Boren final report.pptx

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Wondimu Consult
Urban Development and Planning
P.O.Box 21886 code 1000, Addis Ababa
E-mail: wondimuabeje@yahoo.com
Consultant
The Municipality of Dire Dawa
Dire Dawa City Administration
Boren Local
Development Plan
Final Report
April 2010

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Table of Content
Page
I. INTRODUCTION
1. Background
2. Methods and Approach
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5
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II. Spatial Analysis
1. Spatial and Morphological Analysis
2. Landscape and constraint
3. Existing land use
4. Road
5. Infrastructure Facilities
6. The stricture plan of IDP and Boren LDP area
III. Socio Economic Analysis
1. Methodology
2. Demographic and social Characteristics
3. Educational Attainment
4. Access to Social Services
5. NGOs and Iddirs
6. Religious Institutions
7. Major Socio Economic Problems
8. Attitude towards Development
9. Summary of Social issue for planning consideration
10. Economic Activities in Dire Dawa
11. Economic conditions of Boren
III.10.1Econommic activity
2. Employment and Income
3. Source and Level of income
12. Perceptions, Problems, and
opportunities of Boren locality
13. Summary of Economic issue for planning
consideration
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9
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IV. BOLD IDEAS AND CONCEPTS
1. Vision
2. Bold Concepts
3. The adopted Conceptual plan and Vision
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V. Proposals and Implementation Strategies
1. Proposed Land use
2. Proposed Road network and circulation
3. Urban design brief
1. Regulation of the LDP
2. Urban Design recommendation
4. Socio economic development
5. Implementation Strategies and Action Plan
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V5. 1Construction
V5.2. wood and metal work
V5..3. Textile and Garment
V5.4. Food processing
V5.5 Municipal service
V5.6 Urban Agriculture
V5.7 Social service
V5.8 Social rehabilitation measures
V. 5. 9 Implementation approach and Phase
V. 5.10.Cost Estimation for public investment

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Acknowledgement
Wondium Consult and its entire staff, would like to extend its gratitude for all persons and
institutions who have extended their cooperation in the preparation of Boren LDP. We would
like to thank particularly the staff and leadership of the Dire Dawa city Government for their
commitment and active involvement in the LDP study.

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Forward
This LDP study is prepared for of Boren area , the expansion area of Dire Dawa. The present report is
prepared accompanied with land use, road network, regulation and integration plans.
The study has been conducted by mobilizing highly qualified professionals as well as office and field work
assistants. The main experts involved in this study are:
Dr. Wondimu Abeje,
Ato Dagim Assefaw
Ato Haile Abera
Ato Astawesegn Gelaw
W/ro Hirut Tebeje
W/ro Esegnet Garedew
W/rt Eskedar Mulatu
Ato Mulugeta Maru
Ato Mengistu Abeje
Project coordinator and Senior Urban planner
Urban design expert
Economist
Sociologist
GIS expert
GIS expert
GIS expert
CAD expert
Assistant coordinator

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I.1 Background
Boren LDP area is located in one of the rural
kebele of Dire Dawa City Administration named
Boren jeden.
Dire Dawa city administration is one of the urban
local governments established under the Federal
Democratic Republic of Ethiopia with a total area of
1288.02 Km2 of land located in the Eastern part of
Ethiopia. The suburb area covers 125,847 Km2
(97.73%) while inner city has a share of only 29.24
Km2 (2.27%). According to CSA 2007 population and
housing census report, a total of 342,827 people
were living in the city, of which 232,854 (69.7 %) live
in the inner city while the remaining 109,973 ( 32.1
%) live in the surrounding rural kebeles.
The city is composed of 9 urban and 38 rural
kebeles. Boren Jeden ara is one of the rural kebele of
dire Dawa in the process of joining the urban kebeles
of Dire Dawa.
Boren Jeden LDP area is composed 6
neighborhoods inculding Adamo, Dengo, kaba
Tenkule, Jedneaj, Bealwalti. Following the
preparation of IDP in 2005, the City of Dire Dawa is
preparing its development both in inner and
expansion area. Boren Local Development Plans
(LDP) is part of this endeavor.
Boren
LDP area

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1.2 Methods and Approach
Data
The Boren LDP study has employed both
primary and secondary data sources. The study
mainly relied on primary data by employing the
following data collection methods in addition to
the forums listed above:
- Inventory of the existing land use: Exhaustive
visit and inventory of land uses have been
conducted in the study area and its immediate
surroundings;
- Household survey used to assess the socio
economic profile as well as inspiration and
attitude towards the development of Boren;
-Institutional assessment has assessed the
major problems and plans of service providers;
Sampling technique and sample size
The primary units of analyses in the sample survey
are households and members of the business
A 20% of the households are
with systematic random sampling
community.
interviewed
method
Detailed questionnaires were prepared for the data
collection from the respective target groups. In
addition, checklists were prepared to hold
discussions with relevant sectoral offices, the city
and kebele administrations, chamber of commerce,
religious institutions, elders and community
representatives.

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Photo 1: Discussion with the community
Photo 2: Discussion with stakeholders
Participatory processes
The LDP study of has employed a
participatory approach to identify not only the
problems but also the inspiration and
internal force/dynamism for the development
of Boren with good integration with the
surrounding area .
The participatory assessment is conducted
through the following forums:
- Discussion with the community and the city
resident conducted on October 8, 2009
- The stakeholders forum of October 9, 2009
which gathered the concerned organization
from Federal (ETC, EPPCO, etc), City (road,
sanitation, investment, etc) and regional level
actors;
- The consultative forum of October 5, 2009
with the which the technical committee
represented by relevant institutions;

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II.1. Spatial and Morphological Analysis
General Description of the Boren LDP area
Boren is one of the 38 former rural kebeles which
were annexed to the main city Administration Dire
Dawa. The kebele is located between the inner city
and Melka Jebdu town.
It is surrounded by Sabiyan kebele (02) from the
East, Industry Village from the West, Shinile zone of
Somali region from the North and kebele 37 (Gende
Rige) from South. Under the LDP study, Boren
locality encompasses the whole of kebele 38 (Boren
Jeden) and part of kebele 37 (Gende Rige).
By and large, Boren locality is dominated by
scattered rural villages and partly it has an urban
character in that the newly built up areas seem to be
planned and they also enjoy public services such as
electricity, water supply, roads etc.
The kebele is characterized by new urban squatter
settlements, residential housing units built on legal
land holdings and scattered rural villages inhabited
by indigenous inhabitants. The kebele is part of the
urban expansion areas of the city.
Boren locality is also called as Boren Jeden,
includes Ada woini, Dengo, Kabel kekele, Bealwalte,
Jedenade, and Alhadad areas.

Spatial and Morphological Analysis
Boren LDP area is located between Sabian and
Industry Mender. It covers a planning area of 350
ha.
The settlement pattern of the area is characterized
by the following three categories of settlement
-Planner and good condition settlement
- wider plot not built
-Informal and scattered settlement
-Framing land
-Former military area (tank building )
-Some hilly areas with streams
The area is surrounded by institutions with large
plot of land and military camps
The planned settlement is the formal settlement
based on land allocation of before 5 years. The
area is used for settlement after the construction of
the Sabian –Melaka Jebudu road in 2001.
The scattered informal houses have settled after
2005.
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Integration : Planning and influence boundary of Boren LDP area
Melka Jebdu
Sabian
Industry Zone
Boren
LDP area
?
Planning
Boundary
Influence area
Boundary
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The north western part : Hilly, stream, previous military areas
Former military area (tank building )
Streams
Hilly area
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Planned pattern and well to do buildings
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Scattered, precarious and semi farm pattern
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II.2 Landscape and constraint
Boren LDP area two major constraints.
These are :
-The hills and rivers in the north western part
- the high tension lines (two existing and one
planned) crossing the study area from west to
east.
The general catchments of the area is from
south to north with altitude range of 1180m to
1127m above sea level. The average slope
of the area is gentile except the hilly area in
the north western part.
The area is therefore suitable for urbanization
from the landscape point of view. The high
tension line is however a critical constraint for
any type of development in area crossed by
the high tension lien and its surroundings.
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II.3 Existing land use
Boren LDP area is dominantly agriculture and
residential with very few economic activities
and services.
The major land use composition of Boren LDP
area is presented in table 1.
Farm and bush lands covers the major land
use share of the area. The residential area
covers 30% Among which the scattered
settlement 25%.
In addition to the kebele , administration, there
are very few institutions such as health center
and Chesire Integrated community center.
Conserving the business activity, the area is
completely dormant. There is only a cement
pipe and hollow block production near to the
river and adjacent to the Boren LDP
boundary. The high unemployment rate and
low level of development of the area can
therefore can be explained by this critical lack
of economic activities.
There is no recreation place of neither outdoor
or indoor type: no green area, no sport field, no
other cultural and recreation centers
Cement pipe and hollow block near to the
river and outside the LDP boundary
Boren Jeden Kebele office

Existing Land use of Boren
Legend
Scattered settlement
Pure residence
Farm land, bushes
Services
Referral Hospital
High tension line
Road
Trail
River
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Existing land use distribution of Boren LDP area
Land use type code Area in ha %
Residential R1 18.0 5%
Scattered settlement R3 91.0 25%
Health service S24 1.0 0%
Cheshier community center S25 1.0 0%
Farmland, bush A1 232.0 63%
Road 24.4 7%
Total 367 100%

