|
Having completed the first two phases of the Road
Sector Development Programme (RSDP) in June 2007,
the Ethiopian Roads Authority (ERA) launched the
third phase of the programme, which will last for
three years with a project cost of 35 billion Br.
Within the 10-year period of the programme a total
of 78,569Km of roads were constructed, rehabilitated
and maintained, of which 10,282Km are federal roads
and 10,523Km are newly constructed regional roads
while 57,764Km are community roads, it was reported
at an implementation assessment of the 10-year
accomplishment in the road sector and launching
conference of RSDP III at the Sheraton Addis on
September 24-25, 2007.
The total cost of the projects planned during the
same period amounted to 25.8 billion Br while the
total sum of money disbursed in the same period
amounted to 25.4 billion Br, 98.4pc of the planned
target.
First formulated in 1996 ERA, the programme was
designed to facilitate economic recovery through
restoration of essential road networks. After
discussions with the international donor community
the first five years of the programme was officially
launched in September 1997.
RSDP includes not only investment in physical
infrastructure and maintenance of existing and new
infrastructure, but also investment in institutional
strengthening and capacity building in order to
improve road sector management.
This third phase is an integral part of the major
programme, RSDP, which is designed in line with the
objective of the government's five-year programme
(Plan for Accelerated and Sustainable Development to
End Poverty [PASDEP] 2005/06-09/2010). Its main
objective, according to the Authority, is to
continue restoring and expanding Ethiopia's road
network.
Included in RSDP III are the rehabilitation of 483Km
of trunk roads, upgrading of 3,428Km of both trunk
and link roads, construction of 2,083Km of new roads
and periodic maintenance of 5,816Km of roads at the
federal level while construction of 5,730Km of rural
roads, periodic maintenance on 403Km of rural roads
and construction of 227,548Km of community roads is
envisaged at the regional level.
"We will achieve our target as the projects underway
are already in the course of implementation," Zaid
Woldegebriel, director general of ERA, told
Fortune. "ERA also has significantly upgraded
itself in design and project management capacity
which is a plus to its biggest achievement of
experience accumulation."
Of the projected budget, 29.7 billion Br will be
allocated for federal roads while 5.5 billion Br
goes to regional roads. Community road and urban
road projects also will secure one billion Birr and
100 million Br respectively.
When ERA was established in 1951, the total road
network amounted to 6,400Km, which was mainly built
by the Italians during occupation. By 1997, the road
network had grown to 26,550Km, of which 3,708Km were
paved.
As a result of investments under RSDP I and II, the
current length of the network has reached 42,429Km,
of which 5,452Km (12.8pc) are paved and the
remaining 36,977Km (87.2pc) are unpaved.
Conference presenters also stressed that the impact
of the programme in reviving the capacity of the
domestic construction industry is encouraging.
Participation of local contractors and consultants
has increased to more than 65pc during RSDP II on
projects financed mostly by the government. However,
involvement of local firms on big construction
contracts is still marginal with contract values
averaging 273 million Br for the period of 1993 to
June 2007.
Local contractors however attach their insignificant
contribution in huge projects to the unattainable
criteria set by foreign financiers and lack of solid
capacity.
"We have come to understand that our capacity should
be upgraded," Yemru Nega, chairman of the
Contractors Association, told Fortune. "The
government should also support us in this regard."
Contractors bidding for projects funded by external
financiers are required to meet certain criteria,
which are considered to be unreasonably high for
local contractors to meet. It is a little over a
decade since local contractors began undertaking
projects and their annual turnover does not match
that of those international contractors whose
foreign experience is vast.
Yoshimichi Kawasumi, highway engineer for World Bank
financed projects in Ethiopia, said that local
contractors are encouraged to participate in
national competitive bidding. However, on
international competitive bidding donors are most
likely to choose foreign contractors with immense
experience and capacity.
"In large contracts the chances of picking domestic
contractors is limited, as they will be outshined by
foreign contractors with better experience, finance,
equipment and management capacity," Mr. Kawasumi
told Fortune.
During the first phase of RSDP, international
contractors have been the major implementers of
federal road rehabilitation, upgrading and
construction projects with 70pc of total contracts,
local contractors have taken 20pc and joint ventures
represent about 10pc of the total. Consequently, in
RSDP II, more emphasis has been given to further
enhancing the capacity of private domestic
contractors, sources at ERA disclosed to Fortune.
As a result, the participation of local contractors
is increasing; out of the 492 projects awarded from
1997 until June 2007, local firms took about 294
projects, 64pc consultancy service and 36pc in
construction. On the other hand, looking at the
value of local contractors, until June 2007, the
value of civil works given out to local firms is
eight billion Birr and 558 million Br in consultancy
services. However, while the involvement of local
contractors is increasing, contracts handled by
foreigners are more expensive and hence the
aggregate value is still higher.
"Foreign financiers abstain from awarding projects
to local contractors as the latter stretch out to
undertake more projects than they can handle despite
their lack of capital and experience," Zaid told
Fortune. "But the authority is relaxing the
strict criteria to encourage the growth of the
domestic construction industry and its
participation."
In spite of recent growth in the transportation
infrastructure, the road network in Ethiopia is one
of the least developed in Africa with a density of
38.6Km per 1,000 square kilometres compared to the
African average of over 50Km per 1,000 square
kilometres.
"We should all be proud in being part of this
imaginative RSDP programme," Kassu Illala, minister
of Works and Urban Development, told the
participants with pride upon concluding the two
day-conference. "But we are not yet satisfied when
we think of what is ahead of us."
|
