Bill Transfers Compensation Payment Duties to Regions

Jun 29 , 2024


[ssba-buttons]

Parliament ratified an amendment to the compensation proclamation last week that transfers evaluations and payment responsibilities during resettlement for federal infrastructure projects to regional administrations. A month ago, State Minister for Finance Eyob Tekalign(PhD) heralded the amendment as a precondition for further compensation payments. The bill, which received four objections and six abstentions from the House, aims to reduce the amount of money asked for right-of-way compensation by ensuring that those who make the estimates end up paying. It also strips the regional courts of the right to issue injunctions on the bank accounts of federal institutions, with only the president of the Federal First Instance Court having been granted the power. Right-of-way disputes have resulted in court cases worth billions of birr with institutions like the Ethiopian Roads Administration and Ethiopian Electric Power and years-long project delays. Wondwesen Admase (MP-PP) from Amhara Regional State enquired how ongoing right-of-way disputes would be handled. He referred to the lack of transitory provisions to regulate the affairs of those already resettled and wondered if the regional states had been sufficiently consulted during the amendment's drafting. Shewit Shanka, Chairwoman of the Standing Committee for Urban, Infrastructure & Transport Affairs, indicated that a special support budget will be attached to each federal infrastructure project in the future.


Radar

New Directive Hikes Service Fees for Foreign Investors in Free Trade Zones

The Ethiopian Investment Board has issued a new directive revising the service fees from foreign investors payable in dollars to the Ethiopian Investment Commission (EIC), introducing updated rates for both the One Stop Shop and designated Free Trade Zones. The revised directive came into effect this April following its publication on the websites of the Ministry of Justice and the EIC. Issued pursuant to Article 23 of the Special Economic Zone Proclamation, the directive outlines charges for...


Radar

City Tables 350B Br Budget Plan for Upcoming Fiscal Year

The City Administration has approved a resolution to submit a proposed budget of 350 billion Br for the 2025/26 fiscal year to the City Council for deliberation. According to the Administration's statement on its official social media page, the draft budget is designed with a central focus on poverty reduction, encompassing targeted subsidies for sustainable development, investment in large-scale job-creating projects, and enhanced service delivery to address the growing demands of the reside...


Radar

Ethiopia, UN Launch Joint Plan to Drive Development Through 2030

The Ethiopian government and the United Nations (UN) have signed a five-year development plan outlining national priorities from 2025 to 2030. Signed on June 20 at the Ministry of Finance, the United Nations Sustainable Development Cooperation Framework (UNSDCF) with implications that it aligns with Ethiopia's reform goals and the Sustainable Development Agenda. The plan is backed by a projected 6.5 billion dollars, though only 1.5 billion dollars is currently secured. It focuses on closing t...