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Chapter-2 Construction Laws and Regulations: Construction Law Handout For COTM 4 Year Regular Students

This document provides an overview of construction law and regulations in Ethiopia. It defines key terms like construction, works, and construction law. It also discusses relevant public laws around land administration and the process of land expropriation for construction projects. The expropriation process involves notifying landholders in writing that their land will be taken for a public purpose. Compensation must be paid in advance and landholders must vacate by a certain date according to the Expropriation Proclamation.

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Hussen Mohammed
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0% found this document useful (0 votes)
154 views34 pages

Chapter-2 Construction Laws and Regulations: Construction Law Handout For COTM 4 Year Regular Students

This document provides an overview of construction law and regulations in Ethiopia. It defines key terms like construction, works, and construction law. It also discusses relevant public laws around land administration and the process of land expropriation for construction projects. The expropriation process involves notifying landholders in writing that their land will be taken for a public purpose. Compensation must be paid in advance and landholders must vacate by a certain date according to the Expropriation Proclamation.

Uploaded by

Hussen Mohammed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Construction law handout for COTM 4th year regular students

Chapter-2
2. Construction laws and regulations
2.1. INTRODUCTION
CONSTRUCTION
 In the fields of architecture & civil engineering, construction is a process that consists of the building
or assembling of infrastructure.
 The term construction is not defined directly by law in Ethiopia. The concept is known as “works”.
 According to Article 2(3) of Proclamation No. 649/2009 i.e. the Ethiopian Federal Government
Procurement & Property Administration Proclamation, works is defined as follows.
“Works mean all work associated with the construction, reconstruction, upgrading,
demolition, repair or renovation of a building, road, or structure, as well as services
incidental to works, if the value of those services does not exceed that of the works
themselves and includes build-own-operate, and build-own operate-transfer and build-
operate-transfer contracts.”
 The definition encompasses the following points:
 It includes all possible works;
 It provides illustrations for the works;
 It includes also services incidental to works;
 It includes also possible types of contractual arrangements based on the possible
contractual obligations of that of the contractor.
 According to Article 2(9) of the Ethiopian Building Proclamation (Proc. No. 624/2009) the term
construction, from building perspective, has been defined, as follows:
““Construction” means the construction of a new building or the modification of an existing
building or alteration of its use.”
Construction Law
 Construction law is a body of law that deals with matters related to building construction & related
fields. It covers a wide range of legal issues including contract law, bonds & bonding, guarantees &
securities, liens & other security interests, tendering, construction claims & related consultancy
contracts.
 There is no definition given to construction law under the Ethiopian law.
 Construction law may cover the whole range of the relevant legal regulation in terms of the
construction project’s planning, study, design, financing, execution, (in terms of say: maintenance,
repair, demolition…) supervision & operation or use of same.

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 The scope of construction law should be seen from the following perspectives or dimensions i.e. in
terms of legal regulation of:
 investment in construction;  ethics & anti-corruption in
 construction business; construction;
 construction project;  public decision services; and
 contracts;  legal liability;
 dispute resolution;

2.2. Construction projects and Public Laws


2.2.1. Land Administration law

 Land is an important and critical input to any physical project.


 Land may be required for rural infrastructural projects or for projects in the urban setting.
 The importance of land is obvious for the Construction Project. It is needed, for example,
 For the construction site;
 For the camp site;
 For quarry site;
 For dumping site (for cart away);
 For detour, in case of road projects;
 Because of the difference in the legal framework, the process of acquisition of land both for
urban and rural setting is different.
 Land in Ethiopia is a public property. This is valid both for urban and rural setting.
 As per Proc. No. 25/1975 the Rural Land became a public property.
 As per Proc. No. 47/1975 the Urban Land became a public and government property.
 To this effect the Federal Government enacted land administration laws both for rural and urban
setting.
 These laws are the following:
 The FDRE Rural Land Administration & Land Use Proc. No. 456/2005;
 Re-enactment of Urban Lease Holding Proc. No. 272/2002;
 Expropriation of Landholdings for Public Purposes and Payment of Compensation
Proc. No. 454/2005;
 To secure land for Construction Project purpose, these legislations provide the required legal
framework.
 There must follow an act of expropriation and an act of compensation.

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2.2.1.1. The Expropriation Proceeding


 Expropriation proceedings, according to Article 1460 of the Civil Code, are proceedings whereby the
competent authorities compel an owner to surrender the ownership of an immovable required by
such authorities for public purposes.
 This provision may not be valid in case of land because of the change in the public policy. There is no
private ownership of land. The scope of the definition of public interest is so narrow, as we shall
examine herein below.
 Public Purpose, according to Article 2(5) of Proc. No. 455/2005 means the use of land defined as
such by the decision of the appropriate body in conformity with urban structure plan or
development plan in order to ensure the interest of the peoples to acquire direct or indirect benefits
from the use of the land and to consolidate sustainable socio-economic development.
 Public purpose may include private investment not necessarily restricted to public projects. See
Article 3 of the Proc.
 Expropriation measure is a public prerogative or special power given to public authorities to achieve
public interest.
 Such power is provided under this legislation to the Regional States (especially to the Woredas)
including Addis Ababa and Dire Dawa City Administrations and for Public Enterprises.
 This special power has paramount importance, for example, for the following public institutions,
namely,
 The Ethiopian Roads Authority;
 The Ethiopian Electric Power Corporation;
 The Ethiopian Telecommunication Corporation;
 The Addis Ababa Water & Sewerage Authority;
 The Addis Ababa City Roads Authority;
 Public Enterprises for Industrial Plant Establishment;
 Woreda Administrations;
 Others
 The expropriation measure is justified for its public purpose.
 Development works bring with them some inconvenience to certain portion of the population. That
possible inconvenience studied and documented in the project’s Socio Economic Study and the
affected people and institutions are compensated, accordingly.
 Peasants and, possibly also pastoralists, and urban dwellers including some public enterprises, may
be affected by such development measure.

