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 has the ambition to develop its economy to make it more resilient to the impacts of climate change and pursue low carbon development. The Government of Ethiopia has adopted the Growth and Transformation Plan (GTP), which outlines the country’s strategy to reach middle-‐income status before 2025. At the same time, the Government has issued the Climate-‐Resilient Green Economy (CRGE) strategy in 2011, which lays down the country’s plan<span style="letter-spacing: 0.6pt;"> </span>for<span style="letter-spacing: 0.6pt;"> </span>a <span style="letter-spacing: 0.6pt;"> </span>carbon<span style="letter-spacing: 0.6pt;"> </span>neutral,<span style="letter-spacing: 0.6pt;"> </span>green<span style="letter-spacing: 0.6pt;"> </span>economy<span style="letter-spacing: 0.6pt;"> </span>by<span style="letter-spacing: 0.6pt;"> </span>2025.<span style="letter-spacing: 0.6pt;"> </span>Combining<span style="letter-spacing: 0.6pt;"> </span>rapid economic growth while containing the environmental impact is a challenge that Ethiopia aims to realise through international partnerships, targeting both financial cooperation and capacity buildin<span style="letter-spacing: -0.05pt;">g</span>. </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;"> </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 Ethiopia were to pursue a conventional economic development path to achieve its ambitious development targets, the resulting negative environmental impacts would follow the fatal patterns observed<span style="letter-spacing: 0.7pt;"> </span>all<span style="letter-spacing: 0.7pt;"> </span>around<span style="letter-spacing: 0.7pt;"> </span>the<span style="letter-spacing: 0.7pt;"> </span>globe.<span style="letter-spacing: 0.7pt;"> </span>Under<span style="letter-spacing: 0.7pt;"> </span>current <span style="letter-spacing: 0.7pt;"> </span>practices,<span style="letter-spacing: 0.7pt;"> </span>greenhouse gas (GHG) emissions would more than double from 150 Mt CO2e in 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;"> </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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;"> </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;"> </span>CRGE<span style="letter-spacing: 0.1pt;"> </span>strategy<span style="letter-spacing: 0.1pt;"> </span>describes<span style="letter-spacing: 0.1pt;"> </span>a <span style="letter-spacing: 0.1pt;"> </span>number<span style="letter-spacing: 0.1pt;"> </span>of<span style="letter-spacing: 0.1pt;"> </span>‘abatement <span style="letter-spacing: 0.1pt;"> </span>levers’<span style="letter-spacing: 0.1pt;"> </span>to<span style="letter-spacing: 0.1pt;"> </span>drive the transition to a green economy. Transport has been identified as a key sector with a significant GHG abatement potential and vast sustainable development benefits. </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;"> </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 specifically, construction of the Light Rail Transit (LRT) system in<span style="letter-spacing: 0.05pt;"> </span>Addis<span style="letter-spacing: 0.05pt;"> </span>Ababa <span style="letter-spacing: 0.05pt;"> </span>and<span style="letter-spacing: 0.05pt;"> </span>a <span style="letter-spacing: 0.05pt;"> </span>modal<span style="letter-spacing: 0.05pt;"> </span>shift <span style="letter-spacing: 0.05pt;"> </span>of<span style="letter-spacing: 0.05pt;"> </span>freight <span style="letter-spacing: 0.05pt;"> </span>transport <span style="letter-spacing: 0.05pt;"> </span>from<span style="letter-spacing: 0.05pt;"> </span>road<span style="letter-spacing: 0.05pt;"> </span>to<span style="letter-spacing: 0.05pt;"> </span>an electric rail network powered through renewable energy (electricity in Ethiopia is almost entirely renewable, generated by hydropower, geothermal and wind power) are listed as the most beneficial 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;"> </span><span style="font-size: 12pt; line-height: 97%; font-family: Calibri,sans-serif;"> </span><span style="font-size: 12pt; line-height: 97%; font-family: Calibri,sans-serif;">A modal shift from road to rail will be a key pillar to transform Ethiopia’s economy to a middle income country, as affordable<span style="letter-spacing: 0.2pt;"> </span>integration<span style="letter-spacing: 0.2pt;"> </span>to<span style="letter-spacing: 0.2pt;"> </span>its<span style="letter-spacing: 0.2pt;"> </span>neighbouring<span style="letter-spacing: 0.2pt;"> </span>countries<span style="letter-spacing: 0.2pt;"> </span>will<span style="letter-spacing: 0.2pt;"> </span>be<span style="letter-spacing: 0.2pt;"> </span>achieved. <br /> <br /> <span style="font-size: 12pt; font-family: Calibri,sans-serif;">This <span style="letter-spacing: 0.05pt;"> </span>is <span style="letter-spacing: 0.1pt;"> </span></span><span style="font-size: 12pt; font-family: Calibri,sans-serif;">key<span style="letter-spacing: 0.1pt;"> </span>for<span style="letter-spacing: 0.1pt;"> </span>a <span style="letter-spacing: 0.1pt;"> </span>landlocked<span style="letter-spacing: 0.1pt;"> </span>country<span style="letter-spacing: 0.1pt;"> </span>like<span style="letter-spacing: 0.1pt;"> </span>Ethiopia <span style="letter-spacing: 0.1pt;"> </span>to<span style="letter-spacing: 0.1pt;"> </span>achieve<span style="letter-spacing: 0.1pt;"> </span>its<span style="letter-spacing: 0.1pt;"> </span>export <span style="font-size: 12pt; font-family: Calibri,sans-serif;">targets and to access lower cost imports</span>.