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China and India and Ethiopia final report - FES Ethiopia

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4.3.1 RoadRoad sector is among major sectors that is given due attention in PASDEP. Inthis regard, the country has been performing very well in the last decade.Despite the presence of huge unbridled road dem<strong>and</strong>, the domesticconstruction capacity is so limited. As a result, a number of foreign companiesespecially Chinese are involving in the business.The table 4.7 shows that the percentage of road projects taken by Chinesecompanies in the new, rehabilitation, upgrading <strong>and</strong> maintenance has beenincreasing overtime. From 2008 onwards all new road constructions wereoffered to Chinese companies. This is mainly due to lower bid price offered byChinese companies compared with other bidders.According to information from ERA, IRCON International <strong>India</strong>n companies<strong>and</strong> SMS have secured contracts for road construction. IRCON was awardedcontract for Dera-Chole-Magna road construction which is located in southeastpart of <strong>Ethiopia</strong> with total project cost of US 31.3 million dollars.Table: 4.7Road Development Projects, Share of Chinese CompaniesRehabilitation, Upgrading <strong>and</strong>New Construction<strong>China</strong>Maintenance<strong>China</strong>year Total(inno.)<strong>China</strong>(in %) Others Total<strong>China</strong>(in no)(In%) Others1995 2 0 2 3 0 31998 1 0 11999 12 5 41.7 72001 3 1 33.3 22002 1 1 1002003 1 1 1002004 2 2 1002005 1 0 1 5 4 80 145

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