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Ambasciata d’Italia ad AddisAbeba

SERVIZIO NEWS 04.01.2016

ETHIOPIA Fiera Internazionale “ACITF 2016” di Addis Abeba ............................................. 1

Ethiopia preparing to bid for UNSC membership ................................................ 2

Attaining GTP II is the only option in the struggle against poverty-GCAO ............ 3

TNC selects new firm to take on GERD study ..................................................... 4

The Second Radisson Blu Hotel in Ethiopia to Begin Operation............................ 5

Ethiopia to Host Two Major International Conferences Early 2016 ...................... 6

Vitol Wins Fuel Supply Tender to Ethiopia ......................................................... 7

Starwood to Open Four Points by Sheraton Hotel in Ethiopia .............................. 8

SOUTH SUDAN South Sudan armed opposition faction says forces may deploy in Juba by mid-

January9

DJIBOUTI Djibouti UPS port service quality .................................................................... 13

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[SERVIZIO NEWS] January 4, 2016

Fiera Internazionale “ACITF 2016” di Addis Abeba


Ethiopia preparing to bid for UNSC membership

The Ministry of Foreign Affairs (MoFA) of Ethiopia said preparations are underway to bid for a non-permanent member of the United Nations Security Council (UNSC).

(02.01.2016 – WIC)

In order to make the country a member of the Council, preparations are underway to carry out election campaign, do lobbying and draw lessons from other countries, Dr Tedros Adhanom, Foreign Affairs Minister said.

Successful activities were carried out at the Arab-Africa and Africa-South America summits held on the sideline of

the 70th United Nations General Assembly in New York, he said.

The country had expressed its stand at the ministerial and heads of states meeting held on South Sudan and Burkina Faso at the African Union as well as at the UN peacekeeping mission and UNSC meetings on terrorism, he said.

In addition to its active participation at the meeting convened to adopt the post 2015 development agenda, the country had delivered a speech at a meeting of the UNSC on Somalia by representing IGAD, he said,

Ethiopia is the only the East African country put forward as a candidate for membership as Seychelles had agreed

to leave its candidature for Ethiopia, he said.

According to him, getting two-third vote from the present member states won’t be difficult for Ethiopia in order to be accepted by the UNSC.

Ethiopia had earned 186 of the 190 total votes during its election as a member of the UN Human Rights Council and this shows that the country is in pole position to become a non-permanent member.

Ethiopia had been a non-permanent member of the UNSC for two terms in 1967-68 and 1989-90, it was noted.


Attaining GTP II is the only option in the struggle against poverty-GCAO

The Government Communication Affairs Office(GCAO)said that attaining the second Growth and Transformation Plan(GTP II) is the only option to succeed in the struggle against poverty.

(01.01.2016 – WIC)

In a weekly press releasing stating stand of the government the office noted that though the goals set during the first growth and transformation plan period were ambitious, considerable strides are made in power generating, road construction, industry, education and health sectors. But the statement reiterated that a lot more could have been achieved if there were effective performance capacity, and there was efficient prevention mechanisms on rent seeking practices and tendencies. Rent seekers have abused the system in order to make it favorable for

attaining their selfish personal interests and they have continued to be major obstacles in the effort to attain set goals by the government and the public at large , the statement noted. The government and the public at large have reached on consensus on the level of this problem and on the urgent need to fight against it jointly. The statement noted that the rent seekers are trying to block the already started joint struggle by creating havoc here and there.

We are at a critical juncture that the struggle has now become between those who want to destabilize the country and the government and public at large who want to sustain development and democratic system in the country, the statement underscored. The Ethiopian government and the public have no any other option than sustaining the struggle against poverty and creating a developed

and stable country at this decisive juncture, the statement underlined.Side by side with the utmost effort to attain the goals set for the coming five years, we shall strengthen the struggle against rent seekers, it added. The government is making unreserved effort to prevent the climate change induced drought via expansion of irrigation and reforestation. it has also planned to instill successful schemes in the struggle against rent seeking, the statement said. The second GTP shall be a moment to ensure reliable economic development and equity in the country. The government needs to successfully abate the challenges to be posed by agents of rent seeking and corruption during the period, the statement noted. Lack of good governance and other social problems created by poverty shall be adequately addressed, it added.


TNC selects new firm to take on GERD study

A tripartite national committee (TNC) of Ethiopia, Sudan and Egypt has agreed to commence the long delayed study on the Grand Ethiopian Renaissance Dam (GERD) within the next month. A French consultancy firm, Artelia, has replaced conflict ridden firm Deltares previously selected to conduct the study. Artelia will be a sub consultant under the main consultant BRL Ingenierie.

