TIRET October 2012 Issue - MIDROC Ethiopia

Toussa Steel Factory Plc. on the Move
Toussa Steel Factory Plc. owned by Sheikh Mohammed
H. Al-Amoudi, and a member of the Derba MIDROC
Group, has embarked upon building a Steel Plant with
a capacity of 1.3 million tons per year in Kombolcha
town of the Amhara Regional State. The new Steel Plant
with a melting shop and three rolling mills is capable of
producing 800,000 tons re-bars, 150,000 tons wire rods,
400,000 tons light sections and 300,000 tons medium
sections and R 60 rails per annum.
HWC Swiss AG, one of the highly experienced consultant
conglomerate in the field of iron and steel plant project
management and engineering supervisory services, has
been selected as a Consultant for the construction of
Toussa Steel Factory Plc. and an agreement between the
two parties was signed on February 21, 2012.
According to the Consultancy Contract Agreement,
the Consultant will provide services based on the EPC
Contractors’ proposal, contract preparation, project
management and engineering supervision. The contract
amount signed is about Birr 80 million.
Various EPC Contractors have submitted their bid
proposal on January 18, 2012 and the process of
evaluation and negotiation with prospective bidders
was concluded in July 2012.
MIDROC News
Ato Haile Assegidie (right) with Eng. Shimelis Eshete, the Project Director and Ato Wondimu Gualew at the bidding ceremony
The formal contract signing is expected to be finalized
shortly. The project contract amount is USD 570 million
and the construction, completion and commissioning of
the Factory Project is expected to be completed in 36
months.
The Company is currently undertaking sub-soil
investigation and site topographic surveying while
the hydro geological and geophysical study is already
completed. Negotiation for land lease payment
agreement with Kombolcha Town Administration is also
underway.
Partial view of Bidders
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