Capital Ethiopia Newspaper

ERA board will no longer approve road projects

The Ethiopian Roads Authority (ERA) Board of Directors will no longer be involved in approving road contractual agreements. The Authority’s Contract Awarding Committee from will instead oversee the contractor selection process for road projects.

A letter signed by Alemayehu Gujo, State Minister of Finance and Economic Cooperation (MoFEC), dated Monday March 21, stated that the Board of Directors of ERA will not be involved in approving contract agreements of road projects, as ‘it is not the mandate of the Board of Directors.’

Samson Wondimu, Public Relations Head of ERA, confirmed that the Authority received the letter but declined to give further details.

Established under Proclamation No. 80/1997, the powers and duties of the Board of ERA are to review policies, laws, short and long term plans as well as the Authority’s annual work program and budget as well as following up implementation and approving internal rules and directives guiding the organization’s performance. Accordingly, the General Manager of ERA will only hear complaints by companies participating in tenders of any road projects in country.

ERA is a major spender in the federal budget; this budget year alone the government has allocated 35 billion birr for the Authority, 24 billion of ERA’s budget is from the public treasury, while the rest is financed by international loans.

Despite an announcement from the government that some developmental projects will be suspended to prioritize support the drought affected, ERA insist that road projects planned for the current year will continue as planned, and that there have been no requests from the government to suspend road projects due to the current drought.