Dashen Bank has awarded a 593 million Br contract to MIDROC- Ethiopia Construction PlC for finishing work on its headquarters on Thursday May 21, 2015, saving itself at least 200 million Br from offers that had been made during a tender.
The agreement signed between the new president of the Bank, Asfaw Alemu, and MIDROC Construction’s General Manager Abinet Gebremeskel, binds the contractor to finish the work in 18 months.
“We awarded the finishing work to MIDROC through negotiation as the bid we floated was not successful because of the expensive offer from the bidders, which included MIDROC, and Tekleberhan Ambaye Construction,” said Teka Asfaw, chairman of Dashen’s Board of Directors.
All of the bidders during the tender two years ago offered more than 800 million Br for the finishing work, which resulted in the cancellation of the result and the start of dealing with MIDROC Construction, as it was constructing the ground plus five annex building to the headquarters, according to Teka. The deal took 10 months with the change of management at MIDROC Construction and the recent change of the Board of Directors at Dashen.
Then the new management of MIDROC Construction and the new Board of Dashen took the discussion and came out with the agreement within three months that resulted in the signing of the agreement on May 21.
Dashen has also retained Zias Design International as consultant for the work for 13 million Br, to be paid in installments of 700,000 Br a month.
“The finishing will include the electromechanical works, completion of the annex building and construction management,” said Dereje Assefa, managing director of Zais.
Construction of the headquarters building is expected to consume 1.3 billion Br, Asfaw says.
Dashen will pay MIDROC Construction 20pc down payment to begin the work, Teka said.
“We were planning for the building to be completed for the 2oth anniversary of the Bank in January but that did not happen with the project taking six years,” said Teka during a press conference held at Sheraton Addis Hotel.
The headquarters will accommodate 780 workers that are currently working in different buildings.
Dashen Bank, one of the 16 private banks in the country, had registered a profit of 606.75 million Br for the fiscal year 2013/14, which is equal to the investment on the building of the headquarters.
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