Capital

Bankers, governor debate National Bank draft law

By Tedla Yeneakal

Saudi billionaire shows interest in Sodere, EPHARM

By Groum Abate

UDJ says police ban founding congress

By Kirubel Tadesse

AB.HAM promotes more, better cement

By Muluken Yewondwossen

After 7 yrs trial, former CBE officials get final verdict
Expected to be released tomorrow

By Tedla Yeneakal

City to tackle inflation, food shortage

By Groum Abate

Postal Service to stretch legs with money transfer
Door to door delivery soon

By Kirubel Tadesse

Nine of 16 enterprises get interested buyers

By Muluken Yewondwossen

Bedilu Building to be auction off 10 million floor price

By Groum Abate

IGAD puts new leadership in place

By Addis Mulugeta

DPPA issues urgent appeals- 4.6 million people in need

By Kirubel Tadesse

Parliament to endorse record high federal budget

8.8 bln. ETB deficit weighs heavy
‘ Aggravates an already unbearable inflation rate’

By Kirubel Tadesse

Ethiopian, Brussels Airlines enter codeshare deal

By Tagu Zergaw

ERA awards 1.5 bln birr projects to Chinese companies

By MulukenYewondwossen

Accountants receive scholarships

By Groum Abate

Court adjourns Tesfaye Biru et.al case for verdict

By Groum Abate

Ethio-Norwegian trade and investment seminar in Oslo

By Addis Mulugeta

Road fund collects ~5bln birr in 10yrs

By Tedla Yeneakal

Bambis initiates dialysis center’s

By Our staff reporter

Delivering the promise of safe birth

By Our staff reporter

Climate change, carelessness affects heritage sites

By Addis Mulugeta

Ethiopia to host first trade fair in Southern Sudan

By Tedla Yeneakal

Bankers, governor debate National Bank draft law

By Tedla Yeneakal

Bankers representing the private and public financial sectors held a heated debate over the new draft proclamation of the National Bank of Ethiopia (NBE), on Friday, June 13, 2008 at the House of Federations.
NBE Governor, Tekelewolde Atnafu and Budget and Finance Affairs Standing Committee Chairman, Wana Wake jointly defended in parliament issues relating to several proclamations, which representatives of financial stakeholders questioned at length in a closed session, according to sources present at the meeting.
Amongst the vital issues raised was a controversial proclamation that gives unlimited provision of loans to the government, which the bankers questioned, saying it would exacerbate inflation that is already becoming critical.
The bankers also raised the issue of proclamation 471/98, relating to the accountability of the NBE to the Prime Minister. They argued that the Council of Ministers at large is accountable rather than the Premier individually.
In the previous proclamation, the Ministry of Finance was accountable before it was restructured to the Ministry of Finance and Economic Development (MoFED).
Ethiopia’s annual inflation rate increased to 29.6 percent in March, the highest in over a decade as rising food costs continued to push up consumer prices, according to the Central Statistics Agency.
Inflation expanded from 22.9 percent in February, according to a report from the Central Statistics Agency.
Sources disclosed to Capital that some stakeholders also raised the controversial mandate of the NBE as a regulatory body and at the same time its involvement in operational banking, targeted at profit.
On a different note, a representative of the labor union from the NBE also questioned the terms of management of employees at the bank, as it does not fall into the categories of government office, public enterprise or any other entity.
“This is a violation of the constitution and the collective agreement, contradicting proclamation no. 377/39,” the representative was quoted as saying.
The governor, Tekelewolde, on his part defended that NBE’s revised proclamations were adopted from the experiences of other countries and the International Monetary Fund (IMF) and the World Bank, were consulted and gave their professional comments that were embraced.
“We’ve looked into the practices of 13 countries and especially developing ones on which we have based our revision,” Tekelewolde said. “80 percent of the new law has been adopted; we have not created anything new ourselves.”
Sources at the meeting said that several stake holders, including representatives from the Chambers of Commerce, different ministries and Banks left the meeting unhappy, saying they have not received adequate and convincing responses from the governor.
The discussion amongst the same stakeholders will continue tomorrow, Monday, June 16, 2008 to debate further on the draft banking business proclamation.
The revised draft national bank proclamation was first tabled to parliament on Thursday, May 29, 2008, to the House of Peoples Representatives, undertaking major transformations for the first time since its re-establishment in 1994.

Saudi billionaire shows interest in Sodere, EPHARM

By Groum Abate

A Saudi billionaire is eyeing Ethiopia for investment. The billionaire shows interest to acquire Sodere Resort and Ethiopian Pharmaceuticals Manufacturing.
The Saudi billionaire meets with various officials during the week also wishes to work with the government in different kinds of projects on joint venture. The billionaire according to sources is interested to invest in Addis Ababa in the hotel and hospital sector.
The billionaire also met with President Girma W/Giorgis, Prime Minister Meles Zenawi, Investment Commission Commissioner Abi W/Meskel, Privatization and Public Enterprises Authority Beyene W/Meskel on his investment plans.
He also visited the Sodere resort.

Sodere is a resort/spa located approximately 25 kilometers south of Nazareth and 117 kilometers southeast of Addis Ababa in the Oromia Regional State.
The hot spring water, popular for its therapeutic effects, is pumped into a bath house. The resort’s facilities include two swimming pools (one Olympic size), a full-service restaurant, and a hotel and conference center. Based on figures from the Central Statistical Agency in 2005, Sodere has a total population of 1,867 people. Sodere lies alongside the Awash River and features lush, shady vegetation. Vervet monkeys live on the resort grounds. Crocodiles and, less frequently, hippos may be seen in the nearby river.
According to the official website of Wabe Shebelle Hotels, the spot was developed in the latter half of the twentieth century by the Ethiopian government.
Sodere is convenient for hiking and climbing mountains; sightseeing along the banks of the Awash River, watching or participating in a variety of leisure activities; and bathing in the natural thermal pool renowned for its curative properties are among the several activities that can be done at Sodere.

