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Turkish Company Secures Half Billion Birr Road Project
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- The new road will reduce the distance between Awash Arba and Debre Berhan by two-thirds -
Ray Ozaltin the board member of Atayol (left) and, Zaid Woldegabriel, ERA’s general director (right)
on the agreement signing ceremony of Dulecha to Awash Arba road project
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The Ethiopian Roads Authority (ERA) has given a Turkish company a 596 million Br contract for two road construction projects in the Amhara and Afar regional states.
The contract was signed with Atayol Asphalt Contracting, Construction Liquid Fuel Energy, Industry & Trade Company Co Inc, on Friday, February 14, 2014, at the ERA’s headquarters on Ras Abebe Aregay Street, near Mexico Square. Atayol’s website indicates that the company has completed 17 projects in Afghanistan to date, with three further projects ongoing. It shows no other projects elsewhere.
Its project in Ethiopia will be a 53km road from Dulecha to Awash Arba, both in Afar. This is part two of a 93km road, with the first part – from Ankober to Dulecha – covering the remaining 40km. This section of the road is yet to be awarded to a contractor.
Atayol’s project consists of the upgrading of 10kms of existing gravel road and the construction of 43kms of new asphalt road. The road will be 14m wide in urban areas and 10m wide in rural areas – both including shoulders.
The existing road has been difficult to use during the rainy season, said Samson Wondimu, the ERA’s communications director.
The road is also expected to link the Amhara and Afar regional states economically, over and above being an alternative route to travel to Djibouti, a statement from ERA said. The road could also boost tourism to Ankober, the ancient capital of the kingdom of Shoa, and later the capital of Ethiopia during the reign of Emperor Menelik.
Atayol’s payment will be split 60:40 between Birr and dollars.
Upon completion, the road will minimise the 380km long road from Awash Arba to Debre Berhan, through Addis Abeba, to 135kms.
Although the contract is expected to be completed within two and a half years, Ray Ozaltin – a board member of Atayol, who signed the project agreement representing the Company with Zaid Woldegabriel, ERA’s general director – promised that the Company will complete the road within a year and a half.
For Atayol, which has more than 10 years experience in the sector, with 17 road project deliveries in various parts of the world, the project is its first engagement in Ethiopia.
The International Developmental Association (IDA) – a wing of the World Bank (WB) – and the Ethiopian government will jointly finance the project. The project consultants will be DIWI Germany, a German firm, and the Engineer, Zewde Eskinder.
The road will have bridges, drainage pipes, traffic indicator signs and other structural constructions.
The Authority has worked on the rehabilitation of 728kms of trunk roads and has upgraded 5,023 trunk and link roads. It has also carried out the construction of 4,331kms of new link roads and maintained 4,700kms of asphalt and gravel roads over the past five years.
http://addisfortune.net/articles/turkish-company-secures-half-billion-birr-road-project/
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Decade Wait Over As Lamberet Bus Terminal Commences Operations
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- Construction of the terminal began in early 1998 and was originally scheduled to be completed in June 2005 -
The recently opened Lamberet Bus Terminal, located at Dessie Ber, in Yeka District.
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The Lamberet Bus Terminal, one of the five planned during the previous Dergue government, which were to be located at the city’s exit points, commenced operation on February 8, 2014, almost a decade after the originally planned time.
The construction of the terminal located at Dessie Ber, in Yeka District, was delayed for a decade because of the escalating price of construction materials. On the other hand, the political upheaval in the aftermath of the May 2005 national elections derailed the plan, since the station was turned into a camp for the Federal Police forces between May 2005 and January 2006. The police did not leave the premises after the unrest died down, leading to a further delay
The 55 long buses and 130 medium and small buses, which are deployed by the terminal on a daily basis will cross three regions-Amhara, Oromia and Tigray, with their final destination being Shire Endaselassie, a town in Tigray Region located 1,087 km north of Addis Abeba.
The Federal Transport Authority (FTA), which administers the terminal, has installed a checkpoint around Legedadi in Oromia Region located 25 km from Addis Abeba to intercept buses working outside of the terminal, says Abeleneh Agedew, head of Promotions & Public Relations at the Authority.
