condominium housing in ethiopia - International Union of Tenants

Series Summary:Housing Practices: country experiences of designing and implementing affordable housing programmesHousing Practices is an ongoing series that documents the experiences of countries who are implementing large-scaleaffordable housing programmes. It is a flagship series developed and produced by the Housing Policy Section of UN-HABITAT, which provides authoritative and independent documentation of innovative affordable housing programmesin countries of the developing world.Rather than drawing from theory or abstract models, Housing Practices addresses the demand for practical guidanceon housing programmes based on experience. Each volume holistically documents one ‘best-practice’ housingprogramme that has achieved significant results. The volumes are thoroughly researched and presented in a way thatclearly communicates the country’s housing sector context, the elements of the programme, key achievements andchallenges, and suggestions for further programme improvement.Disseminating up-to-date information on country-specific large-scale housing programmes is vital to reveal to otherdeveloping countries the programmatic opportunities for addressing their housing shortages, reducing slum formationand growth, and improving the housing conditions of their citizens.Copyright © United Nations Human Settlements Programme (UN-HABITAT), 2011All rights reservedUnited Nations Human Settlements Programme (UN-HABITAT)PO Box 30030, Nairobi, KenyaTel: +254 2 621 234Fax: +254 2 624 266www.unhabitat.orgExcerpts may be reproduced without authorization, on condition that the source is indicated:UN-HABITAT (2010) The Ethiopia Case of Condominium Housing: The Integrated Housing Development Programme. UnitedNations Human Settlements Programme: Nairobi.HS Number: HS/023/11EISBN Number (Series): 978-92-1-132033-6ISBN Number (Volume): 978-92-1-132326-9DISCLAIMERThe designations employed and the presentation of the material in this publication do not imply the expression of anyopinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country,territory, city or area, or of its authorities, or concerning delimitation of its frontiers or boundaries, or regarding itseconomic system or degree of development. The analysis, conclusions and recommendations of the report do notnecessarily reflect the views of the United Nations Human Settlements Programme, the Governing Council of theUnited Nations Human Settlements Programme or its Member States.Photos:© UN-HABITAT / Katherine HegabEditor:Cover Design and Layout:Printing:Roman Rollnik, Matthew French and Ellen DaltropGideon MureithiUNON, Publishing Services Section, Nairobi, ISO 14001:2004-certified.

acknowledgementsThis report was prepared by Matthew French and Katherine Hegab from the Housing Policy Section, UN-HABITAT.Katherine Hegab and Rasmus Precht undertook the UN-HABITAT mission to Addis Ababa where they conductedresearch through site-visits, interviews with key stakeholders and household surveys on condominium sites. ClaudioAcioly, Christophe Lalande and Rasmus Precht from Housing Policy Section, UN-HABITAT, supervised andfinalised all outputs of this project. Valuable comments were provided by UN-HABITAT’s Regional Office for Africaand the Arab States.UN-HABITAT acknowledges the contribution of all individuals and organisations whose names are listed below. Inaddition to those mentioned here, appreciation is given to the households who participated in the household surveysundertaken in Bole Gerji and Gotera.Oqubay Arkebe, Abraham Tekeste, Amare Asgedom, Manuela Graetz, Sissay Dejene, Tadesse G. Gtorgis, GetachewErieso, Yassin Morku, Tenadem Zewdie, Yemane Tsegaye, Lealem Berhanu, Yigzaw Mekonnen, Tsedale Mamo,Wendwosen Demerew, Mesfin Ayalew, Esrael Tesfaye, Belaynesh Teklay, Tewodros Tigabu Alemu, Mesele Haile,Alessandra Tisot, Esayas Abebe, Mesfin Assefa, Abay Mehari, Yoseph Tesfaye, Mahlet Mekonnen, Tamrat G. Giorgis,Nigel Browne, Solomon Keffa, Matthew French, Christophe Lalande, Rasmus Precht, Ellen Daltrop.This publication was funded by the Participatory Slum Upgrading Programme (PSUP), a joint initiative by theEuropean Commission and the African, Caribbean and Pacific (ACP) Secretariat and implemented by UN-HABITAT.Condominium Housing programme: ethiopiai

contentsACKNOWLEDGEMENTSTABLE OF CONTENTSLIST OF TABLESLIST OF FIGURESEXECUTIVE SUMMARYiiiiiiivviiPART ONE: THE ETHIOPIAN HOUSING SECTOR 11.1 INTRODUCTION TO ETHiopia 11.2 BRIEF HISTORY OF LAND AND HOUSING IN ETHiopia 21.3 CURRENT STATE OF THE HOUSING SECtor 41.3.1 POLICY AND LEGAL FRAMEWORKS RELATED TO Housing 41.3.2 KEY PLAYERS IN Housing 41.3.3 HOUSING STOCK 51.3.4 HOUSING NEEDS AND EFFECTIVE demand 61.3.5 URBAN INFRASTRUCTURE AND BASIC URBAN SERVICes 71.3.6 HOUSING FINANCe 71.3.7 CONSTRUCTION INDUSTRY AND BUILDING MATERIALs 71.3.8 CROSS-CUTTING issues 91.3.9 CURRENT LOW-INCOME HOUSING APPROACHes 91.4 THE VISION OF THE INTEGRATED HOUSING DEVELOPMENT programme 10PART TWO: THE INTEGRATED HOUSING DEVELOPMENT PROGRAMME 132.1 OVERVIEW, ORIGINS AND SIGNIFICANCE OF THE programme 132.2 PROGRAMME design 152.2.1 INSTITUTIONAL FRAMEWORK 152.2.2 LEGAL FRAMEWORKs 172.2.3 PROGRAMME FINANCe 172.2.4 LOCATION OF PROJECts 192.2.5 CONSISTENT PROJECT SPECIFIC Features 20CONDOMINIUM HOUSING TYPOLogies 20COMMERCIAL units 22COMMUNAL BUILdings 22COSTING, QUANTITY SURVEYING AND CONSTRUCtion 24target BENEFICIARIES AND UNIT ALLOCation 262.3 PROJECT design 272.3.1 AN OVERVIEW OF PROJECts 272.3.2 PROJECT DESIGN AND IMPLementation 27site SELECtion 27preLIMINARY SITE AND HOUSING UNIT design 28LAND CLEARANCE, COMPENSATION, TEMPORARY RESETTLEMENT 28CONSTRUCTION CONTRACTOR engagement 28CONSTRUCTION stage 29unit ALLOCATION AND TRANSFer 29post-OCCUPANCY stage 302.4 CASE studies 31BOLE GERJI – THE CONDOMINIUM PILOT PROJECt 31LIDETA – THE FIRST INNER-CITY RELOCATION PROJECTin ADDIS ABABa 31iiContents

PART THREE: PROGRAMME PERFORMANCE 373.1 ANTICIPATED RESULTS AND ACHIEVements 37impaCT ON COUNTRY 37LARGE SCALE AND LOW Cost 37urBAN AND HOUSING DEVELopment 383.2 UNANTICIPATED RESULTS AND ACHIEVements 38HIGH DEMAND AND SUPPORT FOR THE programme 38LOW-INCOME LANDLords 38LAND AND RENTAL HOUSING MARKet 393.3 UNANTICIPATED CHALLENGES FACING THE programme 39aFFORDABILITY 40programme FINANCing 40BENEFICIARY CONSULTATION AND management 41proJECT SPECIFIC issues 41post-OCCUPANCY issues 43PART FOUR: KEY LESSONS AND CONCLUSIONS 474.1 KEY Lessons 474.2 SUGGESTIONS FOR IMPROVement 47aFFORDABILITY 47inFORMATION, CONSULTATION AND COMPENSATION IN THEresettLEMENT PROCess 48design AND CONSTRUCTION IMPROVement 48post-OCCUPANCY 484.3 CONCLUDING REMARKS – AN ACHIEVEMENT WITH POSITIVEside EFFECTS AND SCOPE FOR FURTHER IMPROVements 49BIBLIOGRAPHY 50list of TABLESTable 1: Houses constructed in Addis Ababa, 1996-2003 4Table 2: Planned Condominium Housing Unit construction, 2006-2010 11Table 3: Initial financial structure for beneficiaries according to unit type 19Table 4: Breakdown of unit typologies in each condominium block 21Table 5: Unit type and beneficiary income level 26Condominium Housing in ethiopiaiii

list of figuresFigure 1: Bole Gerji: the pilot project for condominium housing in EthiopiaviFigure 2: Addis Ababa is rising from a city of two-storey buildings to a city of skyscrapers.Bole, Addis AbabaviiiFigure 3: Kebele housing, Addis Ababa 3Figure 4: Market street, Addis Ababa 3Figure 5: The colossal condominium site of Jemo I, II, and III. Addis Ababa 12Figure 6: The hills of Addis Ababa 5Figure 7: The physical form of housing in Ethiopia is predominantly single-storey 6Figure 8: Small-scale enterprise in Addis Ababa 7Figure 9: ‘Chikka’: the traditional construction material for residential construction 9Figure 10: Construction methods in Ethiopia are labour intensive 9Figure 11: Multi-storey buildings in Addis Ababa are typically constructed fromcast in-situ reinforced concrete frame with brick infill walls 9Figure 12: Condominium housing of the Integrated Housing Development Programme. 10Figure 13: Jemo condominium site, Addis Ababa 22Figure 14: Institutional framework (National (MWUD) and in Addis Ababa) 16Figure 15: Bole Summit, the last condominium site to be built on the periphery of the cityAddis Ababa 18Figure 16: Project sites include unit blocks arranged around outdoor green space. Sengatera LDP 1 20Figure 17: Condominium models at the HDPO Headquarters 21Figure 18: Bole Summit under construction. Addis Ababa 22Figure 19: Finished condominiums in Mikililand, Addis Ababa 22Figure 20: Condominium block typical floor plan, SNNPR. ME Engineering 23Figure 21: Condominium block elevation, SNNPR. ME Engineering 24Figure 22: Condominium sites include commercial units at ground level in an effort to createmixed-use environments. Mikililand condominium site, Addis Ababa 25Figure 23: A communal unit in Bole Summit, Addis Ababa 26Figure 24: National distribution of condominium projects across the nine regional statesof Ethiopia 28Figure 25: Lideta site being cleared 29Figure 26: Construction of Bole Summit, Addis Ababa 29Figure 27: Quality checks on building materials are crucial to ensure a high-quality resultLideta, Addis Ababa 30Figure 28: Workman applying plaster to the first-storey of a condominium blockBole Summit, Addis Ababa 30Figure 29: Lottery winners are announced around the city. HDPO Headquarters, Addis Ababa 31Figure 30: Accumulated rubbish adjacent to condominium buildings. Mikililandcondominium site, Addis Ababa 31Figure 31: Labourers building the foundations for Lideta condominiums. Lideta, Addis Ababa 33Figure 32: The latest condominium project under construction and the last one to be builton the edge of the city: Bole Summit, Addis Ababa 36Figure 33: View from a communal corridor, Bole Gerji, Addis Ababa 39Figure 34: Isolated natureof condominium sites on the periphery of the city. Bole Summit,Addis Ababa 42ivLIST OF FIGURES, BOXES AND ACRONYMS

Figure 1: The Pilot Project for the Condominium Housing Programme built in Bole Gerji.Bole Gerji, Addis Ababa. © UN-HABITAT / Katherine HegabviExecutive Summary

Figure 2: Addis Ababa’s rising from a city of two-storey buildings to a city of skyscrapers.Bole, Addis Ababa. © UN-HABITAT / Katherine Hegabviii

The EthiopianHousing Sector1.1 Introduction to EthiopiaThe Federal Democratic Republic of Ethiopia is acountry of contrasts. Ancient rock-hewn churches sitalongside modern bustling cities. Cold mountainousregions counterpoint low-lying tropical monsoonclimates. Eighty distinct ethnic groups and indigenouslanguages differentiate the ethnically diverse population.Small stable villages that are home to the majority ofthe population are distinct to the enormous and rapidlyexpanding urban areas. The country boasts vast areas ofcultivable land yet regular food shortages and famine arecommon, and while there are a select few Ethiopianswith considerable wealth a substantial proportion ofEthiopians live in extreme poverty.Ethiopia is one of the poorest countries in the world. It isranked 169 th out of 175 countries in the United NationsDevelopment Programme Human Development Index.Among other indicators demonstrating the massivedevelopmental challenges facing Ethiopia, primaryschool enrolment is remarkably low at only 46 per cent,infant mortality is high at nearly ten per cent (98 childdeaths per thousand), 53 per cent of the population isilliterate, and 40 per cent of the population lives belowthe poverty line 1, 2 . National unemployment is high at16.7 per cent 3 , although in the capital city of AddisAbaba it is even higher at 32 per cent 4 .With a population of 79 million, Ethiopia is the secondmost populous country in Africa. It is growing rapidly;the annual growth rate is 2.6 per cent, equating to twomillionbirths per year 5 .Despite having one of the lowest proportions of urbanpopulation in the world at only 16.7 per cent 6 , Ethiopiais rapidly urbanising at a high annual growth rate of3.49 per cent 7 . In the space of seventeen years the urbanpopulation more than doubled from 6.4 in 1990 to 13.8million in 2007 8 . The population is very young with 45per cent under 15 years of age 9 .The combination of high population and urban growthrates coupled with a high prevalence of urban povertyhave placed enormous strain on Ethiopian cites. 80per cent of the population lives in sub-standard slumhousing that needs either complete replacement orsignificant upgrading 12, 13, 14 . Ethiopian cities sufferfrom a high degree of homelessness, environmentaldegradation, urban decay, a shortage of infrastructureand basic services, and high unemployment. These factorscombine to produce the critical urban issue addressed inContents1chapter oneintroductionTO ETHIOPIA1.1 Introduction to Ethiopia1.2 Brief history of land andhousing in Ethiopia1.3 Current state of the housingsector1.4 The vision of the IntegratedHousing DevelopmentProgrammeDESPITE HAVING ONE OF THELOWEST PROPORTIONS OF URBANPOPULATION IN THE WORLD ATONLY 16.7 PER CENT 10 , ETHIOPIAIS RAPIDLY URBANISING AT AHIGH ANNUAL GROWTH RATE OF3.49 PER CENT 11 .Condominium Housing in ethiopia 1

THERE IS MASSIVE DEMAND FORSERVICED, HEALTHY, AFFORDABLEHOUSING. THIS DEMAND STEMSFROM BOTH THE CURRENTHOUSING DEFICIT AND THE POORQUALITY OF THE EXISTING KEBELEHOUSING STOCK THAT IS BEYONDREPAIR.1.3.4 Housing needs and effective demandFigure 7: The physical form of housing in Ethiopia ispredominantly single-storey. © UN-HABITATThe physical form of Ethiopian housing has beendominated by single-storey construction, with a highproportion of ‘terrace housing’ (housing units adjoiningother units rather than free-standing). Nationally, in the1994 census, 98.3 per cent of buildings nationwide weresingle storied and the remaining 1.7 per cent were multistoriedbuildings 43 .In terms of tenure, private house ownership levels arelow. In Addis Ababa only 30 per cent of houses areowner occupied. Rental housing is the dominant tenuremode. In Addis Ababa, in the 1994 census 57.3 percent of the housing stock was government-rental, eitherthrough local municipalities, or the National Agency forAdministration of Rental Housing 44 .THE PHYSICAL FORM OF ETHIOPIANHOUSING HAS BEEN DOMINATED BYSINGLE-STOREY CONSTRUCTION. INTERMS OF TENURE, PRIVATE HOUSEOWNERSHIP LEVELS ARE LOW. INADDIS ABABA ONLY 30 PER CENTOF HOUSES ARE OWNER OCCUPIED.RENTAL HOUSING IS THE DOMINANTTENURE MODE.The government estimates that the current housingdeficit is between 900,000 and 1,000,000 units in urbanareas, and that only 30 per cent of the current housingstock is in a fair condition, with the remaining 70 percent in need of total replacement 45 . In Addis Ababaalone, 300,000 units are required to meet the deficit 46 .The housing deficit is set to increase concurrently withthe foreseen high population and urbanization growth.Between 1983 and 2007, Ethiopia’s population morethan doubled, from 33.5 million to 81.2 million 47 , andit is projected to more than double again by 2050 toreach 170.2 million. To accommodate future growth,the Urban Sector Millennium Development GoalsNeeds Assessment (2004) predicted that to meet theMillennium Development Goals (MDGs) in 2015requires a total of 2,250,831 units, which equates to aconsiderable 225,000 houses per annum.There is massive demand for serviced, healthy, affordablehousing. This demand stems from both the currenthousing deficit and the poor quality of the existingkebele housing stock that is beyond repair. However,there is low effective demand. Effective demand is basedon the ability and willingness to pay for housing,affected by income and what households are prepared topay. Although effective demand is difficult to determinebecause it requires reliable data on income levels andexpenditure patterns of households, their savingscapacity and prioritisation of housing vis-à-vis otherforms of investment, it is the case that the majority ofEthiopians cannot pay for formal housing supplied bythe private market. Therefore, the greatest need is foraffordable housing.6INTRODUCTION TO ETHIOPIA

