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The exorbitant and unresponsive nature of the expenses incurred in the agreement signed between Ahmed Shide, the Minister of Finance, Valérie Tehio, the Country Director of the French Development Agency (AFD), and Frederic Bontems, the then Ambassador of France to Ethiopia and the African Union, has raised concerns. This agreement locked in a staggering 12 million euros in financing from AFD for the initial phase of the palace renovation project.
Adding to the financial strain, the government has declared its intentions to erect a new structure for the presidential office, currently co-located with the Prime Minister’s office. The president is anticipated to move to this new building and presidential residence, situated in close proximity to the US embassy.
Sources reveal that while the rehabilitation of the palace aims to preserve its original architectural allure, the exorbitant costs associated with comprehensive maintenance activities and additional construction work have sparked criticism. The intention is to transform the palace into a premier tourist attraction in the city.
The initial phase of the project, with a whopping price tag of 20 million euros, is slated to involve opening the palace to the public. The palace administration, with the assistance of French expertise, spearheaded the implementation of the project. Notably, French public agencies and esteemed organizations like the Versailles Palace, renowned for their involvement in international technical cooperation, also contributed to the renovations, further inflating the costs.
In an era where financial prudence is crucial, the government’s move to allocate such astronomical sums for the project is being heavily scrutinized. Critics argue that the funds could be better utilized to address pressing socio-economic issues, rather than being funneled into transforming a historic palace into a tourist attraction.
This lavish spending aligns with the government’s broader strategy to expand tourist destinations and boost income. The Menelik Palace, constructed by Emperor Menelik in 1887, was opened to the public in 2019 after extensive renovation works spanning over a century, revealing a pattern of extravagant investments in historical sites.
Similarly, the French government’s provision of funding and technical support for the renovation projects of the rock-hewn churches of Lalibela, a UNESCO World Heritage site in Ethiopia, has been criticized for its exorbitance, showcasing a trend of overspending in the preservation and promotion of Ethiopia’s cultural heritage.
