" 87972 City Development Strategy (CDS) ~ South Asia Region gov:' Jrinagar CDS Linking Lahore South Asian Cities 0 ludhiana 0 PAKISTAN New Delhi ® NEPAL Kathmandu ®<±) ,4HUTAN Joipur lucknow '<>'lhimphu 0 0 Hyderabad Kanpur I NDI A Ahmadabad Bhopal 0 Indore 0 0 Nagpur 0 ARABIAN 0 Pune SEA Hyderabad 0 BAY OF Chennai BENGAL gangalore (Madras) Coi batore ~ruppur 0 0 0 I 00 200 300 400 500 600 K;l"'"'\'"" / SRI 1~ 2~ k .AikMiles I .~ LANKA ; : .... 90' ·- Progress Report July 2000 Infrastructure Sector Unit South Asia Region The World Bank • • CITY DEVELOPMENT STRATEGY {CDS) SOUTH ASIA REGION PROGRESS REPORT JULY 2000 Infrastructure Sector Unit South Asia Region The World Bank CDS Progress Report Team This report is the outcome of a collaborative process between several CDS Task Managers, advisors and task team members from the World Bank and counterparts from the CDS cities made up of administrators and city managers, politicians, citizens from all walks of life in these cities, consultants, and others. The World Bank's task team included: Hiroaki Suzuki (Prin. Operations Officer - Team Leader), Kwabena Amankwah-Ayeh (Urban Specialist, Task Manager), Hiroaki Kawashima (INFUD), Gladys Stevens (SASIN), BaJa Menon (SASIN) Many other colleagues contributed with advice and guidance, particularly, Jonathan Kamkwalala (Ag. Sector Director, SASIN), Richard Beardmore (SASIN), Kim Cuenco (SASIN), K. Mukundan (SASIN), Alberto Nogales (SASIN), Tashi Tensing (SASIN), Disa Wareepana (UNCHS- Fukuoka). The CDS City Teams are outlined in the CDS- City Update reports for each city. Contents Acknowledgement Message from Mieko Nishimizu, Vice President, South Asia Region, The World Bank Message from Frannie Leautier, Director, Infrastructure Group, The World Bank Message from Jonathan Kamkwalala, Acting Sector Director, Infrastructure Sector Unit South Asia Region, The World Bank PART I 1. Introduction and Aim of the Report 2. Views from the Consultant of the CDS in Dhaka and Khulna (Bangladesh) 3. CDS Progress Report- Dhaka (Bangladesh) · 4. CDS Progress Report- Khulna (Bangladesh) 5. The State of the City CDS Report- Ahmadabad (Gujarat, India) 6. The State of the City CDS Report - Bangalore (Karnataka, India) 7. The State of the City CDS Report- Coimbatore and Tiruppur (Tamil Nadu, India) 8. The state of the City CDS Report- Kathmandu (Nepal) 9. The state of the City CDS Report- Colombo (Sri Lanka) 10. Lessons Learned 11. Conclusions and Recommendations PART II - Annexes: A: MAKING CITIES WORK FOR ALL: Global Action Plan for City Development Strategies B. Kathmandu - City Profile City Development Strategy (CDS), South Asia Region Acknowledgement In January 1999, we launched the CDS activities To Mr. Disa Weerapana of UNCHS and his in South Asia with the cities of Dhaka and colleagues, Mr. Jan Mieeuwissen and Ms. Yumi Khulna in Bangladesh. We are pleased to report Nabeshima for their excellent collaboration m that 8 cities in the South Asia region are preparation of this report. currently implementing the CDS. In India, the State of Tamil Nadu is implementing a state- We would like to thank all the Task Managers wide CDS program involving about 50 cities. and the consultants who are working hard to This South Asia CDS Progress Report has been help our client cities implement CDS and who prepared to take stock of these activities and to have sent the progress report of each city. They summarize the progress made and lessons are Mmes and Messes. Balakrishna Menon learned for future CDS activities. We Parameswaran, Tashi Tenzing, Kwabena acknowledge, with thanks, all the people that Amankwah-Ayeh, Evangeline Kim Cuenca, contributed to produce this report. Richard M. Beardmore, ·Hiroichi Kawashima, Zahed H. Khan, Alberto Nogales, K. Mukundan, First of all, we would like to express our Pushpa Pathak Shizuo Iwata (Aimee), and appreciation to all participating South Asia CDS Mariko Sato (UNCHS Fukuoka). cities, Ahmadabad, Bangalore, Coimbatore, Colombo, Dhaka, Katmandu, Khulna, Peshawar, We wish to thank the task team charged with the Tirupur and the State of Tamil Nadu, India for delivery of this report- Gladys Stevens, ·and their valuable input. particularly Mr. Kwabena Amankwah-Ayeh and Mr. Balakrishna Menon Parameswaran of We would like to thank the Bank management, SASIN who have coordinated the preparation Ms. Mieko Nishimizu, (Vice President, South work. Asia Region), Ms. Frannie Leautier (Director, Infrastructure Group), Jonathan S. Kamkwalala This report will be available at the website of the (Acting Sector Director, SASIN), John W. Flora City Alliance (http:;/wwv, .c itiesall iance.orgl (Urban Anchor) and Mark Hildebrand (Manager cit icsa II iancc/C it icsa II iancehomcpag,c .nst/?Open) of City Alliance Program) who encouraged us to as well as the website of South Asia Region of prepare this progress report and to share their the Bank (http::!