ADDIS ABABA - China continues to make inroads into Africa, as it bagged yet another major order for building infrastructure in the East African state of Ethiopia.

China’s state infrastructure major, China Road and Bridge Corporation (CRBC) has signed an agreement to construct a new expressway connecting Ethiopia’s capital to another city in the centre of the country, Nazreth.

CRBC and the Ethiopian Roads Authority signed a soft loan agreement of 8 billion birr ($701 million) for constructing the 80-kilometre highway.

In fact, the soft loan was the key to the Chinese state company getting the contract without any bidding. This has been one of the successful strategies used by state Chinese companies to bag orders, causing China-Africa trade to grow to $106 billion in 2008.

Earlier, the Ethiopian minister of works and urban development, Kassu Ilala, announced that the builder of the Addis-Nazareth expressway would be awarded without a bid to a Chinese company. The minister made the remarks in a joint discussion with a high level delegation from China led by the Chinese minister of construction Wang Guangtao after the Chinese pledge to finance the project with a soft loan.

Kassu said the contract for the construction of the six-lane road - the first of its kind and tolled road in Ethiopia - would automatically be granted to China without having to compete for the contract.

This project is a special offer to Chinese companies of choice to come with the necessary credit facilities and get the project without any international competition, Minister Kassu had said.

CRBC in May approached ERA with its proposal that would cost the road authority about eight billion birr to complete the construction of what would be 80 kilometers expressway.

The Ethiopian minister’s remarks came after a discussion with a high level delegation from China led by Chinese minister of construction Wang Guangtao after the Chinese pledge to finance the project with a soft loan.

After CRBC negotiated with ERA officials on the terms of the loan, the two parties signed the deal on June 27.

Currently, CRBC is undertaking three road construction projects in Addis Ababa, which totally cost over 40 million dollars.

Besides, another Chinese company is also constructing Ethiopia’s first private industrial zone on the highway connecting Addis Ababa to Nazreth.