40/60 Housing Goes Higher

Moved by a larger demand for the 40/60 housing scheme, the Ministry of Urban Development, Housing & Construction (MUDHC) has prepared three new designs of up to 24 storeys.

Apart from the 12 storey buildings under construction at different sites across the city, the rest of the buildings to be constructed under the new scheme will be 16, 18 and 20 storey with two basements, and 24 storey buildings with three basements, according to Desta Shewamola, head of Houses & Building Design Preparation & Implementation Department.

The Ministry has commissioned the preparation of the designs to ETG Designers & Consultants Plc, for the design of the 16, 20 and 24 storey buildings while the Addis Abeba Savings & Houses Development Enterprise (AASHDE) has prepared the design for the 18 storey buildings. ETG is a category 1 consulting and designing firm established in 1995.

The decision to increase the height of the buildings to be constructed under the scheme is made in order to accommodate the larger demand of houses through an efficient use of the lands apportioned for the purpose, according to Desta.

In addition to the increased number of houses to be included in the newly designed buildings, the proportion of the types of houses to be included in each of these buildings will also vary from those currently under construction.

The Ministry has availed three types of houses under the 40/60 scheme based on the number of bedrooms they accommodate. Accordingly, the 12 storey buildings under construction encompasses one bedroom, two bedroom and three bedroom houses, the number of which are equally proportional in each of the buildings.

Nonetheless, the design of the 12 storey buildings, which was made before registration of the house was made, that has incorporated all the three types of the houses in proportional number is found to be incompatible with the demand manifested for each of the three types of houses during the registration under the scheme.

Out of the total number of 160,000 residents registered under the scheme, only four percent is registered for one bed room houses and 46pc for the two bed room while half have registered for the three bed room houses.

Currently, there are 12,279 houses  that are being constructed at nine sites across the city under the scheme. Out of this the construction progress of those at Lideta District, Senga Tera area has reached 61pc while those that started in the last fiscal year, at other sites have reached 12pc completion, according to the final draft of the annual performance of the Ministry.

City residents who are registered under this scheme must save 40pc of the value of the houses within five years and the government arranges a loan for the remaining 60pc from the Commercial Bank of Ethiopia (CBE) by mortgaging the house to be transferred to the user upon completion.

One, two and three bedroom houses under the 40/60 scheme cost  162,000 Br, 250,000 Br and 386,000 Br, respectively. The respective monthly savings are 1,033 Br, 1,575 Br and 2,453 Br for five years.

The construction cost of the buildings for the house seekers under the scheme is, however, adjustable based on the market price of the construction materials. Besides, the cost of the newly designed buildings may differ from the current amount, according to Desta.

“The price of the houses may increase,” says Desta. “The government, however, may subsidise it.”

Every building to be built based on the new designs will have an electric power generator that will serve the houses in case of a power shortage, according to Desta.

In addition to those in progress under the 40/60 scheme, the government is also constructing 124, 220 houses under the 20/80 low cost housing scheme. Out of this, the construction of 71, 127, which were begun in 2010/11 and 2011/12, has reached 91.2pc while that of 13, 014 houses has reached 13.28pc; those whose construction started in 2013/14 fiscal year are at basement stage. The total number of house seekers that are registered under this scheme is 780,000 residents of the city, according to data from the Commercial Bank of Ethiopia (CBE).

The third category of the low cost housing types underway by the government is the 10/90 scheme, for which around 20,000 house seekers are registered, according to data from the CBE.  The construction progress of the 24,288 houses for the registrants under this scheme have reached 62.17pc, according to data from the MoUDHC.

The government has now used 6.3 billion Br which has been raised through the sale of bonds for the construction of these houses, the Ministry says that so far 1.25 billion Br has been spent on the 40/60 houses currently under construction.






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