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City Adminstration of Ethiopian Capital Signs 4.4 Billion Birr Loan

The Addis Ababa City administration received a loan of 4.4 billion birr from the commercial Bank of Ethiopia for its housing development project. The money is earmarked for the construction of more than 40,000 condominiums this year.

The loan agreement was signed between the bank and the housing development project office on Sept 27. The loan from the commercial bank needs to be paid off in the fourth year after the agreement was signed with six per cent interest, according to Befekadu. The agreement allows the first year for construction and extends a further two years as a grace period he said.

The Addis Ababa City Adminstration has launched the largest annual housing construction project to date. The condominiums will be constructed at an estimated cost of 5.6 million birr in 10 sites across the city including Jemo, Ayat, Semit, Bashawolde Chilot and Yeka.

The construction budget will be covered by the 4.4 billion from the commercial bank loan and 1.2 billion birr surplus from the last fiscal year according to Befekadu Aseffa, deputy manager of the Housing Project.

The project has preordered 4.2 million tonnes of cement from the Mugher and Mesebo cement factories in anticipation of shortages he explained. It is estimated that 6.7 million tonnes of cement wil be required to complete current housing projects and begin new ones added Befekadu.

The project office has constructed 80,246 houses in the city out of which 63,677 have been transferred to owners.

Source: Addis Fortune