\\· bin I 0 I 8. \vorldbank.orgl thoughtful views on the urban development and sar/sa.nsf. We hope that this report will help all CDS in their messages. the cities in the developing countries implement CDS. Hiroaki Suzuki, Principal Operations Officer South Asia Regional CDS Coordinator South Asia, Infrastructure Sector Unit The World Bank City Development Strategy (CDS), South Asia Region Message from Mieko Nishimizu, Vice President South Asia Region, The World Bank c~ntro.l over ~heir ~wn destiny, enrich lives by "To fight poverty with passion and widenmg their honzons, reduce afflictions and professionalism for lasting results. " This, is the shackles of poverty, and improve the very first sentence and the very essence of our Bank's vitality of life. Mission Statement. It has a special place in South Asia, because our Region harbors a lion's We think of development strategy as first share of the world's poor. It is also in South and foremost that which a society would Asia where most children of the world are have developed for itself. We consider it for growing up in poverty. There is no poverty the society -- a living & dynamic strategic alleviation without urban development, and no "framework" that is based on a long-term urban development without poverty alleviation. vision of the society's own; that identifies Increasingly at the global level, forces including structural barriers for its transformation; that rural-urban, urban-urban and intra as well as selects those who can serve as catalysts for inter-city migration have moved and dislodged - change; and that is founded on a poverty to city slums and peri-urban participatory process amongst the people to neighborhoods. South Asian cities have not reach down deeply into the society in escaped these movements. The nucleus of the creating, revising, adapting and realizing poverty in South Asia continues to shift from that vision. villages to towns to cities to mega-cities. We. think of country. sector. or city The UN predicts that by 2025, there will be 281 assistance strategy as our banking business cities that will have populations of more than strategy that maps into such a living & one million. About 118 of those million-people dynamic "framework". cities will be in Asia, as will be 7 of the 12 mega-cities of the world with populations of Func.tionally, South Asian cities are facing over I 0 million. The quality of governance, multi-sectoral and multi-dimensional problems management and administration is the key to that must be analyzed, prioritized and addressed South Asia's march towards livable urban collectively to stimulate and sustain balanced settlements, and poverty alleviation. growth and to improve the quality of life. The problems are complex and require solutions that The CDS process embodies important are 'home-grown', informed by international philosophies we share in the South Asia Region knowledge of workable and sustainable of the World Bank: . approaches and solutions. The process of CDS in the South Asia context has been defined by We think of development process as an the cities themselves. Therefore, the ever-lasting process of change, wherein manifestation of success in each will be unique. people of a society choose to gain more This approach to development work is City Development Strategy (CDS), South Asia Region refreshingly people-centered, which we believe • In so doing, listens, facilitates, will lead to sustainable and quality urban motivates, mobilizes, and empowers governance and management solutions. clients at the grass roots; We have learned from experience that we cannot • Learns from its clients, enriching other act alone in asststmg clients in their member countries and us in turn, development of successful cities. Through the through value intellectual rigorous coordination efforts of the CDS processes in analyses and honestly challenge South Asia, the entire development community orthodoxy to seek better solutions than in the Region are working together to develop known; shared policies and institutional approaches that offer sustainable solutions. • Makes it a Bank whose clients want our service because they seek our technical The on going South Asia CDS processes have excellence; been spearheaded by city managers or administrators and their citizens. The World • Instills the important value to every staff Bank has served this process by being an to appreciate that it is not the projects outward-looking facilitator in our shared quest- we finance but the knowledge we impart bringing knowledge and information, and in associated assistance process that keeping the intellectual basis of the work global. lasts; and therefore My colleagues have offered constructive ideas and support for problem solving in this leaning • Intermediates knowledge first, and and sharing process. We trust that insights money last. gained by all participants in the processes will continue to grow over time, and remain This report highlights the discussion, processes, invaluable to all of us. lessons learned in examining innovative options for participation by all stakeholders in seeking I have shared in the excitement and the new social and economic contracts between civil