© 2022. The World Bank Group.
All rights reserved.
The material in this work is subject to copyright. The World Bank Group encourages dissemination of its knowledge. Thus, this work
may be reproduced, in whole or in part, for non-commercial purposes as long as full attribution to this work is given.
Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818
H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org
Photos: World Bank
Table of Contents
Acknowledgements...................................................................................................................................................................................................................................................................................... i
Executive Summary...................................................................................................................................................................................................................................................................................... ii
Introduction......................................................................................................................................................................................................................................................................................................... iv
Bibliography......................................................................................................................................................................................................................................................................................................... 43
1. Context and Evolution of Sites and Services.......................................................................................................................................................................................................... 1
1.1 Background ............................................................................................................................................................................................................................................................................ 2
1.2 Decline and Renewed Interest in Sites and Services.................................................................................................................................................................................. 4
2. Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities.................................. 7
2.1 Sites and Services Underlying Assumptions.................................................................................................................................................................................................... 8
2.1.1 The Incremental Housing Approach and Self-Help................................................................................................................................................................... 8
2.1.2 Occupancy of Sites........................................................................................................................................................................................................................................... 10
2.2 Land and Planning Considerations......................................................................................................................................................................................................................... 12
2.2.1 Land as a Key Input in Sites and Services.......................................................................................................................................................................................... 12
2.2.2 Location of Sites.................................................................................................................................................................................................................................................. 15
2.2.3 Planning, Building and Infrastructure Standards......................................................................................................................................................................... 16
2.3 Cost Recovery and Beneficiary Support Considerations......................................................................................................................................................................... 18
2.3.1 Targeting and Affordability......................................................................................................................................................................................................................... 18
2.3.2 Cost Recovery Model and Subsidies.................................................................................................................................................................................................... 21
2.3.3 Financing for Housing Consolidation.................................................................................................................................................................................................. 23
2.3.4 Provision for Rental and Other Income Activities........................................................................................................................................................................ 25
2.4 Implementation Considerations.............................................................................................................................................................................................................................. 26
2.4.1 Project Design, Project Financing and Private Sector Involvement................................................................................................................................ 26
2.4.2 Implementing Institutions........................................................................................................................................................................................................................... 27
2.4.3 Community Engagement............................................................................................................................................................................................................................ 30
2.4.4 Environmental and Social Framework................................................................................................................................................................................................ 31
2.5 Low Carbon Development Opportunities........................................................................................................................................................................................................ 33
2.5.1 Sustainable Solutions to Service Provision: Solar, Sanitation, Solid Waste................................................................................................................. 33
2.5.2 Water Access and Food Innovation...................................................................................................................................................................................................... 34
2.5.3 Housing Design, Construction and Materials................................................................................................................................................................................ 34
2.5.4 Design and Planning Innovations.......................................................................................................................................................................................................... 34
2.5.5 Communications and Data Innovations........................................................................................................................................................................................... 34
2.5.6 A Caveat on Technology and Innovations ...................................................................................................................................................................................... 35
2.6 The Broader Country and Sector Context.......................................................................................................................................................................................................... 35
2.6.1 Stable Socio-political and Economic Context............................................................................................................................................................................... 35
2.6.2 Comprehensive Housing Sector Approach.................................................................................................................................................................................... 36
3. Guiding Principles for Designing and Implementing Sites and Services Projects................................................................................................................ 38
3.1 Summary of Lessons Learnt.......................................................................................................................................................................................................................................... 40
3.2 A Programmatic Approach to Sites and Services.......................................................................................................................................................................................... 41
3.3 End Note..................................................................................................................................................................................................................................................................................... 42
4. Annexes................................................................................................................................................................................................................................................................................................... 46
Annex 1: Considering the ESF In Implementing Sites and Services Projects .......................................................................................................................................... 47
Annex 2: Comparisons of Different Land Models & Their Application To Sites and Services ....................................................................................................... 50
Annex 3: Case Study Projects .................................................................................................................................................................................................................................................... 52
Annex 4: Sample Project Designs and Layouts ............................................................................................................................................................................................................. 56
Acknowledgements
This review was developed by a team led by Sheila Kamunyori (Senior Urban Specialist) and consisted of Rabeeya Suhail Arif
(Urban Specialist, Consultant), Keziah Mwang’a (Urban Specialist, Consultant) and Julie Tasker-Brown (ESF Specialist, Consultant).
Judy Baker (Global Co-Lead, Global Solution Group on Urban Poverty, Inclusive Cities and Housing) provided strategic guidance
and overall direction of the review. The team wishes to thank all reviewers who provided valuable comments during the
technical review: Dean Cira, Reinhard Goethert, Sumila Gulyani, Maria Angelica Sotomayor and Ming Zhang. Barjor Mehta
provided insights and further inputs during and after the technical review. Sameh Wahba (Global Director) provided strategic
leadership and chaired internal reviews.
Reconsidering Sites and Services: A Global Review | i
Executive Summary
The Challenge of Affordable Housing Approaches Study Objectives
The provision of adequate low-income housing remains a It is against this backdrop that the World Bank initiated
challenge for many governments in developing countries a review of sites and services to determine its viability
with demand surpassing supply. With no real options for in addressing affordable housing. The review sought to
housing, the urban poor settle in informal, fragile sites that establish: i) the design and basic assumptions of sites and
lack basic services. Globally, over 1 billion people live in slums services particularly of the 1960&70s; ii) their effectiveness
and informal settlements. This figure is expected to double in meeting the set objectives; iii) the factors that led to their
by the year 2030, with at least a total of 100,000 housing decline or abandonment by donors and governments; iv)
units per day required to meet the demand. However, factors that contributed to their success or failure in countries
meeting this demand remains a challenge with a variety of where they were adopted; v) how building technologies,
constraints hampering housing delivery on both the supply land and housing markets have changed over time for or
and demand side. On the demand side, poverty remain a against sites and services; and vi) guiding principles for
key impediment with 74 percent of people in low-income exploring sites and services projects moving forward. The
countries living on less than $2 per day, making it impossible hope is that the study will provide insights and guidance for
to afford market rate housing. On the supply side, high land governments, development practitioners, developers and
values, limited infrastructure investments, stringent planning local communities interested in exploring sites and services
and building regulations, corruption and bureaucracy make in developing countries as a potential solution to affordable
real estate investment complex and costly, driving up the housing demand.
price of new and available housing units. Governments across
the developing world have tried several affordable housing Viability of Sites and Services as Low-Income
approaches, with limited success. Housing Solution
The study examines the experiences of the 1st generation
The sites and services approach has, however, resurfaced of sites and services projects across 14 thematic areas.
in policy discourses as a potential mechanism to Initial findings provide mixed results but overall point to the
expand access to low-income housing, particularly in potential of sites and services to effectively contribute to
developing countries. Recent research appreciates that meeting the housing demand in developing countries. The
the determination of past sites and services performance sites and services of the 1960s and 1970s were premised on
was either made too early or used narrowly defined metrics. the principles of incremental housing through self-help and
Coupled with ongoing housing crisis, reconsidering sites and mutual help, where government provided serviced land
services is on the table. An evaluation done by the World to households to self-build. While it was successful in some
Bank’s Independent Evaluation Group (IEG) on the World countries, the approach never produced the expected results
Bank’s support to the management of urban spatial growth 1
in others. The factors that contributed to the level of success
recommended intensifying the deployment of preventative ranged from government buy-in and political support,
urban upgrading such as sites and services. The report is adequate subsidies and financing to proper location of sites
clear that without preventative measures, efforts towards in relation to employment opportunities.
urban development in rapidly urbanization contexts will be
continually playing catch up.
1
World Bank (2021) “Managing Urban Spatial Growth”. Independent
Evaluation Group (IEG).
ii | Reconsidering Sites and Services: A Global Review
Current building technologies, and land and housing require the acceptance of not one but several ideas: flexible
markets provide several opportunities that make the buildings standards, robust community involvement, open
approach worthy of reconsideration. New building allocation systems, building credits, different models of secure
technologies such as 3D printing provide faster and efficient land tenure and cost recovery.
building alternatives, as compared to labor intensive
approaches used during the 1960/70s. Policy changes in Looking Ahead: Guiding Principles
the land and housing markets now allow for a multiplicity It is clear that sites and services can offer a potential
of tenure systems including sectional property rights and policy option, but important considerations emerge as
community land rights, which increase the options available we consider applying the lessons learnt in the previous
for participating governments and households to choose section towards future projects and programs. First, sites
from. Wide acceptance of high urban densities through and services will not work in every context. Thus, the Guiding
concepts like re-blocking and compact cities signify the Principles presented in this study aim to be guidance, rather
possibility of governments’ approval of flexible building and than a prescription, for project teams when designing sites
infrastructure standards previously contested. Increased and services. Second, sites and services can be recrafted into
participation of NGOs and the private sector in affordable a broader approach beyond a singular type of intervention
housing creates opportunities for additional resources and for housing for urban poor. The approach can support
innovations that can translate to better outcomes of sites and the provision of housing for all income groups or even to
services. It is however critical to understand that the approach support guided urban expansion. To design a sites and
may be more applicable in some places as compared to services intervention, a project team would need to first
others. Second, for it to be effective, the approach needs determine the country’s primary objective for implementing
to: be embedded in the broader national housing context; sites and services. Third, a programmatic approach to sites
be targeted and cognizant of the diversity of beneficiaries’ and services has the potential to address bottlenecks more
preferences; draw the participation of a multiplicity of actors; holistically. The study, therefore, assesses the lessons learnt
adapt to local contexts and draw on current innovations and from both a project-level and programmatic-level lens. The
technologies in housing and land markets to minimize costs Guiding Principles presented in Section 3 is a starting point to
and time. Housing programs for low-income families also designing projects at both these levels.
Reconsidering Sites and Services: A Global Review | iii
Introduction
The Housing Challenge intervention, establishing their effectiveness in meeting the
Affordable housing demand in many developing countries set objectives, identifying factors that contributed to their
outstrips supply. With the market unable to meet low-income success or failure in countries where they were adopted,
housing demand, governments are hard pressed to provide identifying how building technologies, land and housing
lasting solutions. In the past, governments and partners markets have changed over time in support of or against
have tried several approaches such as social housing, sites sites and services and drawing lessons and potential guiding
and services, slum upgrading and rent subsidies programs. principles for possible future projects. The review will guide
However, questions abound on the potential of some of these any entity (governments, practitioners, NGOs, private
approaches to effectively address the housing challenge, developers) interested in exploring sites and services as a
sometimes leading to inertia or complete abandonment by potential solution to affordable housing demand, particularly
stakeholders. Low-income housing approaches form a small in developing countries.
percentage of most national and local governments budgets.
Such reluctance in the context of the current global housing Approach
crisis calls for re-examination of past and current affordable The assessment reviewed secondary literature comprising
housing approaches to provide clarity and lessons on their of academic papers on sites and services and reports of
potential to address the housing challenge. Recently, sites both World Bank and non-Bank project evaluations across
and services have re-entered the affordable housing policy different regions and time. The study also critically analyzed
discourse, as a possible solution to the housing crisis. how building technologies, land and housing conditions have
changed over time in favour of or against sites and services.
Study Objective
In this context, the World Bank has carried out this review Structure of the Paper
to explore the potential for sites and services as an option Section 1 provides a brief context giving pivotal timelines in
for solving the housing crisis for the poor. The objective of the evolution of sites and services. Section 2 examines the
the review is to provide a clear understanding of the large- outcomes of the approach and draws key lessons from the
scale 1st generation sites and services of the 60s and 70s by first generation of sites and services. Lastly, the paper presents
assessing their structure and guiding principles, examining guiding principles for future sites and services.
reasons most governments and donors abandoned the
iv | Reconsidering Sites and Services: A Global Review
1
Context and Evolution of
Sites and Services
Reconsidering Sites and Services: A Global Review | 1
Context and Evolution of Sites and Services
1.1 Background
Table 1: Key Messages /Summary of Sites and Services Context
- The broad objective of sites and services approach was the delivery of incremental housing for the poor through
the provision of small, serviced plots, sometimes with a core unit.
- Government provided serviced land for beneficiaries to incrementally build homes over time.
Concept - Target was mainly low-income households but, in some cases, middle- and higher-income groups were included
for cost recovery purposes.
- Financing for land and house consolidation was sometimes provided but, in most cases, residents built using their
own resources and labor (sweat equity), and mutual self-help.
- Governments
- International Finance Institutions (IFIs)
Actors - The World Bank financed the largest share of sites and services in the 60s and 70s.
- Communities as beneficiaries and builders
- Local contractors (contracted by residents to build homes for them)
- Sites and services approach gained popularity in the 1960s and 1970s driven by demand for housing due to rapid
urbanization and failure of the public housing model
- Few examples in Africa (Kenya) and Latin America (Chile) happened earlier (1920s -1950s) without or with limited
Evolution government support.
- Use of the approach for low-income housing declined in the 1980s and 1990s due to policy change at the World
Bank, which was the largest financier. Critiques of the model on its inability to meet its objectives were also a
contributing factor to the decline.
- Sites and services still in practice, largely dominated by private developers who acquire private land, subdivide,
invest in minimal or no services and sell plots to individuals to construct houses.
- Target is mostly middle- and high-income clients
Current - Popular in African and Asian cities
Context - Several governments in Africa (South Africa), Asia (Pakistan) and Latin America (Guyana) have continued with the
approach to date.
- The persistence of the model in housing has necessitated a revisit to clearly understand factors that led to its
decline and its potential for delivering affordable housing.
T he sites and services model garnered wide support
among governments and donors as a panacea to the
affordable housing crisis and rapidly growing slums in
shortage in public housing provision was also compounded
by most governments’ fear that providing housing to poor
rural migrants would encourage more people to move to
the 1960s and 1970s. Public housing approaches adopted urban areas - which would in turn jeopardize economic
by most developing countries had proved inefficient in growth that was mainly pegged on rural agriculture. Further,
meeting housing demand, partly due to rapid urbanization evidence showed that subsidized public housing was beyond
and the large amounts of resources required to quickly the reach of many poor households due to unaffordability
produce houses for the growing population.2 For example, and locations far from their places of employment for some
the population of Lusaka, Zambia more than tripled between of the new housing projects.4 The failure of governments
1963 and 1974, rising from 123,000 to 401,000 with only to adequately provide housing for the urban poor drew
193,000 housing units produced within the same period.3 numerous responses from several quarters including the
Consequently, the population living in unserviced squatter poor themselves, the informal private sector, academics and
settlements in Lusaka rose from 15 to 24 percent, a trend international agencies.
observed across many developing countries at the time. The
2
Vijayalakshmi, M. (2000). “Impact of housing policy: sites and services
schemes in Chennai city.” Review of Development and Change,VoLVI/
June-December 2000, 285-295.
3
Bamberger M.;Sanyal B.,Valverde N. (1982) Evaluation of Sites and
4
Mangin, W. (1967). “Latin American squatter settlements: a problem
Services Projects The Experience from Lusaka, Zambia. and a solution.” Latin American Research Review 2(3): 65-98.
2 | Reconsidering Sites and Services: A Global Review
Context and Evolution of Sites and Services
Faced with limited housing options, poor rural migrants partly driven by the relaxation of anti-urbanization colonial
would squat on any available public or private land rules and low agricultural returns, poverty became an
and self-construct homes incrementally using locally urban phenomenon characterised by squalid settlements,
available materials. Given the lack of infrastructure and consequently drawing more attention to urban areas. In
services in such settlements, they would soon become the early 1970s, several international agencies including the
squalid attracting government wrath. The approach to slum/ World Bank (the Bank) responded by entering the housing
squatter settlements by most governments was eviction and sphere.8 The Bank however put a condition on financing,
demolitions, referencing public health concerns. requiring governments to shift from public housing towards
self-help through site and services and in-situ slum upgrading
Scholars began to draw attention to the weaknesses of the inspired by the works of John F.C Turner and others.9 From
public housing model and slum settlements demolitions the Bank’s perspective, sites and services were seen as a shift
while advocating for a shift towards involving the poor in from the then prevailing inefficient public housing approach
their own housing production through self-help5. Inspired to harnessing the ability of the poor to house themselves by
by the prevailing actions of the poor in housing production facilitating self-construction.10
especially of squatter and slum settlements that were mainly
self-constructed on vacant urban land, they argued that Sites and services was however not a new concept, but
the poor had already proven their ability to provide their had been hitherto used in several countries to provide
own housing. The challenge remained creating an enabling low-income housing. The earliest sites and services projects
environment that would attract more private capital towards in countries like Chile, Kenya, and South Africa happened
urban housing for the poor. This would involve securing between the 1920s and 1950s, mainly without external
the investments of the poor through providing land tenure support.11 In Kenya, the colonial government housing policy
security and services such as water, sanitation, electricity mandated that employers provide housing for their native
and roads infrastructure in existing squatter settlements. workers. Consequently, settler farmers in areas like Eldoret
Instead of demolishing existing slum settlements to build provided building plots for their African farm workers for as
public housing, thereby reducing the available housing stock, long as they worked for them.12 To facilitate housing provision
governments would thus tap into the urban poor capital by especially in the context of rapid urbanization and employer
either providing serviced land and letting the poor build their reluctance to build houses, municipalities in Kenya (Kisumu,
own homes incrementally or by upgrading existing slums.6 Nairobi and Mombasa) set aside serviced land (what they
referred to as native locations) upon which employers and
At the same time, developing countries were putting Africans were required to build houses but without much
pressure on development agencies to expand their government assistance.13 In some instances, like Pumwani
development loans portfolio to include urban infrastructure in Nairobi, private developers were allowed to build houses
and housing.7 Previously, donor funding was mainly directed for rent in such plots. Sites and services in Apartheid South
to agricultural development and rural infrastructure driven
8
Abbot, J. (2002). “An analysis of informal settlement upgrading and
by the notion that the majority of the population and the critique of existing methodological approaches.” Habitat International
26(3): 303-315.”.
poor lived in rural areas. However, as urbanization increased
9
Werlin, H. (1999). “The slum upgrading myth.” Urban studies 36(9):
1523-1534.
5
Turner, J. C. (1968). “Housing Priorities, Settlement Patterns, and Urban
Development in Modernizing Countries, Journal of the American
10
Mayo, S. K. and D. J. Gross (1987). “Sites and services—and subsidies:
Institute of Planners, 34:6, 354-363, DOI: 10.1080/01944366808977562.”; The economics of low-cost housing in developing countries.” The
Mangin, W. (1967). “Latin American squatter settlements: a problem World Bank Economic Review 1(2): 301-335.
and a solution.” Latin American Research Review 2(3): 65-98. 11
Gross, S. K. M. a. D. J. (1987). “Sites and Services—and Subsidies: The
6
Abbot, J. (2002). “An analysis of informal settlement upgrading and Economics of Low-Cost Housing in Developing Countries.” The World
critique of existing methodological approaches.” Habitat International Bank Economic Review Vol.1 No.2, 301-335.; Hay, A. and R. Harris (2007).
26(3): 303-315.”; Pugh, C. (2001). “The Theory and Practice of Housing “’Shauri ya Sera Kali’: the colonial regime of urban housing in Kenya to
Sector Development for Developing Countries.” Housing Studies 16(4): 1939.” Urban History 34(3): 504-530.
399-423. 12
Hay, A. and R. Harris (2007). “’Shauri ya Sera Kali’: the colonial regime of
7
Abbot, J. (2002). “An analysis of informal settlement upgrading and urban housing in Kenya to 1939.” Urban History 34(3): 504-530.
critique of existing methodological approaches.” Habitat International 13
Hay, A. and R. Harris (2007). “’Shauri ya Sera Kali’: the colonial regime of
26(3): 303-315”. urban housing in Kenya to 1939.” Urban History 34(3): 504-530.
Reconsidering Sites and Services: A Global Review | 3
Context and Evolution of Sites and Services
Africa were also considered a cheap housing option for on average.17 The size, scale and background of sites and
residents. Initially, the government built small single-story services implemented by the Bank varied greatly with some
houses in standardized plots and provided services such as small as to accommodate hundreds of beneficiaries and
as water standpipes, roads and refuse collection points. In others as big as to cater to hundreds of thousands.18 From
order to cut down costs, the government however decided 1972 to 1986, seventy percent of the World Bank’s total urban
to apply the principle of sites and services for subsequent shelter lending consisted of sites and services and slum
constructions. This involved providing a site and some services upgrading projects. However, there was a drastic change
and leaving house construction to the residents. Self-building since the 1980s where sites and services and upgrading
was controlled and supervised by authorities with residents projects fell to only 15 percent of the total shelter portfolio. In
required to select house types from a limited number of worked contrast, housing policy and housing finance loans made an
out prototypes that were applied across the whole country.14 increase.19 Other international agencies involved in sites and
services include: the United States Agency for International
The broad objective of sites and services programs was Development (USAID), through the Housing Guarantee Loans
the delivery of incremental housing for the poor through Programme, (especially in Latin America, Kenya, Zimbabwe);
the provision of small, serviced plots, sometimes with a the UK Ministry of Oversees Development in Egypt; the United
core unit. The definition and typology of what constituted Nations Development Program (UNDP) and United Nations
sites and services evolved over time and was dependent on Capital Development Fund (UNCDF) in Dacca; the European
context. The key components in a housing scheme include Development Fund; the Canadian International Development
land, infrastructure and the house itself, which require several Agency (CIDA) and the Asian Development Bank (ADB).
inputs such as finance, building materials and labor. Building
on these requirements, the sites and services advocated that 1.2 Decline and Renewed Interest in
the government provides land and infrastructure services Sites and Services
and then sells or leases land to individuals. Households then
By the mid-1990s, most governments and donor agencies
incrementally self-build the houses as their own resources
had abandoned sites and services. This change was
(labor and finance) allow. This in essence followed the squatter
precipitated by a policy shift and financial crisis as well as the
settlement development without the squatting element.15 In
prevailing critiques of sites and services at the time.20 Towards
some instances, the government would provide the core of
the 1980s, the World Bank started to shift its development
the house (consisting of a kitchen and a toilet), a utility wall
policy from sites and services and slum upgrading towards
(a wall on the plot containing connections for power, water & municipal development and housing finance. Assessments of
sewerage services), a roof frame or a latrine. these interventions in the early 1990s however concluded that
they were unable to make citywide impact and that the rate
Among the donor agencies that participated in the sites of urban growth far outweighed the size of urban programs.21
and services development program, the Bank was the Urban programs such as sites and services were seen to ’divide
biggest player in terms of projects and resources. Between the city into projects, improving specific neighbourhoods
the early 1970s and 1998 the World Bank financed 100 sites without improving the urban policy and institutional
and service projects in 53 countries at a cost of $14.6 billion.16 framework such as the functioning of citywide markets for
In 1984, the Bank alone, initiated sixty-eight projects across a
17
Mayo, S. K. and D. J. Gross (1987). “Sites and services—and subsidies:
number of countries, each benefiting over 25,000 households The economics of low-cost housing in developing countries.” The
World Bank Economic Review 1(2): 301-335.
