EFFORT's Cement, Textile Factories
Under Chinese Management
Haimanot Alemu
to Host Ethiopia's "Hard Talk"
Al Amoudi to
Venture into Vegetable, Flower Farming
Fabulous Bldg
to Erect Around Mexico Sq.
Addis Chamber To Air Programs On
FM 97.1
471 Plots Up for
Lease
Italian Govt.
Allocates $5 Mil to Bolster Pvt. Sector
Exporters Urged
to Join Envoy to India and Maghreb Countries
Works at Midroc
Sites in Paralysis as Strike Continues
Beal Bldg Revalued
at 10.4 Mil
Unity College
to Launch Comprehensive Website on Ethiopia
IT Companies Cry
Loud Over a Parliament Bid
Djibouti to
Contract Airport Management
Editorials
An Initiative Needing Urgent
Implementation
Put Agreements on Solid Ground
ECONOMIC COMMENTARY
Breaking the Forex
Deadlock
RESTAURANT REVIEW
He Ra Fast Food, Restaurant &
Bar
TREND
TENDER
MART
BUSINESS
OPPORTUNITIES
VIEW FROM ARADA
I Too Have a Dream
IN MY PERSPECTIVE
Driving in Addis - II
OPINION
Drop the Stone on the Right Feet
ETC to Revise Tariff
Internet Causes Decline Telecoms Revenue, GM Says
BY YIBEKAL GETAHUN
Fortune Staff Writer
The Ethiopian Telecommunications Corporation (ETC) is moving to
make tariff adjustments on the current rate of its services. ETC
is undertaking a study to revise its tariff in a bid to boost the
existing flux of telephone calls, as a result mobilize more income
and strengthen the financial status of the Corporation.
Asmare Abate, general manager of ETC, said his Corporation's lifeline
is directly linked to local calls and the motive behind the study
to make a general tariff adjustment is to encourage telephone use
among the public at large by stamping out price limitations.
ETC is looking to raise its revenue by focusing primarily on increasing
the number of calls made. According to a Telecoms official, the
limited financial resource has stiffened the Corporation's capacity
to execute various planned projects.
Telecom's manager mentioned the introduction of advanced technologies
[Internet] in the sector, which significantly contributed for the
decline of the ETC's revenue from international calls, as one factor
behind the financial constraint.
Asmare says the Corporation invested close to 1.9 billion Br during
the past five years. He explained that over one billion Birr was
covered from the revenue generated by the Corporation, while the
remaining 844 million Br was obtained in loans from international
organizations and the government.
The government exempted the Corporation from taxes in addition to
allowing it keep the contribution it used to pour into the government's
treasury from its annual profit and utilize it instead to be self-supporting
and competent in the market, according to the manager.
The Corporation netted some 215.8 million Br in profit during the
budget year ending June 2000.
Meanwhile, aiming at diversifying its services, ETC is poised to
start providing data communications service, a system enabling companies
or institutions to exchange data within their branch networks or
subsidiary outlets.
The Corporation has already installed the equipment and system to
launch the service, Asmare Abate, on his first report to the Federal
Parliament said.
"Banks and insurance companies would benefit most from the system,"
he said.Top
Effort's
Cement, Textile Factories Under Chinese Management
BY DAWIT TAYE
Fortune Staff Writer
The Endowment Fund for the Rehabilitation of Tigray (EFFORT), a
holding of several multi-million Dollar companies, established and
owned by the ruling party, has given its management contracts of
its two subsidiaries to Chinese companies.
EFFORT contracted the two Chinese companies to run the Messobo Cement
Factory and Almeda Textile Factory for an agreed duration of five
years.
A top official of EFFORT told Fortune that the agreement has been
finalized some time earlier and the Chinese professionals are now
fully engaged running the job.
One Chinese company, deploying 45 Chinese expatriates, took the
management of Messebo as of January 2000 helping the Factory in
managing the risk of capital-intensive operation, advanced technology
and huge investment. Messebo has a production capacity of 600,000
tons of cement a year that took an investment of 1.2 billion Birr.
Around 35 other expatriates are also managing the textile factory
- which has cost EFFORT one billion Br - since September 1999, particularly
in an effort to penetrate the international market.
The official said the decision of the management contract was made
after a thorough study was conducted for an extended period of time
and stems from the need to enhance productivity, quality, technology
and skill transfer and access to the international market.
"We chose the two Chinese companies because they offered a reasonable
fee and have mastered the technologies at the same time being highly
experienced on both cement and textile production," said the official.
EFFORT had earlier looked for companies in Europe to undertake the
job before opting for the Chinese ones. But, the official has declined
to disclose the financial terms of the contract due to confidentiality.
"Payments are linked with performance such as sales, profit performance,
capacity utilization, serviceability, quality target, skill development
etc," said the official.
He, however, said that a study is underway to hire foreign companies
to run the management of additional holding companies of EFFORT.
The selection, he said, will be based on the flexibility of the
companies to accommodate Effort's proposal on skill transfer and
payment terms being competitive in their offer.
"We are forced to look overseas because of lack of local qualified
staff and institutional experience to manage such huge plants,"
he said adding that the number of existing expatriates would eventually
subside as local staff would takeover after acquiring the required
skill and knowledge that would be helpful to be competitive in the
international market, both in quality products and management.
He disclosed that language and cultural barriers, delay in implementing
contracts, wrong selections of partners or indigenous staff and
low interest and resistance by locals staff to learn are some of
the impediments in working under management contract arrangement.Top
Haimanot
Alemu to Host Ethiopia's "Hard Talk"
BY TAMRAT G. GIORGIS
Fortune Staff Writer
Ever since Selome Tadesse, government spokesperson, took the helm
of state owned media, being general manager of both state TV and
radio stations, in 1998, the public is enjoying new features in
the media scene.
Following the introduction of Alebe Show, the state is seen a bit
relaxing its generation old grip on the controls of the media outlets,
particularly the electronics media. The Alebe Show broke the ice,
followed by a new addition to ETV's 50 years old single channel,
TV Africa, then came the first FM radio station, FM 97.1.
Now seems to be the turn for one of Ethiopia's celebrated stage
performers, Haimanot Alemu, who will be hosting a BBC-styled talk
show in co-production with the Ethiopia Television. The launch of
the new talk show is scheduled to be in three months.
Dubbed as "Face to Face", the Amharic show will be a mix of the
BBC's Hard Talk by Tim Sebastian and a bit of Question Time India,
also viewed on the BBC World Service.
The host will conduct one-on-one discussions with guests at times,
while on some shows selected audience who have involvement in the
issue put up for discussion or the guest will be invited to pose
questions to the guest.
Haimanot and his aides have already completed the production of
one show having veteran writer Haddis Alemayehu as their first guest.
The production took three weeks to windup, while another show with
Dr. Dejazmach Zewdie G. Sellasie is reportedly under production.
Sources close to the production said Face to Face would be a thoroughly
researched, in-depth weekly or possibly a biweekly program, considering
the time span it takes to produce a single show.
Assefa Bekele, deputy general manager of ETV, said agreement has
been reached to cover the production and other related costs through
sponsors.
Both sides would split the benefits 50-50 but the official signing
of the contractual agreement is yet to be made, the manager said,
anticipating the show is likely to be on air on Sundays. (Mikias
Worku has contributed to this story)Top
Al Amoudi
to Venture into Vegetable, Flower Farming
BY MIKIAS WORKU
Fortune Staff Writer
Sheik Mohammed Al Amoudi is yet to pour a substantial amount of
money into new projects stepping up the overwhelming sum of billions
of Dollars he has already invested in Ethiopia to finance a wide
range of projects and strategic acquisitions.
