Bahir Dar NDP UDP - Final Report

April 2016
Egis International in association with IAU-IdF and UrbaLyon, NDP Report of Abay Mado, Bahir Dar, April 2016
Table of Contents
Table of Contents i
List of Maps iv
List of Figures v
List of Graphs vi
List of Tables vi
List of Acronyms vii
Acknowledgements viii
Executive Summary ES1
1. Introduction 1
1.1 General Background ............................................................................ 1
1.2 Objectives ............................................................................................ 2

1.3 The Planning Area................................................................................ 3
1.4 The Planning Method ........................................................................... 6
1.5 Scope of the Study ............................................................................. 10
1.6 Organization of the Report ................................................................. 10
2. Assessment of the Existing Situations 11

2.1 Socio-Economic Analysis ................................................................... 11
2.1.1 Demographic Characteristics .................................................. 11
2.1.2 Social Structure and Cultural Practice .................................... 12
2.1.3 Economic Potentials ............................................................... 12
2.2 The Physical Site Analysis ................................................................. 17
2.2.1 Land Use Assessment ............................................................ 17

2.2.2 Topography ............................................................................. 20
2.2.3 Climate .................................................................................... 20
2.2.4 Geology, Soils and Hydrology ................................................. 21
2.2.5 Key Natural Features with Impact on Planning ....................... 22
2.3 The Site Development ........................................................................ 23

2.3.1 Infrastructure ........................................................................... 23
2.3.2 Utilities .................................................................................... 23
2.3.3 Public Amenities ..................................................................... 24
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2.4 Policy Analysis ................................................................................... 25

2.4.1 Assessment of Relevant Policy and Planning Documents ...... 25
2.4.2 Local Capacity and Implications .............................................. 29
3. Defining the Program 31

3.1 Development Potentials and Constraints of the NDP Site .................. 31
3.1.1 SWOT Analysis ....................................................................... 31
3.1.2 Identification of Key Planning Issues ...................................... 32
3.2 Development Goals and Objectives ................................................... 32

3.2.1 Vision ...................................................................................... 32
3.2.2 Goal and Objectives ................................................................ 33
3.3 Development Programs and Concept ................................................ 33
3.3.1 The Proposed Development Framework................................. 33
3.3.2 Concept Plan .......................................................................... 36
4 The Neighborhood Development Plan 44

4.1 General Background .......................................................................... 44
4.2 Zoning ................................................................................................ 46
4.3 Land Use Plan .................................................................................... 47
4.4 Zonal Land Use Map .......................................................................... 50
4.5 Land Use Regulation .......................................................................... 51
5 Urban Design: Introduction 58

5.1 Background and Justification of the Location ..................................... 58
5.2 Site Location ...................................................................................... 58
5.3 The Urban Design Site Selection Criteria ........................................... 59
6 The Existing Morphology 60

6.1 Topography ........................................................................................ 60
6.2 Building Characteristics ...................................................................... 60
6.3 Street Characteristics ......................................................................... 61
6.4 Street Furniture’s, Green and Open Spaces ...................................... 61
6.5 Design Principles................................................................................ 61
6.5.1 Defining the UD Program ........................................................ 61

6.5.2 The Urban Design Concept..................................................... 62
7 The Urban Design 65

7.1 The Urban Design Proposals ............................................................. 65
7.2 Land Use ............................................................................................ 65
7.3 Road Network..................................................................................... 67

7.3.1 The Networks .......................................................................... 67
7.3.2 Cross Sections ........................................................................ 69
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7.4 Mobility Pattern................................................................................... 73

7.5 Building Morphology ........................................................................... 73
7.5.1 Block Pattern........................................................................... 73

7.5.2 Land Use Regulation .............................................................. 76
7.5.3 Character ................................................................................ 76
7.5.4 Aesthetics ............................................................................... 79
7.6 Public Open Space and Green Areas ................................................ 79
7.6.1 Green Network and Open Spaces .......................................... 79
7.6.2 Parking and Loading Bays ...................................................... 82
8 Physical and Financial Implementation Strategy 85

8.1 Implementation Strategy and its Challenges in Ethiopia .................... 85
8.2 Key Assumptions for Implementation Strategy ................................... 85
8.2.1 Participation in the Design and Implementation of NDPs ........ 85
8.2.2 Prioritization of Development Phasing .................................... 86

8.2.3 Estimation of Public Investment Cost ...................................... 86
8.2.4 Public Private Partnership for Developing NDPs .................... 86
8.3 Background and Pre-requisites .......................................................... 89
8.4 Business Plan..................................................................................... 90
8.4.1 Background ............................................................................. 90
8.4.2 Project Schedule and Phasing for Roads and Networks ......... 93
8.4.3 Financial Parameters under Alternative One .......................... 95
8.4.4 Financial Parameters under Alternative Two ........................ 105
8.4.5 Source of Financing .............................................................. 110
8.4.6 Short Appraisal of the Two Alternatives ................................ 113
9 Project Implementation Scheme 115

9.1 Capacity Building and Institutional Arrangements ............................ 115
9.1.1 Urban Planning Capacity ...................................................... 115
9.1.2 Project Management for NDP Implementation ...................... 116
9.1.3 Synthesis .............................................................................. 119
9.2 Monitoring and Evaluation (M&E) Activities ...................................... 121

9.3 Legal Framework.............................................................................. 122
Bibliography 125
A.1 Appendix 1: Checklist for Design Components 1
A.2 Appendix 2: Project Stage Checklist 4
A.3 Appendix 3: Benchmarking – Best Practices and Model A13
A.4 Appendix 4: Mapping A27

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List of Maps
Map 1-1 – Location Map of Abay Mado NDP Site......................................................................... 5

Map 2-1 – Topography, Location and Integration Map for Abay Mado NDP Site ........................ 18
Map 2-2 – Existing Features Map of Abay Mado NDP Site ......................................................... 19
Map 3-1 – Planning Area Model: Guideline G1 – Improving Connectivity ................................... 37
Map 3-2 – Planning Area Model: Guidelines G4 – Urban Environment Management – and G5 –
Resource Conservation, Pollution Reduction and Biodiversity ............................................. 38
Map 3-3 – Planning Area Model: Accessibility to Public Transport and Amenities Linkage between
Development, Land Use and Urban Design......................................................................... 39
Map 3-4 – Final Proposal: Projection of the Road Network – Google Map 2013 ......................... 42
Map 3-5 – Final Proposal ........................................................................................................... 43
Map 4-1 – Zoning Applied to the NDP Proposal ......................................................................... 47
Map 4-2 – Functional Proposal of Land Use Map ....................................................................... 49
Map 4-3 – Zonal Land Use Map ................................................................................................. 50
Map 5-1 – Part of Abay Mado NDP Considered for the Urban Design ........................................ 59
Map 6-1 – UDP Location with a East – West Topographic Section ............................................. 60
Map 6-2 – Conceptual diagram of the UDP Site ......................................................................... 64
Map 7-1 – Detail Land Use Map for the UDP Site....................................................................... 66
Map 7-2 – Proposed Street Network Map ................................................................................... 70
Map 7-3 – Mobility Map Illustrating Movement Pattern within the UDP ....................................... 73
Map 7-4 – Urban Blocks Pattern................................................................................................. 74
Map 7-5 – Urban Land Use Regulation Map............................................................................... 77
Map 7-6 – Morphology Map ........................................................................................................ 78
Map 7-7 – Green and Open Space Network Map ....................................................................... 80
Map 7-8 – Parking and Loading/Unloading Spaces .................................................................... 82
Map 8-1 – Categories of Roads Considered for Public Investment ............................................. 93
Map 8-2 – Implementation Phasing for Block Development and Roads with Networks ............... 94
Map A.3-1 – Map of Vietnam .................................................................................................... A13
Map A.3-2 – Map of China: Provincial Level Administrative Divisions ....................................... A16
Map A.4-1 – Map Illustrating Background Analysis .................................................................. A27
Map A.4-2 – Existing Settlements in Abay Mado NDP Site ....................................................... A28
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Map A.4-3 – Slope Analysis Map of Abay Mado NDP Site ....................................................... A29
Map A.4-4 – Integration of the Proposed Land Use with Settlement ......................................... A30
Map A.4-5 – Views of the NDP Proposal .................................................................................. A31
Map A.4-6 – Road Design for 9m – 13m Feeder Roads ........................................................... A32
Map A.4-7 – Road Design for 22m Wide Collector Roads ........................................................ A33
Map A.4-8 – Road Design for 30 m Wide Arterial Roads .......................................................... A34
Map A.4-9 – Site Section .......................................................................................................... A35
Map A.4-10 – Layout of Main Sewerage and Drainage Networks ............................................. A36
Map A.4-11 – Layout of main Electric and Street Lighting Networks ......................................... A37
Map A.4-12 – Layout of main Water Supply Networks .............................................................. A38
Map A.4-13 – Layout of main Telecommunication Networks .................................................... A39
Map A.4-14 – Position of Solid Waste Disposal Platforms ........................................................ A40
List of Figures
Figure 1-1 – Plan Making Process and Methodology.................................................................... 8

Figure 1-2 – Planning Steps of the New NDP Model .................................................................... 9
Figure 7-1 – Road Design .......................................................................................................... 68
Figure 7-2 – Street Sections ....................................................................................................... 71
Figure 7-3 – Streets Cross Section across the Green Belt .......................................................... 72
Figure 7-4 – Land Pooling and Residential Plots Pattern ............................................................ 75
Figure 7-5 – Residential Block and Plots Division Pattern .......................................................... 75
Figure 7-6 – Neighborhood Style Map ........................................................................................ 79
Figure 7-7 – Semi-Private Green and Open Spaces Pattern ...................................................... 81
Figure 9-1 – Main Tasks to be Performed under the New NDP Model ...................................... 115
Figure 9-2 – A Tight Schedule for the Next Ten Years ............................................................. 116
Figure 9-3 – Organizational Structure for UDECOMs ............................................................... 119
Figure 9-4 – Relationship between FeUDECOM , ReUDECOM and UDECOMs ...................... 120
Figure 9-5 – Parts of Proclamation 574/2008 that Require Modification ................................... 123
Figure A.3-1– Administrative System of Vietnam ...................................................................... A14
Figure A.3-2– Planning System in Vietnam .............................................................................. A14
Figure A.3-3 – System of Spatial Policy in China ...................................................................... A17
Figure A.3-4 – On Site Rehousing in Morocco .......................................................................... A18
Figure A.3-5 – Flats (226) in the Outskirts of Rabat, Al Omrane Project ................................... A19
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List of Graphs
Graph 2-1 – Age Distribution of Bahir Dar Population ................................................................. 11

Graph 2-2 – Climate of Bahir Dar: Average Temperature (oC) and Sunshine Intensity (hours) ... 20
Graph 2-3 – Climate of Bahir Dar: Average Humidity (%) and Rainfall (mm) .............................. 21
List of Tables
Table ES-1 – Area Summary of Proposed Land Uses .................................................................. 5

Table 2-1 – Proportion of Existing General Land Use Coverage................................................. 17
Table 4-1 – Polycentric Scenario: Urbanization Requirements at Country and Bahir Dar Levels 45
Table 4-2 – Area Summary of Proposed Land Uses ................................................................... 48
Table 4-3 – Quantitative Data Resulting from the Main Parameters of the Urban Regulation ..... 53
Table 6-1 – Forecasted UDP Content......................................................................................... 62
Table 7-1 – Areas Achieved in the Proposal of the UDP............................................................. 67
Table 8-1 – Assumptions for Business Plan Preparation ............................................................ 91
Table 8-2 – Advantages and Disadvantages of both Alternatives ............................................... 92
Table 8-3 – Bill of Quantity: Cost of the Roads and Associated Networks .................................. 97
Table 8-4 – Summary of Financial Analysis using the Low Assumption...................................... 99
Table 8-5 – Business Plan using the Low Assumption ............................................................. 100
Table 8-6 – Summary of Financial Analysis using the Medium Assumption.............................. 101
Table 8-7 – Business Plan using the Medium Assumption ....................................................... 102
Table 8-8 – Summary of Financial Analysis using the High Assumption ................................... 103
Table 8-9 – Business Plan using the High Assumption ............................................................. 104
Table 8-10 – Fixed Cost Estimated to Manage Urban Development Companies ...................... 106
Table 8-11 – Annual Labor Cost Estimated to Manage Urban Development Companies. ........ 106
Table 8-12 – Annual Operating Cost Estimated to Manage Urban Development Companies ... 107
Table 8-13 – Compensation and Infrastrcture Development Costs ........................................... 108
Table 8-14 – Total Lease Revenue Generated per Year .......................................................... 109
Table 8-15 – Summary of Costs and Revenue per Year........................................................... 109
Table 8-16 – Loan Repayment Schedule ................................................................................. 114
Table 9-1 – Assumptions for the Establishment of Urban Development Companies ................. 121
A.2-1 – Generic Guideline Objectives ........................................................................................... 5
Table A.3-1 – Cost Estimation of a Typical Flat .......................................................................... 21
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List of Acronyms
ANRS Amhara National Regional State
BAR Builtup Area Ratio
BDCA Bahir Dar City Administration
CBO Community Based Organization
CRGE Climate Resilient Green Economy
CSA Central Statistical Agency
CSO Civil Society Organization
CUI Canadian Urban Institute
ECSPG Ethiopian Cities Sustainable Prosperity Goals
EFY Ethiopian Fiscal Year
EMA Ethiopian Mapping Authority
FAR Floor Area Ratio
FDI Foreign Direct Investment
FeUDCOM Federal Urban Development Company
GoE Government of Ethiopia
GTP Growth and Transformation Plan
IDP Integrated Development Plan
IHDP Integrated Housing Development Program
IRR Internal Rate of Return
LDP Local Development Plan
M&E Monitoring and Evaluation
MoFED Ministry of Finance and Economic Development
MoUDHC Ministry of Urban Development, Housing and Construction
MSE Micro and Small Enterprise
NDP Neighborhood Development Plan
NUDSP National Urban Development Spatial Plan
PPP Public Private Partnerships
ReUDCOM Regional Urban Development Company
SDF Strategic Development Framework
SEZ Special Economic Zone
SP Strategic Plan or Structure Plan
TAC Technical Advisory Committee
TOD Transit Oriented Development
UDCOM Urban Development Company
UDP Urban Design Plan
ULGDP Urban Local Government Development Project
UMsb Urban Multi Story Building
UNDP United Nations Development Program
UNESCO United Nations Educational, Scientific and Cultural Organization
Upa Urban Public Amenity
UTh Urban Townhouse
UXI Urban Expansion Initiative
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Acknowledgements
This report is produced with the support of the MoUDHC and a number of people from public administration
offices at local, regional and federal levels. The Team would like to thank the following persons in particular:
Ministry of Urban Development, Housing  Ato G/Michael G/Kidan, Ministry of Industry

(MoI)
and Construction (MoUDHC)
 Ato Haregot Alem, Addis Ababa City
 HE, Ato Mekuria Haile, Minister of Urban Administration (AACA)
Development Housing and Construction  Ato Tadesse Teferra, Ministry of Transport
(MoUDHC) (MoT), and
 Ato Takele Mengesha, Ethio Telecom
Technical Advisory Committee (TAC)
The World Bank (WB)
 Ato Tadesse Gebregiorgis, Chairperson of
Technical Advisory Committee (TAC); Deputy  Ato Abebaw Alemayehu, Team Leader
Head, Housing Development and  Ato Dinkneh Tefera, Urban Specialist, and
Government Building Construction Bureau,  Ato Eyassu Tsehaye, WB Office
MoUDHC
 Ato Fitsum Haile, Deputy Chairperson of the Key Agencies
TAC, Urban Planning, Sanitation and
Beautification Bureau (UPSBB), MoUDHC  Ato Sisay Guta, Director, GIS and
 Ato Alemakef Tassew, Secretary of TAC, Cartography Directorate, CSA, and
Policy and Planning Bureau, MoUDHC  W/ro Likelesh Abay, Deputy Director General,
 Ato Abuye Anley, Chief Advisor to the Ethiopian Investment Agency
Minister, MoUDHC
 Ato Wondimagegnehu Girma, Policy and Amhara National Regional State and Bahir
Planning Bureau, MoUDHC Dar City Administration
 Ato Sebsibe Tadesse, UPSBB, MoUDHC
 Ato Tarekegn Gebreyesus, UPSBB,  Dr. Ambachew, Deputy Regional Governor
MoUDHC and Head of Bureau of Industry and Urban
 Ato Zerihun Tetsafe, UPSBB, MoUDHC, and Development, Amhara National Regional
 Ato Melaku Eticha, UPSBB, MoUDHC State (ANRS)
 W/ro.Genet Gebre Egziabher, General
Steering Committee (SC) Director, Amhara Urban Planning Institute
(AUPI)
 Ato Tadesse G/Giorgis, Secretary, MoUDHC  Mr. Behailu Melesse, AUPI
 Ato Abebe Zeleul, MoUDHC  Mr. Mulugeta Asrat, AUPI
 Ato Assefa Gebrewold, Ministry of Water,  Mr. Umer Nuru, AUPI
Irrigation and Energy (MoWIE)  Mr. Nega Demissie, AUPI
 Ato Belete Tirfie, Ethiopian Mapping Agency  Mr. Nahusenay Kelemewerk, AUPI
(EMA)  Mr. Zelalem Getahun, AUPI
 Ato Biratu Yigezu, Central Statistic Agency  Mr. Yihenew Alemu, AUPI
(CSA)  Mr. Tilahun Berihun, AUPI
 W/ro Birtukan Mohammed, Ministry of  Ato Kidanie Misker, City Manager, Bahir Dar
Finance and Economic Development City Administration (BDCA)
(MoFED)  Ato Anemaw Mekonnen, BDCA, and
 Ato Fistum Arega, National Planning  Ato Adane Woldie, BDCA
Commission (NPC)
Special appreciation goes also to community members and officers of Abay Mado NDP Site and Zenzelema
Kebele for engaging in the planning process, providing information and hosting interviews, and other events
and activities.
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Executive Summary
Purpose
The purpose of this plan is to provide a framework and detail plan for future development within
the Abay Mado Neighborhood and identify existing neighborhood problems and possible solutions.
It also aims to integrate public policy, neighborhood residents' concerns, and neighborhood
development potential in a comprehensive neighborhood development plan (NDP). As a public
document, this NDP will provide a guide for Bahir Dar City Administration that is responsive to the
desires of the residents of Abay Mado.
Planning Area
Bahir Dar City Administration is one of the 12 urban centers selected for the preparation of a
Neighborhood Development Plan as captured in the agreement between the Ministry of Urban
Development, Housing and Construction and Egis International to prepare the National Urban
Development Scheme, a Neighborhood Development Plan and an Urban Design Plan.
In 2004, the City of Bahir Dar got a metropolitan status and served as administrative seat for the
regional, zonal, wereda and city administrations. The Metropolitan City of Bahir Dar is divided into
nine urban kebeles, five rural kebeles and three satellite towns. It sits on a flat landscape with an
average elevation of 1800 m.a.s.l. and a slope gradient about 2 to 5 percent covering the majority
of the city. The average annual precipitation is 1443 mm while its annual temperature ranges
between 8.3oC minimum and 29.6oC maximum. In 2013, Bahir Dar Metropolitan City is inhabited
by 245,057 people of whom 84.3% are urban residents. The total population count was estimated
to reach 266,667 inhabitants as of July 2014 (CSA forecasts).
Bahir Dar is a historic city founded with the establishment of Kidane Mihret Church in the
14thcentury. This site is the current St. George Church or the piazza of Bahir Dar. Beginning from
this point, this rural village developed into one of the current largest economic and tourism city of
the country. It grew all directions and transformed to a modern cityscape following the Italian
occupation during the period of 1928 – 1933, since it was used as a major military command center.
Endowed with its natural and man-made riches, Bahir Dar Metropolitan City is recognized as a
major tourist destination in the North-West part of the country. Lake Tana, Abay River and more
than 40 monasteries found on the islands of Lake Tana are marked potential cultural and economic
resources. In addition, its strategic location augments its economic role in the northern economic
zone; it is a manufacturing and industrial processing center and a potential gateway to international
market.
The Abay Mado NDP planning area consists of approximately 130 hectares of land situated
between the Abay River, the Diaspora settlement, the Abay Ras Real Estate Development, several
farming lands and established farmers’ neighborhoods. It is some 6 km north east of Bahir Dar’s
downtown, but close to Zenzelema Town (3km east) and main landmarks including islands and
monasteries (west), Martyr’s Monument (3.4km south), Bezawit Palace (7.5km south), the
Convention Centre (4km south), Shumabo Public Park (5.3 km southwest), several major public
institutions (campuses of Bahir Dar University, Regional Government, and City Hall) by road and
waterways.
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Planning Method
Planning Participants
The Neighborhood Plan was prepared with the active participation of Bahir Dar City Administration
(BDCA) and Technical Advisory Committee (TAC) of the Ministry of Urban Development, Housing
and Construction (MoUDHC).
Relevant Planning Documents
Previous studies, urban plans and strategic documents were reviewed to ensure that the Abay
Mado NDP will not be out of context or incompatible with key goals and framing recommendations.
These documents include (i) the Ethiopian Cities Prosperity Initiative (ECPI) and strategy
documents on the nine policy pillars, both produced by the MoUDHC, (ii) the 2006 Integrated
Development Plan (IDP), which established a series of goals and objectives based on the
responses gathered in neighborhood focus-groups, served to evaluate the directions, and refine
the strategies for the planning period, (iii) the draft strategic development plan of the Bahir Dar
Waterfront, an important spatial plan developed by the Canadian Urban Institute and outlining
recommendations on land use, building regulation and elements of urban design and (iv) various
government interim reports, which served as foundation documents for cataloging all notable
structures found in BDCA.
Plan Making Process
The planning process involves five main stages. The first stage is the Inventory of Issues, which
helps identify area concerns through a series of TAC meetings, field researches, focus group
discussions and key informant interviews with stakeholders. The Analysis stage involves an
assessment of current planning and development efforts, as well as a profile of existing conditions.
Third task is the development of a new NDP model based on the information drawn from the
inventory of issues and the lessons learned from the local practices and the international
benchmarks. The model is expected to respond appropriately to the upcoming urbanization
pressure in the Ethiopian urban realm. Planning Options stage proposes feasible land use, zoning,
infrastructure networks, and urban design for selected target development areas of Abay Mado
Neighborhood. Finally, the Implementation Mechanisms stage outlines specific implementation
strategies including the financial cost, business plan, capacity building, institutional arrangement
and legal framework.
Issues Inventory of the Current Situations

The analysis of development factors in Abay Mado neighborhood reinforces issues raised during
the stakeholders meetings. Following its proximity to the mouth of Abay and a number of
monasteries on islands of Lake Tana, Abay Mado NDP site is environmentally sensitive has greater
opportunities for continued recreational and tourism development.
In planning sessions, stakeholders discussed neighborhood and development issues relevant to
Abay Mado NDP. These issues were used as guides for the planning process, emphasizing
resident involvement as an intrinsic value of a neighborhood plan. Some of the key issues are (i)
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Integration with and connectivity to city centre through enhanced transport connectivity including
pedestrian movements, infrastructure development and service distribution; (ii) Ensure balanced
and complementary local economic growth, which considers local residents and neighboring
villages; (iii) Ensure efficient linkages with key localities; (iv) Conserve natural resources and
enhance use of Lake Tana and Abay (Blue Nile) River; (v) Retain and utilize the defining contours,
land forms, natural slope of the site, and quality of natural water resources to provide essential
character for development; (vi) Residential development types essential for effective local
environment and site character; (vii) Preserve social fabric and establish local network of key
communal services; (viii) Preserve agricultural land as much as possible; (ix) Promote mixed use
to address rapid land use change; (x) Build vibrant relationship between family and community;
and (xi) Build over time the planning implementation capacity of BDCA by putting in place a strong
planning system and appropriate institutions for effective implementation of NDP project in Bahir
Dar.
Demographics and Social Services
About 60 households are believed to reside in Abay Mado NDP site. This NDP site has no peculiar
population character different from the main city. Thus, their population dynamism are generally
influenced and governed by characteristics of populations of the entire city. To be more precise,
along with most similar population dynamics, the great majority (61.0%) of the population in Bahir
Dar City are young, below the age of 25. The overall dependency ratio (i.e., proportion of non-
working to working population) was observed to be about 37.03, implying 100 people in the working
age group support about 137 persons including themselves in providing necessities for life.
However, with further implementation of the proposed NDP it is estimated that about 2,540
additional households can be settled through horizontal patterns of housing development. Based
on the average household size, which is 3.5, about 9,100 initial populations can commence new
walks of life.
As far as education services are concerned, there are two primary schools; one at Guedero, a rural
village, and another at Zenzelema town, approximately at about 3 kilometers away from the NDP
site. Considering factors of distances and future population settlements with the development of
the NDP, reserving plots of land for kindergartens and primary schools together with expansion
areas are necessary. Although health service provisions in Bahir Dar are examined to be relatively
better, the NDP site has been served poorly both from the public and private health care systems.
Finally, it can be concluded that despite better distributions of both education and health
infrastructures, limitations have been common when their qualities are compared to UNESCO,
WHO, and national standards, in general for Bahir Dar; while in particular, it needs more attention
to even create physical accesses of social services in the NDP site, in order to work on improving
their qualities.
Economic Potential and Business Development
In general, poverty is widespread in the City of Bahir Dar including Abay Mado NDP site, which
entails rigorous economic intervention. Approximately, 45% of the city population is estimated to
live below the poverty line, where more than 60% of its households’ spending less than ETB 1000
per month. The majority of them (> 60%), do not practice any kind of saving, but of those who do
save, more than 80% use traditional saving schemes including Equb and Iddir.
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Again, Bahir Dar suffers from an acute problem of unemployment, which reached 19% in 2011
(CSA, 2011). This problem is severe among the female population, which reached 25% in 2010.
According to WFP (2009) report, close to 27% of the Bahir Dar’s urban households were asset
poor and near to 42% were asset medium. More than 17% of the working force is classified as un-
skilled laborers, farmers (4%), and remittance, gift or assistance dependents (13%). More than
43% of the households depend on small business/self-employment or government salaries. Petty
traders constitute about 3%.
According to information collected form authorities, Bahir Dar provides employment for 82% of its
economically active population, of which 52% are male. More than 71% are employed in formal
business while the rest (28.5%) are engaged in the informal sector.
Farmers residing in the NDP site are fully engaged in agricultural, vegetable farming and fishing
activities and in the labor market during the non-agricultural seasons (in mining and quarrying).
As a result of these severe poverty and unemployment situations, there are growing issues of
housing insecurity, inadequate living standards, and a mass shortage in finance for social services,
economic opportunities and infrastructure development.
The NDP site has the opportunity to benefit from selected economic growth potentials, among
which the following are very important: (i) the local market located in Zenzelema Town 3km east of
the NDP trades agricultural products, garments and plastic tools. This market can be a potential
destination for vegetables and fruits produced by farmers from urban agriculture; (ii) a favorable
water transport connection can link the NDP site to the islands in the lake, which produce food
items (crops, fruits, seeds etc.), construction materials (wood, sand, stones, etc.) and
accommodate tourism destinations; (iii) there is great potential for tourism and establishment of
recreational facilities, which can provide employment opportunities for existing villagers and future
residents; (iv) short term employment may be generated for the unskilled labor force from the
villages to construct houses in the Diaspora settlement and other adjacent neighborhoods; and (v)
significantly, a high potential exists for links between the NDP site and Zenzelema Town and
University Campus giving access to approximately 5000 people in the university community that
require catering services including food stands, boat tours and other innovative need-based
activities.
Neighborhood Assessment
Much of the NDP area is occupied by dilapidated traditional single story farmers’ housing and poorly
designed and distributed multi-story houses in the Diaspora settlement that do not adequately
consider the quality of the landscape. A resettled neighborhood in the south-east corner of the NDP
site contains several parcels that are ready or redevelopment.
The location of the planning area lends itself to a limited pattern of land uses. Much of the western
half of the NDP area (85 ha) is occupied by farmers using the space for agricultural activities
(vegetable and fruit production) and residential compounds. Quarrying is carried out for basaltic
stones within the site, occupying some 32 ha. Other areas of agricultural land uses in the western
periphery of the site include the flood plain, which is fertile for commercial vegetable farming. This
is practiced by youth groups organized under the micro and small scale enterprise development
schemes of the Kebele Administration.
The NDP site is bisected by multi-use trails that successfully accommodate pedestrian and bicycle
movement through the area. These trails continue through neighboring villages and settlements to
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connect the site with the Bahir Dar–Gondar highway. These connections make it possible for
residents to travel to the city centre.
The University campus located some 3km east is the focus of thousands of employees and
students and could be a powerful local source of economic regeneration. The Zenzelema
settlement provides local market services within the same proximity.
The Neighborhood Development Plan Proposal
Land Use
The land use planning in the NDP proposal is based on multiple guiding principles including (i)
sustainable resource utilization, (ii) appropriate housing and clean and green built environment, (iii)
enhanced accessibility and connectivity, (iv) mixed social and land use development, (v) cost
effective and quality infrastructure, public amenities and open spaces enforcing the public realm,
(vi) safety and security, and (vii) socio-cultural development. Framed with these principles, the
Abay Mado NDP proposal tries to create a predominantly residential and recreational
neighborhood, by enhancing and creating connectivity and accessibility of water bodies, wetlands
and green frame. This NDP focuses on nodal and corridor development to promote local economy.
This implies to channel major investments to corridors and nodes, where there are major
infrastructure and higher accessibility. Therefore, business and commercial districts are proposed
along major circulation corridors including collector and arterial streets, and green frame bisecting
the site.
Land within the planning boundary is largely planned for urban agriculture (48.6ha), green open
spaces (19.4ha), roads (24.4), and residential (13.7ha) and mixed-use (13.4ha) development (multi
story buildings). Land use recommendations include: (i) the housing stock is more likely multi-unit
mixed use along green frame and main transport corridors; single-family homes are more common
toward the eastern and northern borders. Houses are characterized by a mix of types and plot
sizes. The housing types range from inexpensive villas to lakefront mansions; (ii) catering services
(café, restaurant, bar), tourist destinations, offices, market and shopping centers, limited and non-
polluting manufacturing center (0.3ha), employment centers incubating micro and small scale
enterprises, public amenities (health, education, cultural centers) and administrative facilities
(Kebele, community policing) reside in the Centrum; and (iii) pre education facilities (KGs, children
playground and day care), recreational facilities (public spaces, open and green areas, and play
grounds) and community policing are scattered evenly in the sub-neighborhoods. The following
table (Table ES-1) illustrates the details.
Table ES-1 – Area Summary of Proposed Land Uses
No. Land Use Category Area (ha) Percentage (%)
1 Urban Agriculture 48.6 37.4
2 General Residential 13.7 10.5
3 Mixed Use 13.4 10.3
4 Commercial 0.9 0.7
5 Green Areas and Sports Fields 19.4 15.0
6 Services and Administration 6.3 4.8
7 Manufacturing 0.3 0.2
8 Roads and Parking 24.4 18.8
9 Reserved Areas 3.0 2.3
Total 130.00 100.0
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Urban Design
The urban design deals primarily with the urban form and aesthetics of the physical environment.
Abay Mado NDP recommends a variety of building heights distributed to reflect the desired urban
neighborhood character and appropriate scale. Building height regulation recommendations are
high along major transport corridor and near railway station to the north, and are held lower
adjacent to residential areas to the southeastern direction. The height regulations are set in such
a way that maximize light and air, and enhance public realm by providing pedestrian friendly (safety
and comfort) streetscapes (wide public circulation corridors, street trees, plazas etc.).
Road Infrastructure and Utilities
The road proposal of the area addresses hierarchy and organizational issues based on organic
and grid patterns that emerge from the topography (flat slope gradient). The existing cobblestone
paved collector street connecting the NDP site in the south with the Bahir Dar–Gondar highway,
footpaths crossing the site interconnecting villages, and the urban expansion initiative (UXI)
proposed arterial streets are taken as major elements in laying down the proposed structure of the
area. The proposed road network is based on the analysis of economy and physical feasibility.
The various types of road proposed include 30m wide arterial roads bounding the NDP site in the
east and west, 22m wide collector streets, 9/13m wide feeder roads and footpaths of various widths.
Promotion of pedestrian activities (shopping and leisure) and parking (on and off road) are
envisaged.
The designs of all types of road accommodate utilities including drainage, lighting, sewerage,
carriage ways, pedestrian, and other standard traffic management elements. Generally, the traffic
management is attached to the east-west axis. Concerning parking facilities, special consideration
has been given to the provision of common parking spaces, on street parking, pedestrian walk
ways and arcades that helps retain people from traffic accidents and uncomfortable street
environments.
Taking into account the future traffic volume and pattern of movement, the proposal suggests
identifying major transport nodes and off-street taxi stands and stations. Bajajs are considered as
the main mode of transport.
Overall, when urban neighbourhood abuts natural ecologically sensitive area, appropriate urban
utilities and infrastructure networks are required, including water supply and sewerage networks,
drainage systems, electric and street lighting, telecommunication networks and waste collection
and disposal systems.
Parks and Open Space
Green and open spaces network has become increasingly important as the effects of climate
change take hold and urban areas suffer temperature increase. Its role and its cover in cooling the
urban heat island effect will be vital to make settlements attractive places to live. Thus, the proposal
has established a network of green fingers to permeate through the site.
This framework is amplified by public open spaces, parks, playing fields and greens that provide
dignified settings for the neighborhood. This well-defined and interconnected network of public
open space establishes the character and scale of the neighborhood. The proposal has extended
the city’s experience to the UDP area in creating neighborhoods with clean air, trees and natural
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landscapes, places to walk and sit outside creating a rich and aesthetically varied environment. It
maximizes the desired feeling of contact with nature or being in natural setting.
A green corridor with services is proposed linking Lake Tana and the university campus extending
green features providing visual relief, seasonal change, and a link with the natural setting.
The land pooling development has also created semi-private green and open space network at
their back with only 3m wide pedestrian and bike ways
Housing
A series of blocks have been designed, creating a point of view either to the lake or to the green
corridor providing sufficient flexibility to cater for the housing needs of today with sufficient service
centers. The buildings of all use types are designed to be built close to the edge of each block, with
the center reserved for green and communal backyard activities creating uninterrupted social
spaces with views to both the lake and the green corridor.
Besides, streets with 2m uniform building setback have defined urban blocks for development,
which are planned either for particular types of development or for other services. These defined
block edges can be reinforced by the addition of hedges along the front property line on the setback
area clearly distinguishing the public from the private realm.
Besides, the integration of both the streets network and open space has created the addresses for
development sites. Some blocks are serviced by walkways and others from the streets. Appropriate
dimensions for blocks are also identified based on the accessibility as well as ease of mobility.
They range from 34mx46-74m, which in turn divided into lots of 9mx17m. The block designs
include provisions of 2m setbacks for buildings to further define the character of the street side
public spaces and the neighborhood. Bigger plots sizes, 20mx25m, are proposed to create a
chance of providing parking space at each building front and underground
Each block will accommodate a variety of building types with different uses, lifestyles and enhances
a sense of community. The buildings will complement one another in uses, mass, height and
location creating pattern to define the neighborhood character.
Besides, mix of buildings is proposed such as some single-use and some with residential or office
over retail. All the buildings within these blocks will have a minimum of 3m wide arcades for window
shopping as well as shaded walking purposes.
Economic Development
Concerning economic development, the plan designs specific transportation and green corridors
as viable commercial niches to residents, visitors and workers. The Plan includes ideas that make
Abay Mado more of an asset to residents and potential local businesses, putting the Lake and Abay
River into perspective.
Community Facilities and Services
The Plan proposes several important social services and public amenities homogenously
distributed within the Abay Mado NDP. Schools (primary and KGs), administrative centers,
community police stations, community centers and other social facilities are among others.
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Implementation Mechanisms
Abay Mado NDP proposes different development projects categorized under four phases and will
be implemented in five years period. The total project cost is computed as ETB 1.18 billion (USD
59 million), among which ETB 12.2 million (USD 0.61 million) is for operating cost. On the other
hand, the source of revenue, mainly considered land lease, generates an amount calculated as
ETB 423.3 million. Since only a maximum of 20% would be collected as down payment from
lease, the actual revenue that can be generated in four phases will be somehow around ETB 84.66
million, which is only 7% of the expenditure required to develop the area. Therefore, loan would be
the preferred mode of financing for such kind of commercially not viable projects. The government
is expected to pay the loan using other revenue sources.
This project proposes a specific institution to solely manage the implementation of the NDP. At
urban cluster level, it is the responsibility of an Urban Development Company (UDECOM) to
implement NDPs of a collection of urban centers with urban population adding to one million
inhabitants. Putting the future urbanization proportion into account, there is a need to establish 24
UDECOMs to manage urban planning and implementation until 2025. These companies have
quasi-private status, which helps them exercise financial autonomy and envision public interests
all together. They are supported by 13 staff composed of six professionals and 7 support staff.
UDECOMs are accountable for the same type of urban development company set up at regional
level, the Regional Urban Development Company (ReUDECOM). These will be established in the
9 regions and 2 Chartered City Administrations of the Country. ReUDECOMs will be accountable
to the similar company established at the federal level, the Federal Urban Development Company
(FeUDECOM). FeUDECOM reports for the Minister of MoUDH.
Page 8
Part 1 The
Neighborhood
Development Plan
1. Introduction
1.1 General Background

