Redevelopment of Merkato Need Fro Public Consultation

by Dr. Getachew Betru, WIC 24/01/2000

(Ph.D., MSc, B.Sc. Hons, MAQMI)

One of the good news at this threshold of the new Millennium in Addis Ababa and the country at large must be the redevelopment of the Merkato area by the Investment Group Adorna-Shebele, a Malaysian company that plans to undertake a massive investment activity.

We are all excited to hear the good news that Merkato is going to have a 'face lift' with such huge cash injection. It has been claimed that US$ 6 billion will be spent to carry out the redevelopment programme. I am assuming this figure to be the preliminary engineering estimate. On the other hand, the figure may have been taken from the investor's financial proposal to the Ethiopian Investment Authority.

If the figure is an engineering estimate the investor may have assessed the project requirements and devised all the alternative schemes for his consideration. In general terms he may know what he needs and will have only the details determined or developed. On the other hand, he may have a particular phase investigated to provide the necessary information on which to base a decision on whether or not to proceed with a project, or to acquire finance or planning permission from the Addis Ababa City Government for project implementation.

We also have been informed by the newspapers report that he has been acquainted with the Merkato area and had made several site visits.

I suspect that the investor through his professional advisors may have defined the scope of the work statement as part of his brief. In preparing the document the investor must have stated his long-term and short-term objectives and also indicated all the constraints of which he is aware.

This leads me to the investigation that may be required for such a complext project. The extent, nature and detailed content of the professional advisor study will vary accordingly. I also suspect a number of solutions to be considered, and the nature and number of the decision making processes involved before the scheme can be constructed in corroborating a series of separate studies, each more detailed than the last.

The studies required in developing a preferred scheme for a major project such as the Merkato redevelopment project might include the following and more.

  • A study which assesses the requirements of such a project in Addis Ababa and its immediate surroundings.
  • a pre-feasibility study which investigates whether or not there is likely to be a viable demand for the project to be studied, whether or not the required resources of implementation would be available within acceptable cost limits, and whether or not feasibility study would be justified.
  • A feasibility (or pre-investment) study which involves preliminary surveys to investigate technical and economic viability. An estimate of capital and operating costs, and other information to enable the investor to decide whether or not he should try to finance the project; it does not include detailed design, but may include some outline design.
  • A master plan, which is a long-term development programme and which generally, indicates how construction and expenditure can be phased.
  • An environmental impact study, which considers the effect the proposed development, would have on the environment.
  • A geotechnical study which investigates the nature of the ground where works may be constructed and assesses possible problems especially its technical aspects; this is sometimes known as the final design study.
  • A financing study: in most cases the investor will make the necessary financing arrangements himself. Exceptionally professional advisor's may be required to identify possible sources of finance and to assist the investor in establishing the arrangements for the provision and repayment of the funds needed, in which cases a special report on the financing arrangements will be needed.

In addition, technical investigations are required to resolve the engineering aspects of a project. Further investigations may be required on sub-project likely to affect the environment; economic, social or environmental studies may need to be undertaken in such cases.

For a project of such magnitude, in an area of 64 sq. km. in densely populated inner city (Merkato area), the need for economic, demographic or other studies is pre-requisite of its success.

This brings me to the issue I would like to pronounce is very crucial and timely. The involvement of the public into the proposed scheme, here I mean 'the larger public', as Merkato is not only a neighborhood but also the nations unique market place may be comparable to 'The City' in London or 'Wall Street' in New York. Any redevelopment must consider this symbolic aspect as well. Merkato has always been a tourist attraction for the foreigners and they are all fascinated by it. Above all, most of our unique household products pass through Merkato. Every corner of the country is represented, by name or by product Gojam Berenda, Chew Berenda, Sidamo Tera, Goffa Berenda (I still don't know why it is called American Gbi), Berbere Tera, Gesho Tera, Wollega Hotel, Chillalo Hotel, Kbe Tera, Kuchira Banki, Somali Tera etc.

The planners, if they are wise, will benefit from the public involvement at this early stage. the execution of most projects of this magnitude and complexity affects the public in some way. Although the general public may benefit from most of the activities, there are usually some people who could suffer. For example, the shop owners whose land is compulsorily acquired for the redevelopment scheme, and the house holder who experiences noise nuisance as a result of the construction of the redevelopment, may both reasonably have objections to a proposed scheme. Attempts should be made to involve the public in the decision-making process at an early stage.

There is also another dimension to the redevelopment project. I call it the historical dimension. Should we ignore the historical past of our heritage, don't we have any nostalgia of Merkato the redevelopment may take away? Is there any Ethiopian who has not used something that has passed through Merkato, may be every week or so, for the whole of his life? Should we one day make up and face a monstrous compact new city, perhaps a concrete jungle, or should the designers integrate the existing good aspects of Merkato with modern functional buildings? These are the question I would like to ask.

The would-be-problems and possible solutions must be publicized, and the public must be encouraged to express their views and preferences, which are duly taken into account during the feasibility and planning stages. Involvement of the public in the planning stage of a project can reduce objections and eliminate the need for a public inquiry; if we can arrive at a common ground on the proposal, it can also produce constructive ideas to the benefit of the project.

Whereas the questions of need and city policy may be generally matters for Addis Ababa City authorities, proposals for a particular detail of the project are of concern mainly to those who live or work in the area.

At the end, I suggest for such a major project; provision should be made by statute for holding a public inquiry, which is a public hearing of objection to a particular part or all of the proposal.

Normally an independent inspectors chairs the public inquiry. At the hearing the investor puts his case for the scheme, calling witnesses in support as necessary. The objectors are then heard. Parties are frequently represented legally, and expert witnesses are called if the objections in the scheme are of a highly technical nature. As part of his duties, the inspector visits the site during the proceeding looks at all the supporting evidence in front of him.

After the public inquiry, the inspector writes a report, which he submits, to the appropriate government department. This report contains an outline of the evidence given at the inquiry, the inspector's findings and his recommendations. In due course, the government department makes its decision, which does not necessarily have to be in accordance with the inspector's recommendations. Appeal against the government department's decision is possible on legal grounds but not on the merits of the decision.

I believe the Merkato community has not been consulted so far or no pressure group from the community end has come to demand for explanation. Although the matter may seem premature it is to the advantage of the success of the proposed project and all the stakeholders that public consultation begin as soon as possible.

Let's face it, in this type of project every one has agenda. Naturally the investor may have a vision for Merkato but he also has a business plan and he may be looking at the pay-back period and the bottom line of his financial summary. His professional advisors should be delighted to be involved in such an inspiring and breathtaking job, while the contractors are preparing for the challenge and of course good returns. The government is also watching if everyone is playing by the rules of he game. Above all these, it is the 'Good Old Merkato' community who are excited to see their neighborhood be a better place than its dilapidated current state.

But to create a win-win scenario to all involved, that is to the investor, his professional advisors, the public, the city authorities and the Merkato community, it is prudent to invite a public consultation platform and encourage a public debate into the issues before it is too late.

(* Dr. Getachew Betru is the Managing Director of GBA Consultancy Ltd.)