The Ethiopian Roads Administration (ERA) has suspended 27 road projects due to security concerns, contractor disputes, supply chain disruptions, budget shortfalls, and surging compensation claims. These problems have hampered the construction and maintenance of 18,000km of roads nationwide. In the past six months, ERA has completed only four of the planned projects.
Mohammed Abdurahman, ERA's director general, presented a six-month performance report to the Standing Committee of Urban Infrastructure & Transport Affairs, outlining severe delays in initiating new projects, completing ongoing ones, and reviving stalled constructions.
The right-of-way clearance process has been a major hurdle, with only 108 km cleared out of a planned 665 km. Additionally, 127 km of a targeted 437 km has been identified and evaluated, falling short of expectations.
“Resolving these issues requires regional authorities' cooperation,” said Mohammed.
ERA's budget reached a record 97.5 billion Br this fiscal year, a 20 billion Br increase from last year. However, its real value has nearly halved due to the rapid depreciation of the Birr since last July.
Compensation disputes have also doubled, with 790 unresolved claims now burdening the agency. The Administration has 8.6 billion Br in unpaid compensation debt, yet has only managed to pay 1.49 billion Br out of a planned 4.5 billion Br in six months.
Mohammed says that there are concerns over inflated compensation claims. He called for a financial audit before payments are made.
“We can only pay intermittently,” he told Fortune, indicating the financial constraints ERA faces.
Hundreds of people displaced for road construction projects remain uncompensated, forcing many into financial hardship. In Amhara Regional State, families have been evicted from their homes for right-of-way clearance, with no payments to support their relocation.
Bayeh Mule, a 42-year-old father of four, was forced to vacate his home three years ago after officials informed him his land was needed for a road project. He was promised compensation following a valuation by district authorities, but the funds never arrived. With no alternative, he now rents a house for 400 Br per month to shelter his family.
"Many have been forced to leave the country illegally due to a lack of options,” Bayeh said.
He has submitted multiple requests for compensation to federal authorities, but each time, he was told to wait.
“We have been left sidelined,” he added.
For the Administration, right-of-way compensation remains the main problem, delaying projects, increasing costs, and disrupting supply chains, including fuel deliveries.
A policy shift in July 2024 transferred responsibility for right-of-way compensation to regional states, relieving federal authorities of the duty. This reform, introduced by the Justice and Urban & Infrastructure ministries, includes provisions for compensating psychological and social damages. The amendment seeks to end the current system where district officials conduct property valuations and then request payments from federal authorities.
However, regional governments have been slow to assume responsibility, according to Mohammed.
Awareness campaigns are still needed to push regional states to take charge of compensations, he says. Discussions have been held with officials from Oromia, Amhara, Benishangul-Gumuz, and Dire Dawa city administration to address the issue.
While ERA struggles with suspended projects, 42 road constructions are progressing well. Three projects halted last fiscal year have resumed. Most affected projects are in Amhara, Oromia, and Benishangul-Gumuz regional states.
The Administration plans to complete 17 projects within the next five months. Currently, ERA oversees 204 road construction and renovation projects covering 18,299 km. However, 12 projects have been suspended due to a lack of qualified bidders, inflated bidding prices, and insufficient competition.
Despite these setbacks, the World Bank-funded Meisso–Dire Dawa road project (142 km) is moving forward. Bidding is underway, and construction is expected to begin this fiscal year.
The Administration has constructed 463 km of new roads, achieving 72pc of its target. It has also strengthened and renovated 315 km, covering more than half of its 517 km goal. However, 38 km of planned work has been suspended due to security concerns in various areas.
Reconstruction efforts in Kombolcha, Amhara Regional State, which suffered severe damage during the armed conflict in northern Ethiopia, have not yet begun. Projects in Debre Markos remain delayed due to ongoing instability, while roadworks in Shashemene, Oromia Regional State, have been pushed back due to heavy rainfall over the past six months.
One of the biggest issues facing the ERA is vehicle overloading, with 37 percent of trucks nationwide exceeding weight limits. The problem is particularly severe at weigh stations in Holeta (47 percent), Modjo (45 percent), and Sululta (45 percent).
Despite new regulations aimed at curbing overloading, enforcement remains weak. The regulation reduced load capacity on three rear axles by two tonnes, capping total weight at 56 tonnes and imposing fines of up to 65,000 Br for violations. However, trucks continue to exceed legal limits, accelerating road deterioration.
While some projects are progressing and abandoned works are being restarted, contractor incompetence remains a major setback. Over 50pc of projects, 139 out of 278, handled by domestic contractors are performing below 50pc of scheduled plans.
Mohammed points to a widespread lack of professionalism among contractors.
Eshetu Temesgen (PhD), deputy chairperson of the Urban Infrastructure & Transport Affairs Committee, called for an overhaul to improve contractor performance and ensure road projects are executed efficiently.
Members of Parliament voiced concerns about delayed roadworks in their constituencies.
Niusemagn Mohammed (PhD) criticised ERA for neglecting a road project from Agaro to Dekisa River, which has put lives at risk. He also pointed out that renovation on the Addis Abeba-Sebeta road has stalled, making it especially difficult for heavy trucks.
“Nothing has changed despite claims otherwise,” he said.
Fanos Hailu, another MP, condemned the seven-year delay in the Debre Berhan–Jika road project, blaming contractors citing financial constraints. She demanded immediate responses from ERA executives.
“What are we going to tell our people?” she asked.
“They are demanding answers.”
Negase Belay, MP, voiced frustration over years-long delays in road projects, reminding that only three kilometers of the 19 km Ambo-Woliso road has been constructed in the past decade. She also criticised the narrow, steep Addis Abeba-Jimma road, which has become a major cause of traffic accidents. Despite repeated promises for expansion, no progress has been made.
Mohammed attributed the delays to incompetent contractors, missed schedules, and unforeseen events such as earthquakes and security threats. He confirmed that the Ambo-Woliso project has been delayed for long, leading to the removal of its contractor.
Regarding the Addis Abeba-Jimma road, he said that designs for an expressway have been completed. However, attempts to finance the project through a public-private partnership (PPP) have failed. ERA is now exploring options to fund the project independently.
Abebe Dinku (PhD), a professor of civil engineering at Addis Abeba University (AAU), stated that 70pc of road projects face right-of-way disputes, causing delays and cost overruns. He recommends better planning to avoid disruptions to households and businesses.
Abebe warns that a lack of professionalism among consultants and contractors remains a serious problem. He called for a rigorous selection process that evaluates both technical and financial qualifications, criticising the current system for focusing solely on cost, which compromises quality.
“Selection shouldn’t only be cost-based,” he said.
PUBLISHED ON
Feb 09,2025 [ VOL
25 , NO
1293]
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