18
Table in annex 3 shows a sample of bank financed projects in several
countries.
19
Buckley and Kalarickal (2006), P.16.
14
Vestbro, D. U. (1999). “Housing in the Apartheid City.”
20
Abbot, J. (2002). “An analysis of informal settlement upgrading and
15
Srinivas, H. (Unknown). “Sites and Services.” critique of existing methodological approaches.” Habitat International
16
Owens, K. E., Gulyani, S., & Rizvi, A. (2018). Success when we deemed it 26(3): 303-315.”.
failure? Revisiting sites and services projects in Mumbai and Chennai
21
World Bank (1991). “Urban policy and economic development: An
20 years later. World development, 106, 260-272. agenda for the 1990s. World Bank, Washington.”
4 | Reconsidering Sites and Services: A Global Review
Context and Evolution of Sites and Services
land and housing’ (ibid pg.5). Suggestions were then made of obtaining land that provided loopholes for corruption and
that the Bank’s urban lending ought to align with the ‘broader malpractices as well as locked out the poor who in most cases
objectives of economic development and macroeconomic were illiterate and unable to figure out the processes; reliance
performance’ (ibid pg.4) and to ‘shift from the provision of on public land only; remote locations of sites away from
neighbourhood investments in shelter infrastructure to jobs; insufficient supply of plots to meet demand; budgetary
citywide policy reform; institutional development’ through limitations; and weak financial institutions for providing low
‘reform of central-local financial relations’ particularly lending interest loans to the poor to build or improve their homes.22
for housing; and high-priority ‘infrastructure investments
that support a country’s overall development’ (ibid pg.13). Recent research, however, appreciates that the
Additionally, ‘the analytical foundations of urban assistance’ determination of past sites and services performance was
would ‘also be strengthened, including assessments of land either made too early or used narrowly defined metrics.
and housing markets, regulatory audits, and analysis of Consequently, many of the projects were prematurely
central-local financial relations’ (Ibid, pg.13). deemed failures. Most latter studies on sites and services
Other critiques that led to the abandonment of sites and
22
Straaten, J. J. V. (1977). “Site and Service Schemes in Kenya.” Paper
services model included: unaffordability of housing by the Presented at the HRDU Seminar on Housing for the Lower Income
Groups’ 9th May 1977 National Housing Corporation; Aliani, A. H.
poor caused by the use of high standards of infrastructure and Y. K. Sheng (1990). “The incremental development scheme
and housing; leaking of project benefits to the better off; poor in Hyderabad An innovative approach to low income housing.”;
Rondinelli, D. A. (1990). “Housing the urban poor in developing
cost recovery; high and unsustainable subsidies; inability to countries: The Magnitude of Housing Deficiencies and the Failure of
replicate project on a large scale; unrealistic plot sizes that were Conventional Strategies Are World-Wide Problems.” American Journal
of Economics and Sociology 49(2): 153-166.; Akinsola, B. N., et al.
sometimes too big to be maintained by allottees, translating (2013). “Effective Site and services scheme as a means of solving low-
to subletting and lack of maintenance; long delays in provision income housing need in Nigeria.” Proceedings of 5th West African Built
Environment Research (WABER) Conference, the British Council in
of infrastructure and services; lengthy and complex process Accra, Ghana , on 12-14, August, 2013 pp 429-446.
Reconsidering Sites and Services: A Global Review | 5
Context and Evolution of Sites and Services
show significant levels of success.23 Recent evaluations of two live in slums today with limited or no services.29 This figure is
cities in India (Chennai and Mumbai) where a total 28 sites and expected to double by the year 2030, with at least a total of
services were developed with approximately 143,000 plots 100,000 housing units per day required to meet the demand.
between 1977 and 1994 tell a success story.24 These projects Additionally, the persistence of sites and services particularly
not only succeeded in delivering a range of decent housing through the private sector and NGOs provides an opportunity
options but also inclusive and livable neighborhoods. Sites to revisit the approach with the potential to learn and tap into
and services also served to increase the infrastructure and non-profit experiences and private sector capital that were
serviced areas footprint in many cities. Researchers argue largely missing in the first-generation sites and services. There
that, in Nigeria’s older cities, it is only the areas that had a is also emerging interest in sites and services from the donor
sites and services scheme that usually enjoy decent housing, community, for example a DFI commissioned study on sites
functional infrastructure and an environment conducive to and services30, signalling potential for revived donor funding
healthy living.25 In Kenya, sites and services provided a much- for this intervention.
needed boost to rental housing, with the majority of those
residing in the project sites by the 1990s being low-income Many governments have since recognized housing as a
renters.26 Between the 80s and 90s, sites and services are also human right, but difficult conditions hamper affordable
considered to have reached a significant number of middle- housing, and the housing crisis continues. The global
income blacks in South Africa, despite the government’s recognition of housing as a human right has prompted a
unwillingness to dedicate a huge budget to housing Africans.27 keen focus on housing provision for the poor but challenges
remain. On the demand side, 74 percent of people in low-
These success stories in addition to the ongoing housing income countries live on less than $2 per day, making it
crisis in Africa necessitates a reconsideration of the sites impossible to afford market rate housing without huge
and services approach as a potential housing solution. subsidies. Indeed, it is estimated that 1.6 billion people (a
None of the alternative instruments that succeeded sites third of urban residents) will struggle to secure adequate
and services appear to have addressed the bottlenecks to housing by 2025.31 On the supply side, securing land for
low-income housing – especially in relation to land and development remains a major challenge with about 70
housing products appropriate for low-income households.28 percent of land in emerging economies being unregistered
Forty years after the first sites and services, the urban poor or tenure insecure.32 The ease of doing business for housing
still have no real options for housing and are still settling in developers still remains a challenge with 159 days required
high-risk, informal, fragile sites. Globally, over 1 billion people to obtain a construction permit for non-OECD countries
versus 76 days for OECD countries. These vary in different
23
Owens, K. E., et al. (2018). “Success when we deemed it failure? regions with 155 days in countries in Sub-Saharan Africa,
Revisiting sites and services projects in Mumbai and Chennai 20 years 178 in Latin America and 199 in South Asia.33 These statistics
later.” World Development: 260–272.; Gattoni, G. ( 2009). “A Case for the
Incremental Housing Process in Sites-and-Services. encourage a reconsideration of sites and services as a
24
Owens, K. E., et al. (2018). “Success when we deemed it failure? potential solution to the housing crisis in most developing
Revisiting sites and services projects in Mumbai and Chennai 20 years
later.” World Development: 260–272. country cities, learning from previous sites and services to
25
Olaniran, M. O. (2018). “Urban Infrastructure Development: An inform future low-income housing.
Examination of Impact of Sites and Services Schemes in Ibadan.”;
Akinsola, B. N., et al. (2014). “Effective sites and services scheme as a
means of solving low-income housing need in Nigerian cities.” Journal
29
UN HABITAT (2016), Slum Almanac 2015-2016.
of Economics and International Business Management Vol. 2(3), pp. 50-
30
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D.
58, September 2014 ISSN: 2384-7328 Review Paper.
31
UN HABITAT (2020), World Cities Report 2020: The Value of Sustainable
26
Keare, D. and S. Parris (1982). Evaluation of Shelter Programs for the Urbanization; McKinsey Global Institute, (2014), A blueprint for
Urban Poor Principal Findings. WORLD BANK STAFF WORKING PAPERS . addressing the global affordable housing challenge.
Washington, D.C., U.S.A., WORLD BANK.
32
USAID (2021), Securing Land Tenure And Property Rights For Stability
27
Goodlad, R. (1996). “The Housing Challenge in South Africa “ Urban And Prosperity.
studies 33(9): 1629-1646.
33
Hallward-Driemeier M. and Lant Pritchett.L (2015), How Business
28
Owens, K. E., et al. (2018). “Success when we deemed it failure? is Done in the Developing World: Deals versus Rules, Journal of
Revisiting sites and services projects in Mumbai and Chennai 20 years Economic Perspectives—Volume 29, Number 3—Summer 2015—
later.” World Development: 260–272. Pages 121–140.
6 | Reconsidering Sites and Services: A Global Review
2
Re-examining 1st Generation
Sites and Services: Underlying
Assumptions, Lessons and
Emergent Possibilities
Reconsidering Sites and Services: A Global Review | 7
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
2.1 Sites and Services Underlying Assumptions
KEY MESSAGES
Underlying assumptions in the 1st generation sites and services included the viability of incremental housing and
mutual/self-help as constructing models, the desire for home ownership and the expectation of immediate site
occupancy.
Incremental housing is still widely practiced in developing countries (e.g. through private sector or owner-led
incremental housing and backyarding) underscoring the value of reconsidering this approach.
Sweat equity and mutual help are not tenable for future projects. The assumption of sites and services was that
low-income households would incrementally build houses using own labor (sweat equity) and mutual self-help. This
never prevailed as it did not make economic sense for allotees, and allotees hired building contractors to construct
houses for them.
Sites and services continue today driven largely by the private sector, pointing to the continued viability of this
approach. Future efforts should integrate these projects into a broader urban development context.
Both homeownership and rental options should be considered in future projects. The 1st generation sites and services
were largely modeled on individual home ownership, but most of the original sites now have a large share of renters,
indicating the need for rental options.
Immediate site occupancy should not be the sole indicator of success. At project closure, most sites were unoccupied,
and projects were considered failures. But later assessments show eventual full occupation. Projects should allow for
longer periods for occupancy to take place.
Access of new sites in relation to jobs and former homes should be considered to enhance faster relocation and
quicker occupancy rates.
2.1.1 The Incremental Housing Approach own housing problem through self-help in situations where
and Self-Help national governments were practically unable to intervene.34
T wo of the key principles of the sites and services were Building on their practices, Turner and others argued that the
incremental housing and self-help. The principles were challenge of low-income housing was not as a result of their
drawn from the prevailing ‘informal housing delivery systems’ inability to build homes but due to several constraints (e.g
(slums and squatter settlements) that were largely self-built lack of tenure security, infrastructure and services) which if
by the poor over time. As the public housing model failed to addressed could facilitate self-house construction.35
meet the housing demand, the poor resulted to squatting
on mainly un-serviced vacant land. Rural migrants would Instead of direct housing provision, governments would
identify vacant urban land and progressively build houses therefore facilitate self-housing for the urban poor through
over time using their own labor and resources. Due to the eliminating bottlenecks (such as land and infrastructure).
lack of infrastructure and services in these areas, they would Under the sites and services model, governments would
soon turn into slum conditions. In response, governments provide serviced land, sometimes with a core house or a toilet.
reacted by demolishing such settlements citing public health They would then sell these plots to households, especially
threats. On the other hand, proponents of slum settlements targeting the poor. Upon payment, plot owners received
argued that slum dwellers were contributing immensely
34
Mangin, W. (1967). “Latin American Squatter Settlements: A Problem
to the welfare of formal cities by providing labor, markets and a Solution.” Latin American Research Review, Vol. 2, No. 3 (Summer,
1967), pp. 65-98.
for goods and services as well as social capital and their
35
Abbot, J. (2002). “An analysis of informal settlement upgrading and
contribution needed to be recognized. A key contribution critique of existing methodological approaches.” Habitat International
26(3): 303-315”.; Mangin, W. (1967). “Latin American Squatter
was however seen as the provision and resolution of their Settlements: A Problem and a Solution.” Latin American Research
Review, Vol. 2, No. 3 (Summer, 1967), pp. 65-98.
8 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
formal land title and were expected to construct houses incremental housing is common, where private owners buy
incrementally, as resources would allow, using their own land from individuals or private land companies and then build
labor (‘sweat equity’), trained local contractors and mutual their houses over long periods of time using short-term loans.
self-help.36 To facilitate self-help construction, the projects Private companies also buy and service land and later sell to
trained beneficiaries in construction skills after which they individuals who self-construct. These approaches are mostly
built their houses sometimes based on plans provided by the done on private land, signaling the need to facilitate housing
project.37 Community engagement was also structured into on both public and private land as well as incorporating the
the model as ‘’mutual-help’’ where allotees were expected private sector in low-income housing provision.
to pull together and help each other. The typology of sites
and services ranged from a minimal level of “surveyed plot” The incremental housing approach is also seen today
to an intermediate level of “serviced sites” to an upper level through the practice of backyarding where formal
of “core housing” complete with utilities and access to shared homeowners erect informal structures in their yards for
community services. The level of services depended on the rent. This is a common practice in cities where there is scarcity
ability and willingness of beneficiaries to pay.38 of housing and limited enforcement of planning and building
regulations on private housing. This practice is also common
The self-help approach in terms of labor did not produce in old public housing estates like in the case of Nairobi. The
the expected results, for various reasons. First, the cost of practice of backyarding for rent underscores the importance
labor training and supervision often outweighed the cost to consider supporting both rental and homeownership
reductions of self-help labor. Second, the cost-benefit of using in future sites and services. Under the 1st phase of sites and
own labor versus hiring building contractors or skilled labor did services, the model was largely based on home ownership
not make economic sense for the allottees. As a result, most except in a few places that provided for rental. Indeed, sites
of them opted to employ skilled laborers to construct houses and services evaluations in India, Kenya and Zimbabwe show
for them.39 For most allottees, staying on site to provide labor a higher number of later occupants to be tenants.
meant missing out on income generating activities that would
in most cases provide adequate resources to hire skilled labor Ownership remained critical in fostering project
and use for other household expenses. Given this evidence, sustainability, but more immediate needs sometimes took
self-help and mutual help (‘sweat equity’) is no longer viable as precedence. During the first sites and services in Kenya,
an underlying principle for future sites and services or housing studies showed that most city dwellers were single residents
model. Additionally, emerging building technologies such as who had left their households in rural areas and came to
3-D printing and other machine-based building technologies search for incomes to meet other needs. Thus, in addition to
offer much promise as costs come down as they reduce the being unaffordable, permanent shelter in the city was not a
need for intense human labor while enhancing efficiency in priority. If considered, it was as a form of investment rather
house building. Nonetheless, community inclusion remains a than an urban home. On the other hand, a survey of residents
key ingredient of any successful low-income housing model. of Mogappir, Chennai 10 years after the introduction of sites
and services found that ownership was the single most
On the other hand, the incremental housing approach important outcome for most residents and an element that
was successful and remains an optimal approach to poor enabled residents to overlook other project shortcomings.
housing provision. Globally, sites and services remain Despite most residents being less satisfied with the services,
prevalent and critical to the delivery of housing. Owner–led they were more satisfied with their dwelling units.40
36
Srinivas H. (undated), Sites and Services.
Despite donors’ withdrawal, the sites and services model
37
UN HABITAT (1991). “The Incremental Developmenr Scheme_ A case
study of Khuda-Ki-Basti in Hyderrabad Pakistan “. continued in several countries as part of government
38
Mayo, S. K. and D. J. Gross (1987). “Sites and services—and subsidies: housing policy or civil society advocacy. Sites and services
The economics of low-cost housing in developing countries.” The
World Bank Economic Review 1(2): 301-335.
39
UN HABITAT (1991). “The Incremental Development Scheme_ A case
40
Nathan, V. (1995). Residents’ satisfaction with the sites and services
study of Khuda-Ki-Basti in Hyderrabad Pakistan “. approach in affordable housing. Housing and society, 22(3), 53-78.
Reconsidering Sites and Services: A Global Review | 9
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
remained a preferred low-income housing policy in South 2.1.2 Occupancy of Sites
Africa, with ‘the Independent Development Trust (IDT), set The expectation was that relocation to and build out of
up by then president De Klerk’s government in the wake the sites would be relatively immediate, but this was not
of his change of direction in February 1990’, establishing ‘a the case. At project closure, almost none of the projects
capital subsidy scheme (CSS). The CSS aimed to create tens had any sites fully built out. Most neighborhoods appeared
of thousands of serviced sites both in un-serviced informal underbuilt, under-occupied and thus considered a failure due
areas and on greenfield sites.41 In Guyana, the government to the lack of immediate response from allottees.47 Several
has continued to embrace sites and services to provide factors accounted for such outcomes. First, the distances
low-income housing.42 The approach remains entrenched between old and new residences were often too great for
in Pakistan’s government housing policy, although the easy transitions. Second, readily and economically available
majority of the plots go to diverse groups mainly those materials were not present on the site for temporary structures
with political and administrative connections.43 Local and thus families could not quickly move to the sites due to greater
international NGOs such as the Slum Dwellers International material and transport costs. This was resolved in some sites
(SDI) have persistently advocated for security of tenure and by adding a core unit, although it led to additional costs
services provision that would allow slum/squatter residents to the allottee – as the beneficiaries were required to pay
to incrementally build their homes. Where this has happened the costs of the unit within project period.48 Third, delay in
in countries like India, South Africa and Kenya, there has been land acquisition for the project and consequently the delay
some level of success, with communities enjoying better in service provision, which then hindered inhabitation of
living conditions. families such as was seen in Senegal. Fourth, the location of
some project sites was far from employment opportunities,
Variants of sites and services are also often driven by the causing less occupancy as less people wanted to move
private sector. In Pakistan, several housing developers create farther away from urban hubs and economic opportunities.
sites and services for high and middle-income groups in Where this jobs-housing trade-off was low, occupancy was
gated communities.44 In Brazil, there have also been attempts higher and build out faster. Fifth, in some situations families
by the private sector to demarcate plots with rights of way had to simultaneously maintain and pay for a city residence
but no infrastructure and sell the same to the poor who build while building new homes at the project site slowing down
incrementally. With the lack of infrastructure, these have their relocation. Finally, lack of credit for house construction
however ended up as informal settlements, though better remained a major cause for low occupancy of project sites.
organized than ordinary favelas.45 In Kenya, sites and services For example, in the case of Madras, the main reason given
persist to date driven mainly by private developers and land for the fact that 31.3% of the plots remained undeveloped
buying and selling companies. Land-buying companies and unoccupied during the project period was the lack of
and cooperative societies, which contribute to housing funding available for the allottees to build their homes. Delays
production through the sale of plots, have been on the in occupancy also caused a rise in costs during construction
increase. Between 1985 and 1992 the number rose from 108 due to inflation, thus creating further problems in the project.
to 227 and has been growing ever since.46
41
Mabin, A. (2020). “A Century of South African Housing Acts 1920–2020.” High occupancy levels occurred in projects that did not
Springer Nature.
experience the above hindrances. For instance, apart from its
42
Gattoni, G. ( 2009). “A Case for the Incremental Housing Process in Sites-
and-Services more strategic location in relation to centers of employment,
43
Qadeer, M. A. (1996). “An Assessment of Pakistan’s Urban Policies, 1947- the success of Arumbakkan (India) scheme, one of the most
1997.” The Pakistan Development Review 35(4): 443-465
successful projects of its kind, was hinged on availability of
44
Hasan, A. and H. Arif (2018). “Pakistan: the causes and repercussions of
the housing crisis.” iied Working Paper October 2018. house building finance from commercial banks. The project
45
Informal Cities in a Global Context. What do we learn from it?, Ir. Claudio
Acioly Jr. Institute for Housing and Urban Development Studies – IHS
47
Owens, K. E., et al. (2018). “Success when we deemed it failure?
Rotterdam, The Netherlands; H. Peter Oberlander, 1985, Land: The Central Revisiting sites and services projects in Mumbai and Chennai 20 years
Human Settlement Issue, The University of British Columbia Press. later.” World Development: 260–272.
46
Mwangi, I. K. (1997). “The nature of rental housing in Kenya.” Environment
48
Wainer. L.S, Ndengeingoma B., Murray. S(2016), Incremental housing,
and urbanization 9(22). and other design principles for low-cost housing, C-38400-RWA-1.
10 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
was already 72% occupied at the time of project appraisal in developed housing units, sometimes exceeding the project
contrast to the other two project sites with 2% occupation expectations. In some sites like Arioli in Navi Mumbai where
rate at Kodungaiyur and 26% at Villivakkam.49 the project had expected owners to only build two stories,
the study found out that majority of them had gone up to
Later assessments however show that the majority of three stories and others up to five stories, fully occupied
sites eventually got fully occupied.50 A 2015 evaluation by both owner families and renters.51 This is an indication
of sites and services in Mumbai and Chennai in India show that occupancy rates within project period should not be a
over 90 percent occupancy rates in almost all sites, twenty primary measure of success. Rather, projects need to allow
years since the projects closed. Plot owners incrementally for longer periods for complete occupancy.
49
World Bank, Madras PPAR.
51
Owens, K. E., et al. (2018). “Success when we deemed it failure?
50
Rakodi, C. (1991). “Developing institutional capacity to meet the housing Revisiting sites and services projects in Mumbai and Chennai 20 years
needs of the urban poor - Experience in Kenya, Tanzania and Zambia.” later.” World Development: 260–272.
Reconsidering Sites and Services: A Global Review | 11
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
2.2 Land and Planning Considerations
KEY MESSAGES
Accessing land for sites and services was and will remain a major challenge. Future projects are likely to experience
greater challenges in accessing land due to:
- Increase in urban land prices/values. In North Africa the average urban land prices have more than doubled every
three years since 1970. In Nairobi, the price of land rose more than six times between 2007 and 2019.
