Friday, June 2, 2023
NewsAuthorities to pick new mega stadium contractor after Chinese firm loses contract

Authorities to pick new mega stadium contractor after Chinese firm loses contract

Ministry of Youth and Sport officials are in the process of selecting a new contractor to complete construction of Ethiopia’s largest stadium in the capital, following the termination of the contract with China State Construction Engineering Corporation (CSCEC).

The 62,000-seat stadium project was revealed in 2015, with the first phase costing 2.47 billion birr.

The Chinese company had been the project’s main contractor since its commencement until a disagreement emerged over a price escalation adjustment that the company requested due to an increase in the price of construction materials.

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The Ministry took the project away from the Chinese company because the two could not agree on the sum to be paid to the contractor to complete the construction.

Even with the participation of Prime Minister Abiy Ahmed (PhD) and the Chinese Embassy in Addis Ababa, a series of discussions between the representatives of the contractors and the Ministry resulted in nothing.

In order to finish the construction of the stadium, CSCEC demanded the Ministry for a payment of 17 billion birr, but the Ministry turned down their offer.

“We are currently selecting a new contractor,” stated Kejela Merdassa, Minister of Youth and Sport.

An invitation has already been made to contractors who are qualified to take over the project, according to sources. Companies from Europe and Turkey have expressed an interest in competing in the bid.

“We will soon announce the winner,” Kejela said.

The government was willing to make a 225 percent adjustment for the Chinese contractor, bringing the total payment to 12.5 billion birr.

Officials want the new contractor to take the contract for this amount or less.

The Ministry has already begun discussions with officials from the Ministry of Finance about the budget that the federal government will need to allot to complete the construction.

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