Second phase of Bole Lemi Industry zone takes off

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WB to finance Kilinto Zone

The Ministry of Industry (MoI) signed an agreement worth 1.8 billion birr with 14 local contractors and one consultant, for the development of the second phase of Bole Lemi Industry Zone. According to the ministry, the development consists of the construction of industry sheds, clinic, exhibition centre, warehouse, and training facilities.   
Sisay Gemechu, state minister of investment and industry zone cluster of MoI, signing the contract on behalf of the ministry, said that the total industry park project includes ten sheds each laying on 11,000 meter square and another ten sheds each laying on 5,500 meter square.
On the first phase of this project, five industry sheds have already been constructed at Bole Lemi and four of them were recently transferred to foreign companies. Officials at the ministry told Capital that these companies are expected to commence production as soon as they complete setting up their machinery within the coming five months.  
The four companies that have already leased space from the five sheds are George Shoe, a Taiwanese prominent shoe maker that secured two 11,000 meter square sheds. “George Shoe has a long term plan. It has targeted to establish tannery at Mojo town and leather goods complex in Adama,” Sisay said. The other sheds are also transferred for other garment factories that came from South Korea, India and Pakistan
The state minister told Capital that the latest deal signed on Thursday October 31st includes the construction of eight sheds laying on 11,000 meters square and seven sheds laying on 5,500 meter square.
The construction of these 15 industry sheds will be completed in the coming six months and are expected to be transferred to interested manufacturers.
According to the Bole Lemi Industry Zone master plan, 60 percent from the total area of 156 hectare will be covered by industries and the rest will be used as a service area of the industry zone and waste treatment plant.
Experts at the Industry Zone Directorate of MoI say when the third phase of Bole Lemi Industrial zone is constructed, the total area covered will reach 342 hectare.
According to Sisay, the ministry has focused on the expansion of industry zones in the outskirt of Addis Ababa and three regional cities.
In a related development MoI announced that the World Bank agreed to fully finance the new Kilinto Industrial Zone located in the outskirts of Addis Ababa.
“We are undertaking the study for an industry zone development at Kilinto that will be financed by international financers. The study is expected to be completed in the coming four months,” Sisay said. Kilinto Industry Zone will rest on a plot of 186 hectare of land.
Meanwhile, according to the state minister, the draft study that aims to establish the first economic zone in Dire Dawa is expected to be ready in one month time.
In addition, the government is working with an Israeli based company, Eshet, to erect a new industry zone in Kombolcha.
The ministry also has an interest in constructing other industrial parks on a Joint Venture (JV) basis with other interested parties.   
Bole Lemi is the first industry facility that will be managed by the federal government