&nbsp; &nbsp;were&nbsp;&nbsp; to&nbsp;&nbsp; pursue&nbsp;&nbsp; a &nbsp;conventional&nbsp;&nbsp; economic&nbsp;&nbsp; development&nbsp;&nbsp; &nbsp;path&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; achieve&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp; ambitious&nbsp;&nbsp;&nbsp; development&nbsp;&nbsp;&nbsp; targets,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp; &nbsp;negative&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; environmental&nbsp;&nbsp;&nbsp;&nbsp; impacts&nbsp;&nbsp;&nbsp;&nbsp; would&nbsp;&nbsp;&nbsp;&nbsp; follow&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; fatal&nbsp;&nbsp;&nbsp;&nbsp; patterns&nbsp;&nbsp; &nbsp;observed<span style="letter-spacing: 0.7pt;">&nbsp;</span>all<span style="letter-spacing: 0.7pt;">&nbsp;</span>around<span style="letter-spacing: 0.7pt;">&nbsp;</span>the<span style="letter-spacing: 0.7pt;">&nbsp;</span>globe.<span style="letter-spacing: 0.7pt;">&nbsp;</span>Under<span style="letter-spacing: 0.7pt;">&nbsp;</span>current&nbsp;&nbsp; <span style="letter-spacing: 0.7pt;">&nbsp;</span>practices,<span style="letter-spacing: 0.7pt;">&nbsp;</span>greenhouse&nbsp;&nbsp; &nbsp;gas&nbsp;&nbsp; &nbsp;(GHG)&nbsp;emissions&nbsp;would&nbsp;more&nbsp;than&nbsp;double&nbsp;from&nbsp;150&nbsp;Mt&nbsp;&nbsp; &nbsp;CO2e&nbsp;in&nbsp; 2010 to 400 Mt CO2e in 2030.<br /> </span></p> <p style="margin: 0in 188.2pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 336.7pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0.05pt 0.25pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">The<span style="letter-spacing: 0.1pt;">&nbsp;</span>CRGE<span style="letter-spacing: 0.1pt;">&nbsp;</span>strategy<span style="letter-spacing: 0.1pt;">&nbsp;</span>describes<span style="letter-spacing: 0.1pt;">&nbsp;</span>a&nbsp;&nbsp; <span style="letter-spacing: 0.1pt;">&nbsp;</span>number<span style="letter-spacing: 0.1pt;">&nbsp;</span>of<span style="letter-spacing: 0.1pt;">&nbsp;</span>&lsquo;abatement&nbsp;&nbsp; <span style="letter-spacing: 0.1pt;">&nbsp;</span>levers&rsquo;<span style="letter-spacing: 0.1pt;">&nbsp;</span>to<span style="letter-spacing: 0.1pt;">&nbsp;</span>drive&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;transition&nbsp;to&nbsp;a &nbsp;green&nbsp;economy.&nbsp;Transport&nbsp;&nbsp; &nbsp;has&nbsp;been&nbsp;identified&nbsp;as&nbsp;&nbsp; &nbsp;a&nbsp;&nbsp; &nbsp;key&nbsp; sector&nbsp; with&nbsp; a &nbsp;significant&nbsp;&nbsp; &nbsp;GHG&nbsp; abatement&nbsp;&nbsp; &nbsp;potential&nbsp; and&nbsp; vast&nbsp;&nbsp; &nbsp;sustainable&nbsp;&nbsp; &nbsp;development&nbsp;&nbsp; &nbsp;benefits.&nbsp;&nbsp; &nbsp; &nbsp;</span></p> <p style="margin: 3.35pt 336.7pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0.15pt 0in 0.0001pt 5.25pt; line-height: 97%; text-align: justify;"><span style="font-size: 12pt; line-height: 97%; font-family: Calibri,sans-serif;">More&nbsp;specifically,&nbsp;construction&nbsp;of&nbsp;the&nbsp;Light&nbsp;&nbsp; &nbsp;Rail&nbsp;Transit&nbsp;&nbsp; &nbsp;(LRT)&nbsp;system&nbsp;&nbsp; &nbsp;in<span style="letter-spacing: 0.05pt;">&nbsp;</span>Addis<span style="letter-spacing: 0.05pt;">&nbsp;</span>Ababa&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>and<span style="letter-spacing: 0.05pt;">&nbsp;</span>a&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>modal<span style="letter-spacing: 0.05pt;">&nbsp;</span>shift&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>of<span style="letter-spacing: 0.05pt;">&nbsp;</span>freight&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>transport&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>from<span style="letter-spacing: 0.05pt;">&nbsp;</span>road<span style="letter-spacing: 0.05pt;">&nbsp;</span>to<span style="letter-spacing: 0.05pt;">&nbsp;</span>an&nbsp;&nbsp; &nbsp;electric&nbsp;&nbsp; &nbsp;rail&nbsp;network&nbsp;powered&nbsp;through&nbsp;renewable&nbsp;energy&nbsp;(electricity&nbsp;&nbsp; &nbsp;in&nbsp;&nbsp; &nbsp;Ethiopia&nbsp;&nbsp; &nbsp;is&nbsp;almost&nbsp;&nbsp; &nbsp;entirely&nbsp;renewable,&nbsp;generated&nbsp;by&nbsp;hydropower,&nbsp;&nbsp; &nbsp;geothermal&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; wind&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; power)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; listed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; most&nbsp;&nbsp; &nbsp;&nbsp; beneficial&nbsp;&nbsp; &nbsp;interventions<span style="letter-spacing: 0.1pt;">.</span></span><span style="font-size: 8pt; line-height: 97%; position: relative; top: -5.5pt; letter-spacing: -0.05pt; font-family: Calibri,sans-serif;">1</span><span style="font-size: 8pt; line-height: 97%; position: relative; top: -5.