Mombasa–Nairobi–Addis Ababa Phase III Road Corridor Development Project (Hawassa-

Ageremariam) Road Rehabilitation Project

Background of the project

Hawassa – Ageremariam Road Project is part of Mombasa-Nairobi-Addis Ababa Corridor

Project and aims at promoting trade and regional integration between Ethiopia and Kenya. The
project road section, Hawassa - Ageremariam, is located in the southern Ethiopia, in the
Southern Nations, Nationalities & People’s Region (SNNPR) and its last section is connected to
the Oromia Region, BuleHora woreda of Guji Zone. The start of the project is Hawassa town at
the junction of Shashemene - Dilla Road and the road to Hawassa town about 257 km from the
capital city of Ethiopia on the main road of Modjo- Shashemene asphalt road. The end of the
project is Ageremariam town in Oromiya Regional State about 198 km from Hawasa town. Table
3 shows loan agreement data of Hawassa – Ageremariam.

The project was splitted in to three contracts, Contract 1: Hawassa – Chuko (66 km), Contract 2:
Chuko – Yirgachefe (60 km) and Contract 3: Yirgachefe – Ageremariam (72 Km).

Project Objective

Hawassa – Ageremariam Road Project is part of Mombasa-Nairobi-Addis Ababa Corridor

Project and aims at promoting trade and regional integration between Ethiopia and Kenya by
improving transport communications between the two countries.
Table 1: Hawassa-Ageremariam Loan Agreement Basic Data
Country Ethiopia
Project Title Hawassa – Ageremariam
Executing Agency Ethiopian Roads Administration
Project ID No P-Z1-DB0-070
Loan Number 2100150025545
Loan Amount UA 105,000,000
Signing Date 3-Febu-2012
Closing Date 31- Dec-2017
Revised Closing Date Dec 31, 2020.
Length 198km
Chuko – Yirgachaffe Rehabilitation Project; Contract II
Table 2 Chuko – Yirgachaffe Basic Contract Data
Civil Work
Project Name
Project Length
Construction type
Contractor
Funded by
Proportion of Payment
Date of contract signature
Commencement Date
Original Completion Date
Extension of time (EOT)
Revised Completion Date
Actual Completion Date
Original Total Contract Sum
Estimated/Revised Final
Contract Sum
Exchange Rate
Supervision Contract
Consultant
Contract Signing Date
Commencement Date
Original Completion date
Revised Completion date
Original Contract Price
Revised Contract Price
Proportion of Payment
Status of the project
: Chuko – Yirgachefe
: 60 km
: Asphalt Concrete
: China Railway no 3 Engineering Group
: ADB and GOE
: March 13,2017
: April 24, 2017
: Feb 22,2019
: 331 Calendar days
: Jan 08, 2020 Rev. Jan 11,2021
Jun 1,2021, (EOT request to September)
: ETB 889,003,033.32
: ETB 885,169,608.41 (15% ETB and 85% USD) with all
Variation orders
: LEA International Ltd. In JV with LEA Associates South
Asia Pvt. Ltd. In association with Net Consultant Consulting
Engineers and Architects PLC
: Oct. 24,2012
: Dec 28,2012
: Dec 28,2015
: Oct. 27,2012 REV Dec.2020 Rev. March 31,2021, (March
2022, EOT Request)
: USD 1,170,500.00 and ETB 7,084,500.00
: USD 2,153,228.75 and ETB 10,306,414.29
 The project has been substantially completed, i.e., 95% of the physical work. After, the
loan agreement was closed at December 31, 2021 the government of Ethiopia is now
financing the project to complete the remaining works.