Ethiopian Road Administration

Ajire – Kerakr - Ketema Nigus Design and Build Road Project

Contractor’s Progress Challenge Report

Contractor :- Powercon PLC in JV with Tesfaye Legesse Construction

Consultant :- G & Y Engineering Consult Plc. December 2023

Outline

 Part I: Project Status - Idle Machineries status

 Part II: Project Security Challenges
 Part III:- Incidents occurrence, and Causes
PART I: Project Status - Idle Machineries status

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Part

I: Project Status
Connects Dabat and Tsegede woreda with a 57 km DB - DBST surfacing DC4
Geometric standard road Project
• BOP - Ajire Town 43+200 and EOP 99+140 (Ketema Nigus)
• Powercon PLC JV with TLC and the Subcontractor TONSA engaged Contract
amount:- 1,158,659,797.00 ETB including 15% VAT
 Project Status as of end of May 2023 :- 63.79% Physical Progress (36.36KM)
 Project Commenced on 21st of September 2018
• Contract period :-1095 Calendar Days
• Total Requested EOT:- 1206 Calendar Days (Ends on January 8th -2025)
• Approved EOT :- 706 Calander Days (including interim EOT till August 27th 2023)
• 505 calendar days (excluding consequential delays associated thereof ), was a
recorded total cessation period due to security- apparent disorder
• Disorder days requested EOT 1- 98 days, EOT -2 181 days, EOT-3 216 days EOT – 4 74
days ( total disruption requested dates 569 days as August 19th 2023
Part I: Project Status and Idle resources
No Equipment Type Site Availability in Number

1 Dozer 5
2 Grader 2
3 Excavator 13
4 Wagen Drill 2
5 Roller 2
6 Loader 3
7 McCloskey Crusher (3 unit) 1
8 Dump Trucks 5
9 Water truck 2
10 Fuel Truck 2
11 Generator 6
12 Mixer 7
Part II: Project Security Challenges
Part II: Project Security Challenges Continued…
 Sample Security challenge on 2015 E.C
 Disruption at crusher site due to ROW payment delay (from
September – end of Oct 2023 ( 61 days )
 Project cessation - Security challenge:- (Jan 2nd – Feb 18th 2023
I Cr and June 6, 2023 until now)
2015
n Calander days
us Consumption
ef her


R
fe
ct
iv
O
W; Disruption due ROW payment delay: road blockage and
61;
e 17

disruption at road corridor mostly Tsegede woreda

C %
o
n
st Ce


r
u
ct
ssa
tio
n
Disruption due to Government disbanding rebels:-
io du
n
Lawlessness and effect on work execution and supply challenge
Dis e
P rup to
e tion Se
ri due cu
o to rit
d
;
1
RO
W,
31,
y ;
13
starting from April 2023 (Lot I closed for > 2 weeks)
Crusher ROW 9% Cessation due5;to Security
3 37

Disruption due to ROW Ineffective Construction Period
7
;
3
%
Ineffective Construction Period:- was 137 days (38% of C.
8
%
days)
7
Part II: Project Security Challenges continued…
 Contractor Main challenges
1. Security/Disorder Direct Nature:-
 Killing of Project Staffs
 Attack on Contractor’s Staff,
 Harassment and intimidation,
 Kidnapping of project staff
 continuous robbery and looting of properties
Effect :- Project Cessation, and stoppage of work
Security/Disorder Indirect Effect
 Inability to mobilize/demobilize resources,
 Lessors declination to lease and transporters declination to serve,
 Key staffs decline to go to site
 Huge cost of reorganization and remobilization after each disruption 8
Part II: Project Security Challenges continued…

 Contractor Main challenges

2. Disruption:- due to delay of ROW payment and which resulted
 road blockage and work stoppages
 Hinderance on Resources Mobilization and demobilization
Effect
 Inability to schedule
 Inefficient execution of the works,
 Significant time related additional cost,
 Huge additional cost of mobilization and demobilization
 Further increased cost due to recurrent inflation

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Part II: Project Security Challenges continued…

