The Addis Ababa City Administration has announced that over 9.5 billion birr in compensation has been paid to residents displaced from their private properties due to corridor development projects.
During the 4th term, 2nd regular session of the City Administration Council, Mayor Adanech Abebe presented a six-month report highlighting various issues, among which was the ongoing corridor development work in the city.
Mayor Adanech Abebe noted that the second phase of the corridor development is progressing rapidly by adopting the experiences of other countries. She stated that over 9.5 billion birr in compensation has been paid to residents displaced from their private properties as part of the corridor development, which covers a total of 3,515 hectares. Additionally, 9,000 houses have been provided to former kebele (local administrative unit) residents.
The mayor also mentioned that 1,402 workplaces and 200 commercial shops have been provided as replacements.
She emphasized that efforts are underway to complete the construction within the designated timeframe, though she did not specify when that would be.
In the past six months, the city collected 111.5 billion birr in revenue tax, as outlined in the mayor’s report. Compared to the same period last year, this represents a 50 percent increase. The mayor attributed this growth to expanding the tax base and enforcing regulations, rather than introducing new types of taxes.
For the 2024/25 fiscal year (2017 Ethiopian Calendar), 71 percent of the city administration’s allocated budget of 5.4 billion birr has been directed toward sustainable development, poverty alleviation, and improving residents’ livelihoods, according to the mayor.
To support low-income residents, an additional 12 billion birr has been allocated for student feeding programs, food supplies, transportation, and healthcare services, she added.
On another note, the mayor reiterated that 9,000 houses have been provided to former kebele residents displaced by the corridor development, while over 9.5 billion birr in compensation has been paid to those displaced from private properties.
The federal budget subsidy allocated to the city for the 2017 fiscal year was slightly above 5.4 billion birr. In contrast, over the past six months, the city collected 111 billion birr in revenue, according to the mayor.
Additionally, the mayor noted that a proposed roof and wall tax by the city administration was struck down by the court, prompting questions from council members about its implications. Other questions raised included whether the compensation provided to displaced private property owners is sufficient given the current high construction costs, and the source of funding for the costly corridor development project.
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- Etemete | እቴ እሜቴ
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