Monday, October 29, 2018

Addis Ababa-Djibouti Railway: A Bad Deal for China?

The South China Morning Post published on 29 October 2018 an article titled "Botched Chinese Railway Project in Africa Is a Warning to Belt and Road Investors" by Eric Ng.

The China Rail Engineering Corporation and China Civil Engineering Construction Corporation built the $4 billion railway between Djibouti and Addis Ababa. The chief economist for the China Export and Credit Insurance Corporation (Sinosure), which helped finance the project, recently stated that mistakes made in the project have cost Sinosure almost $1 billion. The project was backed by $3.3 billion in loans from the Export-Import Bank of China.