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Financing strategy for Addis Ababa Light Rail Transit

This technical assistance advances the following Sustainable Development Goals:

Industry, innovation and infrastructure

Industry, innovation and infrastructure

Sustainable cities and communities

Sustainable cities and communities

Climate action

Climate action


Adis Abbaba does not have proper public transport to cope with the existing demand. The associated rise in emissions is already apparent and will become more critical as the number of vehicles using the road network increase. Ethiopia plans to implement Transit Oriented Development (TOD) to facilitate sustainable urban development through low carbon transportation. TOD areas are designated in a pedestrian oriented manner and bring together housing, transportation and jobs. Initial concepts for TOD nodes have been developed. The absence of a suitable financing strategy that enables public and private investment however hampers the further development and implementation.

Requested CTCN Response

  • Detailed assessment of public infrastructure needs
  • Assessment of barriers to private investment
  • Formulation of financing structure and instruments

Relevant Technologies and Approaches

Expected Results

  • Technical capability to develop an effective funding strategy for the realisation of pilot TOD investment in Ethiopia
  • Successful TOD investments will result in considerable direct and indirect emission reductions
  • Investments in public infrastructure such as sewage systems and road drainage will increase climate resilience of urban areas
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