<br /> <br /> <br /> </span></span><strong><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> Baseline scenario <br /> <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 emissions from the transport sector currently only contribute </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;"> </span>to<span style="letter-spacing: 0.5pt;"> </span>Ethiopia's<span style="letter-spacing: 0.5pt;"> </span>GHG<span style="letter-spacing: 0.5pt;"> </span>emissions,<span style="letter-spacing: 0.5pt;"> </span>they<span style="letter-spacing: 0.5pt;"> </span>are<span style="letter-spacing: 0.5pt;"> </span>expected<span style="letter-spacing: 0.5pt;"> </span>to<span style="letter-spacing: 0.5pt;"> </span>increase<span style="letter-spacing: 0.5pt;"> </span>by<span style="letter-spacing: 0.5pt;"> </span>7-‐ fold from around 5 Mt CO2e in 2010 to 40 Mt CO2e in 2030 when following a BAU scenario. Currently ~75% of the emissions come from road transport, particularly freight and construction vehicles, and to a lesser extent private passenger vehicles. Air transport also contributes a significant share (23% of transport-‐related emissions). </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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;"> </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 annual growth rate ranging from 12.4%-‐ 13.7% in tonne-‐km of </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 transported is estimated to create a baseline scenario up to </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. 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. </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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;"> </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 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. </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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;"> </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 scenario </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 of emission can be achieved through modal shift of </span><span style="font-size: 12pt; font-family: Calibri,sans-serif;">freight and passenger transport from road to rail. </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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;"> </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 Ethiopian Railways Corporation (ERC) was therefore set up in </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 with the mandate to construct railway infrastructure and provide passenger and freight trail transport services in Ethiopia. The envisaged infrastructure consists of two railway project components,<span style="letter-spacing: 0.05pt;"> </span>namely<span style="letter-spacing: 0.05pt;"> </span>the<span style="letter-spacing: 0.05pt;"> </span>Addis<span style="letter-spacing: 0.05pt;"> </span>Ababa <span style="letter-spacing: 0.05pt;"> </span>Light <span style="letter-spacing: 0.05pt;"> </span>Rail<span style="letter-spacing: 0.05pt;"> </span>Transit <span style="letter-spacing: 0.05pt;"> </span>(LRT)<span style="letter-spacing: 0.05pt;"> </span>and<span style="letter-spacing: 0.05pt;"> </span>the National Railway Network (NRN) </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif; color: #3f403f;"> </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;"> </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 first phase of the LRT project is planned to be 35 km long, its construction started in 2012 and is planned to be finalized in the beginning of the year 2015. The second phase of the LRT will be an extension of the first line of ~ 54.91 km, leading to a total length of </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 km.</span><span style="font-size: 12pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif;"> </span><span style="font-size: 9.5pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif; color: #3f403f;"> </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;"> </span>NRN,<span style="letter-spacing: 0.45pt;"> </span>on<span style="letter-spacing: 0.45pt;"> </span>its<span style="letter-spacing: 0.45pt;"> </span>part,<span style="letter-spacing: 0.45pt;"> </span>consists<span style="letter-spacing: 0.45pt;"> </span>of<span style="letter-spacing: 0.45pt;"> </span>eight <span style="letter-spacing: 0.45pt;"> </span>corridors<span style="letter-spacing: 0.45pt;"> </span>of<span style="letter-spacing: 0.45pt;"> </span>varying<span style="letter-spacing: 0.45pt;"> </span>lengths<span style="letter-spacing: 0.45pt;"> </span>in diversified strategic routes that will be realised in two phases, covering over 5,000 km in distance.