10 June 2018

Ethiopia: Authority Awards 13b Br Road Projects

Out of the nine road projects the Ethiopian Roads Authority (ERA) awarded to eight companies late last week, a Chinese firm made the highest offer to construct a 68.8Km alternative road for Limalimo.

Beijing Urban Construction Group Co. Ltd, a company founded in 1993 in Beijing offered 31 million Br a kilometre to construct the road that extends from Debarqe to Zariema, in Amhara Regional State. The company is new to Ethiopia, as it only received another project three weeks ago through fund from African the Development Bank (AfDB).

On the same date, Beijing won the right for the deal, ERA awarded nine projects, with a total of 749km length and worth 13.3 billion Br, to four Chinese and four local companies. The projects consume 30pc of the Authority's annual budget. The agreement was signed between Araya Girmay, director general of ERA and the managers of the companies at the ERA premises around Ras Abebe Aregay Street.

China Communications Construction Company Ltd. (CCCC), CGCOG Group Co. Ltd and China Railway 21st Bureau Group Co. Ltd are the other companies that were awarded by the ERA. Afro-Tsion Construction Plc, a joint venture of Powercon Construction Plc and Tesfaye Legesse Construction Plc, Akir Construction Plc and Sunshine Construction Plc are the other four local companies.

One of the Chinese companies, CCCC, won two projects in the Somali Regional State. CCCC also made the least offer among the nine projects to construct a 135Km road in Somali Regional State. The company offered 11.3 billion Br for a kilometre. It was also awarded to construct 102Km for 15.2 million Br for a kilometre.

The joint venture of the two local companies, Powercon and Tesfaye Legesse, made the second highest offer to construct a 50Km road in the Amhara Regional state with 23.1 million Br per kilometre. China Railway made the third highest offer to construct a road in the Southern Regional State. The company has offered 20.4 million Br a kilometre to build a 76km road.

Sunshine Construction was awarded to construct a road in the Amhara Regional State that has 74.3Km. Sunshine offered 18.8 million Br a kilometre to construct the road. The other local firm, Akir won a 86km road project in the Benishangul Regional State with the least offer of 15.4 million Br to construct a kilometre.

Afro-Tsion will construct a 60.8 Km road in the Oromia Regional state. For this road, the company has offered 13.8 million Br a kilometre. CGCOC Group Co.Ltd. was also awarded to construct 97.5Km in Oromia Regional State and offered 18.1 million Br for a kilometre of the road.

"We have checked the performances of the Chinese companies through the Embassy of China," said Firew Bekele, Engineering Procurement officer and team leader with ERA, which was re-established in 1978.

ERA, which is processing bid for 50 road projects, covering 3,000km, has constructed and maintained 7,910Km roads during the past 10-month. The achievement is 99pc of target.

During the signing ceremony, Araya calls regional states to collaborate in order to avoid hassles related to relocation of residents and businesses in the area of the nine road projects.

"Problems with compensation and relocation are inevitable," Araya said. "But, all have to be resolved, not to cause delays."

Ethiopia

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