Page 1 - Print Version of Volume 18 - Number 900
P. 1

Volume 18 No. 900, SUNDAY, July 30, 2017 Content Matters

      SUNDAY220 Mon Tue Wed Thu Fri Sat
                                                                       190 190 180 190 200 180
                                                                       130 140 140 140 120 120
                                                                              E i g h t ( 8 ) b i r r o n ly

Transformer Procurement Saga Re-emerges

Procurement Agency demands a payment of 21.5 million Br from Fedders Lloyd Corporation

         By HAWI ABDISA                     agreed to supply 338 million Br            the execution file on July 24, 2017,                                            338m Br                                               Commercial Bank of Ethiopia (CBE)
                                            worth of transformers to the former,       following the application of the                                                                                                      as a performance guarantee bond to
    FORTUNE STAFF WRITER                    which was a purchase made on               judgment debtor, Fedders Lloyd                                                  The cost of the                                       supply the transformers.
                                            the behalf of the then Ethiopian           Corporation, which requested the                                                 transformers
The Federal High Court has revived the      Electric Corporation, the service has      court for the lift of the ruling to pay                                                                                               Accordingly, the court ruled in favour
execution case between Fedders Lloyd        only received 61 million Br worth          21.5 million in its absence.                                                                                                          of the Service, ordering the absent
Corporation Limited and the Public          of transformers so far, saying the                                                                                                                                               debtor to pay the sum. Prior to
Procurement & Property Disposal             products are below the standard. This      On July 12, 2017, the court received                                                                                                  opening the execution, Fedders Lloyd
Service (PPPDS) that have been              has been lingering as an audit gap in      a claim from PPPDS, who is the                                                                                                        had agreed to make the payment
fighting over a sale of transformers        the accounts of the Service over the       judgment creditor, in this case,                                                                                                      during a negotiation that was held at
and underground wires.                      past three years.                          demanding the court to order Fedders                                                                                                  the Office of the Attorney General Civil
                                                                                       Lloyd to pay it the money which the
Although the Service and Fedders            The Seventh Civil Bench reopened           judgment debtor deposited at the                                                                                                                                (Continued on PAGE 10)
met four years ago after the latter

Djibouti Requests Assistance for Rail Electrification                                                                                                                                                                        Dashen Diverts
                                                                                                                                                                                                                             to KPMG After
 The 756km railway which extends from Sebeta to Doraleh needs a total of 25kv overhead catenary electric power                                                                                                             Deloitte Pullout

       By FASIKA TADESSE                                                                                                                                                         $4.2b                                            For the project,
                                                                                                                                                                                                                              Dashen has allocated a
    FORTUNE STAFF WRITER                                                                                                                                                     Total Cost of the project                         total of 40 million Br

