SQUATTER SETTLEMENT OF THE KATHMANDU VALLEY: Looking through the Prism of Land Right and Tenure Security

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1 African cities, 31 st Oct. 3 rd Nov., 2010, Johannesburg, Gauteng, South Africa Dr. President, S[settlement-society-sustainability]3 Alliance: Development forum for habitat Kathmandu, Nepal, Mobile: , bkshrestha@hotmail.com SQUATTER SETTLEMENT OF THE KATHMANDU VALLEY: Looking through the Prism of Land Right and Tenure Security

2 Aim Objective I Objective II To analyse the squatter settlements of the Kathmandu valley from the perspective of land right and tenure security with fourfold objectives To present urban poverty situation in Nepal, analyses the government s poverty alleviation efforts and presents the growing number of squatter settlements in the Kathmandu valley ; To analyse the existing slum and squatter settlements focusing on land tenure and property right and their numerous implication Objective III to critically review the land development and housing construction trend including squatter improvement works, carried out in the valley Objective IV To present an alternative solution for land right and tenure security for squatter settlements and proposes some key strategic recommendations

3 Limited information and scattered among different organisations & individuals Littler experiences on slums & squatter housing Concept of social housing is not apparent Study Methodology Global/local search Questionnaire survey Field visit Stakeholders consultation Case study [Characteristics of phenomenon] Ethnography [culture of urban poor] Phenomenology [meaning & values of culture] Grounded theory [theme & pattern in data]

6% highest in Asia and Pacific region; Variation in income, climate, culture

4 Total Pop = 25 million [approx]; Total area = 147,187 sq. km. GDP = US$278 in ; Urban growth of 6.6% highest in Asia and Pacific region; Variation in income, climate, culture and geographical landscape from west to east & from north to south. China Nepal India N Kathmandu Lalitpur KM KM Lalitpur City

5 Attempt Activities Constraints Policy & program formulation, implementation and decision making through government bureaucrats Involvement of NGOs, UN & bilateral & multilateral agencies Poverty alleviation fund 2003/Tenth development plan Pprograms and campaign: small farmer development program, go back to village campaign, develop your village by yourselves, integrated rural development, during the 1970s and 80s. With technical supports from donor agencies: the poverty alleviation project in Western Terai region ( ), third livestock development project, ( ), community ground water irrigation sector project ( )in 1990s & udle - integrated poverty reduction and social inclusion strategies in thirty different towns of Nepal; The Tenth Period Plan ( ) as a Poverty Reduction Strategy has been founded on an inter-related four-pillar development strategy Scattered among various ministries, departments with little coordination and coherence of policies at sectoral level; Ineffective mechanism, poor participation, political instability; Lack of urbanisation policy and ignorance of urban housing

1976 1985 1995 2002 2006 33% 41% 42% 38% 31%

areas and NRs 11,057 for Kathmandu [US$ 1 = NRs. 73.

6 % 41% 42% 38% 31% Poverty line is calculated using the head-count measure : NRs. 7,696 per person per year: NRs 7,901 for urban areas and NRs 11,057 for Kathmandu [US$ 1 = NRs. 73.5] The Gini Coefficient (poverty indictor) of 0.34 in rose to 0.41 in clear indicates the growing gap between the rich and poor; Reduction of poverty is mainly due to remittance from abroad

7 Particular Housing deficit till 2001 Extra housing from Extra housing from Extra population Dwelling required (units) Dwelling unit for Urban poor 2,42,724 48,545 1, ,39,153 1,47,831 4,878 2,464 10,76,788 2,39,286 7,896 3,589 Land required (ha) Rapid urbanisation [rural-urban migration] Huge housing deficit in the valley High land & building cost Domination of owner-built housing

