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Construction Sector Corruption in Ethiopia 273
Figure 6.4 Comparative Costs of Equipment-Based Gravel Road Construction,
Ethiopia and Selected Countries
US$ per km, thousands
160
140
120
100
80
60
40
20
0
Uganda
EB
Lesotho
EB
Ethiopia
EB
country and technology
Ethiopia
EB contract
Source: Author’s analysis of data from Taylor et al. 2008 and regional road authorities.
Note: EB = equipment-based. km = kilometer.
three (paler) bars present average costs per kilometer—showing that, at
about US$75,000 per kilometer, such roads are relatively expensive in
Ethiopia. The same figure shows, as a darker bar, the cost per kilometer
of one of the few low-volume gravel roads being constructed contemporaneously
under contract to an RRA in Ethiopia. At approximately
US$140,000 per kilometer, this cost appears exceptionally high by international
standards, suggesting the possibility of uncompetitive practices
in the market. A site visit to the road in question did not reveal any evidence
or allegations of corruption but did identify possible factors that
may have contributed to the high cost.
None of the main technical factors that normally drive up costs was
applicable in this case: existing and projected traffic levels were low, the
terrain was flat or rolling, drainage structures accounted for only a small
proportion of the contract cost, the site location was immediately adjacent
to the sealed federal road network, and surfacing materials were in
plentiful supply.
At face value, the road was costing approximately three times what
could normally be justified on economic grounds—and double the normal
cost for such a road. This inflated cost suggests either poor governance,
corruption, or a combination of both. A more detailed study was
neither possible nor appropriate in the circumstances. However, initial
inquiries identified the following factors that may have contributed to the
high costs: