Addis Ababa rules to build 100,000 homes in a year

An agreement was signed to build 100 thousand houses in Addis Ababa

The houses will be built by 68 real estate developers and the government has agreed to provide land for free.

The construction of housing is going to be carried out by the real estate developers selected by the Addis Ababa city administration through a public-private partnership project, at a cost of more than half a trillion birr.

According to reporter news paper, the selected 68 real estate developers to participate in this program.

The real states have signed a contract with the city administration to carry out the construction based on the 70/30 partnership.

Among these developers are Midrock Investment Group, Ovid Group, Flintstone Homes, Eniy Construction, Gift Real Estate and others.

The city administration has the responsibility to provide the land needed for the construction of the houses free of lease and to complete the infrastructure.

The real estate companies or the developers will build the houses by covering the cost on the land provided to them based on the building capacity they put in.

After the developers complete the construction of the houses, they have agreed to hand over 30 percent to the city administration.

According to this, the city administration plans to introduce 100,000 houses in the 2016 fiscal year.

Out of this, Avid Group contractor 60,000 houses, Gift Real Estate 12,000 houses, Midrock Investment Group has signed a contract to build 10,000 houses, the city administration said.

Three separate areas have been allocated for the construction of the houses and the city administration has prepared 350 hectares of land in the center of Addis Ababa for the house construction project which will be carried out by the government and private partnership.

The financing of the project is fully financed by the developer and the responsibility of the city administration is to give priority to the development companies when there is a shortage of resources, electricity and water, as well as resources needed for construction.

By ethionegari@gmail.com

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