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By Wudineh Zenebe
Posted to the web on March 1, 2010 |
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March 1, 2010 (ADDIS ABABA) — Kajo International Construction Plc is giving up on a road construction project it was awarded by the Ethiopian Roads Authority (ERA) due to financial constraints, although the project completion is already overdue by three years.
The ERA awarded the project to the company in December 2004. The project comprises of the construction of 1,065km of link roads that connect five regional towns as well as the Tana-Beles Multipurpose Project of the Ethiopian Electric Power Corporation (EEPCo), Dur Bete and Shanura in the West Gojam Zone in the Amhara Regional State. The construction, worth 128.9 million Br, was projected to be completed in 2007.
“The company was affected by financial trouble,” said an employee of the company close to the affair, “and it was not able to deploy on this project all the money that had been allocated for it.”
That forced the company to request the ERA to take back the project. An official of the authority has confirmed the request, but said that the manner of taking the project back is yet to be decided.
This project was the first for Kajo, which was established by the owners of the Kalifa Building on Cunningham street. In the meantime, the company tried to win more projects from the ERA but did not succeed because of its poor performance.
When its bid for the Adura-Gurbe road in the Gambella Regional State failed six months ago, it took its case to the Ethics and Anticorruption Commission, although nothing changed. That project was awarded to Satcon, while another bidder, Alemayehu Ketema, was also rejected because of poor performance on other projects.
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