LOCAL PRODUCTS TO SUPERSEDE OVER IMPORT

Whilst speaking about the performance of the last budget year, the minister highlighted that rebuilding of the war affected areas were successful stories despite the interruption of construction due to certain reasons.

As she indicated, among the major projects the ministry had for the year, greenery projects were the main to spread in many cities of the country besides other old and usual construction projects.

On the flip side, the interruption of project completion, and unexpected time and cost overruns of housing and road construction projects, led to more than 768 federal government projects to be paused due to the price escalation of construction inputs during the previous ten months of the budget year. Furthermore, the war in northern Ethiopia was cited as a critical reason for the interruption and delay of major federal road projects. Additionally, lack of clear directives for compensation and resettlement, price escalation, and absence of efficient contractors during the tender process to award project constructions, were mentioned as critical issues.

Construction delays more often than not occur due to the escalation in material prices, which contractors also underline as one of the major challenges they face in their projects. Most of the stakeholders claim that there are few control measures taken by the government on the market, and they pin this as the main problem of the price spike. The illegal increasing price of cement in the open market for the past several months has sparked challenges in the construction industry while cement producers on the other hand are tackling a long list of challenges including, unfavorable supply-demand balance, higher cement prices, escalating production costs, low utilization rates, social unrest, and a lack of foreign currency. With the new budget at hand, the Ministry is working towards providing a lasting solution for the development of the country, in all fronts.