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 The peasants and pastoralists are affected in terms of their possession of land and any financial or
proprietary benefit on the land.
 The urban dweller is affected in terms of his possession of land & ownership to his building...
 The public enterprises are affected in terms of their service supply network (utility lines). Utility
lines means telecommunication lines, electric lines, water lines, sewerage lines. …And others
 The expropriation measure has to be taken in advance to avoid any possible delay or disruption to
the Construction Project.
 The urban land shall be ready through the process of land clearance.
 The lease system is followed, as per Proc. No. 272/2002.
Expropriation of Landholdings for Public Purposes and Payment of Compensation
Proclamation (Proclamation No.455/2005)
 "compensation" means, payment to be made in cash or in kind or in both to a person for his
property situated on his expropriated landholding;
 "landholder" means an individual, government or private organization or any other organ which
has legal personality and has lawful possession over the land to be expropriated and owns
property, situated there on;
Power to Expropriate Landholdings
 A woreda or an urban administration shall, upon payment in advance of compensation in
accordance with this Proclamation, have the power to expropriate rural or urban landholdings
for public purpose where it believes that it should be used for a better development project to be
carried out by public entities, private investors, cooperative societies or other organs, or where
such expropriation has been decided by the appropriate higher regional or federal government
organ for the same purpose.
Notification of Expropriation Order
1. Where a woreda or an urban administration decides to expropriate a landholding in accordance
with Article 3 of this Proclamation, it shall notify the landholder" in writing, indicating the time
when the land has to be vacated and the amount of compensation to be paid.
2. The period of notification to be given in accordance with Sub-Article (1) of this Article shall be
determined by directives; provided however, that it may not, in any way, be less than ninety
days.
3. Any "landholder who has been served with an expropriation order in accordance with Sub-
Article (1) of this Article, shall handover the land to the woreda or urban administration within
90 days from the date of payment of compensation or, if he refuses to receive the payment, from

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the date of deposit of the compensation in a blocked bank account in the name of the woreda or
urban administration as may be appropriate.
Responsibilities of the Implementing Agency
 The implementing agency shall have responsibilities to:
1. prepare detail data pertaining to the land needed for its works and send same, at least one year
before the commencement of the works, to the organs empowered to expropriate land in
accordance with this Proclamation and obtain permission from them; and
2. pay compensation in accordance with this Proclamation to landholders whose holding have been
expropriated.
Procedures for removal of Utility Lines
1. Where land over or under which utility lines, owned by a federal or regional government office
or public enterprise, pass is to be expropriated, the body requiring the land shall submit, in
writing, its request to the owner by indicating the exact location of the lines to be removed.
2. The body which has received are quest under Sub..Artic1e (I) of this Article shall' within 30 days
from receipt of such request determine a fair compensation required to replace the lines to be
removed and send details of its valuation to the requesting body.
3. The body which requested the removal of utility lines, shall pay compensation to the owner
within 30 days from the date of receipt of the valuation under Sub-Article (2) of this Article. The
owner shall also remove the utility lines and vacate the land within 60 days from the date of
receipt of compensation.
Determination of compensation
1. The amount of compensation for property situated on the expropriated land shall be Determined
on the basis of replacement cost of the property.
2. Where the compensation referred to under Sub-Article (2) of this Article is pay able to an urban
dweller, it may not, in any way be less than the current cost of constructing a single room low
cost house in accordance with the standard set by the concerned region.
3. Compensation for permanent improvement to land shall be equal to the value of capital and
labour expended on the land.
4. The cost of removal, transportation and erection shall be paid as compensation for a property
that could be relocated and continue its service as before.
5. Valuation formula for determining compensation for various properties and detail prescription
applicable there to shall be provided for by regulations
Displacement Compensation

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1. An urban landholder whose landholding has been expropriated under this Proclamation shall:
A. Be provided with a plot of urban land, the size of which shall be determined by the urban
administration, to be used for the construction Of a dwelling house; and
B. Be paid a displacement compensation equivalent to the estimated annual rent of the demolished
dwelling house or be allowed to reside, force charge, for one year in a comparable dwelling
house owned by the urban administration.
Valuation of Property
1. The valuation of property situated on land to be expropriated shall be carried out by certified
private or public institutions or individual consultants on the basis of valuation formula. adopted
at the national level.
2. Until such time that the Ministry of Federal Affairs, in consultation with the appropriate federal
and regional government organs, ascertains the creation of the required capacity to take
valuation of property as specified under Sub-Article (I) of this Article, such valuation shall be
carried out by' committees to be established in accordance with Article (10) of this Proclamation
and owners of utility lines in accordance with Article (6) of this Proclamation
Property Valuation Committee
1. Where the land to be expropriated is located in a rural area, the property situated thereon shall
be valued by a committee of not more than five experts having the relevant qualification and to
be designated by the woreda administration.
2. Where the land to be expropriated is located in an urban center, the property situated thereon
shall be valued by a committee of experts having the relevant qualification and to be designated
by the urban administration.
3. Where the property situated on a land to be expropriated requires specialized knowledge and
experience, it shall be valued by a separate committee of experts to be designated by the Woreda
or the urban administration.
4. The working procedures for the committees established in accordance with this Article shall be
determined by directives.
Complaints and Appeals in Relation to Compensation
1. In rural areas and in an urban center where an administrative organ to hear grievances related
to urban landholding is not yet established, a complaint relating to the amount of compensation
shall be submitted to the regular court having jurisdiction.

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2. Where the holder of an expropriated urban landholding is dissatisfied with the amount of
compensation, he may lodge his complaint to the administrative organ established by the urban
administration to hear grievances related to urban land holdings.
3. The organ referred to in Sub-Article(2) of this Article shall examine the compliant and give its
decision with in such short period as specified by directives issued by the region and
communicate its decision to the parties in writing,
4. A party dissatisfied with a decision, rendered in accordance with Sub-Article (I) and(3) of this
Article may appeal, as may be appropriate, to the regular appellate court or municipal appellate
court within30days from the date of the decision. The decision of the court shall be final.
5. An appeal submitted, pursuant to Sub-Article (4) of this Article, by any landholder served with
an expropriation order maybe admitted only if it is accompanied with a document that proofs
the handover of the land to the urban or Woreda administration.
6. The execution of an expropriation order may not be delayed due to a complaint regarding the
amount of compensation.
2.2.1.2. Re-Enactment of Urban Lands Lease Holding Proclamation
(Proclamation No.272/2002)
 "Lease" means lease-hold system in which use right of urban land is transferred or held
contractually;
 "Appropriate Body" means a body of a Region or a City Administration. Vested with the power to
clear by lease and administer land;
Period of Lease
 the period of lease shall be vary depending on the level of urban' development and sector of
development Activity or the type of service 'and shall have the ceiling of:
A) In any town
1. up to 99 years for housing (personal and leasable), science, technology; research, and study,
government office, non-profit making philanthropist organization, religious institution; ,
2. Up to 15 years for urban agriculture;
3. as per government agreement for diplomatic missions and international organizations;
B) In Addis Ababa and in a town designated as of the grade of Addis Ababa:
1. Up to 90 years for education, health, culture, sports; ,,‘
2. Up to 60 years for, industry;
3. up to 50 years for commerce;
4. up to 50,years for Others.

