Analysis of the Legal Obligation to Bear Political Risks of Construction Projects in the Conflict and Civil War Context of Post-2016 Ethiopia

Abstract

The construction sector, mainly in a politically unstable state such as Ethiopia, encounters complex uncertainties and risks. In the post-2016 period of Ethiopia, the construction sector is severely and continuously affected by political risks due to the ongoing conflict and civil wars in several parts of the country. An intriguing issue this article aims to analyze and draw, in this context, is who bears the legal responsibility of the political risks of the construction industry in Ethiopia. For this purpose, the article relies on the sociolegal research approach, by analyzing construction law legal regimes with qualitative evidence documented through key informant interviews and document analysis of reports and construction contract conditions. Lessons from other countries have also been drawn. However, due to the inaccessibility of practical cases and their political sensitivity, the article has limitations in specific case-driven assessment of political risks and obligation bearers. Thus, through the analysis of the legal order along with the interrogation of qualitative evidence, the finding of this article constructs and establish the grounds of legal obligation of the employer and or the government to bear political risks of the construction sector in Ethiopia. In principle, as observed in post-2016 civil unrest or armed conflict in Ethiopia, the employer, who owns the construction project, shall bear the political risks caused by third-party actions. If the employer is a government authority, the state shall assume the obligation to bear the cost since it has the legal obligation to maintain social order and prevent such risks regardless of its direct fault. In cases involving private employers, this article highlights the state’s obligation to bear political risks materialized by third-party actions in civil unrest or an armed conflict context.