Capital Ethiopia Newspaper

ERA awards half a billion br project to corporation

The Ethiopian Road Authority (ERA) awarded the construction of Chancho- Derba- Becho road project to Ethiopian Road Construction Corporation, a company that split from ERA, last Friday. The 30 kilometer road will cost more than 553.4 million birr, which means 18.4 million birr per kilometer. 

The authority took the initiative to upgrade the gravel road to concrete asphalt after it realized the economic potential of the area. The area is known for hosting Derba Cement and other flower farms. The consultancy and supervision work will be carried out by Core Consulting and Engineering Private Limited Company. The project which is found off the main road from Addis Ababa to Goha Tsion, 38 kilometers north of Addis Ababa, is scheduled to be completed within two years.

ERA is implementing its Fourth Road Sector Development Project envisioning to construct linking roads, improve the quality of roads that have high traffic flow, and paving new roads that have high impact on the economic progress of the country.

The Ethiopian Roads Authority (ERA) has also secured 22 billion birr out of the 137.8 billion birr budgeted for the country for the 2012/13 fiscal year. Sources at the authority told Capital that 18 billion of the 22 billion birr will come from the government treasury, while the remaining will come from external loans and grants. This year’s budget for the authority is four billion birr more than the previous year.

In addition to securing the highest budget allocation every year, ERA also gets a higher supplementary budget than other offices. This year it received a three billion birr supplementary budget.

The authority is scheduled to receive 81.1 billion birr during the five year period of the Growth and Transformation Plan (GTP) to implement the Fourth Road Sector Development Program. However, the authority feels that the 81.1 billion birr is insufficient for its planned massive operation. Hence, the authority has already applied for an additional 20 billion birr for implementing projects embedded in the GTP; that consists constructing 4,331 kilometers of new roads.