Developers in Sebeta Town, whose plots of land are close to the main road and has infrastructure available but have not started construction, may have their land reclaimed by the town's Investment Office.

Developers totalling 34 are set to lose 420,225sqm plots of land that were leased to them between 2003/04 and 2007/08 in Sebeta Town, Oromia Special Zone. A little over 60,000ht of land has been leased to 589 developers with a registered capital of 7.3 billion Br until the end of the 2009/10 fiscal year by the town's Investment Office.

"Only 132 developers have begun operations and 70 have already finalised construction that is expected to become operational in the near future," Tamiru Fita, head of the Investment Office, said. "There is no sign of development on the other 245 plots."

The 34 developers, whose plots are being repossessed by the office, are located in areas with acceptable infrastructure but failed to start development. The office referred their cases to the Oromia Special Zone Administration, after they failed to respond to repeated warnings, according to Tamiru.

The zone upheld the office's intention to reclaim the plots and further referred the case to the Oromia Investment Commission, which gave the Sebeta Investment Office the go-ahead. The 34 land holders were instructed to return the plots they have taken in a notice from the office, made on Tuesday, August 31, 2010.

Infrastructural conditions have not yet been fulfilled in the areas where the other 211 developers were allotted land, according to Tamiru. "There are some developers who are striving to start construction, but these are among the 211," Tamiru said. "There is no good infrastructure, particularly roads, in their areas. Most of the 34 investors have plots by the main road, and many investors there have finished construction and are operational."

Handura Plc, which has taken the largest plot of 238,910sqm, is among those that could lose their land. It received its plot to develop agro industry with a capital of 15 million Br on December 10, 2004.

Mekonnen Welelaw took 5,000sqm of land in 2007, for a leather garment business he intended to start with a capital of 7.8 million Br. "We have bought construction materials to start construction, even if it is muddy and we can hardly transport the materials to the site," Lakew said.

Developers who present convincing excuses could still be spared from losing their land, Tamiru said. The total area of Sebeta Town is 29,646.9sq kilometres, most of which is suitable for investment. Bidding prices for land start at 5.85 Br per square metre for industrial purd 12.85 Br for real estate, according to Tamiru.

The rates for all other forms of investment fall between the two.