- Diminishing unoccupied public or government land in most cities. Sites and Services Schemes were mainly on
public land, which is almost becoming non-existent in some countries.
- Vibrant informal markets. Lengthy and costly processes in property registration in most African countries means
that property owners and especially lower-income owners, often do not bother registering their land, fueling illegal
transfers and informal land markets.
- Complex land acquisition processes and privatization of land in several contexts that make land acquisition
difficult.
- Rapid urban expansions that have meant limited land at the urban core and adjacent neighborhoods where most
low-income households prefer to live in close proximity to job opportunities.
Clear strategies for land acquisition, if needed, must be guaranteed. To prevent delays, projects should ensure that
land is available first before moving into later stages of preparation.
Current diverse innovations in land and property rights provide potential solutions to providing land for sites and
services. Governments could partner with private landowners to develop these projects. Projects could move away from
individual titling and freehold leasing towards communal titling and leaseholds to safeguard beneficiary rights.
Innovations in land instruments also present opportunities to source and finance land, such as land value capture,
transfer of development rights, charges on building rights, impact fees, land readjustment, etc.
2.2.1 Land as a Key Input in Sites and Services land prices have gone up 15 to 20 times.52 This is also the case
Land forms a key input in the sites and services. Yet, a look in the other African regions. In Nairobi, Kenya, the price of
into the current land conditions indicates that identifying land rose more than six times between 2007 and 2019.53 The
land for future low-income housing will be the single most same is also experienced in Indian cities with land prices far
challenge. This stems from several factors ranging from outweighing their fundamental value.54 This trend is not only
increasing land prices, urban expansions that have meant limited to emerging markets but also developed economies.
limited land at the core, diminished unoccupied public In the USA, the prices of land for single-family housing rose
land, vibrant informal markets, complex land administration by close to four times faster than inflation between the years
processes and privatization of land in several contexts making 2012 and 2017.55 These high land values increase the cost of
land acquisition difficult. housing provision, making shelter unaffordable to majority
of urban dwellers. A 2019 study by Center for Affordable
Since the 1970s, urban land values have gone up Housing Finance in Africa (CAHF) shows that over 90% of
rapidly across all regions, increasing the cost of housing households in Kenya are excluded from the formal housing
development. In the Northern African region (Sudan, Tunisia,
52
UN-HABITAT (2010). The State of African Cities 2010: Governance,
Algeria Egypt, Morocco), the average urban land prices have Inequality and Urban Land Markets UN-HABITAT (2010). The State of
more than doubled every three years since 1970. This is worse African Cities 2010: Governance, Inequality and Urban Land Markets.
53
Consult, H. (2019). “The Hass Property Index: Land Price Index Quarter
in the urban fringes, which fall outside official city boundaries Four Report 2019 P.”
and where there is less government control. In such areas,
54
Singh, G. (2016). “Land in India: Market price vs. fundamental value.”
55
Joint Centre for Housing Studies of Harvard University (2019). The State
of the Nations Housing 2019.
12 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
market whose lowest affordable housing products start from to include freehold land into categories of urban land.
US$40,000 (KES 4 Million) and above.56 Land costs traditionally Previously, only leasehold tenure system was accepted in
account for about 25 percent of urban housing costs57 but urban areas. The incorporation of freehold land into the
in some markets like Kenya, the figures range between 30- urban land market increases the land available for urban
40 percent.58 Future sites and services thus need to devise development including housing. The privatization of land and
innovative ways to reduce the cost of land. housing markets, as well as the opening up of cities to foreign
direct investments, and the declining role of the state in the
The available unoccupied public or government land is also economy and especially in the 1980s and 1990s through the
diminishing in most cities. Sites and services schemes were Structural Adjustment Programs (SAPs) also meant that the
mainly on public land or private land acquired by the state. state had limited influence on urban development.61 Tapping
Over time, however, unoccupied urban public land in most into private capital and resources thus remain important to
countries is almost becoming non-existent resulting from the success of future low-income housing.
allocations over time, grabbing or squatting on public land.
This is the case in most African counties especially in Egypt, Complex and costly land registration processes have also
Somalia and Kenya where land regularization and allocation led to vibrant informal market limiting access to clean
of leasehold public land have made government land developable land. In the Northern and Eastern Africa regions
competitive and encouraged malpractices like land grabbing for instance, the process of property rights registration and
and corruption, leading to the accumulation of public land transfers is lengthy, complex and costly. In Northern Africa,
by a few politically connected individuals which lock out the it requires ‘a notarial act, a formal survey of the property
poor. Upon acquisition, beneficiaries sell land at market rates undertaken by the specialized department, payment of a
generating huge profits, which leave little or no vacant public registration fee, and filing the notarial bill of sale with the land
land available.59 The limited public land in the face of soaring registry’.62 Given these lengthy and costly processes, property
land prices make sites and services as originally envisaged a owners and especially in informal settlements, are reluctant
challenge – as most governments would be unable to provide to register their land, fueling illegal transfers and informal land
the huge tracts of land needed. Further, the unavailability of markets in these countries. In Tanzania, for example, formal
public land in major urban areas and near the city center urban land markets cater for less than 10 percent of the
means that formal housing development opportunities for urban land demand with the rest relying on the informal land
low-income populations is usually earmarked on the urban markets. In Uganda, there is barely any established formal
periphery. This is the case in Nairobi where recent affordable land markets although they are beginning to develop with
housing locations have been proposed in areas such as transactions happening informally. In Rwanda land is purely
Athi River and Mavoko, which are 25 km away from the city government property although the 2005 Organic Land Law
center. As a result, the poor are likely to incur significant costs, recognized private ownership paving way for land market
in terms of both time and money, when they commute to privatization. Individuals and companies can however lease
employment opportunities in the city.60 land and develop within 5 years under certain conditions and
fees. As most individuals and companies are unable to carry
The decrease of public land requires considerations out development within the five-year timeframe due to the
to support incremental housing on private land. The inability to pay fees or meet development conditions, many
Government of Kenya for instance has amended land laws of them sell off and informally settle in other plots. Over 90%
of residents in Rwanda operate under informal land markets
56
Gardner, D., et al. (2019). Assessing Kenya’s Affordable Housing Market and illegality.63 These illegalities and informalities make land
April, 2019, Centre for Affordable Housing Finance in Africa (CAHF)
57
Hall, M. (2018). “The Relationship Between Lot Cost and Total Building Cost.”
unavailable for projects like sites and services and put huge
58
Nanjala, E. (2020). Making the elusive dream of home ownership for housing investments under risk by increasing potential
millions come true.
59
UN-HABITAT (2010). The State of African Cities 2010: Governance,
61
Pacione, M. (2009). “Housing.” University of Strathclyde, Glasgow, UK.
Inequality and Urban Land Markets. ibid.
62
ibid.
60
ibid.
63
Reconsidering Sites and Services: A Global Review | 13
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
disputes in land transactions.64 Flexibility of land registration Many past sites and services were built on individual
and development regulations is critical to allow clean land for ownership which had benefits and disadvantages.
urban development in the context of rapid urbanization in Individual ownership was preferred as it allowed access
developing nations. finance for the down payments and subsequent installments.
Secure land tenure supported by land titling was also an
Land acquisition challenges were severely experienced in essential pre-requisite for cost recovery as it promoted
the 1st generation sites and services when the government ownership confidence. This also guaranteed property rights,
attempted to buy private land for sites and services. In many which could be mortgaged if a potential borrower has full
countries, there were lengthy processes of land acquisition legal rights in the form of a freehold title. The absence of land
that led to delays in project execution, land related disputes, titles in some projects especially in Morocco, led to financing
high costs of land acquisition that translated to high cost impediments with most home improvements financed by
offloaded to beneficiaries and high costs of service provision, private savings. However, this meant that allottees needed
lack of land acquisition strategy and slow compensation of to be formally employed which locked out those informally
land to landowners by government agencies among others. employed or only interested in renting. Individual titling also
Intensive delays in India and Pakistan projects arose from the made it easy for beneficiaries to sell off their lots to well off
need for land acquisition. Some projects were delayed by the persons to cater for other social and economic household
need to acquire new land sites midway through the project needs, which was not the objective of the intervention.
which delayed the projects significantly.
Freehold land tenure systems appeared preferable for
Future sites and services need to have a proper strategy most individuals and present extra benefits for households.
for land acquisition that ensures guaranteed ready land Projects that adopted leasehold like in Thailand (two sites and
before project commences. An option to prevent land services developments at Songkhla and Phuket) experienced
related delays caused by disputes would be to defer project slow uptake due to the reluctance of prospective customers
approval until executing agencies have full possession that to purchase the plots because of the leasehold nature of the
is undisputable, and where applicable, until compensation development. Once the implementing agency converted the
to the landowners by the government is complete and projects from leasehold land at Phuket to a freehold the rate
necessary approvals have been secured for the purchase of uptake increased. However, while freehold land tenure
of any additional parcels. This makes land banking a critical system provides greater flexibility, it may also leave poor
consideration in low-income housing. Hence, it would be project beneficiaries vulnerable to infiltration by wealthier
useful for countries participating in project to have some groups as communities can easily off load property to the
land parcels both in major cities and regional cities in hand wealth in exchange for quick money.
in order to permit the necessary flexibility to adjust its
programs in changing housing markets. Projects should also The emergence of diverse models of land ownership and
include land market studies to enable the availability of up- innovation in property rights provides new opportunities.
to-date market information and the optimum land holdings Future projects need to incorporate diverse land and building
required to by effectively carry out programs. Multiple ownership models to accommodate different contexts,
land sources besides public land should be considered as income groups and preferences. The adoption of communal
sustainability and replicability of future sites and services land ownership or use of restricted land rights in pro-poor
schemes would be enhanced if they did not have to rely projects has proven largely successful in protecting the
on governmental land, whose supply in most cities is now infiltration of benefits to richer households. In Thailand
limited. The land location should also ensure good access to and Kenya,65 the adoption of communal land tenure in
jobs that can be guaranteed through close proximity to the slum upgrading projects was able to guarantee tenure
city or linking site to citywide infrastructure. security and prevent allottees from selling off their property
64
Colin, J.-P. and P. Woodhouse (2010). “Introduction: Interpreting Land
65
Robertson, D. (2017). “Community Land Trust Models and Housing
Markets in Africa.” Africa 80(1). Coops from Around the World.” RioOnWatch.
14 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
during desperate financial moments, thus safeguarding developing countries have experimented with mixed results.
the individual rights and long-term land access of the most 70
Studies show that poor quality of land administration is a
vulnerable in the society. The collective land ownership in major hindrance to property development and transaction
Thailand has enabled communities to maximize the use of in Africa.71 To effectively tap into these instruments, Africa
land collectively by allowing compact housing development will thus require to put-into place a number of factors.
on minimal land that in turn provide residents with extra living These include enabling policies especially in regards to land
space through common amenities and shared spaces. It also administration, strong local and city governments, support
helped to ‘protect people during the vulnerable transition from national government, an established financial sector,
periods from being informal squatter to being formal land robust public private partnerships. Annex 2 provides a list
and housing owner’ by preventing people from selling off of land instruments that future low-income housing can
rights during difficult times and becoming homeless again.66 explore.
Another innovative land tenure model was adopted under
the Favela Bairo, which does not explicitly provide titles but 2.2.2 Location of Sites
allows residents to own the structures.67 Other innovate
property rights include the sectional properties rights in KEY MESSAGES
Kenya which facilitate the registration of individual property The location of sites is a key determinant in the
rights in multi-story buildings or dense developments even occupancy of sites and relocation of households.
smaller land units that may not be accommodated under Project sites far outside of the urban core were
conventional planning regulations.68 The presence of these not connected to transport nodes and were thus
land ownership models provides diverse property rights undesirable to low-income households as they led to
alternatives that future sites and services could explore. higher transport costs and disconnected households
Given that land and property ownership depend on existing from employment opportunities.
property legislation, these need to also be examined and
Higher levels of success were found where housing
where applicable adapted to accommodate diverse property
projects were incorporated into existing urban plans
rights options.
and linked to existing transit nodes to enable jobs
access/foster job creation.
Innovations in land instruments, such as land value capture,
Urban sprawl has meant that the available cheap
transfer of development rights, charges on building rights,
land is further out and going after available cheap land
impact fees, land readjustment, etc, present opportunities
will exacerbate sprawl, with a negative impact on the
that can be tapped to enhance funding towards low-
carbon footprint.
income housing and infrastructure investments. Cities
and governments can also employ several instruments of Densification and strong integration with
land capture to generate funding for low-income housing. transportation will support sites to be closer to
These include land value taxes, land banking, inclusionary the core to reduce travel costs for residents and
housing, transfer of development rights, charges on building infrastructure installation costs but depending on
rights, impact fees, land readjustment, land leasing, special the size of the city, greenfields may or may not be
assessments, exactions etc.69 Developed countries have available within reasonable distance.
extensively used these with significant success and several Projects will need to develop an acceptable tradeoff
66
Boonyabancha, S. (2009). “Land for housing the poor—by the poor:
between distance from the center of the city
experiences from the Baan Mankong nationwide slum upgrading and affordability to allows maximum benefit and
programme in Thailand.” Environment and urbanization 21(2): 309-329.
occupation by low-income residents.
67
Handzic, K. (2010). “Is legalized land tenure necessary in slum
upgrading? Learning from Rio’s land tenure policies in the Favela Bairro
Program.” Habitat International 34: 11-17.
68
Mwenda, J. N. (2001). Registration of Properties in Strata in Kenya
University of Nairobi, Kenya.
70
Hart, M, 2020, Developing Cities Need Cash. Land Value Capture Can Help.
69
Building a Global Compendium on Land Value Capture- https://www.
71
Siba E. & Sow M. 2017, Financing African Cities: What is the role of land
oecd.org/regional/cities/Land-Value-Capture.htm value capture? Africa Focus, Brookings.
Reconsidering Sites and Services: A Global Review | 15
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
The high cost of land in some urban areas led to locating and the effort to integrate with other urban investments in
the 1st generation sites in the urban fringe where land was order to achieve an overall urban view - rather than a sub
cheap. These places however tended to be far away from sectoral one.
employment opportunities for the poor, thus cutting them
off from their source of livelihoods or translating to high The experiences from past sites and services necessitate
transport costs for those who relocate. This in turn translated the densification and integration of future projects into
to lower occupancy rates. Faced with lose of incomes upon the wider urban plans and infrastructure networks, such
relocation to sites and services, some beneficiaries chose that housing has basic services and easy access to jobs and
not to participate and if they did, sell off their plots to higher transport. With most cities having grown in size, cheap vacant
income residents and move back to informal settlement land for future sites and services will likely be further from the
in the inner city. This was observed in sites and services in core as compared to past projects. Going after available cheap
Dacca, Kenya and other places. In Dacca, studies from two land away from the core will only exacerbate sprawl having a
sites and services show that half of the population had left negative impact on the carbon footprint. Moving forward, it
the project sites shortly after relocation and went back to is critical to develop the typologies of available land for sites
build squatter settlements near the city center, citing the and services to help determine potential considerations. This
need to access employment and places of work72. These may include incorporating sites and services into the wider
places also tended to be away from trunk infrastructure and urban plan based on a transit node that enables jobs access
services translating to high costs of infrastructure, which led and/or the densification of existing inner-city settlements,
to higher costs for beneficiaries.73 and determining the acceptable tradeoff between affordable
land and distance from jobs.
Higher levels of occupancy were seen in sites which had
been selected as part of a larger urban plan. Examples where 2.2.3 Planning, Building and Infrastructure Standards
sites and services were incorporated into the larger urban
fabric and planning like in El Salvador, the Madras project KEY MESSAGES
in India and Lusaka provided different outcomes with high Lower planning standards (e.g., small lot sizes) made
levels of success. The projects in El Salvador chose favourable the project more affordable to the beneficiaries.
locations for most of its sites, such as in San Salvador where High standards translated to higher projects costs
the locations were close to employment opportunities, public for beneficiaries, locking them out where subsidies
transportation, existing urban structures and services and off- were not available. Lower planning standards also
site infrastructure. The Lusaka project that was off-site road discouraged infiltration by the wealthy, which
infrastructure incorporated the development of urban trunk maintained the project benefits within the intended
infrastructure to ease mobility that improved and created target audience.
roads traversing the project site, providing access to other The aim of lowering standards is to provide greater
parts of the township. The Mumbai and Chennai/Madras flexibility that takes into account the specific
projects included considerations for transport infrastructure conditions of the settlement, and some standards
linkages and future urban expansion. The Madras project may need to be made higher.
also took consideration of metropolitan planning and Public spaces and infrastructure in low-income
employment translating to high rates of occupancy. Many housing projects are also opportunities to be
of the later World Bank Group’s sites and services projects flexible, tailored to the specific context and allowing
adopted this new type of integrated urban development for incremental development. The incremental
approach and were designed with considerations for the growth approach can also be applied in the context of
numerous agencies involved within a citywide framework neighborhoods, allowing the neighborhood to transform
as needed. Typologies of public spaces that can allow for
72
Hasnath, S. A. (1982). “Sites and services schemes in Dacca: a critique.”
Public Admnistration and Development 2.: 15-30. greater density without compromise on livability.
73
UN HABITAT (1991). “The Incremental Developmenr Scheme_ A case
study of Khuda-Ki-Basti in Hyderrabad Pakistan “.
16 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
The low planning, building and infrastructure standards, and Mumbai) demonstrate the contribution of lower
under sites and services were highly contested by both standards in achieving relative project success. Both projects,
municipal governments and beneficiaries alike. Sites deliberately adopted smaller plots than standard to ensure
and services prescribed lower building and infrastructure affordability by the low-income groups. The smallest plot in
standards as a key component to lower costs and make Chennai and Mumbai were 33m2 and 21m2 respectively as
housing affordable to the poor. This would be achieved compared to minimum plot sizes of about 175-200m2 in other
through smaller lot sizes, use of locally available construction housing developments in these cities. These small plot sizes
materials and provision of communal services instead combined with reduced infrastructure standards served to
of individual connections. The majority of participating discourage plot purchase by higher income groups.77
governments and beneficiaries were however reluctant to
use lower standards as they were seen not befitting of urban Flexible planning standards also allowed for other cost-
housing. Rather, they opted for higher conventional standards saving measures. Norms that allowed space optimization
that led to higher costs of project implementation, making (e.g. the allocation of less space for streets) made plots less
subsidies necessary to reach the intended beneficiaries. expensive.78 Additional floors/developments were carried
Where subsidies were unavailable, the target groups were out later leading to greater densities that were able to
excluded while participation from higher income groups accommodate more populations over time. Later studies
increased. Bigger plots for example created incentives for done in India found that over time, low-income plots
initial allottees to sublet or resale to better off households. became densely populated housing multiple families.79
This was the case in many sites and services across countries This density increased as floors were gradually added to the
like Nigeria, Kenya and Dacca.74 buildings over time.
Projects that insisted on high standards largely made These experiences underscore the need to incorporate
plots and buildings more expensive and out of the reach appropriate standards in low-income housing as a cost
of the target poor.75 This was the case in Kenya, where the saving mechanism. An analysis of projects successes and
urban elite and government officials resisted the reduced shortcomings supports recommendations that future
standards intended to make building easier in the First Urban projects should endeavour to push standards and costs
Development Project, calling for a complete redesign.76 This still lower, include explicit provisions and opportunities for
went on to affect the planning standards in sites and services, rental arrangements and incorporate credit provisions more
which were raised compromising the ability for cost-recovery tailored to the needs of targeted families. The lesson from
for the poor. As a result the project benefits largely leaked to many case studies is that the first projects in a given country
high-income groups. should generally be small and relatively simple, enabling
the executing agencies to build their capacity to provide
Most projects that adopted lower standards led to the necessary services including adapting building and
significant levels of success. The use of lower standards, e.g. planning standards.
smaller plot sizes, was found to significantly reduce projects
costs while discouraging higher income households. Project However, it is not just simply lowering official standards
evaluations in two site and services projects in India (Chennai but making them flexible and adjustable on the onset to
allow for incremental development and other cost saving
74
Akinsola, B. N., et al. (2013). “Effective Site and services scheme as a measures while keeping in mind the need for improved
means of solving low-income housing need in Nigeria.” Proceedings
of 5th West African Built Environment Research (WABER) Conference, house/neighbourhood quality and safety. In fact low
the British Council in Accra, Ghana , on 12 -14, August, 2013 pp 429
-446.; UN HABITAT (1987). “Case study of sites and services schemes in
77
Owens, K. E., et al. (2018). “Success when we deemed it failure?
Kenya: Lessons from Dandora and Thika.”; Hasnath, S. A. (1982). “Sites Revisiting sites and services projects in Mumbai and Chennai 20 years
and services schemes in Dacca: a critique.” Public Admnistration and later.” World Development: 260–272.
Development 2.: 15-30.
78
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D.
75
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D
79
Owens, K. E., et al. (2018). “Success when we deemed it failure?
76
Project Performance Audit Report, Kenya Second Urban Project, (Credit Revisiting sites and services projects in Mumbai and Chennai 20 years
791-Ke/Loan 1550-Ke), June 28, 1991. later.” World Development: 260–272.
Reconsidering Sites and Services: A Global Review | 17
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
standards can cause problems in some instances. Hence, 2.3 Cost Recovery and Beneficiary
some standards may need to be adjusted upwards, e.g to Support Considerations
provide better community facilities such as schools, transport
2.3.1 Targeting and Affordability
access and playgrounds. The goal should therefore not be
about reducing standards for cost saving alone. Rather, KEY MESSAGES
adjusting them to enable better planning and rationalization Most projects were affordable and accessible to the
of urban growth, increase efficiency in land use, provide target populations, although leakage of benefits to
better infrastructure and services and promote equity by higher income groups was also prevalent.
allowing a larger share of low-income households access
Determining the beneficiaries’ true ability to pay
land and housing at lower costs while reducing public sector
was difficult in the context of informal and non-
inefficiencies. Understanding beneficiaries’ needs can be a key
traditional sources of income. The determination
in determining the flexibility required – e.g limiting parking
process needs to be contextualized and expanded to
spaces and providing more playgrounds. These planning
include non-traditional income sources.
and building standards should also be embedded in a larger
Beneficiary preferences were largely assumed which
comprehensive approach to the housing sector. Sites and
meant that some of the target beneficiaries did not
services can then be backed by specific enabling policy and
get their needs met. Having clearer understanding of
regulations that allow special norms and standards with areas
beneficiaries’ preferences will enhance project reach.
of application clearly defined to prevent their misuse.