Land use conflict
Boren LDP area is crossed by two high
tension lines joining the EPPCO substation
located in Sabian.
One additional sub-station is also expected
to be installed as indicated in the
stockholders meeting.
The high tension line and other future
development are not well coordinated.
Under the high tension line, a land is
allocated for referral hospital.
The two functions, the referral hospital and
high tension lines, are highly conflicting.
There is no reconciliation solution, in the two
cases . One should be done and the other
should be relocated .
High Tension
Lines
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Building and housing typologies
In Boren LDP area, there are three
categories of buildings:
-Housing building of villa and G+1 type in the
planned area
-Few institutional (g+1) and new business
building (G+2) along the road to Melka Jebdu
- Traditional and Precarious houses in the
scattered informal settlement area made up
of plastics, used barrels and iron sheets,
mud .
.
G+2 building along the main rod to Melaka Jebdu
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Boren LDP area has a low coverage road
network accounting only 7% of the total area.
There are four categories of road;
- The arterial road which goes to Melak Jebudu
-The collector roads serving the planned
neighborhood
-earth road connecting the planned scattered
settlement with the planned area
-Trails used for circulation inside the farm area
There is no asphalt road. The arterial road and
the collector roads serving the planned
neighborhood are with gravel surface of
adequate width. The remaining roads and trails
are earth road.
The roads of the area don’t have neither
drainage facilities nor street lighting
II.4 Road
Earth road connecting the planned scattered
settlement with the planned area
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Existing Road Network of Boren
Legend
Road
Trail
River
Future Referral Hospital
High tension line
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Road distribution in Boren LDP area
Earth road and the eroded water path
Road_type
Length
In m
Average width
in m area in m2
Arterial road 1646 30m 49380
Collector road 14479 10 meter 144790
Trail 16605 3meter 49815
32730 243985
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II.5 Infrastructure facilities
The infrastructure facilities coverage of the
LDP area varies depending on the settlement
pattern.
The planned area is served with all basic
infrastructure such as gravel road, electricity,
telephone, potable water, garbage collection
container.
The scattered residential area has no adequate
services. They are obliged to fetch water up to
Sabian.
The area has no adequate services such as
school, market place, health facility.
The development of the area should therefore
address the issues of infrastructure
Electric line
Garbage bin
Telephone line
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II.8 The Structure plan of IDP and Boren
LDP area
The structure plan of Dire
considered as spatial frame
Dawa is
work to
analyze the relevance of the proposed
schemes inside the planning area and its
influence zone.
As a framework for its development, the
city has an IDP plan prepared with a vision
to see Dire Dawa “attractive, cozy &
globally competitive which is endowed with
good governance & a strong and
sustainable economy specializing on
Trade, Industry & Service Sectors”.
In the IDP of Dire Dawa, Boren area is
considered as expansion area of Dier
Dawa.
Major proposals of the structure Plan for Bore
areas is illustrated with the map on the following
page.
The structure plan proposal for Bore LDP area
includes:
-Road development with major collector and
minor collector roads
- green area in the hilly part of the area
- pure residence
- few business establishment
- services
However, the structure plan doesn’t give any
consideration for the high tension line.

The Structure plan proposal for Boren LDP area and its surrounding
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III. SOCIO ECONMIC ANALYSIS

III.0 Methodology
Both primary and secondary data methods are used to assess
the existing situation of the study area. The major sources of
data for this study chiefly were primary sources
Primary data:
Systematic random sampling method through structured
questionnaires, key informant interview , direct observation, a
forum, consultative discussions were utilized to elicit
information from the respondents at different levels (house hold
heads, sectoral and kebele administrators…)the questioner
was made to be incorporate the most important demographic
and socio-economic characteristic of the house holds, housing
condition, the nature and status of basic urban services, etc.
Secondary data :
Different written documents are also used as a resource. The
secondary data was collected from different official documents
of the city and kebele documents of the city and kebele
administrations as well as review of legal documents,
published reports and other works in relation to study area
Data Analysis and Tabulation
SPSS have been used to analyze the
data and to present in a systematic and
scientific way.
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III.1. Demographic and Social
Characteristics
It is believed that demographic and as well as
socio-economic analysis must be considered to
understand the lively hood of the study are in order
to propose effective and efficient local development
plan. In this aspect , certain demographic and
socioeconomic characteristics of the residents
analyzed by focusing factors that are considered to
be determinant factor
Population
The total population of the kebele is 11860 (source:
kebele administration) with average family size of 5.3.
According to our primary data , the population of the
study area is about 1145. Due to the specific
characteristic of the residents the population size might
differ at different seasons. Since the area is also highly
characterized by squatter settlement, the number of
residents can be increased and decreased depending
on different situation. it is learned that while
administration officials going to visit the area for
number of squat residents
different reasons, the
increased.)
The existing total number of households is estimate tp
be around 700.
It is identified that the structure of the
community is more of traditional rural; except
neighboring places of the city as well as
squatters. This is manifested and adequately
explained by the interrelationships among the
people they had; structure of community
organization and the spatial distribution of
socioeconomic activities currently in place in
the environs. To mention a few, The
inhabitants of the study area are
homogenous. They have the same interests,
philosophies, occupations, and social-class
positions and almost the same ethnic and
religious background. They have a feeling of
close identity and unity. There are few
modern constructions and compact
permanent village settlements along the main
road near to urban
traditional as well as
widely scattered over
kebele,
modern
a wider
livelihood of the people is
and many
settlements
area. The
agriculture
supplemented by off – farm activities. Social
services are in short supply.

GENDER
The sex proportion of the population of the study
area is lead by men accounting 54% and women
46%.
The lion share of Household head is given for
male by constituting 86% and the remained only
14% houses are Female headed
The lion share of Household head is given for
male by taking 86% and the remained only 14%
houses are Female headed.
With regard to marital status the house hold
heads are asked to whether they are married ,
divorced , single ,or widowed. As can be seen in
the pie chart a large proportion 91% of the
respondents are married followed by single
divorced and widowed households that accounts
for equally 3% each.
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Age sex structure
T
The age of house hold heads are ranged
from 22 to 80 years with the mean age of
42.5 years.
As observed in the bar graph the majority
of the respondents are under the age of 14
constituting 59%which implies the need of
kindergarten and primary schools in the
area. Good number of also indicates age of
19 to 54 years (which is considered to be
working group) to be the second greater
proportion of the residents which accounts
34%. In sum the dependency ration is high
in the study area.
Families in terms of relation with household
head shows that Children 74.8%,
Wife/Husband 4%, Brother/Sister 2.6%,
Other =3.2%
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Religion and Ethnicity
Ethnicity and religion are among the major socio-
characteristics of the population . In many cases
the way of life and aspect of economic activity
depend on the ethnicity and culture of the society .
More over knowledge of dominant ethnic, cultural
and religious groups in existing neighborhoods
could provide useful clues for exploring future
expansion and location of economic and social
activity. Such knowledge's are voluble for spatial
prediction ,especially in cities where ethnic ,
cultural and religious differences highly influence
the location choice of the urban dwellers.
The religious composition of household surveyed
almost all of the residents are belongs to Muslim
religion the remained are followers of orthodox
Christian constituting 83 and 17 percent
respectively. It implies, the religious places and
cemeteries availability and adequacy in the area
as well as considering the minorities interest to be
protected.
The population also clearly shows that the people
belongs to somali nation are clicked 76.8%,which
is about three forth of the total population.
Amhara , Oromo and southern nation nationalities
accounts 7.1%,14.8%, 1.8% respectively. The data
shows how strong homogeneity in terms of religion
exists in the area, which intern can be an
advantage to formulate the same and strong
method to communicate with the people to
successful intervention.
• 2.1.5. ETHNIC GROUP

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III.2 EDUCATIONAL ATTAINEMNT
It is well known that education is the most
important factor to bring about all round
development and means for better life. Therefore
, getting information on educational attainment of
the residents is necessary. The gathered data
shows from the total population 1.8 % are
categorized under Reading/Writing , 2.7 % are
attending their school at Kindergarten level.
Those who are in the status of Primary (1-8) level
are constituted 47.7 % which is the bigger share
of all followed by illiterate people having 33.3% ,
the remained Secondary (9-10/12) (5.4%) and
Tertiary (above 10/12) (9 %) collectively formed
about 14.4% from the total of 100percent.
 Percentage share of student population in Boren
is 21.9% it is very clear that , comparing with 59%
of the age group is under 14years and from those
79%are under the age group of 3- 14 which
should be in the school, student share is not as
excepted.
Students attending in Schools found in Boren
are 44.9% Remained students are attending in
15 different schools located out of Boren. Such
situation is occurred mainly two reasons
according to key informant discussion, one is
the location of boren jeden school is not
strategically centered for all the residents and
second reason is most squatter settlers children
are still enrolled in their previous schools.
Which implies the schools in the study area are
not adequate in number. School – pupil ratio
should be considered in the proposition of
schools in the LDP.
The data shows schools that are using for
boren students, owned by Governmental 78.9%
Private 15.8 % Religious institutions initiated
1.7 % Community 1.7 % Traditional (Kes) 1.7
%. It implies those students who goes to out of
boren is not because of seeking private or
community schools.

