The Ethiopian Roads Authority (ERA) has awarded eight road contracts worth 6.4 billion Br to four local and two foreign contractors. The roads will cover 372km across four regional states.
The largest portion of the award went to Defense Construction Enterprise. The Enterprise signed a 1.7 billion Br deal to construct a 54.8 km asphalt road in Afar regional state which extends from Ereta Ale to Ahmed Ale.
The project is the most expensive of the eight, costing 31 million Br per kilometer.
China Wyi Plc won a contract for a road connecting Afdera with Ert Ale. out of the total length, 48 km will be an asphalt concrete and the rest will be just asphalt. The company will be paid 17 million Br per kilo meter.
This is the second biggest contract for China Wyi within the past few months. Just earlier this year, the company was awarded a 1.2 billion Br project to construct Zemen Bank’s Headquarters. It has been three years since China Wyi entered the Ethiopian market.
The locations of the two projects will connect are known for their tourist attractions, like the Erta Ale active volcanic sites. Moreover, it will also give access to Potash mining sites in the Dallol depression on their way to ports.
“We know the project will be challenging but given our experience in the region we will overcome the challenges,” siad Woldaye Berhe, CEO of Defense Enterprise, speaking at the signing ceremony.
The Enterprise manages more than 30 road and building construction projects across the country.
These two roads will have between 10m 14m wide lanes in rural areas and towns, respectively.
China Railway No.3 Engineering Group Ltd has signed the contract to construct a 75 Km asphalt road connecting roads between Burea, Lencha, Gubayaa and Bale Robe, in Oromia Regional state. The road was planned to facilitate agricultural commodity exchange between the towns and their principal markets and will cost 17.3 million Br. China Railway has been an active player in Ethiopia’s construction industry for the past decade.
YOTEC Construction Plc was awarded two contracts, both worth 852 million Br, to build a 57Km of roadway extending from Bablea to Fika, in Oromia regional state. YOTEC will share the construction with FAL General Contractor Plc, which will build a 36km stretch of the road for 408 million Br. When finished, the road will connect Oromia and Somali regional states.
In addition to this, FAL will construct a 3.8km gravel road in Afar region which will cost around 27 million Br per kilometer. The road extends from Hida to Yalon.
The eighth project is awarded to another local contractor, Enyi Construction Plc. The company will construct 69km of asphalt road from Assosa, capital of Benishangul Region, to Baroda. It will cost 10.5 million Br per kilometer and will connect six zones and weredas of the region.
The total cost of all eight projects will be financed by Ethiopian Government. All the projects are expected to be completed within 36 months, with the exception of the 3.8 km road contracted by FAL, which will take 18 months to complete.
Last year, the country’s total investment in road construction was 95 billion Br. This has contributed to push the country’s road network to 110,414km, a 10.9 pc rise from the previous year. In the same year, the Authority awarded 85 road projects to 55 local and five foreign companies.
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