1.3.5 Urban infrastructure and basic urbanservicesInfrastructure and basic urban service provision islow. The majority of Kebeles have access to water andelectricity but they have limited access to adequatesanitation systems. The sewerage network is small; inAddis Ababa it covers only 3 per cent of the city’s area.As with housing, infrastructure and basic urban servicesare provided and regulated by the state.1.3.6 Housing financeThere is a distinct absence of a diversified and flexiblehousing finance sector in Ethiopia. For many years, theConstruction and Business Bank (CBB) (formerly theHousing and Savings Bank) was the only bank to offerhousing construction loans and long-term mortgagesfor the procurement of housing. The Bank, which wasowned by the government of Ethiopia, relied heavilyon the Central Bank for its capital. During previousregimes this was not a problem, as the governmentwas responsible for the procurement of housing for theurban poor and housing units were completed and heldby the government in a rental portfolio. However, inthe 1990s, the Construction and Business Bank startedlending money directly to housing cooperatives. Overall,this centralized financial set-up has resulted in a housingfinance sector that is very limited in its scope anddiversity of the products it offers.A major challenge facing securing affordable housing forlow-income Ethiopians has been access to housing finance.A MAJOR CHALLENGE FACINGSECURING AFFORDABLE HOUSINGFOR LOW-INCOME ETHIOPIANSHAS BEEN ACCESS TO HOUSINGFINANCE. FOLLOWING THEMARKET-LED ADJUSTMENTSIMPLEMENTED IN THE POST-1991PERIOD, SUBSIDIZED INTERESTRATES WERE REMOVED WHICHSIGNIFICANTLY INCREASEDLENDING RATES.Following the market-led adjustments implementedpost-1991, subsidized interest rates were removed whichsignificantly increased lending rates. Rates increasedfrom 4.5 per cent for co-operatives and 7.5 per cent forindividuals to 16 per cent for both, severely reducing theopportunity for the low-income households to securea home loan 48 . Furthermore, with a high percentageof low-income people receiving income from informalsources and lacking capital to use as collateral, accessto formal credit has been limited or non-existent. Thelow level of domestic savings of the population, coupledwith the shortage of external resources, has affectedthe availability of investment in the housing sector. Atthe household level, these translate into a low level ofinvestment in housing, and little capacity of the lowincomepopulation to own minimum-standard housing.Houses of a minimum standard have simply been out offinancial reach for the poor 49 .1.3.7 Construction industry and buildingmaterialsAs with finance and urban service provision, thegovernment significantly controls the constructionindustry. Before 1991 the government had a monopolyover the production and supply of building materials.Even though the government is still active in retailingand some subsidies remain in place, material productionand supply is gradually shifting to a market basedapproach where prices are by-and-large market prices 50 .Building materials are high in price and of a low qualityrelative to neighbouring countries 51 .Figure 8: Small-scale enterprise in Addis Ababa. © UN-HABITATFor low-income housing the most common buildingmaterials used are wattle and daub (‘chikka’) forwalls, with roof rafters of round tree lengths (usuallyEucalyptus) covered with corrugated iron sheeting, andCondominium Housing in ethiopia7

skim concrete or compacted earth floor. Larger multistoreycommercial and residential buildings in urbanareas are composed of reinforced concrete frame and slabconstruction with hollow brick or fired brick infill walls.There is a pressing need for more cost efficient alternativematerials, as the current cost of construction materialsis a high proportion of total construction cost, typicallyaround 70 per cent 52 .Figure 9: ‘Chikka’: the traditional construction material forresidential construction. © UN-HABITATThe construction industry comprises four mainsectors: building and residential development sector(construction companies), civil engineering sector,professional services, and informal self-building sector 53 .Construction companies are classified according tosize, expertise, and financial capability. They must beregistered with the MWUD and licensed to undertakeconstruction work. There is little specialisation incontractors work, with contractors taking on all aspectsof a building project (rather than specific tasks such asfoundations, structure, roofing, etc) 54 .The professional services sector comprises mostlyarchitects, engineers (mechanical, sanitary) and quantitysurveyors. Logically, the informal self-building sector isnot registered but supplies materials and labour at a verylarge scale, employing a large number of people. There islittle cross-collaboration between the professional sectorand informal sector.Figure 10: Construction methods in Ethiopia are labourintensive. © UN-HABITATThe national Ethiopian Building Code, EthiopianBuilding Proclamation 624/2009 is a legal documentthat outlines the building regulations and requirements,for use by local authorities to ensure building standardsare maintained in their jurisdiction. Parts of Ethiopiaare located in an earthquake zone and a code exists toensure buildings resist maximum predicted earthquakeloads. The codes are only used and enforced in buildingsdeveloped in the formal sector.The construction sector is undergoing several changes.The government’s plan for the budget year of 2008/09was to enhance “the capacity of the construction industryby making it capable and competitive, enhancing itscontribution to the country’s economy, enabling it tomeet the demand for housing construction, and enablingit to create ample employment opportunities” 55 . It aimedto achieve this by improving construction industrypolicy; developing a construction industry capacitybuilding programme; and ratifying and implementingthe national building proclamation 56 .Figure 11: Multi-storey buildings in Addis Ababa are typicallyconstructed from cast in-situ reinforced concrete frame withbrick infill walls. © UN-HABITAT8INTRODUCTION TO ETHIOPIA

The government aims to meet nearly half the housingneeds and to support private sector to provide the otherportion 70 . After further elaboration of the programme,the target was 360,000 residential condominium unitsacross a range of housing typologies (Table 2) and 9,000commercial units.Table 2: Planned Condominium Housing Unit construction, 2006-2010Studio 1 Bedroom 2 Bedroom 3 Bedroom Total unitsAddis Ababa 36,750 71,750 52,500 14,000 175,000Other regional states 38,850 75,850 55,500 14,800 185,000Total 75,600 147,600 108,000 28,800 360,000% distribution 21% 41% 30% 8% 100%Source: adapted from Dolicho, E. (2006) Condominium, A New Housing Development Approach for Addressing the Low IncomeHousing Problem of Addis Ababa, Ethiopia (Final Report). ICHUD, IHS, June 2006, Rotterdam, The Netherlands.Condominium Housing in ethiopia11

Figure 13: The collosal condominium site of Jemo I, II and IIIJemo, Addis Ababa © UN-HABITAT / Katherine Hegab

At the start of the programme, the Mayor created asteering committee, composed of the Bureau Heads ofthe Addis Ababa City Administration and representativesfrom GTZ and MH Engineering, an Ethiopian designand engineering consulting firm. Later, the HousingDevelopment Project Office assumed full managementof the programme and a Board of Governors containingall members of the former steering committee, exceptthe GTZ representative, was created.Significance of the programmeThe Ethiopian Integrated Housing DevelopmentProgramme is an ambitious programme that directlyaddresses the pressing low-income housing challenge. Theprogramme is significant and worthy of documentationfor four principal reasons.1. Large scaleThe programme is a large-scale approach to addressingthe current housing deficit, the poor quality of theexisting housing stock, and the future housing needsdue to continued urbanization. Ethiopia is one of fewcountries in Africa that has recently implemented aprogramme at such an ambitious scale. The large scalecontrasts the prevailing approach of small-scale projectbasedslum upgrading and housing cooperative schemes.2. Pro-poorThe programme allows low- and middle-incomehouseholds, who typically live in precarious housingsituations to access improved housing. Through theconstruction of durable, fully-serviced housing unitsthe programme greatly improves their living conditions,security of tenure, and access to basic services.Importantly, the programme has facilitated access tocredit for the low-income sector of the population,through the Commercial Bank of Ethiopia, wherepreviously there was very limited opportunity forlow-income households to secure credit for improvedhousing.3. Slum prevention and access to homeownershipThe programme marks a radical departure from previousgovernment-owned rental housing approaches to thatof private homeownership. The programme highlightsgovernment and local authority commitment toaddressing housing affordability for the low-incomesector of the population and improving the livingconditions of the low-income urban dwellers to meetthe MDGs and reduce urban slum prevalence rates inEthiopia.4. Integrated approach to housing and economicdevelopmentThe programme recognizes the opportunity for housingto stimulate the economy, create employment, andimprove the capacity of the construction and financialsectors. The adoption of cost-effective constructiontechniques and systems, notably pre-cast concreteelements, have reduced construction costs (by up to30 per cent) compared with conventional systems,improved the speed of construction, and facilitated thedevelopment of small and medium enterprises to produceconstruction elements. Furthermore, effective quantitysurveying and construction management systems havehelped reduce construction costs and material wastage,resulting in a programme that is extremely cost-efficient.Box 1: Condominium housing: a broaddefinition of a housing typologyCondominium housing is a name given to the form ofhousing tenure where each resident household ownstheir individual unit, but equally shares ownership andresponsibility for the communal areas and facilities ofthe building, such as hallways, heating systems, andelevators. There is no individual ownership over plots ofland. All of the land on a condominium site is ownedby all homeowners.Usually, the external maintenance of the roof and wallsare undertaken by a Condominium Association thatjointly represents ownership of the whole complex,employing strict management to ensure fundingfrom each homeowner. This Association consists ofrepresentatives of all condominium residents whomanage the site through a Board of Directors, electedby Association members.A register of condominium units and common areason site and any restrictions on their use is commonlyestablished in a Master Deed which authorizes theBoard of Directors to administer condominium affairsand assess owners on their performance of adequatemaintenance. Rules of governance are usually coveredin a separate set of Bylaws which generally governthe internal affairs of the condominium blocks.Bylaws usually establish the responsibilities of theCondominium Association; the voting procedure tobe used at Association meetings; the qualifications,powers, and duties of the Board of Directors; thepowers and duties of the officers; and the obligationsof the owners with regards to assessments,maintenance, and use of their unit and common areas.A set of Rules and Regulations, providing specificdetails of restrictions and conduct, are established bythe Board and are more readily amendable than theDeclaration or Bylaws. Typical rules include mandatorymaintenance fees (often a monthly collection), pet andlivestock restrictions, and colour/design choices visiblefrom the common areas of the buildings. ➤14the condominium housing programme in ethiopia

The upkeep of walls and features inside acondominium unit is the sole responsibility ofhomeowners themselves. This area is defined as thearea bounded by the walls of the building, allowingthe homeowner to make some interior modificationswithout creating an impact on the common areas.These boundaries are specified by a legal declaration,filed with the local governing authority. Anythingoutside this boundary is held in an undividedownership interest by a corporation established at thetime of the condominium’s creation.Condominium unit owners can be permitted to rentout their home to tenants, although leasing rightsmay be subject to conditions or restrictions set forthin the original declaration, such as a rental cap on thetotal number of units a community can lease at anyone time, or otherwise as permitted by local law.The programme recognizes the opportunityfor housing to stimulate the economy, createemployment, and improve the capacity of theconstruction and financial sectors.2.2 Programme DesignThis section outlines the structure of the IntegratedHousing Development Programme. It covers institutionaland legal frameworks, programme finance, and specificfeatures common to all projects (such as housing unittypologies, commercial and communal unit provision,and construction costing).2.2.1 Institutional FrameworkThe institutional framework is illustrated in Figure 14.Ministry of Works and Urban Development (MWUD)The Ministry of Works and Urban Development dealswith the housing programme at large. The Ministryprovides support and direction at national level whilst aBureau of Works and Urban Development in each regionhas been set up to coordinate the specific needs of thearea. Under the Housing Development Bureau in theMWUD there are four Directors: one to manage housingfinance; one for the implementation mechanisms; onefor capacity building and one for research and design.Addis Ababa City AdministrationThe Addis Ababa City Administration is the managingagency for the IHDP in Addis Ababa. The office isresponsible for the selection of new sites; the allocationof government resources; the extraction of funds fromthe city’s budget to finance construction; the acquisitionof bonds from the Commercial Bank of Ethiopia (CBE)to pay for all other factors including the infrastructurecosts and design-team costs; and the compensation ofall households displaced by inner-city renewal. TheCity Administration created the Housing DevelopmentProject Office (HDPO) specifically to manage theimplementation of the housing programme.The Housing Development Project Office (HDPO)The Housing Development Project Office was setup to ensure the successful delivery of the three mainprocesses in the IHDP in Addis Ababa: the ‘design’,the ‘construction’, and the ‘housing transfer andadministration’. Ten sub-city branch offices of theHDPO were set up around the city to facilitate theconstruction of condominium units. In addition thereare four Housing Transfer Offices each clustering severalsub-cities.German Technical Corporation (GTZ)In 2003, GTZ investigated the technology ofprefabricated building materials needed to implementa low-cost housing programme, through their bilateralprogramme. The last project they were involved in washanded over to the government in March 2010, markingthe completion of their contract. Whilst the organisationwas acting as an implementing body, they engageda project manager to administer both the finance andconstruction aspects of the programme.MH Engineering (MHE)MH Engineering is a large Ethiopian architecture firm.The company, composed of 80 architects, civil engineers,structural engineers, electrical engineers, and quantitysurveyors, was responsible for the concept design of thefirst condominium project in Ethiopia and a successionof 31 schemes thereafter, 13 of which were under themanagement of GTZ, and the remaining 18 under themanagement of the HDPO.The firm’s initial designs for cost-efficient condominiumsin Addis Ababa stemmed from their collaboration withthe Low-Cost Housing Project at GTZ, where theyintroduced the Cost-Efficient Methodology (LCH-MHsystem) of utilising pre-cast concrete elements in buildingdesign. MHE produced a manual that addressed thehousing problems experienced by the country’s lowincomegroups and offered their conceptual designsolution as an open and accessible piece of work to beexplored.MH Engineering has provided supervision for newcondominium projects, but has stepped back fromtheir role as the lead design team so as to enable newlyestablished companies to take on the responsibility.Condominium Housing in ethiopia15

Figure 14: Institutional framework (National {MWUD} and in Addis Ababa).Central Bank of Ethiopia (CBE)Ministry of Works and Urban Development (MWUD)Credit DivisionPolicy Reseach &Planning BureauUrban DevelopmentCapacity Building OfficeHousing DevelopmentBureauFederal UrbanPlanning InstituteLand Development &Management BureauAddis Ababa City AdministrationLand Administration andEnvironmental ProtectionBureauFinance andEconomicDevelopmentBureauBureau of Works andUrban Development(BoWUD)Land DevelopmentBanking and RenewalProject OfficeLand Administrationand ConstructionPermit AuthorityHousing Development Project Office (HDPO)Construction & SupervisionSupport Process Support Process Housing Transfer & AdministrationResearchPlanningAudit Legal&BudgetPurchase,Finance &AdministrationCommunicationAffairsDesign &InfrastructureCoordination10 Project Offices/ Bureaus for Construction for 10 Sub-cities4 Housing Transfer OfficesProjectOfficeAradaProjectOfficeLidettaProjectOfficeLaffoProjectOfficeYekaProjectOfficeBoleProjectOfficeKirkosProjectOfficeAddisKetemaProjectOfficeKolfeKeranyoProjectOfficeGulleleProjectOfficeAkaki-KalityHDPO TransferOfficeNorth(Clustered sub-cities)HDPO TransferOfficeSouth(Clustered sub-cities)HDPO TransferOfficeEast(Clustered sub-cities)Contractors Consultants MSEsDesignHDPO TransferOfficeWest(Clustered sub-cities)16the condominium housing programme in ethiopia

