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The Ministry of Industry (MoI) has signed part of a 1.2 billion birr civil works agreement, with 13 local contractors, for the construction of Bole Lemi Industrial Park.
The project that consists of five industrial hangar-like sheds, four office blocks and other relevant construction works at the park will be completed within three months of the signing day.
Tadesse Haile, State Minister of MoI, said at the signing ceremony held on Thursday November 15, 2012 at the ministry office, the industrial park will include over 30 local and foreign industries when it becomes operational.
According to the State Minister, the park will include garment and relevant industries. “South Korean investors have shown interest in becoming involved in the industrial sector of this park.” He said that local industries that are able to engage in the export oriented business can join the industrial park being constructed by the federal government.
The Ministry office selected these contractors based on their performance on other projects rather than through the usual bid process. “We selected these contractors without a bidding process due to the fact that the project has to be completed within a short period of time, and these contractors have good performance records on previous projects that they did for the government,” Tadesse said.
In the first phase of the civil work, which will cost 633 million birr, seven grade-one contractors and six other contractors that are graded from 3 to 6, will be involved in the construction.
On this project two 10,000 square meters and three 5,000 square meters industrial sheds will be constructed.
In a separate deal, the Chinese contractor CGCOC will undertake the site’s sanitation project. This company is already constructing the road to the industrial park.
Tadesse informed Capital that the second phase of the project will begin immediately following the completion of the first phase, which is expected to end in January of next year. The total area of the industrial zone is 156 hectares and this park will be the first to be managed by the federal government.
When this industrial park is fully operational it is expected to hold over 50,000 employees.
Other medium industrial zones have been established by a few regional states in the past few years, but their performance didn’t go according to plan. The State Minister said that the federal government is already undertaking a study to make these regional industrial zones successful. .
He said that his ministry also has an interest in constructing other industrial parks on a Joint Venture (JV) basis with other interested investors, but he said that the government have decided to undertake this and three other industrial zones before the end of the Growth and Transformation Plan (GTP), which will end in mid 2015.
“The other industrial zones that are expected to be constructed by the federal ministry in the coming two years are undergoing feasibility studies,” the State Minister said. Dire Dawa, Hawassa and Kombolcha will be the other locations for other industrial parks.
MoI has also received 243 hectares of land at the Kilinto area, Akaki Kality Sub City, and 1051 hectares from the Dire Dawa City Administration, Amhara, Tigray and Southern Nations Nationalities and Peoples’ (SNNP) regions.
According to the government’s plan, numerous industrial zones equipped with full facilities, including financial institutions and government offices, will be opened.
“We will give priority to industries that have a production chain or that strategically benefit the sector’s growth,” Melaku Taye, public relation head of MoI, recently told Capital.
According to the plan, private investors will come with their machines to start the production at the industrial zone, while the buildings and other facilities will be owned by the government.