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Formalisation of Informal settlements in Rundu

By: Maria MarealleTown Management ExpertLux DevelopmentProject NAM/343

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Project NAM/343

•

Title: Formalisation of informal settlements and extension of water and sanitation networks in Rundu and Katima Mulilo

••

Development ObjectiveDevelopment Objective::

To contribute to the improvement of Rundu and Katima Mulilo inhabitants’

living conditions by increasing the proportion of people with secure tenure and upgrading the water and sanitation network (MDG 11)

••

StartStart::

December 2006 End: September 2011••

BudgetBudget::

9’900’000 Euro

••

CounterpartCounterpart::

Ministry of Regional and Local Government, Housing and Rural Development

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What is formalisation ?

1. Layout Planning2. Surveying of Town Land3. Socio-economic Survey & Pricing Policy4. Registration of Owners5. Provision of services (water & sanitation – Kehemu &

Sauyemwa ONLY)6. Land Delivery Approvals – NAMPAB/TS Board/SGO7. Plot owner Verification and Vetting8. Confirmation of Plot Ownership 9. Payment of Plot into Formalisation Revolving Fund

Accounts10.Signing Agreements of Sale11.Debt Management12. Issue of Title Deeds

Land delivery through -

Township Establishment

Subdivision

Applicatio n to

Council

for:1)Subdivisio n;2)Township Est

Council ApprovalCouncil Approval

ApplicaApplica tion to tion to

thetheMinisteMiniste

rr

NAMPAB /NAMPAB /Townships Townships

BoardBoardSurvey

Approval by Surveyor- General

Registration by the

Registrar Deeds

Certificate of

Registered Title

Sec 5 of Ord 11 of 1963Sec 10 of Ord 11 of

1963 Sec 5 of Ord 11 of 1963

Sec 11 of Ord 11 of 1963 Sec 12 of Ord 11 of

1963

ProclamationBy the

Minister Sec 13 of Ord 11 of

1963

Existing ervenApplication to Council1

Council Approval2

Application to the

Minister3

Payment ofPurchase

Price7

Signing Deed of

Sale4

Applicant informed

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Minister Approval

6

Registratio n

8Title Deed

9

Private Treaty/NegotiationPrivate Treaty/Negotiation

Development Control

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1. Layout Planning

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Stakeholders’ Layout Consultation

Land Pricing and Sales Policy

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A Joint Initiative of RTC and KMTC

Highlights:

• Selling Price N$10/m2 for those with incomes <N$3’000• Town Council’s rates for those with incomes >N$3’000/year• 0% Interest for first 24 months and thereafter 10% interest per year• 10 years repayment period• No re-sale within 10 years. In case of sale town council has first preference

