USD 60 mln for Meskel Square-Bole Road project

November 8th, 2010 | by addis portal |

The Export-Import Bank of China, China Eximbank, has agreed to facilitate USD 60 million for the belated Meskel Square-Bole Road project in the shelves for the last several years, Fekade Haile, general manager of Addis Ababa City Roads Authority (AACRA), told The Reporter.

The bank has confirmed its readiness to provide the stated sum of finance for the 4.1km asphalt project incorporating three fly-over bridges and two road junctions, according to Fekade.

The Ministry of Finance and Economic Development (MoFED) and China’s Ministry of Commerce, which helped facilitate the soft loan, are wrapping up the deal, Fekade said. “We are now awaiting the go ahead from China’s Ministry of Commerce. We have almost concluded the deal.”

With China Eximbank involved in the awarding of the stylish road project, CRBC Addis, subsidiary of China Road and Bridge Corporation, is destined to become the contractor for the road project expected to cost in excess of USD 60 million.

Registered in Ethiopia as a share company, CRBC will undertake the project, according to Fekade. The project is expected to take one year after the ground breaking.

The Meskel Square-Bole Road project was previously awarded to Eniy Construction, a local firm, which offered to do the job for 390 million birr some three years ago. In the months following, however, AACRA, owner of the project, terminated the deal with the company as the contractor reportedly failed to execute the project according to schedule.

Being a lucrative contract, the project had even attracted the attention of the National Bank of Egypt, which tried to provide finance for the project so that it will be undertaken by Egyptian construction firm, Arab Contractors, according to informed sources.

The Meskel Square-Bole Road is 40m wide with three fly-overs around the localities known as Olympia, Wollo Sefer and Rwanda Embassy. There will be side roads along the three fly-over bridges.

China Eximbank was established in 1994. Fully owned by the Chinese government and under the direct leadership of the State Council, China Eximbank is a government policy bank enjoying the same international credit ratings as China’s sovereign ratings.

The Meskel Square-Bole Road project was previously awarded to Eniy Construction, a local firm, which offered to do the job for 390 million birr some three years ago. In the months following, however, AACRA, owner of the project, terminated the deal with the company as the contractor reportedly failed to execute the project according to schedule.

Being a lucrative contract, the project had even attracted the attention of the National Bank of Egypt, which tried to provide finance for the project so that it will be undertaken by Egyptian construction firm, Arab Contractors, according to informed sources.

The Meskel Square-Bole Road is 40m wide with three fly-overs around the localities known as Olympia, Wollo Sefer and Rwanda Embassy. There will be side roads along the three fly-over bridges.

China Eximbank was established in 1994. Fully owned by the Chinese government and under the direct leadership of the State Council, China Eximbank is a government policy bank enjoying the same international credit ratings as China’s sovereign ratings.

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