Newly conceived projects to develop large-scale vegetable and flower
farms have now emerged on the tycoon's line of investment. The schemes
are planned to be carried out at a combined investment cost to the
tune of 184 million Br (22.1 mil Dollars).
The projects are going to be executed under a subsidiary company
owned by Al Amoudi and Ethio-Coffee and Tea Plantation and Marketing
Plc, formerly a state owned enterprise sold over to Midroc Ethiopia
holdings by Ethiopian Privatization Agency (EPA) with its tea plantations.
Midroc agreed to pay 208 million Br in May 2000 to buy the Wushwush
and Gumero tea plantations together with a tea packing and processing
plant located in Addis Abeba.
One of the new projects to develop the vegetable farm will take
a total investment cost of 60 million Br and would be implemented
phase by phase over a period of three years.
The farm targets to produce 23,500 tons of organic and 2000 tons
of non-organic vegetables when operating at full swing following
the final phase.
On the other hand, Ethio-Coffee would spend some 123.6 million Br
for its flower project intending to develop a 160-hectare greenhouse
farm for roses and another 15 hectares as a non-greenhouse flower
plantation.
The company looks forward to undertake these projects parallel to
its Ababa Coffee Plantation Project, which is already well into
implementation covering 710 hectares with coffee ripe for harvesting
by next year.
Wushwush and Gumero tea plantations found in the Kaffa and Illubabor
zones, have annual capacities to yield 1,500 tons and 1,700 tons
of tea, respectively.
The company runs the tea processing and packing plant as well, which
labels the tea received from the plantations for distribution to
local and foreign markets.
Information that appeared on Midroc's biannual publication, Tiret,
indicates that the factory generates an annual revenue before tax
of around 20 million Br from labeling 1,500 tons of tea, including
300 tons supplied to the export market in three brands: Addis Tea,
Wushwush and Gumero.
The Ethiopian Privatization Agency sold the plantations and labeling
plant to Midroc following failures of negotiations to sell the enterprises
to a British firm called Commonwealth Development Corporation because
of unacceptable preconditions set by the British company to the
government.
There are now two rose farms exporting their products to Europe
and supplying the growing local market. Meskel Flower Plc has a
rose farm close to Zeway town, 163Kms east of Addis, while Golden
Roses has its farm at Tefiki, about 45Kms west of Addis.Top
Fabulous
Bldg to Erect Around Mexico Sq.
BY DAWIT TAYE
Fortune Staff Writer
Construction of a nine-storey, multi purpose building, would commence
soon on 1500 Sq. meters of land in front of Philips Building, Mexico
Square, at a cost of 30 million Br.
Alsam Plc, established by five shareholders with a 10million Br
capital, leased the land from the City Administration for 2.8 million
Br in a 55-year contract.
Sources in the company said it would use the new building for shopping
mall and office complex and to launch its own businesses including
a four-stairs supermarket. It has also plans to open other service
outlets such as restaurants, bars, children's quarters and similar
recreational centers. The company plans to rent some parts of the
building for banks, insurances and other service providing companies.
Wossen Consultants has carried out the designing work of the building
winning the job after contending with other eight designers.
Designers that ranked from first to third got ten thousand to five
thousand Birr each as rewards.
Other participating companies have also received 1500 Br each.
Alsam Plc has a plan to invest in agro industry, manufacturing and
real estate businesses.Top
Addis Chamber
To Air Programs On FM 97.1
BY DAWIT TAYE
Fortune Staff Writer
The Addis Ababa Chamber of Commerce (AACC) is about to launch a
biweekly, 30-minute program, on FM 97.1 beginning March 12.
According to Solome Desta, coordinator of the channel, the program
that the Chamber would produce will be on air every Mondays and
Thursdays for six months.
She said that Addis Chamber had requested to buy airtime in mid
June 2000, but has submitted its proposal this week specifying the
airtime, commencement date, contract duration and content of the
program it is planning to air.
"The program will be on air once the contract agreement is signed
and the fees are settled," Solome said, which she disclosed will
be finalized in the coming two weeks.
Addis Chamber has hired staff and plans to cover its airtime primarily
with transmissions that promote trade and investment including news
items, events and bulletins directly related to business and economy.
FM 97.1 offers two different rates: for weekend programs and from
Monday to Friday, which are 30 Br and 35 Br per minute, respectively.
The Chamber would pay a total of 47,700 Br for a total airtime of
1590 minutes it would use in six months.
Teferi Asfaw, public relations head of AACC, confirmed his Chamber's
initiative, but said efforts are underway to negotiate with the
station to get a lower deal before signing contracts.Top
471 Plots
Up for Lease
BY MELAKU DEMISSIE
Fortune Staff Writer
The Addis Ababa City Administration Lease Office has announced the
35th round lease auction offering 471 plots of land.
Scattered across 19 woredas of the city and two localities - Keranio
and Mekanisa - the office floated for lease a total of 233,472.5
Sq. meters of plots that would serve for building of residential
apartments, offices, supermarkets, shops, small scale industries,
filling stations and residential quarters.
Of the total space offered for lease to the public, 131,427 Sq.
meters of land would serve for housing business establishments that
range from one to 10-storey buildings, while the remaining 102,045.5
Sq. meters of land are for constructions of ground-plus-one residential
quarters, according to the notice issued this week.
The notice further indicated that 143 plots are located at Keranio
near Bethel Clinic, 101 in Mekanisa area and the remaining 227 plots
are scattered in different sites of the city.
Ten plots, located in Woreda 15 Kebele 30 (behind the UNECA Compound),
are included again in this auction. The Office has been putting
these plots for auction since the 28th round but could only attract
one interested buyer at the 34th auction.
The biggest plots, which measure 5,000 Sq. meters each and located
in Woreda 28, around Summit Soft Drinks Industry, are slated for
the construction of small-scale industries.
The Office invited potential bidders to purchase bid documents paying
a non- refundable amount of 100 Br for each plot they wish to bid
for. Bids must be accompanied by bid bonds of not less than one
per cent of the total floor price of the plots of land, according
to the notice.
The deadline for bid submission is on March 22, and the auction
will be opened the next day in the presence of bidders or their
legal representatives at the City Administration's hall. Top
Italian Govt.
Allocates $5 Mil to Bolster Pvt. Sector
BY MARY DEJENE
Fortune Staff Writer
The Italian government has allocated nearly five million Dollars
to help bolster the capacity of the private sector in Ethiopia.
This is done within the framework of the current Ethio-Italian Cooperation
Country Program for Private Sector Development, the Italian Ambassador
to Ethiopia, Marcello Ricoverri, told Fortune.
The Ambassador said that the aid is to create ample financing opportunities
for comprehensive and concrete investment proposals that are prepared
and submitted to the Ministry of Economic Development and Cooperation
(MEDaC).
Subsequently, minutes of understanding of the Ethio-Italian Joint
Committee were signed at the office of the Ethiopian Investment
Authority (EIA) on Wednesday, February 28, between Taddese Haile,
general manager of the Authority, and Ambassador Ricoverri. The
Italian side has agreed as well to give assistance to EIA through
existing channels, mechanisms and institutions, and training in
various fields in Italy, to enhance its capabilities in formulating
project proposals, develop entrepreneurial skills and build a modern
tourism industry.
The agreements between the two countries also include in-depth information
exchange regarding the existing investment environment and opportunities.
However, both sides agreed that exerting more efforts to eliminate
obstacles identified in key investment areas is of a paramount importance
to put into practice the cooperation agreements between the two
countries.
Service delivery, land acquisition, privatization of public enterprise,
making local authorities in Ethiopia conversant with the investment
rules and regulations of the country and the timely and normal remittance
of funds as stipulated in the investment code, are areas said to
be needing improvements.
