While compensation for evacuated residents will be more than that offered by the regional administration's rate, according to the managing director, it is significant to note that the area has an essential element for putting up a beer factory, good water resource potential.

Habesha Breweries S.C. secured 50,000sqm of land in the town of Debre Berhan, 130km northwest of Addis Abeba in the Amhara Regional State, on December 29, 2009. The lease rate is yet to be negotiated.

Prior to getting the land, the Amhara Water Resource Development Bureau had also given Habesha the green light to explore for ground water in the area, according to Eskinder Desta, main promoter of the share company and managing director of Habesha Capital Services.

"The area has good water resource potential which is an essential element to putting up a beer factory," Eskinder said.

Habesha's next step will be to invite tenders from drilling companies for the exploration, according to Eskinder.

The compensation to residents who will be evacuated from the area, Eskinder said, will be more significant than the lease rate the regional administration is going to charge the company which according to him is very small. Although he did not say by how much.

Habesha will be an addition to the five already existing breweries, BGI Ethiopia, Dashen, Harar, Meta Abo and Bedele two years from now, according to the promoters' plan.

Eskinder and a group of people who had been in the brewery business are trying to raise 150 million Br paid up capital for the share company.

Yilma Tiruneh, former manager of Ambo Mineral Water Factory; Tesfaye Bedada, former head of Bedele, Harar and Meta Abo beer factories at different times; and Yilma Wolde-Senbet, former master brewer and department manager of Meta and Melotti beers (found in Eritrea) are among the 13 promoters.

Two months since launching the sale of shares, Habesha Breweries team has raised close to 20 million Br, which Eskinder considers to be a good performance.