Public spaces should be developed to allow for greater The majority of sites and services targeted low-income
density without compromise on livability. The opponents households, although in some projects middle- and
of low standards in sites and services cited the creation of higher-income groups were included particularly for
slum like conditions through neighborhoods congestion. cost recovery purposes. The eligibility criteria were mainly
Successful projects have however proved that small standards based on household incomes. The exact income levels were
do not necessarily translate to poor living conditions. In the dependent on specific projects and country context. In
Mumbai and Chennai projects, the infrastructure layout Lusaka for instance, sites and services targeted all income
allowed for greater flexibility. Further, despite the incremental groups but 50% of the plots were set aside for low-income
vertical growth over the years, municipalities have protected households – those earning between 20 and 70 Kwacha
the infrastructure provisions left from encroachment. The per month in 1974 – representing the 20th - 40th income
design of public spaces and infrastructure is also required to percentiles. This eligibility criteria changed over time moving
be flexible and tailored to the specific context. For example, up to 85 Kwacha and later 120 Kwacha due to inflation and
the incremental growth approach should not only be for the increasing cost of housing construction materials. The
individual houses but also the neighborhoods where the rest of the plots were free to be allocated to other income
grid allows for incremental development over time using groups. Other criteria were applied that included: individuals
flexible regulations to allow the neighborhoods to transform had to be residents of Lusaka, have the intention to live in
as needed. the purchased house and be self or wage employed and
earning a monthly income of at least 20 Kwacha. Other
factors such as family size, current tenure security and current
home standards and services were also considered with
priority given to those with larger families, insecure tenure
and poor quality of services. Elsewhere, in Harare, projects
were generally aimed at households with incomes of around
Z$150 (as compared to the median incomes of families living
in low-income areas of Z$175 in 1982). In other projects like
18 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
El Salvador and Senegal, the projects had broader objectives population but extended to about 17th percent income
to increaser public housing that would be affordable to the percentile. This is however more a case of unclear targeting
urban poor. From the preceding, it is clear that most projects rather than project failure to reach the target – the project
were intentional about reaching the urban poor. objective was to increase by about ‘50 percent the annual
production of public housing, as well as to achieve the
Generally, most projects reached their target groups. acceptance of the progressive development concept and the
Evaluations of four sites and services projects in El Salvador, introduction of lower-level services’ (pg. 1).82 Nonetheless, the
the Philippines, Zambia and Senegal show that projects project remained accessible to most groups including low-
were able to reach low-income groups with the majority of income households, as compared to public housing projects
beneficiaries falling between the 20th and 50th percentiles that rarely reached even the median income levels. Further,
of the income distributions.80 This was the case in places the low-income beneficiaries appeared to sustain the benefits
like Lusaka where, despite the projects targeting diverse and afford to repay their loans just like other income groups,
groups, it was able to accommodate a significant number meaning that the project remained affordable to the poor.
of poor households even in settlements deemed for higher
income groups. The Lusaka project aimed to service three In other projects like Nairobi, Lusaka and Harare, project
neighborhoods (Lilanda, Matero and George), which targeted benefits leaked to higher income groups as a result of
different income distributions allowing for a wide range beneficiaries’ transfer. This resulted from several factors. First,
of options and catering to a wide spectrum of the urban in most countries, there were no adequate provisions made
population. Nonetheless, most of the settlements were able to address the housing needs of middle- and high-income
to accommodate low-income households. For instance, in groups, making the demand high in sites and services. An
Lilanda, about 58 percent of the beneficiaries came from the evaluation of the Dandora (Nairobi) sites and services in 1982
poorest 30 percent of households in the city, while Matero noted that about half of the occupied plots were rented out
which had relatively more expensive plots due to the high fully to non-allottees while others had been sold out to higher
level of services provided served 36 percent from the poorest income individuals. Second, the high standards adopted for
30 percent of the urban income distribution.81 These findings, some sites and services projects made it difficult for low-
together with a relatively good occupancy and building rates, income households to consolidate housing while at the same
indicate that the projects were accessible and affordable to time making them more attractive to groups with higher
the target populations. incomes than target groups. Third, the conditions attached
to sites and services such the need to build faster (in Harare
In some projects however, project beneficiaries had allottees were expected to build a four-room core house in
significant representation in the middle- and higher- 18 months while in Lusaka beneficiaries were expected to
income groups. This resulted from direct allocation of plots/ build out within 6 months) proved difficult to meet for some
houses to higher income groups (as part of project design) beneficiaries necessitating transfers.83 Fourth, cost recovery
or poor project beneficiaries transferring their allocations made it difficult for low-income households to sustain their
to higher income groups. Despite the earlier discussed four plots and eventually offloaded benefits to better off families.
projects (in El Salvador, the Philippines, Zambia and Senegal) In many projects, beneficiaries were expected to put a down
reaching their target populations, the study established payment before plot occupation and pay off the rest within
that in some instances, beneficiaries tended ‘to be more a certain time period, sometimes with no finance provided.
representative of median income groups than of the poorest Even where financing was available like in the Lusaka and
households’. In El Salvador for instance, about 85 percent of
beneficiaries were drawn from the lower 65 percent of urban
82
Keare, D. and S. Parris (1982). Evaluation of Shelter Programs for the
Urban Poor Principal Findings. World Bank Staff Working Papers.
80
Keare, D. and S. Parris (1982). Evaluation of Shelter Programs for the Washington, D.C., U.S.A., World Bank.
Urban Poor Principal Findings. World Bank Staff Working Papers .
83
Rakodi, C. and P. Withers (1995). “Sites and Services: Home Ownership
Washington, D.C., U.S.A., World Bank. for the Poor? Issues for Evaluation and Zimbabwean Experience.”
81
Bamberger, M., Sanyal, B., & Valverde, N. (1981). The First Lusaka Habitat International: Bamberger, M., Sanyal, B., & Valverde, N. (1981).
Upgrading and Sites and Services Project: Summary of the Main The First Lusaka Upgrading and Sites and Services Project: Summary of
Findings of a Five-Year Evaluation. the Main Findings of a Five-Year Evaluation.
Reconsidering Sites and Services: A Global Review | 19
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
Harare projects, repayments had to be done after 5 and 6 recorded incomes as well as other informal sources of finance.
months respectively after obtaining loans. Lastly, the high The determination of beneficiaries’ ability to afford needs to
value and potential income from the sale of plots made it be contextualized and expanded to include non-traditional
appealing for low-income households to dispose plots and income sources. In developing economies, personal savings
gain profits. The transfers were in most cases to higher income play a significant role in the informal economy – hence,
groups. In Lusaka for instance, the records of sales showed besides conventional affordability analysis future operations
that the income levels of purchasing families was generally should consider possible accumulated wealth as well as
higher than that of sellers, and that net profits from such sales current income to better determine low-income households’
were about 100 to 120 percent. ability to self-finance.
Affordability outcomes are mixed but overall most Beneficiary preferences were assumed, leading to
projects were deemed affordable and accessible to target unintended outcomes. In the 1st generation sites and
groups. In Lusaka, housing not only reached the target poor services and slum upgrading there was usually an assumption
population, but was also produced at lower cost than public of the preferences of those targeted. For instance, in the
housing, meaning houses within sites and services were more Thailand sites and services, the project objective was to
affordable than contractor build public housing. For instance, provide the majority of new housing units to lower-income
a standard house at the sites and services houses took two families, defined as those below the 50th percentile of the
months to be built at a cost of 600 Kwacha as compared to income distribution. However, more middle-income residents
6000 Kwacha, the cost of the cheapest contractor built public benefitted at the Chiang Mai and Songkhla developments.
housing. The same was also experienced in El Salvador where This was due to various factors including the preference of
the ‘better quality sites and services project housing cost less lower-income families for immediately habitable housing,
than half as much as the cheapest conventional house’ (pg. which was not provided on these sites. Other developments
305).84 Affordability was more guaranteed in projects which implemented later in the project were redesigned to provide
had subsidies or where loans were available to beneficiaries. small, complete houses, which were more attractive to
lower-income families. The additional cost of the completed
Difficulties in obtaining actual household income and core units compared to incomplete core units plus building
true ability to pay was a key limitation in the targeting material loans did not affect affordability objectives.
process. A significant number of low-income households
were involved in the informal sector with fluctuating incomes, The diversity of beneficiary needs must be understood,
which made it almost impossible to ascertain with accuracy and projects tailored to accommodate those needs
exact household incomes. Second, some households also had as appropriate. This may include rental options against
multiple income sources which were difficult to demonstrate ownership or vice versa, guaranteed good access to jobs,
e.g. rural properties and investments which they may be need for financing option etc. The inclination of project
willing to dispose to acquire urban housing. Third, the use designers towards own-built housing require re-examination
of a proportion of households’ incomes to determine ability as research on sites and services found out that ‘residents
to afford housing had the potential to lock out households prefer complete units in terms of paying down payment’. This
with incomes below the threshold yet who were able and is to prevent financial burden in a situation where residents
willing to pay while giving an opportunity to households are paying rent in separate location as they continue to
who, despite having incomes above the threshold, may not in incrementally build their own homes. In some contexts, the
practice afford the payments.85 Moving forward it is important poor may have rural homes with their immediate urban
that projects consider the ability to pay based on formal needs not owning a home but working to cater for other
social needs like children education and social development.
84
Mayo, S. K. and D. J. Gross (1987). “Sites and services—and subsidies: In such situations, rental options make greater sense. Other
The economics of low-cost housing in developing countries.” The
World Bank Economic Review 1(2): 301-335. options like provision of complete affordable housing units
85
“Sites and Services: Home Ownership for the Poor? Issues for Evaluation for sale or rental to the poor, which can be provided solely
and Zimbabwean Experience.” Habitat International:
20 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
by the government or in conjunction with the private sector for two things: that the prices of plot and services would
or non-governmental actors. Additionally, there is need to be adequate enough to recover costs with minimal or no
balance between ownership and sustainability, security of subsidies and that the housing, infrastructure and services
benefits to the poor and the ability to pay or affordability by provided would be affordable to target groups.86 The
the different groups and in different contexts. pricing of plots had to be set in accordance with the target
groups’ paying capacity. In most projects, this ranged from
2.3.2 Cost Recovery Model and Subsidies 20-25 % of the total monthly household income.87 While
some projects went for full cost recovery, others had
KEY MESSAGES subsidies provided for land and construction materials.
Subsidies were crucial for the success of sites and Subsidies especially for the lowest income groups could
services projects for the poor. Despite the burden also be obtained from the sale of plots to high-income
of subsidies to governments and an impediment to households and commercial sites.
replicability, many projects were not able to price
the land and other costs to allow the beneficiaries to Cost recovery however remained a challenge for many
maintain their participation without subsidies. projects. While some projects had a good level of cost recovery,
Collecting payments was fraught with difficulties; most projects did not do well.88 The reasons for difficulties in
where successful, community organizations were cost recovery varied significantly from project to project but
brought in for their assistance in the collection and generally include: the high costs of house construction and
payment was made to a private entity to increase land payments; high and recurring service fees (water, energy,
compliance. transport) that residents had to bear immediately after
relocation in addition to house construction costs, sometimes
The huge subsidies used by governments to promote
facing loss of income occasioned by the move to the new
affordability in some cases proved an impediment
site; lack or poor recovery mechanisms; lack of political will
to project replicability meaning a balance needs to
to support collection or enforce collection as was the case
be reached between project subsidies and long-term
in areas like Zambia, Kenya, Nigeria, Bombay, Morocco and
project sustainability and future expansion.
Lahore; delay in service provision and lack of sanctions for
The mixed-income approach involving sale of some
defaults or non-repayments; lack of knowledge on part of
plots to high-income households /commercial sites
the participants of their responsibilities, and how this affected
to subsidize the poorer households had better cost
project benefits rather than lack of affordability as was seen in
recovery.
Zambia; very high inflation rates like in the case of Brazil that
Projects need to build a model to determine the resulted in severe decrease in purchasing power causing rent
nexus of affordability and cost recovery in today’s strikes, mortgage refinancing schemes and less than 80% of
context (including recurring cost of services) as it is the loans to be fully recovered; the lack of land titling as was
very likely that costs of land and servicing has increased seen in Morocco where the lack of legal title provided no firm
disproportionately compared to the income of the legal base for foreclosures and repossessions.89
poor. As in the 1st generation of projects, subsidies
would still be needed to fill the affordability gap.
86
Gross, S. K. M. a. D. J. (1987). “Sites and Services—and Subsidies: The
Economics of Low-Cost Housing in Developing Countries.” The World
Bank Economic Review Vol.1 No.2, 301-335.
Most sites and services were designed on the basis of full
87
UN HABITAT (1991). “The Incremental Developmenr Scheme_ A case
or partial cost recovery. Beneficiaries were expected to self- study of Khuda-Ki-Basti in Hyderrabad Pakistan “.
build housing in addition to paying for land and servicing costs
88
Keare, Douglas. H, Paris. S, (1982); World Bank, Brazil. PPAR (1988); UN
HABITAT (1991). “The Incremental Development Scheme_ A case study
and recurring costs of power and water bills. The objective for of Khuda-Ki-Basti in Hyderrabad Pakistan “; Rakodi, C. and P. Withers
cost recovery was to generate revenue that could be used to (1995). “Sites and Services: Home Ownership for the Poor? Issues for
Evaluation and Zimbabwean Experience.” Habitat International.
replicate projects on a large scale. This model meant aimed
89
World Bank, Morocco, PPAR (1991).
Reconsidering Sites and Services: A Global Review | 21
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
In addition, with public institutions as the implementers, project thus showed how it is easier to design projects in a
beneficiaries supposed that public services are not to local public finance context, ‘’where the ability to operate and
be paid for. For example, in Kenya a number of new plot maintain infrastructure and services can be directly related
owners did not feel obligation to pay to the government.90 to the resulting benefits, as well as to collections or cost
In Bauchi, Nigeria despite the number of measures taken recovery (pg.87).’’ 95 The project also proved that community
to ensure cost recovery, the implementing agency seemed participation is an important aspect that can help achieve
more bound by a duty to deliver housing free to the few maintenance and cost recovery objectives.
needy it could afford to assist, while also overlooking non-
payment by even higher-income renters who were victims The reliance on subsidies to make housing affordable
of Nigeria’s economic crisis. In the case of Nigeria, many was however deemed unsustainable and as hindering
measures like screening participants and direct salary replication due to the large amounts of subsidies required.
deduction were applied but the institution was weak in its In Egypt for instance, land for sites and services was priced
ability to effectively supervise and collect payments.91 The at LE 2.25 per square meter as compared to the prevailing
inability to recover costs coupled with financial difficulties market prices which was LE10-LE15 and charged an
and the demand for high subsidies to ensure projects reached interest of 5 percent while the prevailing rate was about 11
target groups in turn discouraged many governments from percent, meaning that such land subsidies played a huge
embarking on large-scale programs in squatter-settlement role in enabling affordability, which would have been next
regularization, slum upgrading, sites-and services.92 to impossible. Despite such subsidies being implicit off-
budget transfers, critics claimed they curtailed the long-term
Nevertheless, several projects reported effective cost affordability of projects96 and on the ability of governments to
recovery, providing lessons for the future. This was the replicate projects or recover costs.
case for the Madras project93 and the El Salvador projects.
A key defining factor in the El Salvador project was that Moving forward, it is critical to assess potential solutions
the implementing was private rather than public, which is to the array of difficulties that hampered cost recovery. It
assumed to have accounted for the high rates of success. is very likely that costs of land and servicing has increased
Further, the project’s not for profit approach, which required disproportionately more than the income of the poor has
it to achieve cost recovery to remain operational, as well as increased, requiring a form of assistance to afford land and
its success in instilling social responsibility as an inherent related costs. These could be addressed in several ways.
part of project participation is also assumed to have been First, consider a mixed-income approach where plots sale to
a key success factor.94 The FSDVM, which was responsible high-income households or commercial plots subsidize low-
for project implementation and cost recovery in El Salvador income households. Previous sites and services projects that
also effectively gave understanding and awareness to the had mixed income tended to have higher degrees of success.
community and used incentives and penalties to ensure cost In Nairobi for instance, five percent (300 plots) of the total
recovery. This included utilizing community organizations for plots was sold to high-income households at market rates,
their assistance in the collection of payments, screening for which lowered the cost of the remaining plots by 20 percent.97
participants with the ability to pay project fees, and utilizing Second, assessing affordability and cost recovery for specific
lawyers to visit families that were three months behind city circumstances (including recurring cost of services) will
payment. The organization’s small scale also proved an added be crucial. Third, where cost recovery is sought, payments
advantage to its supervision of the project. The El Salvador can be to a private sector entity to increase compliance as
90
World Bank, Kenya, PPAR (1991).
95
Keare, Douglas. H, Paris. S, (1982).
91
World Bank, Nigeria, PPAR (1990).
96
Mayo, S. K. and D. J. Gross (1987). “Sites and services—and subsidies:
92
UN HABITAT (1991). “The Incremental Developmenr Scheme_ A case The economics of low-cost housing in developing countries.” The
study of Khuda-Ki-Basti in Hyderrabad Pakistan “. World Bank Economic Review 1(2): 301-335.
93
World Bank, Madras. PPAR (1986).
97
UN HABITAT (1987). “Case study of sites and services schemes in Kenya:
94
Keare, Douglas. H, Paris. S, (1982). Lessons from Dandora and Thika.”
22 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
this seemed to effectively work in El Salvador. Lastly, the use 2.3.3 Financing for Housing Consolidation
of technology, e.g. block-chain, can be employed to more
reliably manage loan administration and cost recovery. KEY MESSAGES
Provision of construction loans to allottees was a
Subsidies proved to be huge expenses for government, critical factor for house consolidation. Provision of
indicating the need to identify alternatives. Despite high construction loans within the project turned out to
subsidies being a key impediment to replicability, the urban be the key element in enabling housing consolidation
poor may not be able to participate in any meaningful and vice versa. Where no loan was available, house
low-income housing projects without subsidies. Future consolidation was slower.
sites and services will need to consider alternatives to Current financial innovations (e.g. housing
government subsidies such as the incorporation of mixed micro-finance, mortgages by commercial banks
income groups, NGOs, private developers and financiers to tailored to low-income households, community
reduce plot and house costs. Largely, sites that had mixed cooperative loans and organized community
income groups tended to be more successful as they savings, government programs financing low-
were able to lower projects costs with both the higher income housing) provide opportunities for future
and low-income groups willing to live side by side.98 This projects to identify and incorporate innovations
propensity toward mixed income living should be better in housing consolidation financing.
incorporated into project design so that full advantage
can be taken of the potential for cost recovery and cross Some sites and services projects provided allottees with a
subsidies that it offers. The private sector and NGOs construction loan to buy building materials, which was to
could also play a critical role of subsidising projects for be paid back over time. This was the case in Tanzania, Zambia
these projects. Partnerships with the private sector in the and, Kenya where all allottees were eligible for a construction
areas of infrastructure and service provision could lower loan backed by the government. In Tanzania, the Tanzania
government costs, while NGOs can team up with residents Housing Bank established in 1973 provided housing loans,
to provide affordable financing and building technology but the cumbersome procedures and strict eligibility criteria
options. NGOs such as SDI have been instrumental in barred many of the poor from accessing loans.100 Some
helping communities save towards homeownership and countries used Employers Saving Schemes as an alternative
providing pro-bono technical services that help reduce to loans. In Zambia for example, loan inadequacy led to an
project costs for the poor. agreement ‘where employer/employee contributions to the
Zambia National Provident Fund (up to a ceiling) could be
Where the subsidies are targeted -in offsetting land or withdrawn for investment in housing. This mechanism gave
construction costs- is also critical. Previous reviews of sites formal sector employees access to their savings rather than
and services recommend providing subsidies for serviced to credit and was taken up by at least 40% of allottees in one
land rather than for house construction as this grants resettlement area’.101
beneficiaries a ‘greater ownership and stake in their homes’.
Investing in neighbourhood and community facilities is also In other instances, there was no financing available to
deemed important although often overlooked.99 allottees. The Bank financed projects of the 1970s were
meant to be unsubsidized but affordable to the poorer half
of the population (i.e. the 20th percentile for sites and services,
and lower for upgrading). The Bank’s objective was to achieve
100
Rakodi, C. (1991). “Developing institutional capacity to meet the
housing needs of the urban poor - Experience in Kenya, Tanzania and
98
Project Performance Audit Report, Federal Republic Of Nigeria (Bauchi) Zambia.”
Urban Development Project (Loan 1767-Uni) June 8, 1990.
101
Rakodi, C. (1991). “Developing institutional capacity to meet the housing
99
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D. needs of the urban poor - Experience in Kenya, Tanzania and Zambia.”
