SAUDI Financed Projects

Fourth Quarter progress report

(April - June)

Addis Ababa
July, 2022
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Table Contents
I. Introduction..........................................................................................................1

1. Gedo - Menebegna Upgrading Road Project..............................................6

1.1. Status of the project.................................................................................7

1.2. Problems Encountered............................................................................8

1.3. Action to be taken...................................................................................8

2. Arbereketi – Gelemso................................................................................9

2.2. Problems Encountered..........................................................................11

2.3. Action to be taken.................................................................................12

3. Debre Markos - Motta.............................................................................12

3.1. Status of the project..............................................................................12

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I. Introduction
The Government of Ethiopia (GOE) has given special emphasis on the improvement of
the quality and size of road infrastructure in the country. To address the constraints in the
road sector, mainly low road coverage and poor condition of the road network, the
Government formulated the Road Sector Development Program (RSDP) in 1997 RSDP
has been implemented in six successive phases.

Over the twenty-four years of RSDP, a total of 166,382 km of road physical works has
been undertaken which consists of rehabilitation, upgrading of trunk and link roads,
construction of new link roads, construction of expressways, construction of rural gravel
roads, construction of Woreda roads, and periodic maintenance of federal roads. These
works were carried out by Ethiopian Roads Administration (ERA), Regional Roads
Authorities (RRAs) and Woreda Road offices (WRO) and the Community and
Municipalities. The total disbursement over the twenty-four years of RSDP was ETB
468,091 million. In addition to road physical works, series of policy and institutional
reforms have been implemented in the sector, which have enhanced implementation
capacity of road projects and effectiveness of Road Asset Management.

The Government was launched the Road Sector Development Program (RSDP) in 1997.
Since then, five phases of RSDP were implemented over the period of 1997 – 2020 and
the sixth phase; RSDP VI has been launched and implemented since July 2020.

RSDP I -From July 1997 to June 2002 (5 years plan)

RSDP II -From July 2002 to June 2007 (5 years plan)

RSDP III -From July 2007 to June 2010 (3 years plan)

RSDP IV -From July 2010 to June 2015 (5 years plan)

RSDP V - From July 2015 to June 2020 (5 years plan)

RSDP VI - From July 2020 to June 2025 (ongoing)

Despite remarkable achievement in the size and quality of the country’s road network in
the six phases of RSDP, much has remained to be done in improving the mobility, quality
and accessibility issues in the country. Therefore, the Road Sector Development Program
RSDP VI is part of the country’s ten years plan to provide access and create reliable and

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integrated road infrastructure to facilitate mobility. It aims to include the road network
191,305 km at end of RSDP VI. It also planned to scale up the density per 1000 sq.km to
166.7 km; so that the road density reaches end of RSDP VI above the current level of
Sub-Saharan Africa, which is which is 140 km per 1000 sq.km.

RSDP VI comprises road physical works of 27,462 km by Federal Government consisting of:

3821 km rehabilitation of roads,

5998 km upgrading of roads,

4682 km construction of link roads

539 km of expressway roads

4284 km of heavy maintenance of roads and

8138 km of periodic road maintenance works

RSDP VI also comprises construction of 15,228 km rural roads and construction of

23,897 km of Woreda roads.

The total cost of RSDP VI is estimated to be ETB 516 billion, of which ETB 460 billion
is for federal roads, ETB 56 billion is for regional and Woreda roads. RSDP VI will be
financed by internal and external sources as previous phases and by introducing Public
Private Partnership (PPP) modality as well. Of the total cost of RSDP VI; 94% will be
covered from local sources, of which GOE will cover 91% of the cost of the program
including matching fund and the Road Fund will cover 3% and the remaining 7% of the
cost the program will be covered by foreign sources including PPP scheme.

Institutional capacity building activities will be carried out to enhance the capacity of
implementing institutions which are ERA, Regional Roads Agencies and Woreda Road
Offices as well as the implementers, i.e the Domestic Construction Industry (DCI).

RSDP has been financed from domestic sources including GOE, Road Fund Office and
the Community, and foreign sources including bilateral and multilateral financial
institutions.

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RSDP has been financed from domestic sources including GOE, Road Fund Office and
the Community, and foreign sources including bilateral and multilateral financial
institutions.