At present, in Ethiopia, urban population represents approximately 20 per cent1 of the country’s
total population. Studies show that the urbanization process observed in Ethiopia has been
determined by massive rural-urban migration due to rapid economic growth. In addition, with the
establishment of special economic zones, streams of labor force will continue to flock to economic
centers of urban Ethiopia.
Ethiopian urban development is principally driven by local economic activities including
employment generation and accumulation of finance, administrative functions of the local
government, and demand for land and housing of the population, which together create needs to
accommodate massive amount of urban services including enormous need and quick delivery of
land and infrastructure. Eventually, such demands require proper urban planning, which their
absence could lead to inefficient management of limited resources; proliferation of informal
settlements; and local authorities could not keep pace to the city growth and extension of urban
services.
Although the level of urbanization is relatively low in Ethiopia, it is believed that its pace will increase
substantially in the coming 20 years, which will lead to an increase in both volume of urban
population and the number of urban centers themselves. Considering three urbanization rates
based on low, medium or high hypothesis, accounting respectively 4.5%, 4.6% and 4.9%2, faster
urban population increase will be inevitable.
Again, it is believed that in 2014 more than half of the population lives in slums3. The second Growth
and Transformation Plan (GTPII) estimated that this backlog will decrease to 25% at the end of
20254. Considering a medium urban population growth rate of 4.6% without assuming the backlog
created by the slums, Ethiopia needs to setup an ambitious strategy to manage such huge pressure
of urban development. This includes, based on international standards, reflecting on gross
population density of 100 inhabitants per hectare and average family size of 4.2 persons per
household. These assumptions linked to the growth of national urban population require every year
an additional urban land, balanced urban fabric associated with roads, and housing accounting to
respectively 10,000 hectares, 4,000km and 309,0005. According to the Urban Planning
Proclamation of the country (Proclamation 574/2008), these demands are expected to be
implemented annually through specific urban planning arrangements including 67 Neighborhood
Development Plans (NDP) covering 150 hectares between 2013 and 2025 or 89 NDPs between
2016 and 2025.
This project has, therefore, conducted a complete study in line with the objectives and strategies
of the Ethiopian government’s urban development programs and policies, and reviewing relevant
international benchmarks and local best practices. The main essence of the Ethiopia’s urban
1 MoUDHC, National Urban Development Spatial Plan: Existing Situation and Diagnostic Final Report, 2015, p.34.
2 MoUDHC, National Urban Development Spatial Plan: Ethiopia’s Urban Development Scenarios, 2015
3 MoUDHC, Summary of the Growth and Transformation Plan II EFY 2008 to 2012 (2015 – 2020) for Urban
Development, Housing and Construction Industry, 2015.
4 MoUDHC, GTP II (Ethiopian Cities Sustainable Prosperity Initiatives), October 2015
5 This is estimated based on rough calculation using data from the National Urban Development Spatial Plan.
Page 1
development policies and strategies are geared towards the country’s main development agenda
of eradicating poverty by achieving broad based, accelerated and sustained economic growth in
all sectors. For the urban development to contribute fully to this accelerated socio-economic
development of the country, GTP has set objectives, that is to ensure stronger urban local capacity
developing and managing urban centers with proper urban planning, the sustainable provision of
urban infrastructure and services and improving the urban environment for living and work.
The Ethiopian Sustainable Cities Prosperity Initiatives (ECSPI), which is planned by the Ministry of
Urban Development, Housing and Construction (MoUDHC) for the period effective EFY 2007 –
2017 (GC 2014 – 2025) – a contribution to the GTP II, has focused on capacitating urban centers
being centers of development that will be managed by proper urban plans and provide standardized
services to their residents; and creating competitive construction industry that will lead to the
establishment of green, resilient and well-governed urban centers, supporting Ethiopia’s
transformation from a predominantly agricultural led economy to a rapidly growing industrial sector;
all together they contribute to the economic growth necessary to achieve middle income country
status by 2025. In Addition, to grapple the future urbanization growth (30%) in the same target
year, the Government of Ethiopia (GoE) is focusing on specific urban development schemes,
including preventing the creation of new slums (decrease to 25 % at the end of 2025) by preparing
proper urban plans; promoting economic development while ensuring that the social neighborhood
networks are kept intact; and financing the necessary infrastructure and services such as education
and health, efficient public transport and waste management, access to clean water and proper
sanitation.
Efforts made so far to implement a series of local development plans (LDP) are assessed to be
totally insufficient. Cognizant to this fact, the Ministry of Urban Development, Housing and
Construction (MoUDHC) with the funding from The World Bank launched this project to prepare a
National Urban Development Spatial Plan (NUDSP) and model Neighborhood Development Plans
(NDPs) and associated urban designs for selected 12 urban centers, which represent different
sizes and administrative statuses in the current urban system. The NUDSP includes the
preparation of the land use plan and based on this, the formulation of the study of the urban system
of the country. On the other hand, the model NDPs are considered to be potential planning aids,
intended to alleviate the frustrations of the planners and decision-makers while choosing among
many alternatives available for consideration. In addition, the current planning process in the
country has consisted mainly of rudimentary sub-division layouts usually intended to demarcate
plots to be allocated for various economic uses. The process is lacking thoroughness, which result
to uncontrolled development of layouts and never aligned to the national and regional socio-
economic development objectives. In general, limited capacity of planners, municipal engineers,
urban designers and decision makers has led to uncoordinated urban settlement inflamed by flocks
of migrants looking for economic opportunities.
1.2 Objectives
The main objective of this project is to provide a framework for future development and a detail
design for Abay Mado Neighborhood by thoroughly investigating the type of development taking
place along the NDP site, analyzing neighborhood development issues and proposing more
sustainable possible solutions. These will lead to the integration of the public policy, residents'
concerns, and neighborhood development potentials in a neighborhood development plan
associated to urban design plan. The outcome of this study will enable the city administration to
Page 2
guide the future growth of the city and particularly that of the Abay Mado Neighborhood in a
sustainable manner.
These objectives will be realized through key guiding principles including (i) sharing national vision
and applicable standards ; (ii) ensuring public participation, transparency and accountability; (iii)
efficient land utilization; (iv) promoting balanced and mixed population distribution with reference
to income and equity; (v) safeguarding community and environment; (vi) balancing public and
private interests; (vii) enhancing existing urban fabric, infrastructure, social and economic network;
and (viii) introducing new, applicable and locally relevant Model NDP designing concepts.
1.3 The Planning Area

Geographically located at 11° 38' N and 37° 15' E, about 570 km road distance north-west from
Addis Ababa, Bahir Dar City was first established in the 14th century following the establishment
of Kidane Meheret Church located at the present site of St. George Church, the Piazza of Bahir
Dar. The name Bahir Dar, which means “lakeshore”, derives from its adjacency to Lake Tana. It
grew all directions and transformed to a modern cityscape following the Italian occupation6.
The city sits on a generally flat landscape with elevation ranging between 1,780 and 1,886 meters
above sea level. It is endowed with an abundance of natural riches including the picturesque and
historic attractions of Lake Tana and its more than 40 island monasteries and churches, the Abay
[Blue Nile] canyon, river and associated waterfalls, and urban amenities (palm tree-lined
boulevards, main local market and waterfront).
It is the seat of four tiers of government in the Amhara National Regional State (ANRS), including
the regional (ANRS), zonal (West Gojam), Wereda (Bahir Dar Zuria) and municipal (Bahir Dar City
Administration) governments. In 2004, pursuant to ANRS’s proclamation no. 9/2003, the City of
Bahir Dar was given a metropolitan city status, comprised of nine urban Kebeles, four rural Kebeles
and three satellite towns. This has helped the city play a balanced role in the political, socio-
cultural, economic and environmental realms, promoting policy, regulatory and planning
interventions. In addition, its strategic location augments its role in the northern economic zone of
the country; it is a manufacturing and industrial processing center and a potential gateway to
international market.
Bahir Dar functions as an important economic hub (manufacturing and commerce) and tourist
destination. The economy includes a mixture of industry and service sector development, which
imposes specialized demands for housing, infrastructure, public amenities and needs for
sustainable environmental management. Due to its strategic geographic position, it is also a transit
point for the historical city of Gondar, Lalibella, Axum and the Semien mountains, both by road and
air transportation. Bahir Dar got its first master plan in 1964 followed by a second one in 1996.
The third, currently known as the Integrated Development Plan was prepared in 2006 and is still
functional. These planning documents state that Bahir Dar faces multifaceted challenges
obstructing its development. Unemployment, housing shortage, inadequately managed waste,
poor governance, inefficient service delivery, weak infrastructure development, disintegrated
tourism facilities, disorganized public amenities and a degraded environment are among others,
which need dynamic and interlinked policy and strategic interventions.
6 Bahir Dar was used as a major military command center by the Italian invaders during the period of 1928 – 1933.
Page 3
The Abay Mado NDP planning area consists of approximately 130 hectares of land situated
between the Abay River, the Diaspora settlement, the Abay Ras Real Estate Development, several
farming lands and established farmers’ neighborhoods. It is some 6 km north east of Bahir Dar’s
downtown, but close to Zenzelema Town (3km east) and main landmarks including islands and
monasteries (west), Martyr’s Monument (3.4km south), Bezawit Palace (7.5km south), the
Convention Centre (4km south), Shumabo Public Park (5.3 km southwest), several major public
institutions (campuses of Bahir Dar University, Regional Government, and City Hall) by road and
waterways.
In general terms, the planning area has two distinct, but closely interrelated sub-components. The
first is Lake Tana and Abay River, an environmentally sensitive development corridor primarily
comprised of natural, historical and cultural resources destined for tourism and recreation. Although
these attributes have a high value for the growth of Bahir Dar and the immediate area, the sensitive
nature of the biodiversity of the corridor include several environmental and socio-cultural issues
that require appropriate planning action.
The second sub-component lies east of Abay River and can be characterized as a transitional area
between the neighborhood and the main transportation corridor, Bahir Dar–Gondar highway, which
includes a mix of land uses such as farmers’ villages, the Abay Ras Real Estate Development, the
Diaspora settlement, arable lands and several private housing developments. Much of this area is
occupied by dilapidated traditional single story farmers’ housing, poorly designed and distributed
multi-story houses and the Diaspora settlement that do not adequately consider the quality of the
landscape. A resettled neighborhood in the south-east corner of the NDP site contains several
parcels that are ready or redevelopment.
The location of the planning area lends itself to a limited pattern of land uses. Much of the western
half of the NDP area (85 ha) is occupied by farmers using the space for agricultural activities
(vegetable and fruit production) and residential compounds. Quarrying is carried out for basaltic
stones within the site, occupying some 32 ha. Other areas of agricultural land uses in the western
periphery of the site include the flood plain, which is fertile for commercial vegetable farming. This
is practiced by youth groups organized under the micro and small scale enterprise development
schemes of the Kebele Administration.
The NDP site is bisected by multi-use trails that successfully accommodate pedestrian and bicycle
movement through the area. These trails continue through neighboring villages and settlements to
connect the site with the Bahir Dar–Gondar highway. These connections make it possible for
residents to travel to the city centre.
The University campus located some 3km east is the focus of thousands of employees and
students and could be a powerful local source of economic regeneration. The Zenzelema
settlement provides local market services within the same proximity.
Page 4
Map 1-1 – Location Map of Abay Mado NDP Site
Page 5
1.4 The Planning Method

The success of any plan depends on how well it reflects the ideas and addresses the concerns of
the residents, business owners and community leaders it affects. This planning process employed
specific public outreach efforts to gather information from pertinent stakeholders and provided
residents with an avenue to share their concerns and hopes for the future. The following is a brief
summary of the plan-making process which involves five main stages.
The first stage is “Inventory of Issues” and identifies areas of concerns through a series of
consultative meetings including TAC meetings, field researches, focus group discussions and key
informant interviews with stakeholders.
The Project Technical Advisory Committee (TAC), formed from representatives of different
bureaus within the Ministry of Urban Development, Housing and Construction (MoUDHC),
represented the client’s interests by discussing policy directions and strategic decisions and
advised the planning team by providing technical support regarding the conformity of project
contents and commenting deliverables. In addition, TAC discussed and enriched the model NDP
approach.
Field Research: Extensive field research was conducted in the study area in March 2014 at the
outset of the plan development process. A visual survey of the neighborhood was conducted to
verify land uses. Following documentation of the existing conditions in the area, consultative
meetings were held with the Amhara Urban Planning Institute, City Manager and planning
personnel in Bahir Dar City Administration (BDCA) and Zenzelema. These sessions helped (i)
formally kick off the planning process, (ii) determine boundaries of the study area, (iii) obtain
information on the existing conditions and neighborhood needs, (iv) obtain feedback on the desired
future of Abay Mado Area, and (v) discuss the development concerns and the vision of BDCA.
Topics assessed include mainly business opportunities and local economic development, housing
and basic amenities, infrastructure and utilities, transportation, greenery and open spaces,
administration and governance, natural resources and environment, and public safety.
The next stage, “Analysis”, involves an assessment of current planning and development efforts,
as well as a profile of existing conditions. The responses were organized within each topic
according to the common themes of the generic development objectives framework, which serve
to develop the neighborhood development goals and objectives.
Relevant Planning Documents: Previous studies, urban plans and strategic documents were
reviewed to ensure that Abay Mado NDP will not be out of context or incompatible with key goals
and framing recommendations. These documents include (i) the Ethiopian Cities Prosperity
Initiative (ECPI) and associated nine policy pillars, (ii) the Integrated Development Plan (IDP) of
Bahir Dar, which established a series of goals and objectives that help evaluate the directions and
refine the strategies for the planning period, (iii) the Urban Expansion Imitative, (iv) draft report on
the Waterfront Development Plan of Bahir Dar, an integrated strategic development plan for 12km
stretch of the urban portion of Lake Tana, and (v) various government reports, which served as
foundation documents for cataloging all notable structures found in BDCA.
The third stage deals with the development of the new NDP model. Putting into account the
conclusions of stage two and the lessons learned from international benchmarks and local
practices, the planning team designed a model that help respond appropriately to the upcoming
urbanization pressure in the Ethiopian urban realm. The model is discussed further using a
diagram (Figure 1-2).
Page 6
The “Planning Options” stage considers existing plans and proposes feasible future land use,
zoning, infrastructure networks, and urban design for selected development areas of Abay Mado
Neighborhood. The final one, “Implementation Mechanisms”, outlines specific implementation
strategies for specific development projects, including the financial cost, business plan, capacity
building, institutional arrangement and legal framework.
The planning process includes the structured involvement of institutional and development
representatives, and residents. The process is illustrated briefly on the following page (Figure 1-1).
The new model is comprised of eight neighborhood development steps. It starts with making the
right choice of the base map, which is, coupled with a thorough field research, essential to get
reliable overview of the urban development background. The "race against time" will surely lead
to a load of urban planning works, which the Ethiopian Mapping Authority (EMA) might partly take
over. Satellite images like Google Earth Pro, which coverage in Ethiopia is being widely developed,
fulfill mostly the quality standard (acceptable resolution, recent shot, geo-references, scale, and 3D
pictures) required for neighborhood planning. The second step is a list of tasks that are performed
at Strategic or Structure Plan (SP) level, as pre-requisites for the identification of the expansion
potential. It delineates clear location of the planning area with the administrative boundaries and
the natural site showing various uses of the land.
Step 3 is a crucial phase, which divides the whole urban expansion the City has into Neighborhood
Development Plans (NDPs). The urban planner asks important questions essentially in terms of
"phasing". These include the chronological order of the urban expansion, priorities expressed by
the City Administration and the residents, the scale and size of NDP phases manageable within
the validity period of the SP, and those NDPs accommodating the annual population growth. In
the background of all these issues, lies the concern linked to the implementation of the SP. The
need to integrate the NDPs into the SP study is essential since the consistency of the
implementation is more dependent on a global overview taking into account the reinforcement of
the urban-rural linkage, rather than scattered individual designs.
The road network step conducts the assessment and design of roads and the associated networks,
which play a pivotal role on the feasibility of the future planning. In order to avoid resource abusing
proliferation of cities, the SP must display a range of land use categories (Step 5) linked to clear
land use regulation (Step 6). Many European and Chinese cities implement often much more
detailed zoning (20 – 30 zones), which is a cumbersome arrangement for Ethiopia now. Thus, this
model suggests 11 zones, aligned under two major subdivisions: urban zones and natural zones.
The urban zones include urban multistory building category 1 and 2 (with specific heights and
proportion of shops, offices and residences), urban townhouses 1 (joined houses on small size
plots for small income earners and in-migrants), urban townhouse 2 and 3 (houses for medium and
high income earners with medium and lesser density), urban micro and small enterprises (small
manufacturing without specialized industries), and urban public amenities including services. The
natural zones consist of playgrounds and stadium, man-made green and open spaces (parks,
squares, plazas, etc.), natural land and protected areas (water bodies, forest, and natural
reserves), and agricultural land and farming.
Page 7
Figure 1-1 – Plan Making Process and Methodology
• Field Research
• Community Forums
• Stakeholders'
Consultation
• TAC
Participation
•NDP + Selected
UD Elements
•Infrastructure
Analysis
•Residential •Land Use and
•Environment
Zoning Planning
•Regulations Options •Implemnetation
•Socio-Cultural •Development
Aspects Goals and New NDP Strategies
Model •NDP - Zoning,
•Economy and Concept Land Use and •Urban Design
Competitiveness •Land Use and Development Manual
Regulations
•Safety & Settlement •Strategies
Governance •Zoning •UD Elements Implementation
•Infrastructure
Inventory of Mechanisms
Issues
•Community and
Key
Stakeholders
•TAC
Consultative
Workshops
Page 8
The land use regulations in step 6 comply with the goal of "a practical implementation process"
while determining the zoning system in Step 5. The implementation of each zone is managed by
six main categories of articles; including (i) land use with two articles specifying forbidden
occupation and occupation under conditions, (ii) suitability for construction with three articles on
area of the plot, road requirements, and utility networks; (iii) set back with three articles as regards
to alignment, limits of the plot, and relationship with other buildings on the same plot; (iv)
architecture with two articles on height of the buildings and morphology; (v) corollary specifications
with two articles on parking places and greening; and (vi) quantitative parameters with two articles
on Floor Area Ratio and Built Area Ratio.
Step 7 defines specific investment areas that fall under each zone. The main steps of the design
reach the end here. Consistency is checked here first on the desk by superimposing the design on
the satellite image and controlling the integration with and conformity to existing land uses, road
networks, physical constraints and protected areas. Field observation can also supplement this
exercise. Finally, step 8 sets up the business plan, the capacity building and institutional
arrangements that help manage the implementation of the NDPs appropriately.
The following diagram shows schematic representation of the model.
Figure 1-2 – Planning Steps of the New NDP Model
Structure Plan
Update until 2025
Steps 1-5 Steps 6-8 Steps 11-15

Identification/Phasing
Land Suitable for of NDPs / Roads Land Use Categories
Urbanization under public financing per Phase
Step 9 Step 10
Step 17
Roads
Roads
Networks Land Use
Networks
Cross Regulation
Sections Costs
Balanced
Business Plan
Page 9
1.5 Scope of the Study

Spatially, the project area is defined and limited to 130 ha and covers an area along Lake Tana
that is identified as “Abay Mado”. The thematic scope of the study will focus on four major issues,
including (i) review of the existing background studies, reports and documents pertinent to social,
economic, environmental, physical and policy aspects of Bahir Dar in general and the NDP site in
particular, (ii) identification of the development potentials and constraints using SWOT analysis,
(iii) development of goals and objectives pursuant to the identified key planning issues, and (iv)
design of neighbourhood development plan proposals based on model approaches (Figure 1-2)
derived from major findings of the analysis, international benchmarking and local practices
(Appendix 3). Each of these tasks requires meticulous detail analysis as shown under section 1.4.
Both primary and secondary data are used in this study. The primary data comprises of site
reconnaissance survey and interview of key personnel, while the secondary data was collected
from sources such as the Central Statistical Agency, Amhara Region and Bahir Dar City
Administration (Trade and Industry Development Bureau, Finance and Economic Development
Office, Micro and Small Scale Enterprise Development Office, Culture and Tourism Bureau, Urban
Agriculture Office, etc.). In addition, both published and unpublished information available at
national and international level were utilized for the study on a need to do basis.
1.6 Organization of the Report

Abay Mado NDP report is organized under nine chapters classified in three parts. The first part is mainly
focused on the Neighborhood Development Planning and comprised of the first four chapters; the
second part is about the urban design planning and constitutes of chapter 5, 6 and 7; while the third
part deals with the implementation strategies sheltering chapter 8 and 9.
The first chapter is the introduction, which gives background information about the project, the city and
the study area. It also provides information about the project purpose and objectives, the study
approaches and plan making methodologies applied. The geographic and thematic scope of the study
as well as the challenges and limitations faced during the planning processes are also stated and
explained in this part.
The second chapter illustrates the assessment of the existing situations. It provides basic information
on the socio-economic characteristics, the natural physical and environmental situations, the conditions
of the built environment (infrastructure, amenities and utilities), and the policy and legal framework
analysis.
The development potentials and constrains are analyzed under chapter three using a SWOT analysis
method. In addition, the development programs are defined and concepts are developed here. Chapter
four discusses about the land use, zoning and development control regulations of the NDP.
The second part starts with Chapter Five which is introducing the urban design area by explaining why
it is selected and what it entails. The next chapter is describing the existing morphology pertinent for
the urban design process. This UD part is further discussed in chapter seven, which thoroughly explains
the detail components of the urban design; design principles, land use, morphology, street network, and
other pertinent illustrations.
The third part starts discussing in Chapter Eight about the business plan including the schedule and
phasing, financial parameters, and the financial balance. Finally, chapter 9 address the project
implementation scheme by focusing on the capacity building and institutional arrangements including
legal framework.
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2. Assessment of the Existing Situations
2.1 Socio-Economic Analysis
2.1.1 Demographic Characteristics
Observations of the Bahir Dar NDP site show that there are about 60 households having an
estimated population of 210 inhabitants, with about 3.5 average household size. As the number of
the residents is very small, the population dynamism is largely influenced and governed by the
characteristics of populations of the entire city. Thus, Bahir Dar, comprising the NDP site, as well,
has been reported to have a population of about 245,057 in 2013, of which close to 17% are
ruralites. A look into different year’s census data reveals that the population of the town has been
growing at an average annual rate of 3.7% between 1994 and 2007 Ethiopian population censuses.
On the other hand, the recent release of data by the CSA entitled “Population Projection of Ethiopia
for All Regions At Wereda Level from 2014 – 2017” points out that Bahir Dar was estimated to
inhibit about 266,667 population as of July 2014 (cf., CSA, 2013), with the proportion of 49.96
males to 50.04% females; indicating the sex ratio of 99.83%.
Another feature of the population to examine for the planning purpose is its age structure. Thus, it
was observed that about 27.0% of the population was below the age of 15, while those within “15-
24” age bracket account for 38.2%, indicating about 65.0% of the population have been below the
age of 25. This observation points to the fact that the great majority of the population is young and
hence, requires parallel attention in the planning to embrace this force in the neighborhood
development projects. In addition, the economically active group (25 – 64 years of age) covers
30.3% while 4.5% represents the senior citizens who are greater than 65 years old.
Graph 2-1 – Age Distribution of Bahir Dar Population
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The age structure further provides the level of conventional dependency ratios within the
population. The ratio of child and old population (those below the age of 15 above 65 all together)
to the working age group (15-64) was found to be about 37.03 percent; which means that 100
people in the working age group support about 137 persons including themselves by providing at
least the basic necessities of life including food, shelter, clothing, and the like. This appears to be
moderate dependency as compared to other areas of the country.
The dominant ethnic composition is Amhara (93%) followed by Tigray (4%), Agew (0.7%), Oromo
(0.7%), Gurage (0.4 %), and others (1.2%). The religion composition mainly constitutes of Orthodox
Christian (80%), Muslim (12%), Protestant Christian (1%) and others (7%).
In addition to the 60 households already indicated to reside in the site, more number of households
can be expected based on the possible land use the area can accommodate. Accordingly, if an
area equivalent to some 40.0% of the total is expected for residential houses, about 52.0 hectares
of land can be made available for housing and its related functions. Corollary statement to the
above could be “… the area can accommodate about 2,540 additional households with the
assumption of 200 square meters parcel of land for a family”. This implies that a population of about
9,100 can be expected on the basis of average household size of 3.5 persons for Bahir Dar.
2.1.2 Social Structure and Cultural Practice
The area is endowed with a remarkable cultural mix. Population is characterized by predominantly
Amhara ethnic groups, speaking Amharic language and practicing Orthodox Christianity.
Uniform type of houses constitutes the settlements of farming communities. Houses are built with
wood and mud roofed by corrugated iron sheet or dry grass. Members are usually relatives.
Residents of farming communities work both individually and collectively during agricultural
seasons and on construction of houses. Concerning the collective working norm, residents mobilize
labor through festivities supporting weak people including disabled and needy. Churches and
Monasteries play crucial roles in safety and security domain in the lives of residents. Elders and
religious leaders are usually mediators in conflict management. They are also identified as
promoters of social norms.
2.1.3 Economic Potentials
Bahir Dar functions as an important economic hub (manufacturing and commerce) and tourist
destination. Local economic structure of Bahir Dar is prevailed by service sector and succeeded
by retail trade and manufacturing industries.
Bahir Dar is one of the strategically placed cities of Ethiopia. It is located near to two major water
bodies (Lake Tana and Blue Nile /Abay river) and is stationed close to major historical spots like
the monasteries (islands in Lake Tana), wild life reserves of the Semien Mountains, the old
historical cities of Gondar, Lalibela and Axum. Availability of relatively good road and air
connections make the city not only to be one of the fast growing cities of the country, but also
provides a multi-faceted opportunities/potentials for growth and this has contributed a lot for tourism
growth in the City. Presence of the attractions have lent a lot to the magnificent growth in the
number of tourists, receipts obtained from them and the number of tourist service giving institutions
in the City in the last few years.
Investment in Bahir Dar City is also showing an increasing trend. The most common investment
activities are in the Construction, Industry, Social Services and Hotel & Tourism sectors in their
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order of importance. The City and its surrounding has a great potential in resource based agro
industrial development, mining, tourism development and fishing on Lake Tana.
Despite Bahir Dar’s potential and growth, the town is also entangled with challenges of poverty,
unemployment, social problems and shortage of financial resource for the gigantic public
investment need.
2.1.3.1 Short Synopsis of Economic Activity in the NDP Site
2.1.3.1.1 General Overview
Agriculture is the main part of the local economy in the study area and its environs with mixed
farming dominantly practiced, including limited livestock rearing activity. The site is resided by
about 60 farming households who entirely engage in agricultural production. Illegal mining and
quarrying activity is another economic activity of the area. Though the number of miners is not
known, significant proportion of the site is used for illegal mining and quarrying activities, leaving
behind substantial excavations on the site to a depth reaching up to 3 to 4 meters.
Few business activities can also be seen in the NDP site. Small shops operate in the newly built
settlements to the south of the NDP site adjacent to what is called the ‘Diaspora Settlement’. The
farmers’ association in the Gedero village (NDP site) also runs a retail shop for residents.The
Zenzelema market, which is located some 3 kms east of the site, is a general market providing
agricultural products, garments, shoe wares, plastic utensils and others.
In general, agriculture is the dominant economic activity in the NDP site followed by few mining
and quarrying activities and retail trade businesses as briefed in the succeeding sections.
2.1.3.1.2 Urban Agriculture
Urban agriculture and fishing are common practices in Bahir Dar and the surrounding water bodies.
Assessment conducted by Canadian Urban Institute (CUI) - Ethiopian 20117indicates that farmers
at the outskirts of Bahir Dar rely on their land for farming, animal husbandry, water harvesting and
related livelihood activities. Informal settlement communities also live along the edges of sensitive
wetland areas of Lake Tana and rely on subsistence agriculture and animal grazing for their
livelihoods. Lake Tana is an important source of fish for the people around Bahir Dar creating a
good source of income for households participating in the fishing industry.
The same source also reveals that in the urban Kebeles along the waterfront and Blue Nile River,
over 25% of the economically active populations are engaged in subsistence agriculture. Residents
in these areas also engage in production of craftwork, fishing and small and micro trading for
additional source of income. Cattle, sheep and goat are the most widely reared animals and the
collection of dung is used as a source of fuel. The availability of forest, shrubs and field flowers are
suitable for apiculture (honey production), fuel wood and construction material (i.e. eucalyptus &
papyrus).
Several MSEs work in different agricultural activities along the water front areas of Lake Tana.
Apart from the formally organized MSEs who practice agricultural activities, several individuals and
households also practice various agricultural activities along the wetland areas of Lake Tana and
River Abay. Large tract of land is covered by Chat plantation specifically along the eastern part of
the City, which borders with Lake Tana. Different vegetables and fruits, coffee, sugarcane and
papyrus are also produced along the lakeshore and river Abay wetland areas.
7 CUI (2012): Socio Economic Report of Bahir Dar Water Front Development Study. Addis Ababa. Ethiopia.
Page 13
As highlighted before, urban agriculture is the prime economic activity of the NDP site (locally
named as ‘Guedero’ village). Based on the conducted field observation, close to 60 households
reside in the study area with an estimated population of 210 inhabitants. Farmers residing in the
NDP site are fully engaged in agricultural, vegetable farming and fishing activities and in the off-
farming activities (mainly in mining and quarrying activities) during the non-agricultural seasons.
The major crops grown in the NDP area include cereals (teff, wheat), vegetables in small scale
irrigation (onion, cabbage, tomato and potato), and fruit trees in few areas (mango, banana, papaya
and avocado). Most of the fruit and vegetable production in the area is for the domestic market,
which is limited in size. In addition, production of “Chat” is getting more attention from farmers and
informal practitioners. Chat is widely produced in the northern neighboring Kebeles and expanding
very quickly to all directions. As can be triangulated from the land use of the NDP site, the major
use covering the site is agriculture with scattered residential clusters. The western part of the site
is committed to vegetable farming via following the river banks of Abay.
As shown in the Table 2-1 under section 2.2.1, agriculture is the dominant land use with farmland
taking 55.6% and irrigated vegetable farming holding 10.2% of the total NDP area. This is followed
by illegal mining/quarrying (24.4%).and residential function/use takes about 10% of the site’s total
area.
2.1.3.1.3 Household Income and Expenditure
The NDP site residents are farmers who primarily lead their livelihood through cereals and
vegetable production, fishing and animal rearing and also via engaging in off-farm activities during
non –agricultural seasons. These are found to make little money as insisted by Canadian Urban
Institute’s (CUI) study on Bahir Dar water front area. Accordingly, a sample survey conducted on
the area (which also includes the current NDP site) by CUI in 2012 shows that residents in the area
earn meager amount of monthly income. The conducted survey shows that most household
residents (~45%) of the water front area are low income groups who earn less than a dollar per
day (less than Birr 1,000 per month) and about 32% of the households disclosed that they earn
more than Birr 2,000 per month. In other words the majority of the households (~77%) in the area
earn less than Birr 2,000 per month, apparenty indicating the per capita monthly income of Birr 571
considring average family size of 3.5 per household in the NDP site.This is even less than the
Ethiopian current level per capita income attained which is Birr 1,000 per month. The Ethiopian per
capita income (annual) was reported to be USD 600 in 2014. The resut also shows that the per
capita daily income of residents in the NDP area is about USD 0.95 which is significantly below the
absolute poverty line according to the Word Bank’s USD 1.25 threshold level for absolute poverty.
The reported income level seems not to satisfy the households’ need as this is substantiated by
the majority of their response (62.5%) who disclosed that their monthly income is not adequate to
satisfy their expenditure needs.
The fact unveiled above shows that residents in the NDP site survive with meager income and in
general, this pattern reveals that poverty is widespread in the study area, which entails rigorous
economic intervention.
2.1.3.2 Implications for NDP Site Planning
2.1.3.2.1 Tourism and Hospitality Industry
Bahir Dar and its surrounding areas have numerous natural, cultural and manmade attractions.
The City is indeed one of the leading and best tourist destinations in Ethiopia with a variety of
attractions in the nearby Lake Tana and Blue Nile River. Bahir Dar is distinctly known for its wide
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avenues lined with palm trees and a variety of colorful flowers and is also considered as one of the
most beautiful, well planned, and safest cities in Africa by many standards. The City was awarded
UNESCO Cities for Peace Prize in 2002 for managing to address the challenges of rapid social
and economic developments.
Pursuant to these attractions, the number of tourists visiting Bahir Dar is growing from time to time
recording a staggering average annual growth rate of 22% over the past decade (Bahir Dar Culture
and Tourism Office).The majority of visitors coming to Bahir Dar are found to be vacation tourists
which is in fact an indicator of the real start of healthy tourism development in the town implying a
positive impact for the growth and development of the tourism industry. Especially the water front
areas of Bahir Dar are becoming very attractive for developers in the hospitality sector. Information
availed from Bahir Dar City Administration Investment Promotion Office shows that investment
activities along Lake Tana shore are dominated by hotel and catering related ventures. The land
use analysis conducted by CUI’s study on water front area of Bahir Dar shows that recreation and
tourism occupies about 25 hectare of the lakeshore area of the town.
As the NDP site is particularly located both along Lake Tana and River Nile, the area has an
imminent potential for hotel and tourism related developments. For instance, access to three
monasteries is possible from the west side of the NDP site, all located on Lake Tana. Debre Mariam
is 1.5 km away and the other two Kebran Gebriel (monastery for men) and Entos Eyesus
(monastery for women) are located some 30 minute boat ride from Bahir Dar City centre. On the
mainland, one Orthodox Church is located at 1.5 km from the NDP site to the south and another is
2 km from the site to the north east.
These facts apparently reveal that Bahir Dar and its surrounding district in general have investment
potentials in the areas of hotel and tourism related ventures. The direct implication of this for the
current NDP site under study is thus clear – more proposals are required for development of
catering related businesses in the area.
2.1.3.2.2 Resource Based Industrial Development
According to the growth belt study of Amhara region, lake Tana surrounding is considered as ‘belt
one’ which is referred as ‘Tana Zuriya growth corridor’ among other four growth belts of Amhara
National Regional State. As per this source, LakeTana is taken as a central reference for its
surrounding five zones (Awi, East Gojjam, West Gojjam, North Gonder and South Gonder) to be
considered as growth corridor ‘belt one’. Lake Tana, which covers 3,110.6 km2 of area, has been
identified as the largest lake for fish production potential. Similarly, its surrounding five zones are
identified to have gigantic poultry development potential along other diversified crop production
prospective. These include production of oilseeds and spices (nech and tikur azmud, Ginger,
linseed, Noug), flower plantations, fruits (apple, grape, avocado, lemon and mango) as well as
vegetables (onion, garlic and tomato). Cattle, sheep and goat rearing are also considered as
livestock potentials of the belt.
Similarly, as per Bahir Dar IDP Urban to Urban and Urban to Rural linkages study8, Bahir Dar City
and its surrounding area has numerous resource based agricultural and mineral development
potentials. Accordingly, agro industrial development, livestock products processing industries
development, fish processing industries, forest products processing industries, honey processing
industries and minerals processing industries (such as limestone and cement factories, hollow
8 Bahir Dar City Integrated Development Plan Urban –Urban and Urban-Rural linkage study (2006); prepared by
Federal urban planning institute (FUPI), Urban Development Bureau of Amhara Region and Bahir Dar Metropolitan
Administration, April 2006, Addis Ababa.
Page 15
block factories, and other stone, clay, glass and concrete processing plants) are the identified major
agricultural and mineral processing manufacturing industries potential developments in and
around Bahir Dar.
The current NDP study should thus consider this apparent potentials of resource based agricultural
and other developments while putting proposals for the NDP site.
2.1.3.2.3 Bahir Dar University
Bahir Dar University, School of Agriculture and Environment Studies is located at about 3 km to
the east of the NDP site, accommodating between 4,500 to 5,000 students and providing formal
and informal adult education. This university community requires different services including food
stands, boat tours and other innovative need-based activities. The implication for the current NDP
site study is that spaces need to be reserved for the above described function needs. Establishment
of research centers in relation to the University may also entail for additional space requirement in
the NDP site.
2.1.3.2.4 Zenzelma Market
Presence of a local market of Zenzelma in close proximity to the NDP site (~3 kms), which serves
as a general market would undeniably create an opportunity to the area’s farmers to transact their
different agricultural produces. Currently different goods and mainly agricultural produces,
garments and plastic items are chiefly transacted in the market.
2.1.3.3 Summary of Implications for Planning
 Reserve area for intensive urban agriculture and stores/transfer facilities for the agricultural
produces. The nearby Zenzelma market can be a potential destination for vegetables and fruits
produced by farmers from urban agriculture.
 Establishment of different recreational facilities, which may include hotels, resorts, parks, boat
recreations and the like.
 Introducing catering services including food stands, boat tours and other innovative need-based
activities that targeted the nearby University Campus and Zenzelma town
 Bringing a favorable water transport connection which can link the NDP site to islands in the
lake which produce food items (crops, fruits, seeds etc.), construction materials (wood, sand,
stones, etc.) and accommodate tourism destinations.
 There is a need to improve the livelihood/income level of residents in the NDP site through
employing them in various developments coming to the area. Short term employment may be
generated for the unskilled labor force from the villages to construct houses in the Diaspora
settlement and other adjacent neighborhoods. Residents may also participate in different
developments during construction and implementation stages. People may also get organized
in the following resource based MSEs in the area:
o Urban agriculture (Vegetable and fruits production, fish production, and animal rearing)
o University targeted services (Beauty related - beauty salon and barber shop, internet
cafes and stationary items trading, retail trading, etc.)
o Tourism, catering and hospitality related (Food items preparation, artifacts production,
tour guides, and water transport)
o Construction (Labor work, wood and metal works, masonry, carpentry, painting,
electricity and sanitary works, and quarrying and cobblestone production and
installation)
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2.2 The Physical Site Analysis
2.2.1 Land Use Assessment
The NDP project covers 130 ha of land area, the majority of which falls in agriculture land use
category with scattered residential clusters. Adjacent to the river banks, the western side of the
site is committed to vegetable farming. In addition, a significant proportion of the site exhibits illegal
mining and quarrying activities, leaving behind substantial excavations to a depth reaching up to 4
meters. Map 2-1 on the following page shows how land is used currently and its integration with
the surrounding area.
Table 2-1 – Proportion of Existing General Land Use Coverage
General Land Use Area [ha] %

