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Dealing with Construction Permits in

Ethiopia

Below is a detailed summary of the procedures, time and costs to build a warehouse in Ethiopia. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Ethiopia to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain planning consent

    Agency: Municipality (Subcity Building Design Department)

    According to Part 2, Section 5, Articles 1 and 2 of Building Proclamation No. 624 of 2009, the applicant must secure a planning consent prior to submitting the application for a construction permit. After having received an application for a planning consent a building officer shall grant a written declaration for compliance or noncompliance with the urban planning of the urban center.

    In order to apply for a planning consent, according to Part 2, Section 4 of Regulation No. 243 of 2011, the owner of a building shall fill the form prepared by the urban administration by showing the height and the type of service of the building to be constructed and submit his application attached with the original and a copy of the title deed in order to obtain a planning consent.

    The urban administration shall, in case of a request for planning consent to build a new building, grant:

    • title deed and
    • plan information describing the height and the permitted type of service.

    The building officer will also determine the category of buildings submitted for his approval in accordance with the criteria set within the regulations. For the Doing Business case study, the warehouse would fall under Category B.

    The building officer shall decide the compliance or non- compliance of the application with the urban center and notify the applicant his decision and the reasons thereto, in writing, within three working days.

    With respect to the fees, according to Part 4, Section 24, Articles 2 and 4 of Regulation No. 243 of 2011, there is a service fee of ETB 300 for the planning consent. And the plan review fee is 1/2000 of the project estimate if the project estimate is less than ETB 2,500,000.

    30 days ETB 609
    2

    Obtain consent from neighbors and submit it to the Municipality

    Agency: Municipality (Subcity)

    Once the consent has been obtained, BuildCo must obtain a written statement from the neighbors, stating that there are no land disputes on the plot where the warehouse will be built. This is set in the law - Part 2, Section 3, Articles 2 and 3 of Regulation No. 243 of 2011,

    3 days no charge
    3

    Obtain approval of plans and construction permit

    Agency: Municipality

    The following documents must be submitted in order to obtain the construction approval:

    • application with full name and address of the applicant,
    • permitted service for the building,
    • location of construction,
    • table showing the total area of the floors,
    • planning consent,
    • architectural, structural, sanitary, electrical designs and soil test and structural analysis report for buildings of Category “B”,
    • in addition to the plans required for buildings of Category “B”, fire safety plans and descriptions thereof shall be submitted for buildings of Category “C”,
    • electro-mechanical designs and analysis for buildings using lifts and artificial ventilation (not applicable to the Doing Business case study)
    • number of floors of neighboring buildings below and above ground level and their distance from the boundary lines, and
    • full name, address, signature and a copy of registration certificate of professionals who prepared plan of the building
    • Consent from neighbors

    According to Part 2, Section 6, Article 1 of Regulation No. 243 of 2011, the time limit to review and approve the plans is 7 working days if the building is Category B or 21 working days if Category C.

    With respect to the fees, according to Part 4, Section 25 of Regulation No. 243 of 2011, the plan approval fee is 10% of the plan review fee.

    11 days ETB 61
    * 4

    Hire an external firm to conduct technical inspections and supervision during construction

    Agency: Private Firm

    According to Council of Ministers Building Regulation, Regulation No 243./2011, a private and independent civil engineer must be hired to conduct the technical inspection and supervision of construction. The rate of civil engineer depends on the type of engineer and they receive a monthly pay.
    For the Doing Business case study, the construction is expected to last 7 months.

    1 day ETB 105,000
    5

    Notify the Municipality of the commencement of works

    Agency: Municipality

    According to Article 13 of Building Regulations 243 of 2011, Any person who has an approved plan for category B and C buildings shall notify to the building officer , in writing , the starting date of each stage of work before five working days of such starting date. The warehouse in the Doing Business case study is considered a category B.

    1 day no charge
    6

    Request and receive inspection upon completion of foundation

    Agency: Municipality

    According to Part 2, Section 13 of Regulation No. 243 of 2011, any person who has an approved plan for category “B” and “C” buildings shall notify to the building officer, in writing, the starting date of each stage of work before five working days of such starting date.

    The stages of work for which an advance notice is required in case of new construction shall be in the following order:

    a) on completion of surveying work for the foundation;
    b) before starting concrete cast for grade beam;
    c) before starting floor concrete works at all levels;
    d) before starting final concrete works;
    e) during testing of completed sanitary, electrical and electro mechanical installations;
    f) other stages of work required by the building officer based on the type and method of construction.

    Normally the Municipality will come to inspect during the first 4 phases noted above. The inspectors are usually very prompt, and if the builder times it well, there is no delay caused by inspections. The construction manager keeps a site book, and the inspector signs in the site book at every inspection.

    With respect to the fees, according to Part 4, Section 26, Article 2 of Regulation No. 243 of 2011, the inspection fees per inspection is ETB 400

    2 days ETB 400
    7

    Request and receive inspection before starting concrete cast for grade beam

    Agency: Municipality

    2 days ETB 400
    8

    Request and receive inspection before starting floor concrete works

    Agency: Municipality

    2 days ETB 400
    9

    Request and receive inspection before starting final concrete works

    Agency: Municipality

    2 days ETB 400
    10

    Request water and sewage connection from WSSA

    Agency: Addis Ababa Water Supply and Sewage Authority (WSSA)

    The request for a water and sewerage connection from Addis Ababa Water Supply and Sewerage Authority must be done in person. A copy of title deed of property must be attached to the application form. Usually, Addis Ababa WASA conducts a site visit to inspect the location of the property and to decide on the specifics of the connection.

    1 day no charge
    11

    Receive inspection for water and sewage

    Agency: Addis Ababa Water Supply and Sewage Authority

    1 day no charge
    12

    Obtain water and sewage connection from WSSA

    Agency: Addis Ababa Water Supply and Sewage Authority (WSSA)

    75 days ETB 8,000

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 7.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections by external engineer or firm; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 0.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Final inspection is not required by law. 0.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection does not always occur in practice. 0.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 2.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering. 1.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management. 1.0