Property Owners on Bole Road Face Uncertainty Amid Oromia Gov't Office Expansion

Apr 13 , 2025. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

A redevelopment initiative along Africa Avenue (Bole Road) has set off alarm bells for property owners whose holdings fall within the area earmarked for an expansion project by the Oromia Regional Government Office.

A letter dated January 26, 2025, signed by Mesafint Assefa, director of the Land Bank & Transfer Directorate, disclosed the Addis Abeba City Land Development & Administration’s decision to allocate these plots for the Oromia office project.

The project was launched in May 2023, after the region's President, Shimeles Abdisa, put a foundation stone. The turnkey project was contracted to the China Civil Engineering Corporation (CCEC), which is committed to complete it in two years.

The Oromia Regional State Communications Bureau disclosed during the launching of the project that the Office project would cover six hectares of land.

Mesfin instructed Woreda officials to discuss compensation and potential replacement plots. A representative from the Mayor’s Office and three officials from the Kirkos District Land Administration Bureau met with these owners recently to outline a plan covering 99,646Sqm in Woreda 1, home to 31 buildings such as ABC Trading, Hijira Bank’s headquarters, Zeger Guest House, Lions Hotel, MSN Real Estate, BH Apartment, and Bemore Apartment.

City officials presented a compensation plan covering moral damages, four years of rent, and a new plot. Those relying on rental income would receive coverage for economic losses.

“We've to make considerations,” said Muluneh Mulugeta, head of Kirkos District Land Development Bureau.

Many had invested heavily, some for over a decade. Others have unfinished structures.

“We poured our fortune to build these,” said a property owner, afraid they will lose everything before the doors even open.

Caught off guard, the owners formed a committee to seek recourse, planning to appeal to the Prime Minister’s Office and city authorities, including Mayor Adanech Abiebie. Yet, the law allows broad interpretation, and valuations vary.

Once expropriation is declared, courts can do little. Owners say they are not against development but want fair payouts.

“We aren't against development,” said an owner of one of the properties in the area. "But we need proper compensation.”

They worry about bank debts and abrupt changes. Some are still finishing buildings, hoping to recoup investment. Others anticipate relocation, unsure if promised sites will match the location’s value. City officials promise they will follow legal standards. Owners recall instances of expropriations where payouts fell short of realities.Discussions continue, with final packages yet to be determined.

For Habtamu Sitotaw (PhD), land law expert and lecturer, compensation should be based on fair and reasonable valuation for the city and owners.

“It should match current market prices or at least cover rebuilding costs,” he said.

Officials acknowledge concerns but stress the project’s importance. They argue that expropriation is permissible when it meets a recognised public use. Many owners, however, say they had no warning until summoned by the local officials.

“We had faith in the master plan,” said one, “but now it’s turned on us.”

A law passed six years ago allows city officials to expropriate land holdings for public use, provided compensations are paid and resettlement of displaced residents are carried out. It defines public use as a decision by a federal authority tied to approved land use, intended to promote economic development. However, the law requires city officials to comply with the master plan and engage with affected residents in consultation at least a year in advance, unless the land is urgently needed for investment.

Property owners fear the process will not account for the potential gains or time already spent.

“We poured our best years here,” said a property owner who requested anonymity due to the sensitive nature of the case. “We might be forced out before seeing any return.”

PUBLISHED ON Apr 13,2025 [ VOL 26 , NO 1302]

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