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span><span style="font-size: 12pt; line-height: 97%; font-family: Calibri,sans-serif;">&nbsp;</span><span style="font-size: 12pt; line-height: 97%; font-family: Calibri,sans-serif;">A&nbsp;modal&nbsp;shift&nbsp;&nbsp; &nbsp;from&nbsp;road&nbsp;to&nbsp;rail&nbsp;will&nbsp;be&nbsp;a &nbsp;key&nbsp;pillar&nbsp;to&nbsp;&nbsp; &nbsp;transform&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ethiopia&rsquo;s&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; economy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a &nbsp;&nbsp; middle&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; income&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; country,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp; &nbsp;affordable<span style="letter-spacing: 0.2pt;">&nbsp;</span>integration<span style="letter-spacing: 0.2pt;">&nbsp;</span>to<span style="letter-spacing: 0.2pt;">&nbsp;</span>its<span style="letter-spacing: 0.2pt;">&nbsp;</span>neighbouring<span style="letter-spacing: 0.2pt;">&nbsp;</span>countries<span style="letter-spacing: 0.2pt;">&nbsp;</span>will<span style="letter-spacing: 0.2pt;">&nbsp;</span>be<span style="letter-spacing: 0.2pt;">&nbsp;</span>achieved.&nbsp;<br /> <br /> <span style="font-size: 12pt; font-family: Calibri,sans-serif;">This&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>is <span style="letter-spacing: 0.1pt;">&nbsp;</span></span><span style="font-size: 12pt; font-family: Calibri,sans-serif;">key<span style="letter-spacing: 0.1pt;">&nbsp;</span>for<span style="letter-spacing: 0.1pt;">&nbsp;</span>a&nbsp;&nbsp; <span style="letter-spacing: 0.1pt;">&nbsp;</span>landlocked<span style="letter-spacing: 0.1pt;">&nbsp;</span>country<span style="letter-spacing: 0.1pt;">&nbsp;</span>like<span style="letter-spacing: 0.1pt;">&nbsp;</span>Ethiopia&nbsp;&nbsp; <span style="letter-spacing: 0.1pt;">&nbsp;</span>to<span style="letter-spacing: 0.1pt;">&nbsp;</span>achieve<span style="letter-spacing: 0.1pt;">&nbsp;</span>its<span style="letter-spacing: 0.1pt;">&nbsp;</span>export&nbsp;&nbsp; &nbsp;<span style="font-size: 12pt; font-family: Calibri,sans-serif;">targets&nbsp;and&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;access&nbsp;&nbsp; &nbsp;lower&nbsp;&nbsp; &nbsp;cost&nbsp;&nbsp; &nbsp;imports</span>.<br /> <br /> <br /> </span></span><strong><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; Baseline&nbsp;scenario&nbsp;&nbsp;<br /> &nbsp;<br /> </span></strong> <span style="line-height: 97%; font-size: 12pt; font-family: Calibri,sans-serif;"> </span></p> <p style="margin: 0in 4.2pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">While&nbsp;emissions&nbsp;from&nbsp;the&nbsp;transport&nbsp;&nbsp; &nbsp;sector&nbsp;currently&nbsp;only&nbsp;contribute&nbsp;</span></p> <p style="margin: 0in 3.8pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">3%<span style="letter-spacing: 0.5pt;">&nbsp;</span>to<span style="letter-spacing: 0.5pt;">&nbsp;</span>Ethiopia's<span style="letter-spacing: 0.5pt;">&nbsp;</span>GHG<span style="letter-spacing: 0.5pt;">&nbsp;</span>emissions,<span style="letter-spacing: 0.5pt;">&nbsp;</span>they<span style="letter-spacing: 0.5pt;">&nbsp;</span>are<span style="letter-spacing: 0.5pt;">&nbsp;</span>expected<span style="letter-spacing: 0.5pt;">&nbsp;</span>to<span style="letter-spacing: 0.5pt;">&nbsp;</span>increase<span style="letter-spacing: 0.5pt;">&nbsp;</span>by<span style="letter-spacing: 0.5pt;">&nbsp;</span>7-­‐ fold&nbsp;from&nbsp;around&nbsp;5&nbsp;Mt&nbsp;&nbsp; &nbsp;CO2e&nbsp;in&nbsp;2010&nbsp;to&nbsp;40&nbsp;Mt &nbsp;CO2e&nbsp;in&nbsp;2030&nbsp;when&nbsp;&nbsp; &nbsp;following&nbsp;&nbsp; &nbsp;&nbsp; a&nbsp;&nbsp; &nbsp;BAU&nbsp;&nbsp; scenario.&nbsp;&nbsp; Currently&nbsp;&nbsp; ~75%&nbsp;&nbsp; of&nbsp;&nbsp; the&nbsp;&nbsp; emissions&nbsp;&nbsp; come&nbsp;&nbsp; &nbsp;from&nbsp;&nbsp; &nbsp; road&nbsp; transport,&nbsp; particularly&nbsp; freight&nbsp;&nbsp; &nbsp;and&nbsp; construction&nbsp; vehicles,&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;to&nbsp;a&nbsp;&nbsp; &nbsp;lesser&nbsp;extent&nbsp;&nbsp; &nbsp;private&nbsp;passenger&nbsp;vehicles.&nbsp;Air&nbsp;transport&nbsp;&nbsp; &nbsp;also&nbsp;&nbsp; &nbsp;contributes&nbsp;&nbsp; &nbsp;a&nbsp;&nbsp; &nbsp;significant&nbsp;&nbsp; &nbsp;share&nbsp;&nbsp; &nbsp;(23%&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;transport-­‐related&nbsp;&nbsp; &nbsp;emissions).&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;</span> </p> <p style="margin: 0in 340.25pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 3.8pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">An&nbsp; annual&nbsp; growth&nbsp; rate&nbsp; ranging&nbsp; from&nbsp; 12.4%-­‐&nbsp;&nbsp; &nbsp; 13.7%&nbsp; in&nbsp; tonne-­‐km&nbsp;&nbsp; &nbsp;of&nbsp;</span></p> <p style="margin: 0.2pt 4.2pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">freight&nbsp;&nbsp; &nbsp;transported&nbsp;is&nbsp;estimated&nbsp;to&nbsp;create&nbsp;a &nbsp;baseline&nbsp;scenario&nbsp;up&nbsp;to&nbsp;</span></p> <p style="margin: 0in 3.8pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">2030.