The Italians mentioned the minimum floor of 300,000 Dollars, proclaimed
in the Ethiopian legislation as a requirement to enter in joint
ventures with local companies, as a stonewall to potential Italian
investors, whose economy is mainly based on small and medium scale
enterprises.
On the other hand, the bilateral cooperation foresees agriculture
and agro-industry, sugarcane and cotton plantation, leather and
leather products, floriculture and horticulture, meat processing,
production of durum wheat and indigenous wheat, mining, tourism,
construction, privatization program, packaging, power generation
as well as tapping geothermal power, as main areas of interest for
Italian investors.
Agreement was reached to establish a follow up task force, composed
of representatives from EIA, Ethiopian and Italian Chambers of Commerce
and Italian business communities in Ethiopia, to analyze project
proposals of interest.
The Addis Ababa Chamber of Commerce has also signed a cooperation
agreement with the Italian Chamber of Commerce of Milano on Tuesday.Top
Exporters
Urged to Join Envoy to India and Maghreb Countries
BY DAWIT TAYE
Fortune Staff Writer
The Ethiopian Export Promotion Agency (EEPA) is urging exporters
to take advantage of two business trips it is organizing to take
Ethiopian exporters to India and three other North African countries.
The Agency is organizing a business trip to India as part of the
second Ethio-Indian bilateral trade committee meeting that would
be held from March 19 to 23, in New Delhi.
The Agency said that apart from the joint committee meetings, different
programs designed to link up Ethiopian exporters with their Indian
counterparts would be included during the visit.
The vice-minister of Trade and Industry, Biruk Debebe, would lead
the delegation to India, according to information obtained from
EEPA.
Similarly, EEPA is also stirring a trade visit to Egypt, Libya and
Morocco that would last for 11 days - from March 16 to 27. The visit
aims at establishing business contacts between Ethiopian exporters
and potential importers from Northern African countries.
The Agency says that all businesses in export sector are eligible
to be part of the business envoy as long as they cover their expenses
for tickets and accommodations.
"Interested companies engaged in the export business should register
here and join the delegation," the Agency officials said.
They say that although the Agency has dispatched notice inviting
around 120 companies to participate in the trade visit to India,
so far only two companies -ELICo and Shoa Tannery - have registered
to be included in the visiting group, whereas only Nejat International
has shown interest to travel to North Africa.
The Agency officials assume that the expenses businesses are required
to cover may be the reason that shuns them from such trips.
"These kind of business visits bear ample opportunities, especially
for exporters, to create new business contacts abroad, hence crucial
that companies come forward to make use of them," the Agency urges.Top
Works at Midroc
Sites in Paralysis as Strike Continues
BY DAWIT TAYE
Fortune Staff Writer
Midroc Construction's Acting Deputy General Manager, Engineer Shimelis
Eshete, who has been blamed by the labor union for being at the
center of the controversy, openly fired at the Confederation of
Ethiopian Trade Unions (CETU) accusing it fueling disagreements
and enticing workers to rise against the company.
Shimelis particularly has attacked Aregawi Kebede, head of the Industrial
Relations and Research Sector, for being at the origin of the flare
up "by guiding workers into destructive actions instead of searching
for peaceful solutions to the problems".
"At a time when efforts are being exerted to mitigate the stalemate
at the OAU premises, the head of the Federation is working to instigate
subversion in other project sites of the company," alleged the deputy
in his letter, dated March 1.
The Deputy's reply was the first reaction sent to the City Works
and Social Affairs Bureau ever since the dispute between Midroc's
management and employees started a year ago.
Ninety per cent of the construction workers are currently reported
to be on strike demanding immediate meeting with the owner and general
manager, Sheik Al-Amoudi, on reinstatement of fired workers and
labor leaders as well as salary raises.
At the meeting called by the company's labor union on March 2, 2001,
the Federation head dismissed the allegations by the acting deputy
manager as groundless saying that there is no one behind the strike
called by the labor of the company which was "pressured by the hardship
the management puts on them".
He claimed that Engineer Shimeles was so far negligent and never
bothered to respond to the long overdue demands of employees but
wrote a letter only when employees were forced to call a strike.
At the meeting, the employees, more than 1500 in number, referring
to the recent meeting between the Prime Minister and general managers
of state enterprises, called for better working conditions.
They said they would be calling the remaining workers to join the
strike and will not resume work until their demands are met.
Engineer Shimeles warned in his letter that this kind of atmosphere
discourages Midroc and potential other investors in the sector from
playing an important role in development.
The acting deputy manager urged the Bureau to start taking measures
to curb "the illegal activities of the Federation before the company
is forced to take legal measures".
All Midroc Construction sites are currently in a stand off due to
the strike. Top
Beal Bldg Revalued
at 10.4 Mil
BY MELAKU DEMISSIE
Fortune Staff Writer
Two experts from the Commercial Bank of Ethiopia (CBE), assigned
by the Addis Ababa City Municipal Court, have revalued the controversial
Beal Building at 10,400,340.93 Br exposing a price valuation almost
reduced by half the initial valuation given by an expert from Sur
Construction.
Appearing at the 8th Bench of the Municipality Court on Tuesday,
February 27, Hailemariam Abzo and Fitsum Berhe told the court that
their estimation was based on CBE's working patterns that is applied
for such cases.
A month ago, the first expert witness, Tekeste G. Hiwot, engineer
at Sur Construction, had reported that the building is worth a total
of 19,859,090.04 Br, contrary to CBE experts' reckoning who estimated
the value of the construction of the building and other work expenses
at a current market price of 7,516,191.93 Br, while the site value,
they said, is worth 2, 884,149 Br.
The experts said their report is substantiated by the information
obtained from Electro Commercial S.C., which has bought the building
at a public auction held in September 2000; the representative of
the original owner and developer of the building, Construction and
Business Bank, which claims an unsettled loans; and the City Works
and Urban Development Bureau, responsible for furnishing the original
floor price, 2,854,000.56 Br, to the auction that finally led to
the controversy.
Electro Commercial's lawyer told the Court that he prefers to go
through the assessment before commenting on it, while a lawyer representing
the original developer, who was repatriated to Eritrea, has objected
saying "the buyer should not be allowed to comment on the price
valuations because he is not a beneficiary from the sale of the
building thus should wait the verdict without any remarks".
The judge adjourned the hearing saying the court would investigate
the reports submitted by the experts before reaching a final verdict.
Beal Building saga has now counted six months since it began in
September 2000 following Electro Commercial's buyout paying over
three million Birr for the building. The debated floor price set
at the time by the City Works and Urban Development Bureau sparked
controversy as arguments popped up from different sides claiming
the starting price was not considerate of the existing market price.
The Bureau filed an appeal to the Court later on demanding for re-tender,
revising the floor price at 5.3 Br. Top
Unity College
to Launch Comprehensive Website on Ethiopia
BY MARY DEJENE
Fortune Staff Writer
The enterprising Unity College announced its plan of launching a
new website it claims to developed at a cost of 3.5 to five million
Br.
The website, AnythingOnEthiopia.com, took three months to build
and about to go online in three weeks time. The plan was to launch
the website on March 1, but had to be postponed due to some revision
works that needed to be done, according to Yikirta Alemu, IT project
director at the College.
Even though a maximum of five million birr for a website seems a
bit exaggerated, the IT manager said it is nothing compared to the
conducive work that is being carried out including the cost of servers
and of manpower involved in the project.
An IT expert also commented, "the figure could be exaggerated but
there is no reason why that much amount would not be spent on the
project if we are talking about modern equipment such as servers
and software, and counting the cost of IT Experts."
"The attempt by the College to install a Very Small Aperture Terminal
(V-SAT), that allows the use of small fixed satellite antennas in
providing highly reliable communication between a central hub and
almost to any number of geographically dispersed sites, could not
yet be realized because of some problems with the Ethiopian Telecommunications
Corporation (ETC)," the project director said.