UDJ says police ban founding congress

By Kirubel Tadesse

The Unity for Democracy and Justice (UDJ), a political party under formation by the former Coalition for Unity and Democracy Party (CUDP) majority led by First Chair Birtukan Medksa, informed Capital that its founding congress meeting has been banned by Bole Sub City Police.
Birtukan told Capital on Friday, June 13, 2008 evening that all the necessary preparations had been finalized and participants from regions were on their way for the meeting, only to learn the sub city police has demanded a license for the meeting. The meeting was scheduled for the whole day Saturday June 14 at Imperial Hotel and the press was invited to learn the results at 6 P.M. Other sources confirmed that police did ask the hotel to demand a license from UDJ, which was impossible for Capital to confirm from police sources since it was during non working hours that it was informed of the situation. UDJ, weeks earlier reserved the hall in the hotel, paying 10, 000 ETB advance and agreeing to add another 141.25 ETB per person that participates in the meeting. Sources explain that two weeks ago, the hotel informed police that the meeting would take place, which is a common practice. When the hotel learned of the police decision on Friday, it notified UDJ officials and few UDJ members including Justice Birtukan went first to Gergi command post and then to Bole Sub City Police Station to learn that a license is a must before the meeting. “ It was already late but we still went and explained that we are not required to have a license by law in order to have indoor meetings. We were told that we need to have one from either the National Electoral Board of Ethiopia (NEBE) or the Addis Ababa City Administration’s pertinent department. To avoid these kind of delays, long before this, we had asked NEBE to give us letters starting from signatures collection period,” Birtukan told Capital.
Capital had reported that NEBE had denied the request of UDJ, which had sought supporting documents to collect signatures needed to form a new national party. Addis Gebregizaber (PhD) of the NEBE had told Capital that UDJ, like any other party, could go on collecting signatures and form a new party without needing any support document to do so since the right is guaranteed by the constitution. Engineer Gizachew Shiferaw who led the signature collection confirmed to Capital that after NEBE decision, the process went smoothly only with a single incident that was resolved. Even though Capital tried to contact Dr. Addis for his comment on the alleged police decision, it was not successful as his mobile phone was switched off.
In this aborted meeting, Birtukan would have run against Gizachew for the party presidency after Dr. Yakob Hailemariam pulled himself out of the race, probably to support youth for the leadership and to endorse Birtukan as he did at the former CUDP formation, which wasn’t accredited by NEBE.

AB.HAM promotes more, better cement

By Muluken Yewondwossen

A local company; AB HAM Enterprise, is to import five thousand liters of chemicals which save more than 40% of the price cement factories spend on grinding. Operations sprayer machines for drenching the chemicals will also be imported along with the chemicals.
U.K. based Fosroc International will supply the chemicals through its local representative AB HAM. This was disclosed on June 11, 2008 at a workshop the later company organized and attended by representatives from local cement factories, building contractors, architects and consultants.
Michael Hailu, AB HAM, general manager said that the reason for facilitating the workshop is to introduce new technologies that can be means for solving certain issues the country is facing, specially the shortage of cement which is hindering development of the construction sector.
After visiting various construction sites in the city; representatives of Forsoc, demonstrated performance of their chemicals in enhancing the quality, increasing production and minimizing production cost of cement.
An expert at the workshop told Capital that the technology will contribute to solve the shortage of cement in the country and can increase cement production by 15%.
Maishaf Rizal, Forsoc chief chemist, explained to the participants how the Cemax range of grinding aids enhance production and also facilitate the flow, compressive strength and consistency of the finished product.
These aid chemicals have been used in many other countries for more than twenty years. The most immediate and obvious contribution of Cemax technology is measured in the efficiency of savings brought to the production process. Energy consumption, mill output and cement fineness are the three most important factors in cement production,” said Maishaf Rizal.

After 7 yrs trial, former CBE officials get final verdict
Expected to be released tomorrow

By Tedla Yeneakal

After defending behind bars for the last seven years, former officials of the Commercial Bank of Ethiopia (CBE), including the president Tilahun Abbay, have finally got ruling, prison terms ranging one year to 7 years and a half months, on their final trial after they appeared on Wednesday, June 11, at the Federal High Court.
In total 25 bankers have been given rulings, out of which 20 are in custody and have almost completed their jail terms, except the president Tilahun Abbay, who has been sentenced 7 years and 6 months imprisonment as well as 3,000 birr fine has not served his sentence but is expected to be released for good conduct.
The remaining five CBE officials, Kidane Welde, Gondere Ayana, Bayesa Gemeda, Ephrem Negash and Nassir Hassan, have been found guilty and the former two have been sentenced six years and six months imprisonment, with Bayesa getting five years and a 2,000 birr fine, Ephrem getting three years and six months imprisonment and 1,500 birr fine, Nassir two years imprisonment and 1,000 birr fine, have all been tried in abstentia.
When the top executives were charged in 2002 by the Federal Ethics and Anti-Corruption Commission for illegally granting loans and overdrafts, they were questioned for handing out a total of 105 million USD to 13 businessmen, who appeared in court along with them but have been released in the past years in one of the most complicated corruption trials in recent times.
According to the ruling, Tilahun Taye, Kelemwork Berhan, Jamal Musse, Zalashweyne Assefa, Belay Geberemariam, Tesfaye Tekele, Girma Arredo, Asrat Belachew, have each been given two years prison terms and a 1,000 birr fine.
Alachew Admassu, Solomon Assefaw, Yeshemebet Demessie have each been given three years imprisonment and a 1,500 birr fine.
Mulugeta Geberemedhin, Alemayehu Hailemicachel, Abraham Aregawi and Girma Negash have each been sentenced to five years imprisonment and a 2,000 birr fine.
Alazar Dessie, has been sentenced to five years and six months imprisonment and a 2,000 birr fine.
Hailu Legesse, Habteselassie Hagos and Negussie Taddesse each received six years and six months imprisonment and a 2,500 birr fine.
All the aforementioned former top executives of the bank are expected to be released tommorow Monday, June 16, 2008.
Family members were witnessed outside the Kaliti prison facility, some 25 kms out of Addis Ababa, waiting for their release on Friday afternoon June 13, 2008, but the detainees were forced to spend the weekend in prison after the wrong file number was given to the accused from the Court to the prison facility.

