Ethiopia: Chinese company warns to pullout

  1. Posted on Tuesday 10 March 2009 - 16:55
    Yohanes
    Image of Yohanes
    Andualem Sisay, AfricaNews reporter in Addis Ababa, Ethiopia
    Chinese Bridge and Road Corporation (CRBC), a local subsidiary of a state-owned Chinese construction firm, has warned Addis Ababa Road Authority that it will stop work on three major new roads unless it is paid for past projects.
    road construction
    CRBC Addis Engineering served the notice to the Addis Ababa City Administration Urban Development and Works Bureau. It asked them to take immediate action so that the road Authority can release their payment before March 20, 2009. The notice said if the Addis Ababa Road Authority failed to pay the money, CRBC will immediately stop construction of three major roads at hand.

    Currently, CRBC is undertaking three road construction projects in Addis Ababa, which totally costs over USD$40 million. CRBC indicated that the rising cost of construction materials, combined with the failure of the authority to free the project sites from the ownership claims, has delayed the projects and put a stress on the company’s finances.

    The Addis Ababa Road Authority failed to pay around USD$13.5 million (148 million Birr) to CRBC for finalized phases of the project before the deadline of March 2, 2009. CRBC claims it owed close to USD$8 million (83 million Birr) for phases already completed and the balance for ongoing projects.

    According to the warning letter, in Ethiopia, CRBC has successfully completed nine projects and another seven are suffering delays due to mainly site possession problems.

Latest News

  1. AFCON: 46 hurt in Zambia victory celebrations09/02Over 40 casualty cases were recorded Wednesday night at Zambia's University Teaching Hospital (UTH) after post-match celebrations turned violent …
  2. African Peer Review Mechanism making progress08/02In 2003 the New Partnership for Africa's Development (NEPAD), the continental development plan, initiated the African Peer Review Mechanism (APRM…
  3. Combating HIV infections among African women08/02With a lack of knowledge and power, African women continue to bear the brunt of HIV infections.
  4. Legume cultivation booms in Western Kenya07/02Small Holder Farmers (SHFs) who traditionally relied on seed companies for all their seeds are now bulking their own legume seeds for their farms.
  5. Malawi vendors chase out Chinese07/02Vendors in Kalonga, the Northern district of Malawi, on Wednesday petitioned the District Commissioner to flash out all Chinese nationals who are doin…
  6. Zim: Informal sector urged to join HIV battle05/02While the Harare City council is busy engaging in running battles with city vendors, Health Minister has called for authorities to devise ways to form…
  7. Elections: Wole Soyinka warns Mugabe, Wade03/02The Nigerian Nobel Prize winner for literature said heads of states who are trying to cling to power suffer the same fate as the dictators who were sw…
  8. AU elections rescheduled for June in Malawi01/02Following a deadlock during Monday's African Union elections, with a tie between former wife to South African president Jacob Zuma, Home Affairs …
  9. Senegal in turmoil as protest intensifies01/02Hundreds of anti-government protesters Tuesday gathered in the central Dakar, Senegal to show their dissatisfaction over the incumbent president Abdou…
  10. Zimbabwe’s inflation still favourable -…01/02Zimbabwe's annual headline inflation still compared favourably with economies in the region, Reserve Bank of Zimbabwe Governor Gideon Gono said o…
  11. AFCON 2012: Sudan qualifies after four decades31/01The Sudanese national team has sealed a historic win over the Stallions of Burkina Faso.
  12. Senegalese opposition to intensify protests31/01Opposition and civil society groups in Senegal have vowed to increase their fight against incumbent President Abdoulaye Wade's presidential bid.
  13. Malawi: Rights coalition condemn stripping of…30/01The 39 members of the Solidarity for African Women's Rights Coalition based in 18 African countries have vehemently condemned the stripping of wo…
  14. Kenya to deworm five million children annually30/01Kenya launched the second phase of its national deworming programme at the World Economic Forum Annual Meeting 2012, aiming to treat 5 million childre…
  15. Benin’s Yayi Boni is AU’s new…30/01President Yayi Boni of Benin Republic has been elected chairperson of the African Union in the Ethiopian capital Addis Ababa
News archive