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On the path to industrialization

On the path to industrialization

  • Gov’t awards 3 industrial parks construction projects to Chinese firms

The Ethiopian Industrial Parks Development Corporation (IPDC) awarded the construction of three industrial parks in Addis Ababa and Jimma at a ceremony, which was held at Sheraton Addis, to three Chinese construction firms. The total cost of the project is a staggering 10.5 billion birr.

IPDC will construct the Bole Lemi II Industrial Park, the extension of Bole Lemi I at a cost of 3.5 billion birr in southern part of Addis Ababa. Bole Lemi II is dedicated for textile and garment industry. The corporation has selected CGCOC to undertake the construction which will take 12 months while the South Korean firm, DOHWA will be the consultant of the project.

The other Chinese construction company CTCE won the bid to construct the Kilinto Industrial Park which will host pharmaceutical industries at a cost of 5.5 billion birr. The Kilinto Industrial Park is dedicated to pharmaceuticals and high-tech medical equipment. The park will be built in the Akaki sub city in Addis Ababa within 12 months. DOWHWA will supervise the construction project. 

IPDC will build the third industrial zone in the Oromia Regional State in Jimma town at cost of 1.5 billion birr. The Jimma Industrial Zone will house textile and garment industries. CCCC, the Chinese construction firm, which has accomplished several major construction projects in Ethiopia, will construct the industry zone within nine months. A local consulting firm, MH Engineering, will supervise the construction project.

The contracts for the three projects were signed by CEO of IPDC Sisay Gemechu and respective managers of the Chinese construction firms.

During the signing ceremony Sisay said that the Bole Lemi and Kilinto industrial zones will be built with 158 million dollars loan secured from the World Bank. “These two projects are under one category and we followed the World Bank procurement procedures,” Sisay told local reporters.

Sisay said that the government gave number one priority to the textile and garment industry. “It is a light industry which is labor intensive. And it uses locally produced raw materials,” he said.

Sisay said due attention is given to pharmaceuticals, chemicals, metals, and leather industries. He disclosed the government’s plan to secure loans for the development of more industrial zones from Export-Import (EXIM) Bank of China and the European Investment Bank.   

Managers of the Chinese construction firms who appreciated the Ethiopian government’s commitment to develop industrial parks and create job opportunities and boost the export sector have vowed to finalize the construction projects according to schedule and high quality standards.       

Since its establishment in 2014 IPDC has successfully completed the construction of two industrial zones-Bole Lemi I and Hawassa. Currently, the corporation is developing the Mekelle, Kombolcha, Adama and Dire Dawa industrial parks. Sisay hopes that the construction of the Adama and Dire Dawa industrial parks will be completed and become operational soon.