China Civil Engineering Corporation (CCECC) concluded a 246 million dollar deal with the Industrial Corporation on July 1, 2015 for the construction of the Hawassa Industrial Park.
The project, with MH Engineers, as consultant, will be completed in nine months with a focus on garment manufacture and agro-industry.
Currently, there are four industrial zones in the country, three of them foreign-owned. The Eastern Industrial Zone at Dukem, the Lebu Industrial Zone which is owned by Huajian Group and Modjo Industrial Zone owned by George Shoe are the private industrial parks.
The only government owned Industrial Park is the Bole Lemi Industrial Zone. The 139 million Birr consultancy contract for phase two of this project was signed between the Ministry of Industry and DOHWA Engineering Co. Ltd. on April 1, 2015.
Construction of the Hawassa Industrial Park, which began subsequent to the signing of the contract. It includes 35 factory sheds and 19 buildings which will be used as exhibition halls, food courts, dormitories, and other purposes in the first phase. This phase will cover 100ha, while the remaining phase will add 200ha more.
“The number of factories intended to be included in the first cycle of the Industrial Park project is 35. Nevertheless, the government is requiring the construction of more buildings in the park,” Kalkidan Betre, CCECC’s Quality & Safety Department Engineer told Fortune.
CCECC was awarded the contract after being shortlisted in a competitive bid that saw the participation of companies such as Tekleberhan Ambaye Construction (TACON) and Rama Construction.
TACON, which was also shortlisted, was removed on the grounds that it formed a joint venture with a company that was not listed during bidding, sources disclosed to Fortune.
Investor demand has driven the Corporation to select Hawassa for the construction of the industrial park, Tinsae Yemam, customer service officer at the industrial parks corporation explained to Fortune, adding that geographical location, resource and infrastructure conditions of an area are important factors in the selection of industrial parks. Hawassa is also suitable due to the Modjo-Hawassa Expressway, other developing infrastructure and rich resources, he added.
For the second Growth & Transformation Plan (GTP II), the Industrial Park Corporation has planned to construct parks in Mekelle, Adama, Jimma and Bahir Dar. Furthermore, the Corporation will construct another industrial park in Addis Abeba in a joint venture with Ayka Addis Textile & Investment Group Plc.