United States Company has agreed with Ethiopia to construct the fuel pipeline linking landlocked Ethiopia to Djibouti.US secretary of state said in a statement seen by APA on Friday that the black Rhino company owned by funds from United States investment firm Blackstone Group has obtained the privilege of the construction of a 550-kilometer fuel pipeline linking Ethiopia to Djibouti.
The United States Assistant Secretary of State, Antony Blinken, said that construction of the $1.55 billion project will soon be launched, without giving more details.
Last year Ethiopia and Djibouti signed an agreement to carry on the construction of the fuel pipeline due to be completed in 2018.
When the fuel pipeline project also known as Horn of Africa pipeline (HOAP), goes operational, it will transport diesel, gasoline and jet fuel to the horn of African nation whose annual fuel demand grows at an average rate of 15 percent.
The pipeline project is projected to boost energy security and economic development to Ethiopia, one of the world’s fast growing economy.
Currently the country transports its imported fuel using hundreds of tanker trucks, but it is costly and time consuming ineffective to meet Ethiopia’s energy requirements.