The Daily Monitor (Addis Ababa)

Ethiopia: Govt to Award Addis-Adama Road Project to China Without Bid

Binyam Tamene

29 February 2008


Addis Abeba — A Chinese company will construct the Addis-Nazareth expressway with out having to compete in a bid, Minister of Works and Urban Development Dr. Kassu Ilala, said on Thursday amid speculations over who will be awarded the contract.

The minister made the remarks in a joint discussion with a high level delegation from China led by the Chinese minister of construction Wang Guangtao.

Kasu said the contract for the construction of the six-lane Express Way- the first of its kind, and the first toll road to be built- would automatically be granted to China with out having to compete in competitions.

"This project is a special offer to Chinese companies of choice to come with the necessary credit facilities and get the project without any international competition," the minister said "I do sincerely believe that the project will be monumental to the Chinese government and people if Chinese companies participate as suggested," minister Kassu added.

Leaving the express-way project aside, Kassu invited Chinese companies to engage in the manufacturing of construction materials in order to meet the new challenges of rapid development throughout the country in the construction industry "We feel there is a big market for all types of construction materials in the country," Dr. Kassu observed.

"Besides, with the smooth access to the neighboring countries and beyond the chances of the market to be expanded further, as a result of the Regional Economic Cooperation Agreements, is also high," he added.

The minister further noted Chinese companies can invest in equipment leasing business with fully equipped modern workshops backed by warehouse facilities for spare parts.

Dr. Kassu said Ethiopia has given infrastructure development a priority, where 70 percent of the infrastructure construction projects in Ethiopia are being carried out by the Chinese construction companies.

The visiting Chinese minister Wang Guangtao on his part said of his country's strong conviction to further step up its ties with Ethiopia.

He appreciated the support the Ethiopian government is providing to Chinese companies working in Ethiopia in the construction sector.

Guangtao expressed his government's desire to enhance the friendly cooperation between the two sisterly countries.

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