&nbsp;&nbsp;&nbsp; This&nbsp;&nbsp;&nbsp; estimate&nbsp;&nbsp;&nbsp; was&nbsp;&nbsp;&nbsp; calculated&nbsp;&nbsp;&nbsp; using&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; elasticity&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; diesel&nbsp;&nbsp; &nbsp;imports&nbsp;&nbsp; &nbsp;to&nbsp;real&nbsp;GDP&nbsp;based&nbsp;on&nbsp;National&nbsp;Bank&nbsp;of&nbsp;Ethiopia&rsquo;s&nbsp;statistics&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;GDP&nbsp;&nbsp; &nbsp;growth&nbsp;&nbsp; &nbsp;rates&nbsp;&nbsp; &nbsp;as&nbsp;&nbsp; &nbsp;projected&nbsp;&nbsp; &nbsp;by&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;GTP&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;by&nbsp;&nbsp; &nbsp;EDRI/MOFED.&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;</span> </p> <p style="margin: 0in 340.25pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 3.8pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Passenger&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; road&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transport&nbsp;&nbsp; &nbsp;&nbsp; emissions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; driven&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; old&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp; &nbsp;inefficient&nbsp;&nbsp; &nbsp;fleet&nbsp;&nbsp; &nbsp;composed&nbsp;of&nbsp;240,000&nbsp;vehicles,&nbsp;with&nbsp;an&nbsp;average&nbsp;age&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 15&nbsp;&nbsp;&nbsp;&nbsp; years.&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; passenger&nbsp;&nbsp;&nbsp;&nbsp; fleet&nbsp;&nbsp; &nbsp;&nbsp; consumed&nbsp;&nbsp;&nbsp;&nbsp; 0.6&nbsp;&nbsp;&nbsp;&nbsp; billion&nbsp;&nbsp;&nbsp;&nbsp; litres&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; &nbsp;imported&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; fossil&nbsp;&nbsp;&nbsp; fuel&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; 2010.&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; increase&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; road&nbsp;&nbsp;&nbsp; passenger-­‐km&nbsp;&nbsp; &nbsp;travelled&nbsp;&nbsp; &nbsp;was&nbsp;forecast&nbsp;&nbsp; &nbsp;at&nbsp;&nbsp; &nbsp;an&nbsp;annual&nbsp;growth&nbsp;rate&nbsp;of&nbsp;8.3%-­‐9.1%.&nbsp;&nbsp; &nbsp;This&nbsp;&nbsp; &nbsp;estimate&nbsp;&nbsp; &nbsp;was&nbsp;calculated&nbsp;using&nbsp;the&nbsp;elasticity&nbsp;of&nbsp;passenger-­‐km&nbsp;&nbsp; &nbsp;to&nbsp;real&nbsp;&nbsp; &nbsp;GDP&nbsp;&nbsp; &nbsp;based&nbsp;on&nbsp;the&nbsp;Ministry&nbsp;of&nbsp;Transport&rsquo;s&nbsp;statistics&nbsp;for&nbsp;the&nbsp;past&nbsp;&nbsp; &nbsp;ten&nbsp;&nbsp; &nbsp;years&nbsp;&nbsp; &nbsp;and&nbsp;GDP&nbsp;growth&nbsp;rates&nbsp;as&nbsp;projected&nbsp;by&nbsp;the&nbsp;GTP&nbsp;and&nbsp;by&nbsp;EDRI/&nbsp;&nbsp; &nbsp;MOFED.&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;</span> </p> <p style="margin: 0in 340.25pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 262.7pt 0.0001pt 100.25pt; text-align: justify;"><strong><span style="font-size: 12pt; font-family: Calibri,sans-serif;">NAMA&nbsp;scenario&nbsp;&nbsp; &nbsp;</span></strong> </p> <p style="margin: 0in 97.7pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Avoidance&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; emission&nbsp;&nbsp;&nbsp;&nbsp; can&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; achieved&nbsp;&nbsp;&nbsp;&nbsp; through&nbsp;&nbsp;&nbsp;&nbsp; modal&nbsp;&nbsp;&nbsp;&nbsp; shift&nbsp;&nbsp; &nbsp;&nbsp; of </span><span style="font-size: 12pt; font-family: Calibri,sans-serif;">freight&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;passenger&nbsp;&nbsp; &nbsp;transport&nbsp;&nbsp; &nbsp;from&nbsp;&nbsp; &nbsp;road&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;rail.&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 340.25pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 4.2pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">The&nbsp; Ethiopian&nbsp; Railways&nbsp; Corporation&nbsp; (ERC)&nbsp; was&nbsp; therefore&nbsp; set&nbsp;&nbsp; &nbsp;up&nbsp; in&nbsp;</span></p> <p style="margin: 0in 3.8pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">2007&nbsp;&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; mandate&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; construct&nbsp;&nbsp; &nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp; infrastructure&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp; &nbsp;provide&nbsp;&nbsp; &nbsp;&nbsp; passenger&nbsp;&nbsp; and&nbsp;&nbsp; freight&nbsp;&nbsp; &nbsp; trail&nbsp;&nbsp; transport&nbsp;&nbsp; &nbsp; services&nbsp;&nbsp; in&nbsp;&nbsp; Ethiopia.