Through the firm’s involvement in the programme,they have trained and certified 13 consultants on costefficientconstruction so far, and have contributed to thejury that decides on the designs for new condominiumsites across the country, following government-releasedcompetitions. Mr. Haile, Managing Director of theMH Engineering, is on the Board of Directors for theIHDP, which has been set-up to discuss the design,cost, monitoring, construction, finance, technology,administration, and allocation of new condominiumprojects. The board is composed of 11 members and ischaired by the Mayor of Addis Ababa.Commercial Bank of Ethiopia (CBE)The Commercial Bank of Ethiopia is a governmentownedbank, whose mandate is to provide financefor commercial purposes. In 2006, facilitated bythe MWUD, the CBE agreed in Memorandums ofUnderstanding with the five involved regional statesand the city of Dire Dawa to purchase bonds in orderto enable the regions to finance the implementation ofthe IHDP. The city of Addis Ababa, after exclusivelyusing the cities own budget during the first years, alsostarted selling bonds to the CBE to finance all factors ofthe programme, including construction costs. The Bankprovides funding for the total cost of the programme’simplementation in Addis Ababa and in the regions, andnot on a site-by-site basis.The Bank has also come to an agreement with theHDPO to provide a loan-service to all condominiumbeneficiaries, whereby the Bank pays 80 per cent of theunit price on behalf of the beneficiary at the handoverof the property (the beneficiaries pay the 20 per centdown payment themselves) and the families enter into aloan-agreement with the CBE to pay back this amountsubject to interest.The Bank benefits from the programme by receivinga significant influx of clients without the needfor advertising and, as only a small percentage ofcondominium beneficiaries (approximately 5 to 10per cent) are able to pay the full 100 per cent of theirpayment at handover, the remaining enter into loanagreements with the bank.As a result of this collaboration, the Bank has accumulated36,933 new customers in Addis Ababa alone, and hashanded out the total loan sum of ETB 1.7 billion (USD130 million) which is charged at an annual interest rateof 8.5 per cent interest rate. The Bank has also providedloans to approximately 4,535 customers in the regionalstates, but has chosen not to continue their support inthese regions in the future as demand is too low.2.2.2 Legal frameworksWhile the following list is not exhaustive, the key lawsrelating to the IHDP are:Proclamation No. 172/2002 pertains to the lease holdingof urban land, with all land in public ownership.Proclamation No. 272/2003 stipulates that land isprovided free of lease charge for low-cost housingdevelopments.Proclamation No. 370/2003, The Federal CondominiumProclamation, pertains to condominium housing. Itdefines condominium as “a building for residential orother purpose with five or more separately owned unitsand common elements, in a high rise or in a row ofhouses, and includes the land holding of the building” 1 .Proclamation No. 19/2005 deals with beneficiaryeligibility criteria and selection and penalties for noncompliance2 .Proclamation No. 455/2005 affirmed the basis andamounts of compensation for displacement and landexpropriation. 90 days notice period must be given;compensation is to be paid at market value; relocationcosts incurred must be met; and rental and ownershipoptions must be provided at fair prices, in the same ornearby location.Proclamation (number unknown) allowed theimportation of cement as the lack of locally availablecement caused major construction delays forcondominium projects.Regulation No. 15/2004 outlines the establishment of theAddis Ababa City Government Housing DevelopmentProject office and outlines its duties and responsibilities.Regulation No. 12/2004 outlines the condominiumregulations for Addis Ababa city, regulating furtherdetails to Proclamation No. 370/2003.2.2.3 Programme FinanceGovernment financeThe Integrated Housing Development Programme isentirely financed by public resources. The programmewas originally funded by the city government’s ownaccount. After three years, however, it became necessaryto consider a new strategy. The new approach came in theCondominium Housing in ethiopia17

Figure 15: Bole Summit, the last condominium site to be built on the periphery of the city. Addis Ababa. © UN-HABITATform of the regional and city administration purchasingbonds from the Commercial Bank of Ethiopia, securedunder a Bond Agreement and paying them back over fiveyears. Presently, CBE is the only independent financialresource for the housing programme in Ethiopia and hasso far provided ETB 3.2 billion (USD 246 million) inbonds to the government, receiving a return of ETB 2billion (USD 153 million). Up to this date, the housingprogramme has not received any donor funding.The IHDP is solely financed by CBE bonds and the cityadministration’s own budget. The returns are used topay back the bank bonds where once they were investedinto new schemes. An agreement between the cityadministration and the CBE has ensured that the HDPOdirectly receives the bonds for the implementation ofthe programme, and as a result the HDPO has alreadyborrowed ETB 3 billion (USD 230 million) in threeseparate phases.A proportion of the Addis Ababa city budget is allocatedto condominium building construction costs, labourcosts, and infrastructure costs. (The infrastructure worksinclude the water supply, the electricity, the roads andthe drainage system). Within each project the relativeweight of these are 60, 20 and 20 per cent respectively.The federal government and the regional states havesecured a Value Added Tax (VAT) tax exemption (15per cent) on the import of all building materials andmachinery for the IHDP and have allocated ETB 2billion (USD 153 million) for the import of loaders,crushers and other machinery for the rapidly growingconstruction industry. This money is transferred directlyto construction companies to allow them to purchase themachinery as and when they need it. The governmenthas also guaranteed exemption from the lease paymentfor land up to 50m² per unit.The construction cost of a condominium housing uniton the private market is estimated to be ETB 2,000/m² (USD 154/m²) The target cost on the pilot project,Bole Gerji, was ETB 800/m² (USD 61/m²) and theactual figure achieved was ETB 886/m² (USD 68/m²).12 per cent of this reduction in construction costs wasdue to the type of technology used, and 38 per cent ofthis reduction was due to the management and level ofinternal finishes - in other words, the phasing strategiesand the absence of floor tiles, the floor screed finish andabsence of wall plaster all contributed towards increasingthe affordability of the scheme.In the long-term, the programme is structured to be 100per cent cost-recoverable. Beneficiaries will eventuallypay for the full construction cost of their condominiumsand the land and infrastructure cost will be recoveredthrough the sale of commercial units. Nevertheless, aswill be discussed in Part Three, the question remainsregarding whether or not the various financial methodsthe government uses to subsidise housing production inthe IHDP is a cost-effective and sustainable method ofprocuring and financing affordable housing.18the condominium housing programme in ethiopia

Beneficiary financeCondominium unit beneficiaries are required to make adown-payment out of their own savings to secure theirunit. The down-payment percentage varies accordingto unit type. Beneficiaries enter into a contractualloan agreement with the CBE on the basis of monthlyinterest and principal repayments. Initially, interestrates for studio units were zero per cent and 2 per centfor 1-bedroom units (Table 3), but the system has beenchanged and includes annual interest rates of 8.5 percent for all units.The project finance structure aims to cross-subsidizethe studio and one-bedroom units as a pricing strategyto increase affordability for low-income households.Studio and 1-bed units are sold lower than theirindividual construction costs and 2- and 3-bedroomunits are sold higher than their individual constructioncosts. The subsidy percentages are: studio -30 per cent,1-bed -10 per cent, 2-bed +5 per cent, and 3-bed +10per cent of unit construction cost. Likewise, there isintended to employ families for six months on theconstruction sites where they could earn ETB 2 a day(USD 15 cents) and save half of this to go towardsthe down-payment for a unit. Unfortunately, thisprogramme feature did not eventuate.The Addis Credit Savings Institution (AdCSI),established in 2000 and capitalized with ETB 517,000(USD 39,000) in city funds, provides savings accountsand lending services to individuals, cooperatives, smallbusinesses, and others. It has experienced an increase inhousing lending as it offers down-payment loans to lowincomebeneficiaries of the IHDP 3 .2.2.4 Location of projectsThe IHDP was envisaged as a national housingprogramme to meet national housing demand.Accordingly, in 2006 a decision was taken to implementthe IHDP in the nine semi-autonomous administrativeTable 3: Initial financial structure for beneficiaries according to unit typeUnit type Down-payment Interest rate Grace period Repayment periodStudio 10% 0% 6 months 20 years1-Bed 10% 2% 3 months 10 years2-Bed 30% 7.5% - 15 years3-Bed 30% 7.5% - 10 yearsCommercial 100% - - -Source: Based on data from: Haregewoin, Y. (2007) Integrated Housing Development Programs for Urban Poverty Alleviation andSustainable Development (The Case of Addis Ababa). Proceedings, European Network for Housing Research 2007: Sustainable UrbanAreas. Rotterdam, 25-28 June 2007. p.13.cross-subsidy from commercial to residential with thesale of commercial units financing the construction ofinfrastructure for each site.No credit or income checks on potential beneficiaries areundertaken. The assumption is that if beneficiaries havethe financial capacity to meet their mortgage obligations,they will do so. If not, they will rent out their unit andfinance the mortgage through this income. The CBErefers outstanding mortgage repayments to the HDPO,who, depending on the grace period, in turn may replacethe household with another household who has theability to pay.In an effort to improve affordability for low-incomeunemployed households, the programme originallyregions of Ethiopia. It was thought that this actionwould address the problem of migration from ruralareas to the urban centres at the source, and potentiallyimprove secondary cities, whilst acting “as a preventivemeasure against slum development” 4 .Methodologies and guidelines were drawn from AddisAbaba’s experience of the programme, and adapted tosuit the regions. As of mid-2010, the programme hadbuilt a total of 69,921 units in the regions of Ethiopia,of which 22,699 have been transferred. However, theIHDP has been suspended in the regions for a variety ofreasons. The condominium blocks have been describedas ‘an eye-sore’ in the smaller low-rise provincial townsand demand has been low due to considerably lowerpurchasing power in the regions than in Addis Ababa.Condominium Housing in ethiopia19

2.2.5 Consistent project specific featuresWithin the programme there are common elementsacross all individual condominium projects: the housingdesign typologies, the provision of commercial units andcommunal buildings, costing and quantity surveyingsystems, and building permits and land transferagreements.Condominium housing typologiesAt the start of the IHDP, the Mayor of Addis Ababaat the time, Mr. Oqubay Arkebe, approached thearchitecture and engineering firm, MH Engineering, tocall upon their assistance to draw up schemes for the firsttwo phases of the programme. The firm quickly becamethe lead architect-and-engineering firm for the conceptdesigns of 31 condominium projects.Their design proposals were based on the logic thatbecause the houses themselves could not be of such finequality because of the low-cost nature of the project,ample outdoor green space had to be accommodated onsiteto make residents feel proud of their surroundingsand ‘remove the stigma of housing for the poor’.They attempted to address the inevitable difficultcultural transition of some occupants in moving fromlow-rise buildings to high-rise buildings throughproviding a well-designed neighbourhood, provision ofcommunal buildings, and a strong connection to land.Unfortunately, the demands placed on increasing thedensity of sites resulted in the modification of the originalmaster plan and their design principles, specifically theloss of the original clarity of the master plan objectivesand a sizable percentage of outdoor green space.Densification is the driving concept behindcondominium housing. The IHDP believes that isgenerally more expensive to create lateral developmentthan vertical development so high-rise housing shouldbe encouraged, especially in valuable inner-citylocations. IHDP projects range in density from 175 to300 households per hectare 6 . At present condominiumblocks are ‘ground floor plus four storeys (G+4) in height,in some cases five storeys (G+5), therefore avoiding theneed for a mechanical lift, which minimizes associatedconstruction and maintenance costs. However, in themost recent condominium project, located in AddisAbaba’s Lideta district, condominium blocks are groundfloor plus seven storeys (G+7). Although this modelrequires an internal lift which increases construction andmaintenance costs, the value of the centrally located landnecessitates the higher density to maximise the use of theinner-city land on which it is located.There are four unit typologies incorporated into eachcondominium block: a studio, 1-bedroom, 2-bedroom,and 3-bedroom unit types (Table 4). Each unit includesa bathroom, which includes a shower, flush-toilet, andbasin, and a separate kitchen. Each unit has water,sewerage, and electricity connections.Typically 40 per cent of units are 1-bedroom as statisticshave shown that the balance between floor-area andpurchasing price of a 1-bedroom unit is the mostFigure 16: Project sites include unit blocks arranged around outdoor green space. Sengatera LDP 120the condominium housing programme in ethiopia

popular amongst condominium-applicants. The unittypes are distributed evenly across each storey, ratherthan each storey having only one type to encourage amix of income groups.The same overall design strategy is used across all projects,although minor modifications are made to make eachproject site specific. The site layout of the condominiumblocks, commercial units, and communal buildingsdepends on the specific site, responding to availableland area, land typography, and required densities. TheHDPO hires new architects through a competitionsystem to avoid monotony between sites.THE ARRANGEMENT OF THE SPACEON A CONDOMINIUM SITE SHOULDACCOMMODATE NOT ONLY GREENAREAS BUT ALSO SCHOOLS,PLAYGROUNDS, AND COMMERCIALHUBS – SPACES WHICH CANPROVIDE ENOUGH REVENUE TOSUBSIDISE THE HOUSING. THISWOULD CREATE A MIXED-USENEIGHBOURHOOD WHICH SERVESITS COMMUNITY AND, MOSTIMPORTANTLY, AVOIDS DISPLACINGPEOPLE SOCIALLY 5 .Figure 17: Condominium models at the HDPOHeadquarters.The condominium blocks are constructed from a frameof reinforced concrete (a mix of in-situ and pre-cast)with masonry infill walls, plastered both inside and out.Units are handed to beneficiaries with skim concretefloors to reduce costs for the government. Windows anddoors are made from metal frames with single glazing.The modular design reduces construction times andallows for the repetition and adaptation of designs acrossprojects. The design utilises standard sizes of materialstherefore reducing costs further (for instance standardhollow brick dimensions are kept to remove the need forcutting them to size).The Government also explored prefabricated walls fittedwith PVC windows and doors, as used in a Chineseinitiative and has utilised pre-cast concrete elements topromote cost efficiency and time-saving constructionon-site to help to achieve the target construction time ofbetween one and one-and-a-half years per condominiumsite. The housing programme was the first in EthiopiaTable 4: Breakdown of unit typologies in each condominium blockUnit type Floor area (m 2 ) Percentage in each blockStudio 45 20Condominium Housing in ethiopia21

Figure 18: Bole Summit under constructionAddis Ababa. © UN-HABITAT/ Katherine HegabFigure 19: Finished condominiums in MikililandMikililand, Addis Ababa © UN-HABITAT/ Katherine Hegabto employ pre-cast concrete for beams, floor-slabs andin some designs, internal staircases. The blocks have apredicted lifespan of 100 years. The seismic capacity ofthe designs are tested and verified using a computerisedearthquake simulation tool.Commercial unitsTen per cent of each condominium site is allocated tocommercial purposes, primarily small shops located atground level but also plots of land for commercial use.The commercial units are sold, not rented, and the plotsof land for commercial use are leased. These commercialunits are small shops, restaurants, pharmacies, salonsand music shops. Although there are no restrictions oncommercial activities, the units are not appropriatelysized for large-scale industrial enterprises and thereforecan only accommodate small businesses which do notrequire special spaces or service provision.The provision of commercial units aims to ensure mixeduseoccupation of condominium sites, which haveseveral benefits over purely residential developments.With as many as 10,000 households living on onecondominium site (e.g. Jemo site), the commercial unitscapture important revenue from these residents as wellas offering the convenience for residents to shop locally,reducing travel distances to obtain their shopping,for instance foodstuffs and related weekly necessities.Likewise, the food outlets and bars that occupy manycommercial units provide an array of social spacesin which people can meet. Another key reason forthe inclusion of commercial units was their ability toencourage activity on site at all times of the day and night,and therefore increase security and decrease the chancesof unsociable activity, such as burglary, as people arecontinuously moving around buildings. Furthermore,as already noted, the commercial units are beneficial asthey reduce the purchase price of condominium unitsfor beneficiaries through cross-subsidisation betweencommercial units and housing units.Both commercial units and land leases for plots of landfor commercial use are sold by auction. These land-leaseauctions happen every 15 days and momentum andinterest in the plots is heightened by regular marketingon the television and radio. Prospective purchasersvisit the site and can then bid at the auction. Once theauction winners are decided, they sign an agreementwith the City Administration to confirm the terms ofpayment for the site and follow all legal procedures. Thewinners of the land development auctions are permitteda land-use right of 99 years.Communal buildingsThe provision of communal buildings to condominiumsites was an attempt to respond to the cultural needs ofresidents. The function of the communal buildings isto provide a protected space for residents to performtraditional tasks such as slaughtering goats, handwashinglaundry, and cooking extensive meals: activitiesthe housing units themselves cannot accommodate.They are typically freestanding masonry buildings locatedin the open courtyards created by the condominiumblocks.22the condominium housing programme in ethiopia

