Ethiopian Roads Administration (ERA) is under treacherous terrain, terminating 32 road construction projects and suspending an additional 52 projects due to an array of obstacles. Security concerns, supply chain disruptions, budgetary shortfalls and surging compensation claims have cast a shadow over the Administration's mandate of overseeing the construction and maintenance of approximately 30,000Km of roads across the country.

Mohammed Abdurahman, director general of the Administration, presented last week a six-month performance report to the Standing Committee of Urban Infrastructure & Transport Affairs, chaired by Shewit Shanka. The report laid bare the extent of the crisis on the severe undersupply of construction inputs.

Only 14pc of the nearly 680,000tns of cement demanded by projects were delivered and a mere 39pc of the demand for fuel was met. The 238 renovation and construction road projects, currently spanning 16,599Km under the Administration face additional difficulties arising from a shortfall in financing from the Chinese Exim Bank and Saudi Arabia. Compounding the issues is a sharp increase in construction input costs, soaring by 263pc over the past three years.

"We'll have to revise how our contracts handle these kinds of price changes," said Mohammed.

Exit strategies are currently under formulation as the Administration endeavours to finalise projects either lagging for an extended period despite nearing completion or those de facto terminated.

Sisay Bekele, deputy director of Corporate Services, observes a sharp rise in prices of steel and the underproduction of cement as pressure points delaying project completion dates. He observes a potential remedy in joint ventures such as Lemi National Cement Factory. With a budget of 600 million dollars, the factory constructed under East African Holding and the Chinese West International Holding is touted to boost the country's cement supply if it begins operation.

"It'll address most of the shortage," Sisay told Fortune.

Annual demand for cement in Ethiopia hovers around 36 million tons, with the existing 18 cement factories supplying less than half of that amount due to input shortages and obscure distribution channels.

While the Administration's operating budget reached a record high of 75.6 billion Br, the proliferation of compensation disputes further constrains its efficacy. It is facing 635 compensation cases valued at 13.5 billion Br, with 49 right-of-way cases valued at around 191 million Br ruled against the Administration.

The report further alleges that groups in Qelem and Horo Gudru towns in Wellega Zone, Oromia Regional State have been taking advantage of the security gap to have court decisions ruled in their favour and subsequently withdrawing money from the Administration's accounts.

"There seems to be more of a desire for compensation than infrastructure in some areas," said Dejene Fekadu, deputy director.

This sentiment was outright rejected by Teshome Wale, deputy chair of the Standing Committee, who, in contrast, observed an ever-increasing demand for development across the country.

"People are willing to relocate even without compensation," he underscored.

Dejene emphasised the challenge of staff abductions and significant transportation hurdles faced by the 25 project offices. He revealed that Administration staff work under constant threats, opting to use public transport to avoid detection.