ETHIOPIA-The administration of Prime Minister Hailemariam Desalegn has decided to create a state-owned agency to operate Ethiopia's first expressway, sources disclosed to Fortune.

The 82Km Addis Abeba-Adama Toll Road is under construction by a Chinese contractor, and due to be completed soon after consuming a total investment of 16 billion Br. Former Prime Minister Meles Zenawi launched its construction in November 2010, heralding the government's Growth & Transformation Plan (GTP).

The Export-Import (ExIm) Bank of China has advanced a 20-year, 350 million dollars, loan to finance the project and the remaining 43pc of the cost will be covered by the Ethiopian government. Beijing Expressway, a subsidiary of Beijing Enterprises Holdings, is the consultant on the project.

The road is scheduled to be inaugurated in May 2014, by Prime Minister Hailemariam, a senior government official in the Ministry of Transport confirmed to Fortune.

The road is the first toll way road for Ethiopia, requiring motorists pay a minimum of 50 Br upon entry of one of the 48 gates in seven stations, sources disclosed to Fortune. Nonetheless, a state-owned enterprise, which will manage the collection of these fees,would have to be established prior to April 2014, and the Council of Ministers will have to vote on the toll fee the public will be charged.

A bill for the establishment of the Enterprise, drafted by experts at the Ethiopian Roads Authority (ERA), was sent to Worqneh Gebeyehu, minister of Transport (MoT), in November 2013, according to an official at ERA, who declined to be identified due to the confidentiality of the matter. The Minister is preparing to table the bill to the Council of Ministers (CoM) for approval this month, Fortune has confirmed from senior officials at the Ministry.

The Enterprise, which will likely be named the Ethiopian Payable Roads Enterprise (EPRE), will be accountable to the Ministry, with an oversight of its operation by a board of directors. A general manager will head it, with three directors responsible for toll management, toll operation and engineering as well as human resources. The establishment of the Enterprise is estimated to cost 202 million Br, Fortune learnt.

The Administration is on headhunt to hire the general manager; and a staff member in the engineering department of ERA is the most likely candidate for the job, sources disclosed to Fortune.