&nbsp;&nbsp; &nbsp;The&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; envisaged&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; infrastructure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; consists&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; two&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; project&nbsp;&nbsp; &nbsp;components,<span style="letter-spacing: 0.05pt;">&nbsp;</span>namely<span style="letter-spacing: 0.05pt;">&nbsp;</span>the<span style="letter-spacing: 0.05pt;">&nbsp;</span>Addis<span style="letter-spacing: 0.05pt;">&nbsp;</span>Ababa&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>Light&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>Rail<span style="letter-spacing: 0.05pt;">&nbsp;</span>Transit&nbsp;&nbsp; <span style="letter-spacing: 0.05pt;">&nbsp;</span>(LRT)<span style="letter-spacing: 0.05pt;">&nbsp;</span>and<span style="letter-spacing: 0.05pt;">&nbsp;</span>the&nbsp;&nbsp; &nbsp;National&nbsp;&nbsp; &nbsp;Railway&nbsp;&nbsp; &nbsp;Network&nbsp;&nbsp; &nbsp;(NRN)&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif; color: #3f403f;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 340.25pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 3.8pt 0.0001pt 100.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">The&nbsp;first&nbsp;&nbsp; &nbsp;phase&nbsp;of&nbsp;the&nbsp;LRT&nbsp;project&nbsp;&nbsp; &nbsp;is&nbsp;planned&nbsp;to&nbsp;be&nbsp;35&nbsp;km&nbsp;long,&nbsp;its&nbsp;&nbsp; &nbsp;construction&nbsp;&nbsp; &nbsp; started&nbsp; in&nbsp; 2012&nbsp; and&nbsp; is&nbsp; planned&nbsp; to&nbsp; be&nbsp; finalized&nbsp; in&nbsp; the&nbsp;&nbsp; &nbsp;beginning&nbsp;&nbsp; &nbsp;of&nbsp;the&nbsp;year&nbsp;2015.&nbsp;The&nbsp;second&nbsp;phase&nbsp;of&nbsp;the&nbsp;LRT&nbsp;will&nbsp;be&nbsp;an&nbsp;&nbsp; &nbsp;extension&nbsp;&nbsp; &nbsp;of&nbsp;the&nbsp;first&nbsp;&nbsp; &nbsp;line&nbsp;of&nbsp;~ &nbsp;54.91&nbsp;km,&nbsp;leading&nbsp;to&nbsp;a &nbsp;total&nbsp;length&nbsp;of&nbsp;</span></p> <p style="margin: 0in 305.1pt 0.0001pt 100.25pt; line-height: 14pt; text-align: justify;"><span style="font-size: 12pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif;">89&nbsp;&nbsp; &nbsp;km.</span><span style="font-size: 12pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif;">&nbsp;</span><span style="font-size: 9.5pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif; color: #3f403f;">&nbsp;</span> </p> <br /> <br /> <p style="margin: 0.05pt 0.25pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">The<span style="letter-spacing: 0.45pt;">&nbsp;</span>NRN,<span style="letter-spacing: 0.45pt;">&nbsp;</span>on<span style="letter-spacing: 0.45pt;">&nbsp;</span>its<span style="letter-spacing: 0.45pt;">&nbsp;</span>part,<span style="letter-spacing: 0.45pt;">&nbsp;</span>consists<span style="letter-spacing: 0.45pt;">&nbsp;</span>of<span style="letter-spacing: 0.45pt;">&nbsp;</span>eight&nbsp;&nbsp; <span style="letter-spacing: 0.45pt;">&nbsp;</span>corridors<span style="letter-spacing: 0.45pt;">&nbsp;</span>of<span style="letter-spacing: 0.45pt;">&nbsp;</span>varying<span style="letter-spacing: 0.45pt;">&nbsp;</span>lengths<span style="letter-spacing: 0.45pt;">&nbsp;</span>in&nbsp;&nbsp; &nbsp;diversified&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; strategic&nbsp;&nbsp;&nbsp;&nbsp; routes&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp; &nbsp; will&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; realised&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; two&nbsp;&nbsp;&nbsp;&nbsp; phases,&nbsp;&nbsp; &nbsp;covering&nbsp;&nbsp; &nbsp;over&nbsp;&nbsp; &nbsp;5,000&nbsp;&nbsp; &nbsp;km&nbsp;&nbsp; &nbsp;in&nbsp;&nbsp; &nbsp;distance.</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 336.7pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 0.25pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route&nbsp;1:&nbsp;&nbsp; &nbsp;Addis&nbsp;&nbsp; &nbsp;Ababa-­‐Modjo-­‐Awash-­‐Dire&nbsp;&nbsp; &nbsp;Dawa-­‐Dewanl&nbsp;&nbsp; &nbsp;(656&nbsp;&nbsp; &nbsp;km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;<br /> </span><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route 2:&nbsp; Modjo-­‐Shashemene-­‐Arbaminch-­‐Konso-­‐Moyale&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Including&nbsp;&nbsp; &nbsp;Shashemene-­‐Hawasa&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;Konso-­‐Weyto&nbsp;&nbsp; &nbsp;(905&nbsp;&nbsp; &nbsp;km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 