Aug 25 , 2024
The financial issues of Ethiopian Railway Corporation (ERC) are expected to be addressed as it establishes a new construction business unit. This initiative will focus on the maintenance of a 60Km road stretch in Oromia Regional State, connecting the towns of Robe, Gasera, and Ginir in eastern Bale Zone. The Corporation has partnered with IDCON Infrastructure Development Consultant Plc for consulting services for the project, expected to be fully finished by the end of the fiscal year. To undertake this construction work, ERC has obtained a first-grade contractor license from the Ethiopian Construction Authority. It has secured the contract four months ago, valued at 249 million Br, from the Ethiopian Roads Administration. The Corporation has also secured licenses for design and consulting services related to building, bridge, and highway construction. ERC, which falls under the Public Enterprises & Holding Agency, has been wrestling with marked financial issues with its debts ballooning to 126pc of its capital. According to the statement, diversification of services is aimed at mitigating the financial pressures the corporation has faced in recent years. The establishment of the new construction unit is seen as a crucial step towards improving the Corporation's financial health and sustainability.
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