How do you explain that the Adwa-born Kinfu Dagnew, a Brigadier General in your woyane's mercenary army, is also the owner of Metal & Engineering Corporation (MetEC) ?
Is it by coincidence that all major contracts are awarded to selected companies owned by people from Adwa ? I think I already know the answer to that. If a company is not owned by Al-amoudi, it is most likely owned by someone from Adwa. Ethiopia: Metal & Eng Corp Subcontracts Major National Works
By Mahlet Mesfin, 25 March 2012
Metal & Engineering Corporation (MetEC) is trying to ease its burden in steering the nation's drive to an industrial economy by subcontracting various projects to domestic construction firms, although three of the 20 selected turned down offers.MetEC is a state owned military industrial complex established a year ago and entrusted with several government projects worth billions of Birr. Run by a high ranking military officer, Brigadier general Kinfu Dagnew, its projects include the electromechanical work of the Grand Ethiopian Renaissance Dam and erecting turnkey fertiliser and sugar plants, the latter numbering 10, in various parts of the country.Abay Tsehaye (right), director general of Sugar Corporation under the ministerial portfolio; and Brigadier general Kinfu Dagnew, managing director of Metal and Engineering Corporation (MetEC); sign the contractual agreement for the latter to construct three sugar factories
In what the Corporation described as a move intended to encourage local contractors, invitations were sent to all 82 contractors with Grade One licenses in the country four months ago, to participate in its projects, according to anonymous sources at the Corporation. Of the 82 companies, seven were selected, including Sur Construction Plc, Sunshine Construction Plc, and Teklebrehan Ambaye Construction Plc, forming a consortium that is hoped will advise the Corporation on the processes.SUR Construction P.L.C owned by the Endowment Fund for the Rehabilitation of Tigray (EFFORT)
Sunshine construction plc owned by Samuel Tafesse partnered with Azeb Mesfin,
Teklebrehan Ambaye Construction Plc, owned by the the guy from Adwa
GELILLA INDUSTRIAL ENGINEERING, owned by Ato Gebrehiwot Gebrezabiher from Adwa
Zamra Construction PIC, owned by another guy from Adwa
Out of the 82, only 44 responded, delivering their company profiles to MetEC. These 44 were evaluated with a menu of 15 requirements, including track record, audit reports, number and type of projects at hand, machinery, and human resources.
Less than half scored 70 or above during evaluation for technical qualifications, according to sources at the Corporation.
Teklebrehan Ambaye, Sunshine, Sur, and Zamra Construction were, thus, selected to undertake projects on their own, while Equatorial Engineering, Radar Engineering, Deta Engineering, Sahle Mariam Construction, and Yoteck Construction were listed as having to share projects among themselves.
However, Sunshine, Giga, and Sur relinquished their share of the projects, citing overload, claiming to be tied up with various projects already at hand, while Zamra chose to take projects which it could do in partnership with others.
Some of those selected accepted the projects and signed contract agreements. These included Teklebrehan Ambaye Construction (TbAC), a domestic company that has emerged over the past two decades and has built several landmarks across the nation.
Registered with a capital of two billion Br, the construction firm built and owns Edna Mall and is currently undertaking the tallest branch office of the Commercial Bank of Ethiopia (CBE) on Equatorial Guinea Street. It is also building a stadium in the town of Mekele, the capital of Tigray Regional State, 780km north of Addis Abeba.
MetEC signed a 792 million Br contract with TbAC on Tuesday, March 20, 2012, for the earthwork of Yayu One, covering 60,000sqm. Yayu, 600km west of the capital in Illubabor Zone, Oromia Regional State, is one of the two fertiliser factories that the federal government wants built at a total cost of 2.8 billion Br. The second factory is planned for erection in West Wellega Zone of the same region.
The factory in Yayu could produce 300,000tn of urea, 20,000tn of methanol, and 90MW of electricity from the vast deposits of coal in the area, earlier studies projected.
The projects given to domestic firms include earthwork for the fertiliser factory in Yayu, Illubabor Zone, Oromia Regional State, where five contractors, including TbAC and NKH, will participate. TbAC will do the excavating and covering of the project site with concrete, which will have to be completed within seven months.
"We are going to level ground of up to 24 metres in height," Seifu Ambaye, deputy general manager of the company, told Fortune.
Nonetheless, the deadline set for the completion of the project has been a source of worry for the company.
"We do not have any experience with this kind of work," Seifu told Fortune. "We are building contractors; it is going to be tough."
Such were the concerns echoed by managers of Giga, which declined to participate. The project is new and unique, and it demands new forms of contract administration, human resources management, and mobilisation of machinery, an engineer at Giga told Fortune.
Giga Construction Plc was originally established in 2000, but recapitalised in April 2005 with 1.6 million Br that was equally contributed by Gebrehiwot Girmay, also a managing director, and Meheret Getachew, a shareholder.
"It is such a big national project that we do not want to mess it up," he told Fortune. "We have many projects at hand."
The 10 sugar factories to be constructed nationwide include six in the Southern Nations, Nationalities, and Peoples (SNNP) Regional State, and one each in Afar, Amahra, Oromia, and Tigray regional states. Four contractors have been hired to do the earthworks for Beles in Amhara, six for similar projects in Omo, SNNP, while Sur has been subcontracted for the Walquite Factory in Tigray, according to sources.