Saudi fund for Development (SDF) has shown its steady development partnership to
Ethiopia, with due attention given to the road sector, specially through;

 Gedo - Menebegna
 Arberekti –Gelemso, (Contract 1)
 Debremarkos - Motta
The Ethiopian Roads Authority as a Beneficiary and executing agency in the road sub
sector is required to prepare and made available project progress reports regularly to
facilitate monitoring by the financing agency.

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Table 1: Summary of Projects Status

Total Revised
Original
Contract Disburse Length Acc. Completion
N Length Commence Completi Contract
Project Name Financer Signature ment To to date Date
o ment Date on Date Amount
(in km) Date date
(in km)
(ETBM)
(ETBM)

GOE, March March March 1,142.57 312.44 32.49 Terminated

BADEA, 5,2014 26,2014 7,2018
Gedo –
1 80.5 Abu Dhabi New 12th /Oct. On-going
Menebegna 12th/Oct. 942,47 544.188 33.8
and Saudi 28th 2021
2019
Fund /Feb.2019 Total 856.628 66.29
Arbereketi – BADEA,
April 30, May 25, May
2 Gelemso 57.5 OFID, SFD 800.59 699.366 50 On-going
2015 2015 1,2020
(lot:1) and GOE

Debremarkos - - - - - - - Under
3
- Motta - procurement

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Graph 1- Total to date Physical accomplishment per the total length

Total lengh (in k.m) Total to date (in k.m)

80.5
82%
57.5 87%

Gedo – Menebegna Arbereketi – Gelemso (lot:1)

Graph 2- Total Financial Disbursement per the contract amount

Total lengh (in k.m) Total to date (in k.m)

80.5
82%
57.5 87%

Gedo – Menebegna Arbereketi – Gelemso (lot:1)

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1. Gedo - Menebegna Upgrading Road Project

The total length of the project is 80.5 km. It is found in Oromia Region West Shewa Zone. The
road starts from Gedo and ends at Menebegna and it is jointly financed by Abu Dhabi for
Development, Arab Bank for Development in Africa (BADEA), Saudi fund for Development
(SFD) and Government of Ethiopia. Table; 2 and 3 show Loan Agreement and Basic Contract
Data of the Project, respectively.
Table 2: Loan Agreement Basic Data
Basic Data
Country Ethiopia
Project Title Gedo – Menebegna
Executing Agency Ethiopian Roads Authority
Loan Amount BADEA, 10,000,000 USD
Saudi, 93,750,000 Riyals
Abu Dahabi, 36,730,000 emirates dirhams
Signing Date March 09,2011

BADEA, May- 30-2019

Original Closing Date Saudi, May- 30-2019
Abu Dahabi, May-30-2019
BADEA, Rev-1 May 30,2019,
Rev-2 March 31,2021
Revised Closing Date Rev-3 October 11, 2022
Saudi, Rev- 2 October 11, 2022
Abu Dahabi, Rev-2 October 11, 2023
Length 80.5 km

Table 3: Basic Contract Data

Civil Work for Old contractor (After Terminated)
Project Name Gedo – Menebegna
Project Length 80.5 Km
Funded by GOE,Abu Dhabi for Development, (BADEA) & (SFD)
Construction type Road Upgrading Project (Asphalt Concrete)
For old Contractor Terminated Contractor: HAWK International Finance and Construction
Co.Ltd
Date of contract signature March 5, 2014, (terminated)
Commencement Date March 26, 2014(terminated)
Original Completion Date March 24, 2017- (Terminated)
Revised Completion Date March 7,2018 (Terminated)
Original Contract Amount ETB 1,142,567,661.24 (Terminated)

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Local and Foreign Contract ETB 315,619,286.64 USD 40,490,485.66

