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The installation of the first traffic lights for
Adama (Nazareth) Town at three different locations,
which cost nearly one million Birr, will be competed
and delivered by February 22, 2010, Abdo Mohammed,
head of the Administration and Security Office told
Fortune.
The agreement for the installation of the lights was
signed between the city administration and Dan
Technocraft on December 15, 2008. Dan has been
installing the lights near Alem Hotel on the exit to
Dire Dawa, at the crossroads where the highway to
Wonji branches, and in the centre of the town near
the office of the Ethiopian Electric Power
Corporation (EEPCo). The project has, however,
suffered a long delay because of difficulty
obtaining foreign currency, according to
representatives of the two sides. It took seven
months to open a letter of credit, Asfaw Abera,
commercial assistant at Dan, said.
“The exchange rate of the Birr to the euro between
then and now has incurred us an extra cost of
260,000 Br,” Asfaw said.
The contract was signed when the euro was exchanged
for about 14 Br, according to Asfaw; that has now
gone up to over 18 Br.
Despite incurring the extra cost, Dan had to go
ahead with the original contract because not doing
so would bring more loss, Tadesse Yigezu, an expert
who follows the project from the Administration and
Security Office said.
The sites for the installation of the lights were
selected based on the intensity of the traffic the
intersections entertained on a daily basis, which
was confirmed by the Adama Traffic Office.
The payment will be effected in three phases. Upon
completion of the first phase, Dan will be paid 30pc
or 298,653 Br. 50pc or 497,755 Br and 20pc or
199,102 Br will subsequently be paid upon the
completion of the remaining phases.
The parts, which include controller parts,
underground cables, and polycarbonate signal heads
were imported from Italy, Asfaw said.
Various traffic signs have already been posted along
major roads in Adama; zebra signs will also be
painted soon as soon as the paint have been
procured, which is in process, Tadesse said.
Dan Technocraft and Dan Lift Technology will utilise
capitals of 22 million Br and 12 million Br
respectively and employ 400 workers. |
