Ethiopia: CRBC takes over MIDROC’s 200mln road project
The Addis Ababa Roads Authority Thursday awarded the Megenagna-Ayat road construction project to the Chinese construction company, CRBC Addis Engineering. This project was snatched from MIDROC Construction, a company owned by Sheik Mohammed Hussein Alamoudi, after it failed to execute the work on other projects according to schedule. The one-way Megenagna-Ayat road is 8.2 km long.
Previously, CRBC constructed the right side of the road at a cost of 115 million birr and the company finalized the project end of last year. In 2008, MIDROC Construction won the tender put up by the authority to construct the left side of the road. Recently, the authority terminated the road construction project with MIDROC on the ground that the company delayed work on other projects.
Accordingly, the authority retender the project and three construction firms participated in the open bid. CRBC offered 224,055,813.14 birr, Saba-Tidhar Construction 245,726,093.50 and DMC Construction 281,903,053.60 birr. The least bidder, CRBC, was announced winner of the bid. CRBC has undertaken several road projects in Addis Ababa, including the multi million birr ring road project.
The Megnagna-Ayat road is 25 meter wide and 8.2 km long. Fekadu Haile, general manager of the Addis Ababa Roads Authority, and Mr Wen Ying Zheng, general manager of CRBC Addis Engineering, signed the project agreement at the authority’s head office.
“CRBC has proved its capability in other projects it previously undertook. Considering its experience and efficiency, we are confident that the company would successfully finalize the project,” Fekade said. The Chinese construction firms have dominated road construction projects in Ethiopia. Neither western companies nor local construction firms are able to beat the Chinese.
The Addis Ababa Roads Authority has terminated several road construction agreements with local construction companies. The authority snatched road projects from Berta, Eney and MIDROC. Fekade pointed out that the local contractors had financial problems, adding that the authority took appropriate measure on those who failed to execute the work.
“For instance Eny after we terminated the Bole road project, augmented its capacity and showed dramatic progress. On the other hand, MIDROC did not show any progress even after we revoked the agreement signed for the Megenagna-Ayat road.” Fekadu Said. “We could take further actions,” he added.
Currently, MIDROC has two ongoing road projects in Addis Ababa. At the moment, the authority is undertaking 15 road projects and is planning to launch eight new road projects next year.
- By Kaleyesus Bekele | The Reporter
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Gebeyehu
17 May 09 at 8:32 am
Local construction companies should learn from chinees company. Signing the contruct is not doing the work. If they sign they should fullfill the promise on time not in their convinient time. If they cannot do it, they should not sign the contract. The country is waiting for speed development in every sector. So I support the action of Addis Ababa road authority for the act of revoking the contract of local construction companies, at least they draw lesson for this action.
We want to see the immediate solution of road problems in the capital. Fikadu Haile go ahead with your action.
Gebeyehu from Ayat area.