Figure 20. Condominium Block Typical Floor Plan, SNNPR. MH EngineeringCondominium Housing in ethiopia23

Figure 21. Condominium Block Elevation, SNNPR. MH EngineeringAlthough the provision of communal units is wellintentioned, the post-occupation management of thecommunal buildings has proven problematic and thereremains no overall coherent programme approach.Initially, the price of the communal buildings was notincluded in the unit purchase price, which has createdaccessibility and use problems as will be discussed inTHE PROVISION OF COMMERCIALUNITS AIMS TO ENSURE MIXED-USEOCCUPATION OF CONDOMINIUMSITES, WHICH HAVE SEVERALBENEFITS OVER PURELY RESIDENTIALDEVELOPMENTS.Part Three. At present, however, the cost of communalbuildings is included in the unit purchase price, asevidenced in Gotera and Gofa sites. Unfortunately, onsome project sites communal building provision hasceased in an effort to reduce construction costs.Resident demand for communal buildings is high.On sites containing too few communal buildings, theresidents themselves have started to construct them, eventhough this practice is forbidden by the government andit is likely these buildings will eventually be demolished.A number of residents’ associations have since boughttheir communal buildings from the Government. InArada region alone, 23 communal buildings have beensold to Housing Associations composed of condominiumresidents.Costing, quantity surveying and constructionThe programme has tight costing and quantity surveyingmechanisms that aim to minimize constructioncosts. The MWUD are responsible for purchasing allconstruction materials, in bulk and therefore at lowprices. Contractors are engaged on fixed-cost contracts,which reduce the burden of soliciting for, receiving, andchoosing tenders for each job. The material requirementsfor each condominium block are calculated and theexact material quantities are given to contractors. Thiscentralized system minimizes wastage, helps to keeprecords for material supplies and distribution, andenables any surplus materials to be used on other sites.These mechanisms give greater certainty of the final costof construction.Infrastructure provision and servicingThe city administration coordinates and finances theconstruction of infrastructure and services. Infrastructureelements include the roads, car parks, footpaths andgrass areas and services are water, electricity, and mainssewerageconnection for each unit.24the condominium housing programme in ethiopia

Figure 22. Condominium sites include commercial units at ground level in an effort to create mixed-use environments.Mikililand condominium site, Addis Ababa. © UN-HABITAT / Katherine HegabOn early project sites, for instance Bole Gerji, roads werethe final element to be built so as to reduce damage tothem by heavy machinery during condominium blockconstruction. However, this created major delays inproject completion and now infrastructure is plannedand implemented much earlier in the construction phase,concurrent with condominium block construction.Furthermore, electricity and water companies delayprojects with their disorganisation and limited resourceswhich are unable to deal with the large-scale city-widedemands. One major infrastructure challenge facingthe programme is the inadequate and small-scope of theAddis Ababa sewerage system. The horizontal expansionof Addis Ababa, particularly along the south-west andnorth-east regions of the city, has increased the cost ofinfrastructure provision and services on sites locatedin these locations. These increased costs have placedstrain on the financial viability of these individualcondominium projects.Once the units are occupied residents pay for their waterand electricity services.They enter into a contract with the service providers andshould they fail to keep on top of payments water andelectricity can be cut off.The post-occupancy maintenance of private andcommunal areas is the responsibility of the residents,THE PROVISION OF COMMUNALBUILDINGS TO CONDOMINIUM SITESWAS AN ATTEMPT TO RESPONDTO THE CULTURAL NEEDS OFRESIDENTS. THE FUNCTION OFTHE COMMUNAL BUILDINGS ISTO PROVIDE A PROTECTED SPACEFOR RESIDENTS TO PERFORMTRADITIONAL TASKS SUCH ASSLAUGHTERING GOATS, HAND-WASHING LAUNDRY, AND COOKINGEXTENSIVE MEALS: ACTIVITIESTHE HOUSING UNITS THEMSELVESCANNOT ACCOMMODATE.who are responsible for maintaining service fittings(toilets, showers, basins) within their units. To this end, awritten information guide has been produced by the cityadministration department for condominium residentsoutlining how to undertake simple maintenance onfixtures (such as sink drains) 7 . The government takes noresponsibility for the maintenance of the units once theyare occupied. In some projects, residents contribute a setamount of money to a kitty each month to cover the payCondominium Housing in ethiopia25

30 per cent of units are allocated to women. There are nospecial provisions for the elderly of disabled, although iftheir name is drawn in the lottery they have first choice inchoosing a ground floor condominium. Presently, thereis no income verification system in place, but lotteryentrants must be able to prove that they have lived inAddis for at least 6 months (decreased from the 2 yearperiod initially set) and that they do not presently ownproperty. In 2005, 453,000 applicants registered to beentered into the lottery draw for the chance of receivinga condominium unit.Figure 23. A communal unit in Bole Summit, Addis Ababa.© UN-HABITAT/ Katherine Hegabof a caretaker but in other projects no-one maintains thecommunal areas.Target beneficiaries and unit allocationThe different unit sizes were envisaged to suit householdsof differing income levels. Table 5 outlines the initial (in2006) unit costs and target beneficiaries (according totheir income). The studio unit was targeted at the lowestincome group, with an average monthly income of ETB300 (USD 23) (Table 5).Because demand for housing units far exceeds supply,housing units are allocated through a computer-basedlottery system. Lottery registration forms are distributedat public locations within Addis Ababa, HDPO subofficesin the sub-cities of the capital. Once applicantscollect these forms and fill them out, they return theforms to the HDPO for input into a database specificallydesigned to receive and organise lottery entrants.When registering for the lottery, applicants choose whichcondominium site, Sub-city and unit type they prefer.The lottery takes place in a public meeting spaceand attendance is open to anyone who is interested.Admittance is open and free. First, the 30 per cent quotais drawn for women, then the remanding 70 per cent formen and women together. Extra numbers are drawn tocompose a waiting list, as inevitably previously allocatedunits become available because beneficiaries who cannotafford the down-payment drop out.The lottery system was implemented following criticismof the allocation of the first condominium project, inwhich certain groups were seen to be favoured ratherthan the low-income target population. The programmerestricts the resale of condominium units, withbeneficiaries not allowed to re-sell their condominiumfor five years from the date of taking over the property.The programme places special emphasis on minimizingdisruption to residents affected by condominiumdevelopment. The programme makes provision forthose who have had to leave their former home forcondominium development and there is a dedicatedoffice in the City Administration who deals specificallywith relocation. People living in sites that are tobe re-developed are given the option to acquire acondominium house in the same location. They arenot put through the lottery process but get allocated acondo automatically provided they can afford the downpayment. Furthermore, it is written in law that thoseTable 5: Unit type and beneficiary income levelUnit typeMonthly income in ETB(USD)Average price (m2)in ETB (USD)Selling pricein ETB (USD)Studio 300 (23) 800 (62) 16,000 (1,230)1 Bedroom 600 (46) 900 (69) 18-27,000 (1,380-2,070)2 Bedroom 1,200 (92) 1,100 (85) 33-50,000 (2,530-16,660)3 bedroom 1,800 (138) 1,200 (92) >50,000 (16,660)Source: Haregewoin, Y. (2007) Integrated Housing Development Programs for Urban Poverty Alleviation and Sustainable Development (The Case ofAddis Ababa). Proceedings, European Network for Housing Research 2007: Sustainable Urban Areas. Rotterdam, 25-28 June 2007. p.13.26the condominium housing programme in ethiopia

currently living in an inner-city area will be given acondominium still within the inner-city.2.3 Project DesignHaving outlined the programme as a whole, this sectionpresents the specific aspects of the individual projects.After giving an overview of the projects undertaken todate, this section demonstrates the process from initialsite selection to occupation for each project.2.3.1 An overview of projectsFigure 24 illustrates the national distribution of IHDPprojects. By far the majority of projects have beenundertaken in Addis Ababa. To date there have been atotal of 78,000 units built in Addis Ababa, located acrossmore than 100 project sites. In Addis Ababa projectsrange in size, from small ones in the sub-city of Akakithat have under 300 units 8 , to the largest one on Jemosite, which is split into three zones, Jemo I, Jemo II andJemo III, with a combined total of over 10,000 units.The next largest city, Dire Dawa, has only had 2,838units built.The first era of the Integrated Housing DevelopmentProgramme is yet to be finished - 30,000 housing unitsare still to be transferred and by the end of 2010, another30,000 units are intended to be completed. Plans havebeen made to prolong the condominium developmentin Ethiopia for another five years, starting with the newlyselected condominium site of Basha Wolde Chilot areain Arada District.2.3.2 Project design and implementationEach condominium project follows a similarprocess. A generalised overview of project design andimplementation steps for projects in Addis Ababa isprovided below. The length of time each stage takesvaries greatly across condominium sites.1. Addis Ababa City Administration selects andsurveys potential site2. Request for approval put forward to the LandBoard3. Apply for Government bonds from CBE4. HDPO competition released for site masterplan5. Shortlisted entrants develop design6. Presentation of designs to stakeholders with awinner selected7. Design amendments made by HDPO8. Construction contractor vacancies released9. HDPO hires contractors and sub-contractors10. Condominium construction commences (firstconstruction of houses, then infrastructure)11. When construction is 80 per cent complete,lottery registration opens12. Lottery draw and results dissemination13. Winners have one month to claim condo/complete Form 03.14. They then pay down payment to CBE and signGeneral Agreement with HDPO15. General Agreement sent to CBE and LandAuthority16. Construction complete17. Keys given to beneficiaries.Site selectionInitial site investigations are based on the 1997 AddisAbaba master plan, where potential sites are considered interms of providing suitable settings for the constructionof new buildings and analysis of the existing green- andbrown-field sites. Consultants are hired to conducta series of detailed studies on the area including thecarrying capacity of the site; the local environmentalaspects; the existing water supply and access roads; anyexisting pollutants and their potential relocation; thecommunity’s desire for condominiums; and the physicaland economic frameworks that exist. Consultants alsolook at the impact a large-scale residential developmentwould have on the existing social structure of the area. Ifthe studies conclude the site is suitable for condominiumdevelopment, a request is forwarded to the Land Board,headed by the Mayor of Addis Ababa, to secure the landfor a condominium project.Despite one of the IHDP’s main objectives being tocarry out slum upgrading, so far the implementationof the programme in Addis Ababa as much as possiblehas been carried out in open spaces or on grounds upto-thenreserved for purposes other than housing. Themajor reason for this approach has been to avoid thesocial costs of slum clearance inflicted on residents.Nonetheless, inner city redevelopment is a necessityand, Bole Summit, nearing completion, will be the lastof the peripheral condominium projects built. One ofthe limits the Government has enforced is to restrictall house-building under the new policy to within theexisting city boundary. The purpose is to apply compactcity urban planning to reduce the financial strain of thebuilding of infrastructure; and with infrastructure costsremaining high in Addis Ababa, with sewerage systemcurrently only covering 3 percent of the city’s area, thiswould not be something to encourage.Condominium Housing in ethiopia27

Tigray region: Mekele - 12 towns, 9,624 units, 5,812 transferredAfar region: Semara - 200 unitsAmhara region: Bahrdar - 12 towns, 20,314 units, 5,812 transferredBenshangul gumz region: Asosa - 42 unitsDire Dawa City: 2,838 units, 877 transferredAddis Ababa City: 78,000 units, 53,000 transferredHarari region: Harar - 2,445 units, 1,052 transferredSomali region: Jijga - Planning stageGambela region: Planning stageSNNPR: Hawasa - 12 towns, 11,624 units, 3,087 transferredOromiya region: 17 towns, 22,834 units, 5,817 transferredFigure 24: National distribution of condominium projects across the nine regional states of Ethiopia.Preliminary site and housing unit designThe HDPO opens a competition to design the masterplan for the site. Although the housing block designsare largely set (in terms of unit types, number of storeys,etc) the competition is for the site design, the layout ofthe blocks, communal buildings, and open spaces onthe site. Entrants are short-listed and then develop thedesign. The schemes are presented to a review groupincluding private consultant and government architectsand amendments are made based on their comments.In Addis Ababa final design changes are made in theHDPO, but the organisation of the construction processhappens in the ten HDPO sub-branches located in thesub-cities of Addis Ababa.Land clearance, compensation, temporary resettlementOn green- and brown-field sites compensation andresettlement is not an issue. If the proposed developmentsite is occupied by kebele housing, the project aims toundertake wide and open consultation with existingresidents on plans for condominium development.Households that are to be relocated to make way forcondominium development are either:resettled (in another kebele), compensated, or they getfirst option for a new condominium unit on this site.If they are to buy a condominium unit on the same sitethey are given temporary accommodation in makeshifttimber and iron sheds in another location while thecondominium blocks are built.Construction contractor engagementIn order to be contracted for work on condominiumprojects, construction companies must register with theMinistry of Works and Urban Development. There arecontrols on which companies can work. Constructioncompanies are graded in terms of their experience: Grade6 is the highest and indicated significant experience. Tosecure a condominium block contract the minimumis Grade 5. The previous requirement that contractorsHOUSEHOLDS THAT ARE TO BERELOCATED TO MAKE WAY FORCONDOMINIUM DEVELOPMENT AREEITHER: RESETTLED (IN ANOTHERKEBELE), COMPENSATED, OR THEYGET FIRST OPTION FOR A NEWCONDOMINIUM UNIT ON THIS SITE.had to have 12 years experience was inhibiting and wastherefore reduced to four years. Engineers need threeyears experience to be contracted for IHDP work.Construction contractors are specifically hired to buildthe structure of each block. The task of fitting out thebuildings, including the plumbing and electricity worksand the application of finishes, is given to sub-contractors28the condominium housing programme in ethiopia

Figure 25: Lideta site being cleared.© UN-HABITAT/ Katherine HegabFigure 26: Construction of Bole Summit, Addis Ababa.© UN-HABITAT/ Katherine Hegabconsisting of Micro and Small Enterprises (MSE). Thissub-contraction of smaller tasks is done in an effort toenable the capacity and development of MSEs, to keepa tighter control on costs, and increase competition thataims to improve construction quality. Consultants arehired to oversee construction and maintain constructionquality.The HDPO acts as the project manager of each project.It allocates portions of each project to individualcontractors. The selected contractors visit the HDPOto analyse the specifications and decide whether theywill accept the fixed-cost for the job offered to them bythe Government. Once the HDPO and the contractorscome to an agreement on the fixed price of the projectand a bill of quantities, the contractor’s final step is toprovide the HDPO with written confirmation of theiragreement.Differently graded contractors are allocated theconstruction of different percentages of the housingblocks on-site. Grade 6 contractors are often given onlytwo blocks; Grade 5 contractors are given three blocks;and Grade 4 contractors are given four blocks.Construction stageA central feature of the projects is the centrally sourcedand distributed building materials. The Ministrypurchases all materials (cement, reinforcing bar,electricity and sanitation equipment, etc.) in bulk in aneffort to reduce the cost and control quality. This meansthat there is less risk for contractors of material cost overruns.Construction quality is monitored by consultants,who conduct on-site checks. New contractors can behired if quality levels slacken.Unit allocation and transferWhen construction work is 80 percent complete,registration for the lottery opens and the lottery isconducted, as per the process described above. Resultsare published on the internet, in newspapers and onkebele information boards.When beneficiaries come forward, they must sign ‘Form03’ at the branch Housing Transfer and AdministrationOffice as a form of contract with the office for the firststage of the transfer. Depending on whether or not theydecide to take advantage of the bank loan available tothem, they must take this form to the Commercial Bankof Ethiopia to make their claim. This form presents thebank with proof that a contract has been made betweenthe beneficiary and the HDPO following successfulselection from the lottery, and calls for the family’spayment of the 20 percent down-payment. Once paid,the bank issues the family with a receipt which they mustdeliver to the HDPO along with Form 03 to initiate thesigning of the title deed.The HDPO presents the General Agreement to thebeneficiary and following their signing of this documentit is dispatched to the land administration and sent tothe Bank. Beneficiaries must also pay ETB 200 (USD15) for land administration charges and a 1.03 per centcharge for stamp tax of the total amount of their loan.Commercial Bank of Ethiopia signs the loan agreementbetween themselves and their customer and this formis sent to the sub-city office where the house keys canthen be issued. In many cases, residents move into theircondominium blocks before construction finishing workis completed to prevent the theft of facilities.Condominium Housing in ethiopia29

