The Ministry of Works and Urban Development on Ethiopia is facilitating truck procurement for better performing contractors and transporters who are involved in the government’s housing projects. The facility concerns 2000 trucks to be imported from China.
Arkebe Equbai, State Minister of Works and Urban Development, told a press conference on Thursday that the would-be beneficiaries will have to pay upfront thirty percent of the purchasing price of the trucks and will have access to secure loans from the Commercial Bank of Ethiopia (CBE) to cover the balance. The acquisition of the trucks has already been finalized, according to Arkebe.
The trucks are supplied by one of the biggest Chinese car manufacturers called SINOTRUK, Arkebe said. Half of the 2000 heavy-duty cars have a loading capacity of 16 cubic meter while the rest have a 40-ton capacity with trailers. The ministry is finalizing short-listing the would-be contractors and transporters who will be entitled to secure bank loans and purchase the trucks. The dump trucks will be sold to contractors while the others are allotted for transporters.
CGC Overseas Construction Eth. Ltd. yesterday signed an agreement with the government to import the trucks from China. In addition to the importation of the trucks, the ministry will facilitate the procurement of 200 crushers and loaders for the housing development program.
The state minister said that the price of selected materials and other major inputs such as sand and gravel has witnessed unprecedented hike, while the supply was declining due to rising demand. Asked if the price hike in construction materials would increase the price of newly built condos, the state minister indicated that the increase could occur because “the government will not subsidize housing projects.”
The ministry has also implemented other various initiatives including loan facilities to existing and new civil contractors and consultants and ease of requirement to secure licenses in order to enhance the housing development program. New and existing contractors and consultants who are involved in the housing projects will have access to secure up to 250,000 loans from CBE, according to the state minister.
During the last couple of years, the government has launched the construction of condominiums in 36 cities across the country including Addis Ababa, a part of which is being finalized. The government will extend the housing projects to 19 more cities, according to the state minister.
The ministry’s five-year plan ending 2010 envisages the construction of 400,000 condos in different cities across the country, which is projected to consume 20 billion birr.