condominium housing in ethiopia - International Union of Tenants

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