After a two-month delay caused by differences on land lease payments, Prime Minister Abiy Ahmed (PhD) cut the ribbon for the 50-billion-Br La Gare Eagle Hills Project early last week.

Kicked off jointly by Abu Dhabi-based private real estate company Eagle Hills and the city administration, the project encompasses building three hotels, 4,000 apartments, a mall and entertainment centres on a 36ha plot of land. It is expected to provide employment opportunities for 25,000 people.

The agreement between the city and the developer was expected to be signed two months ago. However, it was delayed due to differences on the relocation of the 1,600 households currently residing in the area and occupying over 10ha of the land. The company was expecting the city administration to handle the relocation issues of the residents.

A team of six delegates, including the city's land management, investment and housing officials led by Deputy Mayor Takele Uma, were in Dubai a few weeks ago to renegotiate the terms of the agreement.

After the re-negotiation, the city administration decided to grant the company the land with a lease free payment, while Eagle Hills agreed to build residential units for the inhabitants of the area.

Both have agreed to deliver the homes to the current residents without displacing them, according to Feven Teshome, press secretary at the city mayor's office.

"The parties will finalise the construction of the replacement homes prior to demolition," she told Fortune.

"The new homes will be built on the open areas. Only after the residents have been relocated to the new units will the demolition work be started," Feven told Fortune.

While granting Eagle Hills the land for free on a 99-year lease, the city retains a 27pc share in the project.

"Having a stake in the project will help us to closely monitor the project," Prime Minister Abiy told the gathering last Monday during the launching ceremony attended by Eagle Hills Chairperson, Mohammed Alabar.

Alabar, the eldest of 12 siblings, is the developer of Dubai’s Burj Kalifa skyscraper through his company, Emaar. Eagle Hills, established four years ago, has been engaged in major international real estate construction in Africa, Eastern Europe and the Middle East. Eagle Hills is currently working on 12 city construction projects including a waterfront project in Serbia and residential apartments in Jordan.

Following the start of the project, Eagle Hills is working on the outer fencing of La Gare Eagle Hills, which was the principal depot for Anbessa City Bus company. The station was moved to the open space in front of Ghion Hotel to accommodate the project.