1 Residential 12.7 9.8
2 Agriculture 72.3 55.6
3 Vegetable Farming 13.3 10.2
4 Illegal mining/quarrying 31.7 24.4
Total 130.0 100.0
The NDP site is surrounded to the north by the farmers’ villages (Guedero and Gwedgwad), to the
south by the Diaspora settlement (under construction), on the east by vacant arable land, and in
the west by Abay River and Lake Tana. At the western periphery of the site, there are farming
community clusters. Settlements do not have a uniform pattern and have unevenly sized and
irregularly shaped plots occupied by a uniform housing typology. Roads connecting houses have
no regular characteristics. The “Diaspora Settlement”, which is under construction, has a grid
settlement pattern and is populated by two-story buildings. The plot sizes and the built up areas
are not harmonized, creating a modern housing project with a questionable environment
The NDP site is crossed by several footpaths connecting farmers’ villages to the city centre. There
is also a 20m wide collector street connecting the site to Bahir Dar – Gondar Street, the major
transportation corridor.
Informal mining quarrying stone for construction materials is an incompatible use and a threat for
the environment quality of the area. Residential settlements close to the water bodies are identified
to be a potential source of pollution. The concept of a buffer zone needs to be implemented in these
areas.
Infrastructure provision in Bahir Dar, as in the case of most cities in the country, is uncoordinated
and discontinuous. This type of development is costly and over-extends the financial requirement
of the city administration.
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Map 2-1 – Topography, Location and Integration Map for Abay Mado NDP Site
Page 18
Map 2-2 – Existing Features Map of Abay Mado NDP Site
Page 19
2.2.2 Topography
Bahir Dar’s topography is in general characterized as flat plain with some pockets of land with hills,
rugged and undulating features. The elevation of the study area ranges between 1786 m around
lakeshore (western boundary) and 1836 m in the eastern boundary. The slope gradient in the study
area varies between 2 and 5 percent in general with a small area closer to the waterfront measuring
less than 2 percent. The general orientation of the slope decreases towards Lake Tana and Abay
River creating natural drainage ways flowing to same direction.
2.2.3 Climate
The climate of Bahir Dar is classified as warm and temperate with good rainfall. As Graph 2-2 and
2-3 demonstrate, Bahir Dar has an annual average temperature of 19.5oC and a total average
annual rainfall of 1443 mm. The month of April records the highest temperature of 29.6oC while
January has the lowest temperature (8.3oC).
Graph 2-2 – Climate of Bahir Dar: Average Temperature (oC) and Sunshine Intensity (hours)
Bahir Dar areas including Abay Mado NDP site enjoy an annual daily sunshine of 8.3 hours; it also
exhibits a humidity ranging between the maximum of 63% and the minimum of 55%. Concerning
precipitation falling annually, the local meteorology center recorded an average of 1443 mm. The
rainy season, known as June – September, account for approximately 83.2% of the overall average
annual rainfall. Wind blows dominantly towards the southeast direction during the dry season and
northwesterly in the rainy season at a maximum speed of 1.8m/s.
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Graph 2-3 – Climate of Bahir Dar: Average Humidity (%) and Rainfall (mm)
2.2.4 Geology, Soils and Hydrology
2.2.4.1 Geological Setting of the Area

The rocks exposed in Bahir Dar area mainly include basaltic lava flows (Lava outpourings and
domes) and related spatter cones. The basaltic lava flows basically comprise of porphyritic and
aphanitic basalts. Most of these are believed to be fissural eruptions, although probable point
sources (central vents) could be inferred to some outcrops.
Generally the rocks out cropping in the study area can be categorized into three main units based
on lithologic variations. These lithologic units are:
 Aphanitic Basalt
 Vesicular Basalt
 Scoriaceous Basalts/ Cinder Cones
Abay Mado NDP site lies on the Aphanitic Basalt. The aphanitic basalt has a dark-gray color, fine–
grained, and mainly composed of olivine, pyroxene and feldspar. It occurs as lava outpourings.
This unit of basalt has very closely spaced open joints at the surface. These join becoming light
and widely spaced at depths greater than 1.5 meters.
As a result of physical disintegration and chemical decomposition of volcanic rocks, the type of
soils covering the study area is dominantly residual fine soils including dark brownish clay and silt
clay soils developed on basaltic bedrocks. Based on field observation (excavation made by informal
quarrying), bedrocks are highly weathered and fractured, particularly at depth.
2.2.4.2 Hydrology
The rock exposed in Bahir Dar mainly include basaltic lava flows and associated spatter cones and
exhibit a wide range of hydrogeological properties. The hydrogeological characteristics of the rocks
occurring in the study area would be summarized below.
The NDP site lies entirely on an Aphanitic basalt formation. Outcrops of this rock vary from massive
to vesicular type. Vesicles, which are abundant on the aphanitic basalts, are not interconnected
Page 21
and in some cases partially filled by secondary minerals. Thus, vesicles have little or no effect on
the overall rock permeability. The dense or aphanitic basalt unit represents an aquifer but only
when weathered and/or fractured.
In terms of the degree of weathering in most places out crop of the aphanitic basalts are slightly
weathered and consequently, posses low infiltration capacity.
However, as the occurrence and movement of exploitable ground water in these massive rocks
depends on the inter connection of the fracture openings and their interconnection with water
bearing layers, further investigation into the extent of the factures is recommended here. Since
such openings are limited and possibly filled with clay materials, the groundwater potential as well
as the infiltration capacity in these rocks is generally low and limited to the major fracture openings.
Groundwater moves from levels of higher energy to levels of lower energy, its energy being
essentially the result of elevation and pressure, the velocity heads being neglected since the flow
is essentially laminar. Since, the overall groundwater flow direction appears to be controlled by the
morphology of the area, it’s believed that the general groundwater flow in the area and the vicinity
is mostly towards the lake and Abay River.
In addition, the NDP site is bounded in the western direction by Lake Tana. The Lake has a shallow
average depth of 9m. It covers more than 3,000 km2 with a volume capacity of 28km3, holding about
29x109 m3 of water. More than 40 rivers feed the Lake and only Abay River flows out. The Lake is
a habitat for different aquatic invertebrates, fishes, amphibians, reptiles, mammals, and birds.
The major river in the study area is Abay River (Blue Nile) that drains out of Lake Tana and flows
on a relatively wide and flat channel to the south direction. An inventory reveals that Bahir Dar is
endowed with good potential of ground water, with a level ranging between 1m and 30m depth.
2.2.4.3 Construction Materials
To satisfy the growing demands of construction materials, like dimension stone and aggregates, a
number of quarries are actively operating around the town.
The widely available basaltic formation could easily be mined for dimension stones, source of
aggregates. The scoriaceous basalts could serve as the bulk of material for the construction of
roads within and around the project site.
2.2.5 Key Natural Features with Impact on Planning
2.2.5.1 Vegetation
Various species of green plants are found along the bank of Abay River, the shores of Lake Tana,
in the NDP site and around neighboring villages. Residents are living in harmony with vegetation
and trees cultivating coffee and variety of fruit trees including mango, guava, orange and papaya,
growing under Acacia, Celtus Africana and 200-300 years old Oak trees. The dominant specie of
greenery in the area is Eucalyptus. These species of vegetation and trees are cut to satisfy dwellers
demand for fuel wood, construction material, household furniture, technical tools, and animal
fodder. Oak is planted in compounds and front yards as a shed tree, landmark and beautification.
Cyprus papyrus beds and reed beds are as well species found in the wetland habitats of Lake
Tana.
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2.2.5.2 Agriculture
Agriculture is the main component of the local economy in the study area and its environs. Mixed
farming is practiced, including small flocks of animals. The major crops grown in the area include
cereals (teff, wheat), vegetables and tubers in small scale irrigated farm (onion, cabbage, tomato
and potato), and fruit trees in few areas (mango, banana, papaya and avocado). Most of the fruit
and vegetable production in the area is for the domestic market, which is limited in size. In addition,
production of “Khat” is getting more attention from farmers and informal practitioners. It is widely
practiced in the northern neighboring Kebeles and expanding very quickly to all directions.
Farmers in the study area and its neighboring kebeles raise a limited volume of livestock composed
of cattle for both production of milk and drafting power for crop production (sheep, goat, poultry and
donkeys). Fishing (white fish, tilapia and red fish) and apiculture (individual bee-hives on trees in
small domestic plots) are also practiced informally by farmers residing in the study area.
2.3 The Site Development
2.3.1 Infrastructure
2.3.1.1 Connections / Junctions / Transportation

The NDP site is connected to the Bahir Dar – Gondar highway. In addition, according to the New
York University Urban Expansion Initiative (UXI), two 30 m wide roads are planned for construction.
Currently, the right of way is reserved and approximately 20m width is graveled.
Unorganized footpaths connect clusters of farmers’ communities. The major ones serve to connect
the area with the main transportation corridor (Bahir Dar – Gondar highway) located 2km south
towards Bahir Dar City and 3km east towards Zenzelema Town and need to be retained.
The UXI proposal bounding the NDP site in the west appears to be laid down on the flood area.
This needs realignment towards the east.
The communities within and around the NDP site mainly travel on foot. There is limited access for
motorized rickshaws (locally known as bajaj) up to the Diaspora settlement.
Donkeys and animal drawn carts are used for transporting agricultural products and other goods
to or from the market. Only a limited number of bicycles were observed.
2.3.2 Utilities
2.3.2.1 Sanitation and Solid Waste

The daily average per capita solid waste generation is 0.2 kg. The city uses a container system,
with containers placed at specific corners, which are transported and emptied at a land fill site
located at 10.5 km south of the city. Currently, the city manages to collect and dump 60 – 70% of
the solid waste. In the NDP site, residents get rid of their solid waste in open spaces, including
Abay River and Lake Tana.
It was observed during the survey that Bahir Dar does not have proper sanitary facilities or any
planned sewerage system. In average, the city generates approximately 200m3 of liquid waste per
day, of which less than 15% is collected by the City Administration using 2 vacuum trucks running
seven trips daily. In the NDP site, residents use pit latrines, which will never ask for vacuum
services.
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2.3.2.2 Water Supply

Bahir Dar City Administration (BDCA) produces a total of 15,000 m3 of water daily and distributes
to urban dwellers with a calculated average of 75 liters per person. Few households in Bahir Dar
City have pipe water connections and the majority use unprotected well, river, and lake as water
sources. Only 65% of the households access water from either domestic connections or public
water points.
The municipal 150mm diameter water supply pipe has only reached the Diaspora settlement.
2.3.2.3 Drainage
Naturally, water drains towards the Abay River and Lake Tana. Coupled with the weak retention
capacity of the soil found in the site, gullies are easily created by the runoff from upstream. In
addition to this, illegal mining activities leave behind large pits scattered haphazardly in the area,
which will create adverse effect on the natural drainage system.
2.3.2.4 Electricity
Hydro-electric power is the source of electricity in Bahir Dar, and this furnishes mainly the city
center; farming communities have limited access to electric power. Due to various developments
underway in Bahir Dar City, unexpected interruption of power is common. The City Administration
recognized this challenge and is working on upgrading its capacity from 12 to 72 MW since 2013.
The daily average electrical power consumption of a person is greater than 37kwh..
Residents in the NDP area do not have proper access to power grid, which leaves them without
any electricity. This can be interpreted as negative impact on the deterioration of the environmental
quality, as residents use biomass for cooking fuel.
2.3.3 Public Amenities
2.3.3.1 Education
Both traditional and modern education institutions exist in the areas surrounding the NDP site. The
traditional system is mainly based on learning religious obligations of Christianity in churches and
monasteries located at less than 2km distance.
The modern education consists of formal standardized approaches of learning. One primary school
is located north of the NDP site in one of the rural villages locally known as Guedero. Another
primary school exists in Zenzelema town, approximately 3 km east along the Bahir Dar – Gondar
highway. The high school serving this area is located some 5 km away in the south east direction.
No kindergarten exists within close range of the study area.
Twelve staff run the education service in nine classrooms for about 400 students. According to the
person in charge of managing the school, Guedero primary school has a limited infrastructure and
sub-standardized facilities, putting service delivery under considerable stress. The following
facilities and services are not available at the school: library, laboratory, health/emergency post,
play grounds and sport fields, staff rooms, audio-visual facilities, and other teaching aids. The
student enrollment rate is found acceptable by the administrator.
Bahir Dar University, School of Agriculture and Environment Studies is located 3 km to the east of
the NDP site, accommodating between 4500 and 5000 students and providing formal and informal
adult education.
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2.3.3.2 Health
Heath services in the study area and its environs are inadequate. Bahir Dar City has one referral
hospital and two health centers located in the east and west sides. The eastern side heath center
is located at 2 km south of the NDP site. In addition, the City has 34 clinics of which only one is
public. All are located in the city proper far from the NDP site.
The health post located in Guedero Village has only two rooms and one health extension staff to
operate. Due to this limitation, the health post can only provide services for raising awareness to
the community on basic health, hygiene and sanitation, reproductive health, and counseling
services on HIV AIDS, malaria and other related issues. For laboratory tests and serious illnesses,
residents have to refer health centers in Zenzelema Town (3km east) or Abay Health Center (2.3
km south).
Diseases common in the area are intestinal parasites, skin disease, bronchitis, pneumonia, and
urinary infections, all of which can be addressed through primary health care including proper
management of marsh lands, promotion of household and environmental hygiene as well as
promotion of the dwellers’ socio-economic status.
2.3.3.3 Religious Facilities
Access to three monasteries is possible from the west side of the NDP area, all located on Lake
Tana. Debre Mariam is 1.5 km away and the other two – Kebran Gebriel (monastery for men) and
Entos Eyesus (monastery for women) are located some 30 min boat ride from Bahir Dar City centre.
On the mainland, one Orthodox Church is located 1.5 km from the NDP site to the south. Another
is 2 km away from site to the north-east direction serving the northern villages of Gedero and
Gwedegwad. Churches use their backyards as cemeteries.
2.3.3.4 Recreation and Formal Green Open Space
There is no recreational facility or formal green space in the study area or in closer range.
2.4 Policy Analysis
2.4.1 Assessment of Relevant Policy and Planning Documents
2.4.1.1 Relevant Policy

In order to provide a complete study with government policy objectives and strategies, it is essential
to look at the current government urban development policy framework. Ethiopian government has
published a number of policies and strategic documents, which have direct relevance to this
assignment. The Federal Urban Development Policy, Urban Capacity Building and Community
Mobilization Strategy, Growth and Transformation Plan (GTP), Climate-Resilient Green Economic
Growth Strategy (CRGE), Ethiopian Cities Prosperity Initiative (ECPI), and the Urban Local
Government Development Project (ULGDP) are among many important ones.
All these policies and strategies are geared towards the country’s main development agenda of
eradicating poverty by achieving broad based, accelerated and sustained economic growth in all
sectors. The Government of Ethiopia has prepared the Growth and Transformation Plan (GTP)
with the intention of transforming the country from agriculture led economy to an industrialization
economy and from rural to urban-based economic transformation. Based on the experience of
different countries managing urbanization and industrial development, this transformation demands
a high level of skills.
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To get a full contribution in the accelerated socio-economic development of the country, GTP has
set objectives for the urban development sector, which is to ensure stronger urban local capacity
that can develop and manage urban centers with proper tools including urban planning, urban
infrastructure and service provision to urban citizens sustainably and improve the urban
environment for living and work. In line with these, the ECPI is developed by the Ministry of Urban
Development, Housing and Construction (MoUDHC) for the period of EFY 2007 – 2017 (GC
2014/15 – 2024/25) as its contribution to the GTP. The initiative will lead to the establishment of
green, resilient and well governed cities. The ECPI has nine strategic pillars that will contribute to
Ethiopia’s achievement of middle income country status by producing a transformation in the
economic productivity and in the good governance of cities.
The nine strategic pillars include the (i) Urban Transformational Leadership Development, (ii) Micro
and Small Enterprises and Urban Productivity (iii) Urban Developmental Good Governance and
Capacity Building, (iv) Urban Planning, Land Development and Management, (v) Housing
Development, (vi) Construction Industry Development, (vii) Integrated Urban Infrastructure and
Services Development, (viii) Greenery Development and Sanitation Improvement, and (ix) Inclusive
and Safer Cities Development.
Pillar 4 pinpoints important issues that help enhance proper urban planning and management in
Ethiopia; these include effective urban plan preparation and implementation; improvement of the
urban land development and administration; production of urban base map; and surveying and
registration of the land use rights. ECPI aims to strengthen municipal capacity in urban plan
preparation, boundary demarcation and implementation, as well as in land use planning and spatial
development. The preparation of National Urban Development Scheme and the study on the
competitiveness of Addis Ababa and the preparation of 12 Neighborhood Development Plans
(NDPs) as a package are some of the government initiatives with regard to the implementation of
the policies and strategies.
The overall objective directions of the national policy and major programs, as mentioned above,
are to ensure that the country’s investment in urban plan preparation and implementation be used
to improve the quality of life of urban residents and to contribute to the economic growth and
development of urban centers in the country (MoUDHC, 2013). It is believed that these documents
will improve the current overarching poor performance in the urban sector; including low quality of
urban plans prepared by limited capacity; limitations in establishing timely and well-built information
dissemination system among all tiers of government (federal, regional, and towns/cities); the
absence of strong monitoring and controlling system on violation of urban plans; and poor
organization and involvement of the private sector in the urban planning realm. However, ECPI
states in its document that a strong private sector partnership is required for transferring knowledge
that fosters its proper implementation. The partnership should give priority to ‘building sustainable
systems and institutions’ for urban plan preparation and effective implementation in order to enable
Ethiopian cities to play a critical role in tapping into the process of economic globalization as a
means to accelerate industrialization.
In the final analysis, the Ethiopian government can manage the challenge of the future urbanization
strategically on a reasonable period of time with the help of currently formulated government
policies and strategies by building the necessary partnership, institutional and legal frameworks.
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2.4.1.2 Structure Plan

2.4.1.2.1 Factors Considered Significant in the Development of an Expansion Area NDP
The current structure plan of Bahir Dar, also called Integrated Development Plan (IDP), was
prepared in 2006. The geographic scope covers areas of the City up to the southern boundary of
the Diaspora settlement. The vision of Bahir Dar in the IDP report recommends, that “Bahir Dar
shall be a more comfortable habitat for living and working through its investment and tourism
development and shall become a model and attractive city in Africa.” To achieve the vision different
key performance areas are identified and further detailed as objectives and strategies. These
include the following six issues: housing development, environmental and disaster management,
road and sewerage system development, infrastructure and service development, social and
economic development, financial development and good governance. The plan discusses its
objectives, strategies and projects as a way to achieve the City’s mission and vision.
2.4.1.2.2 City-wide concepts
The existing structure plan (IDP) has developed an approach to interpret the vision, which focuses
on living, working, investment and tourism. However, the idea of creating comfortable living and
working spaces and how these could be attractive for investment and tourism has not been well
articulated in the vision. The plan addresses the six priority issues listed above with their respective
root causes, resultant effects/consequences and the available potentials and opportunities to solve
them. Even though the plan only focuses on projects that address existing situations, the IDP
approach helps to identify and understand a number of key issues and daily routines. In addition,
the plan identifies three intervention areas including the downtown revitalization, waterfront
development and urban expansions, where specific projects are designed to address planning
issues including: land development, regularization of informal settlements, housing development,
slum upgrading schemes, drainage and flood protection, urban information systems, waste
management, green and open space development, road and infrastructure development (water,
electric power, and telecommunication), urban agriculture, urban finance administration, fund
raising, tourism development and institutional capacity building.
The Bahir Dar City Administration, in collaboration with the Canadian Urban Institute, conducted a
waterfront development plan during the period of 2012-2013. The project covered a 12km length
of the urban shore of Lake Tana including the downtown core and urban expansion areas in both
east and west directions. The waterfront development project aims to create a balance between
environment, economy and socio-cultural heritages. It proposes nodal areas for higher density
development defined by high rise multi story buildings properly arranged with standard open and
green spaces, public plazas, sports parks, green networks (landscaped green areas, amusement
park, forest, and gardens), public services; urban agriculture and commercial facilities are also
included. Lower density built-up areas are planned outside the nodes including low-rise urban
expansion. Main-street corridors are proposed for commercial uses. This includes ‘perforated
development’ provided to enhance public accessibility to the waterfront and to maximize the flow
of breezes from the lake that cool the temperature of Bahir Dar city.
2.4.1.2.3 Local area recommendations
The spatial development framework proposed in the Bahir Dar IDP defines four major development
directions for the following ten-year planning agenda, among which is the Bahir Dar – Gondar
highway. Although the NDP site is not covered by the structure plan, land uses in that vicinity are
proposed to be predominantly residential, agricultural and recreational.
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 Road networks are proposed that frame the NDP site and enhance its proper linkages to the
city center. Arterial, collector and local streets are properly laid out in the proposal. The UXI
study significantly proposes urban expansion areas served by a 1km grid of 30m wide arterial
streets.
 The NDP site would be bounded by arterial streets adjacent to a buffer separating it from the
sensitive waterfront environment.
 Retain waterfront areas as green and open so that breezes from Lake Tana would cool all
development areas.
 Implement environmental protection measures to control water pollution.
2.4.1.2.4 Applicable policy framework

 The federal government of Ethiopia has launched the Growth and Transformation Plan (GTP)
with the vision to reach to the level of medium income countries by the year 2020. Promoting
the agriculture sector as the main growth source, enabling the industrial sector to play a key
role in the economy, expanding and ensuring the quality of infrastructure and social
development, capacity building and promoting good governance, expanding and promoting the
efficiency and benefits of youth and women are the strategic pillars of GTP.
 The plan focuses on climate change adaptation and mitigation to achieve a "climate change
resilient green economy". It is planned to adapt climate change issues in related policies, laws,
strategies, and urban plans to identify infrastructure and water bodies vulnerable to climate
change and undertake adaptation measures. Additionally it is planned to protect wetlands, to
improve the solid waste management system and to mitigate environmental pollution.
Preparation of an action plan, education and capacity building for planning and implementation
at all administrative levels, assessment of appropriate technology, the dissemination of
information to communities according to best practices and enforcement of environmental
protection law are among the stated implementation strategies. In tandem with the GTP a green
economy plan, which aims to reduce emission through climate change mitigation measures is
also formulated.
 Therefore in line with these climate change mitigation and adaptation measures, appropriate
strategies shall be mainstreamed in the NDP project. Additionally, in line with the policy
directions and above stated programs, focus is given to include Micro and Small Scale
Enterprises (MSE) and an Integrated Housing Development Program (IHDP) into the project
and to use these as leverage to improve the livelihood of residents. These actions support the
integration of social, economic, physical and spatial, environmental and institutional aspects in
the NDP project.
 The Integrated Housing Development Program of Bahir Dar plans to significantly alleviate the
housing problem through the development of convenient housing, which is cost and land
saving/efficient for all social groups, and through the process to create wider employment
opportunities and ultimately to improve the livelihood of urban residents. In line with the above
outlined objectives, more programs that are flexible need to be designed taking into
consideration beneficiary cooperatives’ demands while designing and building houses. IHDP is
looking for newer typologies and housing finance schemes.
 The Urban Land Lease Proclamation no. 721/2011 aims to establish “an efficient, equitable and
well-functioning land and landed property market, sustenance of a robust free market economy
and to build a transparent and accountable land administration system that ensures the rights
and obligations of the lesser and the lessee”. Moreover, the proclamation aimed to establish “a
prudent and responsive land resources management system that would enable sustainable
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and rapid growth”. The following parts of the proclamation are considered to be particularly
relevant for the design and implementation of the NDP project:
o Part Two contains articles that deal with land possession, other leasehold permits,
information relating to urban lands prepared for tender, publicity of urban land tender
plans, the tender process, allotment of land, urban land lease price and relate to grace
periods.
o Part Three describes the administration of urban land lease holdings.
o Part 5 contains miscellaneous provisions stipulating the powers and duties of the
Ministry of Urban Development and Housing Construction, which is entitled to follow up
and ensure the proper implementation of this proclamation in all regions and city
administrations and to provide assistance and capacity building support. The powers
and duties of regions and city administrations, which are to administer land in
accordance with this proclamation and issue regulations and directives necessary for
the implementation of the proclamation, are also stated.
o Furthermore, the proclamation outlines that urban land shall be permitted to be held by leasehold
through the modality of tender or allotment. It is mentioned that upon the decision of the
cabinet (city council), it is possible to allot land (which is defined as providing land by
lease without tender) for government offices, social services, manufacturing industries
and for public residential housing construction programs and government approved self-
help housing constructions.
2.4.2 Local Capacity and Implications
In its urban planning and implementation strategic document, the MoUDHC identified that there are
encouraging attempts of preparing urban local development plans at different stages; however it
has been a challenge putting these plans in action. Several factors were cited, among which lack
of capacity to design feasible implementation strategies, leverage financial and human resources,
engineer appropriate institutional and regulatory arrangements, and setup strong coordination
among stakeholders dominate.
Unfortunately most urban plans, be it a structure plan, and neighborhood development plan, are
presumed to be implemented primarily by local governments. This preconceived outlook ignores
stakeholder analysis and municipal budget implication and imposes its massive impact on
implementation of NDPs. Most ended up shelved and only few are realized with huge government
involvement, which focuses on large-scale investments and financial incentives to attract activities.
This implies that there is a need to develop the project planning and implementation capacity of
local government by adopting innovative methods to leverage financial and human resources
locally from beneficiaries, establish proper coordination between public institutions to minimize
redundancy of activities and conflict of decisions costing local government a huge lump sum
financially and morally, and promote cooperation between public and private actors. Because of
its huge investment cost required to implement this NDP, BDCA is expected to involve residents
and other development actors and share costs and responsibilities to implement local infrastructure
including local roads and footpaths, street furniture, greens in the inner blocks, playgrounds and
public amenities like educational and health facilities. These responsibilities and duties have to be
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clearly stipulated in the tender9 and building permit documents and contracts issued by the local
government to housing cooperatives and private developers.
The need to improve the capacity of the city in general and plan preparation and implementation
bodies in particular is indubitable. Local Governments need to crucially address the disconnection
between plan making and decision making processes. Thought plans are supposed to guide the
decision making process, most cities follow ad hoc decision-making process. Therefore decision
makers should be involved from the initiation to implementation of plans to gain more clout to
integrate social, economical, physical, legal technical, financial environmental and political issues.
Having set such frame of thinking, addressing institutional capacity limitation is crucial. Retaining
appropriate skill at city level (government offices) is very low and has been a challenge of cities for
some time. Even though there are rooms for improvement, the private sector is better off. Creating
a strong planning and implementing organ directly accountable to the mayor is important. Such a
body should focus on integrating the different actors and continuously build skill of experts.
Cities should focus on key infrastructure investment and mobilizing the community and private
sector, including international financiers, to get involved in the development process of support
infrastructure. Attempts to be involved in all development activities have so far been proved as an
impossible task for the city government. Clearly defining level of engagement and reward
mechanisms of the private sector and community will encourage involvement.
Accountability is another crucial issue that needs to be addressed. When NDPs are prepared the
preparing bodies should be held accountable for the quality of plan prepared. In this regard clear
manuals and guidelines, rules and regulations should be developed.
Timely implementation of plans can only be possible when supported by the decision making body.
A Decision maker at the top level, e.g. mayor, can bring about integration of different organs –
utilities, sector offices community, etc. – in infrastructure and service provision from planning to
implementation.
9 When launching expression of interest for land developers

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3. Defining the Program
3.1 Development Potentials and Constraints of the NDP Site

The following section outlines priority development tasks, in the context of an international
perspective, that face urban centers in Ethiopia on current issues in urban local planning. It also
addresses the ToR as the point of reference and identifies key issues that would apply in the
selected urban centers.
It assumes a broad study area that would provide a wider context for the Neighborhood
Development Plan. This is provided by reference to conditions in the greater urban area to include
economic competitiveness, environmental management, resilience, inclusiveness and
comprehensive linkage between territorial development, land use planning and urban design.
Development strategy for the NDP would capitalize on both the assets of the selected area and its
proximity to a larger metropolitan area. It would also respond to the area’s special cultural and
natural environments to identify a comprehensive mix of uses to meet local development needs. It
would thus be a basis – providing Generic Plan Objectives – for coordinating economic,
environmental and social factors within an integrated infrastructure and services strategy for the
area together with development of an implementing strategy.
These generic objectives focus on five outcomes for development. These are (i) competitiveness:
to help cities attract investments and create jobs by improving land markets, connectivity and
regulatory environment for business development; (ii) green environment management: to help
cities plan for a sustainable ecosystem; (iii) resilience: to strengthen cities’ multi-dimensional
resilience and ability to cope with shock and better manage climate risk, disaster risk, economic
shocks and social conflict; (iv) inclusiveness: to help cities improve access to land, affordable
housing, jobs and basic services, economic opportunities and scaling up efforts to upgrade slums,
enhance community participation, and tackle urban poverty and social exclusion; and (v) strong
cities: to help cities increase their capacity to carry out integrated territorial development policies
and land use planning.
3.1.1 SWOT Analysis
A SWOT analysis has been prepared and key issues identified for each outcome of development
identified in the above section: Competitiveness, Green framework, Resilience and Inclusiveness,
which all together lead to strong city systems.
STRENGTHS – the competitiveness point of view includes (i) Availability of good and multiple
access options of road infrastructure; and (ii) availability of high quality land possible to attract
economic investment. Green and resilient cities refer to high quality environmental landscape and
natural resources including lakeshore and mouth of Abay River for tourism-related investments and
fertile agricultural land for vegetable and fruit production. Inclusiveness and strong city systems
deal with the availability of (i) attractive high quality location for range of amenities, (ii) good
transportation options in close proximity, and (iii) social infrastructures within the NDP site and in
close proximity (higher education facilities like Bahir Dar University).
WEAKNESSES – in terms of competitiveness, the development of the NDP site will be obstructed
by (i) the higher development costs as it is located far from the city center, and (ii) the limited
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employment options in the adjacent neighborhoods. Concerning green and resilient cities concept,
the NDP site is affected by land degradation due to illegal excavation activities, inadequate sanitary
management system whereby wastes (solid and liquid) are discharged to Lake Tana and Abay
River water systems. The concerns regarding inclusiveness and strong city sytems are (i) lack of
primary education and health facilities in the vicinity; (ii) poor safety and security situations; (iii)
subsistence living conditions only dependent on small scale farming and animal rearing; and (iv)
poor quality of housing for residents.
OPPORTUNITIES – from the competitiveness point of view, opportunities are (i) the urban
expansion initiative (UXI) establishes future development framework, which may be relevant since
it matches the urban growth forecasts; (ii) multiple tourism and recreational options for new job
creation; and (iii) local planning support for development innovation. In terms of green framework
and resilience, the NDP site will benefit from the recognition of Lake Tana as a UNESCO heritage
location and wetlands as a potential RAMSAR site, and the potential for agricultural diversification.
Lastly, inclusiveness is expressed through the avail of city administration’s strong interest to
develop and implement strict development control, extension of lakefront pathways and amenities,
marketing opportunities for new and increased agricultural products and extension of accessibility
from and connectivity to city centre.
THREATS – regarding competitiveness, there is lack of public investment in infrastructure – the
NDP site has to be connected to the main transportation corridor some 2.5 km away in the east;
limitation in institutional capacity – balancing development between the income and social groups
requires dedicated and high caliber human resource, comprehensive and holistic governance and
strong political will. Concerning green framework and resilience, the NDP is threatened by the
expansion of the existing quarrying activities, adoption of unsustainable environmental
management practices, and danger of water pollution if no safe sanitation method put in place
immediately. In addition, failure to fully explore range of conservation/recreational opportunities
and greater inclination of encroachment on waterfront might threaten the development of the area.
3.1.2 Identification of Key Planning Issues
Set of key issues were formulated from the combined SWOT analysis; and these are summarized
as: (i) Integration with and connectivity to city centre and ensuring efficient linkages with key
localities;(ii) Conservation and enhanced use of Lake Tana and Abay (Blue Nile) River to enhance
urban character; (iii) Retaining and utilizing the defining contours and land forms of the NDP site to
provide essential character for development; (iv) Building residential housing to relate closely to
site character for effective local environment; (v) Establishing local networks of key communal
services considering adequate level of self-sufficiency; (vi) Building vibrant relationship between
family and community; and (vii) Building over time the planning implementation capacity of the
BDCA putting in place strong planning systems and appropriate institutions for effective
implementation of NDP projects in Bahir Dar.
3.2 Development Goals and Objectives
3.2.1 Vision
As outlined in the Integrated Development Plan (IDP) of Bahir Dar, the vision of Bahir Dar states
that the city shall be “a more comfortable habitat for living and working through its investment and
tourism development and shall become a model and attractive city in Africa”. Accordingly, the
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Neighborhood will be an active and vibrant settlement taking an active role in making a great place
in which to live, work and visit. Housing development, environmental and disaster management,
infrastructure and service development (road, water and sewerage system), social and economic
development, financial development and good governance are key performance areas that help
achieve this vision.
3.2.2 Goal and Objectives
The main goal of this plan is to provide a detail development plan and a framework for future
development within Abay Mado neighborhood.
A number of key objectives are considered to set the direction for the development process, to
guide the mechanisms of an integrated planning approach and lay the groundwork for a range of
more detailed local policies and actions. In summary they would: (i) provide for the development of
viable economic units (new areas for job concentration) linked to efficient inter-urban transportation;
(ii) enhance the location, scale and character of urban expansion; (iii) retain desired agricultural
land and control the encroachment into rural areas of residential development; (iv) retain a typology
of settlements according to various community identities with diverse housing types to match
community needs and capabilities; (v) establish open space corridors between urban areas, and
retain recreational, tourism and historic resources; and (vi) retain corresponding public amenities
in line with relevant standards.
3.3 Development Programs and Concept
3.3.1 The Proposed Development Framework
3.3.1.1 Considerations within the Planning Area

As one of the north east expansion areas of Bahir Dar, Abay Mado NDP site is bounded by a
collection of key natural elements and substantial new and proposed housing developments,
impacting the planning of the NDP site; some are in early stages of conception, but lacking
integration and tangible design principles. In response to these, a broader scale for reference is
established in a series of Generic Plan Objectives that set an initial guideline to provide a framework
for neighborhood development planning, which help identify two components, namely infrastructure
and activity areas.
On one hand, the infrastructure component considers (i) planned arterial roads bounding NDP site
all directions; (ii) existing collector street between the Diaspora Settlement and the NDP site; (iii)
cobblestone paved collector street connecting the site to the main Bahir Dar – Gondar highway;
(iv) Lake Tana as a means of providing alternative transportation between the city center and the
site; and (v) all utility networks accessible from the areas surrounding the site. On the other hand,
the activity areas component refers mainly to the (i) housing construction sites of the Diaspora
Settlement and Abay Ras Real Estate Development; (ii) neighboring farmers’ villages; (iii) urban
agriculture located on river banks; and (iv) university campus located along the Bahir Dar – Gondar
highway.
The transportation system encompasses all transportation modes. Urban transport is related to
social, economic and environmental issues, and affects the future land use patterns of the area
including density, morphology and important urban fabrics. The cobble paved collector street
linking the Diaspora settlement south to the highway will also provide access for the NDP to the
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city center and adjacent areas. The motorized rickshaw (locally called Bajaj) is currently the most
affordable and convenient mode of transport linking residents to the center of Bahir Dar.
The construction of new arteries bounding the NDP area give service and identity to the area will
be a positive contribution to the socio-economic development of residents. Increased traffic activity
will, however, also come with environmental consequences through pollution, traffic congestion,
and promulgation of encroachment and these issues must be addressed.
Footpaths currently link the farmers’ villages to the main transportation corridors connecting them
with markets, services and amenities, and are used on foot and by bicycles. Preserving these may
assist the NDP plan consolidate established patterns and integrate stakeholders’ interests.
The Abay River and Lake Tana are potential natural resources closely considered in the planning
process. Together with the monasteries and other locations they help define the NDP project,
tourism and recreational objectives to promote the future development of the area. Residents can
also connect by boat to the city center.
While future employment opportunities are considerable and can attract investment and would
have significant impact on the sustainable development of NDP site, recent new developments
seem to be having potentially negative impacts on adjacent lands. The new Abay Real Estate
development housing project neighboring the NDP site in the northwest and the Diaspora
settlement, for example, are currently providing housing for the high income group based on design
and settlement patterns that appear ill-suited to the particular nature of the site. Housing typologies,
spatial patterns and neighborhood density suggest inappropriate land use and provision of
inadequate project amenities. The NDP has to address this emerging formula and to harmonize
future development more closely with cultural and environmental qualities within its own boundaries
and to also influence future development beyond the NDP area.
The levels and quality of services within the adjacent farmers’ settlements are substandard, and
while proposing a new urban fabric in this project, due consideration will be given to the needs of
these existing residents. People from these villages will also be participating during construction,
providing a labor force (economic), their social groupings (cultural) and sharing institutions and
amenities.
Connecting the NDP site to the Bahir Dar University campus (School of Agriculture and
Environment Studies) will be important in economic, social and environmental aspects. Some 5000
university students are located just 3 km from the NDP and are likely to be attracted to the amenities
of Lake Tana and the services offered within the new settlement. Conversely, residents of the NDP
area may also access job opportunities at the university campus.
The City Administration of Bahir Dar has planned a revitalization project for an area 2 km south of
the NDP site along the main Bahir Dar–Gondar highway and serving several neighborhoods
inhabited by urban poor. The implementation of this project will bring investment to the sub-region
that can provide additional influences to the NDP project and also put the urban renewal program
of BDCA into a new perspective.
The floodplain covers a large amount of land that is considered prime. Controlling and managing
the current practice of urban agriculture along the river floodplain will define the future development
of the area. Development has to be monitored closely to ensure harmony between sensitive bio-
diversity, the local economy and socio-cultural trends.
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3.3.1.2 Impacts within the NDP Area

The major connection of the waterfront with the university campus, as discussed above, has a
major impact on the organization of the urban fabric, services and amenities within the NDP project
area.
Within the NDP a number of lesser impacts are also considered. Indigenous trees, for example,
have been identified and healthy examples are retained in the plan as part of public space.
Religious amenities (south and northeast) beyond the boundaries of the NDP site will provide
services for residents of the site. Close consideration has been given to the effects of NDP
development on the surrounding settlements and placement of markets and limited small
manufacturing activities are made for effective service provision and traffic management.
With additional traffic volume and the consequent threat of pollution discussed above the NDP plan
proposes sustainable planning and management schemes in support of the environment, local
economy and livelihood.
3.3.1.3 Amenities standards per fabric
The ministerial current standards will lead to a range of requirements in terms of amenities and
urban services within the perimeter of the NDP.
3.3.1.4 Public space and design vocabulary
The selected NDP area of some 130 ha occupies what is a designated an expansion area for Bahir
Dar located at the north-eastern edge of the city. It is bounded by both a sensitive bio-diversity
bordering Lake Tana and a collection of new housing developments.
The Abay River starts its famous 1,450 km journey at the floodplain immediately west of NDP site.
The river flows slowly and has a very wide flood plain on a flat topography not exceeding 2% of
slope. These characteristics of the river have encouraged farmers to practice seasonal vegetable
farming on a significant surface of flood plain during the dry season when the river shrinks in size.
During this season, however, the flood plain has also been used as dumping site for solid waste
and may hold chemical sludge to the obvious detriment of the sensitive bio-diversity of the land.
The river and lake also provide for a safe mode of transport and is also potentially very attractive
for water sports. These issues need further consideration in the NDP planning and management
processes.
Consequently the needs of a comprehensive open space concept the following key considerations
have been taken into account:
 Requirements of Lake Tana and the Abay River;
 Implications of the flood plain;
 Adjacent open spaces;
 Recreational needs of a new [residential and commercial] population;
 Tourism potentials and arising needs for visitors;
 Inter-connection between villages in terms of the development of road networks, services and
other amenities;
 A green corridor linking University Campus to waterfront passing through the NDP site;
 Green buffering along water bodies and interface between NDP site and adjacent development;
 Relative allocation of passive and active open space activity;
 Inventory and conservation of indigenous trees and local vegetation.
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The above factors have been considered in plan development with priority given to the green
corridor and buffering for Abay River for principal organization of open space.
3.3.2 Concept Plan
Issues can be established for assessing the land management and development strategies we
adopt. The following criteria further define the outcomes for development identified in Appendix 1
and need to lead directly to the guidelines for NDP strategy.
3.3.2.1 Community Design Principles