City to tackle inflation, food shortage

By Groum Abate

The new Addis Ababa Administration is to start to act on the current price inflation and food shortage as of the coming week.
According to the information obtained from the city’s Trade and Industry Development Bureau, the bureau announced on Saturday, June 14 that it will act on the recently blasted distribution of wheat in the city.
Residents of the city complained to the newly elected Mayor Kuma Demekssa last week that the distribution of wheat in the city is unfair. The city according to the Bureau would tackle the problem in the coming two weeks, and residents would see viable change within that time.
The information obtained by Capital reveals that the bureau would also inspect price tags that are posted on the shops. The bureau will inspect prices in collaboration with the residents and police as of next week.
The administration in its bid to change the living standards gathered with the city’s Small and Medium Enterprises (SME) on Saturday at the 10 sub cities to discuss their problems.
Furthermore the city’s Trade and Industry Development Bureau Head, Fitsum Arega, will meet with model SME’s that were honored recently. The bureau plans to discuss the problems of SME’s at the city hall on Sunday June 15, 2008.
The Bureau also disclosed that 21 consumer associations established to stabilize the market in the metropolis have begun purchasing and distributing consumer goods.
77 consumer associations have so far been established in the capital city.
Besides, 12 of the 34 existing consumers associations in the city have also been distributing goods.
All the associations provide quality goods for members at reasonable prices, it was learnt.

Postal Service to stretch legs with money transfer
Door to door delivery soon

By Kirubel Tadesse

The state owned Ethiopian Postal Service (EPS) is seeking a license from the National Bank of Ethiopia (NBE) allowing it to provide postal savings service at its braches, found widely distributed across the nation.
Trying to claim a share from the competitive and advanced market dominated by financial and telecom service providers, next to its effort to acquire a license from NBE, EPS is striving to expand the existing money transfer service, which it now offers only at the head office, to 19 branches.
According to EPS nine month performance report submitted to the House of Peoples’ Representatives, documentation and feasibility studies to network the 19 branches has been finalized.
Ziyen Gedlu, Acting Communcation and Documentation Officer for EPS explained to Capital that international money order with global financial institutions; Cash 4 Africa and Express Money, are already in operation and it is these services that EPS is expanding.
EPS, which recently went through Business Processing Reengineering (BPR) reforms has a newly established marketing wing which is forwarding financial opportunities EPS can exploit. EPS branches were seen selling mobile SIM and pre paid cards. Ziyen comments to Capital that its well distributed outlets are a main advantage and need to be utilized in the financial market. Currently, EPS pays pensions for the Social Security Authority, charging 3.15 ETB per pensioner. Even if it won’t expand incomes, it is also working to give some of the Customs Authority services at its braches, including at Bole International Airport which is to start operations in the coming budget year. This branch will give 24 hour service along side other postal services.
Targeting to compete with international companies that currently dominate the market for door to door delivery, EPS has been studying on how to implement this as one distinct service. The study is finalized and the service is expected to be launched in the remaining few months of this budget year. EPS already has door to door delivery for its Express Mail Service (EMS) and now wants to take it full gear by allowing corporate customers in the ordinal mailing service. Currently, EPS charges 48 ETB annually as fee for a postal box and in Addis Ababa areas designed according to the master plan, to start door to door delivery. To asses demand and gain experience in the operation, EPS has started collecting parcels to be sent from customers home and office.
Established on March 1894 by Emperor Menilik who assigned Swiss citizen Alfered Ilg as manager for a postal services administration, EPS is currently a member of the Universal Postal Union (UPU) as an autonomous body under proclamation 240/1966 and is currently under the Ministry of Transport and Communications (MoTC). According to one study, even though historical references show that the postal service is as other services in the modern world, development has been slothful. “The total number of private boxes is not more than 49,000. Prior to 1993 a private box used to serve 1133 people. Now the ratio is 1 : 525 people, “ the study discloses. Even if EPS is yet to feel the impact of e-mail and other advanced communication technologies on revenue, a study conducted by foreign consultants shows that EPS can no longer sustain itself in the market if not engaged in the financial markets as other national postal enterprises do

Nine of 16 enterprises get interested buyers

By Muluken Yewondwossen

Out of sixteen public enterprises the Ethiopian Privatization and Public Enterprises Agency (PPESA) floated for tender in April 2008, only nine got interested buyers when bid documents were opened on June 13, 2008.
Ethiopian Chipwood and Furniture S.C, Chora Gas and Chemical Products Factory, Ethiopia Iron & Steel Factory, Akaki Metal Products Factory, Artistic Printing Enterprise, Ethiopia Spice Extraction Factory, Ethiopia Plastic S.C, Ethiopian Plywood Factory and Alkyd Resin Share Company are those which found potential buyers.
Two companies Indian based Mab Safal and Universal Metals and Minerals Plc Mauritius, showed interest to buy Akaki Metal Products Factory. Mab Safal offered 130 million while Universal Metals offered 170 million birr.
Ethiopia Iron & Steel Factory attracted two more potential buyers including Mab Safal and Universal Metals that offered 91 million and 125 million birr respectively. The other two potential buyers were the Employer’s Credit Association of Ethiopian Iron and Kangaro Plast that offered 93 million birr with 35% down payment and 91 million birr respectively for Ethiopian Iron & Steel Factory.
Akalu Geleta offered 18.6 million birr for the Spice Extraction Factory, Matias Plc 25.4 million birr for Alkyd Resin, Hussen Abdulkadir 50 million birr for Artistic Printing Press, Finfine Forest Enterprise 47.1 million birr for Ethiopian ChipWood, Zamu Plc 6 million birr for Ethiopian Plywood and Addis Gas and Plastic Factory 11 million birr for Chora Gas and Chemical Products.
Amdehune General Trading Plc and Lsweedy Electronic and Construction offered 60.5 million and 47.6 million birr respectively for Ethiopia Plastic SC.
The winners will be disclosed in three weeks.
Nefas Silk Paint Factory, Commercial Printing Enterprise, Yekatit Paper Converting Enterprise, Construction & Coffee Technology Development Enterprise, Addis Spare Parts Import & Distribution S.C, Addis Ababa Foam & Plastic factory and Bricks Products Processing S. C. are the companies that did not find bidders.