(04.01.2016 – Capital)

Over the previous five months, the tripartite National Technical Committee (NTC) has undertaken several

meetings to resolve conflict between two companies initially selected in April last year. The two firms, the Dutch Deltares and French BRL Ingenierie, were unable to work together on the study causing several delays in project deliverables. The Deltares, Egypt’s preferred firm, later withdrew from the project leaving BRL Ingenierie in charge.

The ministerial meeting held for three days until December 29 in Sudan’s capital, Khartoum, concluded with the selection of another French firm, Artelia, to manage the study - leaving behild both Deltares. Artelia was among seven short listed firms during the initial selection process.

A hydrology simulation model and socioeconomic impacts assessment of the project are areas that the study will cover. It is expected that the study will take from six to 15 months to complete.

The multibillion dollar GERD project being constructed on Tikur Abay will be the biggest ever hydroelectric project on the continent. The locally funded the 6,000 megawatt dam, being built by Italy's largest construction firm, Salini Impregilo SpA, is almost half done.

The TNC is expected to hold their next meeting in Ethiopia.


The Second Radisson Blu Hotel in Ethiopia to Begin Operation

Radison Blu will open a second hotel in Ethiopia after negotiations with Sahle & Family Business Group, signing a management contract with Carlson Rezidor Group.

(01.01.2016 – 2Merkato)

Five international hotels have shown interest to manage Sahle’s five star hotel situated on a 2000 meter squares of plot in Bole, Peacock park. Rezidor will be in charge for the exclusive management of Radison Blu, including marketing and recruitment along with international standards.

The agreement was signed on December 19,

2015, between Andrew Malachon, vice Head of Business Development, Africa and Indian Ocean in the Rezidor Group and Kifle Sahle, owner of Sahle Group.

The new building, which has been under construction for the past two years, will be named ‘Radison Blu Plaza’. It has 16 storeys and 168 rooms and will begin operation in 18 months.

The hotel project costs 700 million Birr and will create jobs for 300 people when it starts operation.Sahle & Family Business Group fashioned the makeup of the building to fit for a hotel service. Sahle is active in the garment sector located at Lebu area in the East-western part of Addis Ababa.

Carlson Rezidor Hotel Group is one of the world’s largest hotel groups with more than 1,370 hotels in operation and under development in over 110 countries. It has more than 88,000 staff employees.

Quorvus Collection, Radisson Hotels, Radisson Blu, Radisson Red, Country Inns & Suites Park Inns and Park Plaza Hotels & Resorts are the Group’s hotel brands.

The first Radisson Blu is found in Kazanchis and recently received five star grading by Ministry of Culture and Tourism.


Ethiopia to Host Two Major International Conferences Early 2016

Ethiopia is said to host two major international conferences in the first two months of 2016, Ethiopian News Agency reported.

(01.04.2016 – 2Merkato)

Foreign Affairs State Minister Taye Atsekeselassie said the 26th African Union (AU) Leaders Summit and US-Africa Business Forum will be held from

January 30-31 and February 1-4, 2016 respectively.

Taye briefing the diplomatic community on current affairs said: “we expect all member states to participate in the summit. Apart, non-member states are expected to attend the summit. As a hosting nation, Ethiopia has already finalized its preparation to welcome the delegates.”

The state Minister pointed out over 100 companies mainly form agriculture, energy and

manufacturing sectors are expected to take part in the US-Africa Business Forum.

He also noted that more than 1,000 delegates have showed interest to come to Addis Ababa and discuss business matters.

Ethiopia will be the second African country to host the US-Africa Business Forum.

Taye indicated the Forum is expected to increase Africa’s export commodities in the American markets.


Vitol Wins Fuel Supply Tender to Ethiopia

Vitol Group, a multinational energy and commodities trading company, has won the tender floated by the Ethiopian Petroleum Supply Enterprise (EPSE) for the supply of fuel to Ethiopia in 2016, according to The Reporter.

(01.01.2016 – 2Merkato)

EPSE floated the tender for the supply of 90,000 to 100,000 metric tons of benzene and 800,000-950,000 metric tons of diesel.

CEO of EPSE Tadesse Hailemariam told The Reporter, of the ten

international companies participated in the tender; nine of them passed the technical evaluation. EPSE, after evaluating the financial offers, it picked Vitol as the least bidder.