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C) in other towns not designated as of the Grade of Addis Ababa; '.


1. Up to 99 years for education, health, culture, sports;
2. Up to 80 years for industry;
3. Up to 70 years for commerce;
4. Up to70 years for others.
Renewal of Period of Lease
1. Period of lease may, up on the termination thereof, be renewed for the lease-hoId possessor as
per the agreement to be reached, unless the urban land is wanted for public interest, Where the
lease period is not renewed up on termination on account of the land being wanted for public
interest however, compensation shall not be paid to the lease-hold possessor.
2. Period of lease shall be renewed for the lease-hold possessor in pursuance with the stipulations
of Sub-Article (1) of this Article if only he has applied in writing to the appropriate body, to that
effect within 10 years and not exceeding 2 years before the termination of the period of lease.
3. The appropriate body must notify to the applicant in writing its decision within 1 year after the
application has been lodged with it. It shall be deemed as, though it has agreed to the renewal if
it fails to do so within 1 year after the receipt of the application.
Rate of Lease Payment
1. The manner of determination of the rate of lease payment shall be stipulated by Regulations to
be issued by Region or city Government.
2. Region or City government may peI111 it urban land for lease payment down to nil for a
development activity, social service-rendering institution, low-cost housing, private dwelling
houses, and similar under takings, it purports to encourage.
Signing Lease Contract
1. Any person, to whom lease-hold of urban land is permitted through auction or negotiation, shall
be entitled to obtain lease-hold title deed as set forth in ArtiCle5 only after he has signed a
contract of lease with the, body permitting the land or, the appropriate body.
2. Conditions of the performance of payment, period of grace and other relevant conditions should
be embodied in the contract.
Performance of Payment and Utilization of Incomes
A person, to whom lease-hold of urban land is permitted,
A. may be given a period of payment to be determined by Region or City Government, as the case
may be, taking into account the duration needed to recover costs to be incurred;
B. must make advance payment not less than 5 per cent out of the total lease payment;

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C. shall make payment every year, and the yearly payment shall amount to the average price of the
remaining lease payment divided over the period payment;
D. shall pay interest over the remaining payment as per the rate of interest on loan offered by Bank.
E. shall pay penalty fee according to the rate of penalty fee imposed by Bank upon debtors on
account of default of loan payment; ,
Termination of Lease-hold and Payment of Compensation
1. The lease-hold of urban land shall be terminated:
A. Where the lease-hold possessor has failed to use the land in accordance with Sub-Article (1) of
Article 12;
B. where it is decided to use the land for a public interest; or
C. where the period of lease is not renewed in accordance with Sub-Article (1) of Article 7.
2. The lease payment shall be returned subject to the reduction of costs incurred and penalty fee,
where the lease-hold of urban land is terminated' in accordance with Sub-Article (1) (a)of this
Article.
3. Where the lease-hold of urban land is terminated in accordance with Sub-Article, (1)(b) of this
Article, the lease-hold possessor shall be paid commensurate compensation in conformity with
the pleadings institution procedure set forth in Article 17.
4. Where the lease-hold of urban land is terminated in accordance with Sub-Article (1) (c) of this
Article the lease-hold possessor must hand over the land to the body which gave it by removing
within one year the property he has on the ground.
5. The body, which handed the urban land over to the lease-hold possessor, may take over the land,
together with the property thereon without any payment, where the latter has failed to remove
the property on the ground within the period of time set forth in Sub-Article (4) of this Article It
may order the Police where it finds it necessary for the execution thereof.
6. Where contract, of lease is terminated in accordance with the provisions of this Article, the
taking over of the land shall take place pursuant to the provisions of Article 20.

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2.2.2. Environmental Law


The Constitutional Framework
According to Article 44(Environmental Right)
 All persons have the right to a clean and healthy environment.
 All persons who have been displaced or whose livelihoods have been adversely affected as a
result of State programmes have the right to commensurate monetary or alternative means
of compensation, including relocation with adequate state assistance.
According to Article 92(Environmental Objectives) of the FDRE Constitution it is provided as follows:
 Government shall endeavor to ensure that all Ethiopians live in a clean and healthy
environment.
 The design and implementation of programmes and projects of development shall not
damage or destroy the environment.
 People have the right to full consultation and to the expression of views in the planning and
implementation of environmental policies and projects that affect them directly.
 Government and citizens shall have the duty to protect the environment.
The Constitution clearly adopts the principle of:
 sustainable development;
 public participation;
 the right to clean and healthy environment; and
 the duty to protect the environment;

Theoretical Background

 There is no unified and comprehensive body of Environmental Law in Ethiopia and in most
developing countries.
 Environmental Law is a growing field of Law.
 The scope of “environment” is wide enough to include everything.
 Environment may be considered as everything surrounds us. It is composed of both living &
nonliving things.
 For our discussion, it is better to understand the concept of “sustainable development”.
 Definition of & Approaches to Sustainable Development
 Sustainable Development means development that meets the needs of the present
generation without compromising the ability of future generation to meet their own needs.
 There are four elements embodied in this broad definition:

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 The need to preserve natural resources for the interest of future generation. It
contains intergenerational equity. This shows distribution (of natural resources) in
terms of time.
 It embodies the principle of sustainable use (of natural and environmental
resources).
 It embodies intra generational equity. That is the distribution of natural resources
among the members of the present generation. This is distribution (of natural
resources) in terms of space.
 It embodies integration of environment with development. It means development
activities should go harmoniously with the environment.
 The last one is crucial and relevant to the Construction Project.
 Based on the definition given to Sustainable Development there are the following
approaches/scenarios:
 Strong Sustainability;
 Weak Sustainability; and
 Intermediate Position/ Scenario;
 According to strong sustainability we should leave future generations the same
environmental resources as we ourselves inherited. It does not consider the issue of non-
renewable energy.
 According to weak sustainability distinctive justice between generations requires each
generation to pass onto the next generation an equivalent or better total stock of overall
resources including infrastructure, knowledge and technological capacity than it inherited. It
allows the degradation of the environment as long as we substitute man-made capital or
leave a fund to an equivalent value so that the total level of consumption remains the same.
 According to the intermediate position, we must leave our successors the same options that
are available to us. For example, if we use up oil we must provide alternative energy sources.
 The Ethiopian Constitution adopted the intermediate position.

