Construction firm accused of 3 million birr failure to complete project


The Ethiopian Electric Power Corporation (EEPCo) has filed papers with the Federal High Court against Jambo Construction PLC, accusing it of failing to complete a 13 million birr project to build a new regional office in Asossa.
EEPCo signed a contract with Jambo in August 2009 and paid a 2.7 million birr advance. The construction firm agreed that the project would be complete within 240 days, but EEPCo claims Jambo failed to meet this agreement.
Jambo was set up in 1997 as Selamawait General Construction, changing its name in 1998. It works on roads, water towers and building construction.
EEPCo claims the regional office was due to be complete by April 2010, but Jambo failed to meet this target. EEPCo says it discussed this with Jambo several times, urging the company to finish the project on time.
“This made us not serve our responsibility,” said a spokesperson for EEPCo.
According to Construction Ministry legislation, if a contractor fails to complete construction as agreed, it is under obligation to pay 10% damages. EEPCo claims this amounts to be 1.3 million birr, which is 10% of the total contract value. It is also claiming 1.67 million birr as reimbursement from the advance it paid to Jambo.
In addition, the corporation is claiming nine percent payments from the company as per the Civil code, because the defendant failed to complete the construction.
Ordering Jambo Construction to issue a statement of defence, judge Hussien Yimer scheduled the case for 10th October.