The 18-storey Nib Insurance S.C. headquarters construction is in limbo due to a falling out with the China Communications Construction Company (CCCC), marking two years in May 2023.

The insurance company has planned to build its headquarters on a 1,435 sqm plot around the Bole Dembel area and floated a bid five years ago. Though it was processed carefully, the contract handling has had a contentious history where the insurance company had been obliged to float the bid three times.

The first bid was dismissed following an objection by the Ethiopia Grade One Contractors Association claiming exclusivity of tender. The Ethics & Anti-Corruption Commission halted the second bid, which had problems separating civil and foundation works.

Multiple companies expressed interest in the bid, with CCCC finally bagging the contract with 810 million Br in October 2018. However, the construction was suspended after three years and nine floors were completed, citing different contractual disagreements between the parties.

Insurance President Zufan Abebe confirmed to Fortune that the construction project was suspended for close to two years due to contractual disputes.

Nib was established in 2002 with 658 shareholders and a paid capital of 14 million Br. Its paid-up capital has grown to 629.9 million Br while total assets stand at 2.23 billion Br.

At the general assembly held at an inter-luxury hotel in October, the Board of Directors told shareholders that negotiations are underway as they revealed a 179 million Br of gross profit.

There is palpable tension among all stakeholders associated with the construction project.

Insiders close to the project also told Fortune that the contractor had used the now-resolved conflict in the north as a pretext to jack prices to an unreasonable level.

"We're engaged in negotiations to resolve the issue," said Siraj Abdella, board chairman.

He pointed out that the Chinese contractor has requested price increments that the insurance firm finds too high. Siraj expressed considerable pressure from shareholders to either proceed with the construction or sell the project under its current state.

The recently appointed chairman implied that the insurance company is small and feeble compared with the enormous economic resources of the Chinese contractor.