Ethiopia’s Ministry of Finance has issued a Request for Expression of Interest (REOI) to develop the existing Indode Freight Station—situated approximately 26 km southeast of Addis Ababa—into a full-fledged intermodal rail terminal, dry port, and logistics hub.

The private sector partner will be responsible for several key areas under the project:

Design and Construction:
The Project Company will take on the risks associated with design and construction, ensuring the project is completed on time and meets all agreed standards and technical specifications.

Operations and Management:
The company will operate and maintain the facility over a 25–30-year concession period, during which it will collect revenue. It must meet defined performance indicators and service standards throughout this period. At the end of the concession, the facility will be handed back to the government.

Financing:
The Project Company will secure the necessary funding for the project, combining both debt and equity sources.

Risk Allocation:
Risks related to design, construction, operations, and management will rest with the Project Company. In addition, it will bear the demand risk associated with the facility’s usage and revenue generation.

The main objective of this REOI is to attract and encourage interest in the Project from both local and international private sector participants, including potential suppliers, subcontractors, and financiers. It also aims to help the Ethiopian Railways Corporation (ERC) assess whether there is adequate private sector interest to move forward with the full PPP tendering process.

For additional details about this tender, please visit our Business Opportunity page here.