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China-Ethiopian Bilateral investment Agreement 2018; [APPROVED]
Topic Started: Jan 2 2018, 10:36 PM (90 Views)
Vonar Roberts

China-Ethiopian Bilateral investment Agreement 2018:
In the spirit of deepening bilateral economical ties the People's Republic of China and the Federal Democratic Republic of Ethiopia have both agreed to a Bilateral Investment Agreement following up on previous investment agreements to develop and strengthen China and Ethiopia's bilateral ties.


Article 1.0 Dams & Power Grid:
A consortium of Chinese firms lead by China's Sinohydro will be awarded the contract for a 300 MW $750 Million USD Genale Dawa IV dam
As well as the 300 MW $750 Million USD Genale Dawa IV dam.


Article 2.0 Railways:
http://i1382.photobucket.com/albums/ah255/Aaraldi/Ethiopia%20rail_zpsogluysva.jpg~original
Building up on the Addis Ababa-Djibouti railway the China-Export-Import Bank will finance a 905 km expansion of the railway connecting Modjo to Moyale a estimated length of 905km with a similar deal to the CREC in which China will for the first five years operate the railway, but during this initial operation period also train Ethiopians to take over. With a average cost of $9.1 Million per km a 905km railway is projected to cost $8.235 Billion USD. A 30-year concession will be granted to Chinese firms for the construction of a railway linking Ethiopia to Sudan, South Sudan, and Kenya with Phase 2 development to include a link from Addis Ababa north to Dangla, a distance of 327.00 km and a link North West to Jimma and Metu from Addis Ababa a distance of 415.53 km. Phase 2 development is expected to cost $6.757 Billion USD Development of Phase One expansions will be from 2018-2020, and Phase 2 will be from 2020-2022. Under this agreement Phase 3 will be undefined, determinate upon international agreements but will likely include connections from Metu to South Sudan, Dangla to Sudan, and Moyale to Kenya but should be complete by 2025.


Article 3.0 Mining:
Chinese companies will be granted first-choice licenses in which every mining company should allocate 5% free equity shares apart from 8% royalties and 35% income tax to develop new rare earth mineral mines in Ethiopia for at least 25 years with the option to extend the lease for a further ten-year period. In particular Chinese mining firms will get first-choice of likely prospect sites to development the most promising Rare Earth's, Tantalum deposits, Potash, Gold, and where possible Chinese firms will enter in 50/50 joint ventures with Ethiopian mining companies to reduce risk.

Article 4.0 Oil & Oil shale Development:
Chinese firms will pay $1 Billion USD and have access to a percentage of the wells in the the South Omo Block, the Rift Valley Study Block, Block 7, Block 8, and the Adigala Block greater than 50%. Additionally a new pair of exploration blocks will be created in Tigray State for the exploration and eventual development of the estimated 3.89 billion tons of oil shale, or approximately 1 trillion barrels of oil. As a part of this development agreement CNOOC will build a Oil refinery in Addis Ababa Ethiopia, to produce Oil for the domestic marketplace as well as agreements authorizing the construction of pipelines to the port of Djibouti after Oil and Natural Gas has been discovered and production has begun.


Article 5.0 Natural Gas Development:
Sinopec will pay $1 Billion USD to the Ethiopian government and form the Sino-Ethiopian Oil & gas company, a 50/50 joint state-owned company will be created to develop the resources of the Calub and Hilala fields in the Ogaden Basin which are reported to have deposits of 4.7 trillion cubic feet of gas and 13.6 million barrels of associated liquids. Under this agreement China will invest $500 Million into the establishment of the company & Both China & Ethiopia will invest $250 Million to begin exploration and production of said Natural Gas as well as possible Oil deposits. Once deposits are confirmed, and production begins An $500 Million USD plant will be established in Addis Ababa to generate 4800 MWH/Day of energy from Natural Gas pumped from the Ogaden Basin with a agreement to export the remainder of the Natural Gas that is not used domestically by Ethiopia to China at established market-rates.


Article 6.0Solar Development in Ethiopia:
In order to off-set Oil & gas use in energy production a joint state company will be created with a initial investment of $250 Million. This company will be owned 50/50 by China & Ethiopia and will be tasked with the harnessing of solar energy in rural African communities who otherwise would rely on expensive Diesel or Gas fuels. Both hydro projects will be supplemented by a $250 Million USD joint venture into Solar development with a new 200 MW Solar farm with 50 MW of energy storage facility along with appropriate transmission infrastructure to be built outside of Addis Ababa, and the agreement will have a memorandum of understanding for the construction of future solar farms to be built in Ethiopia.

Article 7.0 Aid & Employment :
$250 Million worth of humanitarian aid, with the majority of it being food supplies will be delivered to Ethiopia by Chinese Y-20's, as well as a one-time payment of $250 Million USD in economic aid being provided to Ethiopia by China. Under the project rules Qualified Ethiopian workers will consist of 60% minimum employees by the project's authorized under this agreement.


Article 8.0: Currency:
China and Ethiopia both agree to use the Yuan to settle bilateral trade accounts between China and Ethiopia.
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Hastati
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Signed,

Hailemariam Desalegn
Prime Minister of the Federal Democratic Republic of Ethiopia
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Vonar Roberts

Signed,
Xi Jinping
president of the People's Republic of China
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Jos1311
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Approved
Do however note that the railway will take longer to complete Phase 1 will be from 2019-2022, Phase 2 will be from 2023-2025, and the final phase will be from 2025 to around 2030. Other than that additional results will be granted from 2022 onward (contact me around that time). The Chinese investments will be made from 2019-2022, and will initially have limited effect for China, but that will come in the longer run.

Ethiopia:
Domestic popularity: +4.00%
Domestic popularity: -1.00%
GDP Growth: +8.28% - 'spread over 2019-2022'
Contact me in late 2022 for results for phase 2, 3, and additional results.

China:
Domestic popularity: +1.00%
Domestic popularity: -0.50%
International popularity: +0.25%
funding deducted
Contact me in late 2022 for results for phase 2, 3, and additional results.
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