BY LEULSEGED WORKU –
The role of Public Private Partnership is many sided benefits in supporting the national economy. This is especially true in areas where the government cannot solely shoulder all the economic burdens. The experience of developed nations has witnessed that, due to the intervention of private sectors in selected economic activities, the burden of the government can be eased and the society become beneficiaries.
Housing is one area where public private partnership is needed to take part. For the past decades, the government has been trying its level best to address the housing demand of the society. However, the more houses are constructed, the more challenges are observed. The issue of finance, absence of proper input, quality of quality, and tardiness in completing projects and others are major challenges. For this reason, the expected goal is/was not realized at the desired fashion.
Whenever the issue of housing arises, there comes always the unmet need of the society for houses. Understanding this persistent issue; and seeing dwellers’ desire, City Administration and others concerned organs are striving to address the challenges and fill the gap.
The role of real-estate developers in this regard is irreplaceable. However, since some of the real-estate developers are self-centered and run targeting to amass high profit.
Realizing the problem, the Administration is working giving due consideration to the one who can afford set price.
According to Gojo Bridge Housing plc. CEO, Almaw Garie, the desire for house in Addis Ababa and other urban centers is growing from time to time. And the government is doing its level best to fill the gap. However, the problem is still there.
Addis Ababa is a growing city with all its challenges. Housing is one challenge. In this respect Gojo Bridge Houses together with Addis Ababa Housing Development Bureau are trying to fill the gap by Public Private Participation.
In this regard, Gojo Bridge Housing has conducted a study to fill the gaps in reasonable price. After the study, Gojo Bridge Housing has come up with an innovative idea and reasonable housing scheme that enable individuals to own house with reasonable price.
The Enterprise has come up with the solution out of the challenges observed within the past years. For instance, construction land is one challenge. This is especially true in urban areas. Absence of plot of lands is one serious problem for housing development sector. “For that reason, we were looking for better solution that will not displace individual land owners and use that plot of land with a win-win strategy.” In other word, when those land owners are convinced to sell their land, it will be developed and they will have a chance to live in one of the flat and earn the money in return for their land.
This idea is developed out of the concern of keeping the social attachment among neighbors.”
Whenever individuals are displaced from the place where they lived for long, it will not be easy for them to rebuild the social cohesion and interaction in the new area where they are relocated as they had once. For this reason, based on the agreement, individuals will get house in their same place as well as receive compensation (money) for their land. Previously, it was common to see people displaced from their long lived places and encounter hardship in the new village they are forced to live. The new strategy developed by Gojo Brdige Housing and other concerned organs is different from this.
On the other hand, people in the need of houses are the other target area in the system. These days, almost everyone is in need of houses. Owing to this fact, applying housing development synergy is not only an alternative; but a must. This means, involving all stakeholders is the easiest; and at the same time an effective way to individuals as well as the nation. These stakeholders could be contractors, banks, insurance companies, government and others. When this companies and individuals come together, there is a possibility to assist the society beyond business.
What is more, inviting cooperative unions and others will also ease the burden. Cooperative unions have a key role in addressing public needs. This is especially true in areas of housing development. The more people united in legal associations, the more they will get support from the government. This will enable them to get the desire of their heart within short period. Contract administrators and legal professionals will also join the system so as to minimize cost and ease the process.
Technology is the other most important thing in this process. Ethiopia needs to apply new technologies in the area of housing construction. These technologies should be cost effective and address the need of the society in specific timeframe.
Addis Ababa City Housing Development Bureau Deputy Head, Jarso Golisa, on his side said that the need for housing is the basic right of the society. In this regard, beside the government, alternative housing development activities have significant role in addressing the need.
There was an attempt by the government to solve housing problems of the people in its way. However now, there is a new way of addressing the problem- through PPPs mechanism.
The demand and supply side of housing is still a problem to the society and the government as well. Absence of proper technology, scarcity of land and capital, input scarcity are some of the challenges. To this end, the government has started a new initiative that fills the gap in the area.
Several investors have joined the program and there is a promising move in this regard. All it needs is time. Previously, it was only the Commercial Bank of Ethiopia that had an authority in the area. However, now there is a new plan to include private banks so as to enable individuals buy their own houses.
The Ethiopian Herald June 19/2021
