Disappointed AACRA suspends local firms

The Addis Ababa City Roads Authority (AACRA) has suspended four construction firms from upcoming projects in the metropolis citing that the firms’ previous performance and capacity is below par. Prominent construction firms involved in several projects at the federal and city level in the past years, were among those suspended.
Fekadu Haile (Eng), Director General of AACRA, told Capital that the authority has suspended Satcon Construction PLC, Afro Tsion Constriction PLC, Homa Construction PLC and Ethio General Construction PLC.

“The contractors have been suspended from two new road construction project bids that were floated in the budget year,” he said.
Fekadu further explained that the construction firms have had projects in the city but their performance has been very weak.

“As per our performance measurements their actual achievement is below 75 percent, which is low based on our standards. They will not participate on any upcoming projects until they complete the projects they are currently handling,” the Director General explained.

Currently, the suspended construction firms have asphalt road projects in the city that have not been delivered on time.

“We take this measure to be a lesson for other contractors, who may not conduct their work as per the schedule,” Fekadu said.

According to AACRA, Satcon, a company with over 25 years of track record on federal road construction projects, has struggled in recent years to complete its two road projects in the capital on time. Satcon constructing is the 2.1km road project that links the two central points in the city, Teklehaiymanot Church around Merkato to Minilik Palace and the 5.8km road project located in the eastern parts of the city connecting Wendyrad/Kotebe to Goro via CMC Michael Church.

Ethio General and Homa have also registered weak performances on projects around condominium compounds. Ethio General is constructing 3.6km road at Gelan III, while Homa is engaged on the 2.6km asphalt project at the Kilinto condo site. According to AACRA, Afro Tsion is yet to deliver an overdue project at Filipose, which includes a large bridge with a 1.3km asphalt road.

Poor project management and delivery by local contractors is forcing the road authorities to award projects to foreign contractors. “The companies shall be able to participate on future projects, if they complete their projects,” the authority said.