HOW DO TRANSPORTATION PROJECTS WITH CHINESE FUNDING COMPARE TO TRANSPORTATION PROJECTS WITHOUT CHINESE FUNDING IN ETHIOPIA?

Abstract

This thesis compares large-scale infrastructure projects in Ethiopia that include funding from the Chinese government to similar projects that do not include funding from Chinese sources. This thesis analyzes the construction and upgrade of the Ethiopian road network and compares roadway infrastructure projects with and without Chinese financial assistance on six criteria: (1) project selection (2) project execution and costs, (3) local job creation, including the participation of local construction and consulting firms, (4) expenses for long-term maintenance, (5) deviations in travel times and vehicle operating costs (VOCs), and (6) impacts on local communities and their agricultural sectors. Overall, there is no clear difference between road projects that include Chinese funding and projects that do not include Chinese funding. This result is mostly attributed to the capacity of the Ethiopian government, which had well-defined standard planning procedures prior to the inclusion of Chinese investment. These findings imply that the costs and benefits of Chinese investment for African countries are not simply an outcome of Chinese national policy goals, but instead are an outcome of the capacity of the local African government.