Vitol agreed to supply 850,000 metric tons of diesel and 95,000 metric tons of benzene with a total value of USD 644 million.

EPSE and Vitol have signed the agreement on December 18, 2015 at the headquarters of the enterprise. Starting from the month of January, Vitol will supply the fuel from Bahrain. Vitol won the international tender

floated by EPSE for the second year in a row.

Ethiopia annually consumes two million metric tons of diesel, 288,000 metric tons of benzene and 710,000 metric tons of jet fuel .

The Vitol Group is a multinational corporation engaged in energy and commodity trading business. It was established in Rotterdam in 1996. The company has now 40 offices across the nations with its largest operations in Geneva, Houston, London and Singapore. Vitol’s turnover in 2014 was USD 270 billion.


Starwood to Open Four Points by Sheraton Hotel in Ethiopia

Starwood Hotels & Resorts Worldwide Inc. has inked a deal with Alemgenet Trade and Industry PLC to open Four Points by Sheraton in Addis Ababa. Four Points by Sheraton- a mid- scale brand- spearheads Starwood’s growth in the mid-market segment in Africa.

(31.12.2015 – 2Merkato)

The deal was sealed on Tuesday, December 22, 2015, between Alem Fitsum, Managing Director of Alemgenet Trade and Industry PLC and David Grossniklaus, Operational Manager of Starwood.

Four Points by Sheraton is being constructed on

2,200 square meter plot of land, off Africa Avenue adjacent to Flamingo Bar. It is expected to be the tallest hotel in Addis Ababa.

The hotel is being constructed at a total cost of USD 120 million with the design costing over USD one million. The design is said to integrate Ethiopian values and have a museum that displays Ethiopia’s rich cultural and tourism attractions as well.

Ernst and Young was responsible for incorporating internationally accepted standards, searching for

finance and conducting feasibility studies.

Alem told The Reporter “the hotel will have 506 bedrooms, which makes it the biggest hotel in Ethiopia in terms of number of bedrooms.” Four Points by Sheraton will also have ten restaurants, ten elevators including one that will serve exclusively for emergency exit. The 25th floor of the hotel will have a swimming pool.

The construction of the hotel will be completed after two and a half years. Bamakon Construction, a local construction company undertakes the construction and Starwood administers the hotel.


South Sudan armed opposition faction says forces may deploy in Juba by mid-January

Thousands of components of the would-be joint integrated forces from the armed opposition faction of the Sudan People’s Liberation Movement (SPLM-IO) may deploy in the national capital, Juba, by mid-January, says opposition’s spokesperson.

(04.01.2016 – Sudan Tribune)

In accordance with the peace agreement on the Resolution of Conflict in the Republic of South Sudan which President Salva Kiir and his former deputy, Machar, signed in August to end 21 months of violent conflict in the world’s youngest nation, joint police and military forces including national security and presidential guards were to be deployed within the 90 days of pre-transitional period.

The pre-transitional period, which started from the signing of the peace agreement, has

however elapsed since 26 November 2015 and the deployment of joint forces in Juba has not taken place due to obstacles and delays faced in the implementation of the peace deal.

The two main rival factions of government and SPLM-IO have wasted a lot of time due to misunderstandings and violations of security and political provisions in the agreement, delaying establishment of institutions to kick off the implementation.

An advance team of the opposition faction finally arrived in Juba on 18 December 2015 after government lifted its objection to their return in “huge” numbers, but no significant steps have been taken by the peace parties in order to pave way for deployment of forces in the capital and formation of a transitional government of national unity.

The top leadership of the SPLM-IO is yet to return to Juba, pending resolution on main

provisions of the peace agreement, as the implementation runs behind the schedule.

Spokesman of the SPLM-IO leadership told Sudan Tribune that although the designated First Vice President Riek Machar was eager to return to Juba, this would not happen until major provisions required for his return to the capital are first implemented by the advance team with the other stakeholders including the government.

“Our chairman and commander-in-chief will return to Juba any time soon. But this will not happen until major provisions in the peace agreement required for formation of a transitional government of national unity are implemented,” said James Gatdet Dak on Sunday.

He said among the provisions required first for implementation include amendment of the transitional constitution to incorporate the peace agreement, adding that


this will also be based on the 10 states in accordance with the peace deal.

A transitional national legislature will also be reconstituted, he said, with membership from the opposition groups as stipulated in the peace agreement, adding this new national parliament will have to endorse the new transitional constitution after its amendment by the parties and signed by the president. This new constitution will then become the basis for formation of a transitional government, he said.

