Ethiopia Awards Freight Terminal Expansion Contract Under Horn of Africa Economic Corridor Project

Introduction

The Horn of Africa Initiative has reached another milestone as Ethiopia awards a major construction contract to expand the Decheto Freight Terminal along the Addis-Djibouti Corridor. The project forms part of the Regional Economic Corridor Project, a World Bank–financed program designed to strengthen trade, logistics, and regional connectivity.

Contract Details and Scope

The contract award, published on 3 December 2025, is financed through IDA-E2160 and was procured using a Request for Bids (RFB) process.

Key contract highlights:

• Project- Horn of Africa Initiative - Regional Economic Corridor Project (P174485)

• Procuring Entity- Ethiopian Ministry of Transport and Logistics

• Contract Reference - ET-MOTL-481977-CW-RFB

• Scope - Construction and expansion of the existing Freight Terminal at Decheto site

• Contract Duration - 18 months

• Contract Value - ETB 490,710,285.13

• Award Notification Date - 12 November 2025

The project aims to increase cargo handling capacity and improve logistics efficiency along one of East Africa’s most important trade corridors.

Winning Bidder and Tender Results

The contract was awarded to Kerarasa Godana General Contractor, based in Yabelo, Ethiopia, after submitting the lowest evaluated bid.

Competing bidders included:

• Bokra Construction and Trading PLC - ETB 792,860,927.97

• Lucky Path Construction PLC - ETB 704,124,191.54

• SAMKT Engineering and Construction PLC - ETB 541,367,233.82

• Macro General Construction and Trading PLC - ETB 612,446,336.94

• Tewodros Adimasu General Contractor - ETB 728,655,712.94

Suba Engineering was rejected due to a non-responsive bid.

Strategic Importance for Regional Trade

The Addis–Djibouti corridor is a lifeline for Ethiopia’s import and export activities, handling a significant share of the country’s international trade. Expanding the Decheto Freight Terminal will:

• Increase cargo throughput capacity

• Reduce logistics bottlenecks and transport delays

• Improve cross-border trade efficiency

• Strengthen regional economic integration in the Horn of Africa

The project supports broader efforts to modernise transport infrastructure and enhance supply chain resilience in East Africa.

About the Winning Contractor

Kerarasa Godana General Contractor is an Ethiopian construction firm with experience in infrastructure and logistics projects. Winning this government contract strengthens its role in large-scale transport and trade infrastructure development.

Conclusion

The freight terminal expansion marks another step toward transforming the Addis–Djibouti corridor into a modern logistics hub. With construction scheduled over the next 18 months, the project is expected to boost trade efficiency and economic growth across the Horn of Africa region.

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