CGCOC GROUP, a Chinese construction company, has won a bid to build the first phase of the Addis-Africa International Convention and Exhibition Center S.C. (AAICEC).
According to information that Capital obtained from AAICEC sources the first phase will take around three years to complete and cost over a billion birr.
This part of the construction process will include a conference hall, two exhibition centers, an amphitheater and facilities for restaurants and business centers.
According to the sources the Chinese state owned company will soon officially sign the construction deal.
This phase of the construction was expected to begin in 2015, but there was not enough money from floating shares to begin the project.
This is the second bid issued for the project. The first time there was not a suitably experienced, qualified contractor who fit the budget required. A search was conducted locally and internationally and ten local and international contractors participated in the bid, including Afro Tsion and Teklebirhan Construction.
The 11,000sqm center will consume three billion birr. The construction will take place in three phases.
When the entire project is completed the center will have four large exhibition pavilions equipped with state-of-the-art venue facilities.
During the second phase four pavilions and the finishing work for the first phase will be completed. During the last phase a 4-star hotel and a mall containing shops and gymnasiums will be built.
During the first round sale over 300,000 shares were floated, and were sold at a value of 1,000 birr. Out of the capital generated, over 740 million birr has been raised.
The project originated with the Addis Ababa Chamber of Commerce and Sectorial Association, as a way to attract investment and business into the country. It was incorporated as a share company in 2013 with 20 founding shareholders.
According to AAICEC when work on the first phase begins it will increase share sales. A majority of the shares are owned by Addis Ababa City Administration, which is interested in the project, Ethio-South Investment Share Company, the Addis Ababa Chamber of Commerce, as well as the Bank of Abyssinia also hold significant shares.