Nib Insurance to Retender for Long Awaited HQ


A decade ago, the Firm leased 1,400sqm of land from residents for the realisation of the headquarters




Nib Insurance is set to refloat a tender to hire a contractor for the construction of its long-awaited headquarters near Mega Building along Africa Avenue before the current month concludes. The Firm has already finished determining the terms of reference as a first move to announce the bid.

This is the second time that the Firm is floating a tender for its headquarters three weeks after the Federal Ethics & Anti-Corruption Commission (FEAC) lifted the suspension put on the bidding process of selecting contractors by the Firm, citing unclear points stated in the tender document.

The discouraging nature of the tender and the move of Nib to issue a distinct tender for the foundation and civil works of the construction were the major reason for the suspension by the Commission.

The Commission lifted the suspension after it directed the Firm to take corrective measures on the above points, according to a source at the FEAC.

“We have considered the points stated by the Commission in our new tender documents,” said Zufan Abebe, the recently elected chief executive officer (CEO) of the Firm.

Four months ago, the Firm was given a three-month period to select a contractor and start the construction of the headquarters. However, the suspension of the Commission forced Nib to cancel the first tender announced four months ago, which attracted 10 companies. Before the suspension, the bid was expected to be open on May 11, 2017.

Covering 1,400sqm, the Firm spent more than nine million Br to lease the land from residents decade ago. Furthermore, four years ago, Nib selected Duniya Consultant & Design Firm to design its headquarters, which is going to have a branch for its sister company, Nib International Bank.

“We have a plan to finish the headquarters in the next three years,” said Berhanu W. Giorgis (Eng.), board chairman of Nib.

This is not the first time that the Insurance Company has tried to construct a headquarters. In 2013, the Firm was in the process to build a 35-storey headquarters jointly with Nib International Bank.

However, a year later, a new directive set by the National Bank of Ethiopia (NBE) forbade any investment made beyond 10pc of total assets and led to the divorce of the sister companies, according to Zufan. Since then, the duo has started an effort to build their headquarters individually.

Located in front of the twin buildings of Awash International Bank, the construction of Nib Bank’s headquarters is currently underway on 3,682sqm of land, in the so-called financial district of the city. Nib contracted Jiangsu International Economic & Technical Limited for the construction of the headquarters ten months ago.

Nib Insurance is currently undertaking a seven-storey building construction project in Dire Dawa with a cost of 126 million Br. Demera Engineering & Construction is carrying out the project, and it is expected to be fully completed at the beginning of the next fiscal year.

Established with a paid up capital of 30 million Br, Nib currently has a capital of close to a quarter of a billion Birr. Last year, it earned a net profit of 42 million Br, showing a 25pc decline compared with the 2014/15 fiscal year.



By SAMSON BERHANE
FORTUNE STAFF WRITER

Published on Jul 10,2017 [ Vol 18 ,No 898]


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