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Focusing on the Dallol Potash Project in Ethiopia

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Fertiman

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More details on the Allana hall road.

posted on Jul 18, 2014 01:24PM

I don't forsee Allana having to pay for the road to their property. From what RK was saying teh govt was looking to approve it in the last budget. Hence the July story below. If teh govt just approved the road then it would make sence construction would start towards the end of 2014 as Allana's press release comments on.

From Allana's June update

http://www.allanapotash.com/s/Presentations.asp

Plan to initially truck all potash to the port of Tadjoura in Djibouti (550km each way)
Government-built paved road from Afdera to Tadjoura
Government has committed to extend paved road to Dallol and to Tadjoura; construction underway
Feasibility Study includes contingency to construct 120km haul road, if needed for timely completion
Construction of Dallol extension to be completed by 2015 (before mine production start-up)

Now the update from Allana's end of June Press release....

INFRASTRUCTURE BUILD

Construction at Tadjoura Port in Djibouti is proceeding and target completion is projected by the Djibouti Ports and Free Zones Authority (DPFZA) for Q1 2016. Allana expects to be granted construction access for the Tadjoura Potash Terminal facility starting from mid-2015.
Allana is completing the final elements of the commercial arrangement with the DPFZA, having clarified the physical and operations service interfaces between the DPFZA Tadjoura Port and Allana Tadjoura Potash Terminal facilities.
Construction of 120 km of upgraded highway in Djibouti is also proceeding with completion projected by the Djibouti Ministry of Transport and Infrastructure to be by early 2015.
Construction of 110 km of highway in Ethiopia near Allana's project site is expected to start with contracting by the Ethiopian Roads Authority in late 2014.
Tender is now out for the construction of the 216 km Asayita to Tadjoura railway project with contractor bids due to the Ethiopian Railway Authority in early August 2014.

NOW... the news story from July regarding the road...

Ethiopia: HPR Ratified Loan Agreement for Ethio-Djibouti Road

Written by Alemayehu BachaPublished on 01 July 2014Category: Latest Business Alerts

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A 3.73 Billion Birr loan agreement with the China EX-IM Bank was ratified by Ethiopia’s legislature, House of People’s Representatives (HPR). The loan is secured for the upgrade of the 210 Kilometers Dire Dawa – Dewalle road project.

The loan is one to be paid in 20 years at a two percent interest and seven years grace period.

The ratification proclamation was tabled to the House by the Budget & Finance Standing Committee on June 2, 2014. The standing committee on its part, it discussed the bill with four experts; three from the Ministry of Finance and Economic Development and one from the Ethiopia Roads Authority.

The road construction is going to be done by CGC Overseas Construction Group LTD (CGCOC). This is done as per the finance deal that was concluded earlier, Samson Wondimu, Communications Head at ERA said. Nonetheless the supervisor to the project has not yet been selected.

The road is going to be 15 Meters wide in town section and 10 Meters in rural section. The construction is said to start in September 2014.

Samson noted the construction of this road is aimed at strengthening economic linkage between Ethiopia and Djibouti.He furthered it will enhance transporting raw materials and finished products from the Industrial Zone that will be constructed in Dire Dawa as well the traffic flow in the route.

According to Fortune the road is part of the fourth Road Sector Development Program (RSDP IV), which has rehabilitated, upgraded, constructed and maintained 41,664km of roads since it was implemented in July 2010.