Developers fail to begin construction, blame lack of infrastructure

The Sululta Town Administration plans to reclaim 84,609sqm of land that has been leased to 19 developers.

The developers had registered 88.6 million Br for various projects including hotels, factories, recreation centres, and warehouses. Out of the many that have leased land from the area, 130 have not started any construction on their respective sites, according to the city administration.

"Some have not even started fencing their plots," said Dereje Shiferaw, general manager of the Investment Bureau of Sululta. "We have been reminding them via television, advertisements, broadcasts, written notices, and even in person."

Some of the developers faced infrastructural problems related to access to water, roads, and electricity, a survey conducted by the oromia town administration found. Developers whose plots were located in such areas have not had their land reclaimed by the administration, according to Dereje.

The reclamation of the 19 plots was approved by the Special Zone Administration, which referred it to the final decision maker, the Oromia Investment Commission (OIC).

"The developers will be given a chance to present credible reasons for their delays," Dereje said.

Another 176ht of land has been set aside for various projects related to investment in agro-industry and animal fattening and breeding, by the Town administration.

Sululta, in the Oromia Special Zone, is located 25km north of Addis Abeba. It boasts 320 investors with a capital of 3.7 billion Br. Among the large investors in the area are Great Abyssinia Plc, Yanfon Tex Plc, Allied Chemical Plc, Nile Petroleum, China-Africa Overseas Leather Products, and a number of flower farms.