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II.3. Access to Social Services
Presence of social services is an essential ingredient of
life .The provision of public services is at its rudimentary
stage in Boren locality. With the exception of one
elementary school (grade 1-6) and its satellite school,
there are no high schools in the locality. Students have to
travel to the inner city area to get such schools.
Similarly, health facilities are not developed in the area.
Though a health post was constructed a few years ago in
the kebele, it could not be able to provide the intended
services owing to problems of health personnel and
budget. The kebele administration is not well organized
and staffed to provide the required basic public services.
Regarding the number of government staff, the kebele
has its own Chief Executive Officer, a kebele manager
and two cabinet members. There are no supportive or
technical staffs except one animal health assistant and
one health extension worker.
Only one part of the kebele administration has access to
water supply and much of the kebele uses underground
water both for household consumption and for domestic
animals. The rural residents are now fetching potable
water from Sabiyan kebele. Electricity services are also
not developed to the required level both for household
consumption and street lighting.
The other problem mentioned in relation to power
supply is lack of consultation and coordination among
the relevant sectoral offices such as Electric Power
Corporation, Water Supply and Sewerage Authority and
to some extent Telecommunication Corporation in the
course of their interventions. The erection of high
tension electric lines in Boren area with out the consent
of city administration was mentioned as a case in point.
The main reasons mentioned for the poor level of
electrification are said to be shortage of budget and
illegal settlements. The kebele is dissected by the
highway connecting Dire Dawa and Melka Jebdu. There
are no access roads and drainage structures.
There are no other forms of development associations
which can provide developmental services to the
communities.
Strengthening public services and utilities such as
schooling, health care, water supply and sanitation, and
construction of access roads should thus be given a
major focus in the study area.

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Schools
Jeden Ade is the only school in Boren site and
Boren satellite school also helps as a
temporary formal school. Boren jeden is
Situated on the area of 2000m2, which is very
wide and clean from any sound and air pollution
which can be a barrier of learning process.
Boren jeden is a Governmental school which
use to serves as Primary school which is from
grade 1 to 8. it is serving for 261 pupil, using 4
class rooms,18 teachers with Two sections.
Even if the school is serving with its full capacity
shortage of class rooms and teachers in
addition to distant location of the school, the
study needs further to propose some
arrangement and a solution for existing
problem. Education bureau of Dire Dawa have
a plan of expanding the number of class rooms
but not school.
Since 26% of the population is under age of 6
years, it is expected to be kindergarten to the
nearest of the neighborhood. The data shows
also there are significant number of secondary
school age people constituting 19 % . But there
is no kindergarten and secondary school in the
boren jeden site.
Age
category
Age
category
Descript
ion
Percent Projecte
d
populati
on
Existing
number
of
schools
Require
d no. of
schools
4 – 6 Kinderg
arten
school
age
13.5 ---
7 - 14 Primary
school
age
populati
on
32.9 1
15 - 18 Seconda
ry
school
age
populati
on
7.1 ---
total 33.5
Source: Dire Dawa Bureau of education

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According to the information obtained from Sabian
health center head, only one newly built health post is
exists in Boren jeden site, but it is not permanently
functional because of luck of health professional as
well as health facilities. The health post is now
health
serving only as satellite office of one
extension agent. The service is not up
standard of health post as well as need
people. Since the keble administration also
to the
of the
not
equipped with the necessary personnel, the health
post is not inspected to work effective and efficiently.
According to the information gathered from the
health post medical director(since boren is under the
responsibility of sabian health center )the health
bureau had a plan of adding only one health
extension worker. As per standard of ministry of
health for establishment of health center,, the boren
jeden people canuse the sabian health center, but if
the city needs to consider the people and spatial
conctraints , upgrading the health post in to health
center can be considered in the LDP.
Note: facility as per the per MOH standard
Health Center = 1:25,000
Hospital = 1: 250,000
Health facilities III.4. NGOs and Iddirs
As per the information obtained from Justice
office and kebele officials, there is no NGO
or Idirr association in the area, instead the
residents use the culture inter-aid of helping
each other.
III.5. Religious institutions
There are only three mosques . Among
them one is out of service

III.6 MAJOR SOCIO-ECONOMIC PROBLEMS
The following are the major socioeconomic
problems of Boren area:
 Boren area is a relatively calm and peaceful
quarter. But some problems such as Robbery and
beating are frequently occurs due to land conflict
and squatting. unemployment and old age
backed impoverishment are observed.
 Street lighting
 Vacant plots and houses
 173 crimes reported in Boren in 2001 Ec
 While 13.08%crime was committed by female, the
remain 86.02% was committed by men.(sabian
police)
 Problems identified by the sample survey include:
 Poverty = 27.8 %
 unemployment problems = 63.9%
 Lack of potable water =2.8%
 No problem = 2.8%
The focused group and key informant discussion
clearly indicated, water is the main problem of
Boren
Option for the relocation
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III.7. ATTITUDE TOWARDS DEVELOPMENT
Your vision for Boren

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III. 8 Summary of social issues for planning Considerations
The study area is highly affected by squatter
settlements (59%of the settlers were occupy the
place after 1997etc, which is most of the settlers
estimated to be illegal settlers.)
the team was learned that most of the residents
were benefited from illegal trade, but know
government is working effectively to control the illegal
trading . So that many people are unemployed. There
fore we can conclude that Poverty and
unemployment is found to be widespread . Not
less number of people are depended on remittance.
 Low income group households dominate the area
There is a need for intervention to accommodate
residents in the redevelopment scheme
 There is no support for few existed MSE operators

The assessment has shown that most
unemployed people have no idea about MSE, and
there is no bold government and non government
intervention for skill and seed money support .
The establishments of school and health centers
are very essential and demanding.
Law enforcement mechanism should be in place to
proper use of land keeping from illegal settlement.

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III.9 ECONOMIC ACTIVITIES in Dire
Dawa
Livestock
The rural kebeles of Dire Dawa have large
livestock population which is the main sources of
livelihood for rural residents.
Table 2.1 shows the number of livestock under the
jurisdiction of the city.
As can be seen from table -below, the inbound rural
kebeles do have considerable number of livestock
that can be transformed in to a modern system of
livestock production.
Crop Production
According to CSA annual agricultural sample survey
report of 2008/09, a total of 8159.2 ha. of land was
cultivated producing 105 ,051.39 qt.of grain in the
rural kebeles of Dire Dawa. The number of holders
was 15133 for grain production, the average area
per household being 0.52ha. for the same period.
The cropping pattern of the area indicate that crop
farming is practiced only during the main season
(meher) and the major crops produced are sorghum
and haricot beans.
S.
No.
Livestock
Types
Ethiopia Dire Dawa
1 Cattle 49,297.89 48.81
2 Sheep 25,017.22 43.18
3 Goats 21,884.22 122.01
4 Horses 1,787.21 -
5 Donkeys 5,421.89 13.13
6 Mules 373.52 -
7 Camels 759.69 5.50
8 Poultry 38,127.50 48.10
9 Beehives 5,149.24 0.89
Number and types of livestock 2008/09
(no.in 000′)

42
Trade and Industry in Dire Dawa
Dire Dawa has a long history of import–export trade
due to its proximity to Djibouti port and the presence
of the Ethio-Djibouti Railway line which connects
Addis Ababa with Djibouti via Dire Dawa. As a
result, trade and related activities have been the
main economic activities of the city.
The amount of revenue collected by the bureau
from trade services in 2006/7 was Br. 278,004.
Bureau of Trade and Industry annual report of the
year 2008/09 reveals that from a total of 5,336
business establishments only 1954 operators
(36.6%) were found to be legally registered and the
majority of the businesses assessed were found to
be illegal. This has its own implications on city revenue
and results in unfair competition among business
establishments.
Data obtained from the city Bureau of Finance and
Economic Development indicate that in 2006/7 there
were 1585 business enterprises categorized under 14
industrial categories the large majority being transport,
storage and communication followed by wholesale and
retail trade.
To upgrade the skills of micro and small enterprise
operators and new entrants, Dire Dawa city Micro and
Small Enterprise Development Agency has provided 8
types of vocational and technical training for 7,926
people from 2004/05-2006/07.

43
Issued Renewed and Returned business licenses 2004/05-2006/07
Type of
business
Issued Renewed Returned
2004/5 2005/6 2006/7 2004/5 2005/6 2006/7 2004/5 2005/6 2006/7
Wholesale 99 143 227 53 82 53 6 7 5
Retail 554 821 440 758 1009 838 22 49 36
Service 562 888 958 708 848 833 48 45 191
Total 1215 1852 1625 1519 1939 1724 76 101 232
Source:- Dire Dawa city Bureau of Finance and Economic Development

44
The performance of the city in tourist attraction shows
that the city has a good potential of tourism from all over
the world. Its proximity to the port of Djibouti provides
the city with a comparative advantage of attracting even
more tourists than other cities in the country. Hence,
maximizing such endowment will be strategic.
S
.
N
o
.
Country/
continent
Number of Tourists
2005/06 2006/07
1 Djibouti 4303 6604
2 Other African
countries
478 480
3 Europe 918 1350
4 North and
South America
454 626
5 Asia and
Middle East
204 342
6 Australia 15 140
Total 6372 9542
Number of International tourists by country of origin
Tourism in Dire Dawa
Dire Dawa is richly endowed with cultural and historical
heritages which could serve as tourist attractions.
According to the Bureau of Finance and Economic
Development,
There are about 16 tourist attraction sites registered by
the city’s Department of Tourism. Because of its various
tourist attractions, the city was able to attract 9,542
foreign tourists drawn from all over the world. The
number and origin of tourists who visited the city is
depicted in table------here under.
Source: - Dire Dawa city Bureau of Finance and Economic
Development

Finance and municipal revenue
Sources of the city revenue include Federal
Government subsidy (block grant) and collections
from own revenue sources. The average share of
Federal block grant to the total city revenue in the
years between 2003/04-2006/07 was about 72.9%.
The share of federal and local revenue is depicted
in the following figure.
The city revenue from both sources has shown a steady
growth in the last 5 years. The total amount of revenue
collected from both sources has increased from Birr
45
103.45 million to Birr 213.22 million, showing an
increment of 200%. However this does not mean that the
city has attained a highest achievement in revenue
collection from its own sources.
The city has achieved 86.46% of its planned revenue
budget in the year 2007/08. As pointed out earlier, illegal
trading practices will all account to under performance in
city revenue collection. Strengthening own revenue
collection efforts would therefore be instrumental for a
self financing sustainable urban development.
Micro Finance Institutions
Microfinance institutions play a significant role in urban
poverty reduction program. According to the data
obtained from Bureau of Finance and Economic
Development, Dire Micro Finance S.C. has distributed
loans to 9 inner city kebeles.
The company had extended a total amount of Birr 1.82
Million loan for 1,157 beneficiaries in the year 2004/5.
The amount of credit provision was reduced to Birr 1.19
Million while the number of beneficiaries was reduced to
624 indicating a 34.6% and 85 % reduction respectively.

