In hopes of answering complaints by private residents who fear being short-changed by recent Addis Abeba development and infrastructure projects, a directive that implements a 2005 proclamation improving compensation for homeowners displaced by city development is being prepared by the Ministry of Works and Urban Development (MoWUD) legal department.
 

According to an official from the department, the department is working “day and night” to prepare the directive that officially implements proclamation 455/2005 for Council of Ministers’ approval. “We will do our best to conclude the directive by the second week of November,” he said.
 

The compensation directive comes as displaced people are increasingly complaining that they are getting compensated using an outdated 1995 proclamation instead of the newer and more generous 2005 version.
 

All ten city district lease offices base their compensation rate using computer software that calculates the dimensions of the real estate unit and accounts for the material used in construction. The rate is then measured using the 1995 market prices.

But if the 2005 market rate gets approved, it will make a huge difference in compensation. The 2005 construction costs adopted by the newer  proclamation are calculated to be 100pc more than the costs estimated in the 1995 proclamation. Expecting an upcoming Council decision, the Legal Department at the Addis Abeba City Administration is already preparing paperwork that reflects the 2005 proclamation.
 

The Yeka and Kirkos districts are centre stage in supplying plots of land for infrastructure and other development. According to an Addis Abeba Road Authority official, around 600 people have been displaced for six projects including a vast road expansion project that will displace residents between the Megenagna roundabout and Arat Kilo. These residents have already appealed to their respective districts regarding an increase in their compensation payments.
 

A home owner scheduled for displacement told Fortune that he was offered 100,000 Br as official compensation, while people who wanted to buy the same house a year ago offered him 500,000 Br. 

Though not falling under the proclamation’s jurisdiction, higher compensation pleas are also being heard from home owners slotted to be displaced for the Addis Sheraton expansion project. Officials from the Kirkos and the Arada districts told Fortune that 900 private owners are needing to be moved from the 37.7ht being used in the project. These people have already started to express their fears to the district project offices on being offered low compensation.