"Even though UNESCO offered to provide us with all the facilities
and installations for free, ETC refused saying they should handle
the installations themselves," said Yikirta
Preliminary negotiation between the College and ETC is underway.
According to Yikirta, the website, to be launched with an objective
of bridging the information gap, is part of African Portal Project
that will engage in any Internet based design.
The site incorporates seven web pages including travel and tourism,
entertainment, news line together with the general information section
that has nine sub topics focused on history, society, economy and
politics.
The project head noted that the news section that is integrated
in the website would be updated three to four times a day. It contains
elements such as press and magazine reviews and "Good Morning Addis"
that deals with the quotidian life of the capital such as traffic
circulation.
"The site is hosted in the U.S. and we will strive to update the
information as timely as possible," promised Yikirta.
The travel and tourism part is designed to promote Ethiopia worldwide
and would enable people to benefit from an online tickets sales
services, while a travel guidebook featuring the weather conditions
and other relevant information has been made available, according
to the IT head.
Selection of music, theatre and games are components of the entertainment
page, while the business section gives information on auction brokerage,
import-export and virtual trade show. Goods for sale will also be
displayed at the shopping center section.
"Visitors of the website can pose inquiries on anything that might
not be available through the inquiry page," Yikirta said. "They
can even check on their family by filling an online form."
Visitors will be required to pay special service charges varying
according to the requests, although the IT head promised to maintain
"an affordable fee."
Thirty five people are participating in the development of the website,
of whom 90pc are students of the College.
"This number will grow to reach more than seventy once the website
is launched and we will give priority to our students to provide
them with job opportunities," he said.Top
IT Companies
Cry Loud Over a Parliament Bid
BY MARY DEJENE
Fortune Staff Writer
Two weeks after the Federal (Fed) Parliament awarded close to a
one million Dollar networking project to computerize its documentation
systems to GCS/NCR, the decision has triggered complaints from local
IT companies.
The Parliament had awarded the project to GCS/NCR on February 16
after five other IT companies, SbC Net, Excel IT, EMJ Data Systems
& Dora Net Plc, Router Engineering and Snap Trading, had contended
the winner in the bid to take-over the project, financed by the
Inter-Parliamentary Union.
Dora Net's owner, Zewdnesh Gebremariam, described the whole process
to award the job as "unfair".
"The Parliament told us we were disqualified because we could not
fulfill the technical specifications that has 70pc of the total
winning point," Zewdnesh said, "but our proposal was more than satisfactory."
She said her company forwarded its bid documents in three volumes,
which was produced in partnership with a Canadian IT company named
EMJ Data Systems, offering 676,568 Dollars to carry out the job.
"They told us we do not have a manufacturer's authorization for
each equipment we proposed, despite our attachment of a single authorization
valid for all the equipment from one company," she said.
The company attached references of close to 90 international IT
projects carried out by EMJ including projects at the Ministry of
Education, the Ethiopian News Agency and UN computerization and
networking projects in Ethiopia, Zewdnesh claims.
What was even more absurd to her is: "they have asked for us to
bring letters from each of the 90 companies," she said.
Another reason the bid committee disqualified the company was that
the proposal for supplying the required material was taken from
the Internet, according to Zewdnesh.
"They said we have to produce it ourselves although information
from the Internet was the best anyone could offer," she said.
"We gave a manufacturer price but they did not want to take that
into consideration. As 85pc of the value is for the supply of equipment,
the financial bid had to be opened and evaluated before the project
was awarded," she said.
Chairman of the bid committee of the parliament, Tamir Kebede, has
declined to comment on the issue saying that the committee had already
given clarifications to the disqualified companies.
"We gave them a written explanation that we believe is satisfactory
to them," he said adding that if disqualified companies have any
further claims, they are entitled to challenge the committee legally.
However, Teshome Ejigu, CEO of EXCEL IT, another disqualified company,
told Fortune that he did not receive any written notice so far.
"They did not even bother to give us back our bid bond," he said
sounding disappointed.
The CEO is convinced that the bid should have been immediately canceled
because only two companies were short-listed, instead of three,
in contravention to normal public bid opening procedures.
According to sources, it was GCS/NCR and SbC Net were the ones short-listed
as finalists before the final selection was made.
"A government tender requires at least three finalists," he argues.Top
Djibouti
to Contract Airport Management
BY TAMRAT G. GIORGIS
Fortune Staff Writer
In a similar move several months back with its seaport, the Government
of Djibouti is soon to give the management of its airport to the
Dubai International Airport.
According to our sources, intense negotiations are underway for
the Dubai's take over of the airport with a possible commitment
to fly their world's best airline three times a week to Djibouti.
Observers believe that if successful, the deal will be a tremendous
boost to Djibouti's travel operations, whose citizens have to always
come to Addis to fly to Dubai or any other destination. Top
Economic Commentary
By Abebe Tadesse
Breaking the Forex Deadlock
The Governor of the National Bank of Ethiopia (NBE), Teklewold Atnafu,
was worried about the depletion of foreign exchange reserves.
Addressing a recent parliamentary meeting, he has disclosed plans
of liberalization and winding down of forex market as well as weekly
auction, while, at the same time, having at hand coffers of foreign
exchange reserve getting near to nil.
Measured in weeks of import (net of aircraft and extra food), the
reserve position of the country has been showing a slow upward trend
in the past couple of years.
The chronicle goes this way: in 1991/92 it was almost nil, i.e.
enough only for a mere 1.3 weeks of import. A relatively better
reserve position was achieved in 1992/93 where reserves increased
to 14.7 weeks of import. It went on increasing to 28.3 weeks of
import in 1993/94 and 33.1 weeks of import in 1995/96.
This recovery in the foreign exchange reserve position was attributable
mainly to the balance of payments support provided by international
financial organizations and other donors.
However, a decline was registered in 1996/97 where the reserve position
decreased moderately to 22.6 weeks of import. A further decline
in the reserve position of the country was exhibited to 18 weeks
the following year.
Now, according to Teklewold's account, the current reserve position
is expected to only cover 9.5 weeks, but having a grim situation
of dependability on external assistance even to maintain this reserve
position.
Teklewold sounds very much optimistic, about the would-be-good result
of the introduction of regulation that would allow banks to tap
foreign exchange that ends up to their hands.
He assumed that liberalization of the current forex market would
narrow the exchange rate gap between the official and the black
market rate, if not it reduces the rate of speculation by individuals.
However, having near to nil coffers of foreign exchange reserve
(thanks to the donors even for the existing), the Governor should
bear in mind that liberalization could only make faster the depreciation
pace of the Birr against the Dollar and would make higher the rate
of speculation.
Depriving access of priority to foreign exchange, which has been
given to various investment undertakings, including importation
of different necessity items such as medicines, fuel oil, fertilizer
and spare parts, and making foreign exchange market open to all
imports, would only hurt the economy. And falling on unnecessary
ground due to misallocation would drain the scarce foreign exchange
reserve.
Currently, the exigent question is not and should not be how to
change the system of foreign exchange marketing. It should rather
be how to break the deadlock of foreign exchange constraint with
one's own resources.
Teklewold boded ill that trade deficit may reach 1.28 billion Dollars
in the current fiscal year.
A chronic trade deficit has remained to be the dominant feature
of Ethiopia's merchandise of external trade in the past two decades.
With relatively small and stagnating exports and sizable imports,
the trade deficit has generally been widening throughout the period.
Trade deficit has increased from 43pc (an average of 1994/95 to
1997/98) to 60.5pc in 1998/99 and further increased in 1999/2000
to 68.5pc.
In terms of Birr, trade deficit has increased by 19.5pc form 6.6
billion Br in 1998/99 to 7.89 billion Br in 1999/2000. And this
year, it is expected to increase by 14pc, if we go by Teklewold's
reckoning.
