The De-risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa Project (P176517) has reached a significant milestone when FEEL Construction Company was awarded a construction contract worth ETB 80,729,391.20. The project, which is funded by the International Development Association (IDA) under credit IDA-E0380, intends to improve value chains, market inclusion, and pastoral resilience throughout the Horn of Africa.
A significant infrastructure investment intended to increase the economic potential of Ethiopia's pastoral communities is represented by the awarded works, Lot 4: Construction of Livestock Collection Centres and Forage Market Shades in Filtu Woreda Town, Somali Region. On October 6, 2025, the contract was awarded, and on October 10, 2025, it was formally published.
Overview of the Project
The De-risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa Project (DRIVE) supports initiatives aimed at modernising pastoral systems, lowering market and climate risks, and expanding pastoralists' access to markets, insurance, and financing. The programme, which operates in several Horn of Africa nations, including Ethiopia, aims to improve resilience, food security, and livelihoods in areas that depend on livestock production.The project, which is carried out by Ethiopia's Ministry of Agriculture (MoA), is essential to regional development, especially in pastoral and agro-pastoral regions like the Somali Region, where livestock is essential to the local economy.
The contract's scope
In Filtu Woreda, one of the major livestock trade hubs in the Somali Region, the awarded contract covers civil works for the construction of forage market shades and livestock collection centres.The elements of the project consist of
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building of state-of-the-art livestock collection facilities with aggregation and trading capabilities
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creation of forage market shades to facilitate the distribution and trade of feed
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installation of auxiliary structures and utilities, such as sanitary facilities and water outlets and
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The goal of site development is to improve the centres' usability and accessibility
Stronger market connections between pastoralists, traders, and processing companies, better feed availability, and organised livestock trade will all be made possible by the infrastructure.
The contract's 180-day (6-month) duration indicates a fast-track implementation timeline to guarantee timely benefits for nearby communities.
Selected Contractor
FEEL Construction Company, a reputable Ethiopian construction company with its headquarters in Addis Ababa, was given the contract. With an assessed and signed contract value of ETB 80,729,391.20, FEEL Construction - known for its experience in infrastructure and civil works - was the most responsive and lowest evaluated bidder.Procedure for Competitive Bidding
To guarantee openness and competitiveness, the procurement used the Request for Bids (RFB) method in accordance with World Bank procurement guidelines.A number of businesses took part, but FEEL Construction Company outperformed the others in terms of price competitiveness and technical responsiveness. The following were competing bidders and their assessed prices:
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ETB 82,079,435.40 Khadar Ducaysane General Construction Company
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Construction by Mohamed Abdi Yusuf: ETB 86,544,946.61
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ETB 94,879,250.93 for Haji Bule Construction
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ETB 96,865,190.43 Kurale General Construction Co.
Due to non-compliance with bid requirements, one bidder, Guyo Konso General Construction Co., was rejected as non-responsive.
Funding and Execution
This contract is funded by the World Bank's IDA-E0380 credit, which reflects the organisation's ongoing support for value chain development, climate resilience, and regional economic integration in the Horn of Africa.The project is in line with Ethiopia's larger national priorities in the areas of inclusive market systems, pastoral livelihood development, and livestock sector transformation-all of which are essential to attaining sustainable growth in dryland areas.
Impact on Strategy
Building forage market shades and livestock collection facilities will-
improve pastoral product pricing stability and market efficiency
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Encourage the traceability and aggregation of livestock for both domestic and export processing
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enhance feed quality and accessibility, which is a major issue in areas vulnerable to drought
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bolster the ability of livelihoods to withstand market and climate shocks and
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Participate in the Horn of Africa's regional trade integration
It is anticipated that these facilities will serve as economic pillars for pastoral communities, facilitating more consistent revenue streams and generating jobs throughout the value chain.
Final Thoughts
A significant step towards updating pastoral infrastructure in Ethiopia's Somali Region has been taken with the award of this ETB 80.7 million contract to FEEL Construction Company under the De-risking, Inclusion, and Value Enhancement of Pastoral Economies Project. The World Bank and the Ethiopian government are building a more competitive, inclusive, and resilient pastoral economy by investing in infrastructure that is ready for the market. This will benefit thousands of households and improve the food and economic security of the Horn of Africa.
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