The newly built Sebeta Town Municipality sits on 833Sqm and is meant to generate income for the city. Right: Side-view of the three-storey building in Welete.

The Sebeta Town Municipality has constructed a six-storey commercial centre for 14.7 million Br around the area commonly known as Yedrow Menaherya.

The building, which is meant to generate income for the municipality, is the tallest in the area and should spur local investors to engage in even taller and better constructions, the municipality hopes. The building covers an 833.49sqm area, while its premises measure 2,151.18sqm. Out of the 3,984.55sqm that is available for rent, Oromia International Bank (OIB) has already rented 103sqm of ground floor space for a monthly sum of 10,300 Br.

The municipality will invite bids to rent the rest of the space, according to Gadissa Debela, administrator of the municipality. "The bank had shown an interest from the very beginning of the construction and followed each development of the construction," he said.

The construction was undertaken by Mescon Construction Plc, with whom an agreement was signed on March 4, 2008. Construction was delayed until September 2, 2009, because of the price of materials, according to Girum Chernet, manager of Mescon Construction. The consultant for the project was Shasho Consulting Plc.

The municipality contributed 3.6 million Br out of the four million Birr it cost to construct the three-storey building in Welete. The outstanding amount was raised by 470 farmers whose land had been given to developers to fulfil the town's development plan.

The farmers raised their share of the money from the compensation they had been paid for their land. The municipality has no share in the ownership of the building. "We made the contribution from the town's revenues in order to help the farmers," Gadissa said.

Two groups of farmers are also in the process of erecting their own buildings. Each group has been given 1,500sqm of land by the main road, according to Gadissa. Some former farmers have found it difficult to adjust to city life. A number of them have continued farming on spare plots on the outskirts of the town, while the municipality is preparing to organise them into small and medium enterprises (SMEs), according to Gadissa.

The town has so far spent 87.4 million Br for the establishment of such businesses, Gadissa said.