Reconsidering Sites and Services: A Global Review | 23
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
affordability by lowering housing standards and infrastructure 100 Kwacha loan. The adequacy of that figure was a design
costs. Capital costs of both these would however be assumption rendered inappropriate by progressive inflation.
recovered over a long time period, at near market interest As the amount of these loans could not be increased without
rates. ‘Achievement of this aim depended on the cost of substantially limiting the number of beneficiaries, it was
provision in relation to the incomes of intended beneficiaries, finally decided to restrict loans to those in overspill areas.
policy decisions with respect to subsidies and cost recovery, The slowdown in the rate of house consolidation after the
the availability of credit for house construction, and the discontinuance of the loans proves the necessity of adequate
establishment of institutional mechanisms and procedures funding as a stimulus to the construction process.
for cost recovery and housing finance’.102 These variables did
not, however, come together in many project contexts. Fortunately, the evolution of Innovative housing finance
models expands shelter-financing opportunities available
The provision of housing loans turned out to be the for the poor that could be explored for future low-
key element in enabling housing consolidation. A key income housing. These range from housing micro-finance;
impediment to the successful implementation of the sites Transferable Development Rights (TDR); mortgages by
and services was the lack of finance on both the part of commercial banks tailored to low-income households;
governments and beneficiaries. The provision of loans to community cooperative loans and organized community
governments by development agencies such as the World savings; government programs financing low-income
Bank and subsequent loans to beneficiaries were key to housing.104 Jones and Stead105 demonstrate the success
ensuring house consolidation. This was confirmed in India achieved by various agencies in expanding housing credit
where project analysis showed the availability of house to the poor through the use of these emerging innovative
building finance from commercial banks was the key factor housing finance models in some select African and Asian
in ensuring project success. Where no loan was available, countries. They document how organizations such as LinkBuild
consolidation was slower, underscoring the importance of in the Philippines and Lumanti in Nepal have achieved relative
providing for construction loans for allottees in future projects. success in housing the poor through community cooperative
loans. The Ansaar Management Company (AMC) in Pakistani
House consolidation loans from commercial banks and and Casa Real in Mozambique have also been instrumental
micro-finance institutions was a potential if not viable in convincing commercial Banks to provide housing finance
financing alternative. In the Lusaka Urban development to low-income households. Through the use of Transferable
project for instance, the loan program tied to it proved to Development Rights (TDR), SPARC Samudaya Nirman Sahayak
be a key part of the Project.103 Most families demonstrably (SSNS) in India has generated over US$ 15.98 million from
had no access to alternative sources of finance, and without private developers towards low-income housing. These
loans would probably not have been able to complete or financing models provide additional finance sources that
consolidate their houses. Loans were, however, terminated future sites and services can build on to enhance housing
when it was found that not much could be done with a finance under such schemes.
104
Ferguson, B. and P. Smets (2010). “Finance for incremental housing;
current status and prospects for expansion.” Habitat International 34(3):
288-298.; Patel, S., et al. (2015). “We beat the path by walking” How the
women of Mahila Milan in India learned to plan, design, finance and
build housing.” Environment & Urbanization 28(1): 223–240.; Weru, J., et
102
Rakodi, C. (1991). “Developing institutional capacity to meet the al. (2018). “The Akiba Mashinani Trust, Kenya: a local fund’s role in urban
housing needs of the urban poor - Experience in Kenya, Tanzania and development.” Environment & Urbanization 30(1): 53–66.
Zambia.”
105
Jones, A. and L. Stead (2020). “Can people on low incomes access
103
Bamberger, M., Sanyal, B., & Valverde, N. (1981). The First Lusaka affordable housing loans in urban Africa and Asia?Examples of
Upgrading and Sites and Services Project: Summary of the Main innovative housing finance models from Reall’s global network.”
Findings of a Five-Year Evaluation. Environment & Urbanization 32(1): 155–174.
24 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
2.3.4 Provision for Rental and Other Income Activities and services in Dandora, Nairobi were designed with rental
income in mind to supplement allottees incomes.107 Even in
KEY MESSAGES projects where this was prohibited, beneficiaries constructed
Opportunities for rental income and other income rental housing to supplement incomes, which turned out
generating activities (e.g. markets, artisans spaces, to be an important factor that made plots affordable to
home-based work, etc.) facilitated extra income participant families.
generation for beneficiaries, which helped subsidize
project costs and guarantee affordability. The rental option simultaneously provided low-income
The rental units also provided low-income renters renters with access to a wide variety of housing and
beyond the project with access to a wide variety of community services options. Rental housing in sites and
housing and community services options. services in contexts like Zambia (Lusaka) and Kenya (Nairobi
Rental options also helped densify the projects sites and Thika) formed a large share of the housing stock and a
over time and as demand increased. significant source of income for the beneficiaries. Indeed, the
sites and service schemes in Kenya in both Dandora and Thika
Other provisions for income-generating, e.g. markets
are seen to have reinforced the rental market in those areas.
and workshops, had mixed outcomes.
Studies done in Dandora in 1980 and 1983, found that two
thirds of the population were renters and that 96 percent of
Rental incomes from shelter projects proved critical house owners sublet rooms on their plot respectively.108 The
sources of incomes that not only subsidized project costs sites and services that prohibited income generating activities
but also provided extra income for households. Earlier sites in residential plots curtailed the overall growth of the rental
and services ignored or even discouraged the investment housing stock available to the poor. With this evidence, future
aspect of housing programs for the poor through controls on low-income housing should ensure explicit provisions for
the leasing of rooms and limitations on sales. In fact, the early rental units and other income generating activities (markets,
World Bank funded sites and services did not include income- artisans, home-based work etc.).
generating activities, thus limited the ability of residents
to earn extra income that could boost plot repayment or Provisions for markets and artisans were limited with
supplement building costs. Latter ones however did by different outcomes where they were provided. The
allowing construction of extra units for rental to supplement Madras project experienced significant success, while the
household incomes and providing land for markets and spaces allocated for businesses and artisans in Kenya were
workshops that would be sold at higher costs to offset project converted into housing. Project evaluations in India have
costs. For example, the first sites and services in Zimbabwe also proved that the provision of rental housing has the
were designed with provision for rental income so as to make potential to promote density.
them affordable to the lowest income groups.106 Similarly, sites
107
UN HABITAT (1987). “Case study of sites and services schemes in Kenya:
106
Rakodi, C. (1991). “Developing institutional capacity to meet the Lessons from Dandora and Thika.”
housing needs of the urban poor - Experience in Kenya, Tanzania and
108
UN HABITAT (1987). “Case study of sites and services schemes in Kenya:
Zambia.” Lessons from Dandora and Thika.”
Reconsidering Sites and Services: A Global Review | 25
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
2.4 Implementation Considerations appraisal leading to unanticipated lengthy delays. Similarly,
the targets of the LISP in India were achieved over a period
2.4.1 Project Design, Project Financing and Private
of nine instead of five years, as expected at project inception.
Sector Involvement
In Kenya, a project performance audit found that, at the time
KEY MESSAGES of evaluation, the project threatened to leave the cities worse
Earlier projects were designed with overly ambitious off as the result of new infrastructure maintenance problems,
scopes and timelines, threatening the completion of additional debt burdens and the expense of sustaining the
the project implementation. unproductive HDDs, new schools and clinics, which were
Financing for the projects was predominantly from never factored during project design.
IFIs, with little consideration of the private sector as
potential financiers. Under the first sites and services, financing was mainly
limited to international finance Institutions (IFIs). Many
Current innovations in urban finance (e.g. micro-
governments’ borrowing for sites and services was limited to
financing and user financing) provide alternative
IFIs for all aspects of the intervention with the state/central
financing that can complement government and IFIs
government having a strong control over development and
financing. Private sector and non-profits can also
economy. Few other sources of financing existed with private
be included as key financing and implementing
sector’s participation limited to building contractors and rarely
partners, as they currently play a critical role in the
as key partners in resource mobilization. The overreliance on
provision of low-income housing and services in many
IFIs therefore meant that once the majority of them pulled
developing countries.
out, the projects almost instantly grounded to a halt. Many
implementing agencies including some non-governmental
Many projects designed by the IFIs had ambitious scopes agencies supporting governments were thus unable to carry
and unrealistic projections particularly in relation to future out their functions due to the constrained resources.
expenditures, repayments and project timelines. In the
case of Kenya, the project went for extra eight years due to the Currently available innovative urban housing finance
challenges of mid-way project re-design, poor initial unit cost models provide relief to government from borrowing for all
estimates that led budget overrun, a constant rise in building aspects of the intervention. Models such as housing micro-
standards, inflation, questionable procurement procedures finance, Transferable Development Rights (TDR), mortgages
and a series of fights with contractors. These issues and by commercial banks tailored to low-income households,
especially the increasing costs put housing solutions out of community cooperative loans and organized community
reach of much of the target population. Many initial allotees savings, government programs financing low-income
had to either sell plots to better of families or to landlords who housing can be incorporated in urban and user financing to
never passed on the subsidies to their tenants. In Morocco, complement government and IFI financing.
the preparation and successful implementation of the Second
Sites and Services Project in Rabat was hindered by ambitions The private sector is also a crucial provider of low-income
too high for the scope of the project. In Lahore Pakistani, the housing in most cities. In Kenya for instance, over 90 percent
time initially allocated for implementation proved grossly of the urban poor rent housing from the private sector
underestimated, bearing in mind the social difficulties of presenting the potential to bring in private sector as key
project implementation, the local agencies’ inexperience with partners in any housing intervention targeting the poor. The
World Bank projects, as this was the first Bank urban lending Kenya government has already entered into several PPPs
operation in Pakistan. Further, the Lahore project never fully in the housing sector that include government provision
appreciated the difficult problems associated with land of serviced land while the private sector provides financial
acquisition for the sites and services component, and, to a capital and the necessary technical skills.
lesser extent, for the solid waste management component at
26 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
Not-for-profit entities can also play a role as implementing 2.4.2 Implementing Institutions
partners. In El Salvador, FUNDASAL the non-profit agency
mandated to implement several sites and services amply KEY MESSAGES
demonstrated that properly managed private organizations Project implementing units need to be within
could play a very important role in providing shelter. It existing institutions, as experience has proved that
showed resourcefulness and creativity in various situations engaging with already established institutions worked
and its general performance was excellent. Even during better in implementing previous sites and services.
very difficult periods, FUNDASAL managed to continue There is need to develop a typology of arrangements
working. When contractors were unavailable, it assumed depending on the mandates of the national versus
the role of coordinator and hired workers. Similarly, when local governments in a particular country where
complementary facilities (e.g., electricity and water) were applicable (e.g. decentralization and democracy may
not delivered on time, it lobbied extensively to have these have increased role of subnational institutions in some
provided by the appropriate authorities, and when these countries).
efforts were unsuccessful, it provided its own services
Any future project should make use of the existing
through donations and assistance from other agencies.
structures by creating project-implementing units (PIU)
Also noteworthy is the way in which the agency managed
within the existing institutions. Most countries now
to acquire land for the project in spite of many difficulties.
have housing agencies, limiting the need to create new
The results in El Salvador, have generally, proved that, the
agencies to implement low-cost housing.
idea of using a nongovernment organization (NGO) as the
Beyond their existence, implementing agencies also
lead institution is a sound one. This is especially so in light of
needed to be able to coordinate across agencies,
current discussions of the role of private firms and NGOs in
have sufficient and consistent technical staff, build
shelter financing and provision of solutions.
and maintain trust and remain flexible and open to
innovation and reflection.
In seeking for partners, it is important to ensure that
those selected have good financial standing. FUNDASAL
was heavily dependent upon charitable donations for most The implementing agencies varied across different projects
of its operations. The Government also provided regular and contexts but mostly tended to be existing government
grants earmarked for its administrative costs, and de facto departments. In some contexts, however, the establishment
interest-free Government loans, which arose because of of new agencies that could operate outside the lengthy
FUNDASAL’s poor liquidity position and its inability to make bureaucratic government processes was necessary. This
timely payments. The continued dependency of the agency was the case in Kenya through the establishment of the
on donations for substantial part of its operation meant its Housing Development Department (HDD) to carry out
performance was subject to greater fluctuations than if it had project execution in Dandora, Nairobi.109 The same was also
its own generated pool of resources with which to operate. reflected in Egypt in the Ismailia Sites and services that led to
Such fluctuations eventually led to minimum housing the establishment of a Project Agency.110 Both the agencies
production over time, with income from these investments in Nairobi and Egypt consisted of public professionals
being unsustainable over the long run. drawn from across different departments and the municipal
governments. In El Salvador, the government incorporated
a private non-profit agency FSVM (Salvadorean Foundation
for Development and Low-Cost Housing) as the executing
109
UN HABITAT (1987). “Case study of sites and services schemes in Kenya:
Lessons from Dandora and Thika.”
110
Blunt, A. (1982). “Ismailia Sites-and-Services and Upgrading Projects - A
Preliminary Evaluation.” Habitat International 6(5-6): 587-597.
Reconsidering Sites and Services: A Global Review | 27
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
agency in the initial projects translating to huge success.111 meeting loan covenants in relation to municipal taxes. In
All these new agencies were responsible for various activities Lahore Pakistani, project completion delayed for about
some of which include: planning, survey and allocation 4.5 years due the relatively inexperienced implementing
of plots, collection of payments, negotiations with other agencies and the project being the first of its kind. Both the
government agencies responsible for service provision such Lahore Development Authority (LDA) and the Metropolitan
as power, water and sewerage among others. Corporation of Lahore (MCL) had weak institutional capacity
and were inexperienced in handling IDA programs. This led
While the establishment of new agencies permitted to serious land acquisition challenges at the Gujjapura site
greater flexibility of management and avoided constraints that contributed to procurement difficulties and subsequent
in administration in some projects,112 it was the contrary in project implementation delays.113
others. The creation of an autonomous executing agency was
one of the ways in which the sites and services challenged Various factors combined to determine project
existing and conventional housing policy concepts. This performance but existing structures generally proved
was effective in some contexts and detrimental in others. better placed in implementing projects. The Madras
The use of a private non-profit agency with an inherent Urban Development Project (MUDPI) stands out as one of
social responsibility proved to be highly successful in project the most successful examples of institutional performance
implementation and performance in El Salvador where the by demonstrating a successful model of metropolitan
Salvadorean Foundation for Development and Low-Cost management through the effective negotiation of sectoral
Housing (FSVM) was employed to execute a large-scale sites and local interests through the Madras Metropolitan
and services program. The FSVM was a small, well-managed Development Authority (MMDA). The MUDP I Project
organization with highly trained and technical staff. From implementation consisted of over ten agencies with the
the Bank pilot projects, it is evaluated to have the highest Madras Metropolitan Development Authority (MMDA)
repayment rate especially due to its mix of incentives and acting as the project’s overall coordinating agency. Prior
penalties. Community participation where the community to this project, the MMDA primarily focussed on physical
participants are made aware of their responsibilities and planning and land use control and had successfully managed
engaged in mutual help for the project themselves was several projects, giving the Government of Tamil Nadu (GTN)
instrumental to its success. confidence in its ability to execute the project. The agency
experience also justified the ambitious scope of the project
Sometimes, new executing units did not perform as and reduced the risk that its scale and complexity might
well. Assessments of the new units in contexts like Kenya, overwhelm the capacity of the GTN institutions to successfully
Zambia, Nigeria, Brazil and Pakistan indicated that they implement it. The other implementing agencies chosen
instead created implementation bottlenecks leading to including the GTN departments and specialized agencies
inefficiencies. In all these cases (Zambia, Kenya, Nigeria and had a reputation for sound administration. The Tamil Nadu
Brazil), the political and economic contexts under which Housing Board (TNHB) for instance had thirty years’ experience
the institutions were formed had huge influence on project in awarding credits for building materials and had previously
performance. In Zambia, for example, there were difficult executed similar sites and services projects but for higher
relations between the Lusaka City Council and the United income and as such the nature of the project was technically
National Independence. In Kenya, the project and City of easier for it to implement. The approach of building upon and
Nairobi lacked adequate political support compromising perfecting the more effective parts of established programs
the functionality of the implementing agency and the that characterized MUDPI not only reduced project risks
inexperienced, understaffed and underfinanced cities had but also helped to promote the institutional development
serious problems with project management and difficulties of GTN agencies that were already in place. Technical
assistance provided under MUDPI, especially to MMDA and
111
Aliani, A. H. and Y. K. Sheng (1990). “The incremental development
scheme in Hyderabad An innovative approach to low income housing.
112
Blunt, A. (1982). “Ismailia Sites-and-Services and Upgrading Projects - A
113
Project Completion Report, Pakistan, Urban Development Project
Preliminary Evaluation.” Habitat International 6(5-6): 587-597. (Credit Number 1348-Pak), August 2, 1994.
28 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
the Madras Corporation (MC), helped reinforce the on-the- procurement, accounting and acquired debt costs. Better
job experience afforded by the project. In all cases, the efforts ex-ante analysis of the financial and political situation of
were concentrated not upon the creation of new agencies, projects implementation units can have the potential to
but upon improving the performance of the existing ones. establish capacity needs or flag out any issues that may
This not only led to immediate project success but enhanced hinder successful project implementation. The continuity of
future project maintenance and sustainability. key personnel is also critical to ensure commitment to project
objectives. The use of established implementation units that
It is important to however realize that prior existence of are already developed and enjoy local support is also very
agencies cannot be the only determining factor of selecting important for project success.
project implementation units. While in Brazil older existing
institutions were chosen as the borrower agency and given the Capacity building for implementing agencies in various
responsibility of executing, the institutions’ attitudes remained aspects of the project including cost recovery is also
an important factor in deciding the project’s success. The critical. Examples from Kenya and Thailand demonstrate
initial reservations and reluctance of the National Housing that, problems related to cost recovery, property taxes
Bank remained, and its limited commitment hampered and service payments are not solved simply by changing
project implementation along with the reorganization and the rates. Improved accounting, collections and municipal
changes made by a new government, which further threw administration in connection with Bank urban projects are
the chosen implementing agencies into disorganization. likely to require additional staffing and training and, thus, to
This underscores that, in choosing to begin an operation imply costs of their own. Furthermore, increased municipal
with a reluctant borrower in an uncertain political climate charges generally require a change of thinking, implying
and fluctuating sector, there are greater chances of failure careful and continuous dialogue among relevant stakeholders.
of the project.
The majority of past sites and services were plagued
The ability for interagency coordination remained crucial by mistrust of and among implementing agencies. For
for project success. Shelter is more than housing and the instance, in Kenya, many covenants were flouted during
projects required multiple inputs from various agencies. the course of project implementation, making it difficult
Sites and services have demonstrated the need for close for the involved parties to harmoniously work together.
cooperation both within implementing agencies and the Despite the government’s promises to carry out reforms, the
various local governmental agencies and utilities that provide national housing reforms were never applied. This and the
essential services for housing developments and slum lack of policy impact disappointed the Bank, which stopped
projects. Problems of inter-agency coordination contributed supporting the idea midway during project execution. The
to implementation problems as was experienced in projects local and national technicians who hoped the project would
in the Philippines, Zambia and Senegal and Bombay. Firm bring about sector reforms then felt the Bank deserted them
agreement between the implementing agencies and the at a critical moment, disrupting the institutional relations.
other agencies needs to be achieved sooner in the planning Elsewhere, the institutions selected to implement the projects
process to reduce the possibility of later delays caused by lack both in Nigeria and Brazil lacked public trust.
of utility connections or essential municipal services.
Flexibility and tapping into current innovations during all
Fully staffed and functional implementation units, with stages of project design and implementation. The ability
a track record of success (for existing institutions). The to change course when necessary coupled with adoption
experiences from Pakistani, Thailand, India, Kenya and Nigeria, of new technologies will also be crucial for the effectiveness
demonstrate the importance of analyzing implementing of future low-income housing interventions. The use of
capacities before undertaking major new investments new building technologies like 3D printing and low carbon
and, especially, the need to identify project teams’ capacity, development will be crucial considerations. Governments
additional administration, maintenance, collections, and communities can tap into NGOs, the private sectors
Reconsidering Sites and Services: A Global Review | 29
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
and the international development community for Technical mutual help model where it was assumed that community
Assistance in incorporating new technologies where their members would help each other build their houses and
capacities are limited. It is also important to critically think community infrastructure. Different projects therefore had
through the potential issues that may arise and have different levels of community engagement with varied effects
contingent plans beforehand. For instance, sites and services on the ability of the project to achieve its objectives.
being a neighborhood-based approach can be politically
challenging in picking settlements or winners and losers. So Where strong community engagement existed, it proved
anticipating such and planning accordingly would be critical to drastically increase the efficiency of the project and
to avoid project delays. especially allow greater success in maintenance and
recovery objectives. An exemplary case study to depict
Further, it is also important to recognize that sites and the positive impact of constant community engagement in
services represents a broad approach that cannot be different parts of the project is the pilot sites and services
applied uniformly in all contexts or that may not function projects in El Salvador led by the NGO Salvadorean Foundation
effectively across different contexts. The spectrum of sites for Development and Low-Cost Housing (FSVM). Effective
and services could range from an empty plot of land with community participation was itself a goal of the program,
minimum services to the provision of a core house (e.g. which also involved social responsibility as an inherent
kitchen and toilet) with services. The construction can be programmatic feature. The project also included within its
by benefiting individuals or in involve the participation terms of physical objectives the generation of community
of multiple actors such as private developers, NGOs etc. centers and facilities to further strengthen the bond between
Consequently, countries and cities need to pick the model residents and increase the sense of community. Due to
that works best for each context taking into consideration the sustained engagement and awareness created in the
socio-political conditions, land and housing markets. community of their roles and responsibilities within the
project as well as communicating the understanding that
2.4.3 Community Engagement repayments are necessary for the project’s survival, the project
along with a mix of other strategies had a very high rate of
KEY MESSAGES repayment. Elsewhere in the Ghaziabad project in India,
Community engagement is key to project success. good community participation was crucial in ensuring the
Projects with strong community engagement in past selection of the right beneficiaries.114 In Nairobi, community
projects performed better. Community engagement participation enhanced the targeting of low-income
also decreased the likelihood of issues such as beneficiaries in the first phase of Dandora, the initial urban
clientelism and co-option. project in Kenya. In the relatively successful sites and services
Inclusion of NGOs in the implementation projects such as El Salvador and Bombay, India, the benefiting
arrangements is likely to lead to better outcomes communities were largely involved in the project. Community
as project can benefit from their vast know-how of participation and ownership ensured sustainability through
delivering low-income housing and; friendly perception continuous maintenance.
and interactions with local communities. Currently
there is a multitude of NGOs with experiences in land Experiences have also showed that in projects where
and low-income housing that can be incorporated in community participation is limited or lacking, patronage,
project design and implementation. clientelism and co-option issues are likely to occur.