46
Investment Activities in
Dire Dawa
According to the data obtained from
the Department of Investment of the
city, various investment activities are
undertaking in Dire Dawa. The types
and number of licensed investment
projects, the registered capital and
the expected job opportunities of the
projects are summarized in table
below.
The table shows that in
number of projects, the
issued in 2007/08 were
terms of
licenses
generally
increasing in all sectors as compared
to the preceding year. The number of
projects has increased from 81 to
207, showing a growth rate of 155%,
while the registered capital has
grown to Br. 662.91 Million showing
an average annual growth rate of
97.3% in three years. Lack of data on
the current status of projects could
not allow the consultant to assess
how many of the projects are at per
investment stage, under
implementation or operational level.
Type of
project
2005/06 2006/07 2007/08
No.
proj.
Capit
al
Job
oppo.
No.
proj
capita
l
Job
oppo.
No.
proj
capita
l
Job
oppor
.
Agricultur
e 13 11.86 299
8 8.956 337 21 35.04 705
Industry 48 109.4 1985
34 91.608 1826 62 147.79 2272
Real
Estate 3 5.6 93
31 458.18 1997 48 104.13 1755
Trade 2 2.67 74
20 74.158 515 17 175.63 554
Hotel &
Tourism 7 18.1 314
10 70.805 1333 24 90..08 1074
Constructi
on 6 37.1 241
4 48.93 426 21 140.63 1195
Education 2 1.89 36
6 1..343 155 11 13.2 362
Health 2 0.78 26
1 5.50 34 3 10.49 88
Total 81 187.4 3042
114 758.14 6623 207 662.91 8005

47
III.10 ECONOMIC CONDITIONS OF
BOREN
III.10.1 Economic activities
According to the information obtained from the
kebele administration, livestock raising and crop
production are the main sources of livelihood.
The economic base of the locality is animal
husbandry and sorghum production.
Though livelihood of the local community is semi
pastoralist agriculture, animal herders
(pastoralists) do not usually move their families
and animals except during drought seasons in
search of grazing lands and water.
Livestock production
Different types of livestock are owned by
households in the study area. A typical heard in
the study locality contains cattle, sheep, goats,
camels, and donkeys. Data obtained from the
kebele administration reveal that an estimated
1205 cattle, 2950 goats, 2650 sheep, 215
camels and 290 donkeys were raised in the
kebele during the year 2008/9.
Type of animals number
Cattle 1205
Goats 2950
Sheep 2650
Camels 215
Donkeys 290
The prime roles of cattle are supplying dairy products
and draught power for cultivation of sorghum. Cattle and
sheep fattening is seldom exercised by semi pastoralist
farmers. Equines like camel and donkeys are mainly
used for the transport of goods and people while goats
and sheep are the main sources of cash income from
sales. Marketing of live animals and animal products is
conducted in main city.
The type of animal husbandry practiced in the area is
more or less the same as that of pastoralists in the
periphery areas. Market oriented modern dairy
production and fattening are not practiced to meet the
urban demand for animal products. Similarly, the raising
of cross breed animals doesn’t exist.
Source:-Boren kebele Administration

48
The major source of animal feed is open grazing of
native pasture supplemented by crop residue. Only
a very few households provide their animals with
modern animal feed. The number of livestock owned
by farm families is not matched with available
resources resulting in over grazing of land. Animals
are seen as valuable assets because the semi
pastoralists meet their day to day expenditure
requirements by selling animals and animal
products.
Crop Production
As part of the suburb rural kebeles, grain crops are
produced in Boren locality. Subsistence rain fed
agriculture is to a limited scale supplemented by
permanent fruit crops produced in some parts of the
kebele.
However, small scale irrigation is not practiced in the
kebele. Modern farm inputs are not used by farmers
and the type of agriculture both in livestock and crop
production is not market oriented or commercial
type. Therefore, the subsistence nature of
production system could not be able to benefit much
the semi-pastoral families.
Trade and non- farm economic activities
Economic diversification enables poor families
to build resilience to shocks and creates a
vibrant economy which strives to employ the
available resources. According to our sample
survey, there are one hollow block producing
plant and 11 small retail shops operating in the
area. Public or privately owned open markets,
service stations, super markets, flour mills,
hotels etc… are not available in Boren.
Business establishments are limited in number
and non farm economic activities are almost
non- existing in Boren locality. Micro and small
enterprises (MSEs) be it in the area of productive
activities or services are not developed in the area.

49
III. 10.2 EMPLOYMENT AND INCOME
The data obtained from sampled households
indicate that there is a 34% unemployment showing
a high level of dependency rates. Only 8.9% of
sampled population was reported employed
 Government employees = 3.9%
 Formal business men =1.9%
 Vendors = 1.9%
 Pastoral = 0.6
 NGO = 0.6%
III.10.3 SOURCE & LEVEL OF INCOME
Regarding the source of income, 22.2% of
the sampled heads households is derived
from salary in private and public
organizations, while business profit income
contribute 36.1%.
Remittance, Agriculture and Pension income
constitute 13.9,11.1 &2.8% respectively.
The saving pattern in the sampled households
91.7% have no saving,
banks and 2.8% in other
indicate that
5.6%Save in
savings.

Household annual income in Boren LDP area
Source:-Field survey data
50

51
III.11 Perceptions, problems, visions and
opportunities of Boren Locality
Perceptions, problems and visions
In the discussions held with the relevant stakeholders
about the Boren locality, it was learned that, the area is
meant for urban expansion mainly for residential
purpose. There are no market places and public
services are not well developed. Like the other target
groups, the kebele administration also perceives that
urban expansion is expected in the kebele and the
communities are psychologically prepared to
accommodate changes in land use.
According to the kebele administration, the major
problems of the locality in accordance with priority are:
•Water supply both for humans and livestock
•Health service
•Access roads
•Electricity supply
•Schooling and
•Community latrines
The vision of the city is “to make Dire Dawa clean,
beautiful and comfortable to its residents”. Inline with
this, the vision of the kebele administration about Boren
is “to make it an industrial and modern residential area
with adequate public services
Nearly all respondents agree that the city had a
glorious past and the current trend is a
declining one especially as compared to the
growth rate of other regional cities. They added
that this scenario has to be changed so as to
enable the city play its role in the country’s
urban higherarchy. To this end, officials of the
city and kebele administration, members of the
business community, and relevant experts
drown from relevant secoral offices and the city
residents all agree that the following current
problems of the city deserve due attention of all
stakeholders.
The major problems are said
expansion of illegal settlement,
poverty, massive unemployment,
to include:
utter urban
central city
decay and problems of proper land
management as a result of lack of clear
demarcation of the city boundaries. Because of
the loose control over the suburb areas illegal
land invasion and squatting is rampant. The
new expansion of residential land is said to
have ethnic dimensions/patterns which affect
the age old mixed type of residential areas.
Legally organized and certified housing
cooperatives could not be able to get the
required residential plots.

52
Opportunities and threats of Boren
Proximity to market and the willingness of the local
communities to participate in and benefit from urban
expansion and the availability of power supply in the
kebele jurisdiction can be regarded as an
opportunity for future growth.
One point mentioned as a threat is absence or
delay in payment of compensations to be paid for
pastoralists for their lands. (The case of the land
taken for the purpose of hospital construction was
mentioned during the discussion). The other threat
mentioned in connection with payment of
compensations is provision of money without
adequate awareness creation and training about
how to utilize financial resources and transform the
livelihood of the communities which might be
affected in the form of displacement or relocation.
They also mentioned the need for holding
discussions with the neighboring Shinile zone of
Somali Regional State to avoid possible disputes.
The other stakeholders have also emphasized the
need for providing compensations for the land (in
cash and on replacement bases) when ever taken
for public purposes. It was also mentioned that a
coordinated effort of all governmental and non
governmental institutions operating in the area is
required to make the local development plan a
reality.
Participants of the focus group discussions have also
underlined the need for acquiring the necessary financial
resources both from internal (through enhancing city
revenue collection) and external sources (grants and
loans).
Respondents at all levels mentioned that any intervention
of the local development plan (LDP) should be designed
in such away as to minimize social costs through
consultations, and participatory and “win - win”
development approach which as much as possible does
not marginalize a part of the urban community.

