Melcon Construction Plc, a local construction firm, is to construct the nation's third most expensive road, costing 536 million Br, extending from Haile Garment to Jemo square.
The road, 60m wide and 4.52Km long, is part of the Haile Garment outer ring road expansion project which connects feeder roads with Huajan Industry Zone, one of the privately owned parks in the country.
Expected to be finalised within two years of commencement, the road will have pedestrian walkways, and accommodate between 100 and 120 wider pipelines for electric, telecom and waste drainage.
Costing the city's Administration 118.7 million Br a kilometre, it is the most expensive road project next to the Qality ring road interchange and Qality ring road to Qilinto projects costing 222.7 million Br, and 219.8 million Br cost a kilometre, respectively. Both projects were awarded to China Communications Construction Company (CCCC).
Melcon, founded 17 years ago and known for constructing the Yeka-Ayat and the Melka Jebdu-Dire Dawa road projects with a cost of 130 million Br and 63.5 million Br a kilometre, respectively, secured another 214 million Br project extending from Qera to Gofa.
The 30m wide road stretches over 2.14Km and will be completed in a year.
The agreement was inked by Habtamu Tegegn, director general of Addis Abeba City Roads Authority (AACRA) and Elias Teka, general manager of Melcon on December 27, 2017.
Along with Melcon's contract, four more road agreements with two companies, Hafcon Construction and IFH Engineering Plc, were signed.
The director general of the Authority signed the 540 million dollar deals with Henok Yayehyirad, general manager for Hafcon and Wang Yang, general manager for IFH.
These six roads have a combined length of 18Km with a budget of 1.27 billion Br.
Hafcon, established in 2007, has previously subcontracted Addis-Adama Expressway outer ring road extending from ICT Park to Akaki Bridge. Of the 540 million Br deal, it also secured a 191 million Br projects for two roads while the rest were awarded to IFH Engineering.
Hafcon will construct a 1.7Km road from Megenagna to the Ministry of Agriculture & Natural Resources and a 1.48Km one around Ayat -Meri Condominium site costing 84 million Br and 105 million Br, respectively.
IFH Engineering, established as CRBC Addis Engineering Plc, built the ring road as well as the Meskel Square to Bole Airport road. It will also undertake the construction of a 4.4Km road in the Bole-Ayat condominium site with 216 million Br and a 2.1Km CMC-Ayat ring road to Gurdshola-Summit for 118 million Br.
"Aside from linking the feeder roads, the projects will relieve the high traffic congestion in the areas," said Habtamu.
For Addisu Kassa, an expert with 17 years experience in the field of road construction, the cost of the projects is fair.
"Topography, the type of road and the construction materials determine the total cost," he said.
As of June 30, 2017, the city's road coverage has reached 22.16pc. From Addis Abeba's current fiscal year's budget of 35.4 billion Br, the Authority had the major share of 5.5 billion Br. Nonetheless, this has declined compared to 5.7 and 5.8 billion Br in the past two years.
The Authority, which will fund the project from its annual budget, is in the process of hiring consulting firms for the road projects.
"As soon as consulting firms are assigned, we will begin the project," Elias said.
Design of the third most expensive road construction project extending from Haile Garment to Jemo square.