Community-led innovations can also play a role in Experiences from the Thailand’s Neighborhood Upgrading
safeguarding the project benefits for the urban poor. and Shelter Sector Project (NUSSP) demonstrate that projects
implemented by third parties had lower commitment from
Most sites and services never incorporated community the community for maintenance, thus suffering damage
engagement formally in projects implementation. Rather,
114
National Institute of Urban Affairs New Delhi (1988). “Sites and Services
community engagement was simply presumed through the Projects Cities in India’s Secondary - An Evaluation Study (Prepared for
the Ministry of Urban Development).”
30 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
and eventually becoming inoperable. On the other hand, emerged across Asia, Africa and Latin America and have been
where residents self-implemented projects, they were more working with community organizations supporting them to
committed to maintenance, while villages with greater social identify their own solutions to land and housing problems.
cohesion were more likely to carry on with maintenance in Including these NGOs in housing project implementation
the long-term.115 Past experiences suggest that sites and arrangements would be crucial. Projects also stand to learn
services and slum upgrading projects are most effective and benefit from their vast know-how of delivering low-
when responsibility and accountability is decentralized to the income housing, their critical lessons and innovations.
lowest possible level, which in turn supports ownership and
empowerment.116 Further, experiences from previous sites Non-profit, community-led innovations such as Community
and services demonstrate that citizen engagement enhances Land Trusts, community organization, enumerations and
urban governance, allows for a more comprehensive response savings have also proved crucial in safeguarding access to
and longer-term sustainability. affordable land and housing for the vulnerable. In recent
years, the use of CLT has gained attention in both USA and
Communities can also be a source of inputs including Europe as an approach to affordable housing provision and
land, building materials, organization, cost recovery, etc. could also be explored in cities in developing countries.118
In some countries like Kenya, communities have in the past
come together and bought land collectively for housing. 2.4.4 Environmental and Social Framework
Such groups provide opportunities for partnerships between
the government, financing institutions among others. KEY MESSAGES
Where communities have ready land, the government can There is need to consider ESF frameworks in low-
enter into an agreement to provide infrastructure at a fee income housing projects to prevent social and
or with conditions that guarantee affordable housing. Such environmental risks such as displacement of low-
organized groups can also easily access finance as they are income households.
able to guarantee each other – some NGO supported low- Current WB ESF frameworks provide a starting
income housing such as the Kambi Moto Project in Kenya are point as it provides for social and environmental
based upon similar model. protection. For example, it provides for stakeholder
engagement and increased social inclusion (e.g.
The plethora of NGOs currently working in low-income including women, the disables, IPs, ethnic minorities,
housing globally make community participation a and other marginalized groups) and the compensation
possibility in future housing projects. NGOs are critical in of project-affected persons.
community mobilization and ensuring their participation in
projects. The success of the El Salvador project was largely During the heyday of the sites and services approach in
dependent on the non-profit FUNDASAL that had previous the 70s and early 80s, although the Bank had begun to
interactions with communities and therefore were clear on take steps to protect E&S interests in bank-supported
the requirements for community participation. Using their projects, it did not have formal environmental and social
prior experience, they were able to fully involve communities (E&S) guidelines in place. This led to several social and
in the project implementation processes. Globally civil society environmental challenges in implementing sites and services
organizations have also demonstrated effective use of funds projects, like benefits going to non-target beneficiaries. In
by judiciously channeling funding towards basic services the 1980s, the Bank began to incrementally introduce a due
and physical infrastructure improvement, land tenure and diligence framework that centered on an environmental
leadership training.117 Since the 1990s several non-profits review process and a set of thematic operational policies.
(e.g. Slum Dwellers International (SDI), SPARC, CODI)) have
118
Rosalind Greenstein and Yesim Sungu-Eryilmaz, 2005, Community Land
115
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D Trusts, Leasing Land for Affordable Housing; PD&R, 2019, Community
Land Trusts and Stable Affordable Housing; European Commission,
116
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D 2020, Community-managed land and affordable housing trialled in
117
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D four cities in north-west Europe.
Reconsidering Sites and Services: A Global Review | 31
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
In 1984, the Bank consolidated its E&S guidelines and policies Financial intermediaries; and Stakeholder engagement
into Operational Manual Statement (OMS) 2.36, and in and information disclosure. Among other things, the ESF
1989, adopted an Operational Policy (OP) on Environmental requires the Bank and its Borrowers to assess and manage
Assessment, Operational Directive (OD) 4.00. Through the E&S risks in accordance with the mitigation hierarchy, to
1990s, the Bank continued to revise its E&S policies, and in inform and consult with stakeholders in a meaningful way,
1997, coinciding with the end of the sites and services era, and to compensate project-affected people. Future sites and
adopted a final version of its guidelines, OP/BP/GP 4.01, which services projects are likely to benefit from this framework,
became known as the Safeguard Policies (SPs).119 and as result, avoid the risks and pitfalls that led to the failure
of many earlier projects. Tables 1 & 2 present the ESSs and
Today all new IPF projects must comply with the Bank’s safeguards instruments that would likely apply to various
Environmental and Social Framework (ESF), which came potential aspects of sites and services projects.
into force on October 1, 2018. The ESF comprises a Vision
Statement, an Environmental and Social Policy and ten Potential benefits of applying the ESF to sites and services
Environmental and Social Standards (ESSs). These ESSs cover: will likely include: Increased social inclusion and protections
E&S risk and impact assessment and management; Labor for disadvantaged and vulnerable groups, including
& working conditions; Resource efficiency, and pollution women, the disabled, IPs, and ethnic minorities; stakeholder
prevention and management; Community health and safety; engagement throughout the project lifecycle; incorporating
Land acquisition, restrictions on land use and involuntary opportunities for sustainability, including initiatives to reduce
resettlement; Biodiversity conservation and sustainable GHGs; ensuring measures are in place to ensure child and
management of living natural resources; Indigenous Peoples/ forced labor is not used to build homes; consideration of
Sub-Saharan African Historically Underserved Traditional the health and safety of project-affected communities; and
Local Communities (IPs/SSAHUTLCs); Cultural heritage; the selection of sites and services’ locations with limiting
resettlement in mind.
119
The World Banks’ Safeguard Policies Proposed Review and Update:
Approach Paper, October 12, 2012.
32 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
2.5 Low Carbon Development Opportunities
Summary of Low Carbon and Emerging Technologies that Support Low-Income Housing
Sector Innovations Applicable to Future Low-Income Housing Projects
- Simplified or distributive approaches in services such as sanitation, electricity and water allow for greater
Sustainable accessibility and lower costs than conventional networked approaches e.g.
solutions • Solar power can replace a lot of electricity and power service needs as a more sustainable and off-grid solution.
to service
provision: • Sanitation: Condominial sewer networks that involve a simplified system of shallow sewers that serve a cluster of
solar, houses are a low-cost sanitation solution for Africa’s urban poor.
sanitation, • Solid waste: An integrated solid waste management system and a circular economy can be encouraged in the
solid waste creation of new lower-income communities with waste collection can also become more localized and involve
waste-pickers and informal workers creating more jobs.
- Urban farms that are being created in low-income areas such as informal settlements help with food scarcity.
- Rainwater harvesting is a sustainable practice to preserve and reuse water and reduce cost as a low-income
housing solution.
- Green roofs can be an ideal way of reducing heat emissions and absorbing rainwater to reduce carbon emissions
Water access
and promote reuse for more sustainable living.
and food
innovation - Low-cost point-of-use water treatment systems are a solution to water service provision in developing
communities. They are low cost, eliminate issues of accessibility and are also user-friendly and easy to maintain
which allows for sustainability of these systems in such communities.
- Overall, a complete ecosystem and plan of green growth and climate resilience should be envisioned behind the
design of affordable housing plans.
- Material innovation in affordable housing has found a strong basis in low-cost low-tech solutions such as
reinventing locally-sourced and organic materials for use or better re-use and recycle material waste.
- The Zero Kilometer approach calls for the utilization of local materials/, locally sourced materials that are
Housing
closer to the building site and that do not have to go through major stages of industrial processing and at
Design,
the end of their life can return to the environment. This allows for sustainability, is economical and reduces
Construction
environmental damage caused by monoculture and the emissions of carbon dioxide and consumption of
and Materials
fossil fuels during the transportation of these products.
- 3D-printing is an emerging technology that can help construct much faster, lower-cost, and with lower energy
consumption.
- Alternative design approaches to incremental housing, such as the Chilean architect Aravena’s Elemental firm
open-source designs for Chile’s national housing program, allow rethinking of basic design principles increasing the
Design and opportunity for a harmonious community.
planning - Urban densification has come to be widely accepted as a means not only to make efficient use of resources,
innovations promote sustainable development by preventing urban sprawl but also to combat climate change by reducing
green house gases. There are also other ways to achieve density other than higher buildings, including
optimization of unused land and flexible grids.
2.5.1 Sustainable Solutions to Service Provision: sewer network has emerged as a viable alternative to traditional
Solar, Sanitation, Solid Waste sewer networks. A condominial sewer network that involves
Current technologies allow for simplified or distributive a simplified system of shallow sewers that serve a cluster of
approaches in services such as sanitation, electricity and houses is now under pilot as a low-cost sanitation solution for
water providing greater accessibility and lower costs Africa’s urban poor. In Burkina Faso, the government already
than conventional networked approaches. These present supports a decentralized solid waste management system
opportunities to lower costs and enhance sustainability for households. This system of households establishing pits
in future low-income housing. With regard to urban liquid and compost on their own land can also help with agriculture
waste, citywide inclusive sanitation approach that allows a production, decrease the burden on disposal infrastructure,
combination of technical options including condominial save costs and lead to more opportunities for citizens to
Reconsidering Sites and Services: A Global Review | 33
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
generate income from waste.120 Solid waste collection in locally sourced and organic materials for use. Increasingly,
future projects can also become more localized and involve architects and the building construction industry realize
waste-pickers and informal workers creating more jobs. An that for greater sustainability, lower costs and low carbon
integrated solid waste management system and a circular footprints construction materials houses need to be built from
economy can also be encouraged in the creation of new locally sourced materials that are closer to the building site
lower-income communities. Concerning power, consistent and utilize naturally occurring and biodegradable materials or
price reductions of photovoltaic components and rapid better re-use and recycle material waste. The Zero Kilometer
advances in solar technologies have allowed for solar power approach calls for the utilization of local materials, which do
technology to become more accessible and less-costly, not have to go through major stages of industrial processing
where the cost of solar cells dropped 85% due to greater and at the end of their life can return to the environment.
manufacturing and economies of scale.121 Consequently, This allows for sustainability, proves economical and reduces
solar power can replace a lot of electricity and power service environmental damage caused by monoculture and the
needs in future projects as a more sustainable and off-grid emissions of carbon dioxide and consumption of fossil fuels
solution circumventing the lengthy and costly electric during the transportation of these products. 3D-printing is
power installations. also an emerging technology that can help construct much
faster, lower-cost, and with lower energy consumption. It is
2.5.2 Water Access and Food Innovation however important to be cautious of the promises made
Several water and food innovations have also emerged concerning the potential of the 3D printing technology as it is
reducing water related costs and challenges such as still at its infancy, with safety and regulatory standards yet to
sourcing and piping of municipal water. Rainwater be developed for commercial use.
harvesting present a sustainable practice to preserve
and reuse water and reduce costs for low-income 2.5.4 Design and Planning Innovations
housing households. Further, low-cost point-of-use water A variety of design and planning solutions for low-
treatment systems are a solution to water service provision in cost housing abound. Alternative design approaches to
developing communities. They are low cost, eliminate issues incremental housing, such as the Chilean architect Aravena’s
of accessibility and are also user-friendly and easy to maintain Elemental firm open-source designs for Chile’s national
which allows for sustainability of these systems in such housing program, allow rethinking of basic design principles
communities. On food, urban farms are being created in low- increasing the opportunity for a harmonious community.
income areas such as informal settlements to help with food Urban densification has come to be widely accepted as a
scarcity especially during Covid-19. Further, green roofs can means not only to make efficient use of resources, promote
be an ideal way of reducing heat emissions and absorbing sustainable development by preventing urban sprawl but
rainwater to reduce carbon emissions and promote reuse also to combat climate change by reducing greenhouse
for more sustainable living. Overall a complete ecosystem gases. Different ways to achieve density other than higher
and plan of green growth and climate resilience should be buildings also exist, including optimization of unused land
envisioned behind the design of affordable housing plans. and flexible grids that could be considered in future low–cost
housing projects.
2.5.3 Housing Design, Construction and Materials
Material innovation in affordable housing has found a strong 2.5.5 Communications and Data Innovations
basis in low-cost low-tech solutions such as reinventing The explosive growth and penetration of mobile phones
and other devices such as drones provide opportunities
120
Kaza, Silpa; Yao, Lisa C.; Bhada-Tata, Perinaz; Van Woerden, Frank. 2018.
What a Waste 2.0: A Global Snapshot of Solid Waste Management to
for easy communication and large-scale data collection.
2050. Urban Development;. Washington, DC: World Bank. © World Global mobile penetration rate is high, with some countries
Bank. https://openknowledge.worldbank.org/handle/10986/30317
License: CC BY 3.0 IGO. P.152. having more than 100 percent penetration.122 Owing to their
121
Solar Solutions: Bridging the Energy Gap for Off-Grid Settlements.
https://wedocs.unep.org/bitstream/handle/20.500.11822/22268/ S. O’Dea, 2021Global smartphone penetration rate as share of
122
Frontiers_2017_CH5_EN.pdf?sequence=1&isAllowed=y population from 2016 to 2020.
34 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
ubiquity, multiple functionalities and reducing acquisition 2.6 The Broader Country and Sector Context
and operating costs, mobile phones have been employed
So far, Section 2 has assessed what can be learnt from
in a variety of ways to support data collection efforts across
the experiences of the 1st generation sites and services.
the world.123 Further, with the adoption of online and mobile
While these factors discussed above are critical aspects for
banking services by most financial institutions, mobile
consideration when designing future sites and services, they
phones are also increasingly being used as banking platforms
cannot be considered in isolation of the broader country and
and for money transfers. In Kenya for instance, mobile phone
sector context.
users can carry all forms of bank transactions including
obtaining loans and savings. These mobile functionalities
2.6.1 Stable Socio-political and Economic Context
present opportunities to circumvent the bureaucracy
experienced in traditional banking systems making access Steady political and economic conditions at the local and
to finance easy and cheaper. Airborne drones also provide national context. Analysis from previous sites and services
opportunities to aid spatial and physical data collection by indicate that the political and fiscal environment greatly
allowing people to photograph, video and map sometimes affected project implementation and outcomes. Projects
physically inaccessible areas.124 They can also be connected in countries experiencing political or fiscal instability or
to cloud computing to collect and analyze data, becoming a without political support were more likely to experience
critical part of digital data acquisition and informing decision implementation delays and low levels of success. Difficult
making processes with increased speed, safety, efficiency and economic conditions in Nigeria, Morocco and Kenya were
reduced costs. detrimental to project design, uptake and implementation.
In Morocco for instance, project design and implementation
2.5.6 A Caveat on Technology and Innovations took place at a period of rapidly changing economic fortunes.
When prepared, the government’s finances were thriving,
Despite the emergent technologies and the potential they
but by completion public sector fiscal constraints created
hold for development, it is important to understand that
difficulty in continuing massive subsidized public investments
technology cannot be a panacea neither can it be applied
in shelter. Similarly, the implementation of the First (Bauchi)
uniformly. Rather the use of technology needs to be
Urban Development Project in Nigeria occurred during a
informed by context, cost considerations, skills requirements
period of economic crisis as the currency rapidly devalued and
and access by different groups etc. For instance, the use
rapid inflation set in. At completion, Nigeria’s GNP per capita
of mobile phones and drones for data collection may
was only a little more than a third of its level when the Project
elicit safety and data privacy concerns limiting their use
was being appraised. The economic conditions in Nigeria
in some circumstances. The use of drones is particularly
were further compounded by political uncertainty with the
restricted in areas with high air traffic like near airports and
project being prepared under a civilian administration and
in densely populated are like cities, sometimes requiring
implemented under a federal military government.
special permits to operate in restricted areas which may
take lengthy periods to obtain permission. Further, the use
In Kenya, reduced municipal revenue due to the removal of
of some of these technologies may require training or high
the Graduated Personal Tax by government and declining
initial costs particularly in the case of 3D printing, where most
political influence at the municipal level that were meant to
designers and developers are unfamiliar with the technology
implement the project led to political hesitation to adopt
requirements. The risk of technologies going obsolete after
the second phase of sites and services. In both Morocco and
high initial investments should also be considered given the
Kenya, subsequent poor project uptake and execution was
fast paced world of technology.
further exacerbated by politicians and government preference
for slum eradication and replacing them with high standard,
123
Trucano Michael (2014), Using mobile phones in data collection:
Opportunities, issues and challenges.
highly subsidized housing for which cost recovery was largely
124
Guttman Chase (2019), Drones Connect to Cloud Computing to impossible given affordability limits.125 This reluctance to
Analyze Data from the Sky; Data capture with drones – digital
engineers’ eyes in the sky: https://www.aurecongroup.com/expertise/
125
Project Performance Audit Report, Kenya Second Urban Project,
digital-engineering-and-advisory/data-capture-drones (Credit 791-Ke/Loan 1550-Ke), June 28, 1991.
Reconsidering Sites and Services: A Global Review | 35
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
provide project support meant that it took longer to draft and Countries such as El Salvador and India, which took a
implement projects that in turn led to increased costs and broader sector approach to sites and services experienced
burden to beneficiaries. Indeed, problems of government considerable success as compared to those that, did not.
buy-in and ownership are among identified factors that led to In El Salvador for instance, the sites and services project was
limited project success in Egypt.126 national in scope, with particular emphasis on transportation
and employment linkages. In San Salvador, sites were located
In El Salvador, armed conflict made resources scarce and adjacent to existing industrial corridors. Those in secondary
caused people to flee several project areas with the martial cities were located within 10-15 minutes’ walk of the main
law prohibiting workers from implementing project works square. The availability of community facilities in areas
for several months. This led to restructuring in which, instead adjacent to project sites was also examined before including
of 15,000 units, only about 9,600 were provided and many of additional facilities in the project.
the infrastructure and complementary community facilities
not provided. In India, communal disturbances in Bombay In India, the Bombay Urban Development Project not only
during the short period between December 1993 and sought to increase overall affordable housing for the
February 1994, and the continuous depreciation of the rupee, poor, but also supported efforts to improve policies and
particularly after the Gulf War in 1991, adversely affected credit institutions affecting the overall management of urban
utilization. Given the above, the sustainability and replicability development. Consequently, the project experienced
of future sites and services schemes would therefore require significant levels of success with the physical targets
a clear assessment of the current and projected political and for sites and services schemes almost fully met and the
economic stability at both the local and country context. Even affordable, serviced plots sold to nearly ninety thousand
where conditions are projected to remain stable, government low-income households with less interference from other
buy-in will require to be strong. income groups.
2.6.2 Comprehensive Housing Sector Approach Elsewhere in Egypt, the shift from upgrading to
Projects should be part of a broader sector or policy citywide policies integrations led to better outcomes
interventions and not a stand-alone intervention. While with government creation of the Informal Settlement
incremental housing approach has proved a potential solution Development Facility in 2008. The facility, which stresses
for low-income housing, it needs to be re-crafted into a safety within informal urban areas has greater focus on
broader approach rather than a singular type of intervention. physical, social, juridical and economic integration.128
Projects should be linked to overall sector interventions Economic integration involves linking of informal urbanization
and performance including inter-sectoral coordination. This to the formal property markets. Physical integration involves
can range from coordinating multiple interventions in the construction of roads to enhance accessibility with social
overall housing sector to linking projects to transportation integration addressing community needs while juridical
and employment linkages and overall community services. integration includes property regularisation and land-titling’.129
Evidence from sites and services and other low-income Despite the lack of a clear mode of intervention, the inclusion
interventions such as slum upgrading has proved that, if of slum upgrading as part of a wider policy approach has led
shelter supply remains inadequate even for middle-income to increasing political will and funds allocation towards low-
groups, it is likely that plots and house units meant for low- income housing.130
income beneficiaries in the project will get transferred to
higher income groups.127
128
Khalifa, M. A. (2015). Evolution of informal settlements upgrading
strategies in Egypt: From negligence to participatory development. Ain
126
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D. Shams Engineering Journal, 6(4), 1151-1159.
Implementation Completion Report, India, Bombay
127
Urban
129
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D.
Development Project (Credit 1544-In), June 10, 1997.
130
Bolton L. 2020, ‘Sites and services’, and in-situ slum upgrading, K4D.
36 | Reconsidering Sites and Services: A Global Review
Re-examining 1st Generation Sites and Services: Underlying Assumptions, Lessons and Emergent Possibilities
It is also important to note that, even with available public Again, sites and services should be embedded or anchored
land, sites and services may not be the best solution in broader policy and regulatory framework. This allows
(depending on local market and socio-political conditions) for guidance and conformity and especially where there
to low-income housing. Consequently, considerations for are deviations from conventional planning standards. Tools
sites and services must be undertaken in the context of such as Special Planning areas can be used as enabling
other options such as public affordable housing, PPPs with instruments for sites and services. Designation of slum
cross-subsidization, auction out, community land trusts etc. areas as special planning areas has allowed the provision
Further, it is important to recognize that approaches to sites of infrastructure and services using non-conventional
and services may also differ from one context to another standards in places like Kenya.131
prompting the need to for different development approaches
for different contexts.
https://www.muungano.net/mukuru-spa
131
Reconsidering Sites and Services: A Global Review | 37
3
Guiding Principles
for Designing and
Implementing Sites and
Services Projects
38 | Reconsidering Sites and Services: A Global Review
Guiding Principles for Designing and Implementing Sites and Services Projects
T he challenge of affordable housing is a complex issue
and there is no singular approach that can claim to be
the perfect solution. Addressing the challenge will require
in many African cities. Achieving this objective would result
in the guided development of urban land and infrastructure
provision for sustainable urban growth. To design a sites and
a multi-pronged approach. This review has taken a look at services intervention, a project team would need to first
the potential for sites and services approach to contribute determine the country’s primary objective for implementing
towards the housing challenge in rapidly growing urban sites and services. A project designed for the broader objective
areas. It is clear that sites and services can offer a potential of planned urban development would likely focus primarily
policy option but important considerations emerge as we on the programmatic guidelines below. The project-level
consider applying the lessons learnt from this review towards guidelines could be more useful for project teams focusing
future projects and programs. on the housing objectives.
