The Ethiopian Roads Authority (ERA) awarded eight road projects to six contractors at a cost of over 6.4 billion birr.
Two local companies, Fal General Contractor and Yotek Construction Plc have secured two projects each as they signed contracts on Thursday January 12.
According to the contract, Fal has been hired to construct the first part of the Babille-Feeq asphalt road project and the Hida-Yalon gravel road project.
The agreement indicates that Fal will construct the 36km asphalt that will commence at Babille town of Oromia to Feeq town in Somalia region.
The company awarded the project at the cost 408.5 million birr. The 3.81km gravel road that will be worked on in Afar region was also awarded to Fal, which is a familiar contractor of ERA.
Even though the road covers a short distance and is constructed on gravel it will still consume 105.5 million birr.
According to Samson Wondimu, public relations head of ERA, the terrain of the area is the reason for the high cost of the road.
Yotek Construction Plc, which is a new contractor to the federal roads authority but is known for constructing buildings, has also been awarded the two remaining sections of the Babille-Feeq road project.
According to the agreement, Yotek will construct the 30km second part and 27km final part of the Babille-Feeq asphalt road projects at a cost of 451 million birr and 401 million birr respectively.
The project cost will be covered from public coffer. Three of the roads will be finished in three years. The 3.8km gravel road will be completed in 18 months. The other local company Enyi Construction will construct part two of the Assosa-Daleti-Baruda asphalt road. The 69km road that is located in Benshangul Gumuz region will cost 731.6 million birr and will take 36 months to finish.
The other project that will be carried out by the Chinese company is the first section of Iteya-Robe-Seru located in Oromia region.
The China Railway No 3 will construct 75.6km of this asphalt road project at a cost of 1.32 billion birr.
The first section the of Afdera-Eirebti junction- Kilo Meter 48 is 79km and will be constructed by China Wuyi Plc, which is one of the two foreign companies included in the latest project contract.
China Wuyi Plc has been worked on road projects in the country on the sub contract level, but the current award is the first project that will be carried out independently. The road is on the way to the popular active basaltic shield volcano, Erta Ale. It will cost 1.4 billion birr. The statement that ERA sent to Capital indicated that the project will be divided into a rigid pavement and double surface treatment type of roads.
The continuation of this project is the Kilo Meter 48- Erta Ale junction-Ahmed Lela 55.8km road that will be constructed by the state owned Defense Construction Enterprise. The project will consume 1.7 billion birr. The Afar project is expected to bring more tourists to the Erta Ale volcano and to expand potash investment in the area.
The entire projects’ cost will be covered from the public treasury.