Ten staffers supervise daily deployment of buses, while 19 associations of buses are also working with the terminal staff in the deployment.
The terminal’s management has reserved some buses in case shortage occurs while serving 20,000 to 30,000 passengers each day, starting from 6:00am in the morning to 7:30pm till at night, according to Getahun Cheru, public transport deployment & control coordinator of management of the terminal.
Passengers will not be allowed entry into the terminal without tickets.
The terminal’s management is working closely with the newly resurrected Code Enforcement Services Office and the Addis Abeba Traffic Police to maintain the security of the terminal, according to Getahun.
“Controlling the terminal with only 10 security officers is difficult,” Getahun said. “The management has requested the Authority to assign more staff.”
The eight million Br terminal built by the Nega Mamo Construction Company with is equipped with spaces for passengers awaiting buses, access for the for the disabled, baggage trolleys and toilets for passengers.
Construction of the terminal began in early 1998 and was originally scheduled to be completed in June 2005. The Authority received the terminal on December 9, 2013 from the contractor.
As a means of protecting against theft, the terminal requires that passengers must receive tags after their baggage are weighted, says Wondyirad Worqu, a security officer.
Some passengers approached by Fortune complained of the dearth of hotels with affordable prices near the terminal.
“While staying at nights, I have to sleep outside the terminal under the fences,” says Tekliye Habtegebriel a passenger, who came back from the Amhara Region on Wednesday, February 12, 2014. “This robs passengers of comfort and security.”
Although the management used to allow passengers to sleep inside the compound for a few days after the commencement of service, it decided to change this fearing dispute over responsibility in case property is stolen or lost.
“Since we are working with the District Administration on ways of engaging MSEs [Micro & Small-scale Enterprises] in the provision of restaurant and bedroom services, we hope to end passengers’ discomfort soon,” Getahun told Fortune.
For bus drivers like Dereje Hailu, however, the terminal stands out from several others as it allows them to leave buses in the terminal until the next morning while they are not travelling.
According to the Authority, there are 3,694 transport routes across the country. Of these, 139 are served by transport buses with more than 47 seats. There are 1,014 such buses operating on these routes, as well as 42 buses, labeled ‘special buses’ by the Authority from companies such as Selam Bus Line S.C and Sky Bus Transport System S.C.
http://addisfortune.net/articles/decade-wait-over-as-lamberet-bus-terminal-commences-operations/
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State-Owned Financial Institutions Announce Six Months Profit Bonanza
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Sintayehu W.Mikael (PhD), left, director general of the Public Financial Institutions Supervising Agency with the Agency’s Public Relations of Gebre Erkalo.
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The four state-owned financial giants – the Commercial Bank of Ethiopia (CBE), Development Bank of Ethiopia (DBE), Construction & Business Bank (CBB), and the Ethiopian Insurance Corporation (EIC) – together amassed a profit of 5.6 billion Br during the first six months of the 2013/14 fiscal year.
The amount, which is 98.4pc of the planned profit, has surpassed last year’s figure for the same period by 29.4pc, according to a statement released by the Public Financial Institutions Supervising Agency.
The CBE reported gaining 4.6 billion Br out of its plan for a profit of five billion Birr. It accounted for 85pc of the total profit by the three state banks.
During the six months, the DBE planned for a 389.7 million Br profit, but surpassed it by 94.3pc. The bank gained 757.2 million Br profit. The reason is an increase in interest income and non-performing loans.
The CBB amassed 61.6 million Br in profit, while planning to get 60.7 million Br. The profit is 101.5pc compared to the plan. The revenue came from income from commission, interest and service fee.
The cumulative loan registered by the state financial institutions has reached a total of 239.5 billion Br by the end of the reporting period, the report said, showing an improvement of 48.6 billion Br from the same period a year ago.
The insurance corporation, on the other hand, projected a profit of 271.5 million Br for the same period, but gained only 160.8 million Br, achieving only 59.2pc of the plan. The report attributed this to the high provision expense for doubtful loans.
