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The leasing board of the Addis Abeba Administration
has rejected the result of the lease tender the
Arada District Administration had issued for four
different sites in its jurisdiction on September 23,
2009.
The offers which the District Administration
obtained were 12,928 Br per square metre for a
565sqm plot around Gojam Berenda, 4,999 Br per
square metre for an 800sqm plot near Ethiopian
Statistical Agency, 4,003.75 Br per square metre for
a 2,200sqm plot near Police Club on Belay Zeleke
Street and 2,906 Br per square metre for an 800sqm
plot near Sandford School.
An expert in the city administration said that two
years ago the lease rate in the city was around
4,000 Br for a square metre, with plots around
Merkato costing up to 10,000 Br per square metre on
negotiated leases. He said the demand for land in
the city has risen sharply since Kuma’s
administration came to power. The administration had
stopped leasing large plots of land and focused on
its business process reengineering (BPR).
In 2007/08 the city had targeted to lease 2,443ht of
land for industrial, social and business services,
as well as for condominium and residential houses.
What it achieved was a mere 600ht, and that was for
micro and small enterprises (MSEs), residential
houses and mixed services.
Its plan for the 2008/09 fiscal year is to lease
1,000ht; however, six months into the year, only
lease tenders have, so far, been issued, including
the one by Arada District which it rejected.
“The city had planned to get one billion Birr from
land leases, but that money is not coming, because
no land is being leased,” said a source in the
Revenue Bureau. |
