WHEREAS, it is necessary that the government needs to use land for development works it carries out for public services;

WHEREAS, land expropriation has become necessary to address the steadily growing urban population which requires more land for building houses, infrastructure; and for redevelopment of urban slums to invigorate investment and other services; and for development activities in rural areas;

WHEREAS, it is essential to determine the types of compensable properties and lost economic interests and the principles thereof and establish the methods of valuation in order to pay landholders whose landholdings and property are expropriated or damaged or lost their economic interests in the process of expropriation fair and equitable compensation;

WHEREAS, it is necessary to identify and define the powers and responsibilities of authorities which are in charge of property valuation; payment of compensation and resettlement;

WHEREAS, it is necessary to rectify and fill gaps envisaged in the former law and to include other provisions to make the system of expropriation of land holdings and payment of compensation more effective;

WHEREAS, it is necessary to determine the decision-making process and grievance procedure related to the expropriation and payment of compensation;

WHEREAS, it is necessary to enact detailed laws to implement the general powers given to the Federal Government under the Constitution of the Federal Democratic Republic of Ethiopia to enact laws regarding land use under Article 51(5); and Expropriate of Private property for Public Purposes and payment of fair and equitable compensation to the expropriated landholders under Article 40(8) and provide support to resettle displaced people under Article 44 (2);

NOW, THEREFORE, in accordance with Article 55 (2) (a) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: