Tekleberhan Ambaye Construction P.L.C (TACON)
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About Tekleberhan Ambaye Construction (TACON) P.L.C.
In business since 1993, Tekleberhan Ambaye Construction (TACON) P.L.C. is one of the leading class 1 Ethiopian construction companies that pioneered the local industry for International Standardization Organization (ISO) certification. TACON’s remarkable achievement in the civil engineering and building construction areas has also resulted in gaining a nationwide recognition including its privilege of picking-up the “Best Contractor of 2012” award a few months ago.
The company currently implements a dozen of civil engineering construction projects whose contract value exceeds 2 Billion Ethiopian Birr in sum. While a magnificent share of the entire on-going projects’ cost goes to Phase I project of the Yayu Fertilizer Factory, geographically TACON’s operations span the whole country plus the neighboring Somaliland Republic.
After entrenching the company’s position in the building construction sector, the management of TACON has realized that it is time for enhancing operational capabilities so as to meet booth current commitments and the growing demands for infrastructure development in the near future thereby stay competent in the turbulent construction market. To this end, the management of TACON has recently embarked on the formulation of a five-year strategic plan.
Critical Success Factors
Unlike the conventional local construction sector that has been filled with crudely designed and implemented works, TACON makes quality its number one agenda. Management takes a series of steps required to develop a comprehensive infrastructure designed to make TACON not just a company with quality policy and International Standardization Organization (ISO) certification, but a “quality company”.
Equally important is the emphasis management has given to the health and safety management aspects of the company’s community. All TACON’s employees, sub‐contractors, clients, suppliers and consultants expect to be safe on the job.
TACON’s overall strategy leverages limited resources by outsourcing areas that it might not get competitive advantage from. With this operations strategy, the company can effectively undertake and complete projects with minimum total costs, resulting in significant quality improvement; hence, increased client satisfaction.
Technological Consideration
As technology plays an important role in the global construction industry, TACON offers its clients with the most differentiated quality solution deploying hi-tech methodologies and processes. As a result, it is important for the company to provide access to technology that not only provides value‐added results for the client, but also reduces operating costs for itself.
TACON also exerts efforts to utilize time saving construction methodologies and productive machineries, which are widely deployed in the developed nations. These machineries and methodologies allow for rapid construction without compromising quality standards. The procedures streamline established principle in construction efficiency and save money by reducing both construction time and material wastage.
Previous Engagement
The operational history of TACON has been remarked by heydays of picking up major business accounts and the construction of numerous projects executed throughout the country. The company is credited for the implementation of hundreds of millions ETB worth building projects in a nutshell.
To mention a few of its completed projects, in Oromia Regional State TACON built a series phases of Jimma University including Jimma Teaching Institute and Jimma Agricultural College, a District Hospital at Limu Genet, the Zonal Finance Office of Bale, the spectacular Presidential Palace at Adama, the Meda Welabu Stadium of Robe and a Zonal Administration Office at Asebeteferi.
The Air Force Officers’ Residential Houses, Phase I and II of the Mekele Market Complex and additional blocks of the Mekele University are among the projects that TACON realized in Tigray Region. The company also undertook a complex Agricultural College at Woreta, Dormitories and an Ophthalmic Care Center of Gondar Medical College, two phases of the Debre Markos University and etc. in Amhara Region.
In Addis Ababa, among its delivered projects are the Head Quarters of Africa Insurance S. C., the Federal Drug Quality Control Laboratory, Commercial and Office Facilities of the Miskaye Hezunan Medhanealem Church, Forestry Gene Bank, African Union Fence and Compound, Tsetse Fly Eradication and Edna Mall Complex projects.
While the Gilgel Beles Prison Administration Office, different Low Cost Houses, Education and Culture Bureau and Metekel Zone Education and Culture Office have formed the company’s projects in Benishangul Gumuz Region, TACON’s Somali Region projects also included the Gode Rural Technology Center, Kebribeyah Customs Office and four Rural Health Centers in Degahabour Zone. The Gambella based Technical and Vocational Education and Training (TVET) College had also been carried out by TACON.
Income Statement |
2003 |
2004 |
2005 |
2006 |
2007 |
---|---|---|---|---|---|
Construction Income |
83,312 |
53,887 |
63,056 |
58,661 |
71,623 |
Profit Before Tax |
3,527 |
2,600 |
1,587 |
2,394 |
(1,957) |
Net Profit Margin % |
2.8% |
2.7% |
1.8% |
2.5% |
-3.6% |
Balance Sheet |
|
|
|
|
|
Current Assets |
39,430 |
44,139 |
65,380 |
82,512 |
95,139 |
Fixed Assets |
30,449 |
28,329 |
22,910 |
36,481 |
26,353 |
Total Assets |
69,879 |
72,468 |
88,291 |
118,993 |
121,493 |
Current Liabilities |
55,615 |
51,619 |
63,381 |
72,917 |
68,988 |
Long-term Liabilities |
3,331 |
9,205 |
13,176 |
36,416 |
45,049 |
Total Liabilities |
58,946 |
60,824 |
76,557 |
109,333 |
114,037 |
Total Capital |
10,933 |
11,644 |
11,734 |
9,660 |
7,456 |
Capital and Liabilities |
69,879 |
72,468 |
287,579 |
409,112 |
983,855 |
Income Statement |
2008 |
2009 |
2010 |
2011 |
2012 (e) |
---|---|---|---|---|---|
Construction Income |
93,658 |
91,497 |
135,381 |
186,259 |
917,121 |
Gross Margin |
83,089 |
79,119 |
19,466 |
30,289 |
412,704 |
Gross Margin % |
11.3% |
13.5 |
14.4% |
16.3% |
45.0% |
Net Profit Margin % |
0.5% |
1.9% |
1.9% |
2.1% |
30.9% |
Balance Sheet |
|
|
|
|
|
Current Assets |
188,578 |
175,255 |
268,126 |
372,965 |
884,414 |
Fixed Assets |
26,705 |
23,249 |
19,453 |
36,147 |
99,441 |
Total Assets |
215,283 |
198,504 |
287,579 |
409,112 |
983,855 |
Current Liabilities |
104,224 |
121,270 |
157,308 |
269,767 |
593,812 |
Long-term Liabilities |
103,125 |
68,327 |
119,401 |
124,566 |
261,589 |
Total Liabilities |
207,349 |
189,597 |
276,709 |
394,333 |
855,400 |
Total Capital |
7,934 |
8,907 |
10,870 |
14,779 |
128,455 |
Capital and Liabilities |
215,283 |
198,504 |
287,579 |
409,112 |
983,855 |
(e) Figures of 2012 are estimates
Currently, the company has been engaged in the construction of more than 13 projects whose cumulative value exceeds ETB 2 billion. Most of them are results of the multiple business contacts that TACON has established and its capabilities to meet the stringent technical qualification requirements set out by clients.
The recently commenced first phase of Yayu Fertile Factory, the terminal and allied facilities of Berbera International Airport in Somaliland Republic, the Ambo University, the second phase of Tigray Stadium, subsequent phases of Debre Markos University with its allied infrastructure works.
The Ecclesiastical Museum at Axum, Office of the Amhara Mass Media Agency, the Petroleum Data Bank of Ministry of Energy, the Commercial Bank of Ethiopia’s (CBE) Megenagna Branch Office and Legetafo Building Facilities are the ongoing building projects of the company
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