The Ethiopian Road Construction Corporation (ERCC) introduced new business plan to boost the government’s market share in road construction to 50 percent share by the end of GTP II period, Capital reported.

The business plan also stipulates to increase the government’s role in road maintenance from its current share of nearly 55 percent to 70 percent.

ERCC is currently engaged in 13 federal road construction projects meanwhile local and private contractors are involved in 54 projects. ERCC looks forward to lay down 1,600 km roads in GTP II period.

Yared Lemma, Head of ERCC’s Corporate Plan and Business Development Department, told Capital the new business plan permits international companies to work jointly with ERCC.

Stiff competition from local and international contractors, inability of ERCC to offer diversified services, soaring prices of raw construction materials like iron and lack of foreign currency are some of the problems the new plan encounters with.

“Our efficiency will improve through time; we are aware that we face several problems and we will do our best in the GTP II period to solve these problems,’’ Yared stated.

Source: Capital