The Ethiopian Ministry of Urban Development and Construction has drafted an amendment to the contractors’ registration directive.

In the draft amendment registration criteria for contractors in all categories have changed based on the grade for which the contractor is applying.

The amendment draft includes an increased capital requirement for Building, General and Road Contractors to obtain license.

According to the draft, Grade One Contractors require a capital of 15 million Ethiopian birr for Building Contractor, 34 million  for General Contractor and 26 million for Road Contractor license.

The existing directive requires a capital of 20 million birr for Grade One and Grade Two contractors in all three categories. And Grade Three contractors are required a minimum capital of 15 million birr for registration, with the smallest amount being 100,000 birr for Grade Ten.

The new draft amendment also specifies the types of projects that contractors are allowed to contract, based on the license grade they have registered.

Source: Capital