Wednesday, March 22, 2023
BusinessRelocation causes mega project to undergo 10 billion birr cost adjustment

Relocation causes mega project to undergo 10 billion birr cost adjustment

Officials hope to save one billion birr in rent once project is finalized

A relocation of the project to build a district for 36 sectoral offices in Addis Ababa causes a 10 billion birr cost adjustment, according to officials.

The project was first intended to be constructed in Megenagna area but a concern from authorities forced officials to relocate the site to Lideta District around Meda Garaj, near to Tikur Anbessa Hospital.

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The project will cost a maximum of 15 billion birr, an increase from the five billion birr cost estimated before the relocation.

The Addis Ababa City Property Management Authority, under the leadership of Yesuf Ibrahim, an opposition figure, has been tasked with undertaking the project, from conception to construction of the whole district.

Initially, when the project was conceived, the plan was to build the district on 6.2 hectares of land secured by the city administration in the Megenagna area. After the relocation, the design has been amended, and the district will be built on 9.2 hectares of land.

During the relocation, there was a dispute with the administration of the Federal High Court, which was also planning to construct offices for high courts in the same location. This, however, was resolved later after the Federal Supreme Court’s president, Meaza Ashenafi, arbitrated between the two.

Following the arbitration, the city administration agreed to make land available for the High Court in another location.

The Mega Project Office team, formed to follow up the project, is now in the middle of hiring contractors. Once the project is finalized, it will help the city administration save up to one billion birr spent on renting offices annually.

“While saving the money spent on rent, it will also make the service delivery efficient, as residents will get all the offices in one location,” Yidenkachew Walelgn, deputy head of the Project Management Authority, said.

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