The trade deficit has been in a general state of expansion since
1995/96 owing to the increase in imports in contrast to the declining
export earnings, which reflects the erosion of the trade share for
traditional products, as well as the existence of policies that
discourage private investment and diversification into products
for which world demand is growing more rapidly.
In addition to the depressing effect on income and growth, external
factors, coupled with a failure to diversity exports and attract
private capital in the previous decades, increased the economy's
dependence on foreign loans and aid from time to time.
Without exports, the imports needed for development can not be acquired.
The only other possible means (which Ethiopia can use to its advantage)
in order to pay for imports are flow of private foreign capital
and official loans and grants from developed nations, which seem
very unlikely to alleviate this problem in the foreseeable future.
There is large and higher significant correlation between export
volumes and the availability of imported inputs. Imports are required
as inputs into export activities. In conditions of import compression,
even the export sector may be unable to maintain supplies, hence
be forced to reduce output. This in turn reduces foreign exchange
earnings, leading to further import cuts, and so a vicious circle
is under way.
In an economy where there are foreign exchange constraints, exports
provide the critical means for purchasing increased imports. Thus,
a good export performance (to earn foreign exchange) is paramount
to sustaining import liberalization.
Therefore, financial incentives should be given to the export sector
in the form of low interest rate, preferential policy loans, and
priority allocations of credit and foreign exchange.
Ethiopia is heavily dependent on its earnings from primary product
exports, and its share in the global market is declining gradually.
While adverse terms of trade and other external factors also contributed
to this decline, poor export performance takes the major share for
the foreign exchange constraints that are becoming acute, aggravated
in some cases by extravagant commodities that may also in some cases,
be locally substitutable.
Evidently, fairly managing foreign exchange reserves enables the
country use its foreign exchange rationally and facilitate servicing
its foreign debts and meeting other international commitments Top
Fortune Restaurant Review
He Ra Fast Food, Restaurant & Bar ****
Tel: 655316
Debre Zeit Road, Mekwor Plaza Building 2nd Floor
SERVICE ***
The place occupies the entire second floor of the building and makes
available for customers two different arrangements in separate sections.
A large section that is designed in terrace format to reflect a
casual atmosphere is reserved for serving fast foods, although you
can order any of the dishes that the restaurant offers in this area.
And a beautiful dinning room with appealing setup is found on the
right side of the floor. But, it would be recommendable if the restaurant
be delivers the quality service customers get in the dinning room
at the fast food area as well. This area appears to be the preference
of most people coming to the place. Although a courteous and polite
lady gives top treatments to customers who choose to be served in
the dinning room, the other section seems to be lagging behind in
this regard inspite of the large deployment of attendants in this
quarter. There is an extended delay for orders to arrive, while
waiters fail to show efforts to establish good communication with
customers. For instance, they were not observed inquiring what is
missing or something to be added etc but rush here and there in
a disorganized manner. Once they bring the orders, they do not mind
to check on their customers and have to be beckoned or waved at
to be summoned. It may have related to the fact that this part of
the restaurant is capacity full during lunch hours and they might
not have time to spare for frequent attendance. But that would not
be good enough excuse to open a perception of negligence. Some customers
can easily be convinced to think that way. Perhaps it may not be
a bad suggestion for the managers to think of increasing their workforce
to fill the gap.
Furthermore, there is only one lady assigned at the interior dinning
room. Although she is doing a great job, it might be difficult for
her to maintain professionalism and accord efficient service all
by herself at times when the place fills up.
FOOD ***
The place offers European dishes and fast foods all of them having
a seizable quantity. But the chefs should try to improve the taste
of the dishes. Spiciness is the main component in any food chemistry
that gives it a refined and savory nature with distinguished tastes.
In fact, that is what people are after - savor - and not always
quantity.
ENVIRONMENT ****
He Ra is a pleasant place. It offers a simple but appealing arrangement
and a cozy atmosphere to eat. Those who prefer to eat in a calm
and tranquil mood with properly laid tables can use the restaurant's
separate quarter made up to fulfill such desires of privacy. And
the ones who wish to eat in a casual, cozy and cordial atmosphere
surrounded with more people can order in the terrace-like area,
where fast foods and related stuff are prepared and served. You
can get served enjoying the overview of the building's surroundings.
But this particular quarter, with the large crowd it attracts, looks
somehow a little bit messy. That may be because the set up of the
tables and chairs is not symmetrical but appear to be randomly scattered
all over the place, unlike the dinning room, which has an impeccable
and attractive layout.
PRICE ****
The place offers relatively fair and reasonable prices for most
of its dishes. Sales or service charges are spared from the bill,
which contributes to its fairness and affordability. In contrast,
some dishes are overpriced. For instance, Goulash (18.00 Br) or
Lasagna (19.00 Br) do not simply go along with their quality, since
such dishes with a better taste at similar restaurants could be
found for 14.00 or 16.00 Br.
PARKING ***
The Restaurant shares the parking lot in the back yard of the main
building as well as the narrow strip in the front side (on the sidewalk
of the main Debre Zeit Rd.) with offices and other outlets. The
area in general is buoyant with different activities, hence attracts
many motorists who need a parking space. Therefore, people coming
to He Ra Restaurant may not find a parking position of their choice.
Nevertheless, it does not mean there is an acute shortage of parking
space. They can pull over a few feet from the entrance or just squeeze
in their cars in the front line, although the whole area is reliable
in terms of safety because there are enough security guards at hand.
SANITATION *****
There are two separate compartments for women and gents. The marble
floors and walls are very clean, even shiny, whereas facilities
required in restrooms have all been made available at customers'
disposal. Evidently, they are zealously looked after and well maintained.
Top
In My Perspective
Driving in Addis - II
Of Testosterone and Other Impediments to Driving
By Yonas Kebede
One Sunday night while driving on the road connecting "Haya Hulet
Mazoria" and Bole Medahenialem, not far from St. Gebriel Hospital,
(if only some of these streets had names), I noticed a tent pitched
in the middle of the road. A somewhat familiar sight in Addis by
now, you would think.
But this was different. The tent sported a large flag at the entrance
with music blasting from within. Tables and chairs overflowed on
to the sidewalk.
The small bar or hotel that must have been rented for a wedding
party was extended to the street completely blocking the southbound
lane. It was protected by large rocks, which also served as anchors
for the tent.
Similar boulders can be found fencing off vehicles under repair
on many a road.
Cars abandoned by owners who are gone hunting for a mechanic, a
spare tire or a loan from the bank, for all we know, can remain
on the road for days. Rarely does it occur to the Addis driver to
move his/her vehicle a few meters out of the way or, for that matter,
to remove the rocks afterwards.
At times, it seems as though practically anybody for whatever reason
can deny the public access to the roads.
The gardener who waters the plants at Goffa "mazoria", for example,
erects barriers at peak hours of the day completely blocking the
road in order to protect his water hose, within sight of the traffic
police who is lounging at the corner.
More surprising is the attitude of the usually feisty Addis driver
when it comes to these semi-permanent obstacles of the road. He/she
sheepishly shifts over and line up to use whatever space is left,
in complete and utter defeat. Not a single squeal from the horn.
Not far from where the gardener routinely erects barriers to protect
his water hose, is the crossroad where the Bishoftu [Debre Zeit]
Rd. meets Wello Sefer Rd. and where both roads cross the railroad
at the intersection.
With heavy trucks rolling to and from Djibouti, buses and taxis
double and triple parked when they are not making "U" turns, this
intersection is a traffic nightmare. Absolutely no one wants to
yield and every driver from every direction insists on the right
of way. The infrequent train is the only vehicle that commands respect
here.
"Confusion Square" is the name and gridlock is the game.