The Statutory Framework


 The following statutory legislations constitute the legal framework in Ethiopia.
 These are:
 Environmental Protection Organs Establishment Proc. No. 295/2002;
 Environmental Impact Assessment (EIA) Proc. No. 299/2002;

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 Environmental Pollution Control Proc. No. 300/2002;


 The institutional framework is provided as follows:
 The Office of the Prime Minister;
 The Environmental Protection Council;
 The (Federal)Environmental Protection Authority;
 The Regional Environment Protection Institutions;
 The Environment Protection Institutions of the City of Addis Ababa & Dire Dawa;
 The Environmental Unit within the organizational set up of the relevant sectoral
institutions;
 The EIA Proc. (No. 295/2002) is directly relevant to the Construction Project.
 Legal Definition of Environment : Legally, i.e., as per Proc. No. 295/2002, 299/2002 &
300/2002, Environment have been defined as follows:
 “Environment means the totality of all materials whether in their natural state or modified
or changed by humans, their external spaces and the interactions which affect their quality
or quantity and the welfare of human or other living things, including but not restricted to,
land, atmosphere ,weather and climate, water, living things, sound, odor, taste, social factors,
and aesthetics.
 From the legal definition given to Environment, we may figure out the very fundamental
components of the Environment.
 They may, broadly, classified in to the following three major parts: The Social (Human )
Environment; The Physical Environment; The Biological Environment; and
 The categorization of Environment in to such components has a practical significance. The
legal framework including international agreements is also dependent on such classification.
 Environmental protection has also international dimension (ex. Climate Change, Ozone
Depletion, Movement of Hazardous Waste, …)
 Impact Assessment According to the EIA Proc. Impact, has been defined as follows:
“Impact” means any change to the environment or to its component that may affect human
health or safety, flora, fauna, soil, air, water, climate, natural or cultural heritage, other
physical structure, or in general, subsequently alter environmental, social, economic or
cultural conditions.
 Environmental Impact Assessment: According to the EIA Proc. it has been defined as
follows:

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“Environmental Impact Assessment” means the methodology of identifying and evaluating in


advance any effect, be it positive or negative, which results from the implementation of a
proposed project or public instrument.”
 There are, thus, two types of EIA studies. Project Environmental Impact Assessment (
PEIA);and Strategic Environmental Impact Assessment ( SEIA);
 SEIA shall be undertaken in relation to Public Instruments, i.e. in relation to a policy, a
strategy, a programme, a law or an international agreement.
 PEIA shall be undertaken in relation to Development Projects like the Construction Project.
 According to the EIA Proc. project has been defined.
 “Project” means any new development activity under any category listed in any directive
issued pursuant to this proclamation, major expansion or alteration or any existing
undertaking, or any resumption of work that had been discontinued.”
 The impact assessment study shall be carried out by the project developer or owner
(proponent), be it public or private investor.
 The stages through which, generally, such study should pass are the following:
 Identification;
 Defining the scope of the study;
 Impact assessment;
 Evaluation;
 There is also a public hearing, to implement the public rights of participation.
 The final approval of the PEI Study shall rest with appropriate federal or regional or
municipal (in case of Addis Ababa & Dire Dawa) environmental institutions.
 In case of “federal” projects by the Federal Environmental Protection Authority.
 Such distribution of approval power is provided in the Proc.
 There is also a Guideline, which enumerates list of development projects which should
undergo through the EIA process.
 EIA is thus one of the mechanisms or tools to ensure the realization of the principle of
Sustainable Development.
 This is also related with the concept of sustainable construction.
 Pollution Control: According to Pollution Control Proc. No. 300/2002;
 “Pollution” means any condition which is hazardous or potentially hazardous to human
health, safety, or welfare or to living thing created by altering any physical, radioactive,
thermal chemical, biological or other property of any part of the environment in

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contravention of any condition, limitation or restriction made under this Proc. or under any
other relevant law.
 Pollution may result by any substance (pollutant) either in solid or liquid or gaseous form.
 The policy reason to enact such Law is:
 Some of the social & economic development endeavors may be capable of causing
environmental impacts that might be detrimental to the development process itself;
 The protection of the environment in general and the safeguarding of human health
and wellbeing , and the preserving of biota is the duty and responsibility of all; and
 It is essential to prevent or at least minimize to acceptable levels pollution resulting
from economic development through appropriate measures;
 To fully enforce this Proc. there is a critical pre-requisite to be fulfilled: the enactment of
Environmental Standards.
 These standards are necessary to determine pollution with respect to water pollution, air
pollution, soil contamination, noise pollution, atmospheric pollution…
 There is also a need to establish a well-equipped Environmental Laboratory.

2.2.2.1. Environnemental Impact Assessment Proclamation


(Proclamation No.299/2002)
Considerations to Determine Impact
1. The impact of a project shall be assessed on the basis Of the size, location, nature, cumulative
effect, trans-regional effect, duration, reversibility or irreversibility or other related effects of the
project.
2. The Authority or the relevant regional environmental agency shall err on the side of caution
while determining the negative impact of a project having both beneficial and detrimental
effects, but which, on balance, is only slightly or arguably beneficial, and thus determine that it Is
likely to entail a negative significant impact.
Projects Requiring Environmental Impact Assessment
1. Every project which falls in any category listed in any directive issued pursuant to this
Proclamation shall be subject to environmental impact assessment.
2. Any directive provided underSubArticle1ofthis Article shall, among other things, determine
categories of:
A. Projects not likely to have negative impacts, and so do not require environmental impact
assessment;
B. Projects likely to have negative impacts and thus require environmental impact assessment.

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Trans-Regional Impact Assessment


1. A proponent shall carry out the environmental impact assessment of a project that is likely to
produce a trans regional impact in consultation with the communities likely to be affected in any
region.
2. The regional environmental agency in the region where a project with likely trans regional
impact is being initiated shall ensure the submission of the environmental impact study report of
the project to the Authority.
3. The Authority shall, prior to embarking on the evaluation of an environmental impact study
report of a project with likely trans-regional impact, ensure that the communities likely to be
affected in each region have been consulted and their views incorporated.
Duties of a Proponent
1. A proponent shall undertake an environmental impact assessment, Identify the likely adverse
impacts of his project, incorporated the means of their prevention or containment, and submit to
the Authority or the relevant regional environmental agency the environmental impact study
report together with the documents determined as necessary by the Authority or the relevant
regional environmental agency.
2. A proponent shall ensure that the environmental impact of his project is conducted and the
environmental impact study report prepared by experts that meet the requirements specified
under any directive issued by the Authority.
3. The cost of undertaking an environmental impact assessment and preparing an environmental
impact study report shall be borne by the proponent.
4. When implementing his project, a proponent shall fulfill the terms and condition of
authorization.
Environmental Impact Study Report
1. An environmental impact study report shall contain sufficient information to enable the
Authority or the relevant regional environmental agency to determine whether and under what
conditions the project shall proceed.
2. An environmental impact study report shall contain, as a minimum, a description of:
A. the nature of the project, including the technology and processes to be used;
B. the content and amount of pollutant that will be released during implementation as well as
during operation;
C. source and amount of energy required for operatioin;
D. information on likely trans-regional impacts;