53
III.12 Summary Economic issues for
planning Considerations
A. Rural urban Linkage
The linkage between rural and urban areas is crucial for
successful and sustainable development. The inner city
of urban centers is places where pastoralists/farmers get
their agricultural inputs, sell their products and buy
essential consumer goods and services for their life.
They provide non-farm employment opportunity for
suburban areas and also serve as the main sources of
information and social interaction. The inner city has to
be linked with the surrounding suburban areas through
collection and distribution systems.
Linkages that emanate from suburban areas impact on
the urban center and non-agricultural activities. These
linkages have spatial and sectoral dimensions. The
spatial dimensions are manifested in terms of flow of
goods, people, capital and urban waste etc. between
rural and urban areas. Inter sectoral relationship refers to
the different production and consumption linkages
.
B. Prerequisites for Integrated Urban- Rural
Development
The prerequisites for integrated urban- rural development
include spatial integration, agricultural expansion,
infrastructure development, strengthening local
administration and expansion of non-farm employment
opportunities among others.
- Spatial Integration
The inner city needs to be interwoven vertically and
horizontally with each other through adequate transport
and infrastructure. Integrated central areas diffuse
development impulse to the surrounding suburbs. Free
mobility of people, capital and commodities have to be
encouraged to intensify the links between the inner city
and vicinity areas.
- Agricultural Expansion
As pointed out earlier, the current economic base of
Boren kebele is subsistence agriculture.
Improved agricultural practices and expansion of urban
agriculture can raise production and productivity to feed
the urban center. To this end, overcoming the constraints
such as technology, finance, etc. is helpful in order to
bring about a symbiotic development between the inner
city and the suburb kebeles of Dire Dawa.

54
- Physical Infrastructure
A modern economy depends on efficient transport and
communications which link rural producers, service
providers, marketing firms and urban businesses. Good
roads connecting urban areas and central city are
needed to integrate the rural economy with the urban
network.
- Strengthening local administration
The kebele administration is not in a position to provide
the developmental and administrative services expected
of it. It should thus be given the legal basis and authority
as well as the corresponding budgetary support to
shoulder the responsibilities it is facing. Exercising
decentralized decision making on issues related to the
local communities makes it more responsive to local
needs and accountable to the community. In this regard,
a participatory approach and inclusiveness are vital
elements so as to build trust among stakeholders at all
levels. By any standard the linkage between Boren
locality to the inner city seems to be week as a result of
the aforementioned problems.
- Non-farm employment
Attracting private investment would benefit local
communities in various ways. It can create jobs, raise
incomes and cross subsidize the poor. Private
investment is not yet expanded in Boren.
Rural cottage industries and micro and small enterprises
(MSEs) require relatively small seed money and working
capital. Yet, they can generate wider employment and
bring about equitable distribution of income, thereby
enhance economic efficiency.

55
In terms of employment generation, non farm economic
activities provide employment which demand close
interaction between suburbs and the inner city. However,
non-farm employment opportunities are not flourishing in
the area under study.
Rural CBOs, credit and saving institutions, are not
available in the area. A farmer’s service cooperative was
established only recently. Social institutions such as Idir
are involved only in burial activities. In places where lack
of resources is a major constraining factor of
development, enhancing resource availability for MSEs
through credit is the preferred mode of operation. The
use of credit will enhance pastoral productivity as it
enables the pastoralists to purchase farm inputs or other
necessary items for life. Concomitant to credit in
development process is saving. While credit alleviates
resource constraints, saving enables capital formation.
- Food security
Food insecurity arises primarily because of inadequate
own production and low purchasing power. The problem
of food shortage may not be uniformly distributed over
the whole year. Low level of productivity and vulnerability
to natural calamities had made the kebele food insecure.
.The area is prone to frequent drought which worsens the
frequent drought which worsens the food insecurity
problem of the kebele. Households face serious food
shortage problem during some months of the year while
they may be food secure during other months.
The copping mechanisms for food insecurity are safety
net program and movement of livestock to better pasture
areas. Due to low level of rural- urban linkage, wage
employment of rural labor force in the inner city is very
minimal. As a result, food aid which covers some
residents of the kebele has become the only source of
income outside own farming activities.
C Land use vision for Boren locality
The participants of the consultative meeting, the
interviewed government officials as well as other target
groups and residents were asked about the possible
future uses of the urban land in Boren kebele. They
responded that the current sub optimal land utilization
has to be altered in a manner that can address the
shortage of residential areas in the city, expands main
roads and opening new access roads, deters illegal
settlements, promotes private investment in hotel and
tourism, and provision of adequate public services to
satisfy the increasing inflow of people.
•

56
The other proposed land use of Boren locality is
expansion of modern agriculture including horticulture
and high value crops, livestock production (modern
dairy production and fattening) and promotion of small
scale irrigation. All these can contribute towards making
the town an export processing and service center in
connection with modern rail way expansion.

IV.1 Vision
The vision of Boren LDP has been formulated
based on a thorough assessment of the physical,
spatial, social and economic aspects of the area.
As well as the IDP of Dire Dawa. In the LDP,
Boren area has been identified as one of the
expansion area of Dire Dawa.
Accordingly, the following 2 options are
recommended as a vision
Vision
Option 1: modern residential and
economical active area with adequate
public services.
Option 2:Exapansion area of Dire Dawa
with modern urban Agriculture
IV.2 Bold Concepts
58
1. Expansion area
2. Economic activity
3. Resolving the socioeconomic problem
4. Infrastructure and Service provision
5. Connectivity
6. Land mark and legibility
7. Greening and recreation
8. Administrative serves and capacity building
9. Solution for high tension
10. market center for goods and live stock.

Conceptual Plan: Scenario 2
Business area
Mixed
residence
Green area
Pure residence
Legend
Services
Parks , green along river
Urban Agriculture
Arterial
Major Collector
Minor Collector
Park
Conceptual Plan: Scenario 1
59

IV.3The adopted Conceptual Plan and vision
The conceptual and vision proposals of part Vi have
been discussed in the stakeholder workshop of
December 18, 2009 gathering the different relevant
bodies of the Dire Dawa city administration to decide on
the appropriate option.
The city has opted for merged vision and concept
2which provides residential and economical active area
with adequate public services as well as modern urban
agriculture. The adopted concept accepts maintaining
the High Tension Line.
The LDP of Megala is planned based on the agreed
concept and vision.
Adopted Vision
Modern residential and economical active area with
adequate public services and modern urban
agriculture
Adopted Concept Plan
60

62
V.1 Proposed land use
such as laundry, garages and the like. The major hospital plot is
proposed out side the high tension zone and can be
accommodate all medical services.
Table32: Proposed land use distribution
The land use of Boren LDp area is designed based on the
following three factors
-The structure plan of Dire Dawa
- the constraints of the site : high tension, hills, etc
- the potential of the area
As shown in the next table, the land use distribution is well
balanced with residential, mixed, business , manufacturing,
services and administration uses.
A green buffer is provided for the high tension line to be
covered only with grass and flower. No tree and buildings are
authorized in the buffer.
The mixed use covers 18% and the residential in total covers 1/3
of the land use of the area.
The road coverage covers 25% of the area with good
connectivity and better road hierarchy.
The service land use accounts for 12% of the total land use. The
referral hospital is one of the major services of Boren LDP area
which is proposed in two adjacent areas. This is because of the
fact that the construction of referral hospital is already started in
between of the two high tension lines. For the sake of adaptation
to the current situation, the area where the construction is
currently commenced can be annex hospital plot with functions
Land use Area (ha) %
ADMINISTRATION 0.5 0,1%
COMMERECE AND TRDE 23.8 6,9%
MANUFACTURING & STORAGE 25.8 7,5%
MIXED RESIDENCE 59.9 17,5%
PURE RESIDENCE 49.6 14,5%
RECREATION AND FORMAL
GREEN 9.64 2,8%
RIVER 0.16 0,0%
SERVICES 48.6 14,2%
Green BUFER for high tension 18,5 5,4%
Road 84.5 24,6%
Urban agriculture 21.9 6,4%
Total 343 100,0%

63
Proposed land use of Boren LDP area
As indicated in the adopted vision, ,the urban
agriculture is one of the proposed activity of the
area. It will help to ensure a smooth transition of
the semi pastoral activity to urban activity. The
urban agriculture is proposed in the area where
there is a river and the land is better to be utilized
for urban agriculture related activities such as
animal fattening, dairy, poultry, etc.
The parcelation of the residential and mixed land
use has been conducted by considering a plot
depth of 18 and 20 meters which can be used
for plot size ranging.
Special care is made to ensure compatibility of
land uses between services and others such as
cemeteries and worship places as compared to
residence and other services.
Open market of 6.3 ha and cattle market of 3.3
ha has been planned to serve the area and its
adjacent neighborhood

V.2 Proposed Road network and circulation
The road proposal for Boren LDP area covers 29% of
the total area. This will ensure good connectivity and
proper road hierarchy as shown in the table below.
The road network is proposed to be accompanied with
trees and streetlights. Moreover, public transport of
city buses and mini buses will serve the area.
Table35: The hierarchy of the proposed road
Road type width length %
LOCAL ROAD 10 44125,23 45,5%
COLLECT0R 15 4953,554 7,7%
PRINCIPAL ARTERIAL 50 1304,957 6,7%
SUB ARTERIAL 30 12959,6 40,1%
63343,34 100% 64

65
V.3 Urban Design Brief
Boren LDP

66
V.3.1 Regulations of the LDP
The regulation of Boren LDP has provided
sets of regulation in the regulation map.
- Land use
- building height
- Typology
-Building lines
- Setback
-BAR
the following
Building Height Regulation:
The height proposal of Boren LDP is determined based on
the land use, the width of the adjacent road and the
affordability of the population.
Accordingly,
-The business building will have G+1-G+5 on the sub
arterial road and G+3-7 on the principal arterial road
- the pure residence and mixed will have G+0-G+2/3
- services will have G+0-G+4
Typology
The typology regulation of Boren provides
provision to ensure continuity of buildings
depending on the need of such urban forum.
Accordingly, the regulation map proposes the
following two typological regulations:
- Attached buildings on the major business corridors
- Optional building typology on the remaining part of
the LDP area where attached or detached
typologies can be applied depending on the need
and the building codes.

