One year after having taken back the Abule Basuma Lodge from Iacona Touring Plc, the Confederation of Ethiopian Trade Union (CETU) has now received four interested applicants in response to the tender it issued to lease the Lodge, located in the Oromia Region, 212Km southeast of Addis Abeba.

According to CETU sources, although nine interested parties had bought tender documents, only four participated. Of these interested participants, two partook as companies: Rendezvous Hotels Plc and Queen of Sheba Tour and Travel Plc; and two as individuals: Abebe Tadesse and Bahiru Alemu sources told Fortune.

The Lodge, which is situated on the banks of Lake Langano, lies on 416,000sqm of land. Since CETU believed that the lodge needed a modern and stronger management, it decided to lease the land to Iacona Touring in 2003, for 10,000 Br a month.

During Iacona Touring’s leasing period, the Company made renovations to the 72-bedroom Lodge, raising its standards from its original 1989 construction.

According to the three-year contract signed between the two parties, Iacona was to make a first payment of 20pc of the overall 360,000 Br, which it did.

When it came to the rest of the payments however, Iacona could not deliver so CETU took the Company to court. In September 2005, the Federal High Court ruled a 653,730 Br payment from Iacona to CETU, which is currently being appealed.

The Chief Executive Committee of CETU directed the Confederation to run the lodge for two months so that it would not have to be closed down. This decision lasted until three weeks ago when the tender was issued.

The prices offered by the four applicants range in prices from 20,000 Br to 36,000 Br in monthly payments for the Lodge, with Queen of Sheba Tour and Travel Plc offering the highest price.

Queen of Sheba Tours leased Seven Olives Hotel in Lalibela in June 2006 from the Ethiopian Orthodox Church for 25,104 Br per month. This Hotel was founded by Princess Hirut Desta, the grand daughter of Emperor Haile Selassie on 12,000sqm. The Company also has hotels in Addis Abeba, and  Geranta near Axum.

CETU needs a lot from Abule Basuma, which is one of its highest income generating enterprises. According to sources, the Confederation had not paid tax to the Oromia Region Trade and Industry Office and as a result had been charged 2.08 million Br in back taxes.

The case went to court with a ruling in favour of the Oromia Regional State. CETU appealed to the Regional State Presedant and as a result, the Confederation was exempted of 1.1 million Br and was directed to pay off 483,472 Br of its debt for six years in addition to its annual taxes.

Sources disclosed that the Confederation believes that since the standard of the Lodge was improved during the Iacona management, it hopes to make a higher return on its property than previously.