8 Squatter settlement in Kathmandu: 12-13% per year, two times faster than urban growth

9 Case study areas SSS PBSS RISS SDK Location Shankamul, Ward no. 10, Kathmandu Thapathali, Ward no. 11, Kathmandu Baudha, Ward no. 6, Kathmandu Dhaukhel, Ward no.14, Kathmandu Established > 20 years (old) < 5 years (new) > 2 decades (old) > 2 decades (old) No. of household Total population 660 2, Not available Ethnic groups Mix of different ethnic group Mix of different ethnic group Mainly Gurung & Rai caste Mainly Khadgi & Sahi caste SSS Shankhamul Squatter Settlement; PBSS Paurakhi Basti Squatter Settlement; RISS Ramhiti Improved Squatter Settlement; SDK Slum at Dhaukhel Migration Family structure Real squatter NGO & donor support Except for SDK dominated by locals, the rest comprises of squatters migrated from surrounding districts and Terai Majority still living in joint family Except for PBSS, some of them admitted that their family members have property in other parts of Nepal Lunamnti supported toilet construction, water provision and pavement of pedestrian lane

14 Informal land tenure Long period of staying [old settlements] Large nos. of households with strong community organisations Provision of amenities by NGOs, donor & public agencies Indirect legitimization Housing condition & physical infrastructures Interior & outdoor spaces to suit the lifestyles

15 Owned, purchased or rented houses Age of shelter in the case studies SSS PBSS RISS SDK

16 Renovation work Physical problem

17 Indirect legitimisation of illegal settlements Water tank Hand pump Community toilet

18 Incremental planning and flexible space self construction

19 Similar expenditure pattern: food, education and cloths and health Suffering from various diseases Household concern with education of their children

annual growth [%] 1954 10 0.238 2.9-1961 16 0.336 3.6 1.

21 Urbanisation in Nepal Census year No. of towns Urban pop [million] % of urban pop Avg. annual growth [%]

22 Rapid urbanisation of Kathmandu valley [annual 7% against the national growth of 2.3%], accommodating 30.9% of total urban population of Nepal Km Urban Growth N ,200 1,000 Population ( 000) Kathmandu 400 Lalitpur 200 Bhaktapur / Year Kathmandu Core Lalitpur Core KV population ('000) Squatter settlement growth ('0) Vehicle registration in Bag. zone ('00) Building permit in Kathmandu ('0) Urban LandMark Conference Rethinking emerging land markets in rapidly Urban area growing (% of southern total valley area) Agri. area (% of total Bijaya valley K. area) Shrestha Developed lands (hac) ('0) S [settlement-society=sustainability] No. of devel. Plots & dwel. unit 3 ('00) Alliance

23 Kathmandu valley s settlement TRIPLED between 1979 and 2001 and build up area expanded FIVEFOLD between 1955 and 2000

24 Land pooling benefitted only local landowners at the cost of government s efforts [human resource & provision of infrastructure] Private sector developed apartment affordable to those elite group who buy houses for future speculation The financial market available is not accessible to urban poor due to lack of collateral and low monthly income National Shelter Policy 1997 and Poverty Alleviation Fund yet to be benefited housing for urban poor National Building Code 2005 and Building Permit System No meaning for slums & squatters The existing land and housing development trend ignores housing for urban poor

25 Informal housing [Owner-built houses] Land Building People Infrastructure Formal housing [Private sector built] Land Infrastructure Building People

26 Housing sectors in Kathmandu valley 1970s 1980s 1990s Site and services: Kuleswore & Dallu housing Land acquisition Act 1973 Guided Land Development & Land pooling Town Development Act 1988 Private housing Joint Apartment Act 1997 Planners/providers Provider Enabler/facilitator

27 Design of street patterns & open spaces NEITHER attract the residents NOR engage them in multiple activities. KHP African cities, 31 st Oct. 3 rd Nov., 2010, GLP Johannesburg, Gauteng, South Africa SRH MST