Box 2: Dallol General ConstructionThe small enterprise of Dallol General Constructionwas established in 2007, through the government-ledMicro and Small Enterprise Development Programme.Having seen an advertisement in the local newspaperfor a condominium sub-contractor, and being granteda loan from the Credit and Savings Bank and MicroFinance Institution of the Government 9 , the companyapplied to the HDPO for the advertised position. Theywere subsequently contracted to build the externalstaircases of all buildings on one a condominium site.Once the company’s capital exceeded the ETB halfmillion(USD 38,400) cap put on the Government’sMSE Development Programme, they found themselvesin a position to operate on the more competitivemarket of the private sector building industry withoutthe need for Government support.Box 3: Misrak Chora General ConstructionPost-occupancy stageOnce residents move in, the project is deemed complete.As many post-occupancy issues have arisen, however, twowritten guides have been prepared by the HDPO to helpresidents adjust to life in condominium housing. Thefirst guide is the code of conduct; the second outlineshow to carry out basic maintenance on the units. Apartfrom this, there is no government monitoring andevaluation of the projects.Rubbish collection is organized as door to door collection.Pre-collectors are usually youth cooperatives or MSEwhich are paid by the Kebele administration. They carrythe rubbish to collection point in the neighborhood,usually big open containers. The containers are collectedby trucks and transported to the landfill site. The costsare paid by the unit owners together with the waterbill. On some sites, however, rubbish collection has notbeen organized, which creates problems for the ongoinghygiene and appearance of condominium sites.Misrak Chora General Construction was anothercompany to have benefited from the MSE scheme.They started off as 12 graduates from the technicaland vocational training colleges of Addis Ababa withthe common goal of creating a successful constructionbusiness. In 2005, the enterprise joined the MSEDevelopment Programme and established links withthe HDPO and the IHDP. The company was hired topartake in a number of condominium constructionsites and “as a result, received technical training andfully-serviced free-land.” 10 The company receivedso much work that they had to employ a further 20full-time staff members and 40 daily labourers andthough they started with only ETB 1,000 (USD 76) toinvest into simple tools, they have now accumulateda capital of ETB 2 million (USD 153,000) which hasafforded them sophisticated construction machinery.They also benefited from the Government’s tax-freeallocation of imported dump-trucks to strengthen theconstruction industry by submitting an application tothe MWUD and receiving two trucks in return. Onedaily labourer working for Misrak Chora says thatbeing employed has given him the opportunity tomove out and become independent 11 . This gentlemanearns ETB 19 (USD 1.4) per day working as a dailylabourer and a small amount by night working asa security guard so that he may earn his monthlysalary of ETB 300 (USD 23). These wages are simplytoo small to create any comfortable lifestyle or roomfor investment, and demonstrate that there are stillcrucial gaps in the employment sector that need to beaddressed.Figure 27: Quality checks on building materials arecrucial to ensure a high-quality result. Lideta, AddisAbaba. © UN-HABITAT/ Katherine HegabFigure 28: Workman applying plaster to the first-storeyof a condominium block. Bole Summit, Addis Ababa.© UN-HABITAT/ Katherine Hegab30the condominium housing programme in ethiopia

2.4 Case studiesTwo case studies are presented here to give a descriptiveoverview of how the IHDP projects are implemented.They are from different points in time and thereforedifferent stages in the IHDP: Bole Gerji was a relativelysmall pilot project on a brown-field site and led by GTZand Lideta was an inner-city upgrading project that wasthe first project to use a ground floor plus seven storeys(G+7) condominium typology.Bole Gerji – the condominium pilot projectBole Gerji in Addis Ababa was the first condominiumproject to be constructed in Ethiopia. It was initiated byGTZ and the Addis Ababa City Administration in 2002,following a request from the Mayor. The first masterplan for the design of the project was drawn by renownedarchitect Fasil Giorgis and accommodated 750 housingunits, composed of studios, 1 and 2-bedroom typologies;an office building and several commercial units. Thescheme was the first major building project in AddisAbaba to introduce sub-contractors which, in turn,avoided the formation of stack-profits. During its launchFigure 29: Lottery winners are announced around the cityHDPO Headquarters, Addis Ababa. © UN-HABITAT/ Katherine Hegabin 2004, GTZ was the managing agent for the Bole Gerjisite working on behalf of the City Government in theirhiring of contractors and daily labourers, who weredirectly employed by GTZ.As the project was the first of its kind in Ethiopia, itreceived considerable support for its constructionand major work was completed in a stint of eightmonths, although some elements remained unfinished.Government agencies had been responsible for thedelivery of the water supply and electricity so as to reducecosts further, but these bodies proved to be inefficient.External plastering was not carried out before it was timeFigure 30: Accumulated rubbish adjacent to condominiumbuildings Mikililand condominium site, Addis Ababa.© UN-HABITAT/ Katherine Hegabfor residents to move in and, as a result, the exposedwalls suffered from weathering. Internal walls withineach unit remained absent of plaster to keep costs to aminimum, so people undertook the role of plasteringthe internal surfaces themselves. Unfortunately, theyfollowed this by pouring the plaster residue onto theGTZ-landscaping and killing many of the flowers.Since the condominiums were transferred, they havebeen criticised for their substandard quality and lack ofsynchronisation between separate construction eventsat the time of their erection. However, the governmentsay they have learned from their mistakes at Bole Gerjiand amongst their new moves, they have made it arequirement to plaster all houses both internally andexternally on future project sites. As this was the PilotProject, the lottery draw system of condominiumallocation had not been established and most units werenot distributed at random; instead they were given toGovernment employees already living in Gerji, andbusinessmen, architects and lawyers.Community groups have been self-formed and betweenthemselves, residents plastered and painted theircommunal parts, planted new pockets of landscapingand organised the security gate separating the site fromthe main road.Lideta – the first inner-city relocation project in AddisAbabaOne of the challenges faced by the programme regardingthe introduction of new condominium developmentsto Addis Ababa has been in the scarcity of empty land.Once all of the Government-owned brown-field sites inCondominium Housing in ethiopia31

the inner city were developed and the periphery of thecapital had been exploited, the city government decidedto focus their efforts on the existing city of Addis Ababa.They began a dialogue to redevelop pockets of the city’sinformal settlements and the Lideta area is the first of fiveoccupied sites to be re-developed by the programme. Itis, therefore, a pilot project for inner city redevelopmentbased on the resettlement of a significant proportion ofthe population. Like much of the city, Lideta did notcontain any formal sewage system or latrines as it wasprimarily an unplanned, densely populated settlement.The 26 hectare site of Lideta contained 1,070 existinghouseholds and up to 6,000 people living within them.Between them, these families inhabited 932 Kebelehouses, 323 privately-owned houses and 55 housingadministration houses. There were also 11 existinggovernment and religious buildings on site, including aprotestant church, which had to be relocated, althoughit was possible to maintain Lideta School on-site. Onsuch a central site as Lideta it was deemed importantto maximize the value of the land and thereforecondominium blocks had to be at least 7-storeys high.The Local Development Plan for Lideta was launched on6 May 2009 and proposed the following site allocation:1 ha of land was specifically allocated to green space forresidents; 2 ha of land were assigned for social services;3 ha of land were provided for allocation to privatehomeowners whose houses had to be demolished; anarea of 5 ha was designated to multi-use facilities; 2 hawere designated to the building of infrastructure; 4 hawere set aside for commercial purposes; and 8 ha wereallocated to condominium development.An assembly took place in March 2009, to give thegovernment the opportunity to meet the community ofLideta and inform them of their plans to redevelop thesite, explaining what was going to happen and how itwas going to be achieved. They also used the occasionto ask current residents to leave their homes in Lidetain exchange for a government-provided residence orplot of land elsewhere. Lideta residents interviewed byUN-HABITAT said that government representativescarried out five rounds of consultations with residentsof Lideta over a period of four months to overcomeresistance to their plans, although according to StateMinister Arkebe, the consultation process betweenLideta residents and Government representatives tookalmost two years to convince those living on-site ofthe benefits that were to come. He declared that “noupgrading programme can be done without the consensus ofthe community. Participation of the community should bethe basis of slum upgrading.”To gain the support of the existing community, the cityadministration had to propose a number of incentiveswhich they presented to residents:Option A: Kebele tenants receive condominium units inLideta or elsewhereThose living in Kebele housing were offered a newcondominium by the government if they could affordthe 20 percent down-payment. 47 percent of Kebeleoccupants made the choice to be relocated to a twobedroomcondominium elsewhere despite the strugglethey anticipated in affording their monthly payments. Tohelp these families with their potential financial burden,the government gave Kebele residents the opportunity topay the 20 percent down payment in three stages.Moreover, the Government approached an NGOcalled the Network of Ethiopian Women’s Associationto request the provision of some form of financialsupport for 200 women-headed-households of Lidetawho could not afford to pay the down-payment for acondominium. Through fundraising, the NGO securedETB 800,000 (USD 61,500) for the 200 women, whereETB 300,000 (USD 23,000) was used for the downpaymentof studios for each woman and the remainingETB 500,000 (USD 38,500) was used as a start-upcapital to help the women set up their own businessesand small-scale enterprises. The women were giventraining in skills they could use to gain employment inthe future, such as brick-making and bread-making, andthe products manufactured from this training were soldback to the construction companies working on Lidetato generate money to pay back to the NGO for the loan.The women were also organised into a cooperative toensure the fair distribution of funds between themselves.This has been the only intervention by an NGO so farfor Lideta.The city government also agreed to pay one year’s rentfor each household that agreed to temporarily moveoutside of Lideta, during the construction of Lideta’scondominiums, as there would be a condominiumproperty available in Lideta for each of these householdsthereafter. According to Mr. Tsegaye, “it is written inlaw that those currently living in inner city areas will begiven a condominium still within the city,” should theybe asked to move for condominium development.In fact, out of the 650 households who were happy toaccept condominium units elsewhere, only 11 havechosen to move back to Lideta, once construction iscompleted.32the condominium housing programme in ethiopia

Option B: Kebele tenants are allocated other Kebele unitswithin the same district420 households could not afford to purchase acondominium unit and have chosen to accept anotherKebele house within the same district. The vacantKebeles offered to such families are assessed in advanceby a technical committee within the HDPO to decidewhether or not they are in habitable condition. If theyare not, they will not be selected for the resettlement ofhouseholds displaced by condominium construction.However, if they are, the houses are registered andreported back to the Kebele Administration so thatthey can be allocated to affected households. A separatelottery draw takes places for the households opting to bere-housed to another Kebele. If selected, a household caninspect the condition of the Kebele house and dependingon its condition, can claim for refurbishment expenses orwait for another kebele unit to become available shouldthey decide that it is not in an adequate condition. Ifthey are happy with the conditions of their new Kebele,the head of household signs a rental agreement with theKebele Administration.Option C: Owners of private houses receive compensationand an alternative plotFor households living in privately-owned houses,the Administration offered to pay compensationequivalent to the value of their residence at the time ofits construction. Residents are also given the option toaccess a free plot of land equal to the size they occupiedin Lideta in an area within Nefas Silk, Lafto, AkakiKality, Bole or Kolfe.Beneficiary representatives drafted a Memorandumof Understanding with the Administration and onceapproved by both parties, it was signed to commenceLideta’s renewal, starting with a 45-day window in whichresidents had to leave their homes.Within this period, residents filled in a series of forms toindicate their preference regarding their compensation,whether it be in the form of a new condominium or theallocation of a plot of land with compensation.A total of 780 households from Lideta moved to Goterasite and Gofa and many others moved to the new subcityof Nefas Silk.The new scheme for Lideta is a mixed-use residentialdevelopment. It encompasses 25 per cent of land forprivate investors, which has been sold through the landleaseauction at prices that will further subsidise theaffordable housing on-site: Awash International Bankwill lease 2,800m 2 of land; Dashen Bank will lease2,696m 2 ; Zefran Plc will lease 987m 2 ; and Dure AbbasMohammed Plc will lease 149m 2 of land. The fifth leaseholder, who has been kept anonymous, is to occupy2,333m 2 of land with a 4-star hotel. All companies havebeen given the minimum requirement to build structuresof at least 4-storeys.The proposal for Lideta, designed by private architecturefirm TELDA Consult Plc, incorporates condominiumhousing blocks of between four and nine storeys; solarpanels; lifts; playgrounds and a number of green spaces.A total of ETB 236 million (USD 18 million) has beenput towards the development of Lideta and new residentsThe problem with the current federal law for homeownersdisplaced by condominium projects lies in the decisionas to whether or not they own the property in whichthey are living. The majority of housing in Addis Ababadoes not have a title deed as the plot size of 50 percent ofprivately-owned houses is below 75m². The governmentoffered these households a new plot of land greater than75m² to enable them to obtain a title deed and gain legalownership of their land. 44 privately-owned householdsopted for a condominium rather than taking the plot ofland.The relocation/resettlement process and the new scheme forLidetaThe five consultation meetings between residents ofLideta and the Kebele Administration were attended byalmost all Kebele residents, and during each meeting theAdministration called out the names of more than 400residents who had been drawn from Lideta’s own housinglottery to receive the next set of available condominiums.Figure 31: Labourers building the foundations forLideta condominiums Lideta, Addis Ababa.© UN-HABITAT/ Katherine HegabCondominium Housing in ethiopia33

will be able to avail of a newly built CBE branch, in closeproximity to the site so as to make beneficiaries’ monthlypayments easier to carry out on time.Critical reflection on the relocation/resettlement processAlthough the government has committed to an approachto urban renewal that is pro-poor, the views of manyaffected residents and other stakeholders UN-HABITATspoke with raise the question of whether due processwas exercised during the eviction procedure. The mostfrequent complaint from Lideta residents is that theyhave not been offered adequate compensation and werenot given adequate time to move.A closer look reveals that despite the government’s effortsto include consultation and compensation in the slumclearance and resettlement process in Lideta, there hasbeen criticism from various stakeholders. Some considerthe approach to be a ‘forced eviction’ and recommendthat certain components of the process have to besignificantly improved so that it follows due processin line with international human rights standards ingeneral and guidelines for eviction and developmentdrivendisplacement in particular.Eviction notice: Relocated residents share a commonfeeling that adequate and reasonable eviction notice wasnot given to them. According to one lawyer interviewedby Addis Fortune Magazine, the 45-day advance notice“contradicts the Ethiopian expropriation law… Theowner of an immovable property should be given noticeconcerning the expropriation of his/her house 90 daysin advance…I don’t see the legitimacy in delivering thenotice just 45 days in advance.” One family was givena longer period of time within which to organise theirdeparture as their new condominium was delayed bya year in its construction. However, when the familydelayed their move even further due to incompletefinishes of their new home, the government tookmeasures to force them from Lideta by stopping theirelectricity and water supply and giving them a warningafter a period of a further 45 days.Consultation: Residents claim that, following the firstassembly, no other consultation meeting took place.Presence of government officials or their representatives:Residents complain that no government representativesvisited the site at the time of their relocation.Provision of legal aid to persons who are in need of it toseek redress from the courts: Residents report that theywere not given legal aid despite their concern that it wasneeded.Compensation: A total of ETB 88 million (USD 6.7million) has been distributed amongst approximately300 private homeowners as compensation, but a numberof residents remain unhappy with the amount they havebeen given. This is because the compensation onlycovers the value of the house at the time of constructionand only acknowledges the roofing, walls and otherpermanent building installations. It does not considerthe investment occupants have put into the internaldecoration of their houses or the land on which it sits.The compensation has certainly not been sufficient tobuild a comparable house in another location.Assistance for physical relocation: Relocated householdscomplained that they have not found relocation easy.They had been promised support by the government inmoving their belongings from one site to the next butwere not given it.Through its accession to the International Covenant onEconomic, Social and Cultural Rights (ICESCR) on 11Jun 1993, Ethiopia has the obligation to prevent forcedevictions and, in the exceptional cases where they arejustified, to follow the procedural protection and dueprocess prescribed by the Committee on Economic,Social and Cultural Rights. For the internationallyadopted definition of ‘forced eviction’ and the prescribedprocedural protection and due process in eviction cases,see Box 4.34the condominium housing programme in ethiopia