Two heavy trucks approach one another heading in opposite directions
attempting to cross the railroad where it is least bumpy. Each driver
insisting he has got the right of way. They are now a few feet apart,
crossing the rails, perched high in their cockpits, eyeball to eyeball.
Cross traffic is completely blocked. Drivers trapped on the designated
truck lane are furiously blowing their horns from behind. Truck
drivers own the left lane on Bishoftu Rd.
Suddenly, a traffic police officer rolls in past the southbound
truck on his shiny motorcycle.
Thank God.
But . . . he keeps on lolling, passes the gridlock without so much
as a glance in the direction of the trucks and disappears from sight.
He was the only one able to move. Maybe it was his day off or he
has got a hot date.
Anyhow, one of the truck drivers decided to yield and put us out
our misery. It was just one of those testosterone moments.
In Rome, this would have resulted in drivers out of their vehicles
to engage in heated arguments with hands flying all over the place.
In Los Angeles, where the testosterone level on the road is rather
elevated, bullets would be flying.
Small miracles.Top
Editorials
An Initiative Needing Urgent Implementation
Ethiopia's agriculture has not yet recovered from the crisis it
has been suffering from for long years now.
The causes for its low agricultural productivity are pretty all
known.
Erroneous agricultural policies, structural weaknesses, natural
disasters and other human related calamities such as wars and demographic
shifts have so far bedeviled the sector so much so that close to
eight million Ethiopians now live in permanently food deficit areas
relying on relief donations.
The recent announcement by the National Bank of Ethiopia (NBE),
that it is studying a new incentive package known as the Agricultural
Insurance Scheme, can be seen as a glimmer of light at the end of
an otherwise dark tunnel.
Because, although the greatest hope for a possible farm revival
came following the free market economy the government adopted some
nine years ago, due to various reasons, the sector has failed to
attract enough private investment that would translate this hope
for rural revival into palpable reality.
The agricultural reforms such as land distribution or the extension
package programs have not so far managed to extricate the sector
from the doldrums.
One of the reasons for this is the absence of strong incentives
that would encourage investment in the sector. Erratic weather conditions,
crop failures and poor infrastructure have so far discouraged investors
to allocate enough money and technology to effect a radical change
in farm productivity.
This has in turn damaged the country's export sector that heavily
relies on agricultural products.
Nonetheless, under this scheme, we believe, private investors who
put their money and technology in agriculture would be insured against
losses incurred due to damaged crops or bad weather conditions.
The insurance scheme could not have come at a more appropriate time.
Lack of security against natural calamities leading to crop failures
has been one of the factors that discouraged investors from engaging
in agriculture. The new scheme will definitely address this constraint
even if it may not address all the major weaknesses.
Even so, the scheme will have to be urgently implemented and not
be left on the back burner for an unnecessarily long time. Time
is obviously an important factor in this kind of initiative that
needs to be fairly and urgently implemented in order to effect the
expected change.Top
Put Agreements on Solid Ground
It is no doubt in Ethiopia's interest to enter into bilateral trade
and economic agreements with neighboring countries.
The recent Ethio-Sudanese high-level exchange of delegations has
to be seen in this light. We might even say that such a move was
long overdue given the geographic, historical and cultural ties
between the two countries.
The sad reality was that politics has been allowed to have the upper
hand over other matters and that economic interests were pushed
to the background.
Now Ethiopia and Sudan seem to be awakening to the realization that
economic and trade ties are more enduring than temporary political
differences.
The two countries are now embarking on an ambitious program of bilateral
cooperation on many fronts. They are planning to link themselves
by rail.
Sudanese port is expected to be accessible to Ethiopian import-export
goods. Sudanese investors are going to invest in Ethiopia, while
their counterparts here will do the same in Sudan.
In brief, the two countries are set on a course of unprecedented
breakthrough in their economic relations.
But one important thing should be made clear at the outset.
The two countries should not allow political matters to interfere
in this grand vision as they did in the past and lead them to unnecessary
controversies.
The governments of the two countries will have to match rhetoric
with facts on the ground. They will have to set on a realistic course
of economic cooperation and not embark on an illusory journey that
may be interrupted as soon as it is started.
The two countries should start by openly and clearly setting aside
their differences and by displaying honest determination to make
their newly found love affair a lasting one.
Their new agreements must not be based on political expediencies
or opportunism but on serious commitment because they are going
to affect the lives of tens of millions of people in the two countries.
They will have to learn from similar agreements in the past that
failed to deliver the promises simply because they lacked trust.
They will have to put the new agreements on genuine and enduring
trust that would not be shaken by whatever differences that might
arise in the process.
Most of all, the two sides should urgently work out the details
or the modus operandi of these ambitious agreements and projects
so that the peoples of the two countries endorse them fully and
work hard for their implementation.Top
Opinion
Drop the Stone on the Right Feet
By Yosef B.
The storm that was raised in Parliament a couple of weeks ago in
connection with revelations about the Ethiopian Privatization Agency
has now died on the shores of official insensitivity or a 'conspiracy
of silence' or premeditated cover up.
The Board of the Agency was criticized as being the dominant force,
the maker or breaker behind the management, against whose decision
no appeal is possible.
And yet, it has not lifted a finger to challenge this allegation.
Curious! Isn't it?
It is no secret that Assefa Abreha, the chairman of the Board, is
the real boss behind Beshah Azmete. It is no secret that the ruling
party is behind Assefa.
The point, however, is not who is behind whom. The point is why
anyone involved in this opaque game going on behind the Privatization
Agency has not so far come out to respond to the criticism.
Are the board members or the men that pull the strings inside it
or behind it, more powerful than Parliament?
Should Parliament summon the "puppets" and ignore the "puppet masters"?
One of the things that make Parliament suspect is this lack of transparency
or initiative to bring the real culprits to the fore and follow
up their deeds and misdeeds until everything becomes clear and matters
are settled in a satisfactory manner.
A couple of weeks ago, Parliament lifted a big stone when it harassed
Beshah Azmete, general manager of the Privatization Agency, with
questions he could not properly answer. But Parliament is still
holding the big stone and I am afraid it might drop it on its feet
unless it follows the case up to its logical limit or unless it
lives up to the public expectation of justice and fairness to prevail
in the activities of the Agency.
My hope is that Parliament did not lift a stone only to drop it
on its own feet, as a Chinese proverb has it. That would be disastrous
for its credibility.
I personally want to see it drop the stone on the right feet. I
hope you understand what I mean by this. Yes, the stone has to be
dropped on the responsible feet.
The governing party often portrays itself as a camel. Addressing
its political opponents, it calls them, "dogs that bark at the marching
camel." A recent cartoon in one of its newspapers said, "The dogs
are still barking but the camel has continued its journey."
Anything might be justified in politics and calling names is the
usual practice of politicians. Nevertheless, not so in matters of
economic development. We do not want Parliament to become a clone
of the metaphoric camel or the few critics within it to be dubbed
the "barking dogs".
But unless the few critics in Parliament continue to wage their
struggle against the insensitivity or the indifference of the management
or the Board of the Agency, they run the risk of becoming metaphoric
dogs that bark but never bite.
The controversy over the Agency is not something that should be
allowed to get away with that.
It is a serious matter.
It is a matter concerning the national assets that were produced
by the sweat and sometimes the blood of generations of toiling citizens.
The responsible persons inside or behind the Agency should come
afore and tell us about what they think about the public and parliamentary
allegations of nepotism, corruption, unfairness, abuse of power,
inefficiency, lack of transparency and what not.
They should not expect or try to have a peaceful sleep with all
these things weighing on their conscience. They should not try to
sleep with their alleged sins. They should say their prayers before
going to bed.
We have a saying in Amharic: It is hard to wake up he who feigns
sleep.