0.25pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route&nbsp;3:&nbsp;Addis&nbsp;Ababa-­‐Ijaji-­‐Jimma-­‐Guraferda-­‐Dima&nbsp;&nbsp; &nbsp;including&nbsp;Jimma-­‐ Bedele&nbsp;(direct&nbsp;&nbsp; &nbsp;to&nbsp;Boma&nbsp;&nbsp; &nbsp;with&nbsp;further&nbsp;extension&nbsp;to&nbsp;south&nbsp;Sudan)&nbsp;(740&nbsp;&nbsp; &nbsp;km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 100.05pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route&nbsp;4:&nbsp;&nbsp; &nbsp; &nbsp;Ijaji-­‐Nekeme<span style="letter-spacing: 0.05pt;">t</span>-­‐Assosa-­‐Kumruk&nbsp;&nbsp; &nbsp;(460&nbsp;&nbsp; &nbsp;km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;</span> </p> <p style="margin: 0in 88.3pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route&nbsp;5:&nbsp;&nbsp; &nbsp;Awash-­‐Kombolcha-­‐Mekele-­‐Shire&nbsp;&nbsp; &nbsp;(757&nbsp;&nbsp; &nbsp;km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0.2pt 0.25pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route&nbsp;&nbsp;&nbsp; 6:&nbsp;&nbsp;&nbsp; Fenoteselam-­‐Bahirdar-­‐Wereta-­‐Weldia-­‐Semera-­‐Elidar&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; (734 km)</span></p> <p style="margin: 0in 318.55pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"></span> </p> <p style="margin: 0in 130.45pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route&nbsp;7:Wereta-­‐Azezo-­‐metema&nbsp;&nbsp; &nbsp;(244&nbsp;&nbsp; &nbsp;km),&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 136.55pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route&nbsp;8:&nbsp;&nbsp; &nbsp;Adama-­‐indeto-­‐Gasera&nbsp;&nbsp; &nbsp;(248&nbsp;&nbsp; &nbsp;km).&nbsp;&nbsp; &nbsp;</span></p> <p style="margin: 0in 336.7pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <p style="margin: 0in 0.25pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">The<span style="letter-spacing: 0.4pt;">&nbsp;</span>initial<span style="letter-spacing: 0.4pt;">&nbsp;</span>financing<span style="letter-spacing: 0.4pt;">&nbsp;</span>of<span style="letter-spacing: 0.4pt;">&nbsp;</span>the<span style="letter-spacing: 0.4pt;">&nbsp;</span>three<span style="letter-spacing: 0.4pt;">&nbsp;</span>railway<span style="letter-spacing: 0.4pt;">&nbsp;</span>routes<span style="letter-spacing: 0.4pt;">&nbsp;</span>and<span style="letter-spacing: 0.4pt;">&nbsp;</span>the<span style="letter-spacing: 0.4pt;">&nbsp;</span>Addis<span style="letter-spacing: 0.4pt;">&nbsp;</span>Ababa&nbsp;&nbsp; &nbsp;LRT&nbsp;&nbsp; &nbsp;has&nbsp;been&nbsp;successfully&nbsp;secured.&nbsp;The&nbsp;operation&nbsp;of&nbsp;the&nbsp;routes&nbsp;will&nbsp;&nbsp; &nbsp;however&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; see&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; exploitation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shortfall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; due&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; debt&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; financing&nbsp;&nbsp; &nbsp;repayments.&nbsp;&nbsp; &nbsp;</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;</span> </p> <p style="margin: 0in 336.7pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span> </p> <span style="font-size: 12pt; font-family: Calibri,sans-serif;">For&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; already&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; financed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; route,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; large&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; scale&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; climate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; finance&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; &nbsp;targeted&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; re-­‐finance&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; while&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp; lines,&nbsp;&nbsp;&nbsp;&nbsp; climate&nbsp;&nbsp; &nbsp;finance&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; envisioned&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; incorporated&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; initial&nbsp;&nbsp;&nbsp;&nbsp; financing&nbsp;&nbsp; &nbsp;model.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; absence&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; large-­‐scale&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; climate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; finance&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; targeting&nbsp;&nbsp; &nbsp;infrastructure&nbsp;&nbsp; &nbsp;financing,&nbsp;ERC&nbsp;focuses&nbsp;on&nbsp;utilizing&nbsp;climate&nbsp;finance&nbsp;to&nbsp;&nbsp; &nbsp;finance&nbsp;&nbsp; &nbsp;activities&nbsp;&nbsp; &nbsp;supporting&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;sustainable&nbsp;&nbsp; &nbsp;operation&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;its&nbsp;&nbsp; &nbsp;railway.</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;">&nbsp;&nbsp; &nbsp;</span><br /> <br /> &nbsp; &nbsp;<br />