Bedilu Building to be auction off 10 million floor price

By Groum Abate

The once famous architectural marvel in Addis Ababa, Bedilu Building, has been put up for auction after the owners failed to pay back their loan to the Construction and Business Bank (CBB).
The building, which is considered as one of the magnificent structural designs in Addis Ababa, is being auctioned off with a floor price of 10,075,000 ETB.
According to the notice published on the state run daily newspaper Addis Zemen, the building owned by Yilma Bedilu would be auctioned publicly on July 18 at the site.
The building's construction was started during Emperor Haile Sellassie I era and completed during the Derg Regime, when it was nationalized. According to Addis Admas newspaper owner Bedilu bought the 1,000 m2 that hosts the building around National Theater for 120 birr per square meter in the Emperor days.
The now 84 year old entrepreneur started constructing the building in 1959 E.C (1967) and completed it after two years. The owner took a loan of 300,000 birr for completing the construction of the building and leased the whole building for 20,000 birr.

IGAD puts new leadership in place

By Addis Mulugeta

The 27thordinary session of the Intergovernmental Authority on Development (IGAD) Council of Ministers and the 12th summit held on June 11, 2008 has appointed Prime Minister Meles Zenawi as chairman and Minister of Foreign Affairs, Seyoum Mesfin chairman of the council.
Engagement of the European Union (EU) in matters of peace and security development infrastructure in the Horn of Africa was also proposed.
Mosses Wetangula, Kenyan Minister of Foreign Affairs, exclusively told Capital that the ordinary annual meeting was held because of the challenges that the region faces and to put in place a new leadership for the organization.
Issues were raised on how to get AMISOM troops to Somalia and applauded IGAD full engagement with the UN Security the Council in the Somali case, IGAD’S contribution in the development efforts in the Sudan and discussion on how to continue the life span of the Transitional Federal Government of Somali whose original mandate is for five years.
“The reason why Eritrea left IGAD remains unclear and as an organization we have invited it to come back and continue its engagement with the organization. Even the Ethio-Ertrea peace process will be best if it was handled by IGAD because we all are one family,” said Honorable Mosses Wetangula.
Ambassador Tom Vraalsen, representative of the Norwegian government and IGAD’s partners co-chair for Sudan stated that Norway has all along supported IGAD’s efforts and now the joint AU-UN efforts for peace in Sudan. Norway continued to support in this important effort of IGAD in security situations of the region.
Seyoum Mesfin, Foreign Affairs Minister on his part said that one of the major constraints on the development of the region has been the instability of politics and the various conflicts. Substantial aid has been given for relief and emergency crises, but it was impossible to address the problems of poverty, food insecurity and environmental degradation effectively without dealing with peace and security issues. Ethiopia has full commitment to support IGAD in all efforts to achieve peace, security and sustainable development.

DPPA issues urgent appeals- 4.6 million people in need

By Kirubel Tadesse

The Ethiopian Disaster Prevention and Preparedness Agency (DPPA), which will shortly be put under the Ministry of Agriculture and Rural Development (MoARD), issued an update in the emergency humanitarian requirement in the country, that takes the people in need to be over 4.6 million from the estimated 4.5 million in recent months.
"Some 4.6 million needy people in drought affected parts of the country require over 325.2 million USD worth of emergency food and non-food assistance to address their needs. In addition, the Targeted Supplementary Food Programme (TSF), that assists children and pregnant and lactating mothers, requires approximately 18 million USD," DPPA disclosed on Thursday June 12, 2008.
The net relief food requirement for the affected is estimated to be 392,000 MT which should be able to satisfy needs from this month until November 2008. Non food interventions in areas such as health, water, sanitation and nutrition, DPPA estimates, to cost 38.6 million USD.
The estimated 4.6 million people are distributed in nine regions; Tigray, Amhara, Oromiya, Somali, Gambella, Harari, Benshangul Gumuz, Southern National and Nationalities People State (SNNP) and Afar. The most affected region by the poor performance of the seasonal rains (Belg, GU, and Ganna) is SNNP which has more than 1.3 million people in need. Over one million are in Oromiya and another million in Somali when 815, 000 are estimated in Amhara state. Capital learned that among the nine regions, the least affected is Harari with 3, 200 people, to take the overall number to 4,617,301.
DPPA Director General, Simon Mechale, called on donors to punctually respond to the appeal. The United States is yet to reply to the current food shortage. The U.S Embassy in Addis Ababa and the United Nations World Food Programme (WFP) announced on June 10, 2008 that the American people, through the United States Agency for International Development (USAID) provided approximately $70 million in emergency humanitarian assistance, which was originally pledged for the 2.2 million people that were expected to be in need. "We knew even then the need would be greater. The problem is that this is only enough to get us through July and after July it is an open question, "USAID/Ethiopia Mission Director Glenn Anders commented to Capital. USAID is seeking finance to respond to the current crisis that has added 2.4 million people to the list. The United Kingdom government pledged 10 million euros last Monday June 9. The donation is in addition to the 5 million euros announced in May.

Parliament to endorse record high federal budget

8.8 bln. ETB deficit weighs heavy
‘ Aggravates an already unbearable inflation rate’

