﻿10 multi-billion Mega construction projects on-going in Ethiopia
On March 1st, 1896, in the Battle of Adwa,
an Ethiopian army led by Emperor Menelik II dealt a crushing defeat to the invading Italian forces.
Menelik was able to exercise his authority over a vast territory following his victory,
which included both the historical, ancient kingdoms of northern and central Ethiopia, as
well as the vast, resource-rich territories in the west and south that he had previously conquered.
The egalitarian nature of the victory brought together Ethiopia's diverse peoples against
a common foe, allowing Menelik to establish a new Ethiopian nation.
Ethiopia is a country at the horn of Africa and it is the second most populous country Africa.
The largest city and capital city, Addis Ababa is a bustling city hub with strong commercial
prospects and unique cultural attractions. As home to the headquarters of the African Union
and the host city of the United Nations Economic Commission for Africa (ECA), Addis Ababa is also
regarded as the ‘political capital of Africa’ and is driving the new growth narrative of the nation.
Ethiopia is among East Africa countries that have been ranked to have a fertile
land for construction business to flourish. The construction industry in the region is growing
and offering a green market through the various ongoing mega projects.
With its rich cultural heritage that dates to over 3 million years ago,
and its amazing natural splendor, Ethiopia is a compelling destination that is on course to
achieve transformational growth over visionary development initiatives.
Let’s take a look at 10 multi-billion mega construction projects on going in Ethiopia.
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10. Fairfax oil refinery project
Fairfax Africa Fund, a US-based investment firm,
in collaboration with multiple partners from Asian countries is planning to build
an oil refinery in Ethiopia with a total investment cost of four billion US dollars.
Zemedeneh Negatu, Global chairman of Fairfax Africa Fund, told The Reporter that his company
has undertaken the feasibility study. According to Zemedeneh, Fairfax Africa Fund is working on the
project with Asian investors whose core business is oil trading and infrastructure development.
“Our initial plan was for our investors to be from Asia but more recently,
we were approached by American financiers who are interested in the project. So, we may end up with
financiers both from Asia and the US,” he told The Reporter. The investors have evaluated several
places including Djibouti where the oil refinery will be built and finally selected Awash town,
221km east of Addis Ababa. Awash is found in the Afar Regional State in the Ethio-Djibouti corridor
where the national fuel depot of the Ethiopian Petroleum Supply Enterprise is located.
“Awash is selected as the ideal place by the authorities,” Zemedeneh said. A US based
investment firm is collaborating with partners from Asian countries to build an oil refinery
in Ethiopia. The project, worth $4 billion, is expected to serve the country and the rest of
east African market. Located in the Ethiopian eastern town of Awash; some 220 kilometres from
the capital Addis Ababa, the refinery will have the capacity to process 120,000 barrels per day.
That is equal to six million metric tonnes of crude oil. “Here in Ethiopia over the next ten
to fifteen years there is going to be a very massive transformation in the economy from what
used to be an agrarian to what is to become an industrial based economy,” said Zemedeneh Negatu,
Global Chairperson at the Fairfax Africa Fund. “That means a very significant increase in
transportation which is what is what this refinery comes into. By the way it’s not just a refinery.
Refinery is just the first component…we are going to have an entire petrochemical over the
next fifteen years.” At the moment Ethiopia uses three million metric tons of fuel every year. “The
aim is to service all of East Africa. To just give you a very quick reference point …all of
East Africa…which is a couple of hundred million people…has just one tiny refinery. And yet East
Africa is actually the fastest growing region in Africa as a whole. And on the later of that the
fact that there is a lot of urbanisation going on we figured this is a viable project. Now the
4 billion is an estimate. It could be slightly lower or it could be slightly higher.” Negatu
said. Reports suggest Ethiopia built its first oil refinery in 1967 in the Port of Assab in
the current Eritrea. The then refinery built by Russian engineers had the capacity of producing
500,000MT of fuel per year only. Then it was upgraded to process 800,000MT of fuel
per annum. But the new facility will eventually have the capacity of refining 12 million metric
tons of crude oil yearly. That will boost the confidence of Ethiopia’s energy security program.