Amount
Consultant …...Nesign.221,471,679.5111111
Calendar Engineering Consultant Co. Ltd. In Joint Venture with Beza
Contract Signing Date Feb. 21, 2014(Terminated)
Consulting Engineers (Ethiopia)
Commencement Date 2nd of April, 2014(Terminated)
Original Completion date October 12,2021
Original Contract Amount US$ 564,750.00 and ETB 9,517,925.00
Revised Contract Amount ETB 979,261,694.71
For new Contractor New contractor: Sino Hydro Construction Co.Ltd.
Date of contract signature 28th, Feb. 2019
Commencement Date 12th, Oct.2019
Original Completion Date 12th, Oct.2021
Revised Completion Date May 1, 2022
Original Contract Amount ETB 942,471,547.72
Local Contract price ETB 221,471,679.51
Foreign Contract price USD 18,701,145.32
Consultant Highway Engineers & Consultant plc
Contract Signing Date 26 September, 2019
Commencement Date 11 October, 2019
Original Completion date 11 October, 2021
Revised Completion date May 1, 2022
Original Contract Amount ETB 16,401,301.44

1.1. Status of the project

During the reporting period the project has been suspended due to security problem. The total
accomplishment to date is 33.8 km. Financial to financial disbursement; the project
accomplished a total of Birr 544.18 million.
Table 4: Physical Accomplishment
Physical Accomplishment
Description This Month Fourth Quarter Year to date Total to-date
Km % Km % Km % Km %
Plan 0.5 1.03 7.3 3.5 37.2 18 41.2 85
Actual 0.0 0.0 0.0 0.0 28.44 13.02 33.8 73

Actual/Plan (%) - - 77 86

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Table 5: Financial Disbursement

Financial Disbursement (METB)
Description This Month Fourth Quarter Year to date Total to-date
ETB % ETB % ETB % ETB %

Plan 7.674 1.03 54.24 7.3 276.862 37.2 633.296 100

Actual
0.0 0.0 0.0 0.0 211.893 28.4 544.188 73
Disbursement
Disbursement /
Plan (%) - - 77 86

*Note: Starting from April 2022, the project has been suspended due to security problem

1.2. Problems Encountered

 Contractor’s cash flow problem due to financer’s delay in release of IPCs

 Till this reporting period, the Contractor has not purchased remaining 4 vehicles for the
Engineer.
 Cement and Fuel shortage
 Security problem in the project vicinity
 Continuous failure of construction equipment and lack of timely maintenance owing to cash
flow problem following to payment delay by the Employer
 Bad weather condition for asphalt construction
 RoW problem due to delay in compensation payment to the land owners

1.3. Action to be taken

 The Employer is closely working with the concerned government bodies for resumption the
project by improving the security situation of the project area

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 The financers have been requested for the extension of the loan agreement and timely release of
the certified outstanding payments
 The Contractor is advised to purchase the vehicles as soon as possible.
 The Employer shall facilitate the supporting letter for cement and Fuel supply; and the same has
been done before the suspension of the project due to security problem
 The Contractor shall purchase the spare parts and establish well organized maintenance crew.
 If the security situation is improved, the Contractor shall implement the agreed rainy season
action plan
 The Engineer shall follow up the security situation and evaluate the Contractor’s performance on project
site as per the action plan and report to the Employer for his subsequent action
 The Employer is currently on preparation to pay the delayed RoW paymenty

2. Arbereketi – Gelemso
Arbereketi – Gelemso is an existing gravel road found in Oromia region and links Arsi and west
Haragie Zones and pass through different weredas of the region. The road has a length around
57.5 km from Arberketi to Gelemso. The project is financed by Arab Bank for Development in
Africa (BADEA), Saudi fund for Development (SFD), OPEC Fund for International
development (OFID) and Government of Ethiopia.
Table 6: Loan Agreement Basic Data
Country Ethiopia
Project Title Arbereketi - Gelemso
Executing Agency Ethiopian Roads Authority
Loan Amount 45 million Saudi Riyal or 12 million USD
OFID: 20 Million USD
BADEA: 10 Million USD
Signing Date November 20/2013
BADEA, April 30 2018
Original Closing Date Saudi, September 30,2020
OFID, September 30,2020
BADEA, Requested to December 30, 2022
Revised Closing Date Saudi, Requested to December 30, 2022
OFID, Requested to December 30, 2022
Length 57.5 km