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E. Contingency plan in case of accident; and


F. characteristics and duration of all the estimated direct or indirect, positive or negative impacts.
G. Measures proposed to eliminate, minimize, or mitigate negative impacts;
H. procedures of self-auditing and monitoring during implementation and operation.
Review of Environmental Impact Study Report
1. An environmental impact study report that is submitted to the Authority or the relevant regional
environmental agency for review shall include a brief statement summarizing the study in non-
technical terms as well as indicating the completeness and accuracy of the information given in
the study report.
2. The Authority or the relevant regional environmental agency shall, after evaluating an
environmental impact study report by taking into account any public comments and expert
opinions, within 15 working days:
 approve the project without conditions and issue authorization if it is convinced that the project
will not cause negative impacts;
 approve the project and issue authorization with conditions that must be fulfilled in order to
eliminate or reduce adverse impacts to insignificance if it is convinced that the negative impacts
can be effectively countered, or
 refuse implementation of the project if it is convinced that the negative impact cannot be
satisfactorily avoided.
Implementation Monitoring
1. The Authority or the relevant regional environmental agency shall monitor the implementation
of an authorized project in order to evaluate compliance with all commitments made by, and
obligations imposed on the proponent during authorization.
2. When the proponent fails to implement the authorized project in compliance with the
commitments he entered in to or obligations imposed upon him, the Authority or the relevant
regional environmental agency may order him to undertake specified rectification measure.
3. Any other authorizing or licensing agency shall, in tandem with the Authority’s or the relevant
regional environmental agency's decision to suspend or cancel any authorization to implement a
project, suspend or cancel the license it may have issued in favor of the project.
Offences and Penalties
1. With out prejudice to the provisions of the Penal Code, any person who violates the provision of
this Proclamation or of any other relevant law or directive commits an offence and shall be liable
accordingly.

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2. Any person who, without to obtaining authorization from the Authority or the relevant regional
environmental agency, or makes false presentations in an environmental impact assessment
study report commits an offence and shall be liable to a in of not less than fifty thousand birr and
not more than one hundred thousand Birr.
3. Any person commits an offence if he fails to keep records or to fulfill conditions of authorization
issued pursuant to this Proclamation and shall be liable to affine of not less than ten thousand
Birr and not more than twenty thousand Birr.

2.2.3. Employment Law


The employment law generally regulates the contractual relationship between the employer & the
employee.
As labor is one of the critical inputs to the Construction Project, it is worthwhile to mention some
important aspects of same.
Generally, there are two distinct employment laws:
 Labour Law; and
 Public Service Law;
Both Laws have some public law character, even though the relationship seems private in nature. Most
of the conditions of work are governed by law instead of the Contract of Employment.
The Construction Project may employ work force for the realization of the Project, specially based on
Labour Law.
2.2.3.1. The Labor Law

Employing & administering workers under the Labour Law brings with it certain peculiar environment
& legal consequences. The legal framework is provided under: Labour Proclamation No, 377/2003;
Labour Proclamation (Amendment) No. 466/2005;

The parties to the Contract of Employment are “Employer” & “Worker”


The Contract of Employment shall contain: The type of employment; The place of work; The rate of
wages; Method of calculation of the wage; Manner and interval of payment; The duration of the Contract
of Employment; and It shall not lay down less favorable conditions for the employee than those
provided for by law, collective agreement or work rules;
The duration of the Contract of Employment could be for indefinite period of time (see Article 9 of the
Proc.) or for definite period or specified piece of work. (see Article 10 of the Proc.)

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The specified piece of work or definite period Contract of Employment is highly relevant for the
employment of Workers for the Construction Project.
2.2.3.2. The Public Service Law
 The legal framework is provided under Federal Civil Servants Proc. No. 262/2002;
 This law may not apply for the Construction Project. We may not discuss it, unless there is a special
interest.
 Certain conditions of work much different from that of the Labour Law.
 The institution responsible for the administration or the supervision of this law is the Federal Civil
Service Agency.
2.2.3.3. The Institutional Framework
 The following institutions are part of the institutional framework. Because of the tripartite
relationship that exists in the sector the institutional framework presents a unique feature.
 These are;
 The Ministry of Labour & Social Affairs;
 The Labour/ Trade Union, the relevant Federations, the Confederation;
 The Employers’ Associations;
 The Labour Courts;
 The Labour Relations Board;
 Labour Conciliation Forum;
 Labour Arbitration Forum;
 The Labour Advisory Board;
 Other relevant institutions;

2.2.4. Building Regulations

Recently, the Federal Government has issued a specific legislation in relation to building. This legislation
is called the Ethiopian Building Proclamation No. 624/2009. The legislation partially repeals Articles 8-
Article 14 of the Urban Zoning & Building Permit Proc. No. 316/1987.

The policy rational, as provided in the preamble of the said legislation, is as follows: “Whereas, it has
been found necessary to determine the minimum national standard for the construction or modification of
buildings or alteration of their use in order to ensure public health & safety;”

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The stated policy objective going to be achieved through the following regulatory enforcement at
different phases of the project or construction i.e. before construction; during construction; & on
completion of construction;

This is done through the following regulatory measures: i.e. through:


 (construction) permit system before construction; see Article 9;
 (construction) inspection system during construction; see Article 16; and
 occupancy permit system for specified building category; see Article 18; on completion;

The Pro. Regulates the design of the structure in terms of different design aspects i.e. before issuing the
construction permit i.e. in terms of;
 structural design;  sewerage design;
 electrical design;  storm water management;
 architectural design;  industrial effluent management system;
 water supply & sanitary design;  solid waste treatment;
 Fire codes.
The Pro. Regulates by providing precautionary measures during the construction phase as follows: see
Article 31:
 not impairing the safety of people, other construction & property;
 by taking adequate precautionary measure to ensure that the safety & stability of such
property or services; this is the case where excavation related to a building is likely to
impair the safety & stability of any property or service;
 maintaining any excavation work safe;
 obtaining prior written authorization of the urban administration(for such preventive &
precautionary measures) in case where the safety or stability of any property or service
is likely to be impaired by an excavation;
 the load of any newly constructed foundation not to affect existing foundations, utility
lines or any other structure;