Level of participation: As an integral part of the NDP preparation, initial stakeholders’ event was
conducted. A number of issues were raised during the consultation, which need to be addressed
in this plan, including (i) avoiding income segregation and enhancing social mix, (ii) considering the
project are as an economic corridor, which integrates socio-economic attributes and analysis of
pull factors for systematic planned investments and job creation; (iii) maximizing tourism and
recreational potentials of the location considering easy access to monasteries, mouth of the Abay
River, potential for water sports, wetlands and papyrus plantations and other resources including
endemic trees, fishes, birds and hippopotamus populations; (iv) consideration to proactive NDP
implementation strategies developed according to the current capacity of the local government; (v)
improving connectivity of NDP site through transportation networks and other infrastructure
development; and (vi) adopting efficient environmental management in protecting waterfront from
pollution (solid and liquid wastes), and balancing conflicting interests between rural and urban
functions.
Local patterns: No established patterns of development are present on the NDP site. A zone is
currently in cultivation by local farmers adjacent to the flood plain bordering the Abay River. It is
proposed that this zone be retained in agriculture as an important aspect of local development strategy
and the flood plain maintained as a critical environmental land use.
Other principles considered include (i) Infrastructure Provision – provide a modern infrastructure base
to support economic development and to attract businesses to locate in the NDP; (ii) Managing the
Greater Urban Area – shape the type of development through management of the wider urban area to
provide more innovative economic and environmental considerations; (iii) Attracting Employment – use
urban planning and management strategies to contribute as a priority to economic growth and
employment; (iv) Protecting Air and Water Quality – apply the principles of environmentally sustainable
development in a single framework; (v) Improving Open Space - ensure provision of recreational
facilities and the water storage and food production capability; (vi) Housing Opportunities – promote
improved housing choice by increased diversity, quantity and quality of housing; (vii) Integrating Land
Use and Transport - make a basic commitment to better integrate land use and transport planning; and
(viii) Neighborhood Amenity - formulate innovative design guidelines and development controls to
improve urban design in residential environments and promote livable neighborhoods.
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Map 3-1 – Planning Area Model: Guideline G1 – Improving Connectivity
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Map 3-2 – Planning Area Model: Guidelines G4 – Urban Environment Management – and G5 – Resource Conservation, Pollution Reduction
and Biodiversity
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Map 3-3 – Planning Area Model: Accessibility to Public Transport and Amenities Linkage between Development, Land Use and Urban Design
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3.3.2.2 Scenario
3.3.2.2.1 Synthesis
Bearing in mind the neighborhood development concepts of the scenarios (Appendix 3) based on
their land use arrangement and road network layout, it is evident that a combination will generate
advantages for neighborhood development. In this way, the combined alternative helps maintain
the existing characteristics of the area, allows private investment, advocates cost efficiency of
infrastructure provision, and fosters integrated future development. The main underlying objectives
of the concept reflected in this proposal consider a number of assumptions, which include increased
demand for urban land, intensified urban development qualified by the development of mixed land
uses, increased density and multistory buildings, avoiding heavy traffic movement and encouraging
green infrastructure.
Based on the expected population, housing and service demands, traffic volumes and environment
standards of the NDP site, different land uses are calculated. Appropriate areas required for
residence, commerce, public amenities, recreation, administration, circulation and green
frameworks are proposed. The area is intended to develop in full integration with Bahir Dar’s
general development pattern. Therefore, this proposal, when fully developed, will create self-
contained urban space with well-integrated spatial connections, mobility, and employment
opportunities.
Generally, the proposal is characterized by the main center arranged on axis with a centrally
organized 3km green corridor10 designed to connect the waterfront with Zenzelema Town. This is
intended to increase the value of land, improve the quality of the locality, facilitate the development
of land use mix and compatibility, enhance accessibility, and create increased job opportunities.
Concerning recreational facilities, this proposal allocates a 300 m wide buffer along the Abay River.
This reserved area amounting close to 21 ha can be used for urban agriculture including vegetables
and fruit production. The whole NDP plan also includes sports fields, playing grounds, sitting
places, bike ways, walking paths, youth centers, cinemas, bar and restaurants. Land is reserved
for new kindergartens, elementary and secondary schools and a health center; they are located at
appropriate places within the study area.
An attempt has been made to determine appropriate locations for a Kebele administration office,
community police stations, and community based organizations in the study area.
The road proposal of the area addresses hierarchy and organizational issues based on organic
and grid patterns that emerge from the topography (flat slope gradient). The existing cobblestone
paved collector street connecting the NDP site in the south with the Bahir Dar–Gondar highway,
footpaths crossing the site interconnecting villages, and the UXI proposed arterial streets are taken
as major elements in laying down the proposed structure of the area. The proposed road network
is based on the analysis of economy and physical feasibility. The various types of road proposed
include 30m wide arterial roads bounding the NDP site in the east and west, 22m wide collector
streets, 9/13m wide local streets and footpaths of various width. Promotion of pedestrian activities
(shopping and leisure) and parking (on and off road) are envisaged.
The designs of all types of road accommodate utilities including drainage, lighting, sewerage,
carriage ways, pedestrian, and other standard traffic management elements. Generally the traffic
10 These spaces might be allocated to farmers, growing fruit trees, taking on the responsibility of a permanent
maintenance of the area.
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management is attached to the east-west axis. Concerning parking facilities, special consideration
has been given to the provision of common parking spaces, on street parking, pedestrian walk
ways and arcades that helps retain people from traffic accidents and uncomfortable street
environments.
Taking into account the future traffic volume and pattern of movement, the proposal suggests
identifying major transport nodes and off-street taxi stands and stations. Bajajs are considered as
the main mode of transport.
The study area, as a major center for recreation and tourism, is provided with a green network that
will increase its quality and usability. The green system will include roadside vegetation, alleys and
public parks and will be systematically extended so as to form a connection with the green buffer
and Zenzelema Town and University Campus some 3km east. In addition, limited manufacturing
activities based on small-scale enterprises are included in the proposal to create new job
opportunities.
3.3.2.2.2 Potential and Adjustments
The greater proportion of the land is allocated for residential and recreational purposes. This is due
to the objectives of the study and the existing nature of the area and will accommodate about 3,000
residential plots and 500 business plots. Provision of small open spaces between houses and
business buildings provides the community with social and environmental benefits. Families can
use these spaces to establish clusters of businesses and economic activities, children can play
safely under close supervision, and neighborhoods will be kept cool with breezes from the lake.
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Map 3-4 – Final Proposal: Projection of the Road Network – Google Map 2013
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Map 3-5 – Final Proposal
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4 The Neighborhood Development Plan
4.1 General Background

In planning neighborhood development, it is important reviewing strategies of relevant national and
regional policies, regulations and strategic documents. The new urban land development and
management policy envisions establishing a land development and management system that serve
as a tool for successful political and economic transformation process of urban areas and tries to
achieve sustainable urban land preparation, development and supply, land tenure security, societal
development, and land development control. It also tries to ensure that land use and supply
systems are equally accessible by the low-income groups.
In line with this framework, it is important for planning to consider strategies of Integrated Housing
Development Program (IHDP), which focus on developing safe and livable areas and ensure that
low-income groups are beneficiaries. Establishment of self-help condominium cooperatives,
provision of land through lease agreement and facilitation of other low cost options are some of the
strategies cited in IHDP.
Regarding financing of land development, the above-mentioned policy documents settled a couple
of directives and strategies. Accordingly it is outlined that budget needs to be allocated for
development of urban expansion and slum areas. Secondly, establishing revolving fund for land
development is settled as one of the strategies for effective implementation. Organizing resources
from residents and other development partners, and facilitating access to bank loans are also
settled as strategies for financing such development programs. Furthermore, recovering land
development cost is emphasized in the documents.
Additionally, ensuring integrated urban infrastructure delivery in the land development process,
establishing economical and efficient land use system and ensuring the accordance of land
development with environmental protection principles (increased green spaces, beautification, and
green economy) are highlighted as major policy directions. Relocation due to land development is
addressed in the regulations; people and families are entitled to discussions with the public
authorities and compensations are settled as per their agreement and the compensation settlement
directives. According to the new legislation, residential housing cooperatives comprised of new
applicants can get lease free 150 m2 plot of land while relocated families can be organized in a
number of associations forming housing cooperatives and are entitled to plots of land with sizes
ranging between 105 and 250 m2 calculated based on their current occupation. Private developers
can also lease plots of 500 m2 on auction basis. All plots are transferred on lease system.
The urban planning and development strategy goes through a transitional period in Ethiopia, putting
the nation into "race against time" and raising crucial questions in terms of legal framework and
implementation processes. Putting this into consideration, the Consultant develops a methodology,
which was enriched by the Technical Advisory Committee (TAC). This will be a prerequisite to
implement the National Urban Development Spatial Plan, also developed by the same Consultant.
There will be enormous annual requirements until 2025 for the following urban development
elements:
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Table 4-1 – Polycentric Scenario: Urbanization Requirements at Country and Bahir Dar Levels
TPC UPC BAHIR DAR UPC BAHIR DAR UPC BAHIR DAR
*1000ha ha Infrastructure (EA) *1000km km
Demographic Data *1000 *1000 *1000 Land Requirements Length of Roads and
100 100 400 400
Networks
2013 2013/2025
Population 85 700 15 973 223 Area concerned 145 2 827 2013/2025
Urbanization rate % 18,6% Extension Area 125 2 549 Length required 50 1 019
2025 Average per year 10 212 Average per year 4 85
Population 104 449 28 430 478 2025/2037 2025/2037
Urbanization rate % 27% Area concerned 242 5 740 Length required 89 2 185
Growth 2013/2025 18 749 12 457 255 Extension Area 222 5 461 Average per year 7 182
2037 Average per year 18 455 2013/2037
Population 127 300 50 602 1 024 2013/2037 Length required 139 3 204
Urbanization rate % 39,8% Area concerned 386 8 568 Average per year 6 134
Growth 2025/2037 22 851 22 172 546 Extension Area 346 8 010
Growth 2013/2037 41 600 34 629 801 Average per year 14 334
Number of NDP (EA) Infrastructure (EA) million ETB million ETB
Housing Units (HU) *1000 *1000 *1000 150 150
Average Area in Hectares Investment Costs 4,1 4,0
HU required in 2013
4,2 Theoretical existing HU 20 405 3 803 53 2013/2025 2013/2025
Investment
50% Backlog 10 202 1 902 26,5 Total on the period 830 17 514 474 10 194
required
NDP design per
Requirement 2013/2025 1 75 2 Average per year 42 873 850
year
W/o backlog 4 464 2 966 61 2025/2037 2025/2037
Investment
Backlog included 9 565 3 917 74 Total on the period 1 478 36 915 704 21 846
required
NDP design per
Average per year 797 326 6,2 1 134 3 Average per year 76 309 1 820
year
Requirement 2025/2037 2013/2037 2013/2037
Investment
W/o backlog 5 441 5 279 130 Total on the period 2 309 53 1 430 178 32 040
required
NDP design per
Backlog included 10 542 6 230 143 1 210 5 Average per year 59 591 1 335
year
Average per year 878 519 11,9
Total requirement 2013/2037
W/o backlog 9 905 8 245 191
Backlog included 20 107 10 147 217
Average per year 838 423 9,1
TPC Total Population at Country level
UPC Urban Population at Country level
EA Expansion Areas
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 More than 325 thousand housing units, considering an average household size of 4.2 people
and the gradual reduction of the slums backlog in line with the GTPI and GTPII;
 10,000 ha of land for expansion, considering an average population density of 100 inh/hectare;
 4,000 km roads and associated networks, considering an average of 400 m/ha;
 More than ETB 42.5 billion, assuming an investment of ETB 10 million per km; and
 75 designed and implemented NDPs (accounting one year engineering design).
To handle all these important challenges, the following decisions are very crucial at this point in
time. First, there is a greater need merging the planning efforts of the neighborhood development
plan with the structure or strategic plans on the basis of the status of the urban centers. Secondly,
the urban planning law should focus on implementing a clear land use strategy supported by strict
land use and development control regulations, and interpreted in the building and land development
permits. Thirdly, urban design planning should be considered as a simple land development tool,
a project managed like an administrative permit.
The following table shows that, based on polycentric scenario, the urban population of the country
will reach 39.8% in 2037; this means 50.6 million people living in urban areas. By the same token,
Bahir Dar will accommodate some 1.024 million inhabitants. In 2025, the urban population of the
country will be around 28.4 million, while Bahir Dar accounts for 478 thousand inhabitants.
Similarly, the urban development elements required annually by the City will be 6,200 housing
units, 212ha of expansion area, 85km of roads and associated networks implying ETB 850 million
of investment, and the design and implementation of two NDP.
4.2 Zoning11
The function of zoning consists in preparing the implementation strategy of the NDP and it tries to
imply two main objectives to be further developed:
 The balanced division in areas to an affordable implementation process: managed by the public
authorities, private land developers, and cooperatives, and
 The classification of these areas complying with a realistic phasing, taking into account capacity
building elements (manpower, financing).
The main goal aims to highlight the key function of each physical and homogenous sector of the
NDP, which focuses either on the housing, trade and business, or on housing, trade, business and
public amenities. In the case of Bahir Dar, the option of bringing out the zones dedicated to housing,
trade and business is essential, as the first step to prepare (i) a more detailed land use and (ii) the
associated land use regulation.
Putting at the background the dominance of residential, touristic and cultural nature of the final
proposal, this NDP focuses to the balanced development of public amenities and services
impacting the future environment. From this viewpoint the zoning map distinguishes three zones:
(i) the mixed use zone with various functions incorporating multi story buildings and town houses,
(ii) the public amenities and services essentially implemented along the central axis and (iii) the
pure residential areas consisting of town houses and individual houses12.
11 This chapter introduces a new paradigm in the urban planning and development strategy including the concept of
zoning, the detail land use plan and associated regulations
12 As conclusion, the numbering of the zones (in total 10 zones) foresees the priorities in terms of selection of the UDP
perimeter and of the phasing closely linked to the financial constraints of the physical implementation.
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Map 4-1 – Zoning Applied to the NDP Proposal
4.3 Land Use Plan
4.3.1 Functional Land Use Map
According to the newly developed urban plan preparation and implementation strategy,
neighborhood development plans are prepared based on the assessment of the current capacity
and existing situations to help cities implement their structure plans developed on city-wide
concepts. The implementation of NDPs shall take place within the ambit of the planning period of
the overall structure plan. NDPs are comprised of (i) land use types and building height, (ii) road
networks, infrastructure layout, and transportation system, (iii) housing typology and morphology,
settlement patterns and green and open spaces, and (iv) implementation strategies including urban
renewal, urban upgrading, land reallocation and land division, and other regulation matters.
The same urban planning legal document categorizes land use into three broad groups of land
allocation standards, namely roads and infrastructure, build up and green and public services in
the proportion of 30%, 45% and 25% respectively. Roads and infrastructure are defined as streets,
footpaths, bikeways, bus lanes, street side greens, utilities, medians, pedestrian crossings, bus
and taxi stops, on street markets, public sitting places, parking, street lights and flood drains. Built
up is about existing and new residences, workplaces, religious spaces, and manufacturing centers.
The green and public services is a category comprised of parks, green areas, natural reserves,
forest, wetlands, grassland and shrub covered areas, rocky areas, rivers, mining and quarry, and
sport fields.
Guiding principles formulated and applied in this NDP are multiple, of which (i) sustainable resource
utilization, (ii) appropriate housing and clean and green built environment, (iii) enhanced
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accessibility and connectivity, (iv) mixed social and land use development, (v) cost effective and
quality infrastructure, public amenities and open spaces enforcing the public realm, (vi) safety and
security, and (vii) socio-cultural development are important.
Framed with the above-mentioned principles, the plan tries to create a predominantly residential
and recreational neighborhood, by enhancing and creating connectivity and accessibility of water
bodies, wetlands and green frame. This NDP focuses on nodal and corridor development to
promote local economy. This implies to channel major investments to corridors and nodes, where
there are major infrastructure and higher accessibility. Therefore business and commercial districts
are proposed along major circulation corridors including collector and arterial streets, and green
frame bisecting the site. The green frame is a wide corridor, accommodating cluster of services
and public amenities, and funnels multi modal traffic to and from the School of Agriculture, Bahir
Dar University and Zenzelema Town, located some 3km east. Additional focus is given to
clustered micro and small scale enterprises (MSE) and local open market area, because it enables
to achieve development of specialized infrastructure and common facilities, enhance exchange of
technological and knowledge among businesses, ensure better traffic management, foster
marketing and improve pollution control.
Toward the western border, closer to Abay River, the plan preserves urban agriculture practices
and allocated considerable amount of land, which supplies the neighborhood with food; the wide
opening helps also the neighborhood get more breathe from the Lake and benefit from panoramic
views of the lakeshore. The housing stock is more likely multi-unit mixed use along green frame
and main transport corridors; toward the eastern and northern borders single-family homes are
more common. Houses are characterized by a mix of types and plot sizes. The housing types
range from inexpensive villas to lakefront mansions. Catering services (café, restaurant, bar),
tourist destinations, offices, market and shopping centers, limited and non-polluting manufacturing
center, employment centers incubating micro and small scale enterprises, public amenities (health,
education, cultural centers) and administrative facilities (Kebele, community policing) reside in the
Centrum. Pre education facilities (KGs, children playground and day care), recreational facilities
(public spaces, open and green areas, and play grounds) and community policing are scattered
evenly in the neighborhood. Two arterial streets bound the neighborhood in the eastern and
western sides.
Table 4-2 – Area Summary of Proposed Land Uses

No. Land Use Category Area (ha) Percentage (%)
1 Agriculture 48.6 37.4
2 General Residential 13.7 10.5
3 Mixed Use 13.4 10.3
4 Commercial 0.9 0.7
Green Areas and
5 19.4 15.0
Sports Fields
Services and
6 6.3 4.8
Administration
7 Manufacturing 0.3 0.2
8 Roads and Parking 24.4 18.8
9 Reserved Areas 3.0 2.3
Total 130.00 100.0
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Map 4-2 – Functional Proposal of Land Use Map
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4.4 Zonal Land Use Map

The legal zonal land use map introduces the land use regulation, which will be applied within the
perimeter of the NDP. It locates the sub-zones subjects to the urban planning rules as detailed in
this document, which has force of law for the building and the land development permit processes.
As presented in the appendix, the division of the NDP consists of eight urban zones, among which
seven are currently at stake.
It is worth noting that one sub-zone of the functional land use map should be named by one or
several titles in the zonal land use map (Map 4-3). For example:
 what is called "residential" covers three categories of town houses UTh1 – Uth2 – Uth3; and
 what is called "mixed use" might consist of multi story building category 1 – Umsb1 – and public
amenities – Upa.
The zoning land use map regulates what uses are allowed on particular sites including: building
height, density, land use, lot dimensions/setbacks, parking, and signage. The predominant zoning
designations in the study area are UMsb category 1 and UTh category 2. Allowable uses in these
sub-zones include single and multi-family dwellings, and all uses allowed in less intensive
residential zones.
Map 4-3 – Zonal Land Use Map
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4.5 Land Use Regulation13

The neighborhood development is controlled by setting up and applying a rational land use
regulation made up of a basic arrangement of 14 articles. Such a legal document, common in
various international urban planning systems, can be categorized under a very simple framework,
simple to apply by every technical staff involved in local urban planning and management. On one
hand, it does not raise any vagueness and on the other it remains flexible enough to accommodate
the very quickly changing urbanization trend in the coming twenty years.
The core groups of specifications are listed below:
 Group 1 – land use: This is essential for environmental concerns including pollution and
security; it considers the type of and the conditions under which an activity is allowed in a certain
area;
 Group 2 – suitability for construction: It anticipates issues linked to hygiene, health and
security. It is not acceptable to allow any construction, which does not provide basic services
including roads and associated infrastructure. The level of services must however consider a
reasonable upgrading process, which puts the financial capabilities in the formula. The gradual
improvement of slums is a core issue to be addressed through these specifications;
 Group 3 – set back: it is both a matter of considering the urban shape and morphology and
preserving the future, to address the issues under this group. Alignment along roads must
consider leaving enough room for possible future expansion. At the same time, climatic
conditions (duration of sunshine and shadows) need to be given due thought in fixing the uses
of land;
 Group 4 – architecture: This is a very sensitive concern all over the country, as it deals with
the protection of the soul of the cities, and the cultural and historical heritages. It concerns the
building shape (height, length, depth) and the material use;
 Group 5 – corollary specifications: this group deals with parking places and greening, which
need to be managed by standards. Currently, the level of motorization does not justify the
provision of one parking space per residential flat, office facilities (40m2) or shops (60m2). The
target must remain more modest without ignoring the future requirement in the medium and
long terms, coupled with specifications under group 3 and 6. Again, rules leading common
greening are missing in Ethiopia. Greening must actual be managed through precise set of
rules
 Group 6 – quantitative parameters: With a major effect on group 3, 4 and 5, these parameters
(FAR and BAR) impact directly the volume of the buildings and the open areas closely linked
to the greening process.
Moreover, the land use regulation enables local governments to apply the concept of green cities
and eco-neighborhoods. If relevant, it should come under the specifications displayed by the
groups 1, 2, 5 and 6.
The following table (Table 4-3) illustrates the potential, as minimum or maximum values, of Abay
Mado NDP, which results from the impact created by applying the main parameters of the land use
regulation. The project is implemented through four phases, each of which is comprised of specific
sub-zones. Phase 1 is planned to be implemented in year 1 and 2, and deals with sub-zone 1.
The implementation of Phase 2 is planned during year 3 and focuses on zones 2 and 3. Phase 3
13 It comes under the local governments, themselves under supervision of the MoUDHC and of the other concerned
ministries, to set up a rational land use regulation per sub-sector.
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addresses zones 4, 5 and 6 and will be implemented in year 4. And finally, Phase 4 deals with
zones 7 to 10, and will be implemented during the fifth year.
The table provides the following information.
 Gross and Net Areas: It starts with the gross area of each sub-zone measured from the
functional land use map, and categorized under each phase. Accordingly, the total gross area
reads as 43.51 ha. This covers areas of the multi story building category 1 (Msb1), multi story
building category 2 (Msb2), townhouse category 1 (Th1), townhouse category 2 (Th2) and
townhouse category 3 (Th3). The phases cover total gross area of 4.25 ha (9.8%), 9.05 ha
(20.8%), 15.36 ha (35.3%) and 14.85 ha (34.1%) respectively. The net area on the other hand
is calculated as 75% of the gross area, considering the 25% of the areas to be covered by
feeder roads.
 Total Built Area: The next variable is the built up area. This is calculated using floor area ratio
(FAR) assumed for each sub-zone. The FAR for Msb1, Msb2, Th1, Th2, and Th3 are respectively
2.0, 1.5, 1.5, 1.0 and 0.7. Accordingly, the total built up area for the project is calculated as
39.12 ha. from which 6.54 ha (16.7%) is occupied by Msb1, 6.50 (16.6%) ha by Msb2, 3.71 ha
(9.5%) by Th1, 20.51 ha (52.4%) by Th2, and 1.86 ha (4.8%) by Th3. In terms of phasing, 4.1
ha (10.6%) is implemented in the first phase, while 8.1 ha (20.6%) is in the second, 16.4 ha
(42.0%) in the third and 10.5 ha (26.8%) in the last phase.
 Areas for Shops and Offices: these areas are calculated considering the following
assumptions for both shops and offices: 20% of the total built area under Msb1 and 10% under
Msb2. Based on this, it is calculated that the project recommends an area equaling to 2.0 ha
for shops and 0.7 ha for offices. From all area covered by shops, 66.6% (1.3 ha) are in the
Msb1 and 33.3% (0.65 ha) in Msb2, while 71.4% (0.5 ha) of offices are included under Msb1 and
28.6% (0.2 ha) under Msb2.
 Areas for and Number of Flats: Considering 60% from the total built area of the Msb1, 80%
from Msb2 and 100% from the town houses, total area covered by flats is calculated as 36.5
ha, from which 3.5 ha (9.6%) are implemented in phase one, 7.6 ha (20.8%) in phase 2, 14.9
ha (40.8%) in phase 3, and 10.5 ha (28.8%) in phase 4. The total areas covered by flats, 13.2%
(4.8 ha) are accommodated under Msb1, 15.3% (5.6 ha) under Msb2, 10.1% (3.7 ha) under Th1,
56.2% (20.5 ha) under Th2, and 5.2% (1.9 ha) under Th3. Considering an average of 75m2 per
flat, the total number of flats is calculated as 3,042.
 Parking Spaces: a total park place of 1,162 is calculated assuming one parking space per 180
m2 of shop area, one parking space per 120 m2 of office space, and one parking space per 3
flats.
 Open Area: The minimum open area resulting from a built area ratio (BAR) is considered as
0.5 for Msb1, Msb2, Th2 and Th3, and 0.7 for Th1. Using these, the total open space is calculated
as 16.0 ha, from which 10.0% (1.6 ha) are under Msb1, 13.7% (2.2 ha) under Msb2, 3.8% (0.6
ha) under Th1, 64.4% (10.3 ha) under Th2, and 8.1% (1.3 ha) under Th3.
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Table 4-3 – Quantitative Data Resulting from the Main Parameters of the Urban Regulation
Gross Net Total Built Shops Offices Flats
Park Places Open Area
ZONES Area Area FAR Area 1 Parking per 1 Parking per Max. Area m2 Plot Area N° of Plots N° of flats Parking
% Max. Area m2 % Max. Area m2
ha 75% m2 180 120 75 3 Total BAR m2
TOTAL 43,51 32,63 391 238 19 583 109 7 118 59 364 538 1 659 3 042 1 014 1 162 159 458
Msb1 4,36 3,27 65 400 13 080 73 4 800 40 47 520 0 634 211 311 16 350
Msb2 5,78 4,34 65 025 6 503 36 2 318 19 56 205 0 749 250 299 21 675
Th1 2,47 1,85 37 050 0 0 0 0 37 050 185 185 62 62 5 558
Th2 27,35 20,51 205 125 0 0 0 0 205 125 1 368 1 368 456 456 102 563
Th3 3,55 2,66 18 638 0 0 0 0 18 638 107 107 36 36 13 313
Phase 1 4,25 3,19 41 325 3 420 19 3 420 29 34 485 126 334 111 149 15 938
Msb1 0,78 0,59 11 700 2 340 13 2 340 20 7 020 0 94 31 57 2 925
Msb2 0,96 0,72 10 800 1 080 6 1 080 9 8 640 0 115 38 50 3 600
Th1 0,00 0,00 0 0 0 0 0 0 0 0 0 0 0
Th2 2,51 1,88 18 825 0 0 0 0 18 825 126 126 42 42 9 413
Th3 0,00 0,00 0 0 0 0 0 0 0 0 0 0 0
Z1 4,25 3,19 41 325 3 420 19 3 420 29 34 485 126 334 111 149 15 938
Msb1 0,78 0,59 2,0 11 700 20% 2 340 13 20% 2 340 20 7 020 94 31 57 0,5 2 925
Msb2 0,96 0,72 1,5 10 800 10% 1 080 6 10% 1 080 9 8 640 115 38 50 0,5 3 600
Th1 0,00 0,00 1,5 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 2,51 1,88 1,0 18 825 0 0 0 0 18 825 150 126 126 42 42 0,5 9 413
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
Phase 2 9,05 6,79 80 738 4 639 26 0 0 76 099 333 682 227 253 33 938
Msb1 1,04 0,78 15 600 3 120 17 0 0 12 480 0 166 55 73 3 900
Msb2 1,35 1,01 15 188 1 519 8 0 0 13 669 0 182 61 69 5 063
Th1 0,00 0,00 0 0 0 0 0 0 0 0 0 0 0
Th2 6,66 5,00 49 950 0 0 0 0 49 950 333 333 111 111 24 975
Th3 0,00 0,00 0 0 0 0 0 0 0 0 0 0 0
Z2 5,57 4,18 50 588 3 161 18 0 0 47 426 196 437 146 163 20 888
Msb1 0,69 0,52 2,0 10 350 20% 2 070 12 0% 0 0 8 280 110 37 48 0,5 2 588
Msb2 0,97 0,73 1,5 10 913 10% 1 091 6 0% 0 0 9 821 131 44 50 0,5 3 638
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 3,91 2,93 1,0 29 325 0 0 0 0 29 325 150 196 196 65 65 0,5 14 663
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
Z3 3,48 2,61 30 150 1 478 8 0 0 28 673 138 245 82 90 13 050
Msb1 0,35 0,26 2,0 5 250 20% 1 050 6 0% 0 0 4 200 56 19 25 0,5 1 313
Msb2 0,38 0,29 1,5 4 275 10% 428 2 0% 0 0 3 848 51 17 19 0,5 1 425
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 2,75 2,06 1,0 20 625 0 0 0 0 20 625 150 138 138 46 46 0,5 10 313
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
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% Max. Aream2 % Max. Aream2
ha 75% m2 180 120 75 3 Total BAR m2
Phase 3 15,36 11,52 164 235 11 524 64 3 698 31 149 014 515 1 341 447 532 53 895
Msb1 2,54 1,91 38 100 7 620 42 2 460 21 28 020 0 374 125 181 9 525
Msb2 3,47 2,60 39 038 3 904 22 1 238 10 33 896 0 452 151 179 13 013
Th1 2,47 1,85 37 050 0 0 0 0 37 050 185 185 62 62 5 558
Th2 6,19 4,64 46 425 0 0 0 0 46 425 310 310 103 103 23 213
Th3 0,69 0,52 3 623 0 0 0 0 3 623 21 21 7 7 2 588
Z4 5,32 3,99 50 175 3 698 3 698 42 780 170 400 133 175 19 950
Msb1 0,82 0,62 2,0 12 300 20% 2 460 14 20% 2 460 21 7 380 98 33 60 0,5 3 075
Msb2 1,10 0,83 1,5 12 375 10% 1 238 7 10% 1 238 10 9 900 132 44 58 0,5 4 125
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 3,40 2,55 1,0 25 500 0 0 0 0 25 500 150 170 170 57 57 0,5 12 750
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
Z5 7,85 5,89 93 135 6 221 0 86 914 279 750 250 284 25 733
Msb1 1,38 1,04 2,0 20 700 20% 4 140 23 0% 0 0 16 560 221 74 97 0,5 5 175
Msb2 1,85 1,39 1,5 20 813 10% 2 081 12 0% 0 0 18 731 250 83 95 0,5 6 938
Th1 2,47 1,85 2,0 37 050 0 0 0 0 37 050 100 185 185 62 62 0,7 5 558
Th2 1,46 1,10 1,0 10 950 0 0 0 0 10 950 150 73 73 24 24 0,5 5 475
Th3 0,69 0,52 0,7 3 623 0 0 0 0 3 623 250 21 21 7 7 0,5 2 588
Z6 2,19 1,64 20 925 1 605 0 19 320 67 191 64 73 8 213
Msb1 0,34 0,26 2,0 5 100 20% 1 020 6 0% 0 0 4 080 54 18 24 0,5 1 275
Msb2 0,52 0,39 1,5 5 850 10% 585 3 0% 0 0 5 265 70 23 27 0,5 1 950
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 1,33 1,00 1,0 9 975 0 0 0 0 9 975 150 67 67 22 22 0,5 4 988
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
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% Max. Area m2 % Max. Aream2
ha 75% m2 180 120 75 3 Total BAR m2
Phase 4 14,85 11,14 104 940 0 0 104 940 685 685 228 228 55 688
Msb1 0,00 0,00 0 0 0 0 0 0 0 0 0 0 0
Msb2 0,00 0,00 0 0 0 0 0 0 0 0 0 0 0
Th1 0,00 0,00 0 0 0 0 0 0 0 0 0 0 0
Th2 11,99 8,99 89 925 0 0 0 0 89 925 600 600 200 200 44 963
Th3 2,86 2,15 15 015 0 0 0 0 15 015 86 86 29 29 10 725
Z7 4,93 3,70 36 975 0 0 36 975 247 247 82 82 18 488
Msb1 0,00 0,00 2,0 0 20% 0 0 0% 0 0 0 0 0 0 0,5 0
Msb2 0,00 0,00 1,5 0 10% 0 0 0% 0 0 0 0 0 0 0,5 0
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 4,93 3,70 1,0 36 975 0 0 0 0 36 975 150 247 247 82 82 0,5 18 488
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
Z8 2,86 2,15 15 015 0 0 15 015 86 86 29 29 10 725
Msb1 0,00 0,00 2,0 0 20% 0 0 0% 0 0 0 0 0 0 0,5 0
Msb2 0,00 0,00 1,5 0 10% 0 0 0% 0 0 0 0 0 0 0,5 0
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 0,00 0,00 1,0 0 0 0 0 0 0 150 0 0 0 0 0,5 0
Th3 2,86 2,15 0,7 15 015 0 0 0 0 15 015 250 86 86 29 29 0,5 10 725
Z9 3,70 2,78 27 750 0 0 27 750 185 185 62 62 13 875
Msb1 0,00 0,00 2,0 0 20% 0 0 0% 0 0 0 0 0 0 0,5 0
Msb2 0,00 0,00 1,5 0 10% 0 0 0% 0 0 0 0 0 0 0,5 0
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 3,70 2,78 1,0 27 750 0 0 0 0 27 750 150 185 185 62 62 0,5 13 875
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
Z10 3,36 2,52 25 200 0 0 25 200 168 168 56 56 12 600
Msb1 0,00 0,00 2,0 0 20% 0 0 0% 0 0 0 0 0 0 0,5 0
Msb2 0,00 0,00 1,5 0 10% 0 0 0% 0 0 0 0 0 0 0,5 0
Th1 0,00 0,00 2,0 0 0 0 0 0 0 100 0 0 0 0 0,7 0
Th2 3,36 2,52 1,0 25 200 0 0 0 0 25 200 150 168 168 56 56 0,5 12 600
Th3 0,00 0,00 0,7 0 0 0 0 0 0 250 0 0 0 0 0,5 0
Phase 1 years 1 and 2
Phase 2 years 3
Phase 3 year 4
Phase 4 year 5
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Part 2 The Urban

Design Plan
5 Introduction
5.1 Background and Justification of the Location

The Abay Mado NDP of Bahir Dar City deserves a model urban design proposal for its long-term,
forward looking approach to land use planning and neighborhood development. It will help to
transform the expansion area in the right direction because of its development potentials due to its
strategic location, adjacent to Lake Tana. It will be used as a policy document after approval by the
council in relation to a specific development approach and its purpose. It will helps in avoiding an
unprecedented infrastructure crunch. It identifies an overall design vision for the proposed
development that is unique to the site and complements, enhances and fits within the context of
the site and its surroundings.
The vision and how it will be created will be fully described in this urban design section. It has been
drawn from the existing, ongoing and planned development character indicating the methods in
detail how to achieve the vision by the proposed development in accordance with principles,
objectives and standards set out in this report. It will also provide clear direction that can be
implemented and monitored in the development stages.
The main aim of the project is to create a high quality physical and economic environment within
Bahir Dar City:
 To create places for people which have a distinct identity and are safe and attractive for living
and working;
 To respect and enhance natural features and local character and connect well with the wider
locality giving priority to the needs of pedestrians and cyclists rather than vehicles in residential
area;
 Creating a safe, distinctive and exciting streetscape that reflects, supports and enhances future
potential development connecting or creating economic corridor between the University and
Lake Tana;
 Encourage street activity by making it easy, convenient and pleasurable to move around the
settlement as a pedestrian focusing on a range of shared public spaces; and
 To protect and enhance the environment so as to benefit the landscape, to improve recreation
and access, and to provide an attractive setting for investment activity.
5.2 Site Location

The UD site is intended to be located at the center of the Land Use Planning (LUP) site. It is planned
to have an area of around 20 hectares. It is the core of the LUD where social amenities are expected
to be located. The site is totally vacant and is a crucial part of the LUD because of the nature of the
social amenities that need to be considered to bring the community together. According to the
LUP, the site might have good accessibility since there are major roads serving this part of the site
from almost every direction. Lake Tana, most important relationship to the site, is a key asset that
needs sensitive consideration. The tentative boundary of the UDP is seen left.
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It deals with the area where social services are focused. In addition, part of a commercial area
allocated for 750 square meters plots and residential area allocated for 150 square meters plots
will also be incorporated within the UDP boundary.
The selected location of the UDP site has created an opportunity to show part of the green belt
concept created in the LUP linking the University to Lake Tana where common social services are
part of it.
Map 5-1 – Part of Abay Mado NDP Considered for the Urban Design
5.3 The Urban Design Site Selection Criteria

The urban design (UD) site is selected based on the following list of criteria:
 Interest of the city administration to develop the site due to the economic point of view and the
potential in implementing a model infrastructure network;
 The strength from the environmental sustainability and management perspective due to its
proximity to the Lake shore;
 Core of the LUP where commercial services and social amenities are expected to be located
to bring the community together;
 To show a model UD incorporating both land pooling and residential development strategy. It
is also aimed to show the relation to places that are used by people who live in both areas (the
Neighborhood and the city due to the location of the over 100m wide green belt),
 The site’s development potential due its strategic location, link between Lake Tana and the
University; and
 Expected needs and interests of the local communities
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6 The Existing Morphology
6.1 Topography
The site is of a gentle slope from the East to the West with a 2 – 4% gradient. It goes down to the
water bodies, allowing an easy collection of surface water, accordingly, a simple drainage and
sanitary system.
Construction wise, the site is not a problem and from the perspective of development, the whole
site has no considerable challenge. Integration to the city is provided by a major road serving the
site from the South.
Map 6-1 – UDP Location with a East – West Topographic Section
6.2 Building Characteristics