9. Koysha hydroelectric project
The new koysha hydroelectric project located in southwest of Ethiopia will
be the fourth of a cascade of dams along the omo rivwr, after the gilgel Gibe 1,
gibel Gibe 2 and gibel Gibe 3 hydroelectric project. The koysha plant will have an installed
2,200 MV of an annual production of 6,460GWh. Salini Impregilo continues to be a partner in
development for Ethiopia as it will build a new hydroelectric plant in the Koysha area.
The new megaproject is worth €2.5 billion and will have an installed capacity of 2,200 MW.
The client is the Ethiopian Electric Power (EEP). The project includes a 170 metre
high rolled compacted concrete (RCC) dam; the reservoir volume is 6000 million cubic metres.
The hydroelectric plant will annually produce 6,460 GWh.The Country has been rapidly growing
for many years now, and will soon become the driving force of the African continent.
The large infrastructure projects that have characterized the past few years do
not only sustain growth, but also contribute to achieving the goal of transforming Ethiopia into
Africa's energy hub. As of today, Ethiopia exports energy in Kenya, Sudan and Djibouti, its closest
countries. The authorities do not exclude reaching markets like Europe and the Middle East in view of
the potential of the hydroelectric plants being built. This new important project together with
GIBE III, which went into operation recently and GERD (the Grand Renaissance Dam) on the Blue Nile,
will enable Ethiopia to become Africa’s leader in terms of energy production.
8. La Gare
La Gare, the master-planned community by Eagle Hills, is located in the heart of Addis Ababa,
in the historical setting of the La Gare train station. Eagle Hills is investing in Ethiopia as
part of its concerted focus on unlocking the true potential of such spectacular locations
across the world. With its mixed-use developments and residential offering, Eagle Hills is reaching
out to people to explore Ethiopia with their own homes in the country. Celebrating the heritage
of the city, the revitalization of the land, with its rich historical context, will further energise
the economy while also bringing back to life a hub that stays fresh in the memory of people.
La Gare can be effortlessly accessed from the Addis Bole
International Airport in addition to a metro line along its northern border.
One of the largest of its kind integrated lifestyle communities in Ethiopia,
La Gare features more than 4,000 residences set in an area of over 360,000 sqm. Adding to the
lifestyle choice of residents and catalysing the economy are commercial, hospitality,
retail and leisure attractions – all set in a gated community around a green park. La Gare
represents the dynamic downtown of Addis Ababa, boasting one of the largest mixed-use developments
in Ethiopia with over 4,000 residences. Upon inquiring, Addis Standard learnt that at least
four such projects are marked for construction in various parts of the city, a source from the city
administration said on conditions of anonymity. The biggest of the four is “Addis Hillside Complex
Village” to be built by yet another UAE based real estate Company “on the hills of Yeka sub
city”. It will “occupy 645 hectares of land and is expected to cost close to US$ 4 billion,” the
source, who declined to name the real estate company said. “The government will own 30% of
the share.” “Entoto Hill Tourism Hub” is another similar project in the making. Estimated to cost
around US$1 billion, the hub is to be built by “a European real estate company which will have 50%
share. The government owns the remaining 50%,” our source said, adding that Takele Uma was in
Europe (the UK and Germany) as well as the UAE, last week “to negotiate these projects. Two more
similar projects are also in the making: “a 14 hectare complex near the main Exhibition Center
and another 16 hectare project near Merkato”, the later Africa’s largest open market. However, our
source refrained from providing further details on the last two projects saying negotiations were at
early stages and included American real estate companies which have “exhibited real interest.”
“These projects are different in a way that all of them involve reintegrating communities located in
each sites,” our source said. Addis Standard‘s attempt to get more about this from the city
administration were to no avail, yet. 7. Beautifying Sheger
Beautifying Sheger is a project sponsored by the Ethiopian government that aims to clean rivers
and create public works in the capital city, Addis Ababa. It was launched on 27 February
2019 under Prime Minister Abiy Ahmed, and aims to run for three years. Beautifying Sheger aims
to increase tourism and quality of life, reduce the effects of climate change and create jobs
in Ethiopia's capital city by developing green spaces from Entoto to Akaki waste water treatment
plant. The project aims to convince citizens to assist in the cleaning efforts as well. Despite
Ethiopia's recent economic development, there has been no environmental action to reduce industrious
and urban waste. On 19 May 2019, the Ethiopian government held a fundraising dinner at emperor
Menelik II's former palace, which the Prime Minister called "Dine for Sheger". 300 business
executives and representatives from international companies attended the event, each paying $173,000
per seat. The project requires an estimated $1 billion, and the dinner raised $25 million,
with donors from the United Nations, the Italian government, the African Development Bank,
and the Commercial Bank of Ethiopia. Donors were offered a plaque with their name on it,
which would be placed along the project route, and a private photo-op with Ahmed.
