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In 2004, the then City Government promised to ease the housing plight with the construction of condominium houses.  Hope for a new home burned bright in the lower income group of Addis Abeba. Four years later, their dreams have not been realised for some of those targeted to get these condos, as Wudineh Zenebe, special to Fortune reports. 

Out Goes the Condos’ Flame

 
 

Etabez Akalu had hoped that she would move to a better house this June. The50 year-old was desperately looking forward to the raffle of 13,000 condominium houses, as had been promised by the Addis Abeba Housing Development Project Office. The promise has not yet materialized, as the office has not yet raffled the houses.

 

Etabez, a mother of four, is obviously very disappointed. She had expected better luck in this round of raffles, as she was unlucky in the previous two raffles. What worries her more though is a recent announcement by the new city administration’s cabinet.

 

In its first assembly on July 3, the city cabinet made the decision that some condominium houses be transferred to potential buyers after evaluation by the cabinet. This would be in addition to the existing raffle system.
 

“The raffle has not been done, and they have decided that houses be transferred at the discretion of the cabinet,” says Etabez. “Although at first I was optimistic about the new administration, after the discussion we have had with city officials, I no longer am.”
 

A resident of Arada District, in a place commonly called Fit Ber, Etabez is one of   450,000 residents of the city who, three years ago, had registered for the possible acquisition of condominium houses. She represents a part of the city’s populace with great aspirations of owning one of these. It may be a long wait before fruition of her dreams.

 

When Ali Abdo was mayor from 1998 to 2002, the third after the ascendance to power of the EPRDF; there were 350,000 houses in Addis Abeba, according to a strategic document prepared by the city administration.  Only 112,000 of these were used for residential purposes by the then 2.3 million residents of the city. The rest were streamlined for commercial business. From the total number of residential structures in the city, close to 65pc are over 23 years old, the document reveals.

 

In 2004 statistics compiled after a housing sector development programme study conducted by the Central Statistical Agency (CSA) reveal that the housing shortfall stood at 337,700. A similar study done by the Ministry of Works and Urban Development (MoWUD) last year places the number at 400,000.

 

Mayor Ali’s administration had estimated that the construction of 22,200 houses per year for 10 consecutive years would go some way towards easing the city’s housing shortage. It had envisaged facilitating the construction of 5,000 to 7,000 houses through the provision of plots to housing cooperatives and real estate developers.
 

This strategy has proved futile. It was the provisional administration lead by Mayor Arkebe Oqubay that embarked on an aggressive launch of condos to Addis Abeba. 
 

An estimated 1.5 billion Br was set aside by Arkebe in 2005 towards implementing an initial plan to construct 50,000 condominium houses every year for three consecutive years. The ultimate goal of this plan was to successfully end the overwhelming demand for housing by the lower income group of city dwellers.

 

Subsequently, the 2005/06 budget year saw the construction of 9,958 houses at a cost of 306.2 million Br. This was made possible by the support of GTZ, a German cooperation agency. That same year, the city housing project office further launched the construction of 30,719 houses. However, 21,125 of these have yet to be completed. Although Mayor Berhane Deressa’s administration had planned to complete 19,361 condominium houses in the first six months of this budget year, only 6,766 were successfully finished. Another phase of construction hoped to erect another 33,000 houses for residents of the city. However, not even a single one of them have been constructed to date.
 

Since the start of the construction of condominiums in Addis, the city has transferred houses to residents three times; twice by raffles, and once after decisions on selection made by the cabinet, whose priority list includes members of the Federal Police, employees of Dashen Bank, and Commercial Bank of Ethiopia staff.

 

A proclamation issued in 2005 during Mayor Arkebe’s administration gave the City Cabinet power to decide on the allocation of condos that the city had financed. However, on May 3, 2007, the cabinet decided to forgo its discretionary role in the distribution of condominiums, and instead chose to distribute them to buyers through a raffle system.

 

Much to Etabez’s dismay, the administration has once again resorted to cabinet decisions, in addition to raffles, for the transfer of condos to buyers.

 

City Officials say the latest move was necessary to give preferential treatment to those people who may have become homeless due to road construction and other infrastructural developments.

Etabez, who lives in a slum village without basic infrastructure, fears that the new strategy may benefit those who already own houses, as it is not entirely objective. She is one of those who  are to be evicted due to Sheraton Addis’ expansion.

 

The Addis Abeba City Land and Development Authority wants to clear 37.7hct of land for the Sheraton Addis expansion project. The luxury collection hotel has not yet completed its first phase of construction work.

 

Although the administration had allocated 70 million Br last year for compensation of those dislocated, evictions have not yet begun as there are 2,250 residents in state houses who need alternative accommodation.

 

“Although it was at first decided to transfer them to condo houses, the constructions have not yet been completed,” said Mesay Tefera, project officer at the Kirkos District.

 

The hotel chain has paid the city administration 80 million Br. Its owner, Sheik Mohammed Hussein Ali Al-Amoudi said on January 23, 2008 that the failure of the administration to clear the area targeted for development had delayed the hotel’s expansion project.

 

Officials have postponed the date for the third raffling off of condos that was scheduled for last month because of delays in completing construction of the condominium houses.

 

“The raffle for the 13,000 houses will be made in September 2008,” Tsedale Mamo, general manager of the project office, told Fortune.

 

She also attributed the price hike of construction materials as a contributing factor in the delay.

 

Kuma’s administration has made plans to finalize the construction of 73,000 houses, and to construct a further 55,000 during the 2008/09 budget year. The project office requested 5.5 billion Br for the construction but only 2.5 billion Br was approved for the city’s basic plan. This amount is expected to finance the completion of 33,000 houses.

 

Although the latest programme is not included on the list of priorities by the city administration, it will be considered based on the  quarterly and bi-annual performance of the project office, Tsedale told Fortune.

For Etabez, the flame of excitement that initially burned with the introduction of condominiums has now been extinguished. She has no choice but to wait for what might happen in the raffle taking place in two months time, although she is very demoralized. This rainy season will have to be spent in her crudely built hut.

WUDINEH ZENEBE
SPECIAL TO FORTUNE

 
 
 
 
   
 
 
 

 

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