By Kirubel Tadesse

The record high federal budget the Ministry of Finance and Economic Development (MoFED) tabled to parliament last Tuesday June 10, 2008, would exacerbate the already high inflation rate, says Member of Parliament, Temesgen Zewide.
The 54.3 billion ETB (approximately 5.4 billion USD) budget MoFED wants parliament to endorse for the 2008/2009 fiscal year isn’t only a record high but also shows a 21% increment over last year’s budget. This according to Temesgen is a move the government should reconsider. “What this budget increment would do is pump more money into the inflationary cycle and worsen the already dire situation in the nation, “ Temesgen told Capital.
According to the MoFED bill over 13 billion ETB of the budget will be allocated for recurrent expenditure and close to 17.5 billion ETB is for subsidy appropriation to regions. The last segment, about 23.4 billion ETB, is earmarked for capital expenditure.
Minister Sufian Ahmed of MoFED, told the House that agriculture, water and rural electricity, road, education and health projects are prioritized and constitute for more than 64.5% of the proposed 54.3 billion budget.
Commenting on his proposal Temesgen asked why it isn’t normal practice applied of reducing budgetary expenditure in the face of severe inflation. Minister Sufian argued that doing so is a luxury Ethiopia can not afford. “We can’t take inflation as our only challenge as we should pursue infrastructural projects and other development activities. It is maybe the case for developed countries to reduce budgets when the economy suffers from inflation but for Ethiopia, though we are committed to tackling inflation, we can’t afford and shouldn’t slow down development projects,” Sufian responded. Even if there is to be no second chance in parliament [ in the scheduled July 1 and 2 meetings ] Temesgen later told Capital that his proposal was misrepresented by Minister Sufian as he only proposed that the budget should be kept from taking off by such a huge percentage rise and didn’t at all propose to halt development projects. “ The economy is already overheated and individual income is seriously challenged. So, what we should is not increase the budget but rather focus on advancing efficiency and productivity in budgetary institutions, “Temesgen explains of a proposal he plans to present in scheduled Standing Committee meetings, “this should be a time when we sit down and analyze the performance of loss making agencies, instead of just stratifying their financial requests with tax payer money.”
Among major increments, the 500 million ETB for the Ministry of Defense( MoD) is the largest and one which was strongly condemned by Opposition MPs, who sated that the boost is excessive for a poor nation like Ethiopia that could very well use the money on other projects. Sufian disputed this assessment by reminding that despite the increase, the MoD budget is still well short of developmental projects on sectors such as education and roads. “The proposed defense budget is still less than 2% of the country’s GDP, which is quite low in countries that publicize made their defense spending.”
Despite accepting record high budget requests, the MoFED did still disappoint several institutions such as the Ministry of Education, the Prime Minister’s Office and others. The Prime Minister’s Office had asked for over 29 million ETB, only to receive little more than 12 million ETB, if approved by the House of Peoples’ Representatives.
Nevertheless the MoFED already notes that there will be a 8.8 billion ETB deficit as government targets to collect only 45.4 billion ETB in the coming budget year. According to Sufian, 3.7 billion and 164.6 million would be sourced from foreign project loans and debt relief respectively. Around 5.1 billion is to be secured by way of domestic loans. MP Temesgen was quick to recall reservations he made on the recent bill that proposes amendments for unlimited government access to loans from the National Bank of Ethiopia (NBE). “ What does this ‘national’ resources mean? It is from NBE, now the government may ask what it pleases from, “he stated. Minster Sufian responded that banks aren’t targeted for the loans since the sale of treasury bills to the Social Security Authority and public enterprises is likely to cover net domestic borrowing, currently estimated to stand at 4.4 billion ETB.
The House referred the bill to the Budget and Finance Affairs Standing Committee which is expected to propose its final approval in three weeks time.

Ethiopian, Brussels Airlines enter codeshare deal

By Tagu Zergaw

The Ethiopian Airlines has announced that it has entered into a code share agreement with Brussels Airlines giving travelers even better connectivity and a broad range of services between Europe and Africa. Ethiopian operates daily flights to Brussels with Boeing 767-300, aircraft offering 24 seats in Cloud Nine and 211 seats in Economy class.
According to the announcement, the code share agreement, which takes effect as of June 17, 2008, is expected to further strengthen Ethiopian’s flight network between Addis Ababa and Brussels, Belgium and also enable Ethiopian to welcome travelers from a wider target market.
The agreement is the second such that Ethiopian has entered with other airlines. In March 2008, Ethiopian has announced that it signed a code share agreement with German airline Lufthansa. As per this agreement the two carriers jointly provide daily frequency on the Addis
Ababa-Frankfurt route. Ethiopian presently provides three weekly flights service from home base Addis Ababa to Frankfurt on Tuesdays, Thursdays and Sundays, while the in-bound service to Addis Ababa is on Mondays, Wednesdays and Fridays. Lufthansa flies to Frankfurt from Addis four times weekly (Mondays, Wednesdays, Fridays, and Saturdays).
The code share agreement with Brussels Airlines, in addition to improving passenger convenience, will facilitate the operational and handling services offered respectively by the two partners. Likewise, the partners shall enjoy greater access to each others markets with relative ease and flexibility.
We are indeed pleased to partner with Brussels Airlines to further develop the regional business and leisure markets,” said Ethiopian commercial vice-president, Busera Awel.

ERA awards 1.5 bln birr projects to Chinese companies

By MulukenYewondwossen

The final three road projects that remained from thus fiscal years Ethiopian Roads Authority (ERA) plan are finally awarded to three different Chinese construction companies. Two of these projects are in the Afar region while the remaining is in the Amhara region.
Sources within the Authority disclosed to Capital that ERA has allocated over 1.5 billion birr for the asphalt road projects. The contract agreement between the Authority and the construction companies is expected to be signed before the end of June 2008.
The two road projects in Afar region are included in the Hawsewa-Afdera road construction and ERA has contracted out this road project in two phases.
The first phase of the project that stretches for 94 km between Hawsewa to Iripti and is given to China Railway Sevens Group that won the bid at a cost of 746.3 million birr. Cole Field Geological General Investigation won the second phase of the project, Iripti-Afdera, which is of 118 km at a cost of 728 million birr.
When the road construction in the Tigrai region is completed, it will connect the region to Amhara. This project will construct a 71 km asphalt road between Endesilase and Dedebit. The project was awarded to Jiangxi Engineering Construction Company at a cost of 482 million birr.
Ministry of Finance and Economic Development (MoFED) has allocated 8.2 billion birr for the current budget year for ERA. For the next budget year, though the Authority requested more than 12 billion birr, the Ministry allocated 7.7 billion birr, which is the highest from all the other government offices.