Much of Abay Mado NDP area is occupied by dilapidated traditional single story farmers’ housing
without adequate sanitary services and connections to basic utilities including water and electricity.
In addition, the real estate developments bounding the site in the north and south have poorly
designed and distributed multi-story houses without adequate considerations to the quality of the
landscape. Again, a resettled neighborhood in the south-east corner of the NDP site contains
several parcels that are ready for redevelopment.
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6.3 Street Characteristics

The transportation system encompasses all transportation modes. Urban transport is related to
social, economic and environmental issues, and affects the future land use patterns of the area
including density, morphology and important urban fabrics. The cobble paved collector street
linking the Diaspora settlement south to the highway will also provide access for the NDP to the
city center and adjacent areas. The motorized rickshaw (locally called Bajaj) is currently the most
affordable and convenient mode of transport linking residents to the center of Bahir Dar.
The construction of new arteries bounding the NDP area give service and identity to the area will
be a positive contribution to the socio-economic development of residents. Increased traffic activity
will, however, also come with environmental consequences through pollution, traffic congestion,
and promulgation of encroachment and these issues must be addressed.
Footpaths currently link the farmers’ villages to the main transportation corridors connecting them
with markets, services and amenities, and are used on foot and by bicycles. Preserving these may
assist the NDP plan consolidate established patterns and integrate stakeholders’ interests.
The Abay River and Lake Tana are potential natural resources closely considered in the planning
process. Together with the monasteries and other locations, they help define the NDP project,
tourism and recreational objectives to promote the future development of the area. Residents can
also connect by boat to the city center.
6.4 Street Furniture’s, Green and Open Spaces

The Abay River starts its famous 1,450 km journey at the floodplain immediately west of NDP site.
The river flows slowly and has a very wide flood plain on a flat topography [not exceeding 2% of
slope]. These characteristics of the river have encouraged farmers to practice seasonal vegetable
farming on a significant surface of flood plain during the dry season when the river shrinks in size.
During this season, however, the flood plain has also been used as dumping site for solid waste
and may hold chemical sludge to the obvious detriment of the sensitive bio-diversity of the land.
The river and lake also provide for a safe mode of transport and is also potentially very attractive
for water sports. These issues need further consideration in the NDP planning and management
processes.
There is no street furniture in or around the NDP site.
6.5 Design Principles
6.5.1 Defining the UD Program
The program of the site is developed based on the projected population for the site according to
the housing program of the government. This is approximately 3,000 households and plots for land
pooling. The requirement of the city administration for the residential areas within the UDP site is
for each household to have a plot size of 150 m2 and 500 m2 for commercial/land pooling services.
Based on this and on local standards for service provision, the program was established to provide
the most important social services within the planning area.
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The most important social services are provided mainly within the UDP site with well-balanced
hierarchy based on the local standards. Besides, some important services are also considered in
the Planning area to create efficient, balanced and equitable distribution of services aiming to
create healthy and livable neighborhoods with good urban quality.
The functions to be considered are neighborhood playground(s)/play lot(s), community center(s)
with a library, cultural center, health center, primary school(s), secondary school(s) and open green
areas. A reserved space is also provided with the anticipation that lake side development may
require some additional function(s) in the future.
In terms of specific area sizes, the standards from Urban Planning and Implementation Manual
have been adopted. For unavailable standards, the Addis Ababa Housing Development Project
Office Standard has been referred. The following table (Table 6-1) shows the program size
requirements for local standards produced by the two respective offices.
Table 6-1 – Forecasted UDP Content
Required Functions within Standard in Percent Program with Expected Sizes from Urban
the UDP site and hectares Planning & Implementation Manual
Residence
 150 square meter plots  55 – 70%  Standard not needed here
 500square meter plots for  5 – 10%
land pooling exercise
Services
 (Primary & Secondary 5 -10 % (6.5 -13 ha (5-10% for the whole
schools, youth center, without the reserved NDP site which is 6.5 -13 ha)
clinic, cultural center, open area and playground, - Secondary schools - 3 ha
market, administration, this is the program for - Primary schools - 1.8 ha
etc…) the whole NDP, - Health center - 0.45-0.6 ha
standard used for the - Community center – none
peripheral sites) - Green areas or Parks 1.12 - 4.49ha
- Reserved area – none
- Children’s football field – 0.3-0.42 ha
- Play lot – 0.1 – 0.2
6.5.2 The Urban Design Concept
According to the guidelines given for the NDP strategy, there are five aspects that were taken into
account. These are Competitiveness, Green, Inclusiveness, Resilience and Strong Urban Systems.
Besides, the concept of the UD is consequently based on a number of qualities inherent in the site.
Thus, the following initiatives are considered to establish the conceptual framework for the site:
 Competitive Cities – Improving Connectivity: all issues related to infrastructure, as
mentioned before are macro issues and policies that are relevant when thinking about new
development areas like this one. Provision of infrastructure will be an incentive for investors to
invest. The other issue under this aspect of the strategy is in managing the greater area, where
public transport will be facilitated by adopting a greater mix of land use and density. This helps
in reducing the need for travel and private car due to availability of services needed by settlers.
If possible, it is also commendable to promote local agricultural practice for food security and
economic livelihood. Schemes need to also provide employment opportunities.
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 Green and Resilient Cities - Environmental Sustainability (Resource Conservation and

Maintenance of Biodiversity) and Management (Reduce Pollution): integrated land use
system and transport planning need to be adopted to reduce emissions. Further attention is
needed in catchment management of water supply issues, steps taken to treat sewerage and
in the management of flood plains. The final issue here is:
o The need to introduce open spaces and pedestrian squares. Open spaces and plazas
should be made accessible close to commercial and transport service centers, parks
and parkland serving the public.
o Maintaining the view into the railway station as both economic and social asset for the
whole area and enhancing by creating an island parkways providing sufficient walk-
ways and rest and playing places.
o Creating on street and neighborhood parking facilities for loading and short stay.
o Setting up a morphology of land pooling scheme for the mixed use area, defining a
protected shaded green area and air movement/flow pattern; and
o Creating filtration points to the service core area, by networks of pedestrian paths as a
link between the UD site and the plaza as well as the railway station.
 Inclusive Cities and Strong City Systems – Access to Land, Affordable Housing, Public
Transport and Amenities, and Comprehensive Linkage between Development, Land Use
Planning and Urban Design: with respect to compact housing practice with appropriate
provision of green areas, multi-housing program is needed to prevent fringe area housing.
Intensive redevelopment will to be introduced around well-located transport nodes. At the same
time, new housing scheme has to respect local amenity and heritage. In the integration of
transport system and land use, a system of transport convenience in relation to commercial,
housing, jobs and civic uses being placed in a walking distance is crucial. In neighborhood
amenity, creating a neighborhood with a sense of community dealing with the issue of safety
and security in an appropriate takes place as a core objective.
The concept of the UDP is consequently based on a number of qualities inherent in the site and
the major findings of field study. The site has already been promoting a number of services and
social amenities with a sense of place and activity and the following initiatives are considered to
establish the conceptual framework for the site:
 Creation of pedestrian only streets and a Pedestrian Squares – creating an appropriate and
coherent environment for this core service area. Some qualities that need to be considered
from this perspective are:
o Pedestrian interaction as well as safety and reduced pollution from vehicular use
o Pedestrian spaces by clustering functions and creating a movement corridor that
creates interaction among the service users
o Pedestrian dominant green for local scale activities
 Retaining the view into the lake as social and economic asset distributing economic and
environmental resource to appropriate living for the whole area:
o To maintain the view into the lake, structures should be no more in average than 3
stories.
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o A non-building zone is established, that allows the view into the lake to be preserved
providing sufficient rest/waiting, playing and walking places extending up to the
University Campus on the other end.
 Setting up a morphology of land pooling scheme for the mixed use area, defining a protected
shaded green area (reflecting the framework for the LUP area)
 Creating filtration points to the service core area, by networks of pedestrian paths as a link
between the UDP site and the surrounding area; that initiates breeze providing an adequate
cooling effect.
 Emphasizing the city character by closely relating the buildings to the site character respecting
the natural slope as well as the natural feature.
Map 6-2 – Conceptual diagram of the UDP Site
The blue arrow shows the pedestrian axis, which forms a green strip and pedestrian square
enveloped by the services – no permitted buildings
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7 The Urban Design
7.1 The Urban Design Proposals

The UD proposal is presented in one scenario due to the many possibilities that can be brought
about by the new development in a single scenario, which is easy to perceive completely at this
stage.
The proposal is prepared enhancing the framework created for the LUP proposal fitting to the
financial assumptions and desired design module emphasizing flexibility and choice based on:
 Urban Context: where the land use, density, commercial activity and proximity to attractions
and public space have been given due consideration;
 Mobility/circulation operation: where both current and future challenges has been taken into
account to make room for public parks, pedestrian routes, utilities, etc.; and
 Greening: where a wide green corridor is created in the east-west axis connecting the two
important existing features, Lake Tana which is tourist attraction as well as recreation resource;
and the university campus. It also divides the site into two equal parts creating interconnected,
livable and active neighborhoods. In addition, open spaces and public green network has been
established to balance the environment and enhance visual excellence. The green corridor can
also be used as storm water management/embankment connecting the site with the Lake.
7.2 Land Use

The land use design has been approached by establishing a green corridor where public parks and
green spaces, amenities and parking bays are used as main driving elements of the neighborhood.
Besides, commercial streets and residential quarters with the public green network forms the sub-
center development associated with the main pedestrian activities around the green corridor and
around the Lake. Nearly all proposed amenities are in the UD site on the East-West green corridor
providing immediate service for the sub-center.
The actual area achieved in the proposal has been shown in the table (Table 7-1) below;
Main public amenities like education, health and administrative functions are located in the central
piazza formed by the intersection of the green corridor and the main collector street. Each center
of a sub-neighborhood is connected to the piazza through green ways or local streets carrying less
traffic. In addition, the LUP is intended to provide for limited through traffic and no congestion. All
cycles of human life (infant, young, youth, adult, and elderly) are considered while designing
movement, infrastructure networks, services, open spaces and residential establishments.
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Map 7-1 – Detail Land Use Map for the UDP Site
Page 66
Table 7-1 – Areas Achieved in the Proposal of the UDP
Functions and Standards Actual areas in the Final Remarks

(Planning and implementation UDP proposal (hectares)
Manual)
Residences
 Around 3000 in the whole LUP  200 sq. meter plots – 1.2 ha  Here the land pooling exercise
 According to the available land in  600 sq. meter land pooling has been directly adopted from
adjacent to the main streets 1.6 ha the LDP team with little
modifications; the only thing
that has been redesigned is
around the 150 square meter
plots behind the land pooling
site
Services (5-10% for the whole  No secondary school
NDP site which is 6.5 -13 ha)
 Primary school 1.0ha
 Secondary schools 2.5-6 ha  Health center 0.7 ha  The community center can
 Primary schools 1.5-2.5 ha accommodate variety of
 Community center 0.8 ha functions; if some functions are
 KG 0.06-0.32ha  Reserved area 1.0 ha required beyond the size
 Health center 0.45 - 0.6 ha  Play lot 0.5 ha allocated in the UDP, the site
 Community center - none adjacent to the UDP can be
 Children’s football field used
 Reserved area - none 0.8 ha
 Children’s football field 0.3-0.42 ha  Parking space 1.14ha
 Play lot 0.1 – 0.2ha  Cultural Center 0.4 ha
 Regional Stadium 16ha  Green & Parks 4.8ha
 Green Areas or Parks 2-8m2/inhab
The East-West green corridor has been supported by the three-story land pooling fabric giving a
sense of flow for pedestrians. It goes directly to the Lake where walking can be done by enjoying
the atmosphere of mixed activities along the way. This reduces the pedestrian traffic around the
main streets and gives more pedestrian convenience. It will also create visual link between the
green along the green corridor and the Lake.
7.3 Road Network
7.3.1 The Network
The first step was to create the network of streets. The interconnected network of streets extends
through all parts of the UDP and connects them to adjacent neighborhoods, services and facilities.
The geometry of the street plan was influenced by the natural features such as mainly Lake Tana
and the topography of the site. A green corridor with a 21m wide street on both sides is designed
as a cordial axis for fast movement, footpath systems convenient for anticipated pedestrian traffic
and bike lanes. The collector in the north-south axis is the main transportation corridor, linking the
site to the city center. The design of these corridors takes into consideration future development.
A range of different street patterns exist from small-scale neighborhood streets with 9m to 13m
wide community scale street, to gracious throughways with landscaped parks and services
separating the two 21m wide streets. The streets are generally designed to create a safe and
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pleasing environment for pedestrians while still accommodating the car, but without allowing it to
dominate and reduce traffic speeds to 20-30mph. The width is generally 9m with 4.2m wide lanes
to allow a vehicle to safely overtake a bajaj or carts and a stationary broken down vehicle. This
width also allows the passage of wide loads. All other general street widths are 13m and 21m with
3m wide traffic lanes and 2.3m wide transit users’ lane.
Figure 7-1 – Road Design
Utilities14 comprised of networks, which include sewerage, water supply, drainage, electricity and
communications, are laid beneath the surface following the road networks. Under the 13m and 22m
wide collector streets drainage networks are laid 50cm away from the curbstone towards the
carriageway; sewerage are set 1.5m away from the property line to the pedestrian walkway;
electricity are found 50 cm from the curbstones towards the pedestrian walkways; water supply is
1m away from property lines while telecommunication networks are found 30-50 cm from property
lines.
These networks are found with a bit different pattern under the feeder roads. Drainage is similar to
the ones found under the collector streets. Sewerage is laid 1m from electric and street lighting
networks, which are in return laid at 30cm from curbstone towards pedestrian walkways.
14 Refer the annexed maps for visualizing the networks.

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Telecommunication networks are found 30cm away from the property line while water supply is laid
40 cm from the communication lines towards the carriageways.
Drainage and sewerage networks are using 80 cm diameter concrete pipes. Main trunks of water
supply use 30 cm diameter pipes while distributors in the residential blocks use various smaller
sized pipes.
Solid waste collection spots are placed in selected areas along the access roads based on the
standard of 100m radius service coverage areas. The service platforms are 4m by 7m wide
rectangular concrete, well fenced to avoid odor and visual nuisances. The platforms will
accommodate 8m3 containers. The containers in the service platforms are temporary solid waste
disposal used by solid waste collectors, MSEs and business operators, and residents of the
neighborhood. Small operators (MSEs) will collect solid waste house-to-house and dump them in
containers placed on these service platforms.
7.3.2 Cross Sections
A cross sections catalogue of public spaces showing elements and their arrangement that are
relevant and correct for the specific development areas of the site is prepared based on analysis
of local models, and then described as a set of standards. The proposal has accommodated cross-
sections starting from small-scale community streets of 9m to wide streets with green corridor.
Many of the most beloved streets and spaces of the city are used as a model for different types of
streets proposed in the catalogue.
Some cross-sections show shared streets without curbs where vehicles and pedestrians travel on
a single shared surface. It encourages the pedestrian-orientation of streets allowing shaded free
pedestrian movement reducing the speed of vehicles. Some cross-sections provide medians as
refuge for crossing pedestrians and add landscaping to the street space.
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Map 7-2 – Proposed Street Network Map
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Figure 7-2 – Street Sections
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Figure 7-3 – Streets Cross Section across the Green Belt
SECTION A-A (9m Street)
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7.4 Mobility Pattern

Majority of street sizes are enough for two direction mobility. It can accommodate both vehicles
and bicycle; and also pedestrian paths. In some areas, the streets are kept narrow as much as
possible limiting mobility of vehicles in only one direction to make the neighborhood more
comfortable for pedestrian movement and also to reduce initial infrastructure cost. It will also help
in reducing pollution, noise and emission. Such narrow streets are designed considering the
reasonable walking distances of around 400m -800m (5-10minutes walk) and also the possibility
to take over a broken down vehicle.
Map 7-3 – Mobility Map Illustrating Movement Pattern within the UDP
7.5 Building Morphology
7.5.1 Block Pattern
A series of blocks have been designed, creating a point of view either to the lake or to the green
corridor providing sufficient flexibility to cater for the housing needs of today with sufficient service
centers. The buildings of all use types are designed to be built close to the edge of each block, with
the center reserved for green and communal backyard activities creating uninterrupted social
spaces with views to both the lake and the green corridor.
Besides, streets with 2m uniform building setback have defined urban blocks for development,
which are planned either for particular types of development or for other services. These defined
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block edges can be reinforced by the addition of hedges along the front property line on the setback
area clearly distinguishing the public from the private realm.
Besides, the integration of both the streets network and open space has created the addresses for
development sites. Some blocks are serviced by walkways and others from the streets. Appropriate
dimensions for blocks are also identified based on the accessibility as well as ease of mobility.
Each block will accommodate a variety of building types with different uses, lifestyles and enhances
a sense of community. The buildings will complement one another in uses, mass, height and
location creating pattern to define the neighborhood character.
Map 7-4 – Urban Blocks Pattern
7.5.1.1 Land Pooling Blocks and the Buildings

Land pooling blocks tend to be larger in order to accommodate the footprints of larger buildings
and to provide adequate service and parking space. Appropriate parking space has become a
headache in many cities/towns of Ethiopia. Thus, bigger plots sizes, 20mx25m, are proposed to
create a chance of providing parking space at each building front and underground and should also
be considered as requirement.
Besides, mix of buildings is proposed such as some single-use and some with residential or office
over retail. All the buildings within these blocks will have a minimum of 3m wide arcades for window
shopping as well as shaded walking purposes.
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Figure 7-4 – Land Pooling and Residential Plots Pattern
7.5.1.2 Residential Blocks

Typically, residential block sizes vary depending on the orientation and arrangement of the blocks,
the nearby development, access roads and mobility mainly footpaths. In addition, block sizes are
designed considering their compatibility with the existing patterns in the nearby diaspora
community. Here, the residential block sizes range from 34mx46-74m, which in turn divided into
lots of 9mx17m. The block designs include provisions of 2m setbacks for buildings to further define
the character of the street side public spaces and the neighborhood.
The individual lots are designed to accommodate any one of several building types as specified on
regulations map. It can be a small apartment or corner building or a large single family house as it
is indicated on the figure below. It is also possible to build duplexes and single-family houses to
give a mixed-income character to the neighborhood. These provides for variety while preserving
the overall aesthetic integrity of the block and the neighborhood.
Different architectural styles for different lot types can be possible creating power, flexibility and
different combinations to produce a rich and complex environment maintaining the context.
Figure 7-5 – Residential Block and Plots Division Pattern
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7.5.2 Land Use Regulation
The site has a regulation map that shows the FAR, BAR, arcade width (wherever necessary), land
use, setbacks, and building height. The regulation has enhanced the articulation of the building
arrangement creating well defined urban blocks with nice green corridor creating conducive
environment for pedestrian mobility.
The developers are also expected to consider the lifetime needs of residents in building the general
needs of housing and commercial activity. Levels of access and other provisions in the building
regulations should be considered a minimum standard.
The setback gives space for street side green integrating smaller places for resting, playing and
meeting. In addition to this, morphology regulation has been introduced to achieve a consistent
building development creating nice backyard green area which can be managed communally or
individually without putting any visual barrier across the block; see fig.12. The regulation gives the
value 0.6 and 0.5 as a BAR for land pooling and residential, and service areas respectively. It also
provides 3m deep arcade in land pooling areas to create shaded walkways and areas for window
shopping.
7.5.3 Character
The UDP arranges the land pooling and the residential houses as a backdrop to a system of
squares, streets, greens and lanes to create an identity and sense of place extending the East-
West neighborhood spine, the green corridor. It is designed to work as one cohesive whole creating
a sense of being a recognizable community with a distinctive identity and character. All the facilities
and components that make up the neighborhood are designed within walking distances of each
other along the green corridor.
The building morphology is planned in a way to create a well-defined continuous and consistent
building line generating a recognizable neighborhood character with collective green aligned all
through the plots. The streets will be defined by commercial and residential buildings at 2m setback
from the streets edge creating an area for road side green (tree planting) on both sides creating a
sense of place. This will define the street edge and provides a measure of separation and privacy
for residential units. It will keep the streets active as much as possible allowing the vibrancy of the
decorated buildings and green corridor to dominate providing a sense of rhythm. It will also exploit
additional opportunities for seating and public realm interventions as well as future streets size
changes/increase. Besides, the arrangement will create semi-private backyard open space to be
closed at the two ends of each block.
The green corridor combined with services within the site especially at the land pooling area and
the open space created around the lake will create a new sense of arrival breaking up the visual
mass. Besides, special function site is accommodated to absorb services demand arising from the
park/green corridor activities, the land pooling area and the city as well.
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Map 7-5 – Urban Land Use Regulation Map
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Map 7-6 – Morphology Map
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7.5.4 Aesthetics
The planning geometry and the urban design concept have helped us to adopt a simple and healthy
approach to the site to ensure that the ground plane remains largely neutral to allow the
architectural character and the green corridor activities to dominate. This will create an environment
where the horizontal alignments respond more to the building facades and the public realm’s spatial
requirements rather than to vehicle movement.
The design has created a nominally consistent façade plane or building edge with varied roof-lines
along the street creating well defined street edges with unified neighborhood style with landscaping
and theme.
Figure 7-6 – Neighborhood Style Map
7.6 Public Open Space and Green Areas
7.6.1 Green Network and Open Spaces
Green and open spaces network has become increasingly important as the effects of climate
change take hold and urban areas suffer temperature increase. Its role and its cover in cooling the
urban heat island effect will be vital to make settlements attractive places to live. Thus, the proposal
has established a network of green fingers to permeate through the site.
This framework is amplified by public open spaces, parks, playing fields and greens that provide
dignified settings for the neighborhood. This well-defined and interconnected network of public
open space establishes the character and scale of the neighborhood.
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Map 7-7 – Green and Open Space Network Map
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The proposal has extended the city’s experience to the UDP area in creating neighborhoods with
clean air, trees and natural landscapes, places to walk and sit outside creating a rich and
aesthetically varied environment. It maximizes the desired feeling of contact with nature or being
in natural setting.
A green corridor with services is proposed linking Lake Tana and the university campus extending
green features providing visual relief, seasonal change, and a link with the natural setting. Thus,
 It creates a rich and varied aesthetic environment to maximize the desired feeling of contact
with nature. E.g. planting plants of varied colors, textures, flowers, sizes, species, and shapes;
creating water that is moving/fountain.
 It creates meandering pathways through or alongside natural settings within the neighborhood
with varied views, alternating settings of enclosure and openness, and opportunities to play, sit
and rest.
 It creates an environment where people want to meet, eat, read, or study outdoors in a natural
setting, which will be created by placing benches with tables in planted areas facing pleasing
views of open green areas.
 Visually attractive and varied walk-through (pathway) is provided for those who may use the
park only for a leisurely walk to/from the Lake side.
 It is possible to assign some pathways as bike-riding course and also provide places for group
and cooperative activities to make the park more active.
The park is located near and through mixed-use facilities to create a large pool of potential users.
Besides, it lays on possible bus routes and the main collector streets to encourage the use by the
communities as well as the passerby. The land pooling development has also created semi-private
green and open space network at their back with only 3m wide pedestrian and bike way.
Figure 7-7 – Semi-Private Green and Open Spaces Pattern
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7.6.2 Parking and Loading Bays
Land Pooling development is proposed to have its own car parking and loading area in a basement
under the buildings where as carport for Town Houses on their plots. Besides, communal on-
surface car loading/unloading, parking and waiting areas are designed for short-stay uses as an
integral part of the green corridor. It has also been incorporated as part of the green creating a
place for thinking in the cars within a treed and landscaped environment mitigating impacts on the
surrounding land uses.
Map 7-8 – Parking and Loading/Unloading Spaces
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Part 3 Project
Costs and
Implementation
Strategy
8 Physical and Financial Implementation Strategy
8.1 Implementation Strategy and its Challenges in Ethiopia

Since attempts of preparing urban plans at different stages have been commenced in the modern
history of Ethiopia, putting into action those plans have been a challenge. Several factors could
actually be cited for the problems with regard to plan implementation. Few of them may include
failure to devise down to the ground implementation strategies coupled with shortage of finance,
lack of appropriate institutional and regulatory arrangements, poor coordination among
stakeholders, and weak law enforcement.
Designing workable implementation strategy begins from its planning. It should clearly indicate
what, how and when to do the job. It has to plainly craft how to mobilize potential resources, the
time frame to put the plans into actions, how to coordinate different stakeholders, monitoring and
evaluation issues and the like. Above all, it should visibly pen feasible approaches on how to
implement the plans in a participatory way. Unfortunately most urban plans, be it a master plan,
local development plan, eco city and the like, which are prepared in the country are presumed to
be implemented primarily by local governments. This preconceived outlook is often reflected by
the designed implementation strategies. Their stakeholders’ analyses, budget implication, issues
raised in relation to relocation, etc. generally show how the traditional approach imposes its
massive impact on planning and implementation of urban plans in the country. In short, the
government is the central planner and implementer while the community is just an acceptor of the
implementations designed by the authorities. The result of this top-down approach however seems
not promising especially in the case of neighborhood development plans. Most ended up shelved
and only few are realized with huge government involvement. All these imply the need for a
paradigm shift in designing implementation strategies for a higher success rate.
On top of the highlighted issues, the success of the urbanization process in the country for the
coming two decades depends on the will and capacity of the federal and local governments to set
up a rigorous urban planning framework following a strict schedule of implementation, with no room
for failure. It in fact essentially requires a sound institutional setup and financial arrangements.
8.2 Key Assumptions for Implementation Strategy

The following are the key assumptions for designing workable implementation strategy.
8.2.1 Participation in the Design and Implementation of NDPs
The participation of citizens and relevant stakeholders is a key component in building local
government capacity. Stakeholders’ engagement in civic matters yields more responsive solutions
and decisions concerning matters that affect the entire planning area. Stakeholders who are
involved in the planning stages are more apt to get involved in implementation and monitoring, as
well. As a result, trust and understanding of local government processes, community pride, and
overall accountability are greatly increased, enhancing the chances of successful local planning
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and development15.The NDP plans should ensure participation of the local community and other
concerned parties such as the CBOs, NGOs, the local government bodies, the civic society, local
business owners and other key stakeholders while designing the implementation strategy.
Participation should also be ensured through a number of institutionalized mechanisms.
8.2.2 Prioritization of Development Phasing
It is clear that any proposal cannot be realized overnight due to resource constraint, which
necessitates phasing. Phasing on the other hand quite entails estimation of public investment cost
so that how much amount of finance required over time for various development activities would
be determined. This would obviously help the City Administration in designing its own development
phasing.
Prior to phasing, prioritization of the proposals should be exercised through developing pertinent
set of criteria. The proposed activities should thus be weighed against the developed criteria to
arrive at the prioritized specific activities. Criteria may mean to measure the impact of the proposed
issues against cost, urgency, multiple effect/impact, cross–cutting issues, revenue generation
capacity, social disturbance, attitudinal change, environmental and gender responsiveness as well
as employment generation capacity.
8.2.3 Estimation of Public Investment Cost
The public investment cost required for the NDP under consideration should be clearly estimated
to help the concerned parties budget the required financial needs and the succeeding
arrangements. Cost estimations may include components like infrastructure (road, sewer line,
power line, water installation line), housing development, car parking facilities, compensation and
relocation, job creation (MSE shades and clusters), social service facilities (public hospitals, health
centers, schools) youth and community centers, cultural centers, police stations, parks, green
areas, solid and liquid waste facilities, and public administration offices.
Other NDP components such as commercial establishments, residential and commercial real
estates, office buildings, hotels and bars, museums, market places and the like are expected to get
developed through the private sector initiatives, joint ventures and where appropriate public-
private- partnership modes.
8.2.4 Public Private Partnership for Developing NDPs
A. Generlal Overview
Financing urban development requires huge financial resources. Many local governments in
developing countries face increasing difficulties in finding the resources to meet various needs for
essential services and urban centers of Ethiopia are no exceptions in this regard. One solution to
address this challenge is to engage in partnership modalities, which involve collaboration among
different stakeholders in government agencies, the private sector and/or community organizations
15 Sharon Cooley, et al (2004): Local Development Plan and Participatory Monitoring and Evaluation: Structure and
Methodology: Co-published by the Urban Institute, urban Research Institute and the Albanian Development Fund
Albania.
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(Sansom G. 200316). Over recent years, Public-Private Partnership (PPP) is strongly endorsed by
international financial institutions and aid organizations as a key mechanism for delivering essential
community basic services in developing countries (UNDP, 199917).
A Public Private Partnership is an arrangement between a public (government) entity and a private
(non-government) entity by which services that are the responsibility of/have traditionally been
delivered by the public entity are now to be provided by the private sector under a set of terms and
conditions that are defined at the outset (V. Srinivas Chary, 201218).
The effectiveness of PPPs in several developing countries however is becoming questionable
because of its much underutilized and limited nature. This much unexploited pattern should in fact
be reversed as the financing gap in urban centers is significant and rising and there seems to be
an enormous potential for more private sector involvement in the financing and operation of the
public service providing sector. Some of the reasons behind the effectiveness of PPPs in
developing nations may include lack of appropriate legal framework, economic and political
instability and the ensuing high perception of risks.
Provided that all the necessary facilitations and legal frameworks are appropriately formulated,
PPP modalities would become effective instruments in generating revenues, utilizing potential
resources, reducing inefficiencies and promoting transparency, which in all effect provide an
alternative solution for urban local governments.
B. Harnessing PPPs to the Local Context
The role of any municipality should be guaranteeing inclusiveness while undertaking development
activities under PPP modality in a given NDP development initiative. It should negotiate with the
private and other parties to ensure the inclusiveness of the low income and vulnerable groups in
the development benefits of the area. Municipalities need to scale-up their negotiation power with
the private sector through a win-win approach while executing different development activities that
involve a number of parties.
Although the experience of PPP modalities in various urban development initiatives in the country
is at its infancy at the moment, this can widely be exploited with the right mix of policy and other
interventions as learnt from the international experience. The country has actually a number of
opportunities which can be harnessed and developed as entry points for potential PPPs. The
opportunities include existing policy, legal, political and administrative instruments, mechanisms
and platforms. The following are the major ones among the opportunities identified as adopted from
the AACCSA (2011)19 report:
 Enabling development frameworks including the PASDEP, GTP (I& II), Sector Proclamations,
some NGOs (such as UNDP - CPAP, GIZ) Country Programme and policy provisions available
in various sectors;
 Existence of the private sector that can pool private capital, technology, efficiency, innovation,
etc
16 Sansom G (2003) Better Local Services: Improving Local Government Service delivery through Innovation and
Partnership. UTS Center for Local Government, Sydney.
17 UNDP (1999) Public-Private Partnership in Social sector: Executive Summary. Tokyo.
18 V. Srinivas Chary (2012). Public Private Partnerships (PPP) in Urban Infrastructure and Service Delivery.
[email protected].
19 Private Sector Development Hub/Addis Ababa Chamber of Commerce and Sectoral Associations (2011). The
Potential For Public Private Partnership (PPP) In Ethiopia. Produced and distributed by the Addis Ababa Chamber of
Commerce and Sectoral Associations with financial support from Sida. Addis Ababa. Ethiopia.
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 The existing Public Private Dialogue forum which is led by the Country’s Chamber of Commerce
and Sectoral Associations provides a good platform for PPP advocacy.
 The business and entrepreneurship programme for Micro and Small Scale enterprises is a good
entry point for PPP training.
 Tax waiver on imports of heavy equipment is a good incentive;
 The Procurement Law allows for competitive tendering.
 The bridging arrangement (management and joint ventures) put in place by the government in
preparation for full-scale privatization.
 There is consensus among a number of line ministries on the need to integrate PPPs into sector
wide master plans, programmes and budgets.
Few of the interventions which should be in place for beefing up PPP schemes include:
 Awareness creation across wide range of the public and private sector.
 Establishing a PPP policy and regulatory guidelines. Here, existing policies, regulations and
legislations should be carefully reviewed and appropriate cross-sectoral guidelines need to be
designed. The guidelines should consolidate issues on the rationale for PPP policy and legal
provisions, planning and procurement issues, capacity building interventions and institutional
roles and responsibilities. The country also needs institutional reforms to integrate PPP
investments.
 Formulation and Implementation of PPP Investments. There is a need to formulate a clear
guideline for the project lifecycle to develop and execute PPP investments in the urban
development sector of the country.
 Capacity Development Interventions. Technical and functional capacities of both the public and
private sector need to be upgrades for effective realization of PPP arrangements. We need to
have developed structure, systems and business culture of actors in both the public and private
sector to push for win-win PPPs
 Exploring alternative financing options through a mixed bag of resources. This may include (but
not limited to) private capita, equity funding, direct budget support, government bonds and
development partner grants.
C. Seleted Local PPP Best Experiences in Construction and Urban Development

 Case 1: Ayat Real Estate Development
o Ayat PLC, which is one of the oldest and biggest real-estate companies in the country,
was established in 1997 that was able to provide more than 5,000 housing units in Addis
Ababa before the millennium turns. This success was basically anchored on principles
of massive housing development which makes efficient utilization of the available
infrastructure. Ayat was able to realize early the viability of large scale development and
the pursuing benefits reaped from economies of scale. It thus undertook the housing
project with associated infrastructure and service development through public private
partnership modality via principally targeting the middle and high income groups mainly
from the diaspora community. Ayat leased land from Addis Ababa City Administration
and developed housing units with associated road and utility networks using finance
solicited from own capital, loan and down payment collected from the house seekers. It
then carefully prorated the total development cost of housing and associated
infrastructure on the price of housing units constructed. Mortgage based payment
modality was then effected which helped house owners to settle their debts in a lengthy
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period. Inhabitants in collaboration with Ayat were also accountable for developing
various services entailed and the green area.
o In a separate project, Ayat had an experience of rehabilitating farmers affected by urban
expansion (farming land was leased to Ayat) in collaboration with the City
Administration. The supplementary packages of supports bestowed by Ayat for
rehabilitation include providing priority to the affected families in employment generated
by the project and assisting in suitable rehabilitative project formulation and executions.
o This was indeed an exemplary urban development project in the country where different
parties including the government, the community, investors, financiers, contractors, etc
successfully worked together in partnership principle for a desired outcome, with the
leading role played by the private sector (here Ayat PLC).
 Case 2: Experience of GIZ (German Agency for International Development) in the construction
sector
o The country has limited public-private partnership experience which was mainly
spearhead by GIZ- a German agency. Excerpts from one PPP study in this regard states
that “In the construction sector, GIZ has implemented its concept of PPP under its
development partnership framework by strengthening institutions, improving
workmanship and skills of contractors and promoting investments in the form of joint
ventures between German and Ethiopian companies” (AACCSA, 2011: pp.18).
 Case 3: Public Housing Development Scheme
o Since the re-registration of condominium house seekers in Addis Ababa in 2013, the
Ethiopian Government has introduced a new PPP arrangement in housing which is
structured as a multipurpose partnership scheme involving the federal government,
construction contractors, commercial banks and beneficiaries. For instance, two
schemes of the PPP investments were introduced for the ‘40:60’ housing development
program in the Capital. First, the government engaged with construction contractors
through the usual fixed term service contract to construct the dwellings via availing land
free of cost. To finance the scheme, the government entered into a smart partnership
arrangement with commercial banks that have committed themselves to finance up to
60 percent of the development cost. The second scheme would be an agreement
between the government and beneficiaries who are expected to raise the remaining 40
percent portion of the capital investments through deposits before and during the
construction period. Other arrangements (such as ’20:80’ or ’10:90’) have also been
arranged similar to those ’40:60’ schemes which targeted middle and low income
groups. Mortgages were also arranged for the entire groups through agreements
reached with banks. Now houses are being constructed and transferred to beneficiaries
using such schemes in the City. Such kind of financing scheme is indeed an innovation
which requires a well structured investment plan, plus regulatory guidelines in which
Government-Banks and Beneficiary Owners take up risks and responsibilities and share
incentives under a mutually beneficial agreement (AACCSA, 2011).
8.3 Background and Pre-requisites

The following are important elements, based on the newly developed urban planning model,
considered as background for planning the implementation strategies.
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 The concept of developing NDPs as part of the SP, which harmonizes 100m
implementation schedules, design guidelines, land use plans and
regulations;
 The public investment, limited to about 20% of the development
needs, will be focused on roads and associated utility networks. In 100m
Abay Mado NDP, the length of the roads serving 130 ha reaches
8.45km; that is approximately 85m/ha. According to the schematic
representation on the side, it is 27% of the 400m required for a sound
infrastructure layout per hectare.
 The remaining 80% of the road requirement is expected to be covered by the contribution of
the private sector and the community.
 Moreover, financial capacity and future development portfolio will define the standards of the
roads; and their implementation will follow a step-by-step progressive approach; and
 The strategy of slum reduction does concern not only the existing residents and their
settlements but also the pressure that will be created by new comers. Ignoring newly arriving
low-income households will increase slum proliferation and never brings out cities from the
vicious cycle of soliciting resources for slum upgrading.
8.4 Business Plan
8.4.1 Background
Two alternatives have been considered to prepare financial parameter of the business plan. The
major difference between the two alternatives is that the first one assumes huge involvement of the
private sector (80%) for realization of selected infrastructure developments (roads and networks)
while the other option bears full participation of the public sector for implementation of the identified
infrastructure projects.
The practicability of each alternative depends on the validity and fitness of the assumptions
employed to the country’s specific socio-economic, cultural as well as political setup. It thus
requires careful evaluation of the pros and cons of the choices prior to adhering to one.
For instance, the role played by the government in provision and financing different infrastructure
facilities aiming to serve the public at large could be enormous in the country where the private
sector maturation is limited. On the contrary, as the government cannot cover the entire resources
required to finance the ever growing infrastructure need of the public at large, the part played by
others including the private sector cannot be overlooked as clearly explained before. Literatures
and empirical studies for example depict that the private sector works better in provision of goods
and services with a public good nature in a well-tested and matured PPP market. The issue of
finding an equilibrium point between these two choices would thus be a challenging exercise, which
quite entails a meticulous evaluation of the two approaches.
The following table (Table 8-1) presents the differences and similarities of the two choices used to
conduct the financial analysis of the business plan.
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Table 8-1 – Assumptions for Business Plan Preparation
Parameters Alternative 1 Alternative 2