EIC’s premium collection, given for the first quarter of the fiscal year, amounted to 901 million Br, almost 63pc of the planned 1.4 billion Br. The Corporation has paid 262.7 million Br in compensation and commission, 10.5 million less than the previous year.
There was a plan to obtain 3.1 billion dollars worth of foreign exchange through export and remittance, of which the three banks achieved 2.4 billion dollars. This performance was also lower by nearly 22pc than the 3.1 billion dollars collected during the same time a year ago.
The CBE accounted for 2.3 billion dollars of the total collection, while the DBE and CBB account for a 0.04 dollars and 0.06 billion dollars, respectively. Both export and remittance decline have accounted for the lower performance, the report said.
A lot of the remittances sent to Ethiopia flow through back channels, according to the World Bank (WB) and, remittance has averaged 1.3pc of the gross domestic product (GDP) over the last 30 years. Between 1977 and 2003, remittance flows have steadily grown from four million dollars to 47 million dollars a year. After this, the growth climbed sharply towards 172 million dollars and 300 million dollars, in the years 2007 and 2010, respectively.
The CBE remains the dominant operator in the sector, having a total of 780 branches, 85 of which were opened over the past six months. CBB follows with 105 branches.
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Crown Plaza Hotel Coming to Ethiopia with IFC Support
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- The hotel will be the fourth of an international standard in Addis Abeba, with a fifth, Marriott, also expected soon -
The area on which the 11-storey hotel is being constructed in Lideta District At the site of the old Etfruit facility.
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The World Bank Group’s International Financial Corporation (IFC) is considering an investment of 19 million dollars for the completion of an international standard hotel in Lideta District. The total cost could add up to as much as 37 million dollars.
If the investment materialises, it will be concluded with Tsemex Global Enterprise Plc and its subsidiary, Tsemex Hotels and Business Plc, both owned by Rezene Ayalew, a local business man, and his children. The request for investment was made by Tsemex’s owners, who have already erected the structure of the 11-storey building in Lideta at the site of the old Etfruit facility, a source close to the business said.
The IFC says that the purpose of its “investment is to help to address the shortage of hotel rooms of an international standard in the capital city, Addis Abeba”. The two sides are working on the deal with the understanding that the hotel will be managed by the International Hotels Group (IHG) and be branded Crown Plaza Addis.
If it works out, Crown Plaza could be the fourth international brand hotel in Ethiopia, after the Hilton, Sheraton and Radison Blu. Sunshine Construction also has a deal with Marriott, which is yet to bring to service the hotel that goes by that name.
The IFC’s experts have travelled from Washington five times, the source said, to determine if the loan should be granted. If the IFC decides to make the loan, Tsemex Hotels and IHG simply need to sign a deal to finalise the full management contract, the source said. This could happen sometime in March. The IFC could make its final decision known on March 17, 2014, according to its website.
The IFC says that the expected development impact of the investment includes providing a modern business infrastructure, migrating best practice, creating employment (for 315 people) and offering business opportunities for local suppliers – “particularly in the areas of food & beverage supply and the provision of services (for example, transportation, security services)”.
As part of the deal, the IFC will not only offer long term financing, but will also “help to raise additional debt financing for the Project; advise the Company on sustainable business and E&S (environmental and social) practices specific to the property development and hospitality business and avail to the Project its experience in financing hotel projects, particularly in Sub-Saharan Africa”.
The IFC had a deal in 2009 with the Ethiopian Commodity Exchange (ECX) to increase loans to Ethiopia’s agricultural producers. That agreement created access for the warehouse collateral mode of financing.
