Fourteen Companies Competitive Enough for Government Housing Projects

Published: Tuesday, 02 June 2015 Written by Fortune Sunday 31 May 2015 Page:16

The   companies selected by ECM I will bring their own technology and finance, government will prepare the land

The Ethiopian Construction Management Institute (ECMI) has shortlisted 14 companies that are found to be competitive enough to make a financial offer as well as engage in the government housing projects.

This marks the first time that foreign companies have been given the chance to engage in government housing development.

These companies are expected to bring their own technology and sources of finance, said Zinabu Tunu, communication director at ECMI. After these companies have to fulfil all the preconditions, the government will prepare the land for the housing sites while the companies will undertake the projects using their own financial resources.

As per the competitive international tender for expressions of interest (EOI), announced three months ago, 28 companies under three categories, local, international and joint venture private companies submitted their EOI to the Institute.

After analysing the documents of each company for almost a month and half, the Institute finally selected seven international, three local and four joint venture companies. Among the selected foreign companies are some from Turkey, China, Europe and the US.

The prequalification evaluation process was undertaken by a committee of experts from ECMI, the Ministry of Urban Development, Housing & Construction (MoUDHC) and Addis Abeba City Housing Construction Agency.

Documents included in the EOI showed design and building experience, annual turnover of the company, the type and quantity of equipment and professionals within the company, said Moges Tadesse, head of Flint Stone Engineering Plc, a local firm that has been selected.

This bid is meant to give access to private companies in the coming government housing projects which are also the part of the second Growth and Transformation Plan (GTP II), said Zinabu.

The next step will be that the government will specifically declare the number of houses it needs, the cost and time of delivery, based on which the companies are expected to make further offers, said Zinabu.

The institute may come up with its own designs, or the bidding firms will submit theirs with their financial offer, says Moges.

Mekuria Haile, minister of MoUDHC, had said in a recent interview that the government welcomed the participation of international companies, particularly in the 40/60 housing schemes. The Ministry plans to construct 2.45 million houses between 2015/16 and 2020/21, the period of the next Growth and Transformation Plan (GTP).

During his report to Parliament in January 2015, Mekuria had announced the government’s plan to begin construction of an additional 65,000 houses during the year with 74,000 completed houses to be transferred to owners in Addis Abeba.

At the beginning of the GTP I, the Ministry planned to decrease the percentage of old houses from 60pc to 30 pc, but so far it has only managed to reduce the percentage to 45pc. The ongoing housing projects have been able to create jobs for 58,681 people, less than the 73, 253 employment opportunities that were proposed. In the next GTP, the ministry has planned to create 600,000 jobs.

The Institute is yet to start the next step and submit its specification for the companies.

This content is published on ፡ Fortune Sunday 31 May 2015 Page:16

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