The pertinent officials at the Privatization Agency - or behind
it - are simply pretending that they are asleep and that they do
not hear anything.
No, they are listening.
They are listening but they are keeping quiet because the burden
of guilt might be weighing too much on their conscience. They should
not be allowed to get peace of mind unless they unburden themselves
of the public responsibility they were entrusted with.
Moreover, Parliament has the duty and the responsibility to make
the wake up call - now or never.Top
View from Arada
I Too Have a Dream
By Girma Feyissa
Dreaming is a natural virtue everybody is entitled to.
It is inevitable.
Some dreams come half true. Others full. Some dreams beget other
dreams. Teodros had a dream to unite Ethiopia and create a regional
power to be reckoned with. He had started a factory of weaponry
at Gafat. The huge Sebastopol was built and dragged uphill for six
months to the apex of Mt. Meqdala, though triggered only once and
for all. It is now in ruins, perhaps waiting to be revisited as
a historical treasure and relic. Teodros' dreams came true even
if some materialized only a century later.
Menelik had a dream.
He wanted to modernize Ethiopia. He introduced telegraphy, telephony,
electricity, vehicles, tap water etc. He was fortunate enough to
see some of his dreams come true while alive even if some took time
because of internal and external oppositions. The introduction of
the railway transport system to Ethiopia is a good example to look
back.
When Menelik approached the French to construct a railway line linking
the mainland Ethiopia with the Port of Djibouti, the British were
opposed to the idea as the then trade center, Zeila, would lose
its importance and French influence in the area would grow.
The local people did not like the idea of the train because they
were to lose business from camel caravan transport service they
were rendering for import and export of goods.
The opposition also came from his wife, Etege Taitu, members of
the royal family and the ruling orbit on the grounds that the railway
line will facilitate external forces to have access to the hinterland
and invade the country. But Menelik persisted.
Eight years had elapsed before actual construction work started
in 1897 from Djibouti, which was created as a port following the
railway construction as the former capital Obok was not suitable.
The time was spent on negotiations, fund raising and share floating.
The construction took five years to reach Dire Dawa, a trade center
established in 1889. There was a long pause before work continued
from Dire Dawa, which was in 1909. By 1915, the line had reached
Akaki and two years later (1917) the capital was linked. It took
not less than 20 years to realize a route distance of about 781Kms
- from Djibouti to Addis Abeba.
A little over a century has elapsed since the construction of the
first and so far the last railway line had started. Menelik did
not live to see his dreams come fully true.
But they did.
Right at the southern end of Churchill Rd. (it would have been very
proper if it were General De Gaulle Rd. since it leads to the Ethio-Franco
Railway Co. as it was known then) there stands majestically the
typical railway station, a glamorous building popularly known as
"La garre" or "Legehar" in its Amharic conversion. It has a magnificent
architectural perspective that is commandeering the vicinity and
can be seen from almost anywhere, particularly from City Hall edifice.
The same model is found at Djibouti and Dire Dawa or anywhere in
Europe for that matter. I had once an opportunity to pay a visit
to the Dire Dawa workshop where I saw such a big and well organized
maintenance center with a foundry, perhaps, the first of its kind
in the country.
The repair crew were able men who were capable of modifying and
rectifying every bit of the rolling stock, locomotive engines, track
interlocking systems, communications and other accessories. Of course,
it has to be said that the track width and weight bearing capacity
of our railway system is obsolete and below standard. It is only
about one meter wide, while the rest of the world has 1.43 meters,
the load bearing capacity ranges between 25 to 30 kilos per Sq.
meter, while the rest of the world reaches up to 70 kilos.
These shortcomings are serious impediments for the system to carry
more weight and run faster. Some people amicably call our railway
line the Camel Train!
The media distance themselves from the system and are not often
giving a closer look at its problems and functioning.
The construction of interurban roads and the deployment of motor
vehicles both for freight and passenger transport has rendered the
static railway less competent leaving it almost to the exclusive
use by traders who try to smuggle in some commodities. These people
make holes in the walls of the coaches and wagons to hide contraband
goods and wares.
The Ethiopian and Djiboutian governments jointly manage the railway
system on a fifty-fifty share basis, a rather strange arrangement
considering the track length and the number of staff each country
has. The system does not seem profitable owing to its inefficiency.
It is about 480Kms from Addis to Dire Dawa, but it now takes more
than 24 hours to cover it. The tracks lay idle for 36 or more hours
once a carriage passes to one direction.
This must be awful to transport economists.
Elsewhere in the world, a train arrives or departs every five or
so minutes. This distance should have been covered within six hours
at the most.
Railway transport is advantageous for bulk and sustainable freight
of any form - solid or liquid. Ethiopia's bulk freight so far is
the food aid and fertilizer. On the export side, it is coffee, hides
and skin, livestock and some cereals. It is against this background
that we are now dreaming to construct a railway line that could
link the neighboring countries Sudan and Kenya to Ethiopia.
Incidentally, the late Emperor also had a dream to link Ethiopia
with Kenya via Awassa, Dilla, Negelle Borena, Mega and Moyalle.
The Derg had also dreams to supplement the motorway to Assab by
a modern railway track that would use the Tendaho geothermal power
potential. An Indian consulting firm has made a pre feasibility
study whose revision escalated the project estimate to US four billion
Dollars if my memory serves me right.
I mean there is nothing wrong in dreaming.
I have a dream (to borrow the popular phrase from Martin Luther
King Jr.) for example that one day we may be able exploit the iron
ore in Wellega manufacture steel tracks, lay them en route to Gojjam
or Tigray, load marble boulders or quartz stones for export along
with the fertilizers that this country would provide for the regional
market in the Horn.
I have a dream that one day we shall interlink the countries in
the Horn of Africa both by rail and road as well as telecommunications
and make the dream of a uniting Africa a reality, completing the
Cairo/Gaboroni continental road link and realizing the Panaftel
communications project including RASCOM, the Regional African Satellite
Communications project.
I hope I would live long enough to see some of my dreams come true.
EPRDF has also dreams to link Gedarif, the Sudanese border town,
with Moyalle on the Ethio-Kenyan border.
This is a distance well over 2,000Kms although the estimated project
cost is reported to be $1.5 billion.
It is a nice dream to contemplate!
Isn't it?Top
Economic and Investment Indicators
Recovery of Gold Price Over the Years
By Abebe Tadesse
In the early decades of the 20th century, many treasure hunters
had come to Ethiopia in quest of gold.
Numerous mining concessions had been granted and much heat and excitement
had been generated in the centers of European finance.
Ultimately, however, the record was one of futility. After 1941,
however, a golden at Addle in Sodium proved to be a steady booster
of the royal coffers. In 1944, for instance, the official revenue
from Addle came to nearly a fifth of the total government revenue.
Appropriately enough, the name Addle was changed to Caber Mangiest,
meaning "glory of the state". In the public vocabulary, however,
signifying terror reigned in Addle both in the forced recruitment
of labor and in the conditions of penal servitude that prevailed
in the labor camp.
The popular saying during the Imperial time was then, "the roughest
place you could go is Adolla, the toughest you could pick is spade."
The trend of gold mining was full of vicissitudes but the lowest
level of gold production was registered in 1994/95 - only 112Kgs.
However, the activity level gained momentum in 1998/99, producing
3291Kgs of gold from 112Kgs in 1994/95, showing astounding growth
of 2,838pc. In terms of birr, the production of gold increased by
2496pc from nine million Br in 1994/95 to 233.6 million Br in 1998/99.
The difference exhibited between the rate of increase in value and
volume is the result of decline in gold price encountered in the
latter years in the bullion market.