The following year, it signed a risk sharing agreement with the Nib International Bank (NIB) to enhance the bank’s lending capacity to Ethiopian coffee farmer cooperatives. That agreement enabled the Bank to increase the scale of its lending to 70 farmer cooperatives during the 2010/11 fiscal year, extending 200 million Br in loans on the strength of a 10 million dollars guarantee from the IFC for the risk the programme involved.
http://addisfortune.net/articles/crown-plaza-hotel-coming-to-ethiopia-with-ifc-support/
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Large Italian Delegation Expected for Trade Fair
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- Italian deputy minister cancels trip because of political shake-up, but scheduled meetings will go ahead as planned -
Carlo Calenda
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A delegation of 50 Italian companies are arriving in Addis Abeba, with the head of the Italian Trade Agency, to participate in the 18th Addis Chamber International Trade Fair.
The Italian Deputy Minister for Economic Development, Carlo Calenda, was scheduled to lead the delegation, but his trip has been cancelled following the resignation of the Italian Prime Minister Enrico Letta, on Friday February 14, 2014.
Despite the deputy minister’s absence, however, the Italian delegation will meet with the Ethiopian Chamber of Commerce & Sectoral Association and the Ethiopian Investment Agency, said Matteo Bianca, first secretary and head of the Economic & Commercial Office at the Italian embassy in Addis Abeba.
The visit, organised by the embassy, is the culmination of years of high level talks on economic cooperation between Italy and Ethiopia, Pianca said.
The Trade Fair, which is organised by the Addis Abeba Chamber of Commerce & Sectral Associations (AACCSA), will take place from February 20 to 26 at the Addis Abeba Exhibition & Market Development Enterprise (AAEME), located near Meskel Square.
The AACCSA is expecting at least 122 international companies from 18 countries, including Italy, Kenya, South Africa and the Netherlands, as well as 60 local companies.
“The trade fair will have business to business discussions, a symposium and an exhibition of products and services from different sectors,” said Gashaw Abate, manager of Trade Fairs at the Chamber.
The Chamber expects between 4,000 to 6,000 visitors each day, he said.
“The aim of the trade fair is to facilitate technology and experience transfer” said Gashaw.
The chamber, Gashaw said, has planned a dinner, on Friday February 21, at the Hilton for the Italian visitors.
http://addisfortune.net/articles/large-italian-delegation-expected-for-trade-fair/
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Israel’s agriculture, rural development Minister to Visit Ethiopia
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Israel’s Agriculture and Rural Development Minister, Yair Shamir, is scheduled to pay an official visit to Ethiopia, Ghana and Nigeria.
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He will first go to Nigeria, and then to Ghana beginning March 2 to 4 after which he will finally proceed to Ethiopia.
The Public Diplomacy Coordinator, Embassy of Israel, Mina Okuru, in a statement copied to the GNA said Minister Shamir will be accompanied by a business delegation of Israel’s leading companies in agriculture, irrigation, poultry, fisheries, agro chemicals and large scale agriculture project integrators who are expected to feature in a business seminar and other meetings.
Minister Shamir, who is the son of former Israeli Prime Minister, Yitzhak Shamir, is a former military pilot and a member of the Israeli Parliament. (gbcghana.com)
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Related news: http://www.icl-group.com/newsevents-pressreleases/Article/74f5f969-718e-48a1-93a7-4f5e912b06a7.aspx
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Some five enterprises attract buyers
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Some five of the 11 public enterprises put up for bid attracted buyers, the Ethiopian Privatization and Public Enterprises Supervising Agency (PPESA).
Agency Deputy Public Relations Head, Assebe Kebede, told WIC Ethiopian Pharmaceuticals Manufacturing Factory (EPHARM), Kombolcha Textile Share Company, Bekelch Transport Share Company, Hamaresa Edible Oil Share Company were the enterprises that attracted buyers.
The other state enterprises that did not attract interested bidders were Transport Construction Design S.C, Agricultural Mechanization Service Enterprise, Woira Transport S.C, Bahir Dar Textile S.C, Artistic Printing Enterprise and Ethiopian Mineral Development S.C, he said.
According to Assebe, the agency intends to sell the enterprises in full private ownership.
http://www.waltainfo.com/index.php/explore/12330-some-five-enterprises-attract-buyers
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Ministry working to build capacity of teachers
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The Ministry of Education (MoE) said efforts are underway to build capacity and competency of teachers so as to maintain education quality.