Box 4: Forced eviction and the prescribed procedural protection and due processUnder international law, forced eviction is defined by the Committee on Economic, Social and Cultural Rights in itsGeneral Comment 7 - The right to adequate housing (Art.11.1): forced evictions 12 , as “the permanent or temporaryremoval against their will of individuals, families and/communities from the home and/or the land they occupy,without the provision of, and access to, appropriate form of legal or other protection. The prohibition on forcedevictions does not, however, apply to evictions carried out by force in accordance with the law and in conformity withthe provisions of the International Covenants on Human Rights”.In exceptional cases where eviction is considered to be justified, it should be carried out in strict compliance with therelevant provisions of international human rights law and in accordance with general principles of reasonablenessand proportionality. Appropriate procedural protection and due process which should be applied in relation to forcedevictions include:(a) an opportunity for genuine consultation with those affected;(b) adequate and reasonable notice for all affected persons prior to the scheduled date of eviction;(c) information on the proposed evictions, and, where applicable, on the alternative purpose for which the land orhousing is to be used, to be made available in reasonable time to all those affected;(d) especially where groups of people are involved, government officials or their representatives to be present duringan eviction;(e) all persons carrying out the eviction to be properly identified;(f) evictions not to take place in particularly bad weather or at night unless the affected persons consent otherwise;(g) provision of legal remedies; and(h) provision, where possible, of legal aid to persons who are in need of it to seek redress from the courts.Evictions should not result in individuals being rendered homeless or vulnerable to the violation of other human rights.Where those affected are unable to provide for themselves, the State party must take all appropriate measures, to themaximum of its available resources, to ensure that adequate alternative housing, resettlement or access to productiveland, as the case may be, is available. All the individuals concerned have a right to adequate compensation for anyproperty, both personal and real, which is affected.More detailed guidance on displacement is provided in the “Basic Principles and Guidelines on Development-BasedEvictions and Displacement”, developed by the Special Rapporteur on adequate housing as a component of the rightto an adequate standard of living. 13 The document is available at: http://www2.ohchr.org/english/issues/housing/docs/guidelines_en.pdfCondominium Housing in ethiopia35

36Figure 32: The latest condominium project under construction and the last one to bebuilt on the edge of the city: Bole Summit, Addis Ababa. © UN-HABITAT / Katherine Hegab

ProgrammePerformance3.1 Anticipated results andachievementsThere are three main areas that the programme aimedto address and in which achievements have been made:(i) the programme has made a positive impact on thecountry; (ii) it is of a large scale and produces units atvery low cost; and (iii) achieves a physical improvementin the housing and urban environment.3Impact on countryThe IHDP has had a major positive impact on thecapacity of the following four sectors of the country:construction, skilled-labour, the manufacturing industry,and transportation.Despite producing only half the target number ofaffordable housing units in Ethiopia, EthiopianGovernment officials suggest that the programme hascontributed to a GDP growth rate of 11.5 per cent. Ithas created 176,000 new jobs and significantly increasedthe technical capacity of the construction sector. Aswell, the quantity and capacity of micro- and smallenterpriseshas increased producing direct employmentand economic benefits at ground-level.Following its implementation in Addis Ababa, there havebeen a number of important results for city dwellers: thecost of rent for a dwelling has nationally decreased; thehousing shortage has been stemmed; the provision ofpublic services for citizens has increased and greater jobopportunities are available to the youth of Addis Ababa.chapter threePROGRAMME PERFOMANCEContents3.1 Anticipated results andachievements3.2 Unanticipated results andachievements3.3 Unanticipated challengesfacing the programmeLarge scale and low costA significant number of units have been built: 171,000thousand units, representing 2,850 units per month,12 units per working hour. In many countries thiswould be a significant achievement, but it is especiallysignificant for Ethiopia considering the relatively youngconstruction and financial sectors and previously lowcapacity to deliver housing at such a large scale asoutlined in Part One.The programme has achieved its goal of deliveringhousing at low cost. In fact, the costs are extremely low,with units costing around ETB 1,000 (USD 77) perm 2 , whereas if private contractors constructed them onthe free market they would cost ETB 2,500 (USD 193)per m 2 1 .Condominium Housing programme: ethiopia 37

THERE ARE THREE MAIN AREASIN WHICH ACHIEVEMENTS HAVEBEEN MADE: (I) THE PROGRAMMEHAS MADE A POSITIVE ECONOMICIMPACT ON THE COUNTRY; (II)IT IS OF A LARGE SCALE ANDPRODUCES UNITS AT A LOW COST;AND (III) ACHIEVES A PHYSICALIMPROVEMENT IN THE HOUSINGAND URBAN ENVIRONMENT.demand is composed of effective demand by those whohave the required down-payment and ability to servicethe monthly mortgage, and ‘aspiration’ demand by thosewho want to own a unit but do not have savings to meetthe down-payment.The demand results from attractiveness of thecondominium units to low- and middle-incomeEthiopians, predominantly those living in Addis Ababa,since unit ownership offers the opportunity to notonly improve one’s housing conditions but also to takeadvantage of the wealth generation opportunity whichowing a unit provides, with the unit being an extremelysecure private asset.Urban and housing developmentThe programme has achieved several housing and urbandevelopment aims. Residents that have moved intocondominium housing have a greatly improved physicalenvironment compared with their previous housing.All units have basic services and infrastructure and unitowners have security of tenure.Inner city condominium projects, for instance Lideta,are aimed at achieving the urban development goals ofcompact urban growth, densification of economicallyvaluable urban land, and regenerating deteriorated areasof Addis Ababa.3.2 Unanticipated results andachievementsIn addition to the aforementioned anticipatedachievements, the programme has achievements that werenot anticipated yet contribute to its accomplishments.There are three main unexpected achievements: (i) highdemand and support for the programme; (ii) the creationof many low-income landlords; and (iii) positive changesto the rental housing market.High demand and support for the programmeUpon launching the programme the governmentwas confronted with extremely high demand forhousing units, which they did not anticipate. Whenthe government first offered units in 2004,around450,000 people registered in the hope of securing acondominium unit. The high demand has continuedthroughout the programmes’ five year life so far. TheLow-income landlordsAn anticipated beneficial outcome of condominiumhousing is that it creates homeowners. A parallelunanticipated outcome is that many unit owners havebecome landlords since they move out of their unit andrent it to another household. Unit owners that are unableto service the required monthly mortgage repaymentshave chosen to privately rent out their unit, ratherthan risk loosing it through foreclosure by the bank. Ashouseholds cannot legally sell their unit for five yearsfrom the date of purchase, renting is an attractive option.Ironically, most condominium unit landlords are thevery low-income households and many of these landlordswere previously unemployed. There are no legal or localcommunity administration restrictions on this strategyand no checks made on unit occupation. It is financiallyadvantageous for unit owners to rent out their property,with rental charges more than covering the mortgagerepayments.The government appears to support condominiumhomeownership becoming a tool by which beneficiariescan generate substantial income through renting outtheir condominium, moving into a cheaper rental placeand using the access rental income for income-generatingor other productive activities. Thus, condominiumownership has turned into an effective poverty reductionstrategy. While exact figures are not available, recentGovernment estimates suggest that in total up to 70percent of homeowners rent out their condominium(either the whole unit or a part of their unit in whichthey continue to occupy) to increase their income toease the struggle of paying back their bank loan, and/orreceive a regular income.38PROGRAMME PERFOMANCE

Figure 33: View from a communal corridor, Bole Gerji, Addis Ababa.Land and rental housing marketAs a result of the above mentioned practice, a significantsupply of rental property has been introduced in AddisAbaba that has in turn reduced the city’s market rentlevel. This has made rental options more affordable forall income sectors.The programme has reduced the number of cases ofillegal development on land in Addis Ababa and hascontributed to progress towards an improved housingmarket by legalising more of the housing supplyand increasing the number of official property titlesin circulation (in contrast to informal urbanisationprocesses). The housing market was known for being“generally inefficient” 2 and characterised by hightransaction costs, fragmentation, and imperfectinformation on market properties. Despite there being afive-year restriction on the re-selling of a condominium,findings have shown that there are a number of informalestate agents who facilitate the selling of condominiumsprior to that 5-year limitation period.3.3 Unanticipated challengesfacing the programmeIn many respects the programme is extremely successfulyet it faces five main challenges that need to beacknowledged and addressed. The first two concernbeneficiary and programme finance: the affordability ofTHE PROGRAMME HAS THREE MAINUNEXPECTED ACHIEVEMENTS:(I) HIGH DEMAND AND SUPPORTFOR THE PROGRAMME; (II) THECREATION OF MANY LOW-INCOMELANDLORDS; AND (III) POSITIVECHANGES TO THE RENTAL HOUSINGMARKET.units for low-income households and the unsustainablefinancing of the programme as a whole. The other threechallenges are beneficiary consultation and management,project specific issues (location, built environmentdesign, and construction quality), and the lack of postoccupancymanagement, monitoring and evaluation.If left unaddressed, these unanticipated challenges willjeopardize the long-term success of the programmeCondominium Housing in ethiopia39

and its ability to achieve its aims of slum reduction andprevention, economic growth, and improvement in theliving conditions of the low-income population.AffordabilityWhile the IHDP has the laudable aim of targeting thelow-income sector of the population, unfortunatelyexperience has shown that the ‘poorest of the poor’ arenot benefiting from the IHDP due to inability to affordthe initial down-payment and monthly service payments.The ‘poorest of the poor’ are primarily excluded fromsecuring a unit because they do not have the financialcapacity to pay the required down-payment. EvenWHILST THE IHDP HAS THELAUDABLE AIM OF TARGETINGTHE LOW-INCOME SECTOR OF THEPOPULATION, UNFORTUNATELYEXPERIENCE HAS SHOWN THAT THE‘POOREST OF THE POOR’ ARE NOTBENEFITING FROM THE IHDP DUE TOINABILITY TO AFFORD THE INITIALDOWN-PAYMENT.if they manage to pool resources between familyand friends to meet the down-payment (a commonapproach), if they choose to live in their unit servicingthe monthly mortgage is difficult if not impossiblebecause the majority have no stable formal employmentor income source. Furthermore, in addition to mortgagerepayments, monthly service charges such as electricitymust be paid, placing extra financial strain on alreadyeconomically challenged households. For the ‘poorestof the poor’ the increase in monthly expenditure issignificant considering the low rent and service chargespaid in previous Kebele housing. As noted above, tocope with this economic pressure many householdsmove out from their units and rent them out to middleincomepeople who can afford the monthly expenses.Alternatively, groups that have pooled resources to securea unit live in the unit together, resulting in overcrowdingthat places additional strain on households, communalareas, and infrastructure and services.The inclusion of four unit typologies was made in aneffort to address affordability but this approach wronglyassumed that unit size would relate to economiccapability; that is, the smaller and therefore cheaper unitswould be occupied by the poorest households. However,experience has shown that the poorest, who often havelarge families, do not opt for the small studio unit butthe one and two bedroom units. Overall, it appears thatthere was insufficient thought given to affordability, bothinitial down-payment affordability and the percentageof monthly income required to be allocated to housing(monthly service charges and mortgage repayments).Moreover, the programme faces a specific affordabilitychallenge in terms of gender. While special provisionto female-headed households is being addressed throughthe 30 per cent lottery allocation policy, the reality isthat there is a higher poverty level among femaleheadedhouseholds 3 . Many of the poorest householdswho cannot afford condominium housing are femaleheaded: single mothers, with little formal educationor employment. Therefore, because of the affordabilityproblems already mentioned these women and theirchildren are excluded from development plans.As described in the Lideta case study, an NGO has beeninstrumental in facilitating the down-payment for 200women in the Lideta project. Apart from this uniquecase, there are no policies, public systems or financialsupport organizations in place to facilitate increasedaccess to condominium housing for women and singlemothers’.Programme financingThe current financial approach underpinning theprogramme is unsustainable. In order to continue theprogramme and meet the ambitious completion targets,secure finance is necessary. Commencing projectsrequires considerable funding and capital outlay fromcity government finances, which are reportedly alreadyALTHOUGH SPECIAL PROVISION TOFEMALE-HEADED HOUSEHOLDSIS ADDRESSED THROUGH THE 30PER CENT LOTTERY ALLOCATIONPOLICY, THE PROGRAMME FACESAN AFFORDABILITY CHALLENGEIN TERMS OF GENDER BECAUSETHERE IS A HIGHER POVERTYLEVEL AMONG FEMALE-HEADEDHOUSEHOLDS 3 .stretched. Programme financing will be further testedin the coming years if residents and tenants cannotcontinue to meet mortgage repayments and/or thecommercial units are unsuccessful. Concerns havebeen raised regarding what city government activities40PROGRAMME PERFOMANCE

SEVERAL PROBLEMS HAVE BEENRAISED REGARDING THE LIMITEDCONSULTATION AND PARTICIPATIONPROCESSES, INADEQUATECOMPENSATION IN THE CASE OFRELOCATION, AND THE LACK OFSUPPORT FOR THE TRANSITION OFRELOCATED PEOPLE TO TEMPORARYHOUSING.have been reduced or discontinued in order to financecondominium projects which require significantamounts of financial resources. Along these lines, cautionmust be taken to grow all aspects of cities in a balancedfashion, for instance to also grow urban infrastructureand services and not only focus on isolated housingprojects.Beneficiary consultation and managementAlthough the programme makes explicit effort to consultwidely on development plans, provide compensationin the case of relocation, and support the transition ofrelocated people through temporary housing, severalproblems have been raised.Private owners have concerns regarding the low level ofcompensation provided for their property, which theyargue is below the current market value 4 . Furthermore,project evaluations indicate that the compensationprocess is not transparent and consistent, and it doesnot account for social and economic costs (for examplemoving household belongings and disruption to businessincome/livelihoods) incurred due to displacement 5 .Some have suggested that compensation was based onthe estimated value at the time of construction, whichis much lower than the current replacement value thusmaking it impossible for affected households to reestablishthemselves in housing conditions that are atleast equal to the previous ones.The temporary relocation of people into transitionalhousing is proving problematic. Unfortunately, it isoften the ‘poorest of the poor’ and most vulnerable inthese houses because they can not afford condominiumhousing 6 . Physical conditions in temporary housing areusually worse than those in Kebele housing in whichthey were living previously. Furthermore, residents oftenhave to inhabit temporary houses for a long time (6-12months), and they are scared they will be forgotten or, ifthey cannot afford the down-payment for condominiumhousing, will remain in temporary housing 7 . In addition,residents in some projects complain that insufficientnotice of relocation plans was given to residents, 45days, not the 90 as stipulated by Ethiopian law 8 , andthat government assistance in moving personal itemswas not provided even though it has been agreed aspart of the relocation deal. Further research is needed toascertain the validity and scale of these issues in practice;if it is found to be the case affected households could beconsidered as victims of forced eviction by internationalhuman rights standards.Project specific issuesPeripheral sitesThe lack of undeveloped central-city land combinedwith the initial undesirability to undertake projectsin occupied and slum areas led many projects to belocated on the periphery of Addis Ababa, which hasproven problematic for both beneficiaries’ livelihoodsand infrastructure provision. There are insufficientemployment opportunities in such locations andtransportation to access the city centre is costly andtime consuming. Furthermore, the cost of infrastructureprovision is greater on peripheral sites, which increasesthe overall project cost and in particular the cost to analready financially overstretched local government.To address this issue, the completion of Bole Summitmarks the last peripheral project and now condominiumprojects focus on inner city redevelopment sites, whereproposals are for eight storey blocks to make themfinancially viable and address the density requirements.The first of these inner city projects is Lideta.Built environment designHaving now been occupied for some time, several issuesconcerning the design of the built environment haveemerged. In particular, there are design problems interms of the responsiveness of the units and urban designto occupants’ needs and activities. Most occupants areaccustomed to living close to the ground and so adjustingto life in multi-storied apartment blocks is proving achallenge 9 .Adding to this adjustment pressure, the unit and buildingdesign does not successfully respond to occupants’lifestyles and activities. For example, customary activitiessuch as preparation of traditional injera bread andslaughtering of animals have long been acknowledged ascrucial parts of Ethiopian culture 10 .These activities require space for large ovens and openareas for slaughtering. Due to lack of space in the inCondominium Housing in ethiopia41