Accountants receive scholarships

By Groum Abate

The Association of Chartered Certified Accountants (ACCA) has unveiled a scholarship program which recognizes and rewards talented students who have already excelled on their ACCA exams.
Each year, five ACCA Qualification students will be awarded scholarships which will cover exam and subscription fees for up to five years.
The scholarship was made possible by Ms Muriel Simpson, a Fellow of ACCA, who left money in her will to fund the further education of ACCA students who have already proven themselves to be of sufficient merit and distinction in ACCA Qualification examinations. In addition, scholarship winners will also receive complete sets of ACCA study materials from ACCA’s official publishers, BPP Learning Media and Kaplan Publishing.
In order to qualify, students must have achieved an average of 66% or more in the Knowledge module of the ACCA exams. They must also submit a 1,000-word essay on: ‘How the award of a scholarship will help me to realize my full potential’. The next closing date for applications is Tuesday 15 July 2008.
Commenting on the launch of the scholarships, ACCA chief executive Allen Blewitt, said: “As an organisation, we aim to offer opportunity to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We are delighted that the Simpson Scholarship is another way that helps us do this. We know that the valuable support which the scholarship can provide will make a considerable difference to the lives of some our most talented students who may be finding it difficult to fund their studies.
“We expect many hundreds of applications, but I hope our students in Ethiopia will be amongst the winners,” said Hikmet Abdella, country Manager for ACCA Ethiopia. She further said that the scholarship will be announced on September 30, 2008.
The funding is estimated to be 20 million pounds.

Court adjourns Tesfaye Biru et.al case for verdict

By Groum Abate

The Federal High Court First Criminal Bench adjourned the case of Tesfaye Biru et.al for June 18, 2008 for verdict to defend the alleged corruption or to set free the suspects.
The Federal Ethics and Anti-Corruption Commission’s prosecutor has filed charges against the former Managing Director of the Ethiopian Telecommunications Corporation (ETC), Tesfaye Birru, along with other executives of the corporation, in February 2008 before the Federal High Court first criminal bench, a charge that is related to a 1.54 billion birr loss by the corporation.
The commission accuses the former manager and the others of intentionally giving the green light to the purchase of equipment that was not up to standard.
The court adjourned the hearing for June 18, to decide whether this case should continue to be heard.
According to the charges read in court, the different purchases made by the management and the business deals signed with foreign companies did not follow the proper procedures and gave way to corrupt practices.
“Illegal purchases and controversial agreements with foreign companies without proper procedures caused the Ethiopian Telecommunication Corporation a 1.54 billion birr loss,” the charge reads.
A report by auditors of the corporation has also made liable the previous five management members and other individuals of the corporation for being involved in corruption in relation to two projects. The five are Tesfaye Biru, former ETC General Manager; Abebe Belayneh, former Deputy Manager; Asfaw HaileMariam, former Information Technology and Data Service General Manager; Abayneh Abebe, former Telecom Service General Manager; and Abebe Taye, former Telecom Network Acting General Manager.
In related development ETC announced that the 1.2 million network capacity mobile telephone service project of the millennium has already gone operational.
Corporate communication general manager with the corporation, Abdurahim Ahmed, said that the project, executed at a cost of 769.6 million birr, has enabled 600,000 subscribers to get access to mobile telecom services.
Preparations are also underway to launch third generation mobile project. The second mobile project is aimed at enhancing the current mobile network capacity to 5.6 million and expanding mobile network to all towns across the nation. A total of over 4.3 billion birr is allotted for the execution of the project.

Ethio-Norwegian trade and investment seminar in Oslo

By Addis Mulugeta

A well attended Ethio-Norwegian trade and investment seminar was conducted last week, on June 3, 2008, in Oslo, the capital of Norway, in a cooperative effort between the Ethiopian Embassy to the Scandinavian countries (Stockholm) and the Royal Norwegian Embassy in Addis Ababa.
More than 50 participants from a range of Norwegian business and government institutions participated at the seminar held at Innovation Norway, an agency for facilitating trade and international business consisting of the former Norwegian Tourist Board, Norwegian Trade Council, Norwegian Industry and Regional Development Fund, SND and the government consultative office for inventors, SVO.
According to the Royal Norwegian Ambassador to Ethiopia, Jens-Petter Kjemprud the seminar focused on trying to attract greater interest among Norwegian business and investors to a number of sectors contributing to the Ethiopian export potential, namely, leather and shoes, flowers, coffee, handicraft and tourism. In a key note address to the seminar, Ethiopian Ambassador Dina Muffti emphasized the high growth rate of the Ethiopian economy over the last four years and attributed it to the improved investment climate in the country. Ambassador Jens-Petter Kjemprud expressed that trade and investment between the two countries has a huge untapped potential and a strongly urged Norwegian business, companies and investors to look to Ethiopia. He underlined that the huge infrastructure developments in Ethiopia have released a new dynamic in Ethiopia’s economic development and that the economic development has created a new middle class in Ethiopia with a purchasing power which should also attract Norwegian exporters and investors.
Ambassador Jens-Petter applauded that representatives from HSH-the federation of Norwegian commercial and service enterprises which is Norway’s leading organization for business and employers in the private services sectors –and the Norwegian Development Agency ( NORAD), focus on areas where the two organizations could support trade and investment between Ethiopia and Norway Dr.Degemu Sheraga, economic counselor at the Ethiopian Embassy, gave details of the new investment climate, and of the efficient rules and regulations for investors in Ethiopia, overhauled five times in resent years. The area manager of Ethiopian Airlines, Paulos Sime, on his part explained the facilitation role Ethiopian Airlines could play for trade through its comprehensive cargo network from Ethiopia to Europe including Scandinavian.
Participants from among Norwegian companies told the seminar about their experience in doing business in Ethiopia among them companies importing flowers, coffee and honey from Ethiopia. It also transpired that a lot of trade between the two countries is not reflected in trade statistics as trade is conducted through agents in other countries. Ideas on how to create direct links and relations were discussed as this would benefit both the Ethiopian producers as well as the Norwegian customers. Examples of red tape problems experienced in Ethiopia and lack of support from Norwegian authorities were also touched upon with a view to improve the situation create a more conductive environment.
Norwegian companies from other sectors than those given particular attention also participated, among them those active in hydropower development. The two Ambassadors also conducted a number of meetings in connection with the seminar. Those include meetings with Yara, the fertilizer producer, hydropower companies as well as with the State Secretary for International Development in the Ministry of Foreign Affairs.
Jens-Petter noted that the seminars lead to new initiatives to start trade and /or investment in Ethiopia from some of the companies in tourism, coffee, and flower imports as well as engagement in the hydropower sector.
“The trade and investment seminar attracted attention from a higher number of business and government officials than we had expected”, says Ambassador Jens-Petter Kjemprud.

