This Proclamation provides for the lease of urban land. “Urban land” means land located within an administrative boundary of an urban center; “urban center” means any locality having a municipal administration or a population size of 2000 or more inhabitants of which at least 50% of its labor force is engaged in non-agricultural activities. This Proclamation shall be applicable to all urban centers with in Ethiopia with regard to urban land. The Proclamation sets out the fundamental principles of lease and provides that no person may acquire urban land other than the lease holding system provided under this Proclamation. Also, no person may enclose and use any plot of land adjacent to his lawful possession without the permission of the appropriate body and no region or city administration may permit or transfer urban land in a manner contrary to the provisions of this Proclamation. An urban land shall be permitted to be held by leasehold: a) if its use is in conformity with the urban plan guidelines or, if the urban center does not have such guidelines, as per the regulations issued by the region or the city administration; and b) through the modality of tender or allotment. The Proclamation sets out the tender and allotment procedures. Any person permitted urban land lease holding in accordance with this Proclamation shall conclude a contract of lease with the appropriate body. Leasehold certificate shall be issued to a person to whom an urban land lease holding is permitted. The period of urban land lease shall vary depending on the level of urban development and sector of development activity or the type of service and shall have the ceiling of 15 years for urban agriculture.The appropriate body shall have the power, where it is in the public interest, to clear and take over urban land upon payment of commensurate compensation, in advance, for the properties to be removed from the land. Urban land clearing and compensation cases appellate tribunals shall be established by regions and city administrations. The appropriate body shall in certain cases take over a land in respect of which a clearing order or notice has been served.
Repeals: Re-enactment of the Urban Lease Holding Proclamation (No. 272/2002). (2002-05-14)
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