Urban Redevelopment in Partnership Joint Venture Between Landholders and Private Developers In Global-6 and Urael Apartment Projects, Addis Ababa, Ethiopia
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Date
2024-04-01
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Addis Ababa University
Abstract
A joint venture redevelopment project between landholder and private developer is the main concern of this study, because it is a current and relevant issue in developing countries. The objective of the study is to investigate the characteristics of the current practice of JVR projects between landholder and private developer in the cases of Global 6 and Urael apartment, Addis Ababa. Therefore, this research is done in order to answer the questions of how JVR is practiced in the actual projects, what advantages and disadvantages it has, and what should be done so as to enhance the use of JV strategies for urban redevelopment projects. The scope of the study is limited to JVR projects between landholders and private developers in the case of Global 6 and Urael apartment in the past decade and a half. This research is qualitative research by using a case study research method in order to gain an in-depth understanding of the actual practice, and data is gathered through observation, interviews, and document reviews. Thematic data analysis method was used for this study through the process of analyzing the collected data with the reference of the research questions. The study identified the following findings: A JVR project between landholders and private developer’s benefits partners through enabling the landholders to practice their priority right of developing their land; minimizing initial investment cost, and resource sharing. The processes of JVR projects are information gathering, decision making by stakeholders, preparing schematic design, landholders choosing their preferred house, JV formation and agreement signing, cash payment, transferring landholding rights to the developer, overall design preparation, land acquisition, acquiring building permit, site clearance, construction, supervision and housing handover. The major challenges of JVR projects are lack of trust on the landholder’s side, opposing the idea of transferring landholding rights to the developer, absence of proper implementation of legal framework due to many reasons, like the proposed land use of the area, and other restrictions from the government side. Finally, based on the finding of the study recommendations are forwarded for policy makers, government and for private developers. Policy recommendations include: prepare a policy to incorporate a JV strategy for urban redevelopment projects; develop a clear legal agreement guideline describing the rights, responsibilities and the amount of share of the stakeholders; and make the legal framework flexible.
Keywords: Urban redevelopment, Joint venture redevelopment, Partnership, Landholder, Addis Ababa