enthusiasm, with which my colleagues have society and urban governments. The reported on their partners' determination to build improvement in relationships is geared towards lasting institutions. I am proud that we are now providing better services for urban poor and far more connected with the people we serve in directly contributing to urban poverty South Asia, turning urban governance in the alleviation. The report attempts to capture the Region into a new innovation prospect. I am new wave of enthusiasm and entrepreneurial also excited that we are pushing out the frontier inclination to city management that is more of our knowledge and experience and transparent and responsive to citizens as welcoming change as challenge. Through the "customers". participatory change process of CDS, we have come closer to a shared vision of the World I hope we can set our eyes on jump-starting a Bank that: dynamic process of social transformation, rooted firmly in empowerment and social mobilization • Assists its clients to conceive, prepare, at the grass roots in rural and urban and implement development policies, communities. Stable societies are ones that have programs and projects that are their own discovered positive powers of individual and --not ours; collective empowerment -- therein lies a link between political stability and poverty City Development Strategy (CDS), South Asia Region alleviation, in rural and increasingly in urban hard work of many here and afar deliberating on societies. We are working closely with our these issues can contribute to alleviating poverty partners striving to fight against poverty in our from the world in our generation. Let us strive cities, and in the process bring urban governance in our efforts to fight poverty with passion in and management closer to the door of the most South Asia. I wish you a successful interaction marginalized in society. The conviction and at this conference. City Development Strategy (CDS), South Asia Region Message From Frannie Leautier, Director Infrastructure Group, The World Bank The 21st Century promises to be the Urban of rural spaces to expanding city size growth is Centuz. The momentum that got underway in further emphasized by economic factors and the the 20 Century has positioned cities to be home cost of doing business. In particular, there is to additional 2 billion people in the next 25 now a need to include peri-urban, low-income years. The trend of poverty moving to cities, if neighbor-hoods, slums and other such spaces not reversed, will place nearly one billion city previously neglected in city strategies. Few residents at risk of never breaking away from social scientists dispute the rich diversity in poverty. The move to secure better quality of cultural and economic assets of nations that life, good governance and efficient management, often finds concentration in cities. What secure living spaces, and to improve efficiency globalization has indirectly contributed to urban and productivity of cities is growing. At the tum asset rearrangement is the transfer of power to of the 21 51 Century, the absolute power behind act on these resources from the nation state to networked infrastructures constructed as the cities mostly by dynamics of political and 'territorial adapters' (Dupuy, 1995) that economic realities but also by deliberate invisibly brought the expanding modem institutional shifts. metropolis, indeed the modem nation and global economic system, into dynamic articulation has The challenge of all these to urban governance been eroded almost to exhaustion by has been remarkable. The keys to making cities globalization. work successfully lie in the ability of cities to harness and capitalize on the opportunities now Globalization has been accompanied by shifts in prevailing in private-public partnerships and governance and political relationships between citizen participation in city management. The national governments and city managers. The Bank's overall urban strategy seeks to help multiplicity of things that seem to have peaked national and local governments build their today - globalization, deregulation in trade, capacity to (a) improve the lives of the urban decentralization, downward and outward transfer poor, (b) manage urban growth, and (c) improve of power to the institutions closer to the people, city efficiency, thereby contributing to national and the level of growth and development of goals of poverty reduction and sustainable urban agglomerations, are umque. development. The strategy also calls for Simultaneously, the edge of city boundaries national urban strategies to be developed have been blurred by movements that have alongside City Development Strategy (CDS). increasingly shaped the relationships between CDS has become one of the more visible and what was traditionally called the city and the effective Bank operational instruments adopted intervening spaces that have formed as interlay in the Bank urban strategy (together with other between city and rural areas. The previously instruments