Prime implementer of  The private sector (with 80%
The public sector (100%)
infrastructure projects share)
 Roads
 Networks including water supply,
 Roads
drainage , sewerage, power
Components of projects for  Networks including water street lighting and communication
supply, drainage sewerage,
implementation  Compensation
power, street lighting and
 Housing
communication
 Social service facilities
 Green/park
Legal structure of the
implementing company  Private  Quasi private
(UDECOM)
 Company’s Profits (3% of lease
Source of finance for
revenue) & studies (5% of lease  Government budget
managing the UDECOM
revenue).
Source of finance for  Loan + private sector
 Entirely loan
infrastructure development contribution
 Leasing land, assuming that 20%
 Leasing land, assuming that of the leased plots value will be
Source of revenue 100%20 of the leased plots paid as down payment and the
value will be settled at once. remaining 80% distributed over
the agreed lease period.
 Labor cost (13 national staff with
2.06 million annual gross salary)
 Running cost (including local
 Other expenses like
staff salary, international support
administration overhead, utilities,
Operating cost components expenditure and other costs) is
fuel & lubricants, repair and
of the REUDECOM assumed at 3.7 million birr per
maintenance etc are also
annum
estimated
 Operating cost totaled at 2.44
million Birr/annum
Loan interest rate for
 5%21  8.5%22
infrastructure development
Project implementation
period of infrastructure  5 years  5 years
development
 Every year, for the project
Loan taken-up period  1styear, once implementation period (5 years in
this case)
Loan repayment period  5 years  14 years
 Financial balance done under
 Financial balance done only
three scenarios: low, medium
Financial indicators taking the low scenario
and high
 No IRR, because no profit
 IRR estimated
20 This requires policy review as currently the down payment settled ranges between 10 and 20%, and not 100%
payment at once as suggested. This will be discussed under section 9.3 (legal framework) part of this paper.
21 We proposed medium to long term loan acquisition interest rate of 5% which doesn’t currently apply to the Country’s
context. This rate is adopted from international experience on such kind of successful projects across different
countries of the Globe (France and China for instance). This actually calls for monetary policy review of the Country
as there is no such interest rate (or not allowed per se) for loan extension among financial institutions functioning in
the nation.
22 This is the minimum interest rate for loan acquisition which is charged by Development Bank of Ethiopia.
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As it can be seen in the above table (Table 8-1) and discussed before, alternative one assumes
the private sector to take the lead for realizing the proposals of Bahir Dar NDP via focusing on
roads and networks. The private sector is expected to contribute about 80% of the resource
required for development mainly through medium term loan financing with low interest rate. The
implementing body, which is the REUDECOM, is expected to be a private company that covers its
running costs through the profit it generates from leasing land and charging different engineering
studies it conducts. The leased plots are assumed to be transferred with 100% payment at once,
which will be used for loan repayment.
On the other hand, alternative two assumes that the infrastructure developments proposed by the
NDP will be entirely undertaken by the government using long term loan financing. The company
to be formed for managing the development works will be a quasi-private budgeted institute, which
administers the loan it takes for realizing the entire public investment works including the roads,
networks, facilities, parks and the like. Source of revenue for loan repayment is assumed to
emanate from leasing land (in accordance with the current lease proclamation of the country) and
other sources.
Opting for one of the alternatives quite needs careful considerations of each approaches
advantages and disadvantages and evaluating their feasibility in the country’s context. The ensuing
table (Table 8-2) summarizes the cons and pros of each option.
Table 8-2 – Advantages and Disadvantages of both Alternatives
Advantages Disadvantages
 High level of private investment.  Risk of default
 Private sector bearing significant share of the  A possibility of project risks being turned into
risks government risks
 Efficiency gains / Better service  Private sector may lack interest
Alternative 1
 Better choice of technology and room for  Needs strong legal framework for operation and
innovation contract management
 Opens room for mismanagement of scarce public
resources (ex: corruption)
 Difficult to implement on untested PPP market as
in the country’s case/Needs well developed
private sector for success
 Need for administrative mechanism and special
skills in the government
 No need for amendment of the existing  Efficiency
legal loss / Poor quality of service
framework / enact new  All risks assumed by the public sector
  May have underlying fiscal costs to the government. (huge
Alternative 2
Better fits with the existing socio-economic

and political setup of the country budget requirement)
 No risk of default  Contingent liabilities on government in the medium and long
 No lengthy process for negotiation with other
term
parties
 Better option to solicit finances from different
sources
The country’s limited experience recorded thus far in successful implementation of counted LDPs
demonstrates presence of government’s heavy hand. The current practices of Lideta, Sengatera,
and Basha Wolde renewal areas of Addis Ababa for instance manifest this fact. The
implementations indeed required enormous finance, compensation and relocation as well as
tremendous coordination works with the government always taking the lead and lion share
involvement. Changing this course via letting other actors would undeniably become a plus for the
Page 92
government in terms of such as easing financial burden, bringing efficiency gains and opening a
room for better choice of technology and innovation. Capitalizing on others however requires better
legal framework and workable platform to minimize the risks associated and ultimately achieve a
win-win objective for both parties. In short, a transition from alternative two (mainly the current
practice) to alternative one (massive private sector involvement) requires at least the following
conditions to be fulfilled in the current context.
 Lease revenue to be paid at once should somehow increase from its current ~20% to the sum
exceeding 50%, which evidently requires amendment of proclamation no. 721/2011, and
particularly the article stating size/proportion of down payment.
 The success of the private sector’s involvement in such kind of projects depends on careful
selection of investment projects for involving the private sector. This is due to the nature of the
private sector’s profit oriented drive and hence certain projects such as the real estate
development, park, toll road and the like could in fact have the power to attract the private
sector as these would bring profits to them.
 The government should support well the participating private sector through giving incentives,
matching funds, grants and the like in the situation where the venture is not viable enough.
 The necessary legal and administrative framework should be designed for PPPs, and
establishment of the FeUDECOMs, ReUDECOM and UDECOMs.
8.4.2 Project Schedule and Phasing for Roads and Networks
8.4.2.1 Road Categories

It starts by identifying the “public” works in terms of roads and associated networks. The following
map shows the categories of roads considered for strict public investment. There are three types
of roads including arterial, collector and feeder roads with average width of 30m, 22m and 13m
respectively (Map 8-1).
Map 8-1 – Categories of Roads Considered for Public Investment
The blocks need indeed to be served by a denser road network, which will be implemented by the
private sector through real estate development and/or community development options.
Page 93
8.4.2.2 Phasing of Roads, Networks and Block Development

The NDP will be implemented in four phases, within 5 years period. This very tight schedule will be
strictly according to the following manner: the first two years for the first phase and one year each
for the other phases. The block development phases on the other hand will be launched
consistently with the implementation of the roads and networks. The major criteria used for
prioritizing the development phasing includes:
 Proximity to major infrastructure;
 Proximity to major economic attractions/ attractiveness of the site in terms of leasing plots for
business and mixed use
 Potential of the specific site for serving as a catalyst for the next development (multiplier effect)
 Revenue generating capacity of the issue/project
The phasing criteria used above can actually be adjusted according to the specific NDP area’s
tailored physical, socio-economic, environmental and political decision making nature. It is thus
important to note that the phasing made serves a guidance and not as an absolute dogma to be
strictly adopted.
The map below (Map 8-2) shows the proposed option focusing on a starting point with high
economic potential zones, and avoiding relocation.
Map 8-2 – Implementation Phasing for Block Development and Roads with Networks
Page 94
8.4.3 Financial Parameters under Alternative One
The following financial analysis demonstrates a successful implementation of the NDPs, including
the block development, in a balanced manner. It implies various categories of expenditure and
revenue, leading to a cost recovery, which allows replication of the process from one NDP to the
other. One can understand that some NDPs might not be profitable, depending on the economic
potential of the land use zones. That is why this approach must be considered at the SP level.
8.4.3.1 Expenditure
There are four categories of expenses.
8.4.3.1.1 Costs of Roads and Associated Networks
Considering category of roads illustrated in Map 8-1, the following bill of quantities is prepared.
The next table (Table 8-3) illustrates the cost of collector roads (20 m width) and feeder roads (13
m width) with their associated networks (water, drainage, sewerage, power and communication)
categorized under each phase. Accordingly, Abay Mado NDP exhibits a total of ETB 168.93 million
(USD 8.45 million) of public investment for roads and associated utility networks, of which 57.6%
(ETB 97.31 million) will be for collector roads. The first phase comprises of 21.3% of the total
investment cost, while the other phases take 24.6%, 33.0% and 21.1% respectively. The first two
years (phase 1) will see more focus on collector roads when phase 4 focuses more on arterial and
feeder roads. In phase one, full budget is dedicated only for collector streets when in phase 2,
87.1% goes for collector streets and 12.9% for feeder roads. Phase 3 sees 40.3% of its investment
allocated to arterial streets, 39.6% to collector streets and 20.1% to feeder roads. Finally, Phase
4 allocates 43.7% (ETB 15.56 million) for arterial, 47.7% (ETB 16.96 million) for feeder roads and
ETB 3.07 million (8.6%) for collector streets.
8.4.3.1.2 Cost of a Unit Basic Accommodation
There is a need to control and manage the demand of housing units linked to the growth of
population essentially, especially concerning the low-income households. The example adapted
from international benchmarks (refer Appendix) shows basic requirement of a housing unit.
 On a plot of 70m2, the housing unit occupies 20m2 from which 16m2 are for kitchen and living
room and 4m2 for restroom;
 Starting from this built core, the plot can be developed into 1 flat (ground floor), 2 flats (GF+1),
3 flats (GF+2) and 4 flats (GF+3);
 The total cost of the unit core, connected to the associated networks, is about ETB 83,700.
8.4.3.1.3 Management Cost of the Urban Development Companies

In its policy documents (the nine policy pillars), the MoUDHC recognized the limited capacity of the
local governments, and their weakness to manage the challenge of the high-speed urbanization in
Ethiopia. Therefore, this NDP suggests the formation of urban development at the local, regional
and federal levels devoted to enhance the performance of these crucial tasks. The structures are
well discussed under chapter 9.
The management costs associated with the Urban Development Company are labor (professional,
additional experts and support staff) cost estimated as ETB 2.06 million and operating cost
accounting to ETB 2.44 million, both calculated on annual basis.
 An eco-finance specialist, head of the team ETB 840,000 per year
 A urban planner / architect ETB 600,000 per year
Page 95
 A socio-economist / demographer ETB 600,000 per year

 A municipal engineer ETB 600,000 per year
 Supporting staff (including functioning costs) ETB 720,000 per year
 Additional expertise ETB 400,000 per year
8.4.3.1.4 Additional costs

 Profit is expected from this structure acting as a private company. A margin of 3% of the cost
of the works is needed in order to finance the management structure at the federal level.
 Moreover, the cost of the urban planning and engineering studies – 5% of the cost of the works
– complete the list of expenses.
 In expansion areas, in settled areas subjected to land-pooling or restructuring, compensation
costs will be applied. They depend on the current use of the land.
8.4.3.2 Revenue
This study considers only one source of revenue, which is payment from the land lease. Each
square meter of plot must be assessed in line with the land use plan and its associated regulations.
Each zone holds its own potential according to the land use regulations. The land lease rates are
differentiated in accordance with the functional zones (Msb1, Msb2, and Th1, Th2 and Th3).
The plots dedicated to public amenities are not taken into account although they might constitute
an additional source of receipts.
8.4.3.3 Financial Analysis
This section assesses the financial balance of the public investment considering only the roads
and associated networks, and assuming that lease payments are fully (100%) settled. The
following are issues that are considered in the financial analysis:
 In 2035 the population of Bahir Dar will exceed one million mark. Thus, the financial balance
integrates 100% of the running costs of the specific structure;
 The former expenditure linked to the bill of quantities of roads and of the associated networks
(refer Table 8-5);
 The revenue according to the low, medium and high assumptions;
 A business plan balanced in a period of 5 years;
 A bank loan issued from an international donor or a local commercial bank in order to cover the
first two years of expenditure – the public finance dedicated to urbanization must be kept for
implementing out of site works like arterial roads, networks, plants (water, wastewater, and
power), landfills etc.
 An average interest rate of about 5%; and
 At the end of the five-year period, an internal rate of return (IRR) of at least 12% is expected.
Page 96
Table 8-3 – Bill of Quantity: Cost of the Roads and Associated Networks
In site 1 20
Arterial Roads - 30m footprint Collector Roads - 20m footprint Collector Roads - 13m footprint TOTAL
m m Birr 1000Birr 1000$ m m Birr 1000Birr 1000$ m m Birr 1000Birr 1000$ 1000Birr 1000$
Total phases 1-4 year 1 to year 5 38 077 1 904 97 308 4 865 33 547 1 677 168 931 8 447
Total phase 1 - year 1 / year 2 0 0 35 982 1 799 0 0 35 982 1 799
Thick. Width UP/ml Length 0 Thick. Width UP/ml Length 1640 Thick. Width UP/ml Length 0
Roads 0 0 24 666 1 233 0 0 24 666 1 233
Asphalt coarse 0,10 21,0 10 500 0 0 0,07 14,0 4 900 8 036 402 0,07 7,0 2 450 0 0
Base coarse 0,40 21,0 3 150 0 0 0,30 14,0 2 100 3 444 172 0,30 7,0 1 050 0 0
Sub-base coarse 0,20 21,0 1 470 0 0 0,15 14,0 980 1 607 80 0,15 7,0 490 0 0
Capping 0,10 21,0 630 0 0 0,10 14,0 420 689 34 0,10 7,0 210 0 0
Excavation 1,00 21,0 5 460 0 0 0,80 14,0 3 640 5 970 298 0,80 7,0 1 820 0 0
Sidewalk Curbst. 7,0 3 500 0 0 Curbst. 6,0 3 000 4 920 246 Curbst. 6,0 3 000 0 0
Other Network* 0 0 11 316 566 0 0 11 316 566
Water supply 1000 0 0 1000 1 640 82 500 0 0
Drainage 4000 0 0 3000 4 920 246 2000 0 0
Sewerage 2000 0 0 1500 2 460 123 1000 0 0
Power street lighting 1000 0 0 1000 1 640 82 500 0 0
Communication 400 0 0 400 656 33 200 0 0
Wastewater Treatment Plant 0 0 0 0 0
Total phase 2 - year 3 0 0 36 182 1 809 5 363 268 41 545 2 077
Roads 0 0 23 969 1 198 3 557 178 27 526 1 376
Asphalt coarse 0,10 21,0 10 500 0 0 0,07 14,0 4 900 8 673 434 0,07 7,0 2 450 1 054 53
Base coarse 0,40 21,0 3 150 0 0 0,30 14,0 1 575 2 788 139 0,30 7,0 788 339 17
Sub-base coarse 0,20 21,0 1 470 0 0 0,15 14,0 735 1 301 65 0,15 7,0 368 158 8
Capping 0,10 21,0 630 0 0 0,10 14,0 420 743 37 0,10 7,0 210 90 5
Excavation 1,00 21,0 5 460 0 0 0,80 14,0 2 912 5 154 258 0,80 7,0 1 456 626 31
Sidewalk Curbst. 7,0 3 500 0 0 Curbst. 6,0 3 000 5 310 266 Curbst. 6,0 3 000 1 290 65
Other Network* 0 0 12 213 611 1 806 90 14 019 701
Water supply 1000 0 0 1000 1 770 89 500 215 11
Drainage 4000 0 0 3000 5 310 266 2000 860 43
Sewerage 2000 0 0 1500 2 655 133 1000 430 22
Communication 400 0 0 400 708 35 200 86 4
Page 97
Arterial Roads - 30m footprint Collector Roads - 20m footprint Collector Roads - 13m footprint TOTAL
m m Birr 1000Birr 1000$ m m Birr 1000Birr 1000$ m m Birr 1000Birr 1000$ 1000Birr 1000$
Total phase 3 - year 4 22 515 1 126 22 077 1 104 11 224 561 55 816 2 791
Roads 16 803 840 14 625 731 7 444 372 38 872 1 944

Asphalt coarse 0,10 21,0 10 500 7 140 357 0,07 14,0 4 900 5 292 265 0,07 7,0 2 450 2 205 110
Base coarse 0,40 21,0 3 150 2 142 107 0,30 14,0 1 575 1 701 85 0,30 7,0 788 709 35
Sub-base coarse 0,20 21,0 1 470 1 000 50 0,15 14,0 735 794 40 0,15 7,0 368 331 17
Capping 0,10 21,0 630 428 21 0,10 14,0 420 454 23 0,10 7,0 210 189 9
Excavation 1,00 21,0 5 460 3 713 186 0,80 14,0 2 912 3 145 157 0,80 7,0 1 456 1 310 66
Sidewalk Curbst. 7,0 3 500 2 380 119 Curbst. 6,0 3 000 3 240 162 Curbst. 6,0 3 000 2 700 135
Other Network* 5 712 286 7 452 373 3 780 189 16 944 847
Water supply 1000 680 34 1000 1 080 54 500 450 23
Drainage 4000 2 720 136 3000 3 240 162 2000 1 800 90
Sewerage 2000 1 360 68 1500 1 620 81 1000 900 45
Communication 400 272 14 400 432 22 200 180 9
Total phase 4 - year 5 15 562 778 3 066 153 16 961 848 35 589 1 779
h Thick. Width UP/ml Length 470 Thick. Width UP/ml Length 150 Thick. Width UP/ml Length 1360
Roads 11 614 581 2 031 102 11 249 562 24 894 1 245

Asphalt coarse 0,10 21,0 10 500 4 935 247 0,07 14,0 4 900 735 37 0,07 7,0 2 450 3 332 167
Base coarse 0,40 21,0 3 150 1 481 74 0,30 14,0 1 575 236 12 0,30 7,0 788 1 071 54
Sub-base coarse 0,20 21,0 1 470 691 35 0,15 14,0 735 110 6 0,15 7,0 368 500 25
Capping 0,10 21,0 630 296 15 0,10 14,0 420 63 3 0,10 7,0 210 286 14
Excavation 1,00 21,0 5 460 2 566 128 0,80 14,0 2 912 437 22 0,80 7,0 1 456 1 980 99
Sidewalk Curbst. 7,0 3 500 1 645 82 Curbst. 6,0 3 000 450 23 Curbst. 6,0 3 000 4 080 204
Other Network* 3 948 197 1 035 52 5 712 286 10 695 535

Water supply 1000 470 24 1000 150 8 500 680 34
Drainage 4000 1 880 94 3000 450 23 2000 2 720 136
Sewerage 2000 940 47 1500 225 11 1000 1 360 68
Power street lighting 1000 470 24 1000 150 8 500 680 34
Communication 400 188 9 400 60 3 200 272 14
Page 98
8.4.3.3.1 Low Assumption

Considering land compensation rate limited to ETB 200/m2, land lease rate can be stabilized at a
moderate level, adopting in the analysis the following rates for specific zones:
 Msb1: ETB 2800/m2
 Msb2: ETB 2300/m2
 Th1: ETB 200/m2 – a low rate in order to let it affordable for medium income households
 Th2: ETB 500/m2
 Th3: ETB 750/m2
Table 8-4 shows the summary of the financial analysis of the public investment at a low assumption.
Table 8-4 – Summary of Financial Analysis using the Low Assumption
Loan Year 1 Year 2 Year 3 Year 4 Year 5

IRR
( ‘000) (‘000) (‘000) (‘000) (‘000) (‘000)
Gross annual balance 5 045 5 045 44 842 127 954 39 204
Financial costs 10 599 10 599 10 599 10 599 10 599
Compensation 4 250 4 250 18 100 30 720 30 720
Financial balance -47 000 -9 804 -9 804 16 142 86 634 -2 115 13%
Duration (in year) 5
Interest rate 5,0%
Loan (million ETB) 47 000
Page 99
Table 8-5 – Business Plan using the Low Assumption

Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL
1000Birr 1000$ 1000Birr 1000$ 1000Birr 1000$ 1000Birr 1000$ 1000Birr 1000$ 1000Birr 1000$
Expenditures*
Infrastructure in Site 17 991 900 17 991 900 41 545 2 077 55 816 2 791 35 589 1 779 168 931 8 447
Roads 12 333 617 12 333 617 27 526 1 376 38 872 1 944 24 894 1 245 115 957 5 798
Other Networks 5 658 283 5 658 283 14 019 701 16 944 847 10 695 535 52 974 2 649
Running Costs 3 760 188 3 760 188 3 760 188 3 760 188 3 760 188 18 800 940
National Staff 2 640 132 2 640 132 2 640 132 2 640 132 2 640 132 13 200 660
Other costs 720 36 720 36 720 36 720 36 720 36 3 600 180
International
400 20 400 20 400 20 400 20 400 20 2 000 100
Support
Profit 3% 540 27 540 27 1 246 62 1 674 84 1 068 53 5 068 253
Studies 5% 900 45 900 45 2 077 104 2 791 140 1 779 89 8 447 422
Total Expenditure 23 190 1 160 23 190 1 160 48 628 2 431 64 041 3 202 42 196 2 110 201 246 10 062
Revenue
Available Building Land per Year 21 250 21 250 90 500 153 600 148 500
Msb1 - m2 3 900 3 900 10 400 25 400 0
Msb2 - m2 4 800 4 800 13 500 34 700 0
Th1 - m2 0 0 0 24 700 0
Th2 - m2 12 550 12 550 66 600 61 900 119 900
Th3 - m2 0 0 0 6 900 28 600
Land Lease
Msb1 - Birr-$/m2 2 800 140 2 800 140 2 800 140 2 800 140 2 800 140
Msb2 - Birr-$/m2 2 300 115 2 300 115 2 300 115 2 300 115 2 300 115
Th1 - Birr-$/m2 200 10 200 10 200 10 200 10 200 10
Th2 - Birr-$/m2 500 25 500 25 500 25 500 25 500 25
Th3 - Birr-$/m2 750 38 750 38 750 38 750 38 750 38
Total Revenue - Land Lease 28 235 1 412 28 235 1 412 93 470 4 674 191 995 9 600 81 400 4 070 423 335 21 167
Msb1 10 920 546 10 920 546 29 120 1 456 71 120 3 556 0 0 122 080 6 104
Msb2 11 040 552 11 040 552 31 050 1 553 79 810 3 991 0 0 132 940 6 647
Th1 0 0 0 0 0 0 4 940 247 0 0 4 940 247
Th2 6 275 314 6 275 314 33 300 1 665 30 950 1 548 59 950 2 998 136 750 6 838
Th3 0 0 0 0 0 0 5 175 259 21 450 1 073 26 625 1 331
Gross Annual Balance* 5 045 252 5 045 252 44 842 2 242 127 954 6 398 39 204 1 960 222 089 11 104
Area Subject to Compensation 21 250 21 250 90 500 153 600 148 500 435 100
ETB/m2 4 250 213 4 250 213 18 100 905 30 720 1 536 29 700 1 485 200 10,0
Financial Fees million ETB 10 599 530 10 599 530 10 599 530 10 599 530 10 599 530 52 996 2 650
*Expenditure does not include compensaton fees / Financial costs
*Gross annual balance does not include financial costs and compensation
Page 100
8.4.3.3.2 Medium Assumption

Considering land compensation rate limited to ETB 500/m2, the following land lease rates adopted
for various zones can help reach financial balance:
 Msb1: ETB 4000/m2
 Msb2: ETB 3000/m2
 Th1: no change
 Th2: ETB 600/m2
 Th3: ETB 900/m2
Table 8-6 shows the summary of the financial analysis of the public investment at a medium
assumption.
Table 8-6 – Summary of Financial Analysis using the Medium Assumption

IRR
( ‘000) (‘000) (‘000) (‘000) (‘000) (‘000)
Financial costs 10 599 10 599 10 599 10 599 10 599
Compensation 10 625 10 625 45 250 76 800 76 800
Financial Balance -47 000 -6 884 -6 884 17 582 102 549 -31 915 13%
Interest rate 5,0%
Page 101
Table 8-7 – Business Plan using the Medium Assumption

Expenditure*
Roads 12 333 617 12 333 617 27 526 1 376 38 872 1 944 24 894 1 245 115 957 5 798
Other Networks 5 658 283 5 658 283 14 019 701 16 944 847 10 695 535 52 974 2 649
Running Costs 3 760 188 3 760 188 3 760 188 3 760 188 3 760 188 18 800 940
National Staff 2 640 132 2 640 132 2 640 132 2 640 132 2 640 132 13 200 660
Other costs 720 36 720 36 720 36 720 36 720 36 3 600 180
International Support 400 20 400 20 400 20 400 20 400 20 2 000 100
Profit 3% 540 27 540 27 1 246 62 1 674 84 1 068 53 5 068 253
Studies 5% 900 45 900 45 2 077 104 2 791 140 1 779 89 8 447 422
Revenue
Msb1 - m2 3 900 3 900 10 400 25 400 0
Msb2 - m2 4 800 4 800 13 500 34 700 0
Th1 - m2 0 0 0 24 700 0
Th2 - m2 12 550 12 550 66 600 61 900 119 900
Th3 - m2 0 0 0 6 900 28 600
Land Lease
Msb1 - Birr-$/m2 4 000 200 4 000 200 4 000 200 4 000 200 4 000 200
Msb2 - Birr-$/m2 3 000 150 3 000 150 3 000 150 3 000 150 3 000 150
Th1 - Birr-$/m2 200 10 200 10 200 10 200 10 200 10
Th2 - Birr-$/m2 600 30 600 30 600 30 600 30 600 30
Th3 - Birr-$/m2 900 45 900 45 900 45 900 45 900 45
Msb1 15 600 780 15 600 780 41 600 2 080 101 600 5 080 0 0 174 400 8 720
Msb2 14 400 720 14 400 720 40 500 2 025 104 100 5 205 0 0 173 400 8 670
Th1 0 0 0 0 0 0 4 940 247 0 0 4 940 247
Th2 7 530 377 7 530 377 39 960 1 998 37 140 1 857 71 940 3 597 164 100 8 205
Th3 0 0 0 0 0 0 6 210 311 25 740 1 287 31 950 1 598
ETB/m2 10 625 531 10 625 531 45 250 2 263 76 800 3 840 74 250 3 713 500 25,0
Page 102
8.4.3.3.3 High Assumption

The land compensation is unchanged from the ones used in the low and medium assumptions.
However, the management of the low-income settlement considers 20% of the population gets land
without any increase of the rate. Assuming that an average of two households will live on the same
plot (Th1 or a division of Th1), it requires 310 units requesting additional expenses of ETB 5.19
million per year.
The rate of low-income households exceeds certainly 20%, but the exercise is just done as an
example in order to show how this "equitable" approach impacts very smoothly the land lease rates.
 Msb1: ETB 4400/m2 – ETB 400 more than the medium assumption = + 10%
 Msb2: ETB 3200/m2 -- ETB 200 more than the medium assumption = + 7%
 Th1: no change
 Th2: no change
 Th3: no change
The quite reasonable realignment of the land lease rates demonstrates the affordability of an
equitable land development.
Table 8-8 – Summary of Financial Analysis using the High Assumption

IRR
( ‘000) (‘000) (‘000) (‘000) (‘000) (‘000)
Financial costs 10 599 10 599 10 599 10 599 10 599
Compensation 10 625 10 625 45 250 76 800 76 800
Financial Balance -47 000 -9 554 -9 554 19 252 114 459 -37 105 13%
Interest rate 5,0%
Page 103
Table 8-9 – Business Plan using the High Assumption

Expenditure*
Roads 12 333 617 12 333 617 27 526 1 376 38 872 1 944 24 894 1 245 115 957 5 798
Other Networks 5 658 283 5 658 283 14 019 701 16 944 847 10 695 535 52 974 2 649
Basic accommodation low income 5 190 260 5 190 260 5 190 260 5 190 260 5 190 260 25 950 1 298
Running Costs 3 760 188 3 760 188 3 760 188 3 760 188 3 760 188 18 800 940
National Staff 2 640 132 2 640 132 2 640 132 2 640 132 2 640 132 13 200 660
Other costs 720 36 720 36 720 36 720 36 720 36 3 600 180
International
400 20 400 20 400 20 400 20 400 20 2 000 100
Support
Profit 3% 540 27 540 27 1 246 62 1 674 84 1 068 53 5 068 253
Studies 5% 900 45 900 45 2 077 104 2 791 140 1 779 89 8 447 422
Revenue
Msb1 - m2 3 900 3 900 10 400 25 400 0
Msb2 - m2 4 800 4 800 13 500 34 700 0
Th1 - m2 0 0 0 24 700 0
Th2 - m2 12 550 12 550 66 600 61 900 119 900
Th3 - m2 0 0 0 6 900 28 600
Land Lease
Msb1 - Birr-$/m2 4 400 220 4 400 220 4 400 220 4 400 220 4 400 220
Msb2 - Birr-$/m2 3 200 160 3 200 160 3 200 160 3 200 160 3 200 160
Th1 - Birr-$/m2 200 10 200 10 200 10 200 10 200 10
Th2 - Birr-$/m2 600 30 600 30 600 30 600 30 600 30
Th3 - Birr-$/m2 900 45 900 45 900 45 900 45 900 45
Msb1 17 160 858 17 160 858 45 760 2 288 111 760 5 588 0 0 191 840 9 592
Msb2 15 360 768 15 360 768 43 200 2 160 111 040 5 552 0 0 184 960 9 248
Th1 0 0 0 0 0 0 4 940 247 0 0 4 940 247
Th2 7 530 377 7 530 377 39 960 1 998 37 140 1 857 71 940 3 597 164 100 8 205
Th3 0 0 0 0 0 0 6 210 311 25 740 1 287 31 950 1 598
ETB/m2 10 625 531 10 625 531 45 250 2 263 76 800 3 840 74 250 3 713 500 25,0
*low-income = 20% of total households (3042) = 610 hh / 2 households per plot = 310 units basic accommodation (rounded)
unit cost = ETB 83700/ Total = ETB 25.95 million / per year = ETB 5,19 million
Page 104
8.4.4 Financial Parameters under Alternative Two
The following assumptions were taken into account while preparing the financial parameters of the
business plan under Alternative 2:
 The project is assumed to be implemented within five years period and accordingly the financial
analysis was prepared for this period. Each year’s quota for infrastructure development is put
based on the phasing exercised that covers the entire NDP area.
 The infrastructure facilities are assumed to be developed through long term loan financing to
be accessed from domestic and foreign banks with the lowest possible interest rate. In this
NDP case, the loan is expected to be repaid in 10 years period with 8.5% annual interest rate.
 Revenue is assumed to be generated through leasing the prepared serviced land. The
prevailing market price per square meter for the specific area is used to estimate lease revenue.
Since the down payment for leasing plot doesn’t exceed 20%, each year’s revenue is assumed
to be 20% of the total land lease value of the entirely leased plot per annum. This is actually
the prevailing practice in most urban centers of the country which adopted and implemented
the land lease system.
 The fixed investment cost i.e. different infrastructure development costs are computed based
on the prevailing unit cost for developing a given facility. Operating costs on the other hand are
also estimated based on the assumptions for running a given UDECOM.
 Infrastructure costs include outlays necessary for development of roads, networks, social
service facilities, housing and other public investments needs.
 Operating cost categories such as wages and salaries, utilities, direct and administrative
overhead and the like are estimated based on the assumptions for running a given UDECOM.
One UDECOM will be composed of 13 technical and administrative staff as will be explained in
later sections of alternative two.
 Different financial viability indicators such as the IRR and NPV are not computed as they are
apparently not commercially feasible at the outset. The revenue collected through leasing the
serviced land every year will not be able to cover the financing need every year for infrastructure
development as the receipt from lease is a one-time 20% (or not exceeding) of the total land
value transferred in that year and the remaining ~80% balance would be settled throughout the
lease period (could be 40, 60, 80 or 90 years).This 20% revenue apparently couldn’t cover the
finance required for roads, network, facilities and other infrastructure developments in that
particular year. This would make the IRRs to be negative (as costs exceed revenues) in the
projected five years period, which would make the project financially not viable though it could
be desirable from economic and social points of view. The result obtained (revenue-expenditure
balance) is actually indicated in the summary table (Table 8-15).
 Computations of roads and phasing of roads, networks and block development which are taken
in alternative one are also used in this alternative.
Based on the above assumptions, the basic expenditure and revenue components are explained
for two different focuses of the public investment; the first focus will be only the roads and
associated networks while the second is on roads and other basic amenities (open spaces, social
facilities, MSE development units, etc.).
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8.4.4.1 Fixed Investment Cost of the UDECOM

The ReUDECOM requires 0.640 million Birr worth of office furniture, equipment and facilities to run
the office.
Table 8-10 – Fixed Cost Estimated to Manage Urban Development Companies
S. No. Fixed Cost category Amount (Birr) Amount (USD)

1 Office Furniture and Equipment 140,000 7,000
2 Vehicle (pickup) 500,000 25,000
Total 640,000 32,000
8.4.4.2 Management Cost of the Urban Development Companies

In its policy documents (the nine policy pillars), the MoUDHC recognized the limited capacity of the
local governments, and their weakness to manage the challenge of the high-speed urbanization in
Ethiopia. Therefore, this NDP suggests the formation of urban development at the local, regional
and federal levels devoted to enhance the performance of these crucial tasks. The structures are
well discussed under chapter 9.
The management costs associated with the Urban Development Company are fixed cost, labor
cost (professional, additional experts and support staff) estimated at ETB 2.06 million and operating
cost amounting to ETB 2.44 million, both calculated on annual basis. Tables 8-10 – 8-12 show the
detail breakdown.
Table 8-11 – Annual Labor Cost Estimated to Manage Urban Development Companies.
S. Monthly
Annual Annual Salary
No. Description Qty. Salary
Salary (ETB) (USD)
(ETB)
1 General Manager 1 35,000 420,000 21,000
2 Executive Secretary 1 2,000 24,000 1,200
Economist or Finance Specialist
3 1 25,000 300,000 15,000
(Team leader)
4 Urban Planner / Architect 1 20,000 240,000 12,000
5 Socio-Economist / Demographer 1 20,000 240,000 12,000
6 Municipal Engineer 1 20,000 240,000 12,000

7 Legal Expert 1 20,000 240,000 12,000
8 Accountant/head 1 15,000 180,000 9,000
9 Human Resource 1 10,000 120,000 6,000
10 Guards 2 1,200 28,800 1,440
11 Janitors 2 1,200 28,800 1,440
Total 13 2,061,600 103,080
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Table 8-12 – Annual Operating Cost Estimated to Manage Urban Development Companies
S. No. Description Amount (Birr) Amount (USD)
1 Material Input (cleaning material, uniform) 15,000 750

Administrative Overhead (telephone, postage, internet,
2 50,000 2,500
stationary and office supplies)
3 Direct Overhead (insurance, municipal cleaning) 10,000 500
4 Repair and Maintenance 12,800 640
5 Utility (water and electricity) Bills 24,000 1,200
6 Fuel and Lubricants 120,000 6,000
7 Salary and Wage 2,061,600 103,080
8 Office Rent 120,000 6,000
9 Miscellaneous 24,000 1,200
Total 2,437,400 121,870
8.4.4.3 Summary of All Costs and Revenue

The following tables summarize all types of costs incurred in the implementation of an NDP putting
into consideration all municipal services, infrastructure and basic amenities proposed in the Plan,
with the assumption of only 20% down payment from lease payments. Accordingly, it is clear to
understand that the total infrastructure cost entailed to develop the NDP site in four phases is
estimated at ETB1.18 billion (59 million USD). The operating cost on the other hand is computed
to be ETB 12.19 million (0.61 million USD).
The total revenue generated in five years would be ETB 423.3 million for the entire lease period
but since only a maximum of 20% would be collected as down payment, the actual lease revenue
generated in four phases will be somehow around 84.66 million birr. This can only cover around
7% of the expenditure required to develop the area, which apparently shows how the lease revenue
cannot finance infrastructure developments expected to be realized in shorter periods as that of
the current NDP.
Therefore, loan would be the preferred mode of financing for such kind of commercially not viable
projects. The government is expected to pay the loan using other revenue sources and considering
this the loan repayment schedule is prepared as depicted in the following tables.
Page 107
Table 8-13 – Compensation and Infrastrcture Development Costs

Total Fixed Investment Cost Year 1 Year 2 Year 3 Year 4 Year 5
Total Total Total Total Total
Unit
Total Cost Total Cost Total Cost Total Cost Total Cost
Public Development Issue Unit Cost
quantity (ETB quantity (ETB quantity (ETB quantity (ETB quantity (ETB
(ETB)
‘000) ‘000) ‘000) ‘000) ‘000)
Housing Development
M2 2,280.0 9,413 21.5 9,413 21.5 49,950 113.9 87,098 198.6 104,940 239.3
(townhouses)
Road Development - - - - -
Arterial Roads - 30m
meter 24,710.0 - - - - 680 16.8 470 11.6
footprint (up to 30m)
Collector Roads - 20 m
meter 15,040.0 1,640 24.7 1,640 24.7 1,770 26.6 1,080 16.2 150 2.3
footprint
Collector Roads - 13 m
meter 9,020.0 - - - 430 3.9 900 8.1 1,360 12.3
footprint
Network Development - - - - -
Water supply meter 833.3 1,640 1.4 1,640 1.4 2,200 1.8 2,660 2.2 1,980 1.7
Drainage meter 3,000.0 1,640 4.9 1,640 4.9 2,200 6.6 2,660 8.0 1,980 5.9
Sewerage meter 1,500.0 1,640 2.5 1,640 2.5 2,200 3.3 2,660 4.0 1,980 3.0
Power / street lighting meter 833.3 1,640 1.4 1,640 1.4 2,200 1.8 2,660 2.2 1,980 1.7
Communication meter 333.3 1,640 0.5 1,640 0.5 2,200 0.7 2,660 0.9 1,980 0.7
Parks/green area development M2 450.0 13,614 6.1 13,614 6.1 13,614 6.1 13,614 6.1 13,614 6.1
Open space, plaza and parking M2 450.0 25,570 11.5 25,570 11.5 25,570 11.5 25,570 11.5 25,570 11.5
Schools (service with 40%
M2 7,500.0 4,147 31.1 4,147 31.1 4,147 31.1 4,147 31.1 4,147 31.1
BAR)
Health center (service with
M2 7,500.0 - 5,532 41.5 - - - - -
75% BAR)
Civic facilities (library, cultural
center, youth center,
M2 7,500.0 2,378 17.8 2,378 17.8 2,378 17.8 2,378 17.8 2,378 17.8
community policing, postal
service
Total Fixed Investment Cost 123.4 164.8 225.3 323.6 344.8
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Table 8-14 – Total Lease Revenue Generated per Year

