A Case Study about Chinese Construction Project in Ethiopia
Abstract: The Federal Democratic Republic of Ethiopia is becoming a prosperous construction market generally. Addis Ababa Ring Road Project used to be the first important project by which Chinese contractor open huge potential market in Ethiopian. This case study offers a window into the working conditions, staffing arrangements, project organization, claims processes, and political dynamics associated with the Ring Road project, a Chinese constructed project in Ethiopia. The case study also highlights how Chinese contractors perceive their strengths, weaknesses, opportunities and threats relative to both domestic firms and western competitors.
Introduction and Project Background: The Federal Democratic Republic of Ethiopia, a landlocked African country, covers a territory of 1.133 million square km, has a population of 77.4 million composed of 80 ethnic groups, and has a GDP per head of $100 per person. Alongside Congo and Myanmar, Ethiopia possesses the lowest GDP per head of all countries worldwide. To revivify the domestic market and move toward a market economy, the Ethiopian government launched an economic reform program in 1992. In order to restore Ethiopia’s road network and develop institutional capacity within the road agencies, the Federal Democratic Republic of Ethiopia passed policies, regulations and legislation in 1997 under the auspices of the Road Sector Development Program (RSDP). The RSDP was formed to provide a coordinating guideline for planning and supervising road projects around the country.
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