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2.2.5. Public Utility law


Public utilities provide essential services to the general public. The following are major public utilities:
 Water supply services;
 Sanitation or Sewerage services;
 Telecommunication services;
 Electric power services;
 Others;
The network of the utilities shall be protected from damage by any person.
The reason or the public policy is clear. Their service interruption may cause:
 Inconvenience to the general public or, at least to the users of such services;
 Damage to the economy: this is three fold:
 loss of revenue to the public enterprise in question;
 loss of economic gain by specific customers( for ex. Industries & other
commercial undertakings,) which use water for the production of goods &
the provision of services; and
 economic loss to the country, expending additional but unnecessary foreign
exchange to replace the damaged utility networks;
 Environmental consequences, in case of causing damage to the sewerage lines( both
the trunk & secondary sewerage lines);
 National security problem, specially in relation to electric & telecommunication
networks;
 Deterioration of the quality of life of the public;
 Creating negative image by the international community specially in the Capital City;
2.2.5.1. The Statutory Framework
 There are specific laws which prohibit and sanctions damage to the utility networks.
 These are:
 Protection of Telecommunications & Electric Power Networks Proc. No. 464/2005;
 The Addis Ababa Water & Sewerage Re-establishment Proc. No. 10/1995;
 The Civil Code; (for extra-contractual liability, i.e. compensation); see Article 2027-
Article 2178;
 The Criminal Law; ( for criminal liability);
 According to Article 3 (1) & (3) of Proc. No. 464/2005, it is provided as follows:

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 Telecommunications & electric power networks all over the country are hereby
provided special protection by the proclamation.
 Any federal and regional city administrative body shall ensure whether there are
telecommunications or electric power networks prior to issuance of construction
license and any person who acquired license, shall also guarantee that no damage
shall occur on telecommunications and electric networks.
 According to Article 8(3)-Prohibition- of Proc. No. 10/1995;
 No person shall construct any construction works, build a fence or plant trees or carry
such other works on already installed water and/or sewer lines and/or on a vacant plot
of land up to three(3) meters distance to the right & left from the point on which water
and/or sewer lines are installed.
 The protection of utility lines, especially in the urban setting, may involve the taking of diverse
supportive measures.
 The measures may have legal or technical or administrative dimension.
 Strictly following and enforcing the structure plan & local development plan of a city, if
any;
 Giving due attention during the study, design & construction of any construction works
by consultants and by contractors;
 Establishing a data bank( integrated GIS system) of utility lines in the city by the permit
provider in consultation with the owners of the utility lines;
 Coordinating, as far as possible, the plan & design of utility lines projects by public utility
institutions themselves.

2.2.6. The Public Finance Law


2.2.6.1. The Public Procurement
1. Theoretical background
Public Procurement refers to the acquisition by public bodies, such as government departments and
municipalities, of the various goods and services that they need for their activities.
The procurement is effected by using public funds or money.
Procurement has three stages: procurement planning, tendering and contract administration
Procurement Planning
 Any procurement begins with the planning decision to make the purchase.

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 This will involve, in the first place, deciding whether there is a need for the particular
goods and services.
 It will also involve ensuring that the purchaser has the legal power to undertake the
(procurement) transaction, obtaining any relevant approvals within the government
hierarchy and arranging the necessary funding.
The Tendering, Selection & Contract Phase
 The second phase is then to choose which firm is to be the provider of the goods or
services, and to conclude a contract with the selected party.
Contract Administration
 This includes supervising performance to ensure that the promised goods and
services are properly delivered, accepting performance, arranging for payment of the
contractor, dealing with disputes, and various other contractual matters.
The Public Procurement, thus, focuses on the second phase i.e. the tendering, selection & the conclusion
of a contract.

2. The Statutory Framework


The Federal Government issued a specific legislation to regulate the Public Procurement process.
The legislation called: The Ethiopian Federal Government Procurement and Property Administration
Proc. No. 649/2009.

3. Methods of Procurement
 The Proc. identifies the following methods of procurement for local & international
procurement, namely,
 For Local
 Open Tendering;
 Request for Proposals;
 Two-stage Bidding;
 Restricted Tendering;
 Request for Quotation;
 Direct Procurement;
 For International
 Open International Tendering;
 Other International Procedure;
(Such as restricted bidding or request for proposal)

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1) Open Tendering
 It is regulated under Article 35- Article 48 of the Proc.
 It involves, generally,
 Making advertisement for all interested bidders through Invitation for Bids;
 The issuance of Instruction to Bidders which contains:
The preparation & submission of Bids by the Bidders;
Receiving, opening, examination, evaluation and comparison of Bids by the
Procuring Entity;
Notification of Award & signing of Contract with the winning Bidder;
 The provision of Bid Documents;
 Other important guidelines such as the provision of Bid Security to bid, Contract Security, if
the bidder is successful & conditions.
 Please, carefully read the provisions of Article 35-Article 48 for full information.
2) Restricted Tendering (Article 49 & Article 50)
Restricted Tendering may be allowed if the following conditions are met:
 The goods, works or services, by reason of the highly complex or specialized nature, are
available only from a limited number of suppliers; or
 The time and cost required to examine and evaluate a large number of bids would be
disproportionate to the value of goods, works or services to be provided;
 It is the same as Open Tendering except with the following exception.
 The Invitations for Bids is addressed to a limited number of qualified candidates which have
declared an interest in submitting bids.
 The number of candidates invited should be made, if possible, sufficient to ensure competition;
 Procuring Entities shall select candidates to be invited to bid from among those registered in the
suppliers list;
 Bid Security may or may not be asked;
3) Direct Procurement Procedure (Article 51 & Article 52):
The conditions to be there for single source procurement are the following:
 The goods, works or services can be supplied or provided only by one candidate;
 For additional deliveries of goods by the original supplier;
 When additional works which were not included in the initial contract have through
unforeseeable circumstances become necessary;

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 For new works consisting of the repetition of similar works which conform to a basic
project of which an initial contract was awarded on the basis of open or restricted
bidding;
 For continuation of consultancy services, where the original contract has been
satisfactorily performed and the continuation is likely to lead to gains in economy &
efficiency;
 For purchase of goods made under exceptionally advantageous conditions which only
arise in the very short term;
 The need is one of pressing emergency;
4) Request for Proposals (Article 53 & Article 54)
This is the case where the Procuring Entity seeks to obtain consultancy services or contracts for which
the component of consultancy services represents more than 50% of the amount of contract. Requests
for Proposals shall be addressed to not less than seven candidates selected by the Procuring Entity.

The Request for Proposals shall contain all the required information as provided under Article 46(2) of
the Proc.
5) Request for Quotations (Article 55 & Article 56)
Request for Quotations may be used for the purchase of readily available goods, or for procurement of
works or services for which there is an established market. Please see also Article 47 for detail
regulations of the subject.