SectorNR: Transport and its Infrastructure
TechnologyNR: Railway
TypeOfActionNR: National/Sectoral policy or program; Project: Investment in machinery; Project: Investment in infrastructure
EntityName: Ethiopian Railway Corporation (ERC)
EntityName1:
EntityName2:
EntityAddress1: P.O.Box 27558/1000 Addis Ababa, Ethiopia||
EntityAddress2: ||
EntityAddress3: ||
EntityContactPerson1: Mr Shewangizaw Kifle ||
EntityContactPerson2: ||
EntityContactPerson3: ||
EntityContactPerson1Alternate:
EntityContactPerson2Alternate:
EntityContactPerson3Alternate:
EntityPhone1: 00251 911 226 816 or 00251 114 70-­‐21-­‐90 ||
EntityPhone2: ||
EntityPhone3: ||
EntityPhone1Alternate:
EntityPhone2Alternate:
EntityPhone3Alternate:
EntityEmail1: kidusshk@gmail.com||
EntityEmail2: ||
EntityEmail3: ||
EntityEmail1Alternate:
EntityEmail2Alternate:
EntityEmail3Alternate:
YearsForCompletion: 9
StartYearOfImplementation: 2011
UsedCurrency: USD
EstimatedFullCostOfPreparation: 0
EstimatedFullCostOfImplementation:
EstimatedIncrementalCostOfImplementation:
EmissionReductionsAmount: 9
EmissionReductionsUnit: MtCO2e/yr
EmissionReductionsComments: Boundary and scope: The emission reduction boundary covers only direct CO2 emissions resulting from road transport of passengers and freight within Ethiopia. Baseline and NAMA scenario: The rail will be purely powered by electric energy, which in Ethiopia is almost entirely based on renewable energy (hydro power). Thus, the shift from road to rail will result in 0 project emissions. Road cargo was assumed to be transported by vehicles with the following 2010 fuel efficiencies: – 5‐19 quintals: 40 litres per 100 tonne-­‐km – 20‐34 quintals: 8.3 litres per 100 tonne-­‐km – 35‐69 quintals: 6 litres per 100 tonne-­‐km – 70+ quintals: 5.7 litres per 100 tonne-­‐km These rates of fuel efficiency were assumed to improve by 3.3% between 2010 and 2030 due to gradual improvement of the freight vehicle stock through imports. An annual growth rate ranging from 12.4%-­‐ 13.7% in tonne-­‐km of freight transported is estimated to create a baseline scenario up to 2030. This estimate was calculated using the elasticity of diesel imports to real GDP based on National Bank of Ethiopia’s statistics and GDP growth rates as projected by the GTP and by EDRI/MOFED. Passenger road transport emissions are driven by an old and inefficient fleet composed of 240,000 vehicles, with an average age of 15 years. The passenger fleet consumed 0.6 billion litres of imported fossil fuel in 2010. The increase in road passenger-­‐km travelled was forecast at an annual growth rate of 8.3%-­‐9.1%. This estimate was calculated using the elasticity of passenger-­‐km to real GDP based on the Ministry of Transport’s statistics for the past ten years and GDP growth rates as projected by the GTP and by EDRI/ MOFED. The electric rail network was assumed to transport 50% of dry and liquid cargo by 2030.
OtherIndicatorsComments: -
OtherRelevantInformation: <br /> <p style="margin: 0.05pt 1.2pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Shifting&nbsp;transport&nbsp;&nbsp; &nbsp;from&nbsp;&nbsp; &nbsp;road&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;rail&nbsp;&nbsp; &nbsp;would&nbsp;&nbsp; &nbsp;not&nbsp;&nbsp; &nbsp;only&nbsp;&nbsp; &nbsp;decrease&nbsp;&nbsp; &nbsp;transport&nbsp;&nbsp; &nbsp;costs&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;improve&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;trade&nbsp;&nbsp; &nbsp;balance&nbsp;&nbsp; &nbsp;through&nbsp;&nbsp; &nbsp;reduced&nbsp;&nbsp; &nbsp;import&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;fossil&nbsp;&nbsp; &nbsp;fuels&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;reduced&nbsp;&nbsp; &nbsp;road&nbsp;&nbsp; &nbsp;maintenance&nbsp;&nbsp; &nbsp;(economic&nbsp;&nbsp; &nbsp;benefits),&nbsp;but&nbsp;&nbsp; &nbsp;would&nbsp;&nbsp; &nbsp;also&nbsp;&nbsp; &nbsp;lower&nbsp;&nbsp; &nbsp;congestion,&nbsp;&nbsp; &nbsp;air&nbsp;&nbsp; &nbsp;pollution&nbsp;&nbsp; &nbsp;(NOx),&nbsp;&nbsp; &nbsp;noise&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;vibration&nbsp;&nbsp; &nbsp;pollution,&nbsp;&nbsp; &nbsp;traffic&nbsp;&nbsp; &nbsp;accidents&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;will&nbsp;&nbsp; &nbsp;increase&nbsp;&nbsp; &nbsp;employment,&nbsp;&nbsp; &nbsp;social&nbsp;&nbsp; &nbsp;equity&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;tax&nbsp;&nbsp; &nbsp;revenues.