The opposition faction, he reiterated, does not recognize the recent unilaterally decreed 28 states by president Kiir and endorsed by “his faction’s national legislature.”

He also said there is need to withdraw government forces from Juba to 25km as stipulated in the peace agreement and for the joint forces to be deployed inside the capital.

“SPLA (IO) components of the joint police and military forces may reach Juba by mid-January. However, there

is need for the government to first withdraw its excess forces from the capital as stipulated in the peace deal,” he said.

In October, government officials said they had withdrawn only 250 soldiers from Juba, but several thousands more are still in the capital.

Senior military sources from the government earlier admitted the existence of a split of opinion in the government over whether to fully implement the security arrangements or not, with some including the current chief of general staff, Paul Malong Awan, and other senior military commanders allegedly refusing to withdraw forces from Juba.

According to the peace agreement, the government should withdraw its forces and then each side in the conflict will deploy in Juba 1,500 well equipped police forces, making the total of 3,000 to provide the security in the capital.

Also the opposition will deploy another military force of over 1,400 troops in Juba, while the government will

deploy over 3,000 military forces.

Out of the total 8,000 armed police and military forces that should be deployed in Juba, the government would have a total of about 5,000 while the opposition would have about 3,000.

Dak said the opposition forces to be deployed in the capital were coming from Upper Nile and Bahr el Ghazal regions and will team up in Juba with other components from Equatoria region.

He said as soon as such constitutional amendments and deployments of the joint forces are completed, including other necessities, Machar would then travel to Juba to form a government of national

unity with President Kiir.

The opposition leader’s spokesman said they are committed to the speedy implementation of the peace agreement, saying they hoped the government will equally implement the peace deal as signed without further hindrance on political and security arrangements.

The Joint Monitoring and Evaluation Commission (JMEC), which has been established under the peace agreement with membership from representatives of the peace parties and regional and international bodies, and chaired by former president of Botswana, Festus Mogae, is

expected to convene a meeting soon to start to resolve on pending issues.

A government of national unity will run the country for the next 30 months from formation at the end of which elections will be conducted country-wide.

Machar, according to the agreement, will become a first vice-president, with a quota of 10 ministerial positions allocated to his faction, a number of states to govern, as well as command a separate army for at least 18 months before unification of the two rival armies into one national army.


Djibouti UPS port service quality

New system promises cheaper, more efficient and professional service

The Djibouti Ports and Free Zones Authority (DPFZA) has introduced a harmonized tariff for Djiboutian freight forwarders as of January 1.

(04.01.2016 – Capital)

The new tariff, divided into four sectors and six sub sectors of fixed priced, aims to further modernize the port, according to Capital’s sources in Djibouti. Previously, the payment was dependent on foreign freight forwarding companies.

Ethiopian freight forwarders appreciate the new system, introduced by the Djiboutian government.

“The price was variable for every company and was exaggerated and highly inflated,” a freight forwarder in Ethiopia told Capital. DPFZA hope the new tariffs will bring transparency in invoicing, as well as efficiency and

competitiveness.It is said that the new tariffs are more formalized and reduce costs for Ethiopian users.

On tariffs for the containerized cargo sector, Djiboutian forwarding companies’ service charge is fixed at USD 60 and USD 80 for 20 feet and 40 feet containers, respectively.

Transport charges for full cargo and return of empty containers are also divided into six categories, based on the distances travelled and loading capacity of containers. The maximum cost of transport is USD 130 and the minimum of USD 40 depending on distance and type of container used.

Labor costs have also been standardized with limits on tariffs under the new system. Stuffing and un-stuffing for a 20 feet container costs USD 35 and USD 75 for 40 feet containers. The system also outlines fixed tariffs for non-containerized cargo. Service charge for non-containerized cargo is USD 1.50 per freight ton for general cargo, solid

bulk and liquid bulk and USD 0.75 per freight ton for vehicle. For livestock, the maximum service charge allowed is USD 1 per head. The authority also announced that a disbursement commission of 5 percent will be applicable. To further modernizing and reform servicing processes, the authority has reduced the number of forwarding companies from over 300 to 77 well equipped and well skilled freight forwarders. This constitutes an important step toward the professionalization of private port operators. In the past decade DPFZA has introduced a series of reforms and measures to add value in the maritime sector and establish the Djiboutian corridor as competitive and effective. The country is also undertaking massive infrastructural expansion to accommodate the fast growing logistics service in the region. Djibouti remains a major corridor for Ethiopian import-export.

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