The state-owned military complex, Metal & Engineering Corporation (MetEC), requested nearly 50pc additional payment for the construction of Yayu Multi-Complex Industries Project.
MetEC, headed by Kinfe Dagnew (Maj. Gen), received the project in 2012 to construct a plant sprawled on 54,000sqm in Illubabor Zone, Oromia Regional State for 11.08 billion Br. But it requested to raise the project cost to 20 billion Br.
The Plant’s construction was scheduled to be finalised within four years. However, it extended the contract period two times with an additional cost of 3.5 billion Br, and now, to 20 billion Br.
The Plant is expected to produce 300,000tns of Urea, 20,000tns of ethanol, 250,000tns of DAP fertilisers and 90MW of electric power annually, consuming 9.2 million tonnes of coal.
Though MetEC took 60pc of the payment, it could only cover 43.8pc of the construction cost, according to the Auditor General’s report to the parliament