City warns inactive land investors

Ethiopia: City warns inactive land investors

By Binyam Tamene

Addis Ababa City Administration has warned investors that have leased land for long periods without starting construction that they could have it taken off them.

Construction in the city is increasing and the administration said it is engaged in encouraging investors, including those who have delayed starting construction.

"But not to start construction at all, after acquiring it, is illegal and these investors should start soon," said Aweke Hailemariam, Deputy City Manager of Addis Ababa City Administration (AACA).

The new regulation, Addis Ababa City Government Urban Land Lease Holding Regulation no 29/2010, on this matter established a timetable for the investors to start construction:

"The Investors to whom land is permitted on lease basis for the construction other than private residence house or condominium shall commence within the range of 9 to 24 months, starting from the time of conclusion of the lease contact."

"Those investors that can't honor this will have their legal document discarded by the city administration and the land will be returned back to the government," the Deputy City Manager said last Wednesday.

The administration has now started to retake lands of this kind, he said.

Over 74 investors have recently been forced to give back plots that covered a total of 52-53,000 square metres to the government.
"We will continue to do so in the future as well," said Aweke.

The administration said these plots will be given to other investors who have the capacity to engage in developing the land, without mentioning the location of the lands and their former leasers.

The administration said this is currently carried out by the taskforce accountable to the office of the city mayor and managers of Addis Ababa City Administration.

Speaking of giving out title deeds, the deputy manager said the pilot project conducted in different areas of the city was successful.
The implementation was conducted in Kebeles of Arada Sub-City and Kebele 14 of Bole Sub-City.

AACA limited the areas to be granted to 500 square metres for residential properties and 3,000 for commercial development.

If land in excess of these limits was acquired, the administration said there is a possibility for the owners to buy it back through lease contract using the minimum price quoted.

The authority expects the number of requests for title deeds to reach over 100,000 in all 98 kebeles of the capital.

The authority, however, will only consider plots that have been occupied without any title deeds before May 1996, for the time being.

Addis Ababa City Administration has warned investors that have leased land for long periods without starting construction that they could have it taken off them.

Construction in the city is increasing and the administration said it is engaged in encouraging investors, including those who have delayed starting construction.

"But not to start construction at all, after acquiring it, is illegal and these investors should start soon," said Aweke Hailemariam, Deputy City Manager of Addis Ababa City Administration (AACA).

The new regulation, Addis Ababa City Government Urban Land Lease Holding Regulation no 29/2010, on this matter established a timetable for the investors to start construction:

"The Investors to whom land is permitted on lease basis for the construction other than private residence house or condominium shall commence within the range of 9 to 24 months, starting from the time of conclusion of the lease contact."

"Those investors that can't honor this will have their legal document discarded by the city administration and the land will be returned back to the government," the Deputy City Manager said last Wednesday.

The administration has now started to retake lands of this kind, he said.

Over 74 investors have recently been forced to give back plots that covered a total of 52-53,000 square metres to the government.

"We will continue to do so in the future as well," said Aweke.

The administration said these plots will be given to other investors who have the capacity to engage in developing the land, without mentioning the location of the lands and their former leasers.

The administration said this is currently carried out by the taskforce accountable to the office of the city mayor and managers of Addis Ababa City Administration.

Speaking of giving out title deeds, the deputy manager said the pilot project conducted in different areas of the city was successful.

The implementation was conducted in Kebeles of Arada Sub-City and Kebele 14 of Bole Sub-City.

Source: CapitalEthiopia