28 Housing development Booking rate Total cost (NRs. 00,000) Cost per sq. ft. (NRs. ) Comfort housing (I) 100% in 9 months Higher Civil homes 31% in 2-3 months Higher Mount view residency (II) 80% expandable units in 2-3 months 16.5 (expandable) (individual) 2010 (individual) Economic status Higher Paradise home 56% in 1 year Higher Mount view residency (I) Higher Sunrise homes 93% in 7 months 33 38% 1931 Higher Mount view residency (II) Upper middle Sunrise homes 50% in 7 months Upper middle Kathmandu residency 100% in few months Upper middle Stupa colony 90% in 9 months Middle Oriental colony (I) 100% in 6 months Middle Grace apartment 36% in 2-3 months Upper higher

29 Name of bank Everest bank Nepal investment bank Kumari bank ACE finance Development credit bank ltd. Purpose of loan Purchase/ construction/ renovation Purchase/ construction/ renovation Purchase/ construction/ renovation Purchase/ construction/ renovation Purchase/ construction/ renovation No. of loans Loan size 15 yr. 15 yr. 15 yr. 20 yr. 15 yr. (minimum) Interest rate % 11.5% 11% % % Percent 75% 70% 60% 70% Upto 90% financed Guarantee Collateral, personal guarantee Collateral, personal guarantee Collateral, personal guarantee Collateral, personal guarantee Collateral, personal guarantee Loan type Criteria Equal monthly instalments (EMI) Monthly savings should be twice of EMI Equal monthly instalments (EMI) Certificate of salary disposable income of at least 25% more than EMI Equal monthly instalments (EMI) Monthly savings should be twice of EMI Equal monthly instalments (EMI) Certificate of salary Equal monthly instalments (EMI) Certificate of salary

30 Rental housing available About 33.1% of housing is available for rental purpose in valley Supplier Rental housing entirely supplied by private and individual owners and serves the housing need of 25% of total urban population Size & density Average family size of 4.8 share a single room of 120 sq. ft whereas 5 daily wage workers one room of 110 sq. ft. Poor condition Traditional houses in the historic core and urban centres slums with poor light and ventilation, dampness, and problem of solid waste disposal

31 Public housing Public protest/miss the target group/delay in implementation/ cost overridden, etc Land poling Size & scale of land pooling inadequate; No integration with building construction; Poor in terms of urban design layout, monotonous environment, inconvenient for daily activities and low density Benefitted only landowners Individual land broker Unscientific way of subdivision and street network; No socio-emergency amenities Private housing Gated community people buy lifestyle along with house; Housing conflict urban service management, maintenance and operation, land ownership issue, etc. High rise apartments vulnerable to earthquake and fire; Affordable by high income group only

2000 over 15 year period Rain water harvesting and water filter Landownership with UCSF Urban community support fund [UCSF]: KMC, NGO, [inter]

32 Kirtipur Squatter Resettlement project Contextual background Success part Weaknesses 44 nos. of TWO sotrey houses in 6 Ropani Monthly payment of NRS over 15 year period Rain water harvesting and water filter Landownership with UCSF Urban community support fund [UCSF]: KMC, NGO, [inter] national agencies Involvement of various agencies for infrastructure provision Active participation of squatters and NGO Poor layout plan and interiors space design Location away from city centres Neighbors yet to accept this new comers Poor maintenance and operation of water tank/septic tank

33 Alternative solution and recommendations Genuine squatter settlements Vulnerable squatter settlements Fake squatter settlements Upgraded Relocated Removed/Cleared Community, trust, long lease and rent to purchase Community, trust, long lease and rent to purchase Temporary occupation certificate till clearance Fencing of property along with signposts, land used for some purposes rather than left unattended, early occupation and adequate policing of acquire land will help to prevent encroachments and illegal occupation; For ultra urban poor, recognition of housing is better than land right and tenure security; Integrated policy at national level for linkages of poverty alleviation, urbanization and urban housing, decentralization of activities from the valley; Partnership building among the concerned agencies for provision of low-income housing for urban poor; Strengthen cooperation and coordination among the concerned agencies

34 Thank you Terima Kasih

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