The civil suit, filed by TCDE at the Federal High Court Eighth Civil Bench on February 18, 2008, ended in favour of the plaintiff, on February 12, 2010. The case was against Saba alone, but INTRACO was brought into the case as an intervener.
Saba won TCDE's tender for the supply of a drilling rig used for geotechnical studies with its accessories and spare parts on December 30, 2004. The agreement was for Saba to supply a machine with a drilling capacity 300 metres and a 195kW to 300kW engine. But the machine that was supplied from INTRACO could drill only 127.4 metres because of the limited capacity of the engine and the water pump.
Saba's claims that the plaintiff had accepted the machines and issued a certificate of approval and that the said failure of the machine was completely attributable to the drilling experts of the plaintiff were all rejected by the court, including its argument that the guarantee period had expired.
The court accepted the plaintiff's argument since they have tested and proved that the machine did not meet the specifications. The court, therefore, annulled the contract entered between the two sides and made Saba and INTRACON liable for the sum of 4.4 million Br plus an interest of nine per cent until payment is fully made.
TCDE is a state owned consulting firm that deals mainly with the design and construction supervision of roads, bridges and airports. Before its establishment as an independent consulting firm in 1987, TCDE was a division under the Ethiopian Roads Authority (ERA), for about 30 years, serving the same purposes.
Saba Engineering Plc is a private consulting and contracting firm established in 1993. The company is engaged in the provision of test boring, water well drilling, laboratory testing, road and bridge design, surveying, construction supervision, and other services.
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