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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Jan 12 2010 - 10:17:17 EST
<http://allafrica.com/ethiopia/> Ethiopia: Roads Authority Pays 23 Million
Br for a Kilometer
Wudineh Zenebe
12 January 2010
_____
The Ethiopian Roads Authority (ERA) awarded to YENCOMAD Construction Plc
what is said to be the most expensive road construction project in Ethiopia
at nearly 23 million Br for a kilometre of a two lane road.
The project is the third portion of the third lot in the
Modjo-Erer-Arerti-Gobensa road, and involves 33km from Yegdanber to Gobensa,
for which YENCOMAD will be paid 755,409,675 Br. The road is found between
East Shewa zone of Oromia and North Shewa zone of Amhara.
The cost of the construction was so high because of the difficult terrain in
the area said Ziad Woldegebriel, director general of ERA, when he signed the
contract with Yemru Nega, owner and manager of YENCOMAD. The signing took
place at ERA's head office at Mexico Square on Friday, January 8, 2010.
Fifteen local and international companies had bought the bid document with
only seven showing up to actually bid for the project, including Berhe
Hagos, Akir, China International Water and Electric Corporation, Sunshine
Construction, Sur Construction, and Orchid J.V formed by two Israeli
companies, Tidahr Excavation and Earth Moving.
Sur, Akir, Sunshine and Berhe Hagos requested nearly 841.9 million, 831.5
million, 820.7 million and 762.4 million Br, respectively. YENCOMAD won the
project after it offered a 13.75pc discount on its original offer. The
Chinese company and the Israeli joint venture were both disqualified during
the technical evaluation, leaving the competition to local companies.
YENCOMAD had already been awarded the contract for the first two lots of
this road construction in 2008, the Modjo-Ejere-Arerti and the
Arerti-Gobensa roads.
When the new segment was proposed, ERA's estimate of 871,637,337 Br had
caused a serious debate at the Authority's board chaired by Kassu Ilalla
(PhD), minister of Works and Urban Development, as too much money for 33km
of road.
This road, however, will also require three years to complete as it has
proven a challenge to deploy the necessary machinery to the uneven terrain.
The area is difficult for the construction of an alternative road while the
construction goes on the current gravel road.