The Ministry of Urban Development and Construction shall have the Powers and duties to:

1. Design and up on approval implement Policies, Strategies, development packages & Programs relating to urban development & Construction;
2. Undertake studies relating to Urbanization, in coordination with other relevant bodies establish system for integrated urban development & preparation of national spatial plan; follow up implementation of same:
3. Outline directions that ensure compliance of urban centers with regional & national development schemes & integrated urbanization plans;
4. Undertake studies for the integration of urban & rural development activities in collaboration with regional states: follow up implementation of same; provide to urban centers all round & coordinated support so as to make them development hubs of their surroundings;
5. Design strategies that ensure balanced development & population settlement in urban centers; implement same in collaboration with the pertinent federal & regional government bodies:
6. Put in placenew procedures for economic use of urban land: follow up implementation of same;
7. Set standards relating to categorization & roll definition of urban centers: establish criteria for urban sanitation, beautification & greenery development; support & follow up implementation of same:
8. Provide capacity building support to regions to improve service delivery & ensure good governance in urban centers; facilitate the integration of infrastructure & services provision;
9. Undertake studies for integration of urban development with poverty reduction; support the implementation thereof; & ensure food security & job creation in the urban settings;
10. Follow up the activities of Addis Ababa & Dire Dawa  city administrations in relation to urban development & construction:
11. Build cadastre & immovable property market systems that ensure transparency & accountability & enhance free market economy; provide support to ensure supply of developed urban land in accordance with demands in urban centers;
12. Undertake study toestablish urban development finance improvement system; cause its approval by the concerned organ. collect rising fund; provide support & follow up to ensure institutional capacity building for implementation;
13. Without prejudice to powers given by law to any other government organ. ensure the proper administration of houses owned by the Federal Government;
14. Undertake studies on the provision of residential housing to citizens; & support implementation of same once approved by the concerned organs;
15. Design long term strategic plans that enhance proper management of the construction sector; implement same; execute studies on the development of the sector in coordination with pertinent bodies;
16. Create conducive environment for the development of internationally competitive construction industry; establish transparent & accountable system for the management of design, bidding & contract contents & follow up enforcement of same:
17. Regulate constriction works in all sectors; determine construction work standards; & follow up compliance with standards;
18. Extend support in the preparation of designs, construction contracts & supervision of construction works involving buildings financed by federal budget;
19. Support to the development of appropriate organizational set up systems & human resource required for implementation of building codes & standards in cities;
20.  Design strategy to enhance the capacity & sustainability of local construction enterprises; follow up implementation of same;
21. Register engineers & architects engaged in the construction sector; issue certificates of professional competence; determine the grades of contractors & consultants; issue certificates of competence to contractors & consultants operating in more than one regional states:
22. Undertake research to improve the types & qualities of local construction materials;

The powers & duties given by provisions of other laws currently in force to the ministry of urban development & housing & the ministry of construction are here by vested in ministry of urban development & construction;