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Chinese firm to build new industrial park in Ethiopia

The first phase of the the industrial park will be spread over one million sqm. (Image source: marwed/pixabay)

China Civil Engineering Corporation (CCECC) has concluded a US$246mn deal with Ethiopia’s Industrial Parks Development Corporation (IPDC) for the construction of the Hawassa Industrial Park

Ethiopian firm MH Engineering has been appointed as a consultant on the project, which will be completed in nine months. The industrial park will focus on garment manufacturing and the agriculture industry.

The first phase of construction includes 35 factory sheds and 19 other buildings, which will be used as exhibition halls, food courts, dormitories and other miscellaneous purposes. The construction in the first phase will cover one million sqm and another two million sqm will be added in the future.

Tinsae Yemam, customer service officer at IPDC, told Fortune that investor demand drove the corporation to select Hawassa for the construction of the industrial park. He added that Hawassa’s geographical location, infrastructure, proximity to the Modjo-Hawassa Expressway and resource conditions were also important factors for its suitability.

IPDC has plans to construct industrial parks in Mekelle, Adama, Jimma and Bahir Dar. The corporation will also construct another industrial park in Addis Ababa in a joint venture with Ayka Addis Textile & Investment Group.

There are four industrial zones in Ethiopia, as of now, and three of them are privately-owned. The only government-owned industrial park is the Bole Lemi Industrial Zone. A consultancy contract for the park’s second phase, worth US$6.71mn, was signed between Ethiopia’s Ministry of Industry and DOHWA Engineering Company in April this year.

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