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Ethiopian Railways Corporation Signed Contract Agreement for the Management of the Addis Ababa LRT with Two Chinese Companies

December 2nd 2014: Ethiopian Railways Corporation (ERC) signed Management Contract Agreement for the operations and maintenance management services of The Addis Ababa Light Rail Transit System (AALRT) with China Railway Group Limited (CREC) and Shenzen Metro Group Co. LTD (SZMC) at a ceremony held at Sheraton Addis.

Dr. Eng. Getachew Betru, CEO of ERC, Mr. Tang Zhicheng, authorized representative of CREC, and Mr. Lin Maode, Board Chairman of (SZMC), signed the agreement on behalf of their companies respectively.

Dr. Eng. Getachew said on the occasion “since we do not have sufficient local expertise, we are compelled to secure the services of experienced international companies to manage and maintain the system during the initial years.” He went on to say that the contract is designed to bring about knowledge and technology transfer during the life of the contract and towards the end of the contract Ethiopian personnel will begin assuming the responsibility of managing and maintain the rail system.

H.E. Dr. Arkebe Equbay, Advisor Minister of the Prime Minister and Board Chairman of ERC, on his part said that the agreement will enable the light rail transportation efficient and reliable. He also said that ERC will be able to build up its capacity from the experience it gains from the contract agreement.

According to the Agreement the Contract will last for 48 months out of which five months will be dedicated for preparation and test run activities. 36 months are for on job training of seconded Ethiopian personnel and for the operation and maintenance of the AALRT. The remaining seven months will be used for the provision of technical assistance for the LRT System managed by Ethiopian managers after the handover.

At the commencement of the services 290 Chinese will work alongside 396 Ethiopians and the proportion changes gradually and the Management Contractor will hand over the AALRT at the end of the 3rd year and provide technical assistance for seven months in the 4th year.

 

 

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