6. Mesob Tower
An architect who seems to be fascinated by the symbolism of Mesob, an essential item in Ethiopian
household in all parts of the country, came up with a proposal to build a 70 story building
in the capital Addis Ababa. The ministry did not mention the name of the architect. Mesob signifies
unity, covenant and togetherness. The ministry of culture and tourism apparently liked the project
idea – which is going to be a public-private partnership- and discussed it with relevant
authorities. As it turns out, the ministry is now considering the project seriously, and it
seems the case there is a positive response, and seeks to complete it in five to six years.
Mesob Tower is unique and reflects Ethiopia’s culture. The public-private partnership
development upon completion will contribute to, inflow of tourists and will also enhance the
positive image of the country. The 70-storey development will be located in the country’s
capital city, in Addis Ababa. When complete, the US $681m project will contribute to,
inflow of tourists and will also contribute to the positive image of the country. The
250 meters high rise building will be built on a 20,000 meter square of land and will have hotels,
shopping malls, a cultural center that is representatives of all regions of Ethiopia,
a gym and a golf club, among other things. Construction started early this year and
completion is expected in 2024. 5. Largest Airport in Africa
Ethiopian Airlines is currently operating flights out of Bole International Airport in Addis Ababa,
the country’s capital. “The airport looks very beautiful and large, but with the growth that
we see every year, in about 3 or 4 years, we are going to be full,” Gebremariam told ENA.
That being said, they are moving ahead with building the airport, which they are calling
Absera. As it stands, Bole International Airport has a capacity to handle 19 million passengers
annually. The new airport is also expected to significantly reduce congestion at Bole.
The rapid growth of Ethiopian Airlines, being the largest airline in Africa
by fleet size and revenue, has not kept up with the air infrastructure.
Ethiopia is set to construct the largest airport in Africa in Bishoftu, a town located 39km South
East of the capital Addis Ababa. The US $5bn airport is expected to cover an area of 35 square
kilometers. The Absera Airport will take up about 13 square miles of land in the town of Bishoftu,
almost 40 miles south of Addis Ababa. The airport will be able to accommodate about
100 million passengers per year. The airport will become an “airport city,” complete with duty-free
shopping malls, hotels, and training centers. The airline has not yet announced when the new
airport will open, but it says that it will rival the scale of the new Istanbul Airport,
which is projected to become the world’s largest airport when construction is complete in 2028.
4. Lapsset project
LAPSSET was launched on March 2, 2012 by the then Kenyan President Mwai Kibaki, late Ethiopian
Prime Minister Meles Zenawi, and South Sudan’s President Salva Kiir. The LAPSSET Corridor Program
is Eastern Africa’s largest and most ambitious infrastructure project bringing together Kenya,
Ethiopia and South Sudan. This mega project consists of seven key infrastructure projects
starting with a new 32 Berth port at Lamu (Kenya); Interregional Highways from Lamu to Isiolo,
Isiolo to Juba (South Sudan), Isiolo to Addis Ababa (Ethiopia), and Lamu to Garsen (Kenya),
Crude Oil Pipeline from Lamu to Isiolo, Isiolo to Juba; Product Oil Pipeline from Lamu to Isiolo,
Isiolo to Addis Ababa; Interregional Standard Gauge Railway lines from Lamu to Isiolo,
Isiolo to Juba, Isiolo to Addis Ababa, and Nairobi to Isiolo; 3 International Airports: one
each at Lamu, Isiolo, and Lake Turkana; 3 Resort Cities: one each at Lamu, Isiolo and Lake Turkana;
and The multipurpose High Grand Falls Dam along the Tana River. Like any other major project the
LAPSSET corridor project has come under criticism for its social and environmental impacts.
The civil society organisation "Save Lamu" has raised concerns regarding insufficient
involvement of local communities, as well as land right and negative environmental impacts.
