CoST Ethiopia Delivers Savings of $2.35m on Road Project

The disclosure of Project Information and an Assurance Team Report on a 33km rural road between Gindebir to Gobensa in Southern Ethiopia, has led to an estimated cost saving of 40m birr or $2.35m. The Assurance Team highlighted that the cost estimate at the design stage was 26m birr per km, whilst the feasibility study had made a cost estimate of 7m birr. At contract award the price had been reduced to 23m birr, but it was still set to be the most expensive road in Ethiopian history.

The disclosure of the report sparked considerable interest in the project amongst the media and led to the Ethiopian Roads Authority and the Supervising Engineer accepting a recommendation from the Assurance Team that an alternative design be developed for the 2.5km stretch of the road. The estimated cost saving of 40m birr is the equivalent of a new hospital in an urban area.