Road fund collects ~5bln birr in 10yrs

By Tedla Yeneakal

The Ethiopian Road Fund Office (an office that operates under the Ministry of Works and Urban Development) in the last ten years of operations has collected up to 5 billion birr, up to the budget period ending April 2008.
According to a report presented to the House of Peoples’ Representatives last week, the Road Fund collected 4.8 billion birr from road fund tariff on fuel and Value Added Tax (VAT) revenue imposed on fuel during the stated period.
Moreover, the Fund’s revenue from government treasury bills and a bill-bond sale to the Ethiopian Telecommunications Corporation (ETC) exceeded 28 million birr.
The Fund also amassed 1.8 million birr from imported vehicles revenue via the Ethio-Djibouti and Ethio-Sudan corridors based on the bilateral agreements between Ethiopia and the two countries.
The report further stated that the budget allocated for road maintenance that is passed on to the executive bodies in the past ten years up to March 2008 reached 4.67 billion birr.
“Up to 86 percent of the budget has been transferred to the agencies,” the report stated.
In the 1991 Ethiopian budget year, the distance of maintained road that has been covered was 18,610kms, comparatively in the last Ethiopian fiscal year 1999, this coverage has reached 23, 116kms, and increased by 24.2 percent in the last 8 years, the physical executive report for parliament indicated.
According to a sample study carried out during the 1994-95 (2002-2003) Ethiopian budget year by the road agencies, shortage of construction materials and limited capacity have been major obstacles to utilize the budget.
To resolve the shortage of construction materials, the report said that a 200 million birr fund has been allocated for the purchase of construction materials and 87.6 million birr of the stated amount has been used.
The Ethiopian Road Fund Administration Office was formally opened in June 1998. Its main objective is to finance the maintenance of roads and enforce road safety measures. The office’s first annual budget amounted to 162.9 million Birr (US$ 23.27 million). Of this, some 70 per cent was allocated to the Ethiopian Road Authority, 20 per cent to regional road works and 10 per cent to selected municipalities.

Bambis initiates dialysis center’s

By Our staff reporter

Greek businessman Charalambos Tismas who is also known by the name Bambis (the owner of Bambis super market) invited over 40 ambassadors to Olympiacos Club to contribute for the establishment of a dialysis center on June 8, 2008.
On the occasion, Bambis told Capital that he has already discussed the existing problem with many other ambassadors and they have expressed their willingness to support the donation.
“I am sure that with your help a good amount of money will be collected that enables the purchase of 20 or 30 dialysis machines,’’ said Charalambos Tismas.
“I am appealing to all of you who represent your countries to contribute to raise as much money as possible to buy the dialysis machines. Myself, I am willing to offer 1 million birr to buy the first Dialysis machine,” Bambis said in his speech.
To secure a normal function dialysis machines, need filtered and ionized water requiring qualified doctors and nurses making it obviously costly.
He told Capital that he has visited Dr. Tewodros Adhanome, Minister of Health to discuss on this issue. “I asked him that if we provide the Dialysis machine if the Ministry can undertake running cost but he told me that the government has presently other priorities like HIV and malaria and there are no available funds to undertake such a cost,” he added.
“Therefore what I suggest is that after you have discussed with your governments to let us know of the amount that you can contribute,” said Charalambos Tismas to the ambassadors that attended the occasion.
There are only four dialyses machines in Ethiopia for treatment, a kidney patient requires over 15 thousand birr per month.

Delivering the promise of safe birth

By Our staff reporter

The Ministry of Health, the U.S. Agency for International Development (USAID), Save the Children, UNICEF, WHO and other partners called on donors, the private sector, non-governmental organizations, and citizens across Ethiopia to “deliver the promise – for safe pregnancy, child birth and post natal care” as they marched in Addis on Thursday, June 5 to kick off the first-ever celebration of safe motherhood that was held on Friday, June 6, 2008.
In Ethiopia 26,000 women die annually of complications in pregnancy. The majority of deaths occur at home. According to the Countdown to 2015; tracking progress in maternal, newborn & child survival 2008 Report, the number one cause of maternal death in Ethiopia is hemorrhage; only 12 percent of women have 4 or more antenatal visits – while only 5 percent of babies receive postnatal care. Less than half of the mothers are breastfeeding exclusively (without adding other foods) for the recommended for six months.
According to Save the Children’s recent State of the World’s Mothers Report, almost all births in Ethiopia take place at home (94 percent), one child in eight dies before reaching age five, and most mothers and children who need care live too far from a road, let alone a health facility.
According to USAID Mission Director, Glenn Anders, “The good news is that Ethiopia has made remarkable progress in improving health care for children and has cut its under-five mortality rate by 40% since 1990. Much of this success is due to the September 2005 Government of Ethiopia launch of the health extension worker program – focused on building health centers, and promoting linkages from households to health centers by employing 30,000 health extension workers by 2010. The U.S. Agency for International Development is happy to be a partner in these activities to improve the promise of safe delivery to the women of Ethiopia.”
According to Dr. Shiferaw, the State Minister of Health, “Currently 24,000 of the 30,000 Health Extension Workers have been deployed. From Oromia 350 health extension workers have just received training from ACCESS Program and Save the Children in clean and safe delivery. We will now scale up the training to ensure all health extensions workers will develop skills in clean and safe delivery and newborn care.” He added, ‘With the ability to reach 85% of the population in rural areas, we have faith that these newly trained health extension workers will contribute to our success in achieving the MDG goals 4 and 5.”
“It is very clear that there is an essential link between safe motherhood, child survival – and in particular newborn survival,” stated Dr. Tedbabe Degefie, the Head of Health and Nutrition for Save the Children USA. She added, “We believe the best way to promote and strengthen the partnership for maternal, newborn, and child health is by ensuring the implementation and harmonization of interventions included in the Health Sector Development Program (HSDP). Dr. Tedbabe continued, “As a member of the Safe Motherhood Technical Working Group, Save the Children is working in partnership with the Ministry of Health to ensure that safe delivery and post natal care will guarantee that both mothers and their newborns survive and thrive.”

