Wednesday, September 30, 2015

Contractors sign deal to build Djibouti-Ethiopia fuel pipeline

(Sep 30, 2015, (Reuters))--Black Rhino, owned by funds of U.S. investment firm Blackstone Group, and a South African-based firm have signed framework agreements to build a fuel pipeline between Djibouti and Ethiopia, the contractors said on Wednesday.

The $1.55 billion pipeline, due for completion in 2018, aims to improve efficiency and safety of importing fuel from the port in Djibouti to land-locked Ethiopia, whose economy is one of the fastest growing in Africa.

The new link will deepen growing economic ties between the Horn of Africa nations. Ethiopia is building a new railway line to Djibouti, which is seeking to become a regional shipping hub. Djibouti also hosts U.S. and French military bases.

"The pipeline will increase energy security, aid economic development and reduce harmful emissions," Black Rhino chief executive Brian Herlihy said in a statement. Read more from Reuters »

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