&nbsp;&nbsp; &nbsp;A&nbsp;&nbsp; &nbsp;major&nbsp;&nbsp; &nbsp;macro-­‐ economic&nbsp;&nbsp; &nbsp;benefit&nbsp;&nbsp; &nbsp;is&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;enhanced&nbsp;&nbsp; &nbsp;integration&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;Ethiopia&nbsp;&nbsp; &nbsp;with&nbsp;&nbsp; &nbsp;its E<span style="font-size: 12pt; font-family: Calibri,sans-serif;">ast&nbsp;&nbsp; &nbsp;African&nbsp;&nbsp; &nbsp;neighbours&nbsp;&nbsp; &nbsp;as&nbsp;&nbsp; &nbsp;well&nbsp;&nbsp; &nbsp;as&nbsp;&nbsp; &nbsp;enhanced&nbsp;&nbsp; &nbsp;access&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;sea&nbsp;&nbsp; &nbsp;ports.&nbsp;&nbsp;</span><br /> </span></p> <span style="font-size: 12pt; font-family: Calibri,sans-serif;"></span>
RelevantNationalPolicies: <br /> <p style="margin: 0.05pt 4.9pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Ethiopia&nbsp;&nbsp; &nbsp;has&nbsp;&nbsp; &nbsp;taken&nbsp;&nbsp; &nbsp;on&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;ambition&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;capitalise&nbsp;&nbsp; &nbsp;on&nbsp;&nbsp; &nbsp;its&nbsp;&nbsp; &nbsp;rapid&nbsp;&nbsp; &nbsp;economic&nbsp;&nbsp; &nbsp;growth&nbsp;&nbsp; &nbsp;by&nbsp;&nbsp; &nbsp;investing&nbsp;&nbsp; &nbsp;in&nbsp;&nbsp; &nbsp;an&nbsp;&nbsp; &nbsp;economy&nbsp;&nbsp; &nbsp;that&nbsp;&nbsp; &nbsp;is&nbsp;&nbsp; &nbsp;more&nbsp;&nbsp; &nbsp;resilient&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;impacts&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;climate&nbsp;&nbsp; &nbsp;change&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;pursue&nbsp;&nbsp; &nbsp;low&nbsp;&nbsp; &nbsp;carbon&nbsp;&nbsp; &nbsp;development.&nbsp;&nbsp; &nbsp;The&nbsp;&nbsp; &nbsp;Government&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;Ethiopia&nbsp;&nbsp; &nbsp;has&nbsp;&nbsp; &nbsp;adopted&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;<strong>Growth<span>&nbsp;&nbsp; &nbsp;</span><span>and&nbsp;&nbsp; </span><span>&nbsp;Transformation <span style="letter-spacing: 0.05pt;">&nbsp;</span></span>P<span>lan&nbsp;&nbsp; &nbsp;</span>(GT<span style="letter-spacing: -0.05pt;">P</span></strong>),&nbsp;&nbsp; &nbsp;which&nbsp;&nbsp; &nbsp;outlines&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;country&rsquo;s&nbsp;&nbsp; &nbsp;strategy&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;reach&nbsp;&nbsp; &nbsp;middle-­‐income&nbsp;&nbsp; &nbsp;status&nbsp;&nbsp; &nbsp;before&nbsp;&nbsp; &nbsp;2025.&nbsp;&nbsp; &nbsp;At&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;same&nbsp;&nbsp; &nbsp;time,&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;Government&nbsp;&nbsp; &nbsp;has&nbsp;&nbsp; &nbsp;issued&nbsp;&nbsp; &nbsp;the<strong><span>&nbsp;&nbsp; &nbsp;</span>Climate<span>-­‐</span>Resilient<span>&nbsp;&nbsp; &nbsp;</span>Green<span>&nbsp;&nbsp; &nbsp;</span>Economy<span>&nbsp;&nbsp; &nbsp;</span>(CRGE)</strong>&nbsp;&nbsp; &nbsp;strategy&nbsp;&nbsp; &nbsp;in&nbsp;&nbsp; &nbsp;2011,&nbsp;&nbsp; &nbsp;which&nbsp;&nbsp; &nbsp;lays&nbsp;&nbsp; &nbsp;down&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;country&rsquo;s</span><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> plan&nbsp;to&nbsp;&nbsp; &nbsp;develop&nbsp;&nbsp; &nbsp;a&nbsp;&nbsp; &nbsp;carbon&nbsp;&nbsp; &nbsp;neutral,&nbsp;&nbsp; &nbsp;green&nbsp;&nbsp; &nbsp;economy&nbsp;&nbsp; &nbsp;by&nbsp;&nbsp; &nbsp;2025.&nbsp;&nbsp; &nbsp;Provision&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;an&nbsp;&nbsp; &nbsp;affordable&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;efficient&nbsp;&nbsp; &nbsp;transport&nbsp;&nbsp; &nbsp;system&nbsp;&nbsp; &nbsp;will&nbsp;&nbsp; &nbsp;make&nbsp;&nbsp; &nbsp;a&nbsp;&nbsp; &nbsp;crucial&nbsp;&nbsp; &nbsp;contribution&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;economic&nbsp;&nbsp; &nbsp;growth,&nbsp;&nbsp; &nbsp;employment&nbsp;&nbsp; &nbsp;creation,&nbsp;&nbsp; &nbsp;social&nbsp;&nbsp; &nbsp;welfare&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;expansion&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;industrial&nbsp;&nbsp; &nbsp;sector.&nbsp;&nbsp; &nbsp;Estimated&nbsp;&nbsp; &nbsp;GDP&nbsp;&nbsp; &nbsp;growth&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;8.5%&nbsp;&nbsp; &nbsp;in&nbsp;&nbsp; &nbsp;2012&nbsp;&nbsp; &nbsp;made&nbsp;&nbsp; &nbsp;Ethiopia&nbsp;&nbsp; &nbsp;one&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;Africa's&nbsp;&nbsp; &nbsp;best&nbsp;&nbsp; &nbsp;performing&nbsp;&nbsp; &nbsp;economies&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;country&nbsp;&nbsp; &nbsp;is&nbsp;&nbsp; &nbsp;expected&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;continue&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;represent&nbsp;&nbsp; &nbsp;one&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;world&rsquo;s&nbsp;&nbsp; &nbsp;fastest&nbsp;&nbsp; &nbsp;growing&nbsp;&nbsp; &nbsp;economies&nbsp;&nbsp; &nbsp;in&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;years&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;come.&nbsp;&nbsp; &nbsp;</span></p>
