UAE investors in talks to buy Ethiopia's Ghion Hotel
By Muluken Yewondwossen
ADDIS ABABA (Capital) — The negotiations taking place between two foreign investors who had approached the Privatization and Public Enterprise Supervision Agency (PPESA) for the joint management of the largest hotel, Ghion, did not get the expected outcome.
The agency board has been negotiating with the two parties from the United Arab Emirates and Nigeria on several occasions during the past budget year. However, this has ended without finalization.
Mahamed Nur, vice head of PPESA, told Capital that the financial crisis and the declining global oil price have influenced negotiations with international investors.
Over the last few years, the agency has examined different international companies for the joint venture to manage the hotel. They have still not reached a final agreement on the matter.
The government has planned to improve the services of the Ghion Hotel through working with other interested investors. It therefore invited companies to bid in a process beginning several years ago. Following the failure of the negotiation, it floated international bids for the hotel including other enterprises that are managed by the government for joint managements. Other branches of Ghion hotels located in historical areas of northern Ethiopia have already been transferred to private investors, starting from last year.
The other facilities that PPESA has planned to manage jointly are Gibe, Abebo, Hunte and Erer Gota Agriculture plantations; Bebeka, Tepi, and Arbagugu coffee plantations; Sodere Resort Hotel; Afdiota Soda Ash and the rubber tree development project. The government has shown its interest to develop rubber vastly with the help of other companies. The project study was finalized a year ago but there is no visible implementation because of the lack of interested investors. The bid will close after two weeks.