The price of one kilogram of gold had declined by 32pc from 87,897
Br in 1995/96 to 59,764 Br in 1997/98 and recovered to 70,970 Br
in 1998/99.Top
Tender Mart
Suppliers of video camera, video mixer, video tape recorder and
other related items. Roads Transport Authority, Tel: 510244, Fax:
510715, PO Box 2504. Open on 17 March 2001. Publication Addis Zemen
25 March 2001.
Suppliers of combiner spare parts and uniforms. Ministry of Agriculture
Tel: 151518, 153261. Open on 16 March 2001. Publication Addis Zemen
25 March 2001.
Suppliers of factory consumable items, electrical materials and
stationary items. Ministry of Defense Project 40720, Tel: 339944.
Open on 27 March 2001. Publication The Ethiopian Herald 25 February
2001.
Contractors of category GC/RC 1 for the construction of BAMBASI
- TONGO RR 50 project. Transport Construction Design Enterprise.
Open on 20 March 2001. Publication The Ethiopian Herald 25 February
2001.
Suppliers of audiovisual equipment and accessories. Secretariat
of the House of Peoples Representatives & the House of Federation,
Tel: 556396. Open on 29 March 2001. Publication The Ethiopian Herald
25 February 2001.
Suppliers of tractors, implements, workshop equipment, air coolant,
office equipment and water pumps. Tendaho Agricultural Development
Enterprise, Tel: 514113, Fax: 513651. Open on 29 March 2001. Publication
The Ethiopian Herald 25 February 2001.
Contractors of category BC/GC 7 and above for different kinds of
maintenance works. Ethiopian Agricultural Research Organization,
Tel: 612633 ext. 278, Fax: 611222. , PO Box 2003. Open on 15 March
2001. Publication The Ethiopian Herald 25 February 2001.
Contractors of category GC/BC class 4 and above for the construction
works at Addis Ababa University Sidist Killo Campus. Ministry of
Education. Open on 22 March 2001. Publication The Ethiopian Herald
25 February 2001.
Contractors of category GC/BC class 4 and above for the construction
of remaining works of Gambella Regional Hospital at Gambella. Building
Design Enterprise. Open on 22 March 2001. Publication The Ethiopian
Herald 25 February 2001.
Suppliers of tractors . Bale Agricultural Development Enterprise,
Tel: 06-650430, PO Box: 02 . Open on 3 April 2001. Publication The
Ethiopian Herald 25 February 2001.
Suppliers of dump trucks. Coffee Technology Development & Engineering
Enterprise, Tel: 158920. Open on 3 April 2001. Publication The Ethiopian
Herald 25 February 2001.
Bidders for the purchase of Vehicles, building materials and other
equipment. Ministry of Economic Development and Cooperation. Open
on 9 March 2001. Publication Addis Zemen 27 February 2001.
Suppliers of tyres. Ministry of Agriculture, Tel: 151518. Open on
23 March 2001. Publication Addis Zemen 27 February 2001.
Suppliers of textile machineries and raw materials. Debre Berhan
Blanket Factory, PO Box 1338. Closing Date 30 March 2001. Publication
The Ethiopian Herald 27 February 2001.
Suppliers of used and new equipment. Woyra Transport Enterprise,
Tel: 654099. Open on 9 March 2001. Publication Addis Zemen 28 February
2001.
Suppliers of cloth for uniforms. Ethiopian Grain Trade Enterprise,
Tel: 166447. Open on 15 March 2001. Publication Addis Zemen 28 February
2001.
Suppliers of stationery materials. Ethiopian Electric Power Corporation.
Open on 15 March 2001. Publication Addis Zemen 28 February 2001.
Suppliers of graders cutting edges (blades). Ethiopian Roads Authority,
Tel: 530423, PO Box 1770, Fax: 514866. Open on 2 April 2001. Publication
The Ethiopian Herald 28 February 2001.
Suppliers of school laboratory chemicals, equipment and apparatus
for 3 lower secondary school. Tigray Education Bureau, Tel: 400940,
Fax: 04-402509. Open on 29 March 2001. Publication The Ethiopian
Herald 28 February 2001. Top
Business
Opportunities
Consultants, consulting architects and engineers of category 3 and
above for the consultancy service of new building and maintenance
works at Addis Ababa, Dire Dawa, Bahir Dar, Mekelle, Melkasa, Dessie
and Kokka. Palace Administration, Tel: 559758, Fax: 533900, PO Box
1738. Open on 28 March 2001. Publication The Ethiopia Herald 28
February 2001.
Cotton Seed: Daehyun Trading Co. Ltd. Address: 13F Hyowon B/D Song
PA-Ku Darak- Dong Zip Code 138-160 Seoul Korea, Tel: (02) 443-4507
Fax: (02) 443-8495(7) E-mail: Dhtrade@kotis.net.
Edible Oil: Refined, winterized and deodorized edible oils made
either form sunflower or sesame seeds in barrels or plastic containers.
Kang Brothers & Co. Address: RM3908 Trade Tower World Trade Center
159-1 Samsung-Dong Kangnam-GU 135-729 Seoul Korea Tel: (02) 893-1309
Fax: (02) 894-1309 E-mail: sung0817@unitel.co.kr.
Garment: HIC Address: 93-9, Jungkook 4-dong, Kwangjinogu Seoul,
Korea Email: georage@kornet.net.
Children Clothes: Cotton/t-shirts, and sweater for U.S.A. or Europe
stock lot clothes with full details (color, size etc) and photo
or one sample. Ilshin Power Tech Address: 6f, Ilshin Power B/D,
436-46, Changsindong, Jongro-Gu, Seoul, Korea Phone: 82-2-745-2254
Fax: 82-2-745-2253 E-mail: cmh5250@hanmail.net
Raw Honey Wax: 20x2 Tons of pure raw wax. Pamapa Export-Import Address:
Ataturk Bulvary Cenesyz Han 7-705 Samsun Turkey Fax: 09 362 435
1851 Email: papa@veezy.com
Branded Leather Bags: Global SI, Inc. Address: 3440 Wilshire Blvd.,
#1105 Los Angeles, CA 90010 USA Tel: 1-213-381-6780 Fax: 1-213-381-6959
E-mail: mrdscha@hotmail.com, Homeurl: http:/www.ec21.com/sigroup.
Readymade Garment and All kinds of Leather: Easyglory International
Company Address: 43, Idumagbo Avenue Lagos Island, LA LOS, Nigeria,
Phone: 234-1-2641166 Fax: 234-1-2641167 E-mail: easygloryinterco@37.com
Homepage: http://www.wbc.com/easyglory.
Blanket: 100% soft acrylic, fleece quality, no shrink no pill, and
no fade. Size 150x230cm, 200x230cm, and 220x240cm. Key Textile Ltd,
Address: 20 Anastasia Shoukri St. Lordos 2 DI LIMASSOL, CY 3105,
Cyprus Phone: 003575 581809 Fax: 003575 580352 E-mail: keytex2@cytanet.com.cy
Homepage: http://www.wbc.com/din.
Cotton/ Poly Cotton Weaving/ Knitting Yarn: Movers & Shakers Intl,
Address: 40 Balcombe Road, Mentone, Victoria, 3194, Australia, Tel:
613 95853199 Fax: 613 95852088 E-mail: mover@one.net.au.
Cotton Knitwear: Ajay Agarwalla & Associates, Address: 4, Sambhunath
Pandit Street, 1st floor Calcutta- 700020 India, Tel: 91-33-2235213
Fax: 91-33-2483649 Email: succ24149@rediff.com.
Polyester and Cotton Yarn Stock Lot: Al-Shabka General Trading,
Address: PO. Box 50396 Dubai, United Arab Emirates, Phone: 0097167470617
Fax: 0097165529481 E-mail: alshabka@emirates.net.ae Website: http://trade.swissinfo.net/vec/2/.Top
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