OtherNAMA: Ethiopia Railways ­‐ Establishment of Climate Vulnerability Infrastructure Investment Framework NAMA
UNParty: Ethiopia
CommentsOnFullCost: -
CommentsOnFullCostImplementation: <p style="margin-left: 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Based&nbsp;on&nbsp;&nbsp; &nbsp;per-­‐km&nbsp;&nbsp; &nbsp;track&nbsp;&nbsp; &nbsp;cost&nbsp;&nbsp; &nbsp;estimates&nbsp;&nbsp; &nbsp;from&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;Ethiopian&nbsp;&nbsp; &nbsp;Railway&nbsp;&nbsp; &nbsp;Corporation,&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;total&nbsp;&nbsp; &nbsp;cost&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;electric&nbsp;&nbsp; &nbsp;rail&nbsp;&nbsp; &nbsp;network&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;be&nbsp;&nbsp; &nbsp;USD&nbsp; 15.6&nbsp;&nbsp; &nbsp;billion&nbsp;USD, <span style="letter-spacing: -0.05pt;">&nbsp;</span>while&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;Addis&nbsp;&nbsp; &nbsp;Ababa&nbsp;&nbsp; &nbsp;LRT&nbsp;&nbsp; &nbsp;is&nbsp;&nbsp; &nbsp;expected&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;cost&nbsp;&nbsp; &nbsp;475&nbsp;&nbsp;&nbsp;million&nbsp;USD&nbsp;for&nbsp;&nbsp; &nbsp;phase&nbsp;&nbsp; &nbsp;I&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;761.53&nbsp;&nbsp; &nbsp;million&nbsp;&nbsp; &nbsp;USD&nbsp;&nbsp; &nbsp;for&nbsp;&nbsp; &nbsp;phase&nbsp;&nbsp; &nbsp;II.&nbsp;&nbsp; &nbsp; &nbsp; &nbsp;</span></p> <br /> <p style="margin: 0.05pt 4.55pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">The&nbsp;initial&nbsp;&nbsp; &nbsp;financing&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;three&nbsp;&nbsp; &nbsp;railway&nbsp;&nbsp; &nbsp;routes&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;Addis&nbsp;&nbsp; &nbsp;Ababa&nbsp;&nbsp; &nbsp;LRT&nbsp;&nbsp; &nbsp;has&nbsp;&nbsp; &nbsp;been&nbsp;&nbsp; &nbsp;successfully&nbsp;&nbsp; &nbsp;secured.&nbsp;&nbsp; &nbsp;The&nbsp;&nbsp; &nbsp;operation&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;routes&nbsp;&nbsp; &nbsp;will&nbsp;&nbsp; &nbsp;however&nbsp;&nbsp; &nbsp;see&nbsp;&nbsp; &nbsp;an&nbsp;&nbsp; &nbsp;exploitation&nbsp;&nbsp; &nbsp;shortfall&nbsp;&nbsp; &nbsp;due&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;debt&nbsp;&nbsp; &nbsp;financing&nbsp;&nbsp; &nbsp;repayments.&nbsp;&nbsp; &nbsp; &nbsp;</span></p> <p style="margin: 0in 11.4pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">&nbsp;<br /> For&nbsp;the&nbsp;&nbsp; &nbsp;already&nbsp;&nbsp; &nbsp;financed&nbsp;&nbsp; &nbsp;route,&nbsp;&nbsp; &nbsp;large&nbsp;&nbsp; &nbsp;scale&nbsp;&nbsp; &nbsp;climate&nbsp;&nbsp; &nbsp;finance&nbsp;&nbsp; &nbsp;is&nbsp;&nbsp; &nbsp;targeted&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;be&nbsp;&nbsp; &nbsp;used&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;re-­‐finance&nbsp;&nbsp; &nbsp;while&nbsp;&nbsp; &nbsp;for&nbsp;&nbsp; &nbsp;new&nbsp;&nbsp; &nbsp;lines,&nbsp;&nbsp; &nbsp;climate&nbsp;&nbsp; &nbsp;finance&nbsp;&nbsp; &nbsp;is&nbsp;&nbsp; &nbsp;envisioned&nbsp;&nbsp; &nbsp;to&nbsp;&nbsp; &nbsp;be&nbsp;&nbsp; &nbsp;incorporated&nbsp;&nbsp; &nbsp;in&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;initial&nbsp;&nbsp; &nbsp;financing&nbsp;&nbsp; &nbsp;model.&nbsp;&nbsp; &nbsp;In&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;absence&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;large-­‐scale&nbsp;&nbsp; &nbsp;climate&nbsp;&nbsp; &nbsp;finance&nbsp;&nbsp; &nbsp;targeting&nbsp;&nbsp; &nbsp;infrastructure&nbsp;&nbsp; &nbsp;financing,&nbsp;&nbsp; &nbsp;ERC&nbsp;&nbsp; &nbsp;focuses&nbsp;&nbsp; &nbsp;on&nbsp;&nbsp; &nbsp;utilizing&nbsp;&nbsp; &nbsp;climate&nbsp;&nbsp; &nbsp;finance&nbsp;&nbsp; &nbsp;to fin<span style="font-size: 12pt; font-family: Calibri,sans-serif;">ance&nbsp;activities&nbsp;&nbsp; &nbsp;supporting&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp; &nbsp;sustainable&nbsp;&nbsp; &nbsp;operation&nbsp;&nbsp; &nbsp;of&nbsp;&nbsp; &nbsp;its&nbsp;&nbsp; &nbsp;railway.&nbsp;&nbsp; &nbsp;</span><br /> </span></p> <span style="font-size: 12pt; font-family: Calibri,sans-serif;"></span>
CommentsOnIncrementalCostImplementation: -
CoveredGreenhouseGases: CO2
AttachmentDescription:
Item Status: Published
Publishing date: 1/5/2015
NAMAId: NR-172
ConversionRate:
GeneralComments: -
Approval Status: Approved

Created at 1/6/2015 12:16 PM by Vladislav Marinov
Last modified at 8/28/2015 3:55 PM by System Account
 
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