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    WHEREAS, the government needs to use land for development works carried out the in the public interest;

    WHEREAS, it is necessary to improve procedures for appropriation of the required land and valuation of property for compensation;

    NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of Federal Democratic Republic of Ethiopia it is hereby proclaimed as follows:



1.   Short Title

This Proclamation may be cited as the “Appropriation   of Land for Government Works and Payment of Compensation for property Proclamation No. 401/2004.”

2. Definition

In this Proclamation, unless the context requires otherwise:


1/   “Person” means any natural and juridical person.

2/ “Works” means the construction or installation as appropriate for public use of highway, power generating plant, building, airport, dam, railway, fuel depot, water and sewerage telephone and electrical Works and the carrying out of maintenance and improvement of these and related works, and comprises civil, mechanical and electrical Works.

3/   “Utility Line” means water, electric or telephone line existing on or under the land required for the purpose of this Proclamation.

4/   “Implementing Agency” means a Federal or State agency or public enterprise undertaking or causing to be undertaken Works with its own force or through contractor.

5/   “Ministry” means the Ministry of Finance and Economic Development.


 3.   Land Appropriation Power


1)  The Implementing Agency shall determine the extent of land required for its Works, appropriate and use the same without pay in accordance with this Proclamation.

2) The power specified under Sub-Article 1 hereinabove extends to land required by the Implementing Agency for office, camp, storage for materials and machinery and for production and use of quarry substances, soil and sand.

3)      The Implementing Agency shall, at the latest one year before commencement of the works, complete the preparation of detail data pertaining to the land required for its Works and immovable properties to be removed from the land, and send the same to the organs required to handover or cause the handing over of land in accordance with this Proclamation.

4)      The owners of such properties have the obligation, upon request, to provide the Implementing Agency any date in regard to their properties.

5)  The relevant Federal & State agencies have the responsibilities to handover without delay the land required for the Works of the Implementing Agency in accordance with this Proclamation.

 4.   Procedures for Removal of Utility Lines and Forests

1/ Where the land to be appropriated is occupied by Electric, Telephone, pipe line or forest administered by the relevant Federal or Regional governmental office or public enterprise as the case may be the Implementing Agency shall submit its question by attaching detail information as to the where about of the property and send same to the owner of the service line or to the owner of the forest that the line or the forest should be removed.

2/  The organ, which received a request under Sub-Article 1 hereinabove, shall within 30 days from receipt of such request, value a fair replacement compensation of the line or forest to be removed and send details of its valuation to the Implementing Agency.

3/  The Implementing Agency, which requested the removal of the line or forest shall pay the valued compensation to the owner of the line or forest within 30 days from receipt of the valuation under Sub-Article 2. The owner of the line or forest shall remove its line or forest from the land and vacate the site within 60 days from receipt of compensation.

4/  Unless there is no other land to be appropriated, the relevant Federal and Regional bodies and Implementing Agency shall protect the Natural Resources.

5.   Procedures for removal of Other Properties

1)      Where the property to be removed from the appropriated land is other than the utility lines or forest referred to under Article 4, the Implementing Agency requiring the land shall send a request accompanied by detail data describing the specific location of such property for the removal of the property and appropriation of the land, to the Woreda administration in which the property is located.

2)      The relevant Woreda administration shall notify the property owner of the decision taken to appropriate the land required by the government for public use and to remove the property on the land.

3)      The property owner must remove his property and vacate the land within 60 days from receipt of compensation.

4)      Where there is no property on the appropriated land the relevant Woreda administration shall within 30 days from receipt of the request handover the land to the Implementing Agency, which requested the land.



 6.   Property Valuation Powers

Properties other than the utility lines and forest referred to under Article 4 for which compensation is payable shall be valued:

a)      by a committee to be established in accordance with Article 7 of this proclamation.

b)      by the Federal or State municipalities, or

c)      in accordance with a directive to be issued by the Ministry.

 7.   Property Valuation Committee

1)      Where the land to be vacated is located in rural or urban centers having no municipality, the property shall be valued by a committee consisting of the following members:

a)      Representative of the Woreda adminis- tration in which the land is located-Chairperson.

b)      Representative of the Kebele administration in which the land is located-Member

c)      Representative of the relevant Woreda agricultural, forestry or works and urban development office-Member

d)      Representative of the Implementing Agency-Member & Secretary.

2)      The procedures for the committee to carry out its tasks shall be determined by a directive to be issued by the Ministry.

 8.   Other Property Valuing Organs

1)      A property located in urban center administered by a municipality shall be valued by the municipality.

2)      Valuation of a property that requires a specialized knowledge and experience may be undertaken by an expert to be appointed by the Ministry.



 9.   Principle & Amount of Compensation

1)      A possessor who vacates land shall be paid compensation for the property he produced on the land by his finance, labour or creative work and for permanent improvement he made to such land.

2)      Compensation for property on an appropriated land shall be equal to the replacement cost of the property.

3)      Compensation for permanent improvement on land shall be equal to the value of capital and labour expended on the land.

4)      The cost only of removal, transfer re-erection  and any income or product interepted shall be paid for a property such as floor mill, machinery and other type of property that may be re-erected by transfer to another land and continue its services as before. Particulars shall be determined by Regulation.

5)      The rate for valuation of various types of properties shall be determined by a Regulation.

10.     Displacement Compensation

1/ A person, who permanently looses his possession of land, whether there is crop or plant on the land, shall in addition to the compensation payable under Article 9 of this Proclamation, be paid compensation equivalent to an average income of a person holding similar land. Particulars shall be paid determined by a Regulation.

2/ A person, who provisionally looses his possession of land or possessors of common land shall, in addition to compensation payable under Article 9 hereinabove, be paid, until repossession of the land, compensation for lost income that would have otherwise been received in the absence of dispossession whether there is crop or plant on the land. However, such payment shall not exceed compensation payable under Sub-Article 1 of this Article. Particulars shall be determined by a Regulation.

3/  The provisions in Sub-Article 1& 2 may be implemented only where the relevant administrative authority confirms that a substitute land is not available.

4/  An urban dweller whose land is appropriated in accordance with this Proclamation may  in addition to compensation for his property be provided, as  provided, as the case may, be displacement compensation. Particulars shall be determined by a Regulation.

11.     Complaint in Relation to Compensation

1)      A complaint disputing that that the amount of compensation is not valued in accordance with Article 9/5/ of this Proclamation may be submitted to a court having jurisdiction.

2)      Submission of a complaint in relation to the amount of compensation cannot delay appropriation of the land.

3)      A complaint under Sub-Article 1 hereinabove shall be barred by limitation unless submitted within 60 days from notification of the valuation to the owner of the property.


Miscellaneous Provisions

12.     Power to Issue Regulation

The Council of Ministers may issue Regulation in accordance with Article 9(5) and 10(1-2) of this Proclamation.

13.     Power to Issue Directives

The Ministry may issue directives in accordance with Articles 6(c), 7(2) and 8(2) of this Proclamation.

14.              Inapplicable Laws

All laws inconsistent with this Proclamation shall not have effect with respect to matters provided for in this Proclamation.

15.  Duty to Co-operate

Any agency or enterprise of the Federal or State government department or an individual person is duty bound to cooperate in the implementation of this Proclamation.

16.  Effective Date

This Proclamation shall enter into force as of the 6th day of May, 2004.

Done at Addis Ababa, this 6th day of May, 2004.



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