</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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;"> </span> </p> <p style="margin: 0in 0.25pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route 1: Addis Ababa-‐Modjo-‐Awash-‐Dire Dawa-‐Dewanl (656 km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> <br /> </span><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Route 2: Modjo-‐Shashemene-‐Arbaminch-‐Konso-‐Moyale Including Shashemene-‐Hawasa and Konso-‐Weyto (905 km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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 3: Addis Ababa-‐Ijaji-‐Jimma-‐Guraferda-‐Dima including Jimma-‐ Bedele (direct to Boma with further extension to south Sudan) (740 km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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 4: Ijaji-‐Nekeme<span style="letter-spacing: 0.05pt;">t</span>-‐Assosa-‐Kumruk (460 km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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 5: Awash-‐Kombolcha-‐Mekele-‐Shire (757 km)</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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 6: Fenoteselam-‐Bahirdar-‐Wereta-‐Weldia-‐Semera-‐Elidar (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 7:Wereta-‐Azezo-‐metema (244 km), </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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 8: Adama-‐indeto-‐Gasera (248 km). </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;"> </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;"> </span>initial<span style="letter-spacing: 0.4pt;"> </span>financing<span style="letter-spacing: 0.4pt;"> </span>of<span style="letter-spacing: 0.4pt;"> </span>the<span style="letter-spacing: 0.4pt;"> </span>three<span style="letter-spacing: 0.4pt;"> </span>railway<span style="letter-spacing: 0.4pt;"> </span>routes<span style="letter-spacing: 0.4pt;"> </span>and<span style="letter-spacing: 0.4pt;"> </span>the<span style="letter-spacing: 0.4pt;"> </span>Addis<span style="letter-spacing: 0.4pt;"> </span>Ababa LRT has been successfully secured. The operation of the routes will however see an exploitation shortfall due to debt financing repayments. </span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </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;"> </span> </p> <span style="font-size: 12pt; font-family: Calibri,sans-serif;">For the already financed route, large scale climate finance is targeted to be used to re-‐finance while for new lines, climate finance is envisioned to be incorporated in the initial financing model. In the absence of large-‐scale climate finance targeting infrastructure financing, ERC focuses on utilizing climate finance to finance activities supporting the sustainable operation of its railway.</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"> </span><br /> <br /> <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 transport from road to rail would not only decrease transport costs and improve the trade balance through reduced import of fossil fuels and reduced road maintenance (economic benefits), but would also lower congestion, air pollution (NOx), noise and vibration pollution, traffic accidents and will increase employment, social equity and tax revenues. A major macro-‐ economic benefit is the enhanced integration of Ethiopia with its E<span style="font-size: 12pt; font-family: Calibri,sans-serif;">ast African neighbours as well as enhanced access to sea ports. </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 has taken on the ambition to capitalise on its rapid economic growth by investing in an economy that is more resilient to the impacts of climate change and pursue low carbon development. The Government of Ethiopia has adopted the <strong>Growth<span> </span><span>and </span><span> Transformation <span style="letter-spacing: 0.05pt;"> </span></span>P<span>lan </span>(GT<span style="letter-spacing: -0.05pt;">P</span></strong>), which outlines the country’s strategy to reach middle-‐income status before 2025. At the same time, the Government has issued the<strong><span> </span>Climate<span>-‐</span>Resilient<span> </span>Green<span> </span>Economy<span> </span>(CRGE)</strong> strategy in 2011, which lays down the country’s</span><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> plan to develop a carbon neutral, green economy by 2025. Provision of an affordable and efficient transport system will make a crucial contribution to economic growth, employment creation, social welfare and the expansion of the industrial sector. Estimated GDP growth of 8.5% in 2012 made Ethiopia one of Africa's best performing economies and the country is expected to continue to represent one of the world’s fastest growing economies in the years to come. </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 on per-‐km track cost estimates from the Ethiopian Railway Corporation, the total cost of the electric rail network to be USD 15.6 billion USD, <span style="letter-spacing: -0.05pt;"> </span>while the Addis Ababa LRT is expected to cost 475 million USD for phase I and 761.53 million USD for phase II. </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 initial financing of the three railway routes and the Addis Ababa LRT has been successfully secured. The operation of the routes will however see an exploitation shortfall due to debt financing repayments. </span></p> <p style="margin: 0in 11.4pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> <br /> For the already financed route, large scale climate finance is targeted to be used to re-‐finance while for new lines, climate finance is envisioned to be incorporated in the initial financing model. In the absence of large-‐scale climate finance targeting infrastructure financing, ERC focuses on utilizing climate finance to fin<span style="font-size: 12pt; font-family: Calibri,sans-serif;">ance activities supporting the sustainable operation of its railway. </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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