[NEWS] – Led by Hunan Provincial Government, the branch of the Chinese Export and Import Bank (Ex-IM Bank of China) pledged to extend USD one billion for the construction of an industrial park expected mainly to host Chinese enterprises.
Xu Xiang Ping, director general of Commercial Department at the Hunan Province led a group of 50 high-level politicians and business leaders and spent a week in Ethiopia meeting officials and visiting places.
Hosting the delegation in the capital on Wednesday, Arkbe Okubay (PhD) special advisor to the Prime Minister, said that both governments of Ethiopia and Hunan Province have made agreements to develop an industrial park in Adama. According to Arkebe, the new industrial park is expected to manufacture earth moving heavy duty machineries.
The equipment manufacturing industrial park, according to Arkebe, is to be erected by CGC Overseas Construction (CGCOC) the giant Chinese construction company which has built the properties of Tsehay Real Estate, Adama Wind Farm and the Hansom Glass Factory, Arkebe said.
- GENERAL CONTRACTORS
- BUILDING CONTRACTORS
- ROAD CONTRACTORS
- WATER WORKS CONTRACTORS
- ELECTRO MECHANICAL WORKS
For the park to be operational in the coming two to three years, the EX-IM Bank has pledged to accelerate procedures and approve the one-billion-dollar loan required for the project. Wang Yibing, governor of EX-IM Bank of China Hunan Branch said that he will push the procedures to approve the loan at the possible near future.
It has been disclosed that commercial agreements have been inked between officials of Industrial Parks Development Corporation (IPDC) and contractors of the project.
In addition to the loan project, two giant Chinese Companies are set to operate in Ethiopia. According to Arkebe, SANY Group and Tebian Electric Apparatus Stock Co. Ltd (TBEA) are the two giants the government considers as anchor investors. Hence, TBEA has been advised to focus on manufacturing large and heavy transformers which are currently imported.
SANY Group on the hand is mainly asked to take part in the housing and commercial buildings projects, Arkebe said. Hawassa Industrial Park is the most prominent target for that and Arkebe said that the government has already engaged SANY Group to embark in that area.
Fistum Arega, Commissioner of Ethiopian Investment Commission (EIC) briefed reporters on Wednesday that a month and two weeks ago, an Ethiopian delegation was in China to seal five major agreements with four major Chinese investors. Out of that agreement, both SANY Group and TBEA have given positive responses and are willing to come to Ethiopia. In addition to that, Jiangsu, Sunshine Group and Kingdom Group are the other promissory firms the government has agreed with.
All in all, there have been five major events that took part during the course of the week involving industrial park development and FDI. Officials were busy hosting Park Geun-hye, President of Korea and her business delegation, Chinese businesses and officials of H&M all of whom were simultaneously in town. [reporter]