Thursday, June 13, 2024
HomeLatestGovernment institutions spend high cost for rental payment of office buildings

Government institutions spend high cost for rental payment of office buildings

Ethiopia’s Public Procurement and Property Administration Agency has been calling gov’t offices to minimize rental spendings

By Staff Reporter

ADDIS ABABA – (BORKENA) – It has been stated that government institutions are still unable to reduce the high cost of renting office buildings due to various reasons, Public Procurement and Property Administration Agency (PPPA), said.

Ahadu FM Radio 94.3 quoted PPPA as stating that the Government institutions spend every year a lot of money for rental payment for office buildings.  

Chief Executive Officer of Government Procurement, property  improvement and Capacity Building Section of PPPA, Gebeyaw Yitayih said that although the government has given direction to the institutions so that they can build their own buildings in a bid to avoid rental expenses, the institutions have still been spending a lot of money on rent. The reason they are giving is that constructing buildings would take a long time.

Gebeyaw said that as huge constructions, in particular take years, with the process starting from land tenure ratification to the completion of the edifices, it is not possible to compel the institutions not to spend expenses on rental services.

The Addis Ababa City Administration has previously stated that it would work to stop the expenditure of one billion birr being paid every year for rental services of office buildings of various offices. Concerning the issue, Ahadu FM Radio 94.3 asked the Communications Director of the State Property Management Authority of the Addis Ababa City Administration, Muluneh Ayana who said that preparation has been underway to implement the plan.

Muluneh said that construction sites have been staked out for the office buildings. This was done following the feasibility study conducted with the relevant institutions, according to him. He further said that the actual construction work would be put into operation soon. However, Muluneh did not mention the specific time of plan execution.

The Radio reiterated that government institutions have kept on spending a large amount of money on renting office spaces every year. 


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