The ministerial committee formed to                                                                                                                                               25kv                                              By FASIKA TADESSE
oversee the operations of the Ethio-                                                                                                                                                                                             FORTUNE STAFF WRITER
Djibouti railway will meet before                                                                                                                                                             Power supply needed            Following the withdrawal of Deloitte
the end of this week to decide on                                                                                                                                                             to move the trains and         Consulting Plc from the ongoing
who and how to cover the electric                                                                                                                                                             locomotives in each station.   tender process, Dashen Bank has
power supply cost for the railway that                                                                                                                                                                                       started a negotiation with KPMG
extends from Ethiopia to Djibouti.                                                                                                                                           12 hrs     Average time taken for               Management Consulting for designing
                                                                                                                                                                                        the electrified trains to            its management strategy.
Officials of Djibouti claimed they were                                                                                                                                                 arrive in Addis Abeba                Last Friday, representatives of KPMG
not informed that Djibouti is expected                                                                                                                                                  from Djibouti                        Management, based in Kenya, came
to contribute its share in covering the                                                                                                                                                                                      to Addis Abeba to negotiate with
electric power supply, according to a                                                                                                                                                   656km                                the executives of the Bank. But the
source close to the case.                                                                                                                                                                                                    management of Dashen asserted that
                                                                                                                                                                                         Rail track to be                    they need time to discuss it before
The committee, which includes Abdisa                                                                                                                                                     electrified by Ethiopia             making any decision, according to a
Yadeta, state minister of Transport,                                                                                                                                                                                         source close to the case.
and Mohammed Abdulkadir,                                                                                                                                                                100km                                With a total budget of 40 million Br,
Djibouti's transport minister, met                                                                                                                                                                                           Dashen Bank S.C. has been seeking
on July 21, 2017, at Sheraton Addis                                                                                                                                                     Rail track to be                     to hire a local or international firm
Hotel. The committee discussed the                                                                                                                                                      electrified by Djibouti              to redesign its management strategy
technical and legal framework of                                                                                                                                                                                             in a bid to place the Bank in a better
the railway system, when and how                                                                                                                                                                           Port of Djibouti  position and for greater domestic
to launch the transportation service                                                                                                                                                                                         and international competitiveness,
and detailed customs procedures and                                                                                                                                                                Nagad                     according to the management of the
tariffs for the transportation. During                                                                                                                                                                                       Bank.
the meeting, it was also discussed how                                                                                                                                                             Dewele                    Dashen announced the tender in
to cover the cost of the electric power                                                                                                                                                                                      January 2017, requesting proposals for
for the railway.                                                                                                                                            756 km                          Aysha                            the formulation and implementation
                                                                                                                                                                                    Adi Gala
The Ethiopian officials asserted that                                                                                                                   Total Coverage       Harewa                                                                      (Continued on PAGE 5)
Ethiopia would cover the cost of the
energy for the railroad in the Ethiopian                                                                                                                               Erer   Shinile
territory, while Djibouti has to cover the                                                                                                                                   Dire Dawa
remaining power. The two countries                                                                                                                              Afdem
did not have an agreement on the
power cost coverage, according to the                                                                                                                   Asebot  Mieso                                      Port of Djibouti
same source.
                                                                                       Addis Abeba / Sebeta                                   Awash                                                Sebeta
                                                                                                                  Modjo
                                                                                                                                              Metehara
                                                                                                                                Welenchiti
                                                                                                                         Adama

                                            The railway has a 756km length and         hours. The passenger trains can run                              317km segment from Sebeta to
                                            extends from Sebeta to the Port of         up to 160km/hr and the cargo trains                              Mieso, and the China Civil Engineering
                                            Djibouti. It has a length of 100km in      up to 120km/hr.                                                  Construction Corporation (CCECC),
                                            Djibouti.                                                                                                   which built the 339km line from
                                                                                       Inaugurated in October 2016, the                                 Mieso to Dawale, at the Djibouti
                                            The railway is expected to minimise        project was constructed by the China
                                            the time it takes to travel from Djibouti  Railway Engineering Corporation                                                            (Continued on PAGE 11)
                                            to Addis Abeba from three days to 12       (CREC), which constructed the

Horizon Settles 168m Br Debt for Addis Tyre
Horizon Plantations Plc, a specialised arm of MIDROC Group, has issued a payment of 168 million Br to the Ministry of Public Enterprises (MoPE) on July 25, 2017,
for the procurement of Horizon Addis Tyre after four years of having purchased the company. The payment was made to the Ministry following the agreement that was
entered between the two parties on May 10, 2017, to settle their court case which was at the stage of execution and about to auction off the plantation's properties.
Also, Horizon agreed to pay 121 million Br to the Ministry adding to 47 million Br of interest whereas the Ministry requested the freezing of the court proceeds based
on the settlement between the two parties. Horizon Plantation deposited the money to the National Bank of Ethiopia (NBE) last Tuesday. On the same day, it also paid
a state dividend amounting to 22.3 million Br, which was 57 million Br when it handed over the company in 2013. PLEASE SEE THE FULL Story ON PAGE 10.

Saving Deposits (2015/16)	                  Dashen (15.2b Br)	  BoA (9.3b Br)          Nib (6.5b Br)                     United (13b Br)                                             Awash (14.9b Br)                        LIB (4b Br)  BIB (2.3b Br)

Fortune is a weekly business newspaper published and distributed by Independent News & Media Plc. Tel: 251-011 416 30 20. Fax: 251-11-416 30 39. P. O. Box: 259, Code 1110. www.addisfortune.com. Price: 8.00 Br, Djibouti 400 FD, Somaliland 3,000 SL.
   1   2   3   4   5   6