6) Two-Stage Bidding Conditions & Procedure (Article 57 & Article 58)


 When it is not feasible for the Procuring Entity to formulate detailed specification for the goods
or works or in the case of services to identify their characteristics and, in order to obtain the
most satisfactory solution to its procurement need, It seeks bids, proposals or offers as to
various possible means of meeting its needs;
 In the first stage of the two-stage bidding proceedings, initial tenders containing their
proposals without a tender price shall be submitted;
 In the second stage of the two-stage tendering proceeding, the procuring entity shall
invite suppliers whose bids have not been rejected to submit final tenders with prices
with respect to a single set of specification;

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2.3. Construction business


2.3.1. Definition of Business Organizations
Definition of Business
According to Article 124 of the Commercial Code:
“A business is an incorporeal movable consisting of all movable property brought together and
organized for the purpose of carrying out any of the commercial activities specified in Article 5 of the
Commercial Code.”

Elements of Business
Elements of business divided in to two major categories: Corporeal elements and incorporeal elements
 Corporeal Elements
Equipment;
Goods;
 Other tangible things;
 The said equipment and Goods should be used to operate the activity of trade
or the business. Immovable properties are not part of the business.
 Like the building in which the business is conducted.
 Incorporeal Elements
According to Article 127 of the Commercial Code, the incorporeal elements of a business
are consisted of;
 Mainly of a Goodwill; and
 Other incorporeal elements ;
 The Trade Name;
 The Special designation under which the trade is carried on; the right to
Lease the premises in which the trade is carried on ;
 Patents or Copyrights;
 Such special right as attached to the business itself and not to the trader;

Classification of Business Organizations


According to the Commercial Code the following business organizations are recognized.
 Ordinary Partnership;  Limited Partnership;
 Joint Venture;  Share Company; and
 General partnership;  Private Limited Company;

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Ordinary Partnership
 It is regulated under Article 227-270;
 It is an organization of a relatively small number of persons;
 It may not be a commercial business organization;
 The members do not have limited liability;
 Membership interests are not freely transferable;

Joint Venture
 It is regulated under Article 271-279;
 It is usually formed with relatively small number of persons;
 It is formed for a limited purpose or short period of time;
 It has no legal personality;
 It is sometimes called a silent partnership;
 Its existence may not be disclosed to third parties;
 Membership is not freely transferable;
 The liability of the members depends on the memorandum of association;

General Partnership
 It is regulated under 280-295;
 It is usually formed with relatively small number of persons;
 Membership is not freely transferable;
 Its members do not have limited liability;
 It is the most common form of business organization without limited liability;
 It is governed by a substantial number of provisions concerning ordinary partnership as well;

Limited Partnership
 It is governed under Article 296-303;
 It is basically the same as the general partnership, with one exception: one or more (but not all)
of its members have limited liability;
 Membership is not freely transferable;
 It is governed by a substantial number of the provisions on general & ordinary partnership;
 The provisions of Article 296-303 add to those provisions concerning general & ordinary
partnership modifications, which are required by the presence of members with limited liability;

Share Company

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 It is governed under Article 304-509 of the Commercial Code;


 Share Company is fundamentally different from other business organizations;
 All of its members enjoy limited liability;
 Membership is freely transferable;
 It may, although not necessarily, consist of many members(the minimum number of members is
five);
 Share Company is the form usually chosen to operate enterprises, which require vast sums of
money (like Banks, Insurance...);
 Limited liability means the contributor or the share-holder is no more liable beyond its capital
(in cash or in kind) contribution in the company;
 If the liability is unlimited, as in the case of partnerships, the liability of the business partner may
go even to his personal property outside of the contribution (in cash & in kind) that such partner
made to the business;

Formation of Share Company


 The following are the legal requirements for the formation of share companies in
Ethiopia.
 minimum of five members; see Article 307(1) of the Commercial Code;
 minimum initial capital;
 full subscription of the capital;
 payment of 1/4th of the par value of cash shares;
 submission & valuation of contributions in kind;
 adoption of memorandum & articles of association; and
 registration & publicity requirements;
Private Limited Company
 It is governed under Article 510-543;
 This business organization is a mixture of share company & the partnership;
 It is like the Share Company in that all its members enjoy limited liability;
 It is like the Partnership in that It usually has a small number of members(but not exceed 50
members);and
 Its membership interests are not freely transferable;

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2.3.2. Formation, Operation & Dissolution of a Construction Business


The Legal & Institutional Framework
 To do any business including a Construction Business one has to register and secure a business
license.
 The institutional arrangement, in terms of the relevant institutions, which are legally empowered to
register and issue the business license, is organized at the Federal, Regional and Municipal,
specially in relation to the City of Addis Ababa and the City of Dire Dawa, level.
 At the Federal level the Ministry of Trade and Industry, as per Article 15(5) of Proc. No. 471/2005
and Proc. No. 67/1997, Regulations No. 13/1997 including the amendments thereof, is empowered
to undertake a commercial registration and to issue a business license.
 The following institutions are relevant for the Construction Business to be formalized and
operative.
 The Federal Investment Agency; (To secure investments permit, to be entitled any
incentives)
 The Ministry of Transport & Communication;(To secure registration & plate number for
heavy trucks)
 Ministry of Works & Urban Development; (To secure professional competence certificate
plate for construction equipment)
 Federal Revenues & Customs Authority; (To be registered as tax payer), (To secure
investment incentives, if any)
 Public Procurement Agency; (To get registered in the supplier’s list)
 Ministry of Water Resources (To secure professional competence certificate in case of water
works)

1) Registration of Business
Registration is making a written record in the central or local register office information, which shows
the general picture of a sole trader or a business organization on the basis of statutory requirements to
be fulfilled.
Purposes of Registration
 The general purpose of registration is to give reliable & accurate information on the
activity & position of the business.
 The detail purposes of registration are as follows:
 to plan business activity;
 to facilitate a proper system of business & control;

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 to give statistical information on business at a certain locality or at national


level;
 to issue certificate of title or qualification and as a result protection of third
parties either from deception or from wrong information;
Effects of Registration & Legal Personality

 The act of registration, confer on business organizations, except in case of joint venture, a
legal personality.
 The general effect of acquiring legal personality is to be entitled to the attributes of
personality i.e. to rights, duties/obligations and/or privileges.
 The detail effects of acquiring legal personality with respect to business organizations are
as follows;
 to sue or to be sued;
 the property of the business organization is not available to satisfy
judgments against its member’s on their personal debts;
 no set-off between debts owed by third parties to individual members &
that of the business organization;
 up on the death of the member, his heirs inherit no rights of ownership
over the property belonging to the business organization;
 a business organization may be put into bankruptcy or employ a scheme of
arrangement;
 the business organization is primarily liable to pay the taxes on its
property, income & taxable activities;
 acquiring rights & incur liabilities by its agents as per Article 216 of the
Commercial Code;

Legal Regulation of Business Registration

According to Article 5(1) of Proc. No. 67/1997


No person shall engage in any commercial activity unless registered in a commercial register.
There are two types of registration: Principal & Summary Registration.
 Principal Registration
 The following two provisions (Article 5(2) & (3)) of Proc. No. 67/1997,
respectively, may give a fair understanding about Principal Registration.

