Property 2000, South African Developer, seemingly won a $4.2 billion project to build 500,000 houses in the Ethiopian capital Addis Ababa
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Addis Ababa City Administration on Wednesday said it has reached an agreement with Property 2000, a South African Developer, to build 500,000 homes in Ethiopia’s capital.
The contract is already signed, it was said. The project is said to be worth $4.2 billion dollars.
It is claimed that the houses are intended for low income people in the city for whom an arrangement will be made to own them through long term mortgage financing, and with low interest. When completed, the houses will be available with fair prices and that they will have a significant impact in solving the housing crisis in the city, it is claimed. The United Arab Emirates has agreed to support the project, according to information from the city administration.
The project is to be completed in five years time. According to the city, Property 2000 will deliver 100,000 homes in the first year.
Addis Ababa City Mayor, Adanech Abiebie, said the city is working to build over 1 million houses in the capital with the aim to tackle housing shortages in the city.
“The agreement we made today with the South African Property 2000 is part of our plan,” she said, as disclosed by the City Administration.
She also said that the city has embarked on public and private partnership, and work is being done with associations as well with the aim to overcome housing challenges in the city.
Making lands available for needed construction and infrastructure development are to be taken care of by the city administration.
Napo Eddie Modise, chairperson of Property 2000, reportedly said that his company is determined to complete construction of the houses within a short time and transfer them.
He also said that about 90 percent of the workforce will be from Ethiopia.
The South African Developer has been in business for about twenty-seven years. Not much is known how Property 2000 managed to win it.
Skepticism towards Addis Ababa City Administration
There had been complaints against city administration for failure to complete construction of houses and transfer them to users in a reasonable time. So the five years project seems to have raised doubts.
Furthermore, Addis Ababa City, during Takele Uma’s time, was indicted for illegally transferring over 23,000 condo units for people who were not in the waiting list. It was seen within the context of Takele Uma’s ethnic Oromo nationalist party ( the current mayor belongs to the same party which is said to be dominant in the ruling Prosperity Party) alleged effort to change the demography of Addis Ababa in favor ethnic Oromo.
The party had been claiming exclusive ownership over the city.
When the news of 500,000 housing projects broke on Wednesday, some Ethiopians on social media were questioning whether Adanech Abiebie’s party had the plan to continue with plans to change the demography of ethnic composition in the city.
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The post South African developer to embark on $4.2 billion birr residential home project in Addis Ababa appeared first on Borkena Ethiopian News.