 Contractors Other Challenges:-

 Belated payments ROW
 Inflation and rise of cost of construction materials, spare
parts, fuel and equipment rental costs
 Discontinuous execution of work due to delay of
obstruction removal
 Related Cost overrun and excessive prolonged stay and
related Idle costs (Manpower, Spoil and idle machinery
costs)

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Part III: A. Incident occurrences, and
B. Incident continuity Causes

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Part III: Incident occurrences
 Notable Incidents on execution of project works:-
 Killing of contractor staff (Death of Loader operator on cold blood murder)
 Attack on Project staffs including trial of assassination of PM, PA and other
 Kidnaping of project staffs and Intimidation
 Continues Bullet Attack on small vehicles, Dump trucks and Operators
 Attack on guards, Contractor’s and Engineer’s office which costed 5 human life
 Bullet shooting incidents on site visit on presence of ARE and PM
 Killing of policemen on different occasions
 Engagement of cross fire and attack on deployed special forces
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Part III: A. Incident occurrences cont’d….
 Attack on Project staff using sharp material
 Repetitive Road Blockage and robbery (3 incident occurrences in one Month
including an attack on employer’s representative staff on May 2023)
 Life threatening incident in near and cross by conflict within the local peoples
 Threatening Subcontractor project manager and construction Engineer
 Attack on Forman while doing works and later left the contractor due to threat
 Incident occurrences on every Saturday and half day project closure
 Attack on meeting gathering including the presence of woreda administrator and
zonal higher officials (death of rebel)

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Part III: A. Incident occurrence cont’d….
 Prevailing restrictions, Sporadic and unpredictable armed engagement between
government forces and rebels (on both April 2023 and recently since November 11th
2023)
 Forceful usage of contractors property and threatening the contractor for legal act
 Continuous looting of contractor’s property from project site camp (Fuel, cements,
reinforcements, Mixers, radio communication devices, Equipment parts, tools and
materials including plywood formworks and woods,
 Hinderance and forbidding of demobilizing resources which in turn affect on
project’s resources balancing.

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PART III: Incidents occurrences cont’d….
Project full suspension recorded Periods (more than 505 days)
 Kidnaping of 2 contractor’s Staff and 2 Policemen, and bullet attack on
13 peoples and death of 6 persons
From February 12-17 2020 and Feb 25 – May 23 2020 (62 days)

 Killing on contractor’s Operator, and Tigray war

From July 27th 2021 to February 28th 2022 (216 days)

 Attack on Project camp and Contractor Staff including PM,

From January 2nd 2023 to February 18 2023 (45 days)

 Attack on Project camp and Contractor Staff, death of 1 person (attack on

woreda and Zonal Officials)
From June 5th 2023 to till now (More than 182 days)
PART III: Incidents occurrences cont’d….
Project other security records partial disruption
 Disruption of Project work on different location due to ROW problem.
From project commencement effect on (132 days) (data collected
from more than 70 notice letters

 Security challenge and project half days execution on every Saturdays at

Ajire front
From project commencement to date effect on (156 days)
PART III: Incidents occurrences cont’d….
Contractors other challenge due to disorder,
 Inability of head office team to visit and supervise the site
 Execution of work with unbalanced resource
 Difficulty on mobilizing resources (Manpower equipment and material)
 Financial burden High cost to endure for reorganization
 Idle cost of resources stranded and bank loan commitments
 Inability to mobilize dynamite
 Loss due to prolonged Disruption of Project work on different location
due to ROW problem.
 Security challenge and project half days execution on every Saturdays at
Ajire front
Part III: B. Incident continuity causes
 Woreda and Zonal administration incapability and failure on securing the
environment
 Laxed prosecution measurement
 Relaxed public awareness creation and failed promises
 Lawlessness and less effort on controlling wrong doings
 Assigned woreda militias absence on the active sites failed action on wrong doings
which is boldly seen on January 2nd 2023
 Negligence of woreda and police officials. Even though the contractor noticed
them to take measures and failed on prosecuting wrong doers
 early release of intruders and attackers and failed act of prosecution by the woreda
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Thank You