Press release
The Minister of Water, Irrigation and Energy Ethiopia is to attend the annual investment meeting Powering Africa: Ethiopia, taking place from 20-21st November in Addis Ababa.
Construction work for the 500 thousand hectoliter beer producing plant owned by Ethiopian brewer Habesha Breweries SC is under way. The plant is to be constructed according to a turnkey contract agreement between the brewer and Chinese contractor Lehui.
It is expected that construction of the plant will be concluded within fifteen months according to the arrangement reached between the parties. Major shareholder Bavaria N.V, the Dutch company with 39 percent of the shares of Habesha handled most of the negotiations with the contractor to ensure that the first bottles of beer will reach both the local and international markets within the next fifteen months.Habesha Brewery is offering additional 300,000 shares to its existing shareholders after failing to get adequate bank credit.
Habesha has plant to install a brewing plant with annual capacity of 500,000 hectoliters in Debre Berhan Town, 120 KM outside of the capital, Addis Ababa.Habesha Construction and Materials Development, Ethiopia has selected Rama Construction plc to construct the 10 storey shopping center it proposes to build at a cost of 233 million birr. Rama will handle only the structural aspects of the proposed project at an estimated cost of more than 123 million birr according to the agreement signed between the two companies yesterday.
Rama will be expected to complete the structural work in 18 months from the time of the agreement.
The center to be named the Tigat Shopping Center will be constructed on 2,100 meter squares of land to be found on Haile Gebreselassie Street. It will be a mixed-use building to host offices, shops and a ninety bedroom four star hotel.Habesha Construction Materials and Development Share Company, Ethiopia announced a profit of 5 million birr for the four months that it has been in operation, May-June.
The company was able to gross 16.6 million birr for the four months it has been in operation in spite of several it faced including the challenge of a financial sector reluctant to finance real estate projects, problems with acquiring land, and bureaucratic issues as well as shareholders defaulting on paying on contributions noted the report represented to the general assembly by the board of directors.
The actual revenue earned by the company from constructions erected on the land it has acquired was just 3.3 million birr while it earned 13.3 million birr from joint ventures. The company spent 6.9 million birr over the last year enabling it retain 7.8 million before taxes making up 25 percent of its current paid up capital.
