Wednesday, July 24, 2024
BusinessCorp’n to avail 630ha land for investors in Addis

Corp’n to avail 630ha land for investors in Addis

Filwuha area selected for health village development

The state-owned enterprise in charge of administering land under the ownership of public institutions avails 630.24 hectares of land in Addis Ababa for investors with a desire to develop in the sectors of housing, health, hospitality, information communication technology (ICT) and education. Three to five locations at the premises of several government institutions will be designated for each sector.

The Federal Land Bank and Development Corporation made housing its key priority by allocating the largest area of land with 226.9 hectares at four locations. The health sector follows with 198.11 hectares at four locations, while 117.6 hectares are allocated for hospitality at five locations. ICT and education have each 80.93 and 6.7 hectares of land allocated, respectively.

While all the projects are planned to take place in Addis Ababa, investments in the ICT and hospitality sector might be in the outskirts of Addis Ababa, or neighboring region, according to officials. Established three years ago with a task of registering and developing the excess plots of lands at federal government institutions as a state-owned enterprise, the corporation has so far registered 3,700 hectares of land in the capital. Generally in the country, about 4.7 million hectares of land is registered.

Lensa Mekonnen, chief executive officer (CEO) of the corporation said that her office availed the 630.24 hectares of land that are completely undeveloped for an investment forum to be held at the beginning of 2023. Parts of the remaining hectares of land registered in the capital are occupied by government institution to be refurbished with new investment.

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Dubbed Invest Origins, the forum will take place in Addis Ababa on January 26th and 27th, 2023. Prepared to sign at least three project contracts and five memorandum of understanding to work together with the interested investors, the corporation plans to attract at least USD two billion in a year.

According to the CEO, some of the locations will accommodate two or three investments together, following the feasibility study to determine classification of locations and the demand.

“In a location where there is a housing project, investments on education or health facilities can also take place. We are working on the details of locations, but it doesn’t have to be scattered everywhere,” she said.

One identified location is the area around Filwuha, which will be serving as a health village if the investors wish to engage in the health sector.

“The Filwuha area can attract best investments as there is already Zewditu Hospital and wellness services currently being rendered. We are studying on how the investors can revamp the wellness center and create a health village along with the existing hospital,” Lensa said.

The Addis Ababa City Administration is currently working on expansion projects of Zewditu Hospital. Lensa said the city administration can be part of the investment on the health village facility to be built revolving Zewditu Hospital and Filwuha.

“Even the city administration can oversee the project once our corporation brings the investment on the land. Should the projects are confirmed to be socially and economically beneficial, it isn’t only the corporation that has to engage on the investments but also city administrations,” she said.

Through the public private partnership scheme, the corporation will take equity shares in the investments making deals with the investors.

According to Lensa, what determines non-fixed equity shares of the corporation is the market size of the offered lands and projects, along with the economic or societal value gains to the community.

The need to relocate the government institutions from the developing areas or keep them will be decided based on the opportunity cost analysis during the implementation of the projects. However, the current focus for the corporation is vacant spaces that aren’t developed.

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