Bill Transfers Compensation Payment Duties to Regions

Jun 29 , 2024

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.