Modernisation of the Lake Tana Transport Infrastructure

Summary

The specific objective of this project is to develop the transportation infrastructure that facilitates the current transportation needs of the local population around Lake Tana. In a wider perspective, the project seeks to contribute to the economic growth of the region directly around the lake, but also to open up the region in order to serve the demand from the larger region, especially the famine and drought stricken eastern regions of the country.

Location

Amhara State, Ethiopia

Sector

Infrastructure

Applicant

Ministry of Transport and Communications

Competent Authority

Lake Tana Transport Enterprise (LTTE)

Parties Involved

Finance for Projects (F4P)

Project number

ORIO09/ET/24

Total project costs / Total ORIO Grant amount

14,239,842 Euro / 7,252,421 Euro

Status project

Development Phase

Lake Tana is located in the Amhara State in Ethiopia. It is the source of the Blue Nile and the largest lake in Ethiopia. Located in the north-western Ethiopian highlands, it forms the centre of the Tana sub-basin and is an important source for fishing and irrigation for the entire downstream farmland. Currently, the potential of the area for the production of agricultural products is hampered due to insufficient transportation capacity. This bottleneck disables the farmers to produce more agricultural products which could be transported to other regions in Ethiopia or exported to other countries. There are limited alternatives other than water transport to move passengers and cargo due to lack of roads, the fact that expanding the road network would be costly and the inaccessibility of some sites around the lake.

The project will solve the capacity constraint by providing reliable and frequent transport services on Lake Tana. It concerns the improvement of transport capacity on and around the lake. The project is defined as the design, implementation, operation and maintenance of an all-embracing water transport facility; vessels, shore facilities and a well functioning operator. The transaction concerns the purchase of four vessels, a dredging facility and dredging works, rehabilitation of landing sites, maintenance, training and capacity building. The dredging boat will serve as a ferry boat in the high season (high water) and it will be used as a dredging boat in the low season (low water).