Capital Ethiopia Newspaper

Roads Authority needs 20% more funding

The Ethiopian Roads Authority (ERA) is asking for billions of extra birr from its budget in order to meet its targets in the Growth and Transformation plan (GTP).
ERA officials have confirmed to Capital that the current budget of 81.1 billion birr for five years; will not be sufficient to meet the goals of the Road Sector Development Program (RSDP) IV.
According to the officials, ERA needs at least 18 billion birr or twenty percent more than their original budget to accomplish projects that have already began or are about to start shortly. 
“We have already informed all who need to know including the Prime Minister’s Bureau,” officials said.
According to the sources, the authority has received confirmation from higher government officials including the PM that more money is on the way although the exact amount is unknown. 
Sources say the total cost of the projects will be just over 100 billion birr as opposed to the 81 billion birr allocated. 
“This amount does not take into account the increased cost from inflation and the rise in the cost of materials,” sources stated.
Base costs are now thirty percent more than the original contract deals, ERA officials said.
The Ethiopian Roads Authority has received the biggest slice of the budget pie over the last few years. It also receives a larger supplemental budget than other sectors.
In the next five years the Authority plans to construct nearly one hundred thousand kilometres of new roads.
From the total 81.1 billion birr about 34.8 billion birr will be used to construct new link roads.
A major part of the remaining amount will go to upgrading and rehabilitating trunk and link roads.
According to the five year program ERA will construct 4,331Km of new roads. Most of the money will come from the government and external loans.
Based on this year’s data, there are now 8,300Km of paved roads and just over 14,000Km of gravel roads. In the last 14 years the country’s road network, which includes federal, regional and Woreda roads, has expanded to 54,000Km from just under 27,000.