Year 1 Year 2 Year 3 Year 4 Year 5
Unit Total Total
Source of Total Total Total
Unit Price Total Total Revenue Total Revenue Total Total
Revenue Revenue Revenue Revenue
(ETB) Qty Qty (ETB Qty (ETB Qty Qty
(ETB ‘000) (ETB ‘000) (ETB ‘000)
‘000) ‘000)
Land Lease
MSB
Msb1 M2 2,800 3,900 10,920 3,900 10,920 10,400 29,120 25,400 71,120 0 0
Msb2 M2 2,300 4,800 11,040 4,800 11,040 13,500 31,050 34,700 79,810 0 0
Th
Th1 M2 200 0 0 - 0 0 0 24,700 4,940 0 0
Th2 M2 500 12,550 6,275 12,550 6,275 66,600 33,300 61,900 30,950 119,900 59,950
Th3 M2 750 0 0 - 0 0 0 6,900 5,175 28,600 21,450
Sub total 21,250 28,235 21,250 28,235 90,500 93,470 153,600 191,995 148,500 81,400
20% Down
5,647 5,647 18,694 38,399 16,280
Payment
Table 8-15 – Summary of Costs and Revenue per Year

Expenditure
/Revenue ETB USD ETB USD ETB USD ETB USD ETB USD ETB USD
(‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000)
Expenditure
Infrastructure 123.36 6.17 165 8.24 225.26 11.26 323.61 16.18 344.84 17.24 1,181.91 59.10
Running costs 2.44 0.12 2.44 0.12 2.44 0.12 2.44 0.12 2.44 0.12 12.19 0.61
Total Outlay 125.79 6.29 167.28 8.36 227.69 11.38 326.04 16.30 347.28 17.36 1,194.09 59.70
Lease Revenue/year (20%
5.65 0.28 5.65 0.28 18.69 0.93 38.40 1.92 16.28 0.81 84.67 4.23
down payment)
Revenue Less Expenditure
(120.15) (6.01) (161.64) (8.08) (209.00) (10.45) (287.65) (14.38) (331.00) (16.55) (1,109.43) (55.47)
/year
Capability of revenue to cover
4.49% 4.49% 3.38% 3.38% 8.21% 8.21% 11.78% 11.78% 4.69% 4.69% 7.09% 7.09%
costs in a year (%)
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8.4.5 Source of Financing
8.4.5.1 General Overview

There could be several options for financing NDPs. Different projects of such kind of plans are
usually developed by shared financing mechanisms. The budget burden might be shared among
the public, the private sector joint sources.
Different countries experience and empirical studies conducted on urban finance show that some
tailored financing mechanisms can be especially effective for site specific NDPs which could be
prepared in inner cities, intermediate zones or expansion areas.
Introducing such kind of new and innovative financing mechanisms can in fact ease the financial
burden of a given urban center’s administration. Looking for targeted financing mechanism is
important because a given city/town administration may not be able (interested) to raise such
colossal amount of finance to transform this particular spot of the urban area by subsiding other
urban development projects over the city which are planned and executed by the government.
A given urban center in collaboration with the relevant implementers should negotiate with utility
(agencies) sector offices that provide infrastructure to allocate budget and focus on the NDP area.
In its part through leasing the cleared plots of land, the city administration can collect fees and
finance the provision of infrastructure for which it is responsible and re-housing the people
relocated from the areas to be affected. Different other actors including the business community
and NGOs could in fact make a big difference.
The following sources of finance are examples of the commonly identified ones for such kind of
site specific neighbor development plans.
 Levying Benefit Taxes: In contrast to general-benefit taxes such as fuel taxes levied on all
road users or local taxes in general viewed as a price paid for local collective goods, specific
benefit taxes relate to the specific benefits received by specific taxpayers. Such kind of taxes
are usually recommended for inner city local/neighborhood development plans in the area
where existing settlements are available. Examples include front footage levies or special
assessments on the property tax to pay for sidewalks or street lighting on a specific street 23.
Good practices on this regard are road pricing in Singapore which was launched in 1975 as an
important part of its overall transportation strategy. This was replaced by the Electronic Road
Pricing System (ERPS) in 1998 which is also functional as of now. In this scheme, the user is
required to insert a smart card into the in-vehicle unit (IU) which has been installed in the
vehicle. When the vehicle passes through an ERP gantry, the appropriate charge is deducted
from the smart card. If there is no in-vehicle unit or insufficient funds left in the smart card, the
vehicle license is photographed and a bill sent to the vehicle owner. By this, Singapore was
able to reduce traffic volume into the central business district (CBD) by about 10 to 15 percent
during the ERP operation hours, compared to the earlier scheme. Implementing such methods
in fact require a well-developed financial and IT sector. One can however take this experience
and fit into the specific City’s context using the Country’s/city’s own level of development
(example: use tickets instead of smart cards).
23 UN Habitat (2009). Guide to Municipal Finance. United Nations Human Settlements Programme 2009. Nairobi.
www.unhabitat.org.
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 Mobilizing Private Capital: It is true that major infrastructure requires cities to make significant
capital expenditures and own sources (taxes, user fees, and intergovernmental transfers))
might not be adequate enough to do so. For this reason, urban centers may also want to access
private capital. In such occasions, long term borrowing, public-private partnerships and direct
charges (such as development charges) on developers can provide needed funds to pay for
infrastructure. Even though the overall experience of mobilizing private capital has been
disappointing in developing countries like Ethiopia (because of the risks involved for both the
public and private sectors), urban centers of the Country should try their best to access funds
from these sources for their NDPs.
 Tax Increment Financing (TIF): this is a financing mechanism used by cities in most states in
the U.S. to revitalize blighted urban areas, generally in the downtown core (UN Habitat, 2009).
So such financing mechanisms are the tailored ones most inner city parts of the country’s urban
centers. Here is how TIF works: Cities designate a TIF area for capital improvements and then
earmark any future growth in property taxes to pay for investments in infrastructure and other
economic development initiatives. The rationale behind TIF districts is that revitalization can
have a positive impact on urban quality of life and future tax revenue. TIF districts are often the
beneficiaries of federal and state grants and tax incentives in American cities cases. These
additional sources of funds have actually helped then in achieving most cities revitalization
objectives.
 Land Value Capture Taxes: Land value capture taxes (also called land value increment taxes,
betterment levies, special assessments, and valorization taxes) are levied to capture the
increment in land value attributable to public investment. Land value capture taxation has
generally been proposed in situations where the public sector is contemplating a major
infrastructure investment that increases the value of adjacent land (such as a new subway,
highway exchange, school, park, or other public infrastructure). This is typically imperative in
the case where multi-modal transport hub development takes place. It is obvious that an
investment of this nature requires a large capital outlay immediately but the benefits will not be
enjoyed for several years in the future (UN Habitat, 2009). The tax is designed so that the costs
incurred in the current period are shared among future beneficiaries. The decision of the public
sector to construct major infrastructure results in a windfall gain to owners of property nearby.
For example, a subway increases demand for housing and offices on properties located near
it. Given normal demand and supply conditions, an increase in demand will result in higher
prices being charged for these properties. Moreover, zoning changes often accompany
investment in infrastructure: increased densities permitted along the subway line, for example,
will result in increased land values. A land value capture tax is a way for the public sector to tax
some or all of the windfall gain that it has created.
The above spotted sources are just examples of innovative financing mechanisms practiced across
different countries for realizing such kind of area specific development plans. Urban center
adminstrations hence need to explore different tailored and innovative ways of financing to
implement their NDPs.
8.4.5.2 Source of Finance used for the Current NDP Business Model under Alternative 2
Coming to implementation of the current NDP, loan financing is opted as a major source of fund
due to the nature and scale (massiveness) of the project. Most embodied proposals indicated on
the NDP that are expected to be developed by the government are not financially feasible (though
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sound from social and economic points of view) which thus be less attractive for private developers.
Therefore long term bank loan financing would be the right choice for realizing different NDP
projects. Loan (which makes up the major share of investment needs particularly in PPP projects)
refers to borrowed capital from banks and other financial institutions, and capital market.
This source of finance should thus be a dedicated for the implementation of SP/NDPs and not for
other purposes/development activities. The loan will first be accessed by the FeUDECOM (through
MoFED) which will then be directed to the ReUDECOMs. The ReUDECOMs will then manage the
budget dedicated to the cities under their own control.
Prior to looking or opting for loan financing, the first choice considered for development was lease
revenue which was not found adequate enough to implement all the projects in the NDP. As the
country’s land lease law (proclamation Number 721/2011) dictates the total value of a leased
land/plot shall not be collected at once but throughout the agreed lease period. Though the amount
of down payment shall be determined in accordance with the prevailing factors of a given region or
the city administration, it may not be generally less than 10% of the total lease amount of the urban
land. However, from the current practice of different urban centers in the country, it can be seen
that the down payment ranges somehow between 20 to 30%. As per the proclamation, the
remaining balance of the lease amount shall be paid on the basis of equal annual installments
during the payment term. This apparently depicts that the entire revenue will not be collected at
once and thus the profitability of leasing plots should be evaluated from the long term perspective
and from the socio-economic benefits they bestow to the advancement of the area and the
community. With this milieu, it should also be clear that the revenue/profit generated apparently
cannot cover the development and running costs of the SP and NDP projects. The loan to be
accessed must be of long term with low interest rate to turn the projects financially viable. Due to
this, the running costs of the FeUDECOM and ReUDECOMs are expected to be covered by the
federal and respective regional governments through a regular budget.
Accordingly, the common forms of loan (UNESCAP, 201124), which could be accessed by Bahir
Dar NDP include:
 Commercial loans: these are lent by commercial banks and other financial institutions;
 Bridge finance: a short-term financing arrangement (say for the construction period or for an
initial period) which is generally used until a long-term (re)financing arrangement can be
implemented;
 Bonds and other debt instruments (for borrowing from the capital market): these are long-term
interest bearing debt instruments purchased either through the capital markets or through
private placement;
 Subordinate loans: these are similar to commercial loans, but they are secondary or
subordinate to commercial loans in their claim on income and assets of the project. These are
specifically to promote PPP arranged developments and accordingly governments often
provide subordinate loans to reduce default risk and thereby reduce the debt burden and
improve the financial viability of the projects; and
 Special infrastructure financing institutions can be another source of debt finance. Many
countries have established such institutions to meet the long-term debt financing needs of their
24 UNESCAP (2011), A Guidebook On Public-Private Partnership In Infrastructure. Economic And Social Commission
For Asia And The Pacific (UNESCAP), Bangkok,2011.
Page 112
infrastructure sectors. Public-private partnership projects awarded to private companies

receive priority for financing from such institutions. Another important role that these financing
institutions play is refinancing of private sector projects initially financed by banks, which find
long-term financing for infrastructure projects difficult.
Other sources of finance apart from loans include equity and government grants. Equity refers to
the capital invested by the sponsor(s) of the project and others. The main providers of equity are
project sponsors, government, third party private investors, and internally generated cash.
Government grants can be made available to make NDP projects implemented through PPP
modalities to make the projects commercially viable, reduce the financial risks of private investors,
and achieve some socially desirable objectives such as to induce growth in a backward area. Many
governments have established formal mechanisms for the award of grants to PPP initiated
development projects.
Having the aforesaid milieu i.e. source of finance being long term loan for realization of
infrastructure projects of Bahir Dar NDP, loan repayment schedule is prepared via taking into
account the following assumptions as illustrated in Table 8-16.
 Bank loan interest rate: 8.5%
 Loan to be repaid: each year’s loan in 10 years
 Total number of annual principal payments: 10 for each year loan
 Amount of Loan taken per year
o Year 1: ETB 123.36 million
8.4.6 Short Appraisal of the Two Alternatives
It was briefly stated in previous sections that favoring for one of the discussed alternatives requires
meticulous evaluation of the country’s socio-economic, cultural and political setup as each of the
options have their own advantages and drawbacks. The country’s current set-up seemingly favors
alternative two for infrastructure provision with a public good nature. This would enable effective
realization of the NDP proposals with the existing frameworks though it puts the government under
huge financial strain, need for qualified and dedicated personnel as well as bearing of enormous
responsibility.
Letting the private sector in delivering infrastructure facilities with public good nature in the country’s
current context apparently requires a number of preconditions in terms of such as legal,
institutional, cultural and political senses. It has however advantages of shared responsibility,
finance, efficiency gains, better services and the like provided that the necessary preconditions are
met.
To conclude, alternative two is found to better fit with the country’s current context and thus
recommended commencing implementation of the NDP proposals with this scenario. The role of
the private sector in provision of such facilities should be gradual via preparing the necessary
platform to achieve the required goals.
Page 113
Table 8-16 – Loan Repayment Schedule
Outstanding Balance 123.36 111.02 98.69 86.35 74.01 61.68 49.34 37.01 24.67 12.34
Phase Principal (Annual)
12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34
I Payment
Interest Payment
10.49 9.44 8.39 7.34 6.29 5.24 4.19 3.15 2.10 1.05
(8.5%)
Principal (Annual)
Phase 16.48 16.48 16.48 16.48 16.48 16.48 16.48 16.48 16.48 16.48
Payment
I
Interest Payment
14.01 12.61 11.21 9.81 8.41 7.01 5.60 4.20 2.80 1.40
(8.5%)
22.53 22.53 22.53 22.53 22.53 22.53 22.53 22.53 22.53 22.53
II Payment
Interest Payment
19.15 17.23 15.32 13.40 11.49 9.57 7.66 5.74 3.83 1.91
(8.5%)
32.36 32.36 32.36 32.36 32.36 32.36 32.36 32.36 32.36 32.36
III Payment
Interest Payment
27.51 24.76 22.01 19.25 16.50 13.75 11.00 8.25 5.50 2.75
(8.5%)
34.48 34.48 34.48 34.48 34.48 34.48 34.48 34.48 34.48 34.48
IV Payment
Interest Payment
29.31 26.38 23.45 20.52 17.59 14.66 11.72 8.79 5.86 2.93
(8.5%)
Total Annual Payment
in four phases
Principal 12.34 28.82 51.35 83.71 118.19 118.19 118.19 118.19 118.19 118.19 105.86 89.37 66.84 34.48
Interest 10.49 23.45 40.15 63.29 85.48 75.44 65.39 55.35 45.30 35.25 25.21 16.21 8.61 2.93
Total 22.82 52.27 91.49 146.99 203.68 193.63 183.58 173.54 163.49 153.44 131.06 105.58 75.46 37.42
Page 114
9 Project Implementation Scheme
An efficient project management relies on a significant strengthening of the capacity building at

regional and federal levels as well as on an in-depth reshaping of legal frameworks, which this
chapter tries to pinpoint the important ones.
9.1 Capacity Building and Institutional Arrangements
9.1.1 Urban Planning Capacity
The next ten years are the most critical in the Ethiopian urban planning realm, which requires
remarkable number of professional staff in the fields of urban planning, municipal engineering and
architecture. Even though, universities and capacity building institutions produce large volume of
graduates, the load of work in the domain requires a good track record and no doubt that this period
will be a perfect training ground for juniors under close supervision of experts with prominent
experiences.
Figure 9-1 – Main Tasks to be Performed under the New NDP Model
Page 115
Figure 9-2 shows the schedule of urban planning (Structure Planning, Strategic Planning, Basic
Plans and NDPs) works for the coming 10 years. These appear to be full time job for 90 planning
firms functioning in the country.
Figure 9-2 – A Tight Schedule for the Next Ten Years
City Categories 15 16 17 18 19 20 21 22 23 24 25 Comments
≥ 100,000p.
30
Structural / Strategic
Cities
Plans
Urban planning firms 90
100,000> ≥ 50,000p. Strategic Plans
Cities 15 15
Urban planning firms 30 30
50,000> ≥20,000p. Strategic Plans
Cities 45 45 45 45
Urban planning firms 60 60 60 60
20,000> ≥ 2,000p.
Number 80 80 150 150 150 Basic Plans
Urban planning firms 30 30 90 90 90
Studies start for the
SP 2025 / 2035
ASSUMPTIONS
1. 90 urban planning firms dedicated to those tasks
2. 2025 – around 850 cities shared out into:
3. 2025 – around 30 cities ≥ 100,000p. = 3 phases of implementation = 9 years
4. 2025 – around 30 100,000> cities ≥50,000p. = 2 phases of implementation = 7 years
5. 2025 – around 180 50,000 > cities ≥ 20,000p. = 1 phase of implementation = 5 years
6. 2025 – around 610 20,000 > cities ≥ 2,000p. = Basic Plan = 2 years of implementation
Slide 2
9.1.2 Project Management for NDP Implementation
Having the right institutional arrangement for implementing the proposed NDP would help much for
properly realizing the contained proposals. Need for the right institutional arrangement emanates
from the fact that the NDP under consideration has complex issues to address with a simultaneous
need to make it competitive enough with comparable cities and towns of the world. It thus entails
intensive resource, coordination and commitment to realize the embedded proposals.
So far, no institution particularly committed for implementation of the NDPs has been established,
which quite necessitates at the moment for setting-up a specific structure for preparation and
realization of NDPs. Different countries experience shows that establishing urban development
companies will result in a desirable outcome.
The major aim of introducing the UDECOM notion is to bring efficiency in urban plan preparation
and implementation. The ‘UDECOM’ formation is in fact a new concept, an entity which shouldn’t
be under a given City Administration as a department or division as learnt from international
experience. Running such entity usually demands manpower composition with extraordinary skill
and dedication which would apparently difficult to get such piece from the Country’s municipalities.
It should indeed be separate from the day to day routine activities of municipality and focus in
serviced land development, financial mobilization, capacity building, NDP/Structure plan
preparation, contract administration, implementation supervision, and the like.
International experience witnesses that UDECOMs are proved to be effective in soliciting
finance/fund mobilization from different sources (NGOs, government budget, the private sector)
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and executing it in an efficienct manner, undertaking capacity building tasks, liasoning with different
stakeholders (city administrations, consultants, universities, sector offices, financiers, etc),
lobbying, land development, tailored plan preparation and implementation (through outsourcing,
contracting, etc) and the like.
The institutes to be established will have three tiers: one at the Federal level (Federal Urban
Development Company- FeUDECOM) and the second at the regional levels (Regional Urban
Development Company- ReUDECOM) and third at urban cluster levels (UDECOM)..Accordingly,
there will be one Federal UDECOM (FeUDECOM), 11 Regional UDECOMs (ReUDECOMs) under
FeUDECOM and lastly 24 UDECOMs. The federal one (FeUDECOM) manages the 11
ReUDECOMs, each of which will be established in the 9 regions and 2 City Administrations of the
country. These 11 ReUDECOMS will in turn oversee UDECOMS to be established under their
respective jurisdictions by making up urban cluster of 1 million population.
MoUDH is expected to be the regulatory body both for the Federal and Regional and Urban cluster
urban development companies as structured out in the ensuing figure (refer Figure 9-3).
9.1.2.1 The Urban Development Company

The Urban Development Company (UDECOM) which will be established by clustering urban
centers of one million population will be a private institution (under Alternative 1) or a quasi-private
institution (under Alternative 2) under the auspices of the respective ReUDECOM. It is formed to
bridge the capacity gaps of the urban planning institutions of the urban centers and the regional
governments. Several issues under consideration include the following:
 UDECOM’s team aims to manage the design and the implementation of the Structure and
Strategic Plans through various NDPs;
 Several units are required for the whole country. The assumption is that one UDECOM is able
to cover several urban entities gathering all together one million inhabitants. It means that, the
running cost applied for one city, are adjusted in proportion to the population forecasted at the
end of the SP validity period. On this basis, 24 Urban Development Companies (UDECOM) are
needed;
 The yearly cost of one unit must remain moderate ranging between ETB 3.7 million per annum
(under private setup) and ETB 2.44 million (under the suggested quasi-private arrangement).
Each unit will consist of experts with a multi-disciplinary background;
 Regarding the financing of the SP/NDPs implementation, city administrations cannot be the
beneficiary of the loan; rather UDECOM will manage the budget dedicated to the design and
implementation of NDPs under its own control;
 To give guarantee for proper loan management, in collaboration with the Ministry of Finance
and Economic Development (MoFED). Therefore, such an arrangement requires a federal
representation, which can be the Federal Urban Development Company under the Rederal
Urban Development Company;
 The issue of covering running costs of a unit depends on the set-up structure. If UDECOM will
be a private one, then the profit of the structure which is assessed to around 3% of the amount
of the infrastructure works within the NDP site will be used to cover the running costs of the
UDECOM and partly of the ReUDECOM and FeUDECOM. If the unit will be a quasi-private
one as suggested by the study team, then it will be a government financed company with annual
budget to cover its operating expenses.
 Beside the task of supervision of the work done by the professional firms, the UDECOM will
organize the expression of interest for land development, it means:
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o Bidding for the engineering firms (detailed design of the NDPs)

o Expression of interest and bidding for the land developers
o As representative of the City Administration, endorsing the works
The UDECOMs to be established at this stage should be aided by advisory boards organized.
Representatives of the advisory board should be assigned from the major urban centers in the
urban cluster of 1 million population and the board should at least be composed of the ensuing
members:
 Community representatives (for echoing the public interest);

 The business community (for participating in the development of a given area);
 Universities (for technical support, knowledge transfer, capacity building);
 Political leadership (for soliciting support from such as political councils, financial institutions,
etc)
 Municipality/ technical division (it could be the mayor, city manager or chief planner, etc) for
different facilitation works;
 Zone/woredas representatives for small tows (ex: one representative for a number of level 4 or
5 small towns) and Town representatives for major cities (ex: regiopolice city). These would
mainly engage in awareness creation, preparatory works, etc for NDP preparation and
implementation in their respective areas.
The brief role of an advisory board should be provision of the necessary support/feedback to the
UDECOMs by serving as a voicing and negotiation platform for different stakeholders. It wouldn’t
thus have a decision making stake in the functions of a given UDECOM. Position of the Advisory
committee will be horizontal with the UDECOM.
9.1.2.2 The Regional Urban Development Company

The concept of a Rederal Urban Development Company (ReUDECOM) is based on the following
assumptions:
 The FeUDECOM will be the regulatory body for the ReUDECOM;
 Like the UDECOM, the ReUDECOM will act as either a private or quasi-private company, which
requires a financial autonomy;
 It consists of 12 supervisors, with the profile of urban development specialist (a multi-
disciplinary profile);
 All UDECOMs are within the sphere of responsibility of ReUDECOM.
 The tasks of the ReUDECOM might be summarized as the following:
o Accepts UDECOM reports on a regular basis;
o A lot of governmental institutions are involved at different levels in the design and
implementation of city plans. That will lead regularly to debates, mediated by the
ReUDECOM. As its main task, each supervisor of ReUDECOM will (i) inform the
stakeholders at the regional level and (ii) facilitate progress of the works by breaking
deadlocks;
o The ReUDECOM will check the validity and compliance of the actions performed at
urban cluster level with the legal framework, in terms of designing and contract
administration (private firms in real estate development); and
o The ReUDECOM will report once a month to the FeUDECOM.
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9.1.2.3 The Federal Urban Development Company

The concept of a Federal Urban Development Company (FeUDECOM) is based on the following
assumptions:
 The MoUDH will be the regulatory body;
 FeUDECOM will act as either a private or quasi-private company, which requires a financial
autonomy;
 It consists of 12 supervisors, with the profile of urban development specialist (a multi-
disciplinary profile);
 ALL ReUDECOMs are within the sphere of responsibility of FeUDECOM; and
 The tasks of the FeUDECOM might be summarized as the following:
o Accepts ReUDECOM reports on a regular basis;
o FeUDECOM oversees and closely assists the activities of ReUDECOMs
o The FeUDECOM will check the validity and compliance of the actions performed at
regional level with the legal framework, in terms of monitoring and assisting the activites
of ReUDECOM while designing and contract administration (private firms in real estate
development); and
o Build capacity of ReUDECOMs through such as providing trainings, preparing working
manuals, etc.
o The FeUDECOM will report once a month to the Minister.
9.1.3 Synthesis
The following figure (Figure 9-3) summarizes the essential tasks and links previously described.
Figure 9-3 – Organizational Structure for UDECOMs
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The relationship between Federal, Regional and Urban cluster level urban development companies
is singled out from Figure 9-3.
Figure 9-4 – Relationship between FeUDECOM , ReUDECOM and UDECOMs
1 FeUDECOM
Federal Urban Development
Company (FeUDECOM)
1
1
R
Regional Urban Regional Urban e
Regional Urban Regional Urban
Regional Urban Development Development U
Development Development D
Development Company Company
Company Company E
Company (ReUDECOM) (ReUDECOM)
(ReUDECOM) (ReUDECOM) C
(ReUDECOM) O
M
Urban Development Urban

Urban Development Development Advisory Boards
Company
Company Company
(UDECOM)
(UDECOM) (UDECOM) 24 UDECOMs
Urban Development Urban

Urban Development Development
Company
Company Company
Advisory Boards (UDECOM)
(UDECOM) (UDECOM)
All the Federal, Regional and Urban cluster level urban development companies (FeUDECOM,
ReUDECOM and UDECOMs) will act as quasi-private companies (as suggested), which require
financial autonomy. The government involvement is necessary and required because many
infrastructure projects which are planned in the NDPs have long gestation periods, and often are
not financially viable on their own. In such cases, feasibility studies may reveal that a project may
not be commercially viable or attractive to private investors but are economically and socially
desirable from long-term considerations. Consequently, implementation of commercially unviable
projects is not possible without government support. Government support may also be crucial in
the early years of PPP development in a country or in an untested PPP market. Without sufficient
government support, the private sector may not take much interest in such situations.
Coming to Abay Mado NDP, most projects to be accomplished have a public good/service nature
which may not interest private developers. As contained in the proposals, the projects involve
construction and development of roads of different size and length (arterial, collector, feeder),
networks (water supply, drainage, sewerage, street light), social service facilities (schools and
health facilities, youth centres, cultural centres, etc), public offices and the like which have a public
good/service nature. Massive government involvement is thus imperative which in turn entails
establishment of a quasi-private urban development companies both at federal and regional levels.
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These companies will have budgets for their expenses from the government and will not totally act
as a private entity which will be administered by its own profit. Brief assumptions for each entity are
summarized in the following table (Table 9-1).
Table 9-1 – Assumptions for the Establishment of Urban Development Companies
Federal and Regional Urban Development Company Urban level Urban Development Company
 Both the Federal and Regional Urban Development Companies  This structure acts as a private or quasi-
act as a private/quasi-private (opted) company with the MoUDH private (preferred) one under the respective
at the top (regulatory body of ReUDECOM) and under the City Administration control.
Federal, there will be urban cluster level UDECOMs.  The unit aims to manage the design and the
 Both the Federal and each of the 11 Regional ones Consist of implementation of the structure plan and the
12 supervisors who will be urban development specialists (a NDPs.
multi-disciplinary profile).  The number of UDECOMs to be formed will
 One supervisor of the Regional UDECOM is expected to be 24. This is based on the assumption that
monitor/supervise two urban cluster level urban development one unit is able to cover several urban
companies (ReUDECOMs). The Federal UDECOM oversees entities gathering in all one million
the Regional UDECOMs. inhabitants. It means that, the running cost
 The tasks of the ReUDECOM might be summarized as follows: applied for one city, are adjusted in
proportion to the population forecasted at the
o Regularly monitoring activities and performances of the end of the Structure Plan validity period.
UDECOMs at urban cluster level.
 One UDECOM is composed of at least 13
o Coordinate the overall implementation process of NDPs
staffs including technical (6) and
o It is known that different institutions involve in the administrative/support wings (7).
implementation of NDPs which quite entails rigorous
 Apart from the task of supervising the work
coordination. Each supervisor in this regard is thus
done by different professional firms (of
expected to facilitate the NDP activities via negotiating and
construction, consultancy, etc), the
informing the concerned authorities.
UDECOM shall have other duties in relation
o Check the validity and the compliance with the legal to land development.
framework of the actions performed at the regional levels
o This may include bidding for the
in terms of planning (SPs/NDPs), preparation and
engineering firms (detailed design of the
organizations of expression of interest and of bidding
NDPs), preparing and organizing
enterprises in charge of the infrastructure works and land
expressions of interest and handling the
developers involved in the city- and block- designs.
bidding process for the land developers and
o Conduct post-implementation follow up and monitoring evaluation/acceptance of the works done.
9.2 Monitoring and Evaluation (M&E) Activities

A monitoring and evaluation system enables local stakeholders to learn from the past experiences.
Monitoring is the continuous assessment of achievements while evaluation is a periodic assessment of
the relevance, performance, efficiency, and impact of the NDP strategy.
Monitoring and evaluation is usually consists of process review examining implementation quality and
their outcome review assesses program results. M & E is also based on indicators of inputs (financial
and physical resources used), outputs (goods and services generated with the inputs), outcomes (use
of and satisfaction with outputs) and impact (ultimate effects of the NDP strategy on economic growth,
decent work opportunities and social conditions). Within this milieu, the NDP project needs to be
monitored and evaluated.
The designed NDP project should involve the two basic approaches of monitoring (performance and
process). The purpose of Performance Monitoring is to assess the extent to which project inputs are
being used in accordance with the approved budget and timetable and whether the intended outputs
are being produced in a timely and cost-effective manner. It may also assess whether project benefits
are reaching the intended population groups. This type of monitoring is basically intended to improve
Page 121
project supervision, and it is essential that management receive constant feedback on key indicators of
project performance so that problems can be detected and corrections made. On the other hand, the
purpose of process monitoring is to provide feedback to management on the efficiency and
effectiveness of the project delivery system. Two areas of particular importance are the analysis of how
the project is perceived by, and actually operates at the level of, the intended beneficiaries; and the
effectiveness of the communication and organizational linkages between the implementing agencies
and beneficiaries. The speed and costs of the delivery system and the quality of the outputs are
measured, and where possible a comparison is made with alternative approaches.
Certain steps are usually followed in formulating performance and process monitoring schemes. In
performance monitoring, first projects have to be subdivided into major physical, financial and social
features; second, they have to be prioritized and phased; third, there is a need to determine the required
staffing for the monitoring unit according to the project composition, scope and the required tasks to be
performed; fourth, the necessary charts should be designed for physical progress and forms for budget
control and fifth a set of financial monitoring forms (indicating budgets, cost variations, etc) have to be
prepared. Finally, performance monitoring reports have to be generated following the above steps and
collecting the necessary data.
On the other hand, process monitoring can be conducted through periodic studies (such as quarterly
progress reports), inspection of projects, review of physical and financial progress reports, and through
preparing monitoring status reports.
NDP projects commonly have a number of integrated socio-economic, physical and environmental
plans which require evaluators to have a clear understanding of each project component. Evaluators
are expected to conduct a series of in-depth interviews with central and field-level project administrators
at the start of the process as opposed to relying on intervention blueprints, as it might be a broad
diversion during the implementation process (Field et.al, 2007)25.
9.3 Legal Framework
9.3.1 Amendment of Proclamation Number 574/2008
The known legal framework for realization of local development plans in the country is Proclamation
number 574/2008. Based on the proclamation, the first thing to do is approving local plans to make them
legally binding. This proclamation however requires amendment for the proposed NDP to be
implemented. Parts of the proclamation, which require modification are shown in the ensuing figure
(Figure 9-5).
9.3.1.1 Immediate Impact on the Proclamation 574/2008

Parts of proclamation no. 574/2008 which require immediate amendment includes:
 Article 8: which discusses about types of urban plans
 Article 9: definition and content of the Structure Plan
 Article 11: Position, role and content of NDP
 Article 12: implementation period
 Others: Additional articles focusing on efficient interaction between institutions – between urban
public utilities should also be amended accordingly.
25 Field, Erica and Kremer, Michael (2006). “Impact Evaluation for Slum Upgrading Interventions” Manuscript, Harvard
University, January 2007.
Page 122
Figure 9-5 – Parts of Proclamation 574/2008 that Require Modification
9.3.1.2 Immediate Impact on Urban Planning and Engineering Firms

 The SP design requires more details essentially in terms of implementation schedule, costs and
financing’
 The team will set up the detailed Land Use Plan (LUP) of the city, which becomes part of the SP for
cities with population less than or equal t 100,000 inhabitants (about 90% of the cities in the country
fall in this category);
 The NDP becomes NDPh (Neighborhood Development Phase) as a link to the implementation
schedule of the SP; and
 The NDPh is performed at a simple feasibility level. After approval of the SP, the NDPh is handed
over to engineering firms entitled to carry out the detailed design before implementation.
9.3.2 Amendment of proclamation No. 721/2011
There is a need to review Proclamation No. 721/2011 (Urban Lands Lease Holding Proclamation),
article 20 sub article 2 which states about the amount of down payment to be determined. The sub
article states that any given region or city administration may determine down payment not less
than 10% of the total lease amount of the urban land. But most urban centers of the country
customarily take this 10% as the finally decided one /defacto for down payment consideration and
it often reaches 20% in a considerable number of bigger urban centers which adopted and
implemented the land lease system. This proportion however is quite small compared to the
Page 123
financial resource entailed to carry out different urban development tasks in specific area where
lease revenue is generated, justifying for the need to increase the size of down payment
significantly (more than 50%). This in turn requires revisiting the lease proclamation and the
pursuing regulations enacted to implement the proclamation.
9.3.3 Monetary Policy Review
The current minimum interest rate for bank loan acquisition in the country is 8.5% which is charged
by Development Bank of Ethiopia. International practices however depict that minimum interest
rates (5% or less) usually attract the private sector to engage in a kind of the NDP type projects
which entail huge financial resource that can be implemented through PPP modalities. As stated
before, this calls for monetary policy review of the Country as there is no such interest rate (or not
allowed per se) for loan extension among financial institutions functioning in the nation.
9.3.4 The Ethiopian Cities Sustainable Prosperity Goals (ECSPG)
Harmonization is required between this proposal and the ECSPG and particularly six of the eleven
pillars engraved on ECSPG. These pillars, which need harmonization, include (i) Resilience, (ii)
Integrated Urban Infrastructure, (iii) Good Governance, (iv) Urban Development Policy, (v) Urban
Housing Provision, and (vi) Urban Plan Preparation and Implementation Strategy
9.3.5 Framework for PPP and UDCOM
Public private partnership (PPP) modality is one potential mechanism to be exploited for effective
realization of the NDP proposals. If this should be tapped, the necessary legal framework should be
designed to effectively regulate a given service provider to ensure that services provided reflect the
adequate level and meet the desired standard or quality. With the absence of regulatory mechanisms,
PPPs could involve several risks. According to UNESCAP (2011), the main risks involved for which the
necessary regulatory framework to be in place to minimize/eliminate the risks include: (i) excessive
tariff; (ii) inadequate service level and quality; (iii) non-compliance of contractual obligations to users,
government or other parties; (iv) low efficiency in production and in the provision of goods and services;
(v) inadequate level of investment in the sector; and (vi) frequent discontent between the parties
involved.
The powers to regulate PPPs are provided in the relevant legal instruments, statutory rules,
concession/contract agreements, and other applicable documents. The MoUDHC will be the right
institution for the country’s case for preparing and placing the regulatory system for the different PPP
arrangements.
Similarly, establishment of the FeUDECOM ReUDECOMs and Urban Cluster level UDECOM also
require legal backing.
9.3.6 Other Regulatory Mechanism
In addition, any relevant existing legal framework should be used and taken into consideration
during the implementation process in order to use enforcement laws and to be transparent. These
may include: relocation, incentives and compensations payment, building permit, land
readjustment, dispute resolution, etc. The use of these legal frameworks makes the implementation
process easier and legitimate.
Page 124
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Page 126
Appendices
A.1 Appendix 1: Checklist for Design Components
NDP/UDP
Inventory/Checklist for 12 Urban Centers/Defining Components of Design Process
[Data Collection] Site elements/information from field work
Goal:
1 Identify site elements
2 Analyze these factors in relation to client needs
3 Establish key issues
4 Define NDP Design program
Key
Input/Status
1.0 NATURAL FEATURES
1.1 Topography
Slope analysis
Gradient, land form, elevation spots, natural drainage pattern
1.1.1
2m contour interval
Map [scale 1:2000]
1.2 Geology
Geomorphology
Soil characteristics and land degradation (erosion susceptibility
1.2.1 bearing capacity, moisture, etc.)
Natural hazards (seismic movement, landslides, flooding, etc.)
Map [scale 1:2000]
Hydrology
Ground water (water table, aquifer etc)
1.2.2
Surface water( springs, stagnant waters etc)
Map [scale 1:2000]
1.3 Flora and Fauna
Flora
1.3.1 Type and coverage, location, (indigenous trees)
Map [scale 1:2000]
Fauna
1.3.2 Species (aquatic life), birds etc;
Map [scale 1:2000]
1.4 Climate
Temperature (minimum and maximum)
1.4.1
Brief description and map [scale 1: 2000]
Rainfall and precipitation, humidity,
1.4.2
Wind direction and intensity
1.4.3
Solar intensity, sunshine hours, orientation,
1.4.4
1.5 Aesthetics Factors (Urban Design Components)