First, sites and services will not work in every context. Thus, Third, a programmatic approach to sites and services has
the Guiding Principles below aim to be guidance, rather the potential to address bottlenecks more holistically. In
than a prescription, for operational teams when designing the 1st generation of sites and services, government and
sites and services. The principles are drawn from the lessons donors adopted a project-by-project approach, where they
learnt outlined in the previous section and aim to point out would take a site and focus on making that site inhabitable
how sites and services could be more effective, and how the for a certain income group, while often excluding other land
approach can present opportunities to further contribute uses, other income groups and other parts of the city. This
to the housing agenda beyond what the 1st generation of review shows that this approach is detrimental to ensuring a
projects may have anticipated. sustainable approach towards providing affordable housing
and thriving, inclusive communities.
Second, sites and services can be recrafted into a broader
approach rather than a singular type of intervention for Adopting a programmatic approach encourages a strategic
housing for urban poor. While the 1st generation of sites lens to unlocking the affordable housing bottlenecks.
and services aimed to provide the urban poor with secure Project teams adopting a programmatic approach could
housing that they could afford, the approach can be also used influence the housing programs and standards of client
by governments towards other objectives. First, the approach governments beyond the specific sites that will be done in
can support the provision of housing for all income groups. the projects. The programmatic approach focuses on what
Projects may think about designing project sites with the it would take to get a low-income lens embedded in the
overall cost recovery as the basis, with higher-income groups planning and housing framework of a municipality. As will be
providing full cost recovery while designing subsidies for noted from the guidance below, the programmatic approach
the poor. Second, sites and services can be used to support reconceptualizes the “site” as the whole urban jurisdiction,
guided urban expansion. Under this objective, the focus is not the specific site of the project, and conceptualizes
on providing serviced plots for all income groups across the “services” beyond services to the project site. A programmatic
whole city. Infrastructure and other facilities would be laid out approach also encourages incremental upgrading of whole
ahead of housing construction, which is often not the case neighbourhoods throughout out the city.
Reconsidering Sites and Services: A Global Review | 39
Guiding Principles for Designing and Implementing Sites and Services Projects
3.1 Summary of Lessons Learnt
The review reviewed the experiences of the 1st generation of projects across 14 thematic areas, and has shown that sites
and services have a higher likelihood of achieving its objectives where the following conditions exist:
Country and Sector Context
• Where there is social, political and economic stability at both the local and national context.
• Where there is government and community project buy-in into sites and services as an intervention.
• In the context of a comprehensive housing sector approach that caters for all the different social groups.
• Where there are flexible planning and building standards that allow for incremental housing approach, and upwards
or downwards adjustments where necessary while maintaining house and neighborhood quality and affordability.
• Where diverse land and property rights options exist, providing for individual or communal land ownership, freehold
or leasehold land tenure systems, home ownership or rental options.
• Where there exists robust NGOs, which allow community engagement across all stages of the project.
Land Context
• In areas where sufficient and ‘clean’ land is guaranteed through clear acquisition processes and efficient conflict
resolution mechanisms.
• Where there is availability of multiple land sources besides public land, whose supply in most cities is now limited.
• Where land location ensures good access to jobs that can be guaranteed through close proximity to the city or linking
site to citywide plans and infrastructure.
• Where available sites do not exacerbate urban sprawl and can be integrated into a wider urban development plan.
In addition, the following features in project designs have indicated better outcomes:
Project Ambition, Measure of Success and Implementation
• More realistic, less ambitious timelines of the projects.
• Longer time periods to assess full project build-out, with less expectation for immediate occupancy by beneficiaries.
• The implementing agency is an existing institution, is fully staffed and functional units, has a track record of success (for
existing institutions), is flexible and open to innovation, and has the trust of the public and peer agencies.
Beneficiary Targeting and Support
• Targeting and clear understanding of beneficiary needs and preferences are clearly understood and projects tailored
to accommodate those needs as appropriate.
• Diverse and sufficient financing for land and housing consolidation to allow faster consolidation and build-out.
• Opportunities for income-generation (e.g. rental) to allow households to generate extra incomes for house
consolidation.
• Sufficient subsidies and a balance between affordability and cost recovery is considered, incorporating mixed income
groups or involvement of NGOs and private developers as financiers.
• Cost recovery is designed such that:
- The nexus of affordability and cost recovery is built into the project.
- Payments are made to a private sector entity to increase compliance and technology adopted to more reliably
manage loan administration and cost recovery.
• Services are subsidized and/or beneficiaries are provided with ready rooms for occupation as they continue to build
to avoid paying rents as they build homes.
• Determination of beneficiaries’ ability to afford is contextualized and expanded to include non-traditional income
sources such as personal savings and incomes from informal businesses that forma a key part of household incomes
in developing economies.
• Environmental and social considerations are integrated into the design to safeguard beneficiaries and the environment.
• Low-carbon opportunities are maximised to lower costs and the carbon footprint.
40 | Reconsidering Sites and Services: A Global Review
Guiding Principles for Designing and Implementing Sites and Services Projects
3.2 A Programmatic Approach to Sites and Services
Where the context allows, project teams have an opportunity to use the sites and services approach to influence the
affordable housing landscape beyond the specific sites of the project. Of the 14 thematic areas reviewed by the study, some
are more easily incorporated into a programmatic approach. These areas are presented below. Project teams could consider
incorporating the following activities into the projects with the objective of influencing a more enabling environment for
affordable housing across the whole urban jurisdiction:
Establish and influence the degree to which planning and engineering legislation are appropriate
• Conduct a review of the planning and engineering legislation that will be applied on the project site, and where needed,
include technical assistance to modify these standards.
• Determine whether mixed use and mixed-income principles are also embedded in the regulations, as multi-use of the
land encourages thriving and sustainable communities.
• Review if the regulatory environment supports incremental housing and low-income rental units.
• Review the planning legislation to ensure that rental units can be established on sites and services.
• Determine whether the legislation supports innovations such as water harvesting, the use of non-traditional construction
materials, and innovations to reduce carbon footprint in affordable housing.
Determine and influence the availability of public land in the municipality and establish land banking
• Ensure that there is easily available land to match the demand in the project under preparation.
• Determine if an enabling policy and legislative environment exists for land acquisition.
• Determine the extent to which innovations in land instruments, such as land value capture, transfer of development
rights, charges on building rights, impact fees, land readjustment, are supported by legislation as these present
opportunities to source and finance land.
• Consider embedding a land banking exercise into the project, particularly for smaller cities where vacant land is still
available close to the urban core.
Strengthen the awareness and capacity of local implementing entities
• Most critical is to have the implementing entities aware that sites and services projects should be implemented as part
of a broader urban plan and not as stand-alone projects.
• Lessons from past sites and services show the need to integrate sites and services projects into the wider urban plans
and infrastructure networks, such that housing has basic services and easy access to jobs and transport.
Promote community engagement processes that allow flexibility on the mode of engagement
• Engage with local and international NGOs such as the Slum Dwellers International (SDI) that have persistently advocated
for security of tenure and services provision for slum/squatter residents to incrementally build their homes. This
engagement will allow lessons from Bank projects to feed into other projects in the municipality, and vice versa.
Reconsidering Sites and Services: A Global Review | 41
Guiding Principles for Designing and Implementing Sites and Services Projects
3.3 End Note for introducing low carbon development opportunities
into affordable housing, e.g. sustainable solutions to service
The study looked at the experiences of 1st generation of sites
provision: solar, sanitation, solid waste.
and services projects across 14 thematic areas and shows that
much can be learnt from them, and that sites and services The study intends to be a starting point upon which to
remains a policy option for governments tackling the housing continue building further knowledge and practice towards
challenges typical of rapidly urbanizing contexts. This review this approach, as governments and project teams reintroduce
has presented lessons learnt that can be applied towards it as one option in a broader housing agenda of a country.
future projects, where applicable. The review also shows that Context remains the single most important consideration.
a 2nd generation of projects presents a great opportunity
42 | Reconsidering Sites and Services: A Global Review
Bibliography
1. A.Khalifa, M. (2015). "Evolution of informal settlements upgrading strategies in Egypt: From negligence to participatory
development. Ain Shams Engineering Journal, 6(4), 1151-1159".
2. Abbot, J. (2002). "An analysis of informal settlement upgrading and critique of existing methodological approaches." Habitat
International 26(3): 303-315".
3. Akinsola, B. N., et al. (2013). "Effective Site and services scheme as a means of solving low-income housing need in Nigeria."
Proceedings of 5th West African Built Environment Research (WABER) Conference, the British Council in Accra, Ghana , on 12 -14,
August, 2013 pp 429 -446.
4. Akinsola, B. N., et al. (2014). "Effective sites and services scheme as a means of solving low-income housing need in Nigerian
cities." Journal of Economics and International Business Management Vol. 2(3), pp. 50-58, September 2014 ISSN: 2384-7328
Review Paper.
5. Aliani, A. H. and Y. K. Sheng (1990). "The incremental development scheme in Hyderabad An innovative approach to low
income housing."
6. Angel, S. (2008). An arterial grid of dirt roads. Cities, 25(3), 146 162. https://doi.org/10.1016/j.cities.2008.03.005
7. Baken, R.-J. and J. v. d. Linden (1993). “Getting the Incentives Right': Banking on the Formal Private Sector. A Critique of World
Bank Thinking on Low-Income Housing Delivery in Third World Cities." Third World Planning Review 15(1): 1.
8. Bamberger, M., et al. (1980). "Evaluation of the First El Salvador Sites and Services Project." Urban and Regional Report No. 80-12,
The World Bank Development Economics Department, Urban and Regional Economic Division.
9. Bamberger, M., et al. (1981). "The First Lusaka Upgrading and Sites and Services Project: Summary of the Main Findings of a Five-
Year Evaluation”.
10. Bamberger, M., et al. (1982). "Evaluation of Sites and Services Projects The Experience from Lusaka, Zambia." World Bank Staff
Working Papers Number 548.
11. Bank, W. (1990). "Project Performance Audit Report, Federal Republic of Nigeria (Bauchi) Urban Development Project (Loan
1767-Uni) June 8, 1990."
12. Blunt, A. (1982). "Ismailia Sites-and-Services and Upgrading Projects - A Preliminary Evaluation." Habitat International 6(5-6):
587-597.
13. Bolton, L. (2020). ‘Sites and services’, and in-situ slum upgrading. Helpdesk Report, K4D.
14. Boonyabancha, S. (2009). "Land for housing the poor—by the poor: experiences from the Baan Mankong nationwide slum
upgrading programme in Thailand." Environment and urbanization 21(2): 309-329.
15. Buckley, R. M. and J. Kalarickal (2006). Thirty Years of World Bank Shelter Lending: What Have We Learned', The World Bank Group.
16. Colin, J.-P. and P. Woodhouse (2010). "Introduction: Interpreting Land Markets in Africa." Africa 80(1).
17. Consult, H. (2019). "The Hass Property Index: Land Price Index Quarter Four Report 2019 P."
18. European Commission (2020). "Community-managed land and affordable housing trialled in four cities in north-west Europe."
19. Ferguson, B. and P. Smets (2010). "Finance for incremental housing; current status and prospects for expansion." Habitat
International 34(3): 288-298.
20. Frontiers (2017). "Solar Solutions: Bridging the Energy Gap for Off-Grid Settlements."
21. Gardner, D., et al. (2019). Assessing Kenya's Affordable Housing Market April, 2019, Centre for Affordable Housing Finance in
Africa (CAHF).
22. Gattoni, G. ( 2009). "A Case for the Incremental Housing Process in Sites-and-Services.
23. Programs: And Comments on a New Initiative in Guyana."
24. Goodlad, R. (1996). "The Housing Challenge in South Africa " Urban studies 33(9): 1629-1646.
25. Greenstein, R. and Y. Sungu-Eryilmaz (2005). "Community Land Trusts, Leasing Land for Affordable Housing."
26. Gross, S. K. M. a. D. J. (1987). "Sites and Services—and Subsidies: The Economics of Low-Cost Housing in Developing Countries."
The World Bank Economic Review Vol.1 No.2, 301-335.
Reconsidering Sites and Services: A Global Review | 43
Bibliography
27. Hall, M. (2018). "The Relationship Between Lot Cost and Total Building Cost."
28. Hallward-Driemeier, M. and L. Pritchett (2015). "How Business is Done in the Developing World: Deals versus Rules, Journal of
Economic Perspectives—Volume 29, Number 3—Summer 2015—Pages 121–140."
29. Handzic, K. (2010). "Is Legalized Land Tenure Necessary In Slum Upgrading? Learning from Rio's land tenure policies in the Favela
Bairro Program." Habitat International 34(1): 11-17.
30. Hart, M. (2020). "Developing Cities Need Cash. Land Value Capture Can Help."
31. Hasan, A. and H. Arif (2018). "Pakistan: The Causes and Repercussions of The Housing Crisis." IIED Working Paper October 2018.
32. Hasnath, S. A. (1982). "Sites and Services Schemes in Dacca: a Critique." Public Administration and Development 2: 15-30.
33. Hay, A. and R. Harris (2007). "'Shauri ya Sera Kali': The Colonial Regime of Urban Housing in Kenya to 1939." Urban History 34(3):
504-530.
34. Ir. Claudio Acioly Jr. (Unknown). "Informal Cities in a Global Context. What do we learn from it?".
35. Joint Centre for Housing Studies of Harvard University (2019). The State of the Nations Housing 2019.
36. Jones, A. and L. Stead (2020). "Can People on low Incomes Access Affordable Housing Loans in urban Africa and Asia? Examples
of innovative housing finance models from Reall’s global network." Environment & Urbanization 32(1): 155–174.
37. Keare, D. H. and S. Parris (1982). "Evaluation of Shelter Programs for the Urban Poor." World Bank Staff Working Paper 547.
38. Mabin, A. (2020). "A Century of South African Housing Acts 1920–2020." Springer Nature.
39. Mangin, W. (1967). "Latin American Squatter Settlements: A Problem and a Solution." Latin American Research Review, Vol. 2, No.
3 (Summer, 1967), pp. 65-98.
40. Mayo, S. and D. Gross (1987). "Sites and Services-and subsidies Economics of Low-Cost Housing in Developing Countries." The
World Bank Economic Review 1(2): 301-335.
41. Mayo, S. K. and D. J. Gross (1987). "Sites and services—and subsidies: The economics of low-cost housing in developing
countries." The World Bank Economic Review 1(2): 301-335.
42. McKinsey Global Institute (2014). "A blueprint for addressing the global affordable housing challenge."
43. Muungano Support Trust (MuST) (2022). "SPA-A Project of Nairobi City County."
44. Mwangi, I. K. (1997). "The nature of rental housing in Kenya." Environment and urbanization 9(22).
45. Mwenda, J. N. (2001). Registration of Properties in Strata in Kenya University of Nairobi, Kenya
46. Nanjala, E. (2020). Making the elusive dream of home ownership for millions come true.
47. Nathan, V. (1995). "Residents’ satisfaction with the sites and services approach in affordable housing. Housing and society, 22(3),
53-78".
48. National Institute of Urban Affairs New Delhi (1988). "Sites and Services Projects Cities in India’s Secondary - An Evaluation Study
(Prepared for the Ministry of Urban Development)."
49. Oberlander, H. P. (1985). "Land: The Central Human Settlement Issue, The University of British Columbia Press."
50. OECD. "Building a Global Compendium on Land Value Capture."
51. Olaniran, M. O. (2018). "Urban Infrastructure Development: An Examination of Impact of Sites and Services Schemes in Ibadan."
52. Owens, K. A. (2008). Understanding how actors influence policy implementation: a comparative study of wetland restorations
in New Jersey, Oregon, The Netherlands and Finland, University of Twente.
53. Owens, K. E., et al. (2018). "Success when we deemed it failure? Revisiting sites and services projects in Mumbai and Chennai 20
years later." World Development: 260–272.
54. Pacione, M. (2009). "Housing." University of Strathclyde, Glasgow, UK.
55. Patel, S., et al. (2015). "We beat the path by walking” How the women of Mahila Milan in India learned to plan, design, finance
and build housing." Environment & Urbanization 28(1): 223–240.
56. PD&R (2019 ). "Community Land Trusts and Stable Affordable Housing."
57. Qadeer, M. A. (1996). "An Assessment of Pakistan's Urban Policies, 1947-1997." The Pakistan Development Review 35(4): 443-465.
44 | Reconsidering Sites and Services: A Global Review
Bibliography
58. Rakodi, C. (1991). "Developing institutional capacity to meet the housing needs of the urban poor - Experience in Kenya,
Tanzania and Zambia."
59. Rakodi, C. and P. Withers (1995). "Home Ownership and Commodification of Housing In Zimbabwe." International Journal of
Urban and Regional Research 19(2): 250-271.
60. Rakodi, C. and P. Withers (1995). "Sites and Services: Home Ownership for the Poor? Issues for Evaluation and Zimbabwean
Experience." Habitat International.
61. Rakodi, C. and P. Withers (1995). "Sites and Services: Home Ownership for the Poor?: Issues for evaluation and Zimbabwean
experience." Habitat International.
62. Robertson, D. (2017). "Community Land Trust Models and Housing Coops from Around the World." RioOnWatch.
63. Rondinelli, D. A. (1990). "Housing the Poor in Developing Countries." American Journal of Economics and Sociology'.
64. Rondinelli, D. A. (1990). "Housing the Urban Poor In Developing Countries: The Magnitude of Housing Deficiencies and the
Failure of Conventional Strategies Are World-Wide Problems." American Journal of Economics and Sociology 49(2): 153-166.
65. Siba, E. and M. Sow (2017). "Financing African cities: What is the role of land value capture?".
66. Silpa, K., et al. (2018). "What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050."
67. Singh, G. (2016). "Land in India: Market price vs. fundamental value."
68. Srinivas, H. (Unknown). "Sites and Services."
69. Straaten, J. J. V. (1977). "Site and Service Schemes in Kenya." Paper Presented at the HRDU Seminar on Housing for the Lower
Income Groups' 9th May 1977 National Housing Corporation.
70. Turner, J. C. (1968). "Housing Priorities, Settlement Patterns, and Urban Development in Modernizing Countries, Journal of the
American Institute of Planners, 34:6, 354-363, DOI: 10.1080/01944366808977562."
71. UN HABITAT (1987). "Case study of sites and services schemes in Kenya: Lessons from Dandora and Thika."
72. UN HABITAT (1991). "The Incremental Development Scheme_ A case study of Khuda-Ki-Basti in Hyderrabad Pakistan ".
73. UN-HABITAT (2010). The State of African Cities 2010: Governance, Inequality and Urban Land Markets.
74. UN HABITAT (2016). "Slum Almanac 2015-2016."
75. UN HABITAT (2020). "World Cities Report 2020: The Value of Sustainable Urbanization."
76. USAID (2021). "Securing Land Tenure and Property Rights For Stability and Prosperity."
77. Vestbro, D. U. (1999). "Housing in the Apartheid City."
78. Vijayalakshmi, M. (2000). "Impact of housing policy: sites and services schemes in Chennai city." Review of Development and
Change,VoLVI/June-December 2000, 285-295.
79. Wainer, L. S., et al. (2016 ). "Incremental housing, and other design principles for low-cost housing, C-38400-RWA-1."
80. Werlin, H. (1999). "The slum upgrading myth." Urban studies 36(9): 1523-1534.
81. Weru, J., et al. (2018). "The Akiba Mashinani Trust, Kenya: a local fund’s role in urban development." Environment & Urbanization
30(1): 53–66.
82. Wolrd Bank (1986). "India First Madras Urban Development Project."
83. Wolrd Bank (1991). " Project Performance Audit Report, Kenya Second Urban Project, (Credit 791-Ke/Loan 1550-Ke), June 28,
1991."
84. World Bank (1991). "Urban Policy and Economic Development: An agenda for the 1990s. World Bank, Washington.".
85. World Bank (1994). "Project Completion Report, Pakistan, Urban Development Project (Credit Number 1348-Pak), August 2,
1994."
86. World Bank (1997). "Implementation Completion Report, India, Bombay Urban Development Project (Credit 1544-In), June
10, 1997."
87. World Bank (2012). "The World Banks’ Safeguard Policies Proposed Review and Update: Approach Paper, October 12, 2012.".
Reconsidering Sites and Services: A Global Review | 45
4. Annexes
Annexes
ANNEX 1: Considering the ESF In Implementing Sites and Services Projects
Implementation Considerations: The Environmental and Social Framework Tables
The table below presents the ESSs that would likely apply to various potential aspects of a sites and services (S&S) project.
The relevance of the different ESSs depends on many factors, including the size, location and components of a project.
Table 1: ESF Considerations in Sites and Services Projects
Project Aspects ESSs* to Consider
ESS1, ESS2, ESS10
ESS3 (Resource Efficiency and Pollution Prevention and Management)
1) Provision of basic services ESS4 (Community Health and Safety)
ESS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources)
ESS8 (Cultural Heritage)
ESS1, ESS10
2) Tenure security
ESS5, ESS7, ESS9**
ESS1, ESS10
3) Access to incremental housing
ESS2, ESS3, ESS4, ESS9
ESS1, ESS10
4) Housing consolidation
ESS2, ESS3, ESS4, ESS9
5) Provision of community services and ESS1, ESS10
facilities ESS2, ESS3, ESS4, ESS6, ESS8
ESS1, ESS10,
6) Livelihood opportunities
ESS2, ESS3, ESS4, ESS6
7) Community engagement ESS1, ESS10
ESS1, ESS10
ESS5 (Land Acquisition, Restrictions on Land Use and Involuntary Resettlement)
8) Land acquisition ESS7 (Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional
Communities)
ESS8, ESS9**
9) Strengthening institutional capacity ESS1, ESS10
and project management ESS2
*ESS1 (Assessment and Management of Environmental and Social Risks and Impacts), ESS2 (Labor and Working Conditions), and ESS10 (Stakeholder
Engagement and Information Disclosure) are cross-cutting themes which apply in virtually all cases.
