In the next few years, Ethiopia will implement a series of large railroad constructions which will increase the rail network in the huge country by fourfold to a total of approximately 2,400 km. The plan is to extend the rail network to approximately 5,000 km in the long term. For comparison, the total rail network in Denmark covers about 2,000 km.
> EKF helps to secure financing for parts of the ambitious building project by issuing guarantees worth a total of DKK 1.1 billion.
> The main part of this amount is used to guarantee orders for the Danish contractor Per Aarsleff A/S as well as for a number of small sub-suppliers.
> A small part of the amount covers orders for Italian sub-suppliers of, among others, cables and rails. This part will be fully reinsured by SACE, the Italian export credit agency.
Ethiopian Railway Corporation (ERC) will pay back the loan in 13 years.