Addis Ababa Light Rail Transit Transit Oriented Development NAMA (Ethiopia)

General Information of the NAMA

General Information
Country Ethiopia
National implementing entity (NAMA owner)

Ethiopian Railway Corporation (ERC)

Development stage Implementation
International Partners
Total costs USD 8.9 million
Duration 1.5 years
Scope of the NAMA
Type of NAMA

Supported (with unilateral elements)

Type of action Project
Scope of action  Not known
Type of approach  Avoid, Shift, Improve
Transport mode

A main pillar of Ethiopia’s Climate Resilient Green Growth (CRGE) strategy is to avoid emissions in the transport sector through a shift of freight and passenger transport from road to rail. The Ethiopian Railways Corporation (ERC) was set up in 2007 with the mandate to construct railway infrastructure and provide passenger and freight rail transport services in Ethiopia. The envisaged infrastructure consists of two railway project components: the Addis Ababa Light Rail Transit (LRT) and the National Railway Network (NRN).

ERC intends to implement measures to increase ridership and revenue for its LRT. In collaboration with the City of Addis Ababa ERC plans to pilot Transit Oriented Development (TOD). TOD is an urban development concept, which promotes mixed-use public, residential and commercial areas, favouring non­‐motorized modes of transport. High­‐density urban development along the LRT will increase revenues through ticketing (enhanced ridership) and increase the value of land/leases, which will contribute to the sustainable operation of the LRT. Simultaneously TOD will directly (through avoidance of transport need as commercial and social activities are grouped within the TOD) and indirectly (increased LRT ridership as TOD residents will use LRT when transport is required) reduce GHG emissions in Addis Ababa.

The NAMA will address amongst others the design of the pilots through the preparation of a bankable feasibility study, the regulatory frameworks and an operational cooperation structure. The NAMA assists in the preparation of a structured debt fund to take away the risk for private sector investment for social housing and SMEs in particular and will prepare the conditions for public-­private partnerships.

Mitigation potential

Mitigation impact
Expected mitigation impact


Total costs USD 8.9 million
Costs for preparation
Costs for implementation

The Government of Ethiopia through ERC will provide co­‐funding of USD 1.2 million for the purpose of the preparation of the bankable feasibility study.

The other USD 7.7 shall be obtained through international support.






  • Air quality


  • Transport safety
  • Easy access to work and business


  • Lower costs of transport
  • Use of Public Private Partnerships (PPP), co-­development structures without precedent in Ethiopia.