Dealing with Construction Permits in Ethiopia

The table below summarizes the procedures, time, and costs to build a warehouse in Ethiopia.

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Data as of: January 2009
Estimated Warehouse Value: USD 334,000
City: Addis Ababa

	Procedure	Time to complete:	Cost to complete:
1	Obtain design approval	60 days	ETB 10,000
2	Obtain consent from neighbors and submit it to municipality	3 days	no charge
3	Obtain bank statement	1 day	no charge
4	Obtain approval of construction	30 days	ETB 600
5	Request and receive excavation inspection from municipality	1 day	no charge
6	Request and receive mid-construction inspection	1 day	no charge
7	Request electricity connection from EEPCo	1 day	no charge
8	Receive electricity inspection from EEPCo	1 day	no charge
9	Obtain electricity connection from EEPCo	28 days	ETB 500
*10	Request water and sewage connection from WSSA	1 day	no charge
11	Obtain water and sewage connection from WSSA	29 days	ETB 4,000
*12	Obtain telephone connection from ETC	30 days	ETB 2,000

* Takes place simultaneously with another procedure.

Procedure 1.: Obtain design approval
Time to complete:: 60 days
Cost to complete:: ETB 10,000
Name of Agency:: Municipality (Building Design Department)
Comment:: The agency involved is the Building Design Department, which is part of the municipality. BuildCo will submit the building plans and will receive a form to be filled out by the owners of the neighboring plots. BuildCo must obtain the neighbors’ consent before obtaining the design approval.

Procedure 2.: Obtain consent from neighbors and submit it to municipality
Time to complete:: 3 days
Cost to complete:: no charge
Name of Agency:: Municipality
Comment:: The company must get a written statement from the neighbors, stating that there are no land disputes on the plot where the warehouse will be built.

Procedure 3.: Obtain bank statement
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Commercial Bank
Comment:: BuildCo must show proof of sufficient funds to build the warehouse. A commercial bank can provide this proof if the company has enough funds in its bank account or if the company is able to obtain a loan.

Procedure 4.: Obtain approval of construction
Time to complete:: 30 days
Cost to complete:: ETB 600
Name of Agency:: Municipality
Comment:: After the design is approved, the company must submit the bank statement described above and check the zoning requirements to obtain approval for the construction. After this approval is granted, construction can begin.

Procedure 5.: Request and receive excavation inspection from municipality
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Municipality
Comment:: At the beginning of the construction, BuildCo must inform the municipality (by phone) about the initial stages of construction. The municipality checks whether the work has been performed according to plan. The wait period between requesting and receiving the inspection depends on the inspectors’ availability. Once the permit is obtained, inspections will occur occasionally without affecting the work.

Procedure 6.: Request and receive mid-construction inspection
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Municipality
Comment:: During construction, the municipality can randomly inspect the building.