Climate change, carelessness affects heritage sites

By Addis Mulugeta

A conference focusing on natural and historical heritages development and preservation in the millennium and beyond was held on June 10, 2008, at the Ghion Hotel.
Participants include President Girma Wolde Giorgies, different governmental and non- governmental organizations, the private sectors and over other participants.
A research presentation was conducted on Ethiopian natural resources, the effect of climate change and the efforts of Ethiopia Heritage Trust and the situation of Addis Ababa’s heritage and design in related with natural resources. According to observers and researchers, some of the heritage sites in Addis Ababa are in critical danger due to climate change. Some historical sites are destroyed and some house many urban dwellers. The professionals underlined that the historical houses in the city have to be preserved and to increase the tourism sector.
The major objective of the conference was to build and raise awareness on preservation and development of the sites to contribute to the development of the country. Participants actively participated ideas on the issue.
President Girma Wolde Giworgies stated that the effort to develop historical and natural sites is not only a government duty but also other concerned bodies to add - value to the development effort of the country. The option to preserve the sites is simply a direct participation and involvement to cover the country with green and preserve the historic sites.
Dr. Theodros Atlabachew, National Project Coordinator with Ethiopian Cultural Heritages said on his part that the conference invited higher officials, civil societies, private investors and researchers to a productive approach on the situation.
On the other hand, the conference strengthens the participation of the community and to transfer better heritage to the next generation.

Ethiopia to host first trade fair in Southern Sudan

By Tedla Yeneakal

Eighty Ethiopian companies are set to take part in a general trade fair in the town of Juba, capital of Southern Sudan is semi-autonomous government, from August 8 to 14, 2008.
Teshome Negash, Operations Manager of Planet Promotions Service Plc, (the local company coordinating the trade fair), told Capital that Ethiopian companies engaged in different activities mainly in the construction, agriculture, education and the health sectors are expected to take part in the fair.
"Local companies will highly benefit from the trade and investment interaction that they will be making with the Southern Sudanese Government as well as with members of the business community of Sudan,"
Teshome said. "Our company has reached an agreement with the Ministry
of Commerce Trade and Supply of the Southern Sudan Government to coordinate the participation of Ethiopian companies."
Southern Sudan is a region of the Republic of Sudan, comprising ten
states. After the Sudanese government agreed to give semi-autonomy status to the region in the Comprehensive Peace Agreement (CPA) signed on January 9, 2005 in Naivasha, Kenya, the civil war came to an end. According to the operation manager, the fair, which is billed 1st Ethio-Southern Sudan Trade Fair and Cultural Week' is considered to become an appropriate platform for business communities of the two countries, opening doors for trade and investment.
Southern Sudan, also known as New Sudan, has nearly all of its administrative offices in Juba, the capital, which is also the largest city,
based on population estimates.
Three years after a deal was signed to end the long conflict in southern Sudan, bulldozers and diggers are hard at work transforming Juba, a town of mud huts and dirt roads, into what could soon be a 21st century international capital, according to observers who have traveled into the region.
Recently, a meeting comprising of high-ranking government officials of the two countries was held in Addis Ababa to discuss the strengthening of bilateral relations signed earlier by the two governments in the areas of technical and cultural cooperation.

Bankers, governor debate National Bank draft law

Saudi billionaire shows interest in Sodere, EPHARM

UDJ says police ban founding congress

AB.HAM promotes more, better cement

After 7 yrs trial, former CBE officials get final verdict Expected to be released tomorrow

City to tackle inflation, food shortage

Postal Service to stretch legs with money transfer Door to door delivery soon

Nine of 16 enterprises get interested buyers

Bedilu Building to be auction off 10 million floor price

IGAD puts new leadership in place

DPPA issues urgent appeals- 4.6 million people in need

Parliament to endorse record high federal budget

Ethiopian, Brussels Airlines enter codeshare deal

ERA awards 1.5 bln birr projects to Chinese companies

Accountants receive scholarships

Court adjourns Tesfaye Biru et.al case for verdict

Ethio-Norwegian trade and investment seminar in Oslo

Road fund collects ~5bln birr in 10yrs

Bambis initiates dialysis center’s

Delivering the promise of safe birth

Climate change, carelessness affects heritage sites

Ethiopia to host first trade fair in Southern Sudan

Bankers, governor debate National Bank draft law

Saudi billionaire shows interest in Sodere, EPHARM

UDJ says police ban founding congress

AB.HAM promotes more, better cement

After 7 yrs trial, former CBE officials get final verdict Expected to be released tomorrow

City to tackle inflation, food shortage

Postal Service to stretch legs with money transfer Door to door delivery soon

Nine of 16 enterprises get interested buyers

Bedilu Building to be auction off 10 million floor price

IGAD puts new leadership in place

DPPA issues urgent appeals- 4.6 million people in need

Parliament to endorse record high federal budget

Ethiopian, Brussels Airlines enter codeshare deal

ERA awards 1.5 bln birr projects to Chinese companies

Accountants receive scholarships

Court adjourns Tesfaye Biru et.al case for verdict

Ethio-Norwegian trade and investment seminar in Oslo

Road fund collects ~5bln birr in 10yrs

Bambis initiates dialysis center’s

Delivering the promise of safe birth

Climate change, carelessness affects heritage sites

Ethiopia to host first trade fair in Southern Sudan

After 7 yrs trial, former CBE officials get final verdict
Expected to be released tomorrow

Postal Service to stretch legs with money transfer
Door to door delivery soon

After 7 yrs trial, former CBE officials get final verdict
Expected to be released tomorrow

Postal Service to stretch legs with money transfer
Door to door delivery soon