Figure 34: Isolated nature of condominium sites on the periphery of the city. Bole Summit, Addis Ababa .© UN-HABITAT/ Katherine Hegabthe condominium units, activities such as hand-washingand goat slaughtering are undertaken in circulationareas, which causes an inconvenience for neighbours.Functionally, many occupants feel that their kitchens aretoo small to be useful and that they are certainly toosmall for preparing larger, communal meals.Three other common grievances are the weakness ofthe electricity supply making it difficult to facilitate anelectric heater or an injera oven; the electricity junctionsthat remain un-insulated, creating a danger for children;and the inadequate water pressure on the top floor of thebuildings resulting in a noticeably weaker water supply atthis level. Furthermore, during times of water shortages,families must collect water in buckets and carry themto their flats as there are no water tanks to generate asecondary water supply in case of such emergency.In response to post-occupancy issues, an awarenesscampaign was undertaken by the Addis Ababa cityadministration consisting of a technical manualoutlining appropriate behaviours and responsibilities incondominiums. Nevertheless, there remains significantscope to improve the design of the built environment,both the units themselves and the overall masterplanning, to improve the responsiveness of the physicalenvironment to occupants’ needs, values, and lifestyles.Construction quality and delaysThe programme aims to produce low-cost but not lowqualityhousing. Nonetheless, there are concerns overthe quality of the built environment, in particular thequality of construction finishes and infrastructure. Forexample, there have been reports of burst sewerage pipesthat leaked through all floors and wide-spread crackingof wall plaster. The expected lifespan of the units is 100years, although local professionals and residents doubtthe validity of these predictions. Construction quality isaffected by micro and small enterprises seeking to makeadditional profit by using cheaper substandard fixtures,THERE REMAINS SIGNIFICANTSCOPE TO IMPROVE THE DESIGNOF THE BUILT ENVIRONMENT, BOTHTHE UNITS THEMSELVES AND THEOVERALL MASTER PLANNING, TOIMPROVE THE RESPONSIVENESS OFTHE PHYSICAL ENVIRONMENT TOOCCUPANTS’ NEEDS, VALUES, ANDLIFESTYLES.42PROGRAMME PERFOMANCE

one million tonnes of cement and iron bars from asfar away as Turkey and the Ukraine, and deal with thesurging demand of materials for condominium projects.To improve construction efficiency and reducecosts, the government is currently investigatingalternative building technologies and systems. They areconcentrating their efforts on increasing the use of localconstruction techniques and materials, and promotingprivate investment in the national production of cement,glass, and iron. Research is currently being conductedon alternative materials, in particular on the greatestchallenge: that of finding an alternative material tocement, for the partition walls of the buildings, to avoidthe delays it currently causes and to reduce costs.Figure 35: Significant improvement could be made tothe design of the built environment to improve theresponsiveness to occupant needs and lifestyles.such as doors and door handles, as well as the low levelsof construction skills and capacity, which is somewhatunderstandable considering the vast numbers of recentlyemployed inexperienced contractors and buildersnecessary for projects of this scale.Following quality issues with early condominiumprojects, consultants have been hired to carry out qualitysupervision and monitoring. Quality checks on buildingmaterials have been implemented alongside monitoringof structural frame quality, crucially important in theearthquake-zoned city of Addis Ababa.Alongside construction quality, construction delays area major issue facing the programme. The productivityof the construction phase has not been as efficient asplanned during the programme’s implementation thusfar due to gross material shortages, a lack of adequateinfrastructure, and poor construction managementdelaying completion by as much as a year on some sites.Approximately 50 per cent of condominium sites arebehind schedule because of delays in the building ofinfrastructure. The solution to this problem is to startthe construction of infrastructure prior to, or alongside,the housing units so as to avoid the delays that cause theentire development to hold up.The most significant material inefficiency has been inthe quantity of cement over the past two years. Thegovernment has commissioned the building of multiplecement factories across the country to lessen the burdenon the existing three, to reduce their imports of up toPost-occupancy issuesOne of the major challenges facing the project concernspost-occupation management and monitoring, whichhave received very little attention to date. The programmehas no systems in place for post-occupancy engagementon issues such as community cohesion, maintenance ofcommunal areas, and the establishment of communitygroups and community based management of facilities.In all projects this has resulted in significant problemswith the management of communal facilities. Thisis particularly the case with the specially designedcommunal buildings that in many projects remain unusedbecause their cost was not included in the unit purchaseprice. While some self-organized resident associationshave taken over the ownership and management of thesefacilities, the majority of them remain locked and thusunusable until agreement between residents and thegovernment is reached.Many residents have found it difficult to adjust to lifein multi-storied building and their new locations.Living in condominium housing brings certainresponsibilities and obligations to ensure harmoniousliving environment for all residents. Living in such closequarters, neighbour relations have been strained due tonoise and privacy issues. As already mentioned, a writtenguide outlining residents’ responsibilities, including suchthings as consideration of noise transfer to other units,inappropriate use of corridors for activities and storageplaces, and respect of communal areas by keeping themclean and rubbish free, has been distributed.Livelihoods have been affected because units cannotaccommodate certain income generation activities (suchas baking bread for sale), which formed a central incomesource in their previous environment, placing extrafinancial pressure on many households.Condominium Housing in ethiopia43

Figure 36: Redundant communal building on Mikili land condominium site, Addis Ababa. © UN-HABITAT/ Katherine HegabInternal construction finishing undertaken by occupants,such as tiling, can cause building maintenance issues,for example blocking drains with cement. In the BoleGerji neighbourhood residents plastered their internalsurfaces themselves but poured plaster residue on the softlandscaping, which ruined it. Since this pilot project it isnow a requirement that all condominiums are plasteredinside and outside prior to occupation.There have been operating issues with water provisionand sewerage disposal. One reason is the large scale ofthe projects that has created high demand on existinginfrastructure (especially sewerage) that is often nonexistentor of poor quality.THERE HAS BEEN INSUFFICIENTMONITORING AND EVALUATIONOF PROGRAMME PROCESSES ANDBUILT PROJECTS, INCLUDING ALLSTAKEHOLDERS BUT ESPECIALLY THEBENEFICIARIES.On the whole, there has been insufficient monitoringand evaluation of programme processes and builtprojects, including all stakeholders and especially thebeneficiaries.44PROGRAMME PERFOMANCE

conclusions4.1 Key lessonsThe Ethiopian Integrated Housing DevelopmentProgramme highlights several lessons for addressing thehousing problem. The IHDP positively demonstrates:• There is a need for strong political commitmentat all levels of administration to address lowincomehousing at a large scale.• There are many advantages to scaling upsmall housing projects to city and nationallevel programmes to reach more beneficiaries,quicker, and with a coordinated effort thatdevelops the national construction sector.• There is a need to provide tenure security soresidents feel secure to invest in (and save for)house ownership and improvement.However, the IHDP also highlights several challenges forimplementing large-scale low-cost housing projects:• Developing approaches to address thecapabilities of the ‘poorest of the poor’ whocannot afford formal condominium housing.• Enhancing the capacity of all stakeholdersinvolved, including those in the public andprivate sectors, as well as beneficiaries.• Finding cheaper ways of building to reduce theneed for cement and reinforcing bars, which arebecoming prohibitively expensive.• Considering housing quality, not just quantity.The challenge, which is far from new, is toimprove the quality (of built environmentdesign and construction) without reducingquantity or significantly increasing costs.• Carrying out slum clearance and resettlementbased on procedural protection and due processprescribed by international human rights, toavoid forced evictions.4chapter fourKEY LESSONS ANDCONCLUSIONSContents4.1 Key lessons4.2 Suggestions for improvement4.3 Concluding remarks – anachievement with positive sideeffects and scope for furtherimprovements4.2 Suggestions for improvementAffordabilitySerious attention should be given to the affordability ofcondominium units. Many low-income households areexcluded because they cannot afford the down-paymentor monthly mortgage and service repayments.Condominium Housing in ethiopia 45

AS THE NEED TO MITIGATE THEEFFECTS OF CLIMATE CHANGEBECOME INCREASINGLY APPARENT,IT IS IMPERATIVE THAT ATTENTIONBE GIVEN TO THE ENVIRONMENTALSUSTAINABILITY OF FUTURECONDOMINIUM PROJECTS.Financial support mechanisms are needed to improveaccess to CH units for the low-income sector. Likewise,specific attention needs to be given to women-headedhouseholds who, although given preference in the lottery,cannot secure a unit due to lack of financial capacity.Information, consultation and compensation in theresettlement processMany improvements can be made to the information,consultation, compensation and resettlement processes.In general, this process should be carried out in compliancewith procedural protection and due process for evictionand resettlement (see Box 4). The consultation processshould allow sufficient time for residents to be informedabout development plans, to respond to them, considerall possible alternatives, agree on resettlement options,and organize themselves in preparation for resettlement.A notice of at least 90 days prior to the resettlement dateshould be given to all affected persons. Governmentneeds to provide assistance for the physical move,including personal items, and government officials needto be on site at the time of resettlement. Legal remediesand legal aid should be provided to persons who are inneed of it.All individuals concerned have a right to adequatecompensation for any property, both personal and real,which is affected. Compensation for property should bebased on its current replacement value instead of its valueat the time of construction. Rent for temporary housingshould be adequately covered by the government. Thephysical standard of temporary shelters for relocatedresidents should be improved, or the constructionprocess modified to avoid the need for temporaryaccommodation but rather a direct move for beneficiariesfrom their existing house to new condominium house.If temporary shelters remain, greater certainty of theirposition regarding future condominium ownershipshould be given.Design and construction improvementWhile overall there is a certain level of beneficiaryparticipation in projects, there is little participationin the building and master planning design process.Opportunities for beneficiary involvement in theplanning and design should be explored in an effort tocreate greater attachment to the final built product andmake the built environment more responsive to locallifestyles and culture. If beneficiaries remain excludedfrom the design process, the design professionals involvedin generating the proposals should give greater attentionto beneficiary dwelling aspirations and lifestyles.Importantly, as the need to mitigate the effects ofclimate change become increasingly apparent, it isimperative that attention be given to the environmentalsustainability of future condominium projects. Globally,the building sector accounts for a significant proportionof greenhouse gas emissions through embodied energyof materials and operational energy use. Unfortunately,to date the IHDP has not considered these two aspects,yet these should be central in the planning and designof future IHDP projects. The search for alternatives tocement as main building material is a positive effort intothe right direction.The quality of the construction should be improved.This requires continual capacity building of professionalsand contractors as well as on-site quality checks (ofconstruction processes and raw materials) by trainedprofessionals.OPPORTUNITIES FOR BENEFICIARYINVOLVEMENT IN THE PLANNINGAND DESIGN SHOULD BE EXPLOREDIN AN EFFORT TO MAKE THE BUILTENVIRONMENT MORE RESPONSIVETO LOCAL LIFESTYLES ANDCULTURE.Post-occupancyThere is a pressing need to undertake thorough postoccupancymonitoring and evaluation of built projects.This is important to learn lessons for use in futurecondominium projects. Evaluation should include allstakeholders, especially the residents.46KEY LESSONS AND CONCLUSIONS

IN LIGHT OF ETHIOPIA’S PREVIOUSLYUNCOORDINATED AND INEFFICIENTHOUSING SECTOR, THE INTEGRATEDHOUSING DEVELOPMENTPROGRAMME HAS PROVED TO BEA HIGHLY SUCCESSFUL TOOL FORAFFORDABLE HOUSING DELIVERY ATLARGE SCALE.There is a need to address the post-occupancy issuesregarding the ownership and management of communalfacilities. These facilities are crucial parts of the builtenvironment and their use should be facilitated, however,the government has to acknowledge that the majority ofresidents cannot afford to buy or rent these facilities andtherefore the cost implications need to be thoroughlyconsidered.and their overall economic situation are improved. Thisrental practice is entirely ‘pro-poor’ because it is hard todeny that those who can afford the down-payment areeconomically benefiting from the programme. Thus, theIntegrated Housing Development Programme, indeed,is not just a housing programme but a wealth generationprogramme for low-income households. Among otherbenefits, ownership of a condominium property can beused as collateral to enable the owner to borrow moneyin the future for investment.In light of Ethiopia’s previously uncoordinated andinefficient housing sector, the programme demonstratessignificant achievement in ‘going to scale’. It has impactedon the country beyond the provision of housing units.It has improved the economy, created employmentopportunities, brought capacity development, andpromoted micro- and small-enterprises. Work remainsto be done, however, to improve the programme so itachieves its target of improved living conditions for moreEthiopians and especially for its lowest income group.4.3 Concluding remarks – anachievement with positiveside effects and scope forfurther improvementsThe Integrated Housing Development Programme isan ambitious achievement for Ethiopia. It is a physicalmanifestation of the transition from a static urbanhousing sector based mainly on publicly provided andcontrolled poor-quality rental housing to a dynamichomeownership-based approach with intelligent crosssubsidisationfor the poor, where the focus is on buildingthe capacity of private companies and on economicdevelopment in general. The Integrated HousingDevelopment Programme has proved to be a highlyeffective tool for affordable housing delivery at largescale. The recent use of condominium development forurban renewal and slum upgrading has great potential tobe replicated in other areas of the city with very poor andnot upgradable housing conditions, but the approachneeds some improvements to comply with internationalhuman rights law.THE INTEGRATED HOUSINGDEVELOPMENT PROGRAMME ISNOT JUST A HOUSING PROGRAMMEBUT A WEALTH GENERATIONPROGRAMME FOR LOW-INCOMEHOUSEHOLDS.The prevalent practice by condominium owners ofrenting out their units to wealthier households does notmeet the original aim of improving the living conditionsof the low-income sector of the population by directlyproviding them with affordable housing. However, sincethey use the rental income to move to a better kebelehouse and for income-generating activities, they gain intwo respects: the quality of their housing environmentCondominium Housing in ethiopia47

BibliographyAbate, M. (2001) Housing the Poor in Addis Abeba: Trends and Opportunities. Final Report No. 2961 for the workshopUrban Management: Planning and Finance. 79 th ICHUD, IHS, Rotterdam, The Netherlands.Abebe, E. (1997) Nationalisation of Urban Lands and Extra Urban houses: Impacts on Home Ownership Rights inEthiopia with particular Reference to Addis Ababa. Report 2518, ICHUD 71, IHS, Rotterdam, The Netherlands.Abelti, G., Brazzoduro, M. and Gebremedhin, B. (2001) Housing Conditions and Demand for Housing in UrbanEthiopia. Joint report prepared by the Central Statistical Authority, Addis Ababa and The Institute for PopulationResearch- National Research Council. Rome, Italy.Acioly C. (2010). New Towns for the 21 st Century: the Planned vs. the Unplanned City. The Informal City andthe Phenomenon of Slum’s: The Challenges of Slum Upgrading and Slum Prevention. SUN architecture and authors,Amsterdam.Addis Ababa City Government (2009) Training Manual: Electrical and Water/ Sanitation Installations. StrancomEngineering Consultants, Addis Ababa.Andemeskel, E. (1986) Ways of Life in Hudmo & Ethiopian Urban Houses. In, Kervanto Nevanlinna, A. andPöyhiä, T. (Eds) Ways of Life as a Basis for Housing Design in Ethiopia. Espoo: Helsinki University of Technology,Department of Architecture, pp. 21-42.Aneley, A. (2006) Synoptic Reflection on Urban Land Administration Issues in Ethiopia. Land Administration DecisionMakers Meeting, United Nations University and Polytechnic of Nambia. Windhoek, 7-8 December 2006.Berrisford, S. (2002) Land Management Regulations for Addis Ababa. Report prepared for Addis Ababa Development andImprovement Project Office, 15 July 2002, Rotterdam.Central Statistical Authority and United Nations Population Fund (2008). Ethiopia, Summary and Statistical Reportof the 2007 Population and Housing Census, Population Census Commission. UNFPA.Committee on Economic, Social and Cultural Rights (CESCR) (1997). The right to adequate housing (Art.11.1):forced evictions: CESCR General comment 7. 20/05/1997.http://www.unhchr.ch/tbs/doc.nsf/(Symbol)/959f71e476284596802564c3005d8d50?OpendocumentDolicho, E. (1996) Improving access to housing for the low-income groups through self-help housing co-operatives in AddisAbaba: the case of pure self-help housing co-operatives in Addis Ababa city, Ethiopia. Master’s thesis, Urban ManagementCentre, Rotterdam, The Netherlands.Hailu, T. (2001) The role of housing cooperatives to overcome urban housing problems: the case of Mekelle. UnpublishedMaster’s thesis. Urban Management Centre, Rotterdam, The Netherlands.Haregewoin, Y. (2007) Integrated Housing Development Programs for Urban Poverty Alleviation and SustainableDevelopment (The Case of Addis Ababa). Proceedings, European Network for Housing Research 2007: SustainableUrban Areas. Rotterdam, 25-28 June 2007.Hehl, R. and Stollman. J. (2010) New Towns for the 21 st Century: the Planned vs. the Unplanned City. New-Town-To-Be: Kotebe Hana Mariam. An Urbaninform.net Test-site in Addis Ababa. SUN Architecture and authors, Amsterdam.Kebbede, G. Jacob, M. (1985) Urban growth and the housing problem in Ethiopia. Cities, August 1985, pp. 230-242.Keffa, Solomon. (2005) Housing development as an instrument to alleviate urban poverty: The case of Addis Ababa.International Conference on Land in the Urban Landscape, Gothenburg, Sweden, 29 May-1 June 2005.Kumie A. and Berhane Y. Crowding in traditional rural housing (“Tukul”) in Ethiopia.http://ejhd.uib.no/ejhd16-n3/ejhdv16no3-page303.PDF48