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The project was split in to two contracts, Contract 1: Arbaraketi–Gelamso (57.5km), Contract 2:
Gelamso–Micheta (45.90 km). The status of Construction Works of each contract is described
below.
Table 7: Basic Contract Data
Civil Work
Project Name Arbereketi – Gelemso
Project Length 57.5 Km
Construction type Road Upgrading Project (Asphalt Concrete)
Contractor AL ASAB EST. General Transport & Contracting
Establishment [Abu Dhabi, U.A.E]
Funded by Arab Bank for Economic Development in Africa (BADEA),
the OPEC Fund for International Development (OFID), the
Saudi Fund for Development (SFD).
Proportion of Payment USD 12,093,968.25 (30%) and
ETB 560,411,913.25 (70%)
Date of contract signature April 30, 2015
Commencement Date May 25, 2015
Original Completion Date May 25, 2018
1st Revised Completion Date May 26,2019

2nd Revised Completion Date December 31, 2022

Original Total Contract Sum ETB 800,588,447.50
Estimated/Revised Final Contract Sum USD1 2,093,968.25 and
ETB 692,425,307.09 (including 15% VAT)
Supervision Contract
Consultant Khatib and Alami Consulting Engineers Offshore SAL in JV
Contract Signing Date April 30, 2015
with CORE Consulting Engineers Plc.
Commencement Date May 15,2015
Original Completion date May 25, 2018
Revised Completion date December 31, 2022
Original Contract Price USD1 2,093,968.25 and
ETB 692,425,307.09 (including 15% VAT)
Revised Contract Price USD 18,694.74 or
ETB 866,279.46

2.1. Status of the Project

During the reporting period, the contractor managed to accomplish 0.10km. The total
accomplishment to date is 50 km. With respect to financial disbursement, the project

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accomplished a total of Birr 699.366million. Tables 8 and 9 show physical accomplishment and
financial disbursement of the project respectively.
Table 8: Physical Accomplishment
Physical Accomplishment

Description This Month Fourth Quarter Year to date Total to-date

Km % Km % Km % Km %
0.89 1.02 2.67 4.6 8.03 13.9 57.5 100
Plan
0.05 0.08 0.06 0.10 0.76 1.3 50 87.4
Actual

Actual/Plan (%) 5.6 2.2 9.5 87.4

Table 9: Financial Disbursement

Financial Disbursement (METB)

Description This Month Fourth Quarter Year to date Total to-date

ETB % ETB % ETB % ETB %

Plan 12.391 1.02 37.175 4.6 111.80 13.9 800.588 100

3
Disbursement 0.696 0.08 0.835 0.10 10.582 1.3 699.366 87.4
Disbursement /Plan
5.6 2.2 9.5 87.4
(%)

2.2. Problems Encountered

 The absence of key man power such as seniour engineers
 The number of crews is not satifactory with respect to the remaining work loads
 Delay in commencement of DBST shoulder construction

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 absence of such key manpower as senior office Engineer, Material Engineer structural
engineer & structure superintendent, materials engineer to organize the office & site works,
 The no of crew is no satisfactory with respect to the remaining work load to expedite
drainage and structure works (specially for pipe culvers and side drainage)
 Prime pomp breaks down problem frequently happened which affected the prime and Ac
paving progress in the month.
 Cash flow problem
 Frequent shortage of fuel.

2.3. Action to be taken

 The Contractor was advised to organize sufficient crew and boost the progress of the
remaining works especially critical drainage and structure works.
 The contractor was repeatedly advised to maintain the frequently broken-down machineries
especially the prolonged broken-down grader assigned for earth work and pavement
activities of Bedessa and Kara town, the broken down prime pipe at the asphalt plant and the
severely broken down mixer truck assigned for the activities of Town ditch and bridge
concrete
 The problem of cash flow was in mitigation with communicating responsible bodies

3. Debre Markos - Motta

The project aims to construct a road of about 118.4 km. The project is a part of government
program for development of the transport sector and expanding the regional road network.
Table 10: Loan Agreement Basic Data
Country Ethiopia
Project Title Debremarkos- Motta
Executing Agency Ethiopian Roads Authority
Loan Amount 28125000 million Saudi Riyal or 12 million USD
Signing Date 12/19/2019
Original Closing Date September 9/30/2025

3.1. Status of the project

During third quertor reporting period the project is under procurement process (preparatory
activity).

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