DOCUMENTS MAPDOCUMENTS MAPDOCUMENT

BIND THE 3 PARTIES TO COOPERATE IN SET UP & RUNNING REVOLVING FUND

PARTIES PURPOSE

JOINT VENTURE JOINT VENTURE AGREEMENT AGREEMENT -- JVAJVA

LD; MRLGHRD & KMTC or RTC

LD; MRLGHRD;KMTC/RTC; DBTHC;LHRF & LADC

MEMORANDUM OFMEMORANDUM OFUNDERSTANDINGUNDERSTANDING

BIND THE 6 PARTIES IN A GOOD WILL SOCIAL COMPACT WITH CLEAR ROLES

BINDS THE 3 PARTIES TO LAND SALE THROUGH LOAN OVER 10 YRS

LOAN ADMINISTRATION LOAN ADMINISTRATION MANUALMANUAL

STAFF OF KMTC & RTC

GUIDELINE TO ADMINISTER FUND

KMTC/RTC; LHRF;BENEFICIARY

SALES & LOAN SALES & LOAN AGREEMENTAGREEMENT

KMTC/RTC; LHRF;BENEFICIARY

BINDS THE 3 PARTIES TO CASH LAND SALE

LEGALLY BINDS BENEFICIARY TO REPAY LOAN TO LHRF

MORTGAGE BONDMORTGAGE BOND CONVEYANCER;LHRF, BENEFICIARY

CASH SALESCASH SALESAGREEMENTAGREEMENT

MANAGEMENT PLAN_1

INSTITUTIONAL FRAMEWORK FOR FORMALISATION REVOLVING FUND

LUX DEVELOPMENTMRLGHRD

KMTC/RTC

DBTHC

LADC

TDF SUBURBCOMMITTEES

SDFN

BENEFICIARIES IN THE INFORMAL SETTLEMENTS

BANKS

MANAGEMENT PLAN_2ADMINISTRATION PROCESS FLOW DIAGRAM

APPLICANT FILLS FORMSUBMITS TO DBH OFFICER AT TOWN COUNCIL

OPEN LOAN FOLDER & REGISTER

SUBMIT APPLICATION TO DBTHC

APPLICANT FILLS COMPLETESLOAN & BOND AGREEMENTS

FORM CHECKED Not OK

OK

Not OK

NOTIFYAPPLICANTGIVINGREASONS

REAPPLY

END

APPROVAL ADVICE TO APPLICANT

BENEFICIARY ACCEPTS OFFER

OK

LOAN SALE

CASH SALE APPLICANT FILLS CASH SALEAGREEMENT

APPLICANT PAYS DEPOSIT & TRANSFER FEES

BOND REGISTRATION IN DEEDS OFFICE

LOAN REPAYMENTS UP TO 10 YEARS

FULL PURCHASE PRICE PAID

DEFAULT PAYMENTS

DEFAULT CORRECTED

PAYMENT OF TRANSFER FEES& FULL PURCHASE PRICE

ACQUIRE TITLE DEED

FULL OWNERSHIP WITH TITLE DEED

DEFAULT PERSISTS

NEW APPLICANTS

PRE-SCREENEDAPPLICANTS

REPOSESSION THROUGH DBTHC GUIDELINES

MANAGEMENT PLAN_3FINANCIAL FLOW DIAGRAM

FUNDS INFLOW

BENEFICIARY

FUNDS OUTFLOW

FORMALISATION REVOLVING FUND ACCOUNT

REQUEST CONSIDERED BY DBTHC

BANK

RTC/KMTCREVENUEOFFICE

EITHER

OR

1. Individual accounts at bank2. Regular reconciliations to DBTHC

EXPENDITURE MOTIVATION

NOT OK END

ACCOUNTING OFFICERPREPARES MOTIVATIONAND SUBMITS TO MRLGHRD FOR APPROVAL

OK

NOT OK

OK

ACCOUNTING OFFICER PREPARESCHEQUE FOR SIGNING BY CEO

END

REVIEW

DISBURSEMENT COMPLETE

REVIEW

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2. Surveying of Town Land

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3. Registration of Plot Owners

Plot Verification & Vetting

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Complete in Kehemu, Kaisosi & Kasote

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PLOT OWNER CONFIRMATIONKehemu

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4. Provision of services

Some Formalisation Facts• After more than 12 months, the 778 residential plots

in phase 1 yet to be fully allocated. 14’996 plots to be allocated in total. By contrast, 3’407 of the 3’663 plots formalised in KMTC now allocated (93%).

• A mere N$34’000 has accumulated in the RTC Revolving Fund accounts compared to nearly N$340’000 in KMTC

• No Agreements of Sale signed to date• No Debt management system in place

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Concerns and Challenges• Relatively poor performance attributed to:

a. Lack of cohesion & unity of purpose between:a. RTC Councillors & Officialsb. RTC and Communityc. RTC and Project

b. Lack of human capacity in RTC to spearhead certain project roles. CMO, CLO, CFs took the lead until Community started to resist. PMU not established as agreed

c. Political/Traditional/Church leadership interference feigning ignorance & de-campaigning the project

d. Sluggish change in management culture 21

Way Forward• Phase-out Plan introduced to enhance effective

closure of project activities. Critical aspects include:– Building RTC capacity to institutionalise project by

employing the CLO and CFs for continuity. – RTC Councillors to create enabling environment

through eradication of confusion among beneficiaries– RTC’s presence in community should be felt to avoid

some people taking advantage on land sales

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THANK YOU

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