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EndnotesSection One Endnotes1 UN-HABITAT (2008) Ethiopia Urban Profile. UN-HABITAT: Nairobi, p.11.2 Ministry of Works and Urban Development (2008) Integrated Housing Development Programme ofthe Federal Democratic Republic of Ethiopia. African Ministerial Conference on Housing and UrbanDevelopment, AMCHUD, Abuja, Nigeria, 28-30 July 2008, p.2.3 Ibid., p.2.4 UN-HABITAT, op. cit., p.6.5 Central Statistical Authority and United Nations Population Fund (2008). Ethiopia, Summary andStatistical Report of the 2007 Population and Housing Census, Population Census Commission. UNFPA.6 Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat,World Population Prospects: The 2008 Revision and World Urbanization Prospects: The 2009 Revision,http://esa.un.org/wup2009/unup/, Friday, December 03, 2010; 6:11:14 AM.7 Ibid.8 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsProgramme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya, p. 177.9 UN-HABITAT (2008) Ethiopia Urban Profile. UN-HABITAT: Nairobi, p. 10.10 Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat,World Population Prospects: The 2008 Revision and World Urbanization Prospects: The 2009 Revision,http://esa.un.org/wup2009/unup/, Friday, December 03, 2010; 6:11:14 AM.11 Ibid.12 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsProgramme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya, p. 177.13 UN-HABITAT (2008) Ethiopia Urban Profile. UN-HABITAT: Nairobi, p.9.14 Hehl, R. and Stollman. J. (2010) New Towns for the 21st Century: the Planned vs. the UnplannedCity. New-Town-To-Be: Kotebe Hana Mariam. An Urbaninform.net Test-site in Addis Ababa. SUNArchitecture and authors, Amsterdam, p. 234.15 UN-HABITAT (2010) State of the World’s cities Report 2010/2011: Bridging the Urban Divide.Earthscan: London, p.169.16 Ministry of Works and Urban Development. (2008). Paper: Integrated Housing Development Programof the Federal Democratic Republic of Ethiopia. African Ministerial Conference on Housing and UrbanDevelopment, p. 2.17 UN-HABITAT, op. cit., p.169.18 Kebbede, G. Jacob, M. (1985) Urban growth and the housing problem in Ethiopia. Cities, August 1985,pp. 230-242.19 Abate, M. (2001) Housing the Poor in Addis Abeba: Trends and Opportunities. Final Report No. 2961for the workshop Urban Management: Planning and Finance. 79th ICHUD, IHS, Rotterdam, TheNetherlands.20 Kebbede, G. Jacob, M., op. cit.21 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsProgramme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya.22 UN-HABITAT, op. cit.23 Teshome T. (2008). Managing Ethiopian Cities in an Era of Rapid Urbanisation. Appraisal of housingtypologies in Addis Ababa. IHS, Eburon Delft, p. 45.24 Mulugeta, S. (1995) Housing for Low and Moderate Income Workers in Addis Ababa, Ethiopia: Policyversus Performance. PhD Thesis, Graduate School-New Brunswick Rutgers, New Jersey, p. 69.25 Kebbede, G. Jacob, M., op. cit.26 Mulugeta, S., op. cit., p. ii.50Bibliography

27 Ibid., p. 71.28 Mulugeta, S., op. cit., p. 96.29 Kumie A. and Berhane Y. Crowding in traditional rural housing (“Tukul”) in Ethiopia.http://ejhd.uib.no/ejhd16-n3/ejhdv16no3-page303.PDF, p. 1.30 Mulugeta, S., op. cit., p. 96.31 Acioly C. (2010). New Towns for the 21st Century: the Planned vs. the Unplanned City. The InformalCity and the Phenomenon of Slum’s: The Challenges of Slum Upgrading and Slum Prevention. SUNarchitecture and authors, Amsterdam, p. 4.32 UN-Habitat (2008) Ethiopia: Urban Profile. UN-Habitat: Nairobi,33 Ibid.34 Ibid., p. 14.35 Dolicho, E. (1996) Improving access to housing for the low-income groups through self-help housing cooperativesin Addis Ababa: the case of pure self-help housing co-operatives in Addis Ababa city, Ethiopia.Master’s thesis, Urban Management Centre, Rotterdam, The Netherlands.36 Hailu, T. (2001) The role of housing cooperatives to overcome urban housing problems: the case ofMekelle. Master’s thesis. Urban Management Centre, Rotterdam, The Netherlands.37 Sileshi, T. (2002) Housing Cooperatives: Answers for Addis Ababa Housing Demand. Case study in Landand Housing Management Theme. December 2002.38 Tesfaye, A. (2007) Problems and prospects of housing development in Ethiopia. Property Management,Vol. 25, No. 1, pp. 27-53.39 Berrisford, S. (2002) Land Management Regulations for Addis Ababa. Report prepared for Addis AbabaDevelopment and Improvement Project Office, 15 July 2002, Rotterdam.40 Berrisford, S. (2002) Land Management Regulations for Addis Ababa. Report prepared for Addis AbabaDevelopment and Improvement Project Office, 15 July 2002, Rotterdam.41 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsProgramme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya.42 UN-HABITAT, op. cit.43 Abelti, G., Brazzoduro, M. and Gebremedhin, B. (2001) Housing Conditions and Demand for Housing inUrban Ethiopia. Joint report prepared by the Central Statistical Authority, Addis Ababa and The Institutefor Population Research- National Research Council, Rome, Italy, pp. 10.44 Haregewoin, Y., op. cit., p.5.45 Ministry of Works and Urban Development (2008) Integrated Housing Development Programme ofthe Federal Democratic Republic of Ethiopia. African Ministerial Conference on Housing and UrbanDevelopment, AMCHUD, Abuja, Nigeria, 28-30 July 2008, p.2.46 Haregewoin, Y. (2007) Integrated Housing Development Programs for Urban Poverty Alleviation andSustainable Development (The Case of Addis Ababa). Proceedings, European Network for HousingResearch 2007: Sustainable Urban Areas. Rotterdam, 25-28 June 2007. p.32.47 Ministry of Works and Urban Development, op. cit., p.2.48 Haregewoin, Y., op. cit., p. 5.49 Ibid.50 Abebe, E. (1997) Nationalisation of Urban Lands and Extra Urban houses: Impacts on Home OwnershipRights in Ethiopia with particular Reference to Addis Ababa. Report 2518, ICHUD 71, IHS, Rotterdam,The Netherlands.51 Woldehanna, S. (2003) Promotion of Cost Efficient Housing in Ethiopia: The Case of GTZ Experience.Report No. 3204. 85th ICHUD, IHS, Rotterdam, The Netherlands.52 Woiundimagegnehu, T. (2009) Affordable Houses for Middle and Low Income Group in Ethiopia: Selfhelphousing with innovative construction technology. XXX?53 Tesfahunegn, A. (1999) Construction in Ethiopia.54 Woldehanna, S. (2003) Promotion of Cost Efficient Housing in Ethiopia: The Case of GTZ Experience.Report No. 3204. 85th ICHUD, IHS, Rotterdam, The Netherlands.55 Ministry of Works and Urban Development (2008) Urban Sector and Construction Industry PerformanceReport of 2008/09. p. 22.56 Ibid.57 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsCondominium Housing in ethiopia51

Programme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya, p. 33.58 Ibid.59 UN-HABITAT (2008) Addis Ababa Urban Profile. UN-HABITAT: Nairobi. p.660 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsProgramme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya.61 Ibid.62 UN-HABITAT (2008) Ethiopia Urban Profile. UN-HABITAT: Nairobi, p. 22.63 Ibid., p. 22.64 UN-HABITAT (2008) Addis Ababa Urban Profile. UN-HABITAT: Nairobi. p.665 Haregewoin, Y., op. cit.66 Aneley, A. (2006) Synoptic Reflection on Urban Land Administration Issues in Ethiopia. LandAdministration Decision Makers Meeting, United Nations University and Polytechnic of Nambia.Windhoek, 7-8 December 2006.67 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsProgramme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya.68 Ministry of Works and Urban Development (2008) Integrated Housing Development Programme ofthe Federal Democratic Republic of Ethiopia. African Ministerial Conference on Housing and UrbanDevelopment, AMCHUD, Abuja, Nigeria, 28-30 July 2008, p. 3.69 Ministry of Works and Urban Development (2008) Integrated Housing Development Programme ofthe Federal Democratic Republic of Ethiopia. African Ministerial Conference on Housing and UrbanDevelopment, AMCHUD, Abuja, Nigeria, 28-30 July 2008, p.5.70 Ibid., p.4.71 Ministry of Works and Urban Development (2008) Integrated Housing Development Programme ofthe Federal Democratic Republic of Ethiopia. African Ministerial Conference on Housing and UrbanDevelopment, AMCHUD, Abuja, Nigeria, 28-30 July 2008, p. 3.Section Two Endnotes1 Dolicho, E. (2006) Condominium, a New Housing Development Approach for addressing the LowIncome Housing Problem of Addis Ababa, Ethiopia (Final Report). ICHUD, IHS, June 2006, Rotterdam,The Netherlands.2 Haregewoin, Y. (2007) Integrated Housing Development Programs for Urban Poverty Alleviation andSustainable Development (The Case of Addis Ababa). Proceedings, European Network for HousingResearch 2007: Sustainable Urban Areas. Rotterdam, 25-28 June 2007.3 Ministry of Works and Urban Development. Microlending Programme for Housing in Ethiopia, p. 16.4 Hehl, R. and Stollman. J. (2010) New Towns for the 21 st Century: the Planned vs. the UnplannedCity. New-Town-To-Be: Kotebe Hana Mariam. An Urbaninform.net Test-site in Addis Ababa. SUNArchitecture and authors, Amsterdam, p. 234. p. 235.5 Quote from interview with Mr. Haile, Addis Ababa City Administration6 Haregewoin op. cit., p. 10.7 Addis Ababa City Government (2009) Training Manual: Electrical and Water/ Sanitation Installations.Strancom Engineering Consultants, Addis Ababa.8 UN-HABITAT (2007) Situation Analysis of Informal Settlements in Addis Ababa. Cities without SlumsProgramme: Addis Ababa Slum Upgrading Programme. United Nations Human Settlements Programme:Nairobi, Kenya.9 The Micro Finance Institution provided funds as it had re-orientated its credit policy to provide extrasupport to Micro & Small Enterprises.52ENDNOTES

10 Ministry of Works and Urban Development. (2009). Film: Fruits of Hard Labour. Halleta AdvertisingMedia and Entertainment PLC.11 Ibid.12 Committee on Economic, Social and Cultural Rights (CESCR) (1997), The right to adequate housing(Art.11.1): forced evictions: CESCR General comment 7. 20/05/1997.http://www.unhchr.ch/tbs/doc.nsf/(Symbol)/959f71e476284596802564c3005d8d50?Opendocument13 OHCHR (2007), Basic Principles and Guidelines on Development-Based Evictions and Displacement,Annex 1 of the report of the Special Rapporteur on adequate housing as a component of the right toan adequate standard of living, A/HRC/4/18, http://www2.ohchr.org/english/issues/housing/docs/guidelines_en.pdfSection Three Endnotes1 Dolicho, E. (2006) Condominium, a New Housing Development Approach for addressing the LowIncome Housing Problem of Addis Ababa, Ethiopia (Final Report). ICHUD, IHS, June 2006, Rotterdam,The Netherlands. p. 10.2 Ministry of Works and Urban Development (2008) Integrated Housing Development Programme ofthe Federal Democratic Republic of Ethiopia. African Ministerial Conference on Housing and UrbanDevelopment, AMCHUD, Abuja, Nigeria, 28-30 July 2008, p. 3.3 Yami, Nirke, Aseffa, Tarekegn, and Dolicho, Eyob (2007) Consequences of the Condominium housingproject in Addis Ababa with a focus on housing access to the poorest in the city. Draft Report preparedby Development Partners, July 10 2007. Addis Ababa Civil Society Urban Renewal Committee(ACSURC) and Christian Relief and Development Association (CRDA).4 Keffa, Solomon. (2005) Housing development as an instrument to alleviate urban poverty: The case ofAddis Ababa. International Conference on Land in the Urban Landscape, Gothenburg, Sweden, 29 May-1June 2005.5 Yami, Nirke, Aseffa, Tarekegn, and Dolicho, Eyob (2007) Consequences of the Condominium housingproject in Addis Ababa with a focus on housing access to the poorest in the city. Draft Report preparedby Development Partners, July 10 2007. Addis Ababa Civil Society Urban Renewal Committee(ACSURC) and Christian Relief and Development Association (CRDA).6 Ibid.7 Keffa, op.cit.8 Keffa, op. cit.9 Keffa, op. cit.10 Andemeskel, E. (1986) Ways of Life in Hudmo & Ethiopian Urban Houses. In, Kervanto Nevanlinna,A. and Pöyhiä, T. (Eds) Ways of Life as a Basis for Housing Design in Ethiopia. Espoo: HelsinkiUniversity of Technology, Department of Architecture, pp. 21-42.Condominium Housing in ethiopia53

SUMMARYSince 2005 Ethiopia has been implementing an ambitious government-led low- and middleincomehousing programme: The Integrated Housing Development Programme (IHDP) whichaims to construct 400,000 housing units, create 200,000 jobs, promote the development of10,000 micro- and small- enterprises, and enhance the capacity of the construction sector.This authoritative book documents the genesis of the programme and the country’s experiencesince its inception. As it is intended for policy makers, public sector officials, and urban andhousing practitioners, it logically outlines the design of this programme and its effect onthe multiple dimensions of housing. Through documenting the Ethiopian experience otherdeveloping countries with housing shortages and who face rapid urbanization and populationgrowth can adapt and apply this logic to their own housing systems.In light of Ethiopia’s previously uncoordinated and inefficient housing sector, the IntegratedHousing Development Programme has proved to be a highly successful tool for affordablehousing delivery at a large scale. Importantly, the programme is not only a housingprogramme but a wealth generation programme for low-income households. Its success liesin its integrated nature - understanding housing as part of an integrated social, economic,and political system - which has the opportunity to greatly improve the living conditions andeconomic capacity of all sectors of society.United Nations Human Settlements Programme (UN-HABITAT)P.O. Box 30030, Nairobi 00100, KENYATel: +254 20 762 3120Website: www.unhabitat.orgEuropean Commission