**ESS9 (Financial Intermediaries): In the case that FIs are involved in providing financing for project activities such as land acquisition or purchasing
construction materials, the requirements of ESS9 would apply.
Reconsidering Sites and Services: A Global Review | 47
Annexes
Table 2: Screening of Potential Environmental and Social Risks and Impacts in S&S Projects
ESSs to
Project Aspects Potential Activities Generic E & S Risks/Impacts Applicable E&S Tools
Consider
1) Provision of - Construction of minor roads - Positive E&S benefits in improving people’s ESS1,ESS2, ESMF, SEP*, GRM*,
basic services and walkways access to water and sanitation, reducing ESS3, ESS4, LMP*, CoCs, GBV/
- Construction of major roads waterborne diseases in communities, and ESS6, ESS8 SEA AP, ESIA/ESMP*,
reducing environmental pollution and ESS10 ESHGs, WMP, EPRP
- Construction of small civil
GHGs
works for water supply and
sanitation, and electricity - Improved health and poverty reduction
supply. - Adverse impacts on natural habitats and
- Construction of major civil areas
works for water supply, - During construction, noise, dust, loss of
sanitation, and electricity vegetation, construction and hazardous
distribution. materials and waste, potential exclusion
- Training for self-help of vulnerable groups, social conflicts, GBV/
construction activities SEA/SH, labor influx, disease transmission,
child and forced labor, traffic safety
- Solid waste collection,
removal and disposal - Occupational health and safety risks
- Integration of sustainable - Community health and safety risks
solutions to service provision - Impacts on biodiversity, including in
(i.e., solar mini-grids) primary supply chains
- Potential impacts on physical cultural
resources of the project-affected
communities
2) Tenure security - Neighbourhood planning - Stabilizing vulnerable populations, poverty ESS1, ESS10 ESMF, SEP, GRM,
- Land titling reduction, conflict reduction ESS5, ESS7, IPPF, IPP,
- Review of land tenure - Building inclusive, sustainable ESS9 FI’s ESMS
regulations and approaches communities
- Risk of exclusion of vulnerable groups
from receipt of project benefits
- GBV/SEA/SH issues
- Access to credit
3) Access to - Construction of core units - Increased resilience and social inclusion in ESS1, ESS10 ESMF, SEP, GRM, LMP,
incremental - Home improvement the housing sector ESS2, ESS3, CoC, GBV/SEA AP,
housing subsidies/loans to perform - Improved housing quality for lower ESS4, ESS9 ESIAs/ESMPs, ESHGs,
structural and/or qualitative income families WMP
improvements - Improved living conditions
- Innovative housing finance - Potential adverse E&S impacts related to
(community savings, construction activities
commercial banks, etc.)
- New technology to manage
loans
- Training for self-help
construction activities
4) Housing - Home improvement - Improve housing conditions ESS1, ESS10 Same as above.
consolidation subsidies/loans to construct/ - Expand the supply of rental space and ESS2, ESS3,
retrofit additional space in space for livelihood activities ESS4, ESS9
homes - Increased property values and tax
- Training for self-help revenues for local governments
construction activities - Potential adverse E&S impacts related to
construction activities
48 | Reconsidering Sites and Services: A Global Review
Annexes
ESSs to
Project Aspects Potential Activities Generic E & S Risks/Impacts Applicable E&S Tools
Consider
5) Provision of - Design and construction of - Adverse impacts on natural habitats and ESS1, ESS10 Same as above.
community new social infrastructure areas ESS2, ESS3,
services and such as schools, community - During construction, noise, dust, loss of ESS4, ESS6,
facilities and sports centers, health vegetation, construction and hazardous ESS8
clinics, markets, open space waste, social conflicts, GBV/SEA/SH, labor
influx, disease transmission, child and
forced labor, traffic safety
- Occupational health and safety risks
- Potential impacts on physical cultural
resources of the project-affected
communities
6) Livelihood - Providing space for income- - Job creation for beneficiaries, including ESS1, ESS10, ESMF, SEP, GRM, LMP
opportunities generating activities women, youth, and other disadvantaged ESS2, ESS3,
- Access to programs to reduce populations ESS4, ESS6
poverty and vulnerability - Potential for income-generating activities
- Employment opportunities in - Risk of social conflicts
project activities
7) Community - Participation of beneficiaries - Increased social inclusion, especially ESS1, ESS10 ESMF, SEP, GRM
engagement - Involvement of a wide-range among vulnerable groups
of community actors (local - Stronger community organizations
and regional authorities, - Potential social conflicts
housing organizations,
neighborhood groups,
NGOs)
8) Land - Acquisition of land for - Involuntary displacement and ESS1, ESS10, ESMF, RPF, RAP, SEP,
acquisition infrastructure provision, resettlement ESS5, ESS7, GRM, IPPF, IPP
housing and community - Potential loss of land, assets and ESS8, ESS9
services livelihoods
- Issues of inclusion, social vulnerability,
GBV/SEA/SH
- Potential impacts on IP/SSAHUTLC land,
resources, livelihoods or cultural practices
- Potential impacts on physical cultural
resources of the project-affected
communities
9) Strengthening - Technical assistance to - Strengthening government institutions ESS1, ESS10, ESMF, LMP, SEP, GRM
institutional improve urban planning, and local community organizations ESS2
capacity and the operation - Capacity building
and project and maintenance of
management infrastructure
- Strengthening local
community organizations
and NGOs
- Capacity building on ESF
List of Acronyms: CoC Code of Conduct ; EHSGs Environmental Health and Security Guidelines ; EPRP Emergency Preparedness and Response Plan; ESIA
Environmental and Social Impact Assessment; ESMF Environmental and Social Management Framework; ESMP Environmental and Social Management
Plan; ESMS Environmental and Social Management System; GBV/SEA AP GBV/SEA Action Plan; GRM Grievance Redress Mechanism; IPP Indigenous Peoples
Plan; IPPF Indigenous Peoples Planning Framework; LMP Labor Management Plan; RAP Resettlement Action Plan; RPF Resettlement Policy Framework; SEP
Stakeholder Engagement Plan; WMP Waste Management Plan.
*SEP, GRM, LMP, and ESIA/ESMP are almost always required as they are cross-cutting in nature.
Reconsidering Sites and Services: A Global Review | 49
Annexes
ANNEX 2: Comparisons of Different Land Models & Their Application To Sites and Services
Community Land Trust (CLT)
A community Land Trust is a non-profit organization that acquires and holds land in trust for the benefit of local community.
Land owned by the trust is leased to households who either buy or rent property that sit on CLT land. Residents only have a
possession of the property while the CLT retains control of the land. The CLT has the right to repurchase property from owners
at a resale formula agreed in the ground lease. This approach control land markets hence making land and housing affordable
in perpetuity.131
Guided Land Development (GLD)
It a technique that guides the conversation of privately owned land on the urban fringe from rural to urban to enable
development occur in a planned manner. It entails cities anticipating for inevitable urban growth and the possible direction
and taking steps to provide a pathway for future infrastructure to guide development in such areas.132
Land Pooling/Re-adjustment (LP/R)
Entails consolidating a group of distinct land parcels for their common planning, servicing and subdivision. The sale of part of
the plots is then used to cover project costs and the remaining plots are re-allocated back to the landowners in exchange for
their rural land.133
Transfer of Development Rights (TDR)
Constitutes the buying of development rights usually in areas where development is prohibited and using them to develop
land in different location, where development or density is preferred. Ideally, the owner is being paid not to develop in a certain
location but to develop elsewhere.134
Land Sharing (LS)
This is an agreement between the authorized occupants of a piece of land and the land owner. Entails the unauthorized
occupants moving off the high value land in exchange for being allowed to either rent or buy a part of the land below market
value. As a result, residents gain legitimate tenure and continue living on land while original landowners are able to regain
access to their land.135
Land Banking (LB)
This refers to the acquisition of land by public agencies in advance of urban expansion.136 The land is later released for
development in alignment with regional or local development plans and land use demands. Land banking offers public
entities the authority to manage land as it sees fit by allocating land to address particular needs e.g public/open spaces,
housing etc. In some cases, land banking involves acquisition of vacant or blighted property, which are then rehabilitated
and returned to private ownership.
Inclusive Zoning (IZ)
Inclusive zoning allows local governments to require private developers to earmark affordable housing units in new residential
developments. Municipalities offer developers several incentives to encourage them to comply with such requirements.137
131
UN HABITAT (2012), The Community Land Trusts: Affordable Access to Land and Housing.
132
World Bank, (2011), MEMO TO THE MAYOR, Improving Access to Urban Land for All Residents: Fulfilling the Promise.
133
World Bank, (2011), MEMO TO THE MAYOR, Improving Access to Urban Land for All Residents: Fulfilling the Promise.
134
World Bank, (2011), MEMO TO THE MAYOR, Improving Access to Urban Land for All Residents: Fulfilling the Promise.
135
World Bank, (2011), MEMO TO THE MAYOR, Improving Access to Urban Land for All Residents: Fulfilling the Promise.
136
Seymour, Joseph J., (1976). "Land Banking as a Redevelopment Tool for the City of Providence".
137
Tang. I & McIver C. 2019, The Ins and Outs of Inclusionary Zoning.
50 | Reconsidering Sites and Services: A Global Review
Annexes
Comparisons of Different Land Models & Their Application to Sites and Services
Model Community Guided Land Land Pooling/ Transfer of Land sharing Land Banking Inclusive Zoning
Land Trust Development Readjustment Development
rights
Key Actors Communities, Municipalities, Land Municipalities, Land Municipalities, Communities/ Municipalities, Municipalities,
NGOs, Govt Owners, Infrastructure Owners Private residents, Land other Govt Private developers
Agencies & Service providers developers owners, NGOs Agencies
Regions Practiced UK and USA, Bangkok and Cairo, Japan, Republic of Brazil, India USA, Canada USA, Canada
Kenya and Guinea, Indonesia and Korea, Taiwan, China,
Bolivia Ecuador Southeast and South
Asia
Impacts of Land, Housing & Urban Development (Yes, No, May be)
Increases supply on urban/rural Periphery Yes Yes Yes Yes No Yes Yes
Increases supply in inner city May be No May be Yes No May be May be
Directs future development No Yes Yes Yes No Yes No
Supports incremental housing Yes Yes Yes No Yes May be N/A
Promotes PPP May be May be Yes Yes Yes Yes Yes
Controls Sprawl No Yes Yes Yes Yes Yes No
Ease of Implementation (Easy, Moderate, Hard)
Legal Complexity Hard Easy Moderate Hard Hard Moderate Moderate
Administrative ease Hard Moderate Moderate Hard Hard Easy Moderate
Financial Costs
To municipality Low High Moderate Low Low High Low
To Communities High Low Low Low Moderate Low Low
To Private sector Low High Moderate High High Low Moderate
Political Support (Support, Oppose, Neutral)
Local government
Dep’t of Public Works Neutral Support Support Oppose Oppose Support Support
Dep’t Housing & Community Dev’t Neutral Oppose Support Support Support Support Support
Community
NGOs &Residents Support Support Oppose Support Support Support Support
Nearby residents Oppose Oppose Support Oppose Neutral Support Oppose
Landlords Oppose Oppose Support Oppose Support N/A Oppose
Private Sector
Developers Neutral Support Support Oppose Support Support Oppose
Business Community Neutral Neutral Support Oppose Oppose Support Oppose
Application to Sites & Services (Yes, No, May be)
Land provision Yes Yes Yes Yes Yes Yes Yes
Incremental Housing Yes May be May be May be Yes Yes No
Community organization Yes No Optional No Yes Optional No
NGO participation Yes Optional No No Yes Optional No
Private sector participation Optional/May be Optional Optional Yes Optional Yes Yes
Government Involvement Yes, mandatory? Yes Yes Yes Yes Yes Yes
Source of Financing Community, Public agencies, land Land owners, public Municipalities, Communities Municipalities Private sector,
NGOs owners agencies private Land owners public agencies
developers
Reconsidering Sites and Services: A Global Review | 51
Annexes
Annex 3: Case Study Projects
Basic Project Information for Select Case Studies
Project Country Project Description & Key Beneficia- Project Cost Approval Closing Date Time Setbacks Success
Name Features ries Cost in Overrun Date Overrun Indicators
USD $
millions
Sites and Senegal 400 ha of sites and services 20,000 8.00 10% 6/22/1972 30/12/1981 4 years High design standards Redesign r of the
Services including community facilities unaffordable to target project which
Project in Dakar, providing 14,000 plots groups; delays in service includes construction
(01) for 140,000 people and 60 ha of provision making area loans and the use
serviced sites in the secondary inhabitable for lengthy of project-approved
center of Thias, providing 1,200 periods; inflation raising small contractors, has
plots for 12,000 people costs of construction; long significantly increased
Key Features: infrastructure distance of site from city the rate of house
provision – water, power, roads; centre making progressive construction
social facilities; commercial and construction difficult for
small scale industrial, recreation beneficiaries: delays in
and cultural facilities; technical land acquisition
assistance
Sites and El Salvador a) 7,000 lots: serviced with National, 8.50 (cost 7/2/1974 5/31/1981 Reduced building
Services water, sewerage, storm water 9 project recovery: standards; use of
Project drainage, paved streets, foot- sites 100% private agency as
paths and optional electricity; costs) implementing agency;
(b) Core unit: approximately community partici-
7,000 sanitary units and 3,500 pation; considerations
basic dwellings. for site locations in
relation to urban core
Key features: serviced lots, core
and truck infrastruc-
units, offsite infrastructure,
ture; employment
construction materials loan,
considerations in proj-
six model housing designs,
ect design; low costs
community facilities, small
achieved through labor
industrial loans, technical
intensive designs,
assistance and training
modest standards and
extensive use of local-
ly-made materials
52 | Reconsidering Sites and Services: A Global Review
Annexes
Basic Project Information for Select Case Studies
Project Country Project Description & Key Beneficia- Project Cost Approval Closing Date Time Setbacks Success
Name Features ries Cost in Overrun Date Overrun Indicators
USD $
millions
Urban De- India Sites and services on about 3 sites 24.0 19.8 3/8/1977 12/31/1982 81% Lengthy land acquisition Use of existing agency
velopment 175 ha, with about 13,500 periods delaying project Madras Metropolitan
Project – serviced residential plots plots implementation; delayed Development
Madras of between about 40m2 and house construction due to Authority (MMDA)
225m2 each and about 21 lack of funds with a track record
ha of serviced land for small of success as coordi-
industry and commercial uses nating agency; Wide
scale of individual
Key Features: core units and components; Multiple
on-site infrastructure including (10) agencies involved
roads, drainage and individual within a citywide
property water supply and framework; Efforts
sewerage connections; made to integrate
commercial and industrial investments: Project
land provision; Provision of designed from a broad
construction materials costing conceptual perspective
approximately Rs. 6,000,00 for that attempted to
self-help completion of core achieve an overall
housing units; construction urban view rather than
of schools and health clinics; a sub-sectoral one at
roads and traffic improvement; the outset; provision
bus transport enhancement; of material loan to
technical assistance complete core housing
units
Urban De- Nigeria Development of about 2,100 N/A 17.8 PCR: 12.7 11/13/1979 06/30/1986 Land acquisition delays; Flexibility in the allo-
velopment new plots on about 120 Overrun key agency staff resig- cation of land tenure
Project hectares of vacant land in the PPAR: nation derailing project documents (with
(01) Makama neighborhood of -23.5 for over a year; lack of the land department
Bauchi town. (Cost Un- trust of implementing giving priority and
Development of about 1850 derrun) agency; inaccurate and exemption to the
new plots on vacant land. unreliable topographical project); mixed income
Key Features: construction of information affecting residents (with the
roads, water supply infrastruc- designs; inexperience poor and rich willing
ture, off-site infrastructure, of executing agencies to live side by side)
provision of loans to low-in- and knowledge of bank
come households, construction processes; high standards;
of social facilities (schools and project capture by civil
health facilities), employment servants and high income
components through small groups; increased imple-
scale industry estate, plots for mentation complexity by
informal enterprise, capacity involving several agencies
building for the executing agen- from federal, state and
cy - Bauchi State Development municipal in project
Board (BSDB) execution
Lusaka Zambia 1,200 plots with “basic” 31,335 20.0 N/A 6/5/1974 12/31/1981 N/A Resistance of lower
Squatter services: pit latrines and access standards; limited council
Upgrading to the standpipe water supply; capacity to operate and
and Sites 3,200 plots with “normal” maintain services and
and services: individual water infrastructure provided;
Services supplies and water borne sewer lack of sanctions of non
Project connections repayment of loans and
services fees
Reconsidering Sites and Services: A Global Review | 53
Annexes
Basic Project Information for Select Case Studies
Project Country Project Description & Key Beneficia- Project Cost Approval Closing Date Time Setbacks Success
Name Features ries Cost in Overrun Date Overrun Indicators
USD $
millions
Rabat Morocco Development of Plots on about % of total 18.0 7.4 02/28/1978 03/31/1984 75% Absence of land titles
Urban De- 12 ha in an area known as popu- compromising financial
velopment “La Butte” and provided with lation: acquisition and foreclo-
Project contractor-built core units Rabat sures and repossessions in
(5%); case of default; ambitions
Meknbs too high for the scope of
(17%) the project; high stan-
and dards; declined economic
Kenitra performance affecting
(14%) subsidies provision
Sites and Brazil Provision of about 41,800 sites 80,000 93.0 N/A 1/23/1979 12/31/1984 N/A High inflation rates that
Services and services units; 19,500 families resulted to decrease in
and embryo, semi-finished and purchasing; Institutional
Low-Cost finished low-cost housing units mistrust
Housing
Project
Lahore Pakistan Development of fully integrated 10,000 16.0 N/A 04/19/1983 12/31/1992 N/A Underestimation of
Urban De- infrastructure facilities in an families project implementation
velopment area of about 225 ha to provide time by discounting social
Project about 10,000 fully serviced issues in project imple-
residential plots, of which about mentation; local agencies’
4,000 were for low-income inexperience with World
beneficiaries, and some 600 Bank projects; difficulties
commercial and industrial units, in land acquisition
with sites for education, health,
religious, cultural and recreation
facilities
National Thailand Sites and Services in Bangkok: Five 29.0 22.0 6/12/1980 12/31/1985 62.5% Use of leasehold tenure Redesigning of subse-
Sites and development of about 3,365 regional systems which slowed quent projects to pro-
Services residential units and 285 cities project uptake: vide complete small
Project commercial shophouse affordable houses led
units on a 100 ha site at Lat more low-income
Krabang, including i) land; households benefiting
(ii) infrastructure; (iii) core
houses with sanitary facilities;
(iv) materials loans for house
completion through self-help;
and (v) health, education and
social facilities. Approximately
4 ha of serviced land were
for commercial and industrial
development.
Sites and Services in the
Regional Cities of Chaing Mai,
Songkhla, Chantaburi, Khon
Kaen and Nakhon Sawan: about
3,000 plots on approx. 50 ha.
54 | Reconsidering Sites and Services: A Global Review
Annexes
Basic Project Information for Select Case Studies
Project Country Project Description & Key Beneficia- Project Cost Approval Closing Date Time Setbacks Success
Name Features ries Cost in Overrun Date Overrun Indicators
USD $
millions
Urban De- Philip- a) Provision of tenure, basic ser- 484560 72.0 41.4% 3/25/1980 12/31/1987 165% Lack of project Densification through
velopment pines vices and home improvement affordability by target building additional
Project loans to low income communi- population with studies floors and reblocking;
(03) ties, benefitting about 160,000 overestimating benefi- Community
persons; (b) provision of critical ciaries ability to afford; involvement e.g the
basic services benefitting about poor project designs that consultation with
300,000 persons; (c) provision underestimated potential barangay
of about 6,140 served plots, household expenses and leadership and
about one-half of which would costs of private services; community groups
be developed by NHA and the delays in land acquisition; that led to the circum-
remaining by private developers inflations; multiple vention of major social
agencies leading to disruptions during the
project delays reblocking process.
Sites and Kenya Site and services: preparation 15373(at 50.0 Total N/A 04/18/1978 12/31/1986 Institutional changes at Provision for rental
Services of about 11,770 serviced plots appraisal) the start project with units/option
Project in five sites; councils losing autonomy
(02) Settlement plots: provision of and financial capacity;
basic infrastructure for about time delays occasioned
2,500 surveyed plots in two by unrealistic appraisals
Project areas in Nairobi and assumptions about
project implementation;
resistance to lower
standards/ use of high
standards leading to
increased costs; omissions
in design and soil and
topography issues
that later led to time
delays; delays and legal
challenges in land acqui-
sition; strained relations
between municipalities
(executing agencies)
and central government/
eventual dissolution of
council in Kisumu and
Nairobi stalling project
; political interference
in plot allocations;
under staffing; limited
counterpart funding
Urban De- India Construction and financing of 13 sites 138.0 N/A January 29, 09/30/1994 4 years
velopment about 85,000 serviced in the 1985 more
- Bombay residential, commercial and Bombay
Project small industrial plots, which i Metro-
(BUDP) nclude community facilities, politan
core housing, and house Region
expansion loans on about 13
sites in the Bombay
Metropolitan Region
Reconsidering Sites and Services: A Global Review | 55
Annexes
Annex 4: Sample Project Designs and Layouts
56 | Reconsidering Sites and Services: A Global Review
Annexes
Reconsidering Sites and Services: A Global Review | 57
Annexes
58 | Reconsidering Sites and Services: A Global Review