Budget problems delay condo housing

Plans by the Addis Ababa Savings & Houses Development Enterprise (AASHDE) to construct 15,000 new condo houses appear to be put on hold as a source told Capital that the City has not released the budget for construction.

This fiscal year the City allocated 6.5 billion birr for the ongoing 40/60 condo construction but however no construction has taken place for the past two years.

During GTPII the enterprise planned to construct 75,000 new homes and according to the schedule 30,000 homes should have begun being built over the last two years.

The source added that poor coordination by the land bureau and the enterprise has contributed to the delay.

Recently the agency delayed delivery of billions of birr in large reinforcement bars purchased in bulk from local manufacturers for the 40/60 housing scheme claiming sufficient budget was not available in its book account.

Capital asked Yohannes Abaynehe, public relations officer of the enterprise about the delay and he said land is currently being prepared to begin construction.

“It is not what people think, we have a lot of land for the new condo construction and we will begin when the necessary preparation is completed,” he said.

Currently, 39,000 condominium units are under construction on 12 sites and 18,000 are expected to be completed in one year. They are located in Gerji, Bole Bulebula, Hayat  Meri and Summit.

According to the source one problem the condos under construction are facing is the high waste of cement and steel bars which apparently are being dropped carelessly because contractors are negligent.

“You don’t see gravel being wasted at the sites because the sellers buy the material but steel bar and cement are purchased by the government and small and medium enterprises so the contractors are not as motivated to be careful,” he said.

Yohannes responds that the enterprise will fine contractors who waste material through negligence.  Currently the enterprise has prepared 1,292 homes for the lottery draw, although they have been delayed.

In related news the new 20/80 and 10/90 house scheme will not begin this fiscal year due to budget constraints. The city administration said it will attempt to speed up the construction of the 133,321 houses.

The administration also announced it will offer a second chance to government workers to register for the 20/80 schemes.

  • kazanchis

    Not even able to release the budget on time and then come back with loads of excuses for project delay. People have saved billions hoping to get their houses by sacrificing awful lot. Government need to deliver or get the heck out of the way. Disgraceful!