1.5.1 Views/perceptual
Spatial patterns (urban fabrics)
Placement from and to site, potential for new development,
1.5.2
relationship/integrity, outdoor/indoor activities (social interaction)
Map [scale 1:2000]
2.0 MAN MADE FEATURES
2.1 Utilities
Sanitary, water supply (reservoir location), solid waste, electrical
network/alignment
2.1.1 Availability, distribution and service coverage, characteristics of
network (age, type, design/layout etc.),
Brief description and map [scale 1:2000]
Future expansion/project of same
2.1.2
2.2 Land Use
Classification
Use(at parcel level)and distribution (residence, service, green, open,
2.2.1
etc)
Map [scale 1:2000]
Zoning restrictions
2.2.2 Relation with adjacent site
Map [scale 1:2000]
Easement
2.2.3 Sanitation, road expansion, etc
Map [scale 1:2000]
2.3 Circulation and Mobility (Movement Networks)
Links and junctions
2.3.1
Map [scale 1:2000]
Overlay systems
Footways, roadways, pathways, cycle ways, push and animal drawn
2.3.2
cart ways, public transit
Map [scale 1:2000]
Type
Characteristics, load, traffic volume, linkages/networks, pattern of
2.3.3
movement
Map [scale 1:2000]
2.4 Historic Nodes/Cultural Heritage
Type, Location, network, landmarks, size, condition, building types,
2.4.1 purpose interaction
Map [scale 1:2000]
2.5 Social Services
Education, health, recreation, religious (worship), sport facilities, post
2.5.1 office, cemetery, public centers (kebelle), etc.
Map [scale 1:2000]
Size, capacity, linkages, location, and quality of service
2.5.2
Map [scale 1:2000]
2.6 Economy
Shops, markets, economic potential activities
2.6.1
Type, size, accessibility/network, location, accommodation capacity,
2.6.2 commodities, hierarchical standards,
Urban finance (revenue and expenditure -kebelle)
2.6.3
2.7 Housing: [High, Medium and Low]
Ownership and typology
2.7.1
Map [scale 1:2000]
Building morphology Arrangement/patterns/relationships,(with plot &
2.7.2 street)
Map [scale 1:2000]
Building materials
2.7.3
Map [scale 1:2000]
2.8 Open Spaces[Hierarchies]
Squares, markets, open ceremonial/religious spaces
2.8.1
Map [scale 1:2000] and sketches (freehand)
Parking areas, public transit stops/stations, street corridors,
2.8.2
Signage and public furniture
2.8.3
Administrative Facilities [Police, municipal offices, kebele offices,
2.9
fire stations, etc.]
Type, location, size, functions, connectivity, relationships, etc.
2.9.1
Map [scale 1:2000]
3.0 DEMOGRAPHIC CHARACTERISTICS
Size, Sex, Religion, Ethnicity, Education, Age
3.0.1
Map [scale 1:2000], statistics (tables, histograms, charts, etc.)
Distribution and Density
3.0.2
Income/Expenditure Status and Saving Behavior
3.0.3
Culture Typology
3.0.4
A.2 Appendix 2: Project Stage Checklist
A spatial development framework in line with the requirements of economic growth would provide
the guidelines for the implementation of development strategy.
Following is a NOTIONAL MODEL based on the five identified OUTCOMES FOR DEVELOPMENT
(Competitiveness, Environmental Sustainability and Management, Resilience, Inclusiveness and
Strong City Systems) to be used for implementing the component guidelines identified in Section
3. Three Levels of Action (Concept/Design/ Implementation: C/D/I) identify the stage at which these
actions occur in the NDP development process.
The MODEL also outlines the key roles and responsibilities required of the Municipality/ City
Administration in the initiation/development and implementation of the intended actions.
For each outcome for development in relation to the proposed NDP MODEL a review of the former
Ministry of Works and Urban Development’s Structure Plan Manual shows issues specifically
considered in the formulation of the current Structure Plan framework.
Collectively the guidelines below include policies and programs designed to achieve greater equity, better
access, wider participation and stronger rights through social justice initiatives. They would break down
barriers that prevent access to government services; better integrate the planning of social services, urban
development and transport needs and improve public participation in the decision-making processes of
government.
Such guidelines would be fundamental to developing a comprehensive implementation strategy for
planning management and governance for Ethiopian cities and urban areas that would be sustainable at
the various levels of planning.
Competitive economic growth will provide the jobs and will finance physical and social
infrastructure. The attraction of business and industry will be dependent on the provision of modern
infrastructure and the shaping of development through strategies to attract employment.
Appropriate urban and environmental management will need to provide and support development
opportunities. Guidelines are generic and intended to be addressed selectively.
Environmentally sustainable policies and management need to be applied to address existing
problems and pressures of population and economic growth and social change. Growth and
development will need to follow the principles of environmentally sustainable development in terms
of both environmental quality and planning. This will include the structure of the urban areas and
the management of emissions for a healthy and sustainable environment (Green and Resilient
Cities).
Inclusiveness and strong city systems define the quality of life and livability for those in the local
development area. Creating livable neighborhoods will address the needs of people for housing,
work, education, health and welfare. Programs would demonstrate greater social equity, better
access and wider participation.
A.2-1 – Generic Guideline Objectives
COMPETITIVE CITIES
helping cities attract investments and jobs by improving land markets, connectivity and regulation at the
sub-national level, create an enabling environment for business, and better leverage land and real estate
assets
COMPETITIVE CITIES G1: Improve connectivity

A diverse and efficient base is required for all
G1 necessary modes of infrastructure to address Municipality to provide incentive program for
substantial new development requirements effective infrastructure
Level
Key Input Action
C D I
Relate the development of new areas of job Locate existing inter-urban C D
concentration to the transportation infrastructure transportation routes and
1.1
identify new areas of job
concentration
Establish an efficient, user oriented IT and Generally assess IT and C
Telecom infrastructure base Telecom existing infrastructure
1.2
base and identify upgrading
requirements
Identify capital funds capable of financing new IT Generally establish available C
1.3
and road infrastructure capital
Increase the efficiency and environmental Identify key requirements and C
1.4 performance of infrastructure use and provide a potential revenue source
revenue source for new infrastructure
Coordinate new infrastructure needs with Generally assess new C D

demand from development throughout the infrastructure needs in relation
1.5
greater urban area and address the gaps in to existing gaps
existing infrastructure
Introduce user-pays systems to assist Assess appropriate user-pays D I
1.6 government in recovering more of the cost of systems
providing infrastructure
Establish intensive redevelopment around well- Generally identify potential D
1.7 located transport nodes redevelopment/ infra-structure
system
Give priority on the road network to transit lanes Make general C D
on arterial roads to facilitate the efficient operation recommendations
1.8
of public transport and encourage higher
occupancy in other vehicles
COMPETITIVE CITIES G2: Improve the land market

A supply of land needs to be made readily Municipality to ensure the availability of land for
G2
available to investors economic and recreational use
Page A5
Level
Key Input Action
C D I
Provide for the development of viable Outline potential local structure C D
2.1 economic units of land linked to efficient inter- [input: Economist]
urban transportation
Retain desired agricultural land and control Identify desired agricultural land C D I
2.2 the encroachment into rural areas of
residential development
Promote development of a trained workforce Outline PPP program [input: C D
2.3 and support the formation of Public Private Economist]
Partnerships
Promote infill of existing land and more Identify key local infill locations D I
2.4 concentrated new development to increase
the use of existing infrastructure
Promote the use of urban areas shaped by a Design areas of mixed land-use D I
greater mix of land uses and density of and increased density to
2.5
activities to increase the use of public maximize the range and use of
transport services
Acknowledge and promote rural areas for Identify rural areas for C D I
their value in conserving local agriculture conservation
2.6
which provides a major source of economic
activity and food security
Respect topographic characteristics and Identify key local topographic C D
management of the land within the greater characteristics
2.7
urban area to ensure neighborhood identities
are retained
COMPETITIVE CITIES G3: Provide an Enabling Regulatory Environment for Business

Development
The system needs to provide certainty and Municipality to initiate a comprehensive system of
facilitate investment opportunity for new urban management, development control and
G3 development, clearly defining desired and planning regulation
prohibited land-uses and those compatible with
existing and desired future environments
Level
Key Input Action
C D I
Establish the efficiency of local services and the Determine the services C
supply of land suitable for industry and other essential for effective
uses to indirectly promote economic growth development of required land
uses in line with a clear concept
3.1
for future development in terms
of the NDP, its immediate
planning area and the city
center
Page A6
Concentrate policies for commercial and retail Determine the location of those C
3.2 services in a few highly accessible centers to centers able to provide strategic
induce large social and economic benefits advantage
Support centers by infrastructure provision, by Identify the initiatives necessary C
the location of local government employment to ensure government / city
3.3
and by planning initiatives controlling land uses, administration support for
traffic and parking development centers
Promote strategies for housing affordability and Determine range and C
assistance needs to include coordinated land combination of required
3.4 releases, providing surplus government land for strategies
residential development and encouraging
private sector investment in affordable housing
Streamline the development approval process Review current systems and C
and amend development controls as essential outline improved processes for
3.5
policy establishing best practice
development policy
Implement performance-based development Develop and draft appropriate D I
controls to place the emphasis on what is to be legislation to achieve essential
3.6 achieved, encouraging the better use of sites regulation to increased
and development of more innovative housing competitive standards
design
Government, the planning profession and the The planning profession and the C D I
community to comprehensively address community to provide urban
evolving urban policies design services to local
government authorities and
3.7 private enterprise. Determine
what is to be achieved and
encourage the better use of
sites and development of more
innovative housing design
Encourage a greater range of available activities Determine what is to be C D I
3.8 to reduce the overall need for travel – and achieved and encourage the
dependence on the private car more effective use of key sites
GREEN CITIES
Green cities: providing technical and financial expertise to help cities plan for low carbon, climate resilient
growth and to access the necessary financing, improve solid waste management systems and address
pollution and livability challenges.
GREEN CITIES G4: Develop urban environmental management

Air that is healthy to breathe must be Municipality to initiate comprehensive environment
maintained as part of a strategy to establish and health agenda
international standards within a sustainable
G4 ecosystem. Safe drinking water must be
maintained and rivers and lakes sustain water-
based ecosystems that can be used for
recreation
Page A7
Level
Key Input Action
C D I
Reduce emissions from the transport sector Outline key options for C D
and local industry through integrated land use controlling pollution generated
and transport planning as a basic program by local manufacturing and
4.1
identifying all possible
measures to establish universal
emission standards
Promote changes in urban structure to enable Design urban structure to meet C D I
4.2 length and frequency of travel to be reduced, travel requirements
further controlling emissions
Give attention to all aspects of catchment Assess current status of C D
management, including storm water catchment management
management, water supply issues, sewage components and undertake a
4.3 treatment measures, management of comprehensive program of
floodplains, irrigation and fisheries catchment management – most
likely with expert consulting
inputs
Establish solid waste generation and disposal Determine the extent of new C D I
practices and facilities that reduce the level of demands of NDP development
waste per capita and provide for and assess current status of
environmentally secure disposal solid waste removal and
4.4
redesign to international
standard ensuring
comprehensive health
parameters
RESILIENT CITIES
Strengthening cities’ multi-dimensional resilience and ability to cope with shock and better manage climate
risk, disaster risk, economic shocks and social conflict.
RESILIENT CITIES G5: Conserve Area Resources, reduce pollution and maintain
biodiversity
Natural land systems and the built environment Municipality to initiate comprehensive
G5 must be conserved and maintained as part of a environmental conservation program
holistic program for land systems
Level
Key Input Action
C D I
Retain land in agriculture Identify and establish status of C
5.1
agricultural land
Establish concern for the quality of the built Identify and convert C D I
environment and conservation of protected landscapes/open spaces to be
landscapes and open spaces scheduled for protection,
5.2
especially those related to river
systems and aquifer areas and
initiate an integrated policy and
Page A8
implementation program within

the planning area
Introduce cost-effective demand management Assess local condition and C D
programs to conserve water and encourage identify options for program
5.3 users to reduce consumption to defer need for design, building in strict
additional infrastructure compliance systems for existing
and new users
Establish priorities for acquiring land for open Assess local conditions, C
space provision and provide funds for demand and sources of funding
developing and improving all open spaces for open spaces and adopt strict
5.4
practices for the provision and
connectivity of open space
planning
Identify only land of significant benefit for the Outline available open space D
5.5 acquisition of open space due to limited funds
being available
Give priority to highly accessible open space Identify priority locations and D I
near commercial centers, waterfront open prepare recommendations to
5.6 space, linear parks and parkland that serves meet established demand,
the wider urban area setting and enforcing strong
parameters for compliance
RESILIENT CITIES G6: Integrate resilience to natural risks and CC

Integrate resilience to natural risks and CC
G6
in urban planning and design Municipality to initiate comprehensive plan
Adapt floodplain and storm water management See 4.3
6.1 to deal with unstable cycles of drought and C D I
heavy rain
Improve and adapt seismic norms Adapt seismic regulations to C D I
new building practices and
6.2 verify continued validity of
vernacular building and/or older
building stock
Develop disaster response and evacuation Develop disaster response and C D I
6.3 evacuation for flood and
earthquake hazards
RESILIENT CITIES G7: Integrate resilience to social conflict

G7 Integrate resilience to social conflict
Promote income mix in housing Prevent socio- Residential norms and C D I
spatial segregation Prevent insalubrious and standards
socially precarious residential densities Building inspection
7.1
Design prerequisites and design
curriculum
- See also 10.1
Page A9
Encourage a diversity of housing type to match Identify a range of housing type D I

community needs and capabilities options based on understanding
of cultural structures and
7.2
exploring a range of proposals
to meet household conditions
and family size
INCLUSIVE CITIES
improving access to land, affordable housing, jobs and basic services, economic opportunities and scaling
up efforts to upgrade slums, enhance community participation, and tackle urban poverty and social
exclusion.
INCLUSIVE CITIES G8: Improve access to land and to affordable housing
Housing must meet the needs of the range of Municipality to initiate comprehensive housing
existing and future households in terms of strategy
G8 quality, quantity, type, affordability and
distribution and must follow cultural living
preferences
Level
Key Input Action
C D I
Determine the level of future housing need by Assess housing demand by C D
type for each greater urban area and link urban area and local NDP area,
8.1 housing types with median income, financing developing programs to local
and cross subsidy options. needs and implementing
projects to preferred lifestyles
Provide for the continued use of further green Determine area of green fields C
8.2 fields development due to the levels of growth sites
in population and housing need
Provide for fringe area housing to promote Determine fringe areas C
8.3 greater choice of multi-unit housing to lessen available
demand
Improve housing outcomes with compact urban Devise compact urban D I
settlement in recognition of the economic, settlement recommendations
8.4 environmental and social conditions for the and consider alternative
community locations, height preferences
and landscape conditions
INCLUSIVE CITIES G9: Improve accessibility to public transport and amenities
The public requires access to alternative Municipality to initiate a comprehensive

G9 affordable, reliable and efficient public transportation strategy
transportation and amenities
Level
Key Input Action
C D I
Establish transport services that accommodate Determine service need and C D I
9.1 variations in need and destination type considering likely
alternative income populations,
Page A10
and related commerce and

small industry. Implement an
appropriate set of services to
meet demands of convenience
travel and variable needs of
service delivery to commercial
areas
Identify opportunities for urban development in Locate key areas with transport C D
9.2 locations that have transport advantages advantages [input:
Transportation Specialist]
Locate transport-oriented development for Identify key areas for transport- D I
commercial, housing, jobs, parks and civic oriented development and
9.3 uses within walking distance of transit stops design transport facilities as an
integral part of urban design
criteria
Retain corresponding public amenities in line Establish desirable standards D I
9.4
with relevant standards for public amenities
Link neighborhood upgrading to job creation C D I
9.5
and community initiatives
STRONG CITY SYSTEMS

supporting the urban agenda through strengthening land and housing markets, enhancing municipal
finances and service delivery, and increasing the capacity to carry out integrated territorial development
policies and land use planning.
STRONG CITY SYSTEMS G10: Comprehensive linkage between territorial development,

land use planning and urban design
Streets that are pedestrian- and public
transport-friendly should contribute to
G10 a sense of community and
Municipality to develop short- and long-term desired future
neighborhood character and provide
scenarios with supporting development controls and design
residents with adequate privacy
guidelines to determine area character
Level
Key Input Action
C D I
Provide an available and accessible Ensure comprehensive ser-vice C D I
range of employment, education, environment for local communities to
10.1 recreation, shopping, health and substantially improved levels of amenity,
welfare for all residents (functional service provision and environ-mental
integration in neighborhoods) quality
Retain a typology of settlements Establish appropriate settlement D I
according to various community typology to address diverse new
10.2 identities requirements, providing housing and
commercial designs to meet alternative
locational needs
Page A11
Establish open space corridors Identify open space network to bring D I

10.3 between urban areas housing environments within range of
open space and travel corridors
Retain recreational and tourism Identify local recreational / cultural D I
resources and protect valuable resources/ valuable/historical locations
10.4 habitats and historical locations and provide additional supporting
facilities. Ensure all environ-mental
criteria are maintained
Ensure that housing development Plan local environment to complement D I
10.5 respects local amenity and heritage amenity and heritage as an integral part
of local planning guidelines
Concentrate housing and employment Ensure housing and employment well D I
in areas with access to transport served by transportation services and
10.6 services and limit the outward spread contain urban development
of urban development into sensitive
environments
Promote neighborhood character to Develop appropriate urban design D I
develop a sense of community and solutions in line with desired future
10.7
address issues of safety and security character scenario. Revise and expand
the range of scenario over time
Competitiveness issues specifically identified by the 2006 MWUD’s SP Manual are (i) tool bringing
investment and sustained socio-economic development; (ii) instrument that can accommodate
changes in the socio-economic, environmental and physical contexts; (iii) consideration of the
regional/urban system and network linkages to the principal urban area (iv) urban centers are
expected to serve as centers of commerce, industry and the services that help bring sustainable
economic development; (v) major functions of different spatial zones and land use bring investment
and sustainable socio-economic development; (vi) reservation of adequate land to effectively meet
future demands; 10% of expansion area should be reserved for unforeseen development; and (vii)
problems of good governance like lack of accountability, transparency, efficiency and participation
among municipal authorities.
Environmental Sustainability and Resilience issues specifically identified by the same Manual are
(i) consideration of the environment, open and green spaces (watershed management, water
supply sources, construction materials, waste management, urban agriculture and conservation
areas); (ii) urban-rural harmony and alleviating urban-rural conflicts (encroachment into rural
hinterlands); and (iii) Agricultural Development Led Industrialization (ADLI) adopted as a strategy
for achieving sustainable economic development by increasing rural productivity focusing on export
goods that create processing industries in urban areas.
Issues related to Inclusiveness and Strong City Systems specifically identified by the Manual are
(i) poor and shortage of infrastructure, housing, recreational areas, and urban-rural linkage; (ii)
unbalanced urban growth and weakly developed national and regional urban systems; and (iii) the
adequacy of services such as health, education and telecommunications.
Page A12
A.3 Appendix 3: Benchmarking – Best Practices and

Model
A.3.1 Vietnam
A.3.1.1 Background
Viet Nam, officially known as the Socialist Republic of Viet Nam, is a country located in the
Southeast Asia. It is bordered by China to the north, South China Sea to the east, Laos to the
northwest, and Cambodia to the southeast. With just over 90 million inhabitants, Vietnam is the
13th most populous country. It encompasses an area of 332,700 km2, roughly more than three
times less than the size of Ethiopia, but more than three times denser, accommodating 270
inhabitants per km2 and 31% of urban population in 2010. From its land, three quarters are covered
by mountains and plateaus and flatlands are mostly limited to the coastal areas (Red River and
Deltas).
Map A.3-1 – Map of Vietnam

Since the economic and political reforms of
1986, Viet Nam has opened up and entered the
path of the market economy. Its administration
is divided into three regions – the Ha Noi
(northern), the Da Nang (central), and the Ho
Chi Minh (southern) – and six socio-economic
sub-regions. Such policy changes have helped
the country exhibit rapid foreign investment
driven industrialization in rural areas, which is
qualified as unprecedented in its speed and
scale. In terms of land use, there was a rampant
expansion of residence into rural and urban
peripheries.
In 2012, the country marked a GDP of USD 170
billion with a per capita GDP of USD 1,900. Its
economic growth rate is calculated as 5.4%.
Source: Viet Nam Institute of Architecture, Urban and Rural Planning (VIAP) website
Page A13
A.3.1.2 Local Governments and Spatial Planning System
According to the 1992 Constitution, Viet Nam has three tiers of local government. The first tier
consists of provinces and centrally-controlled cities. In the second tier, a province consists of
prefectures, prefecture-level cities and towns, while a centrally-controlled city consists of districts,
prefectures and towns. Lastly, in the third tier, a prefecture consists of townships and counties; a
prefecture-level city or a town consists of wards and counties; and a district consists of wards.
Figure A.3-1– Administrative System of Vietnam

According to the Urban Planning Law,
legislated in 2010, urban centers are classified
into 6 Grades; Centrally-controlled cities must
be an urban centre of Special Grade or Grade
I; Prefecture-level cities must be an urban
centre of Grade I, II or III; Towns must be an
urban centre of Grade III or IV; and Townships
must be an urban centre of Grade IV or V. Until
the end of December 2013, there were 770
urban centers in Vietnam, of which 2 are at
special grade, 14 at grade I, 11 at grade II, 52
at grade III, and 691 at grade IV.
Under its urban planning system, Vietnam implements two main programs; namely the Viet Nam
Socio-economic Development Plan and the Spatial Plan. Horizontally, there are three types of plan
practiced interdependently by various ministries; Ministry of Planning and Investment (MPI) deals
with comprehensive social and economic planning at national, provincial and local levels; Ministry
of Construction (MC) deals with regional planning and master planning; and other ministries deal
with sector plans at national, provincial and local levels.
Figure A.3-2– Planning System in Vietnam
Source: Vietnam government portals (websites)
Page A14
The national Socio-Economic Development (SED) Plan, with the objective to accelerate national
industrialization and modernization along the socialist line and to build the foundation for the
country to basically become an industrialized nation by 2020, has two components including the
10-year "SED Strategy" and the corresponding consecutive two "Five-year SED Plans". Currently,
the country is implementing the third 10-year SED strategy and the ninth 5-year SED Plan. Under
these schemes, bottom-up mechanism of planning is employed, whereby the local governments
(counties, districts, and provinces) develop SED plans and send them to MPI, where they get
incorporated in the overall country spatial policy framework. This gives MPI the power to coordinate
relevant agencies involved in the planning and implementation of urban plans.
On the other hand, the MC manages the details of the spatial plans. At national level, the ministry
develops the Master Plan Orientation for Vietnam’s Urban System Development, and the regional
plans in collaboration with provinces. Cities and provinces develop master plans and detailed plans
for selected districts, wards, industry zones or development projects. The plans are in general
prescriptive in character, laying out specific ways to use land, unlike the rather regulative nature of
western countries’ land use plans.
Currently, Vietnam is implementing a 2050 vision of its urban system development with the
following general development goals:
 Until 2015, key economic regions and large urban areas are given high priority and they
are expected to play the a dominant growth pole role at national level;
 From 2015 to 2025, the development of basic urbanized area is given priority to
organize locally dispersed development;
 Between 2026 and 2050 the urban network will be generally implemented.
 The urban population forecast: in 2015, about 35 million; in 2020, about 44 million; in
2025, about 52 million, and as of 2025, accounting for 50% of total national population.
 Number of urban centers: In 2015, over 870 municipalities; and in 2025, 1,000.
 Buildable Land: In 2015, about 335,000 ha, accounting for 1.06% of natural land, and
average rate of 95m²/head; in 2025, 450,000ha, accounting 1.4% of natural land, and
an average rate of 85 m²/head. and
 Until 2020, the national urbanization rate shall reach 45%; the national urban system
shall meet the requirements of the socio-economic development and the urban
development management in two special cities, 312 urban localities from Grade I to IV
and more than 620 urban localities of Grade V.
The Ministry of Construction (MC) implements the Construction Law, which was legislated in 2003.
The law has a chapter that lays out regulations for "construction planning", which correspond to
master plans. In effect, it is a set of land use regulations for urban, regional and/or spatial plans.
As such, it is possible to formulate broad-reaching plans that encompass provinces and centrally-
controlled cities ("multi-provincial plans" and "metropolitan area plans"), both of which form the
largest regional administrative units. Based on this Construction Law, in recent years Viet Nam
has undertaken the creation of regional construction plans that divide the country into 6 socio-
economic regions (multi-provincial areas). This chapter has been separated from the Construction
Law to create the new Urban Planning Law enacted in 2010 and applied on planning and urban
development in urban areas.
According to the Urban Planning Law, there are 3 types of urban planning and these are
Page A15
 General Planning, which is made for centrally-controlled cities, prefecture-level cities,

towns, townships and new urban centers;
 Zoning Planning, which is made for areas within cities, towns and new urban centers;
and
 Detailed Planning, which is made for the areas to meet urban development and
management requirements or construction investment needs.
A.3.2 China
China, officially called the People’s Republic of China, is located in the East Asia. It shares borders
with 14 countries and covers 9.6 million km2 of total area spanning 5,500 km from north to south
and 5,000 km east to west. The country shelters 1.36 billion inhabitants in 2013 with a gross
population density of 145 inhabitants per km2, which is approximately double of Ethiopia’s density.
China has liberating its economy and progressing at a phenomenal pace toward market economy
in urban areas. In 2013, China marked a real GDP of over USD 16 trillion and a per capita GDP
of USD 11,868. This remarkable economic growth, however, is accompanied by economic
disparities between the rich and the poor and the urban and rural areas. The gap widens
furthermore between the western and eastern parts of the country.
Map A.3-2 – Map of China: Provincial Level Administrative Divisions
Page A16
China has four tiers of local government system: provinces, prefectures, counties, and townships.
It implements three layers of spatial plans; socioeconomic development plans, national spatial
plans (land use plans), and urban and rural plans implemented at different levels. The
socioeconomic development plans are drafted at the national, provincial, and county levels.
National spatial plans (land use plans) are drafted at the national, provincial, prefectural, county,
and township levels.
Figure A.3-3 – System of Spatial Policy in China
Urban and rural plans can be divided into: urban system plans (which serve to link different urban
areas together), plans that link cities with towns, and plans that link townships with villages. Urban
and rural plans are drafted at the national, provincial, prefectural, and county levels.
In the 1940s, urban planning in China used the former Soviet Union urban planning model. It was
a spatial implementation of the state economic development plans. In 1980s, urban planning
explored national conditions of the socialist market economic system. The traditional urban
planning system was broken and the new planning system also cannot copy urban planning system
from the European countries. However, in the 1990s, China's urban planners recognized that it was
very difficult for the traditional master planning to adapt to rapid economic system restructuring.
Learning from best experiences of various planning models, including action planning from the US,
structure planning from the UK, strategic planning from Australia, land use planning from Germany,
and concept planning from Singapore., the urban planning in china started rebuilding.
Since 2000, China entered the urban globalization era by adopting master planning as its urban
planning approach. Master planning in China means to make a comprehensive study and to
confirm the urban nature, size and spatial development, overall arrangements for urban
construction land, rational allocation of urban infrastructure, to handle the relationship between
long-term development and short-term construction, to guide the rational development of cities. As
a result, China became the world number one manufacturing hub and attracted significant foreign
investment. Accordingly, master planning allocated adequate spaces for the rapid development of
cities and large manufacturing areas, as well as supported infrastructure and social facilities for
large projects. This planning model increased its global vision of urban development, and
emphasized the development of global cities, and cities have also begun to focus on the
Page A17
development of producer services. Currently, China’s master planning concept focuses on

economic globalization on urban and regional development; large-scale infrastructure; global
economic networks; and development of tertiary industry. The model gives more emphasis on the
spatial development of land uses (architecture, engineering and urban design) associated with
regulations. The model is however criticized for weak social and economic research and limited
rigor on public participation.
The urban planning system in China, which primarily focuses on promoting urban wealth, ignores
key elements including environmental sustainability, balanced growth between rural and urban
economies, and establishing national standards. In recent years, China’s master plans adopt
functional zoning system only in force within large urban centers and economic zones, where public
investments are highly pooled. This created dramatic effects on internal inequalities.
A.3.3 Slums Gradual Reduction: Moroccan Experience
In order to reduce gradually the development of slums in urban centers all over the country,
Morocco launched about seventeen years ago an ambitious program of relocation and rehousing
for low and medium income people. Two solutions were proposed to the inhabitants in precarious
housing; either the rehousing on site after an eventual land-pooling of the plots, under rigorous
conditions of access and construction or the relocation in flats of about 60m 2 in multi-storey
buildings.
Both solutions are subsidized but it is not the financing process, which is essentially at stake, but
the design and implementation arrangements of the first option might be taken into account as an
example of a soft redevelopment maintaining the existing social links. This offers a panel of
solutions fitting a range of incomes, and responds as well to the expectation of densification and
supply of urban services.
A.3.3.1 Rehousing on Site
Figure A.3-4 – On Site Rehousing in Morocco
 First step – After designing the new layout of the blocks, the city authority provides
urban services all around the neighborhood predominantly of precarious housing. Each
resident household, accessing a plot of 63m2 (7m*9m), shifts the shelter within the limits
of the plot. Into two years the family has to launch the work according to the plan drawn
by the Urban Planning and Architecture Department of the City.
Page A18
 Second step – The construction results from a mixed process of self-construction and
craftsmen support. An architect employed by the municipal department follows and
controls the works. The model consists in joining houses, leaving an area close to 10m2
on the plot free for courtyard. It is built as a simple ground floor or developed in three
levels (ground floor + 2 floors). Finally, the redevelopment of the neighborhood applies
a strict urban regulation.
 Third Step – The final product results from the financial resources of the household.
Often, the household lives in the ground floor and rents the additional two flats.
In terms of urban development, the process leads to a significant densification of the original block
and, accordingly to a profitable extended use of the urban utilities.
A.3.3.2 Relocation in Low Rise Building
For information, Morocco strives to avoid, when financially possible, the relocation in condominium-
style buildings. Some operations launched, implemented and managed by the public land
developer Al Omrane26 deserve to be presented as examples of livability and social mixing.
Following the rehousing process, the relocation in social housing fits the first option planned by the
Moroccan government for a gradual reduction of the slums.
Figure A.3-5 – Flats (226) in the Outskirts of Rabat, Al Omrane Project
A.3.4 Lessons Learnt
The models of urban planning of Vietnam and China have some important lessons for managing
urban development in Ethiopia. First both these models base their planning systems on functional
zoning, which promote urban productivity. Secondly, both countries are now working on
addressing the negative effects of immense industrial development and economic growth on the
urban and rural environment. Thirdly, the importance of considering public participation in planning
and adopting incremental decision making processes that harmonize interests of the community
and integrated territorial development with land use planning and urban design.
In addition, the Ethiopian urban model should learn that it can minimize the divide between urban
and rural environment by setting up planning standards. And finally, it is self evident that there is
great need to implement more comprehensive planning tools and laws that safeguard green and
natural environment within and around urban centers, increase connectivity between and within
26Al Omrane is the bigger public land developer employing about 1500 persons all over the country. Its fields of activity
start from housing projects up to large projects of new satellite cities (outskirts of Marrakech, Rabat /
Casablanca,…objective 250 000 p. each).
Page A19
urban centers, promote inclusiveness and integrate resilience to natural risks, climate change, and
social conflicts, and promote productivity.
A.3.4.1 A Concrete and Essential Application: In-migration
GTP1 and GTP2 plan to decrease slums up to 25% in 2025 and a total eradication in 2035. The
success of such an ambitious goal strongly depends on the capacity of the regions and urban
centers to manage not only the current residents of poor living conditions but also the low-income
in-migrants.
Among the 12 project cities, Harar and Hawassa demand regularization of informal occupations.
This request matches an unquestionable confession of damages done due to lack of sound
management of the urban population growth. It is interesting to think about the urban future in the
country and how city administrations manage the upcoming speedy urbanization; do they adopt
laissez faire approach and see precarious shelters invading their urban perimeters, or manage
slums based on integrated neighborhood plans equipped with strict institutional and physical
regulations.
The rehousing model as practiced in Morocco on one hand, and the method of integrating
neighborhood planning with the general plans (master plans) as practiced by Vietnam and China,
might be an interesting starting point for Ethiopia to develop its urban planning model that help set
up a strict comprehensive zoning and land use regulations and control development.
A.3.4.2 Institutional Arrangements
 Under public financing, the SP will put at disposal basic accommodation for the lowest
incomes
 This basic accommodation does not match the condominium process but it appears as
the starting point of a future and controlled development
 The concerned households, who must fulfill specific conditions27, will sign an
agreement with the CA comprising of:
o Favorable conditions of land lease: free plots or with very low lease rate,
o Granting small plots dedicated firstly, to one household, later to two or three
households,
o This plot will be equipped with a basic accommodation,
o Authorization to implement a precarious shelter in an agreed period,
o At the end of the period, mandatory implementation of a housing unit according to
a model designed by urban/architecture departments at regional/federal levels,
o Subsidized access to construction materials,
o Implementation by self-construction or supported by craft workers,
o Scheduled control of the work by appointed architects, and
o The housing unit for one household must be completed into an agreed period.
27
To be defined by the federal administration
Page A20
A.3.4.3 Physical Arrangements
 Allocation of a 70m2 plot

 Allocation of a 20m2 accommodation unit as described in the following bill of quantities
and comprising of the following specifications:
o Water supply connection
o Wastewater connection
o Power connections
o Sink / washbasin / pan / shower
The cost of the basic accommodation includes material, labor and profit. The total amount is
rounded up to ETB 90,000
Table A.3-1 – Cost Estimation of a Typical Flat

Unit
Cost
ITEMS Unit costs Calculation Quantity
Birr Birr
Total 20m2 basic accommodation 83 664
Shell 56 664
Excavation m3 300 0.4*0.4*(5.00+4.00)*2 2,88 864
Foundations (concrete 150) m3 2 500 0.4*0.4*(5.00+4.00)*2 2,88 7 200
Slab (20cm thickness - concrete 250) m2 600 5.00*4.00 20,00 12 000
Walls m2 300 [(4.00+5.00)*2+4.00]*3 66,00 19 800
Roof (corrugated sheets + timber) m2 600 (4.00/Cos30+0.50)*5.50 28,00 16 800
Finishing / Fittings 12 000

Sink u 3000 1 3 000
Wahsbasin u 3000 1 3 000
Pan u 3000 1 3 000
Shower u 3000 1 3 000
Connections 15 000
Water supply u 5000 1 5 000
Sewerage u 5000 1 5 000
Power u 5000 1 5 000
Page A21
A.3.4.4 Design of Basic Accommodation for Low-income Households
Basic accommodation: 20m2 on a 70m2 Plot – designed and sized for a future extension
First step: foundations / slab / outer walls Second step: partition walls / fittings
Page A22
Last step: roofing – remaining space for temporary shelters authorized during 2 years
A.3.4.5 Development of the Housing Units into 1, 2, 3, 4 Flats
The following sketches present a possible development of a basic accommodation up to 2, 3 or 4

flats on the same plot.
Starting from the basic accommodation as core of the plot, the development is performed by
addition of floors one after the other.
The flat at the ground floor is around 35m2. The room opening on the road might be affected to
commercial use. In this case, a solution would be the joining of the ground and the first floors
leading to a flat of about 35+50 = 85m2 including the shop.
Based on this kind of development, the final picture, n°9, gives an idea about the appearance of
the façades along a feeder road serving several 70m2 plots.
Page A23
1 2
Basic Accommodation: core of the extension Step "n": extension of the walls / slab
3 4
Step "n+1": roofing – flat = 35m2 Step "n+2": stairs / slab 1° floor with optional arcade
Page A24
5 6
7 8
A second floor, a third floor indeed might be built – one flat per floor = 50m2
Page A25
A feeder road after completion
Page A26
A.4 Appendix 4: Mapping
Map A.4-1 – Map Illustrating Background Analysis
Page A27
Map A.4-2 – Existing Settlements in Abay Mado NDP Site
0 500m
Page A28
Map A.4-3 – Slope Analysis Map of Abay Mado NDP Site
Page A29
Map A.4-4 – Integration of the Proposed Land Use with Settlement
Page A30
Map A.4-5 – Views of the NDP Proposal
Page A31
Map A.4-6 – Road Design for 9m – 13m Feeder Roads
Page A32
Map A.4-7 – Road Design for 22m Wide Collector Roads
Page A33
Egis International in association with IAU-IdF and UrbaLyon, NDP Report of Abay Mado, Bahir Dar, February 2015
Map A.4-8 – Road Design for 30 m Wide Arterial Roads
Page A34
Map A.4-9 – Site Section
Page A35
Map A.4-10 – Layout of Main Sewerage and Drainage Networks
Page A36
Map A.4-11 – Layout of main Electric and Street Lighting Networks
Page A37
Map A.4-12 – Layout of main Water Supply Networks
Page A38
Map A.4-13 – Layout of main Telecommunication Networks
Page A39
Map A.4-14 – Position of Solid Waste Disposal Platforms
Page A40

Bahir Dar NDP UDP - Final Report

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April 2016

List of Acronyms vii

Executive Summary ES1

1.2 Objectives ............................................................................................ 2

2. Assessment of the Existing Situations 11

2.2.1 Land Use Assessment ............................................................ 17

2.3 The Site Development ........................................................................ 23

2.4 Policy Analysis ................................................................................... 25

2.4.2 Local Capacity and Implications .............................................. 29

3. Defining the Program 31

3.2 Development Goals and Objectives ................................................... 32

4 The Neighborhood Development Plan 44

4.5 Land Use Regulation .......................................................................... 51

5 Urban Design: Introduction 58

6 The Existing Morphology 60

6.5.1 Defining the UD Program ........................................................ 61

7 The Urban Design 65

7.3 Road Network..................................................................................... 67

7.4 Mobility Pattern................................................................................... 73

7.5.1 Block Pattern........................................................................... 73

7.6.2 Parking and Loading Bays ...................................................... 82

8 Physical and Financial Implementation Strategy 85

8.2.2 Prioritization of Development Phasing .................................... 86

9 Project Implementation Scheme 115

9.2 Monitoring and Evaluation (M&E) Activities ...................................... 121

A.1 Appendix 1: Checklist for Design Components 1

A.2 Appendix 2: Project Stage Checklist 4

A.3 Appendix 3: Benchmarking – Best Practices and Model A13

A.4 Appendix 4: Mapping A27

Map 1-1 – Location Map of Abay Mado NDP Site......................................................................... 5

Figure 1-1 – Plan Making Process and Methodology.................................................................... 8

Graph 2-1 – Age Distribution of Bahir Dar Population ................................................................. 11

Table ES-1 – Area Summary of Proposed Land Uses .................................................................. 5

Ministry of Urban Development, Housing  Ato G/Michael G/Kidan, Ministry of Industry

Relevant Planning Documents

Plan Making Process

Issues Inventory of the Current Situations

Demographics and Social Services

Economic Potential and Business Development

The Neighborhood Development Plan Proposal

Road Infrastructure and Utilities

Parks and Open Space

Community Facilities and Services

1.1 General Background

1.3 The Planning Area

Map 1-1 – Location Map of Abay Mado NDP Site

1.4 The Planning Method

Figure 1-1 – Plan Making Process and Methodology

Figure 1-2 – Planning Steps of the New NDP Model

Steps 1-5 Steps 6-8 Steps 11-15

1.5 Scope of the Study

1.6 Organization of the Report

2. Assessment of the Existing Situations

2.1 Socio-Economic Analysis

2.1.1 Demographic Characteristics

Graph 2-1 – Age Distribution of Bahir Dar Population

2.1.2 Social Structure and Cultural Practice

2.1.3 Economic Potentials