Addis Ababa City management has approved construction of Addis Ababa Largest Private Housing development in the city’s history, at a cost of 450 billion Birr by Ovid Group , as part of its 70/30 public-private partnership program. In the coming days, the property will be handed over to the contractor free of charge.The administration has registered more than a million home seekers, but through its affordable housing program it has provided only about 200,000 homes in more than 13 years, just hardly 20% of its target. At this rate, it could take morethan 50 years to meet all recorded needs.
Faced with this setback, officials turned to the option: the 70/30 public-private partnership program.In this model, private developers finance and build 70% of the homes for sale and donate 30% to the state for low-income residents.The Addis Ababa Largest Private Housing Project foresees to address the growing housing shortage in Addis Ababa and meet the needs of residents.
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Companies selected to develop the largest housing project in Addis Ababa
68 companies have been selected to develop the largest housing developmentin Addis Ababa. The list includes both local and foreign to build the housing developments, including Midroc Investment Group, Ovid Group, Flintstone Homes, Eniy Construction and Gift Real Estate.Ovid Group will build a total of 60,000 of the planned 100,000 units on a 460 square meter plot in Bole Bulbula, which is expected to receive the land next week.Sources of funding for the complex include Ovid Group partners, foreign loans, some domestic loans, institutional sales and diaspora contributions.Ovid also plans to start a mortgage bank company.The company received the land without paying the rent. In return, Ovid will keep 70% of the units premises for sale, and forward 30 percent to the government. Ovid is offering a total of 70% of its shares for sale to fund the Addis Ababa Largest Private Housing Project construction.
The city has set aside 350 hectares of land for housing projects through the public-private partnership. The Ovid Group worked with the German consultancy Kling which is 65 years old on the project.Under the 70/30 program, developers get to fully finance projects. When critical resources like electricity, water and building materials are scarce, developers should give them priority access as the project requires o them. OVID means “Our vision is development” in Amharic language.