67
Regulation map of Boren LDP area

68
Building line Regulation
Setback affects plot coverage, the distance between
facing buildings, street character and enclosure, and it
helps to ensure flexibility during implementation.
The following factors are considered in determining the
building line:
-The land use of the area in which business and
services are especially required to have adequate
setback for parking, street café,
-Building form and buildings to street relation: create a
strong relationship between buildings and streets, both
by use and form.
-Street level activities: space required for street level
activities such as window shopping
-Building height which may require a setback when the
road width is not adequate
Accordingly the following building lines are regulated by
the LDP:
-Compulsory building lines which is the line on which
the frontage of the building ends. The compulsory
building lines re proposed for buildings along the
principal arterial and sub arterial roads to ensure a
properly defined building form
- Optional building lines are proposed for the inner part
and mixed, administrative and services land-uses.
This helps to provide flexible regulation while
maintaining the minimum urban forum.
Set back
Setback of buildings is proposed by the LDP to ensure
a pleasant urban life and street to building relation.
Accordingly, the following setback are proposed
-Compulsory and Null setback is proposed for building
along the principal road
-a setback of 5 meter is proposed for building along
the sub arterial road and for services
-optional and Null setback for mixed and pure
residence

69
BAR
BAR is the proportion of the area occupied by the
building to the total area of the plot
Built to Area Ration (BAR) directly affects plot
coverage, mass of buildings. In conjunction with
building height, it determines the maximum Floor
Area to Plot Area Ratio (FAR) and in general it affects
the built-up density of an area.
BAR values each block is determined by considering
the following points:
location, land value and land-use
 setback and backyard space
 building height
Based on the above considerations, optimum BAR
ranges are proposed for each block. The following
table provides the proposed BAR for each category
of land-use, location and factors that determined BAR
for each block.
BAR
Range Land-uses Factors that affect BAR
60-80% Commerce
-Car parking
-Service area
40-70% Mixed–use
-Children playground;
-Common & service area
-Setbacks for privacy;
-Natural ventilation & light;
-Car parking
30-60% Service
-Service & car parking area
-Green area & public art
30-70% Administration
-Service & car parking area
-Place for public art
40-60% Résidence
-Children playground;
-Common & service area
-Car parking
Summary of proposed BAR

70
V.3.2 Urban Design recommendations
The Urban design proposal of the area aims to ensure
a good urban quality coupled with efficiency.
Accordingly, the following are the major urban design
proposal for Boren are:
-A liveable neighborhood with green, services and
safe and agreeable pedestrian walkway : a residential
area dynamic but calm.
- safe and a well integrated high tension line: the
high tension line should be well integrated with grass
and flowers. It
.
- Legibility: as an expansion area, Boren requires
Landmark structures, gateway points and clarity of
signage to improve people’s ability to find their way in
and ensure the attractively of the area.
-Connectivity : the area should be well connected to
Sabain and Melka Gebdu in physical and services
distribution pattern connected and continued both by
the form and use.
Human street : Street amenities and furniture - litter
bins, seating, bollards, bus stops… should be carefully
integrated into the street scene
Greening for Microclimate: Proposals should work with
the natural elements to provide sufficient shelter and
exposure to sunlight and prevent the creation of
underused public areas.
Well integrated Signage: Design signs and notice
boards well integrated to the urban forum.
Use appropriate facade wall materials: the façade
materials should be adopted to the climate of Dire Dawa.
Excessive use of glazing is to avoid since it creates hot
climate inside the buildings and in the city.
Lighting: Lighting the Boren area is important create a
perception of safety, attractvity and promote night time
activities. The use of white light sources will be
encouraged
Safety and Security: A ‘crime designing out’ approach
can help improve sense of security and safety and
encourage people to use its facilities during night.
Apply the regulation of LDP: the serious
implementation of the LDP regulation in the height,
BAR, Setback, building lines and typologies will ensure
to obtain a good urban quality.

71
Urban design proposals Boren Three dimensional models and views

72
V.4 Socio Economic Development
The socio economic problems identified in the
LDP study are unemployment, poverty, shortage
of health service and schools, portable water
supply, and market access. Most of the area is
characterized by squatter settlements without
adequate road access. In order to alleviate the
current major socio economic problems of Boren
locality and to make it a modern expansion area
of the city, selected intervention areas are
identified. The development interventions are
expected to involve the local community, the city
administration, private investors and NGOs.
Proposed socio economic activities in the LDP
As mentioned in the LDP study of Boren, the area
is intended to serve as a major expansion area
which can host possible displaced people as a
result of redevelopments in the inner city. The
estimated number of people to be relocated in
Boren is 15,000.
1. Economic Activities
1.1 Micro and Small Enterprises (MSEs)
development
Importance
• Micro and Small Enterprises are business
undertakings which have production function or
trading activities. They are identified from large
scale ones by their size and using economic
control criteria. The size criterion of defining MSE
is based on attributes such as number of
employees, sales volume, asset size, etc. while
the economic control criteria include market
share, business entity (owner control of the
business), and proprietorship type of business
management.
• The definition of MSEs varies across countries
based on the above criteria. However, the
number of employees and/or capital investment is
used as the basis for defining MSEs. According
to FeMSEDA′s definition, in Ethiopia, enterprises
with a paid up capital of less than Birr 20,000 are
regarded as Micro and those having a paid up
capital of Birr 20,000-5,000,000 are categorized
under the Small enterprises. MSEs play a very
crucial role in economic development in both the
developed and developing countries. They use
simple technology. High tech enterprises and
consulting firms are not included in the definition
of MSEs.

73
• Micro and Small Enterprises (MSEs) development is
one of the basic strategy for tackling urban poverty and
unemployment. They provide a wide range of new jobs
using relatively small amount of capital to operating
them. By their very nature, MSEs are labour intensive
which in most cases can be operated in mixed
residential areas without much harm on their
environment. They may be operated by formally
educated people or people with experience based skills
and by those who are engaged in the informal sector.
• MSEs can stimulate innovation and entrepreneurship
skills that are very basic elements which create a
vibrant and dynamic economic growth. They also
stimulate economic competition among similar firms
and serve as a basis for bigger business
establishments by serving as a learning institution.
MSEs assist big firms in supply and distribution
functions where the former can not efficiently perform
since it focuses on its main tasks. In general, they
provide goods and services required by the economy.
• The major sectors selected at national level in which
MSEs operators are engaged are construction, Metal
and wood work, Textile and garment, Food processing
Urban agriculture and Municipal services.
a) Construction
The MSEs in the sector include cement products
manufacturing (hollow block, precast beams, concrete
pipes, electric and sanitary installation, finishing, etc
and production of crushed stone and cobble stones).
Manufacturing cement products requires work shops
(shade) and different appliances while cobble stone
production requires provision of convenient quarry site
for stones. The cement products manufacturing
workshop needs about 50 mt2 of plot of land with shade
for a group of 15-25 youth.
b) Metal and wood work
These activities have multifaceted benefits
both for the operators as well as the growing
need for the products they produce. Metal
works include, metal furniture production,
metal construction work, sheet metal work,
welding work, and machine fabrication. Wood
work focus on the production of all types of
wood products for construction activities as
well as household and office furniture. The
activity demands about 12 mt.2 of land shaded
with corrugated iron sheet for one work group
consisting 5-7 youngsters. The experiences
in Addis Ababa indicate that wood, metal and
construction are organized in one cluster to
enhance efficiency and competitiveness.
c) Textile and garments
These activities involve traditional spinning of
cotton, weaving hand loom products, dying
and sewing to produce traditional cloths. The
production activities can be carried out in and
around homestead while the garments need
convenient market places including Sunday
markets. Leather and leather products are
one of the potential economic activities that
can be promoted in an area rich in livestock
resource.

74
d) Food processing
This is another area of MSE selected due to
its labour intensive nature which requires a
relatively small plot of land around
homestead to operate on individual bases. At
a wider scale, the operators in this activity
can be organized in clusters to make it
accessible for follow up and support.
e) Municipal services
These include economic activities such as
solid waste collection, disposal and
composing activities which can be performed
on marginal lands.
f) Urban Agriculture
Feasible urban agricultural activities can be
conducted in the locality. This may include
fattening, dairy production, and poultry. The
estimated land requirement for urban
agriculture including the above mentioned
three types of activities is about 800 m2.

