Ethiopian Roads Authority inks 150 million USD contract with Korean firm Keanganam


By Derege Berhanu

ADDIS ABABA, Ethiopia- the Ethiopian Roads Authority on Wednesday Feb. 20 signed an agreement with the Korean firm Keanganam Enterprise Ltd. for the upgrading of two roads, the Jimma-Bonga Junction and the Bonga-Mizan Junction. Both contracts amount to 1.4 billion birr [~15.7 million USD].

The road projects are located in the Southern Nations, Nationalities and Peoples and the Oromia Regional states. The projects consist of upgrading the 220 kilometer stretch from gravel surfacing to asphalt concrete pavement, improving horizontal and vertical alignment, rehabilitating existing culverts and bridges, and constructing of new culverts and bridges.
The road project contract is expected to be completed within 34 months and will be funded through loans obtained from the African Development Fund and budget allocations from the Ethiopian government. According to ERA, the two projects were tendered under international competitive bidding, and as a result of the bidding process both contracts were awarded to Keangnam Enterprises Ltd.

The contact agreement was signed by Mr. Gellasso Bore, Deputy Director General of ERA and Mr. Cho Hyun-Seung, the Ethiopian branch office manager of Keangnam Enterprises Ltd.
During the contract signing ceremony, Mr. Gellasso Bore noted that the upgrading project would allow for easier access to markets for commercial crops like coffee.

Mr. Hyun - Seung said, “...putting our experience into practice and in order not to lose precious contract time, immediately after the opening of the tender amount for Jimma-Mizan and before the signing of the contract, we took the risk upon ourselves, and ordered more than 400 pieces of equipment. From these 400, more than 150 have been shipped to the site and have started the preliminary works.”

Keangnam Enterprises Ltd. started operations in Ethiopia in 1997, and its projects include the construction of the Bole International Airport and three road projects amounting to nearly 400 kilometers. Keangnam is currently constructing the Hossana-Soddo road project, (93 kms) the Ambo-Gedo road project (250 km), and the Azezo-Metema road project.