Addis Ababa (September 21, 2009) – Ethiopian Telecommunication Corporation (ETC) and the Chinese Telecom Corporation, ZTE, recently signed a 10 million dollar agreement to construct part of the technological infrastructure of the long awaited Information Technology (IT) Park of the federal government.

The Ministry of Capacity Building first planned to build the IT-Park project, which is to be located behind Bole International Airport, some six years ago in collaboration with donors. However, the ministry had to distribute different phases of the project to various stockholders owing to donors’ failure to finance this huge project.

ETC was chosen to manage part of the project, which led the state-owned telecom provider to negotiate with ZTE so the latter can include the project in the 1.5 billion vendor financing program signed in 2006.

“This principal contract needs to be in place and signed at this moment in order to make sure that the IT-Park project are taken in to consideration within the vendor financing program,” reads the agreement signed by the two parties.

Detailed site surveys should be made to determine the exact price of the IP-Park infrastructure project. The two sides have agreed that a sum of 10 million dollar should be set aside from the remaining balance of the vendor financing projects until the survey is completed.
Currently, the partners are negotiating to verify which projects can be cancelled out of the remaining vendor financing projects that will cause minimum harm to the client and contractor. ETC and ZTE are expected to sign this agreement in October to commence the IT project. According to their agreement, ZTE is expected to build the Internet Protocol (IP) framework and will supply equipment such as routers and switchers. Building National Operating Center (NOC) which will be used to manage, maintain and operate the IT Park is also a job for ZTE, which is further expected to supply an internet protocol phone service with an integrated access device.

When the IT Park is completed it will give an opportunity for businesses willing to engage in IT manufacturing and the IT service industry to work in the same compound.

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