Infrastructure Gaps Blamed for Delays in 40/60 Condominium Delivery
Addis Abeba’s housing projects under the 40/60 scheme are lagging behind their contracted schedules. This is evidenced by the Addis Abeba Saving House Development Enterprise’s delay in delivery of the initial phase, which was scheduled for June 2015.
In this scheme, local residents are required to save 40pc or more for upfront payment, with those who have saved more presented with a better chance of getting a house. Ethiopians from the diaspora have to pay the entire purchase price upfront.
The Enterprise recently announced the status of housing projects across 13 sites. According to a press release, eight of those that commenced construction in 2013 and 2014 are running far behind their scheduled completion dates.
The 1,292 houses at the Sengatera and Crown sites, in the Lideta and Akaki Kality districts, had reached 86pc and 84pc completion, respectively, at the time they were expected to be fully completed. But, according to Yohannes Abayneh, communications head at the Enterprise, that is as good as completed and signals they are ready for transfer to owners.
Construction at the Asko, Ehel Niged and Hintsa Akrabi sites, however, still sits at only 38pc, 64pc and 55pc completion. This is despite the fact that their scheduled completion dates have long since passed. The site in Asko has lagged behind schedule because of poor contract performance, according to Yohannes.
“We are preparing to terminate the contract for this project,” he added.
Yohannes blamed the delay in the handing of the 40/60 houses on incomplete infrastructural works, including roads and electricity. Electricity was the sole reason why the 35,000 houses in the latest round of the 20/80 and 10/90 schemes were not transferred to owners, says Yohannes.
Both Yohannes and the Enterprise’s board chairman, Abate Sitotaw, Deputy Mayor of Addis Abeba, also cited a shortage of reinforcement bars, cement and gravel as further reasons. In fact, despite better prices being offered to gravel makers, they were still not supplying an adequate amount, according to Yohannes.
The houses are ready to be transferred when they are 84pc to 89pc complete, he said, with the remaining work to be conducted by the owners themselves.
The Enterprises plans to make delivery of the houses over the next three months, according to Abate.
“Now the cement market is more or less stable, and steel bars that have been imported are being transported from the port,” Yohannes said.
The Public Procurement & Property Disposal Service (PPPDS) ordered 175,125 tonnes of steel reinforcing bars for 1.5 billion Br in June 2015, with part of this volume dedicated to the Addis Abeba City Housing & Construction Agency.
Now the Enterprise is planning buildings taller than those currently under construction, with the introduction of G+12, G+15, G+18 and G+24 condominiums. So far, the Enterprise has already begun the excavation work for the construction of the G+18 buildings in front of the premises of the Ethiopian Revenue & Customs Authority (ERCA).
The Enterprise has also already submitted a design for the G+24 buildings to the Ministry of Urban Development, Housing & Construction (MoUDC), and is now awaiting approval.
According to the plan, no additional G+7 or G+9 buildings will be planned. This is in order to use the land efficiently and to accommodate more houses and people, according to Abate.