75
Table1 Manpower, Land and capital requirement of selected activities
S/N Sector Manpower (No) Land (m2)
Initital Capital (Br)
Total
Machinery Working Capital
A Construction
1 Precast beam 42 1000-1500 161,250.00 106,277.00 267,527.00
2 Hollow block 15 800-1000 57,240.00 48,290.00 105,530.00
3 Crushed stone 20 5000 124,360.00 39,751.00 164,111.00
4 Wall Construction 10 20 15,858.00 15,858.00
5 Electric Installation 20 20 9,640.00 9,640.00
6 Sanitary Installation 10 20 6,791.00 6,791.00
7 Painting 10 2,585.00 2,585.00
B Wood & Metal work -
8 Wood work 10 64 17,907.00 1,221.00 19,128.00
9 Metal work 10 40 51,692.00 4,104.00 55,796.00
C Textile & Garment -
10 Weaving 10 40 70,440.00 70,440.00
11 Garment 10 20 178,170.00 178,170.00
12 Leather & Leather products 10 40 36,000.00 36,000.00
D Food processing
13 Injera baking 10 48 9225 5450 14675
14 Bread and Ambasha 10 4.8 30895 10730 41625
E Municipal Services
15 Solid waste collection 10 25 14,520.00 14,520.00
16 Composting 10 30 2,026.00 2,026.00
F Urban Agriculture
17 DairyFarm 10 300 104,516.00 10,484.00 115,000.00
18 Poultry farm 10 500 78,247.00 8,753.00 87,000.00
Source:- FeMSEDA MSEs woking manuals,2007 A.A

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1.1.2 MSEs Selected to be implemented in
Boren
• Though all types of MSEs have their own
benefits in curbing the problems of the localities
stated earlier, the consultant has selected and
proposed 10 most fitted projects from a list of 18
projects to be implemented upon approval.
These are:-
1. production of Precast beam
2. Hollow block
3. Crushed stone production
4. Wood work
5. Metal work.
6. Food processing
7. Leather & Leather products
8. Solid waste collection
9. Dairy Farm
10. Poultry farm
1.1.3 The rationales for selection of the projects
• The first five projects (production of Precast
beam, Hollow block, Crushed stone production,
Wood and Metal work) in the construction sector
are very compatible with the redevelopment
plans to be conducted in the city. Wood and
metal works are also very important components
of the booming construction sector. The focus of
this sector will be on the production of wood and
metal products required as inputs for
construction.
• Processing traditional food such as Injera, Ambasha
and bread can be good source of income especially
for unemployed poor women. In an urban life every
household may not be expected to prepare such
edible items. Rather semi processed products are
also beneficial to the producers and consumers.
The indigenous knowledge inherent in the society in
such activities can be up scaled to commercial
engagement.
• From the textile and garment sector, Leather &
Leather products processing is selected based on
the rich livestock population of the area which can
serve as a reliable resource base.
• Municipal services specifically solid waste collection
is selected to keep the city clean. This activity can
create income and employment to the urban poor.
• Urban agriculture is a very important activity not
only in income and employment generation but also
in improving the dietary intake of residents. It is a
viable option for those who may need to transform
their current traditional animal husbandry practice to
a modern market based production system. Though
livestock resource is abundant in the area, modern
dairy farming is not practiced in the locality.
Therefore this intervention can insist the semi-
pastoralists of the locality to change their way of life
to an intensive modern agriculture.

77
• The selected MSEs need a total land area of about
7800-8500 m2 for all projects in which a group of
ten people organized in 8 MSEs while the remaining
three consist 42, 15 and 20 group members each.
The estimated amount of finance required for
machinery (equipment) and for working capital is Br.
685,852 and Br. 215,823 respectively. In totality Br.
901,675 is required to finance the selected MSEs.
The number of working groups to be organized will
depend on the available financial resource.
1.1.4 Selected supports to enhance MSE and
related activities
• For micro and small enterprises to be successfully
implemented, a concerted effort of all stakeholders
will be very vital. Some of the most important
support packages are listed in the following
paragraphs.
 Organizing:- people who operate or are willing
and able to be engaged in the sector have to be
organized to exert their joint effort in the
development process in addition to assisting
those who are operating on individual bases.
Organizing in groups can also enable
monitoring and technical support more easy.
 Training in entrepreneurship, skills and
management:- training current and potential
operators to upgrade their skills and managerial
capabilities is a vital component in promoting
MSEs.
 Access to finance:- absence or shortage of seed
money/working capital is one of the basic inputs
required to operate MSEs. One possible source of
finance in the city is Dire Micro finance.
 Working premise:- provision of working premise is
another vital issue to deal with MSEs expansion.
Formation of clusters and building workshops
equipped with necessary facilities is one of the
intervention areas to support the sector.
 Marketing link:- Linking small and micro
enterprises with larger enterprises as a source of
input and supplies can create sustainable market
opportunity for MSEs.
 Assess and disseminate appropriate
technology:- MSEs have to use appropriate
technology to be profitable and competitive in the
market. To this end assessment, selection and
dissemination of appropriate productive technology
will be crucial.
 Market shades: - Most of the MSEs promoted in
urban areas require conducive working
environment. In this regard, building shades for
working premise and for marketing their produce
(as the nature of the activity demands) will be
inevitable.
 Access to information and advice:- Modern
business in a competitive market has to make
informed decisions on what to produce, how much
to produce and the pricing of the produces. To do
so, market information and technical advice plays a
vital role.

78
2. Establishment of open markets
1. Cattle, goats and sheep market
Since there are no open markets for semi pastoral
communities who live in the suburb areas of the city, it
will be of vital importance to establish a well fenced
modern open market on an estimated area of 2 ha. The
establishment of such markets on appropriate sites can
stimulate local economic growth through the creation of
backward and forward linkages. Besides creating a neat
and convenient site for semi pastoralists in the area, the
market site can also create a source of finance in the
form of tax.
2. Open markets and shades for retailers
Open markets and shades are one focus area for street
vendors (guilt traders) and small retailers who are
engaged in the informal and petty trading activities.
They are very important economic activities which
create livelihoods for the urban poor. Recognition and
support is deemed to be worthy for this segment of
society especially in designing urban renewal. Hence an
intervention is required to promote them.
2. Social Services
1. Population projection
According to the 2007 CSA population and housing
census report , the total population of Dire Dawa is
342,827, of which, 232854 (68%) is urban and 32% is
rural. The following assumptions are taken to project the
student population.

79
Assumptions
• Boren locality will be able to accommodate
15,000 to be relocated from other areas a
result of redevelopment and urban expansion;
• The people to be relocated have similar trends
of average family size;
• Population dynamics will persist on the existing
pattern (birth rate, death rate, migration will
remain consistent with the city average);
• The average family size and proportion of the
population is taken from the 2007 population
and housing census results;
• School age population enrollment will be as per
the policy and directives of Ministry of
Education.
• Based on the census results and the expected
number of population the required educational
and health facilities as well as other social
utilities are proposed here under.
2.2 Education
• Taking in to account the number of people to be
relocated and the existing educational facilities in the
locality, the required additional public and private
schools are estimated as follows. As can be
observed from the table below, the total number of
children in the urban portion of the administration
from age 4-6 is 14,425.
• Assuming the same proportion to the city average,
929 children are expected to be relocated with their
families to Boren. Hence at least three Kinder Garten
are required which may be supplied by the private
sector if promotion works are performed by the
concerned government office.

80
Table 3 Projection of student population
Age
group
Total
Urban
population
232,854
percent
age
Population to
be
relocated
1-4 17,923 7.70% 1,155
4 4,773 2.05% 307
5-9 24,396 10.48% 1,572
5 4,852 2.08% 313
6 4,800 2.06% 309
7 4,881 2.10% 314
8 5,656 2.43% 364
9 4,207 1.81% 271
10-14 24,696 10.61% 1,591
15-19 32,282 13.86% 2,080
15 6,916 2.97% 445
16 6,384 2.74% 411
17 5,229 2.25% 337
18 9,121 3.92% 588
19 4,633 1.99% 298
Source:- own computation based on CSA data
Source:- own computation based on CSA data
Table 4 Required number of schools in Boren
Level Estim
ated
popul
ation
Required
schools
Remark
K.Gart
en
929 12 1private K.Garten serves
400 students
1-8 2985 3 1 E. Sch. with 2 sections,50
students in each class
serves a total of 8 00
students
9-10 748 1 1 H.Sch. with 3 sections,50
students in each class
serves a total of 2100
students
11-12 886 - Using the existing
preparatory and TVETs

81
• Regarding primary schools (grades 1-8), the number of people in the
age group is calculated to be 2985. At least three elementary schools
are needed to be constructed in the area to accommodate the children in
the age group.
• The number of people in the age group 16-17 is eligible for enrolling in
high schools. There are 748 people in this group who are expected to
attend in high school. Assuming that all the age group continues their
education, an additional high school may then be planned in the area if
the student population allows. In the short run, Sabian comprehensive
secondary school can be utilized since its distance is near to Boren.
• Though the age group between 18- 19 consists of 886 people, the actual
number of students at this level may not justify the construction of a
preparatory or a TVET school. Therefore, it is recommended that such
institutions be based on their actual demand in the long run.
2.3 Health
• Based on the current standards of the Ministry of Health, a health post is
designed to serve 5-10,000 people while a health center serves more
than 25,000 people. Assuming that Sabian Health Center can also serve
part of Boren locality, it is advisable to add only one additional health
post at the moment in the new expansion area. The newly planned
private hospital is also located in the area which is an additional
development opportunity for expanding health services in the area.
2.4 Culture and recreation
• Cultural and recreation activities are also important social services
especially for the young generation. In this sector, two projects are
identified:-
 One Multipurpose sports field
 Two Youth resource/recreation center (consisting in door games, library,
lounge, etc)
• Both projects are aimed at empowering the capacities of the youth
through sports facilities, developing reading habits and properly utilizing
recreational facilities which can be conducted by the youngsters
themselves.
2.5 Religious/worship Institutes
a) Mosque and Church
• Assuming that the people to be settled are
in proportion to the existing composition of
population of the city, one mosque and one
Orthodox Church need to be constructed.
As to protestant faith, there is a worship
place near the border with Sabian. Hence
there is a possibility to use the stated
church.
•
b) Cemetery
• Two cemetery sites need to be selected for
Muslims and Christians in separate places
taking in to account the further expansion of
the inner city boundary.
Social rehabilitation measures
The local development plan may adversely
affect segments of the society. Therefore
addressing such problems will be of vital
importance if the program is to be a
success.
The social rehabilitation measures which
seem to be plausible to be taken may
include identifying the most negatively
affected members of the community or
target groups, assessing their training
needs, provision of training, supplying seed
money (credit) and give them priority for
benefit that accrue out of the development
interventions.

