Wednesday, November 2, 2011

Nine International Companies Bid for the Construction of Ethiopian Steel Factory


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Nine international companies have shown interest in the bid to construct Tossa Steel Factory in Ethiopia. The final deadline for the bids is December 16, 2011.

Delegations, from the international companies interested in the bid, visited last week to evaluate the project and associated financial risks. The delegations held discussions on environmental issues, customs and power.

Representatives came from two German, three Chinese, two Italian, one South Korean and one French company. An estimated 40 people visited the project last Tuesday at which time they also met with officials from the Ethiopian Electric Power Corporation, Tax Authority, and Environmental Protection Agency.

The factory has the potential capacity of producing 1.3 million tonnes a year but will require 300mw of energy said Haile Assegid of the factory. The EEPCo has confirmed that the energy will be made available when the project is completed.

Tossa will produce steel products including reinforcement bars, hallow sections and billets in the first phase of the project said Haile. The second stage of production is expected to include steel for railway tracks he added.

The company has received land in Amhara Regional State is looking at two alternatives explained Shimelese Shiferaw Head of Environmental Protection and Land Administration.

Tossa Steel Factory is owned by Sheik Mohammed Al-Alamoudi.

In related news the Endowment Fund for Rehabilitation of Tigray (EFFORT) aims to set up an Ore mine and steel factory in Tigray Regional State. EFFORT has made an invitation for corporations to carry out a feasibility study for the factory.
Source: Addis Fortune

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