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 Any person other than those principally registered by the Ministry (of
Trade & Industry), shall principally registered in the place where his head
office is situate.
 Any person shall principally register only once even though he carries on
different commercial activities in different Regions.
 Summary Registration
 Article 5(4) may give us the notion of Summary Registration.
 Any person, who establishes branches in several Regions outside the place
where he is principally registered, shall be summarily registered in those
Regions by making a reference to the principal registration.

2) Business License

The concept of license is basically relevant in terms of private law that is in case of property law (ex.
patent or otherwise), and public law that is in case of licensing business organizations.
Licensing in terms of public law means an act of conferring or granting a right to do some activities like
business or some profession.

Purposes of Licensing
In terms of public law, the purposes of licensing are the following:
 to collect revenue;
 restrict the number of persons who exercise a certain activity when it is
desirable in the public interest;
 to ensure that the activity is carried on in particular manner in the interest
of public health, safety or the preservation of local amenities;
 to obtain a record of persons engaged in particular activities;
 to enable a person that he is eligible to engage in a certain activity;
Legal Regulation of Licensing
According to Article 21(1) of Proc. No.67/1997
“No person may carry on commercial activity without obtaining a valid business license.”
 The institutions to issue the business license are the respective institutions:
 the Ministry of Trade & Industry;
 the Regions;
 the City of Addis Ababa; and

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 the City of Dire Dawa;


 The very important & critical condition is to secure a professional qualification or certificate of
competence from the competent public body.
 There are legally designated public bodies to grant or deny this certificate. These are:
 The Ministry of Works and Urban Development (on the basis of Article
18(1) (d) of Proc. No. 471/2005) with respect to engineers and architects,
for the contractors and consultants to those operating in more than one
Regional State.
 The Ministry of Water Resources (on the basis of Article 8(1) (a) of Proc.
No. 197/2000) to those contractors and consultants to engage in Water
Works design and construction.
 The business license, if issued, is valid for one year and has to be renewed within six months of
the given fiscal year. If the business license not renewed within the given time framework there
is a financial penalty attached to it.

Suspension of license
Where the business license holder fails to rectify certain shortcomings as prescribed by Law, the
business license shall be suspended.
The following measures shall be taken against the business during suspension.
 Temporal closure of the business, if the business found to be dangerous to public
health, to the national economy.
Cancellation of license
The following are grounds for the cancellation of the license.
 If the business license was issued or renewed on the basis of false information;
 If the license holder uses the license for the purpose other than for which it was
issued;
 The use of the license for improper commercial activities;
 If the license holder has become bankrupt; (The Bankruptcy Proceeding is
separately provided under Article 974-1170 of the Commercial Code.)
 if the license holder ceased to operate his business;
 If the license holder has failed to renew his license for the reason other than force
majeure;
Sanctions of license

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The following are the legal sanctions.


 Carrying on business without having a business license: fine equal to double the
revenue estimated to have been obtained by the business person & imprisonment 3-
4 years;
 Securing or renewing a registration certificate or a business license by supplying
false information: fine equal to double the revenue estimated to have been obtained
by the business person & imprisonment 5-7 years;
 In case of other violations provided under the Proclamation, Regulations and Public
Notice: fine Birr3,000-Birr 5,000 & 6months-1 year imprisonment;

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Check points for the chapter-2


2. Construction laws and regulations
2.1. INTRODUCTION
 CONSTRUCTION
 Construction Law
 Stakeholders in the Construction Industry
2.2. Construction projects and Public Laws
2.2.1. Land Administration law
2.1.1.1. The Expropriation Proceeding
2.1.1.2. The Compensation
2.2.2. Environmental Law
2.1.2.1. The Constitutional Framework
2.1.2.2. Theoretical Background
2.1.2.3. The Statutory Framework
2.2.3. Employment Law
2.1.3.1. The Labor Law
2.1.3.2. The Public Service Law
2.1.3.3. The Institutional Framework
2.2.4. Building Regulations
2.2.5. Public Utility law
2.1.5.1. The Statutory Framework
2.2.6. The Public Finance Law
2.2.6.1. The Public Procurement
1. Theoretical background
2. The Statutory Framework
2.3. Construction business
2.3.1. Definition of Business Organizations
 Definition of Business
 Elements of Business
 Classification of Business Organizations
2.3.2. Formation, Operation & Dissolution of a Construction Business
2.1.1.1. The Legal & Institutional Framework
1) Registration of Business
 Purposes of Registration
 Effects of Registration & Legal Personality
 Legal Regulation of Business Registration
2) Business License
 Purposes of Licensing
 Legal Regulation of Licensing
 Suspension of license
 Cancellation of license
 Sanctions of license

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Construction law handout for COTM 4th year regular students

Reference

1. Ethiopian Civil Code


2. Ethiopian Commercial Code:
3. The Ethiopian Federal Government Procurement & Property Administration
(Proclamation No. 649/2009)
4. Ethiopian Building Proclamation (Proc. No. 624/2009)
5. The FDRE Rural Land Administration & Land Use (Proc. No. 456/2005)
6. Environmental Protection Organs Establishment (Proc. No. 295/2002)
7. Environmental Impact Assessment (EIA) (Proc. No. 299/2002)
8. Environmental Pollution Control Proc. No. 300/2002;
9. Investment Proclamation No. 280/2002;
10. Labour Proclamation No, 377/2003
11. Ethiopian Building Proclamation No. 624/2009
12. Protection of Telecommunications & Electric Power Networks Proc. No. 464/2005;
13. The Addis Ababa Water & Sewerage Re-establishment Proc. No. 10/1995;
14. Ministry of Trade and Industry Proc. No. 471/2005 and Proc. No. 67/1997,
15. Finance & Economic Development Bureau or its equivalent, as per Proc. No. 67/1997
16. The Ministry of Works and Urban Development Proc. No. 471/2005)
17. The Ministry of Water Resources Proc. No. 197/2000)

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