The Ethiopian Roads Authority (ERA) has requested of the Ministry of Finance and Economic Development (MoFED) a 2.9 billion Br supplementary budget, a reliable source disclosed.

The ERA budget request was submitted to State Minister Mekonnen Manyazewal of the MoFED, who is the person responsible for budgetary issues after a the new Business Process Reengineering (BPR). He is also a board member of the ERA. Mekonnen has been trying to find even one billion Birr for the infrastructure institution, according to a top official at the MoFED who requested anonymity because of the issue’s sensitivity.

“The MoFED was willing to give the ERA more, but there is a financial shortage and a fear of fuelling inflation by releasing more money into the economy,” the official said.

The ERA requested 15.8 billion Br for the 2009/10 fiscal year, out of which 13.6 billion Br was to come from the government and the rest from loans and grants.

However, the government approved only 11.2 billion Br; nine billion Birr came from the government. Even at the reduced sum, the ERA had the largest budget allocation for the year. With this money the ERA planned to undertake 200 projects, including the construction of 25 new roads.

“We had to make advance payments for 15 new projects, and 11 projects that were completed needed finalisation of payment,” the official said.

One of the big projects managed by the ERA for this budget year is the construction of the Addis Abeba-Adama six lane expressway. This project, worth eight billion Birr, is being undertaken by the Chinese Construction and Communication Corporation (CCCC), and the ERA is looking for a way to make the payment of one billion Birr which is due to the CCCC.

“We do not know where we can get this huge sum,” said a budget expert at the MoFED. “We already finished the reserve budget.”

The ministry set aside 1.06 billion Br as a reserve; 750 million Br was allocated for salaries, 145 million Br for the National Electoral Board and 280 million Br for the Ethiopian Radio and Television Agency. The ministry also has plans to buy 200 vehicles for newly established government institutions, mainly new colleges and universities.

The MoFED might consider transferring money from other projects to the ERA, according to the expert at the MoFED.

By WUDINEH ZENEBE
SPECIAL TO FORTUNE