Affected pastoralists in Turkana County have complained about a lack of consultation.
In Lamu, a petition by local fishermen furthermore criticised the project of violating their right to
adequate information. Affected people living on community land, in particular pastoralists have
raised concern about violation of land rights in association with the LAPSSET.
Inspire of all this criticism the dream of the LAPASSET corridor lives on.
3. Genale Dawa III hydroelectric power plant
Genale-Dawa III multipurpose hydropower project also called GD-3 is a 254MW hydroelectric power
project situated in the Genale-Dawa River Basin in southeast Ethiopia.
The GD-3 project took nine years for completion and was inaugurated in the first quarter of 2020.
Owned and operated by the Ethiopian Government, the project was developed by China Gezhouba Group,
a member of China Energy Engineering Group. Genale Dawa III hydroelectric plant has consumed a total
investment outlay of US $451m, out of which about US $67.8m was covered by the Government
of Ethiopia. The remaining was covered by a loan. The project was initially launched in 2010,
but was temporarily suspended for more than a year due to setbacks related to resettlement
of residents living close to the dam. With the completion of the project, the hydropower project
will generate power and increase the country’s electric power generation capacity to 4654 MW
from the existing 4,200 MW. The dam will be used as a water reserve to serve the water demands of
the landlocked country during the crisis. It will also supply water for irrigation of
15,000 hectares under a project named Lower Genale Irrigation Development Project. The
economic benefits of Genale and Dawa communities will be enhanced through the irrigation project.
The electricity generated by the Genale-Dawa III power plant is transmitted by 295km-long 400kV and
230kV transmission lines to the Mega substation, which will connect to the Ethiopian main grid. The
project was connected to the Ethiopian grid in February 2020. The Genale-Dawa Basin will have
two more hydropower projects named GD-5 and GD-6 that are currently in the proposal stage. All
the Genale-Dawa power projects are collectively named as Genale Hydropower Projects. The GD-5
and GD-6 power projects will be located some kilometres parallel and adjacent to each other
approximately 700km southeast of Addis Ababa. GD-5 will be a 100MW facility, located roughly
in the middle of GD-3 and GD-6. GD-6 will have a capacity of 250MW and comprise of two vertical
generators of Francis turbines. 2. Addis Ababa-Djibouti railway
The 752.7km Ethiopia-Djibouti railway modernization project,
also known as the Addis Ababa-Djibouti railway, is the first modern electrified railway line in
East Africa. The Addis Ababa–Djibouti Railway is a new standard gauge international railway
that serves as the backbone of the new Ethiopian National Railway Network. The railway
was inaugurated by Prime Minister Hailemariam Desalegn on January 1, 2018. The modernization
is expected to provide landlocked Ethiopia with faster access to the port of Djibouti, linking
Ethiopia's capital of Addis Ababa with Djibouti and its Port of Doraleh. The project is jointly
owned the governments of Ethiopia and Djibouti and constructed by China Railway Group and China Civil
Engineering Construction Corporation (CCECC). The railway connecting Ethiopia with Djibouti
via Dire Dawa is a 780km metre-gauge line opened in 1917. It is the only railway line that connects
landlocked Ethiopia with Djibouti Port, a major cargo entry point, but deteriorated due to a
lack of maintenance and management. 1. Grand Ethiopian Renaissance Dam
The GERD project formerly known as the Millennium Dam and sometimes referred to as Hidase Dam,
is a gravity dam on the Blue Nile River in Ethiopia under construction since 2011.
It is in the Benishangul-Gumuz Region of Ethiopia, about 15 km east of the border with Sudan.
At 6,450 MW, the dam will be the largest hydroelectric power plant in Africa when
completed, as well as the 7th largest in the world. The primary purpose of the dam
is electricity production to relieve Ethiopia’s acute energy shortage and for electricity export
to neighboring countries. The project is currently 71% complete and once completed,
the reservoir will take from 5 to 15 years to fill with water. Filling the reservoir began in July
2020 and will take between 4 and 7 years to fill with water, depending on hydrologic conditions
during the filling period and agreements reached between Ethiopia, Sudan, and Egypt. It has however
faced various challenges including the regional dispute over the flow of river Nile, delays and
also cancellation of the initial contract with METEC which is run by the Ethiopian Military.