Derba-Midroc Cement Plc, a subsidiary company of Midroc Ethiopia, has reportedly selected the China Housing and Building Company (CHBC) for the turnkey construction of a brand new cement factory near Chancho town, 40km north of Addis Abeba, in the Oromia Regional State.
Established with a capital of 2.4 billion Br, Derba- Midroc has received a 123.42ha plot to erect a cement plant with a production capacity of 7000tpd. When completed, the factory is projected to manufacture an amount twice the size of what the state owned Mugher Cement Factory is producing now.
According to reliable sources, the management of Derba-Midroc, led by former State Minister of Infrastructure, Haile Assegdie, and their consultant, the Indian Holtech, has already picked CHBC over other bidders.
Two other companies, the Turkish Enka and the Chinese Sinoma had appeared as bidders when the tender opened on September 18, 2006. The first built was Messebo Cement Factory, in 1998, at a cost of 1.2 billion Br. The Chinese Sinamo has been awarded the third expansion phase of the state owned Mugher
that is projected to increase its daily production capacity from 2000tpd to 5000tpd; the contract, worth 1.13 billion Br, was signed on December 6, 2006, at the Sheraton Addis at 6pm.
Derba-Midroc’s major shareholder, Sheik Mohammed Ali Al-Amoudi, and representatives of CHBC are scheduled to sign a contract amounting to 2.6bn Br on Tuesday, reliable sources told reporters. Close to 60m Br of this amount will be spent on building roads to the project site and setting up camps, according to a senior manager of Derba-Midroc.
In a midst of serious of cement shortages in the country, which halts the vibrant performance in the construction industry, the Ethiopian government puts high importance on the successful completion of this factory; it will close a gap between demand and supply that is believed to have reached exceptional levels.