The Ministry of Urban Development & Construction (MoUDC) has approved a scheme allowing partnership with Ethiopian real estate developers for the construction of residential houses. Iin this initiative termed as public private Partnership project, the government will subsidize the lease price of the land and private real estate companies will invest in capital and technology to construct the houses.

The partnership program is one of several modes the Ministry has incorporated in its urban housing policy to increase urban housing availability. The MOUDC added PPC as a modality after weighing the cost developers will save  if the government subsidizes land, which in turn would enable them to deliver houses at an affordable price for low and middle incomers.

The recently promulgated lease proclamation prohibit acquisition of land through negotiation with the city authority, leaving real estate developers to acquire land through land auctions.

The Ministry of Urban Development & Construction has already approved the Public Private Partnership scheme and is expected to work on the directive detailing the content of the scheme soon.