82
4. Private investment and NGOs
The proposed LDP needs a concerted effort of
all relevant stakeholders.
In this regard, creating an enabling environment
for private investment is a crucial component of
LDP implementation.
To this effect, provision of land can be major
interventions for:
 Commercial and Residential plots
 Hotel and recreation
 Tour guide and tour operation etc.
Non Governmental Organizations (NGOs) can
also fill gaps in the provision of social services to
the needy.
V.5 Implementation
strategies, cost and action
plan

83
V.5 Implementation Strategy
5.1 Construction
• The experience of Addis Ababa indicates that precast
beam producing equipment can be locally produced.
These include mold, table vibrator and mixer which
can be produced by firms such as Akaki Steal rolling
and spare parts plant.
• Training on technical and vocational skills will be
needed (5-7 days) together with management skills
training. Market networking for precast beam can be
created with urban housing programs. Hollow block
producing equipment with a capacity of 800-1000
hollow block/day can be acquired locally from Selam
Technical and Vocational Training Institute.
• Similar to precast beam, hollow block production also
require a 5-7 days technical training. The marketing
linked for this activity is housing development. In
addition government and private residential and non
residential buildings can utilize the products on
sustainable bases. Crushed stone production is
closely linked with precast beam production.
Managerial and technical skill upgrading training is
required for the activity. The crusher is based on
imported technology except some accessories.
• Market links can be created with the above mentioned
public and private works. The MSEs mentioned above
can be operated on individual and group bases
through creating clusters. The possible source of
finance for the stated MSEs is microfinance institutes
using the city government budget as collateral.
5.2 Wood and metal work
• Wood and metal work are highly linked with the
construction sector which uses the products as an
input. Metal works include welding, sheet metal
work, metal construction work, metal furniture
production, machine fabrication etc. it uses imported
inputs.
• Wood works include the production of wooden
household and office furniture. Market links for Wood
and metal works can be created with public housing
projects, real estate developers, and housing
cooperatives.
5.3 Textile and Garment
• Leather and leather products processing can be
organized in a cluster, each section having its own
specialized task (collection, semi processing and
final output production). The major machines to be
used are leather craft tool kit, lace cutting, hand
machine, spare razors, roughing machines (portable
with spare roughing wheels and roughing straps),
metal strap cutter and oblong punches 4x20mm.
Quality upgrading and promotion are the major tasks
to be performed to make them competitive with
imported goods.
• Skill training on leather production, design and
pattern preparation is required to operate these
MSEs. The financing scheme proposed above can
also be used for this project

84
5.4 Food processing
• Food processing is one viable economic activity in which
low income women can involve and make a living out of it.
It may include preparation of Injera, baking bread, Ambasha
etc… and supply the products to consumers
• Market link can be created with big public and private
institutions such as university, hospitals, hotels, restaurants
etc. In addition sales out lets can be established on
convenient sites.
• The financing of the project can be both government
collateral credits from MFI. It is also possible to approach
NGOs interested in women empowerment.
5.5 Municipal services
• Outsourcing of municipal services to individuals and
organized groups help the municipalities to focus on other
major duties expected of them. In this regard, solid waste
collection through organized task forces is being
implemented in Addis Ababa. The formerly fragmented
practice of solid waste collection and disposal is now
organized under each Kebele administration. It is proposed
that Dire Dawa can also adopt the experience of Addis in
this task. The needed working tools can easily be produced
locally. Market network can be created with hotels,
restaurants and cafeterias in addition to urban households.
• Though the financial resource requirement as indicated in
table 1 is relatively low, the task has to be performed in a
manner that can keep the city clean. In an urban
environment where people work and live very closely in a
congested manner, proper solid waste collection can be
financed by tariffs to be collected from each household.
6. Urban Agriculture
1. Dairy production
• Dairy production can be successfully implemented using
hybrid cattle which yield better production of milk. Such
varieties can be obtained from research centers. Market
networks can be created with milk processing factories,
cafeterias, etc. Dairy production can be undertaken on
the suburb areas while shopping centers need to be
located in urban centers where the communities can
easily have access to markets.
• The required tools for operation can be obtained from
supermarkets. The cream separator can be purchase
from ILRI and Selam Technical and Vocational Training
centers. The animal feed can be obtained from private
and public oil and flour processing plants.
• The required finance has to be secured from MFI
operating in the area. Training and technical support is
required to be provided to the operators
5.6.2 Poultry farm
• The necessary tools for Poultry production can be
obtained from super markets. Technical training has to
be given to operators together with the provision of land
for production. Market network can be created with
hotels, restaurants, supermarkets, cafeterias etc… so as
to establish reliable market.
5.7. Social Services
• Provisions of public services such as schools, health
posts and recreation can be implemented though joint
effort of the community, city government and NGOs
operating in the area.
• Religious/workshop institutes can be established and
financed by the followers themselves. Hence the city
administration is expected to provide appropriate sites
for workshop and cemetery.

85
5.8 Social rehabilitation measures
• Taking corrective actions for squatter
settlements has to be based on detail study of
the nature and extent of the problem.
measures
the youth
• Besides persuading the residents on the need
for the redevelopment, compensations have to
be paid for those legal land holders in acquiring
land as per the existing laws and regulations.
• Job opportunities have to be created through
implementing MSEs.
• Promoting education in the locality.
• Other community development
addressing women, children and
have to be implemented.
5. 9 Implementation approach and Phase
The implementation of the LDP will be carried out in three
phases:
Phase I covers the period 2002-03 and includes activities such
as Land and Infrastructure Development (Road
Development, Electricity, Water supply and Sewerage ,
Green area /park Dev't.); parcelation and community
mobilization etc.
Phase II covers the period 2003-05 and includes land
allocation, Economic support services such as MSEs
development and Training of operators, construction of
houses, schools, health institutes greening, markets,
residential and business use development, sports and
recreation.
Phase III includes Staffing public services, Equip and make
public institutions functional, Organizing public
transport, credit supply to MSE operators etc. It covers
the period 2005-06. The overall implementation of the
LDP requires preparation of detailed action plans to
coordinate all actors for the desired result. The major
stakeholders in the LDP study are depicted on table
below

86
6. Health bureau Health services Very important Very important
S.N
o
Stakeholder Expectation Degree of
importance
Institutional
importance
1. City Administration -Strong commitment for implementation & overall
coordination
-Project financing
Very important Very important
2. Municipality - Land Provision and preparation
-Coordinate infrastructure and utility provision,
Greening, Parcelation
Very important Very important
3. Kebele Administration - Community mobilization Very important Very important
4. EEPCO,Tele, Water supply &
sewarage transport bureau
- Provision of public services Very important Very important
5. Education bureau Schooling Very important Very important
7. Bureau of trade and Industry MSEs development Very important Very important
8. The community Support the LDP
and involve in investment
Very important
9. Non Government Organizations Assist the poor in the redevelopment effort important important
10. Chamber of Commerce Organizing and Mobilizing the Business community important important
11. CBOs and Religious organizations -Mobilize the community and local resource for LDP
implementation
-Establishment of worship and cemeteries
important important
12. Business Community Invest in the area either individually or in association important important
13. Dire Micro Finance Financing MSEs development important

87
5.10.Cost Estimation for public investment
Table : cost estimation of LDP activities
S.
No
Activity/Description unit quantity Unit cost
(Br)
Total cost phasing
I Land and Infrastructure Dev't.
1. Road Development
1.1 Principal Arterial 40m wide asphalt Km. 1.3 6.4million
8,320,000
I
1.2 Sub Arterial 20m .wide asphalt Km. 13 3.2million 41.6million I
1.3 Cobble stone Km. 49 2.4million 117.6mill. I
Sub total 167,520,000
2 Infrastructure 2002-03
2.1 Electricity Street lights km. 63.3 700,000 44,310,000 I
2.2 Water pipe line ha. 350 100,000 35,000,000 I
2.3 Sewerage line ha. 350 48,000 16,800,000 I
2.4 Green area /park Dev't. ha. 4 1.3million 5,200,000 I
Sub total 101,310,000

88
S.
No
Activity/Description unit quantity Unit cost (Br) Total cost (Br) phasing
3. Social service facilities
3.1 Primary schools 20 rooms No 3 75,000 4,500,000 II
3.2 High school No 1 75,000 1,200,000 II
3.3 Health post No 1 75,000
75,000
II
Sub total
5,775,000
4. Economic support services 2003-05
4.1 MSEs development No 11teams 1,206,422 II
4.2 Training (10 days) No 247 500/person 123,500 II
Sub total 1,329,922 II
Total (1+2+3+4) 275,944,922

89
REVENUE AND COST COMPARISON
• To cover the cost of public investment
programmes, the city administration has to give
emphasis to land lease revenue as its main
source of income.
• By deducting the land to be used for cattle and
open market, 75 % of the 36 ha commercial
land use will be transferred to private investors
at a rate of 1000Br./ M2, the total income from
land lease will be 270 Million Br. The 1000 birr
/m2 cost is an assumption for approximate
estimation of the land value. The city
government should consider the appropriate
land leasing cost by talking into account the
real market values and attractiveness of the
area.
• The comparison of costs and revenue is
summarized in the following table
• Contingency for price escalation is assumed to
be proportionate among the revenue and cost
Item Total amount
Revenue from land leasing 270,000,000.00
Cost of public investment 275,944,922.00
Balance -5,944,922.00

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