The Addis Abeba Finance Bureau blocked a multi-billion Birr budget the city administration approved after requests to pay bid winners in foreign currency gets rejected.

Under Debo Tunka, the Addis Abeba City Administration Mega Project Construction Office asked the Finance Bureau for feedback as the term of reference in the bid documents demands a foreign currency payment of 20pc. However, the Bureau responded that giving approval for payments in foreign currency is the central bank's mandate.

The bureau is willing to revise its decision once the payment terms are changed.

Officials of the Bureau were not pleased to see a strain on the city administration's budget when the Mega Project Office paid 80pc in foreign currency for renovating the municipality complex up Churchill Road, housing the Mayor's Office.

"The Finance Bureau was disbursing from the annual budget," said Mebratu Gebre, budget office director.

The renovation, costing taxpayers 2.2 billion Br, facelifted the complex for the first time in 57 years. It was constructed during the reign of Emperor Haileselassie, designed by an Italian architect Arturo Mezzedimi and constructed by the Italian firm ESBU Construction. The iconic structure was renovated by ALEC Engineering & Contracting LLC, a Dubai-based company that also restored the Prime Minister's Office.

The Mega Project Office, established to oversee public projects costing over a billion Birr, was awaiting the green light from the Finance Bureau to enter into a contract to award a sectoral office district. To be administered under the Public Property Administration Authority, the office project will house 38 bureaus in the same location, making them accessible for residents across the city to get various administrative services.

The construction will be erected on 11.5hct of land on Tessema Aba Kemaw Street, adjacent to Tekelehaymanot Church, to be completed in three years.

Abinet Belay, an investment consultant for MPE Consult, questions the feasibility and timing of spending a large amount of money on extravagant office facilities when there are budget deficits not only in the city but at the federal level.

"I would advise them to see other areas that can generate revenues," said Abinet.

The Project would have four lots, and the construction firms winning the bids would design and build the offices.

The office cluster was initially planned to be constructed on a plot adjacent to the Ethiopian Management Institute, across Sahlite Meheret Church, on the road between Megegnaga and Ayat. The first lot awarded to the China Communication Construction Corporation for close to 29.9 billion Br was scrapped. China Jiangsu International Economic & Technical Limited took the second lot for 8.8 billion Br. The remaining two lots were awarded to China Civil Engineering Construction Corporation Ltd, with a total value of 19.2 billion Br, making the total project cost 28 billion Br.