Communication Affairs Directorate Director at MoE, Desalegn Samuel, told WIC that the ministry is implementing various programs that enable to improve knowledge and skills of teachers at primary and secondary schools.
Teachers are receiving on-job short and long-term trainings. Similar trainings provided for teachers in the past have brought about encouraging changes in building their capacity.
With a view to ensuring education quality, efforts are also underway to provide certification of occupational competence for teachers, Desalegn indicated.
According to director, over 90 per cent of the teachers at government’s primary schools of Ethiopia are diploma holders.
http://www.waltainfo.com/index.php/explore/12331-ministry-working-to-build-capacity-of-teachers-
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Africa Oil to complete 20 wells in Ethiopia, Kenya in 2014
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Africa Oil Corp. (CVE:AOI), a Canadian oil exploration company with assets in Eastern Africa, rose to the highest in nearly two weeks after saying it will complete 20 exploration and appraisal wells in Kenya and Ethiopia this year.
Africa Oil rose 2 percent to C$8.31 at 2:32 p.m. in Toronto, after reaching C$8.54, the highest intraday price since Jan. 29.
The Vancouver-based company said in a statement today that its 2014 exploration and appraisal program has three objectives: to appraise the existing key discoveries, to drill out the remaining prospects in the South Lokichar basin, and to open at least one of the four new basins being tested along trend.
Africa Oil said it currently has seven rigs running and after releasing one in mid-year, it will have six rigs running full time through the remainder of the year.
“This fully funded program should continue to deliver high potential upside value for shareholders through this year and beyond,” Chief Executive Officer Keith Hill said in the statement. (proactiveinvestors.com)
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Ethiopia to start Mobile Financial Service
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Ethiopia is embarking on the development of Mobile Financial Service (MFS), stated Debretsion Gebremichael; Minister of Communication Information Technology and Finance and Economy Cluster Head with the rank of Deputy Prime Minister.
A conference was organized on Mobile Financial Services on Thursday February 13th entitled “Catalyzing Transformation through Technology: How Mobile Financial Services Contribute to the Growth of Ethiopia.”
The conference explored the potential of Mobile Financial Services to drive transformation in the country’s financial sector. It was stated that the MFS can enable the rural population to improve their lives while supporting the Growth and Transformation Plan (GTP) through increased savings, agricultural investment and productivity as well as stronger rural institutions and markets.
“MFS has the power to enable the millions of rural citizens to enter the formal economy. These people need to save and borrow resources to build assets, buy and sell to engage in productive activities and send and receive money to reduce vulnerability. All of this requires they have access to the financial sector,” Debretsion stated.
There are currently over 90 million Ethiopians dispersed across 1.2 million square kilometers of land, 80 percent of which are living in the rural areas. Financial institutions have not been able to reach a majority of those people with the back branch to population ration still at 1 to 82,000.
“Clearly the need to find alternative ways of reaching and serving the population is required. While the penetration of mobile phones among the population continues to grow in significant numbers year on year, the government believes that it is possible to take advantage of that technological infrastructure and technology which now lies in the hands of citizens, to deliver financial services,” Debretsion said.
Parallel to the conference was a closed meeting held where decision makers from the office of the Prime Minister, Ministry of Communication Information Technology, National Bank of Ethiopia, Ministry of Finance and Economic Development and Ministry of Agriculture were present.
The main discussion at the closed meeting was said to be what Mobile Financial Service means in a policy context and what concrete steps and actions should be taken by the government to achieve the full economic potential of MFS.
“Achieving this goal, however, is still complex. It requires that we study the vast body of knowledge and evidence from the global community’ successes and challenges in similar endeavors. It requires that we understand our own strengths and remaining challenges,” Debretsion said.
He also stated that the meetings were not just about determining best practices but also what best fit in an Ethiopian context.
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Filed under: Ag Related Tagged: Addis Ababa, Agriculture, Economic growth, Ethiopia, Ethiopian government, Fertilizer, Investment, Potash, Sub-Saharan Africa, tag1