such as national urban strategy and clear distinction between a city and its rural capacity building), to concretize the recognition hinterland is not so clear anymore. The need to the Bank now places on urban development. generate and entrench cooperation and inclusion CDS attempts to mediate the spaces and City Development Strategy (CDS), South Asia Region processes that enhance the ability of cities to nature and size of the challenge. However, to continue to function as the engine of growth succeed, the Alliance has to expand and through high productivity and efficiency continue to attract a broader constituency of outcomes for nations. development agencies. CDS is an instrument that encourages cities to Four pillars (mainly from the precepts of formulate their visions and goals in a sustainable cities) form the Bank Urban participatory manner involving key stakeholders. Strategy. The aim is to help countries realize Under CDS the cities and their stakeholders development benefits of urban growth through analyze their major issues, constraints and cities which are (i) 'livable' with equitable potentials. Based on the analysis (among other opportunity for all residents to participate in the efforts), cities develop strategic options that economic and political life of the city (e.g. enhance their opportunities to materialize their access to essential services, secure tenure). In visions and goals. The blue prints include the order to be livable, cities must be (ii) cities' long term investment program and the 'competitive '. The challenge for cities to institutional and capacity development program. become and remain competitive is for them to Sometimes, the regional development program use their comparative advantage through making forms a part of cities' strategies when the growth their firms and households more productive. of the cities depends on the regional Cities must also develop spatially efficient development. CDS contribute to improving a markets for infrastructure (especially transport), city's governance through participation of all land/real estate, labor, and capital as well as stakeholders. For example, the selection of broad-based growth of employment, including investment projects, which used to be decided informal sector. Competitiveness also means by a few politicians and bureaucrats, now gets (iii) 'well-governed and managed cities' that are decided rationally and in a transparent manner, accountable to their citizens and foster leading to reduction of potential opportunities transparent local governance. They are for corruption. Carefully designed, CDS responsive to the poor, with broad community provides the impetus to bringing in the voices of participation in their system of management, and the socially weak segments of society (such as clear and rational sharing of responsibilities with women, informal sectors operators, slum higher levels of government and with the private dwellers, and others). sector. The World Bank and the United Nations Centre Competitive cities are (iv) "bankable". It for Human Settlements (Habitat) have joined implies that the cities are financially sound - forces to launch the 'Cities Alliance' which is local governments have resources (user charges, intended to be a global partnership to help cities tax and transfers) appropriate to their meet the urban challenges of the 21st century, to expenditure responsibilities and greater financial forge a new approach to urban development and autonomy, and good financial management to support initiatives of the poor. The CDS is practices to build creditworthiness. The Bank's precisely one of the two key instruments that the challenge in this strategy is to achieve greater Cities Alliance uses to promote inclusive and impact by taking a holistic approach - the city as participatory approaches to urban development integral unit of analysis and assistance (within and sound urban governance. Other national framework), committing to scaling-up development agencies have joined to expand the partnership to a scale commensurate with the City Development Strategy (CDS), South Asia Region and reinvesting in internal urban knowledge reconstruction. This CDS conference is and capacity through working through important to us in the Bank as one of the main partnerships. vehicles for frank knowledge sharing among partners working on similar issues and for The Bank is earnestly pursuing these issues building alliances. We believe that the while continuing to strengthen core urban synergies, relationships and trust built between development products and services in municipal the participants will lead to even better management, municipal development funds, coordination and visible outcomes of our housing and real estate advisory services, urban projects m our client countries. environment, and post-conflict/disaster City Development Strategy (CDS), South Asia Region Message from Jonathan Kamkwalala Acting Sector Director, Infrastructure Sector Unit South Asia Region, The World Bank City Development Strategy (CDS) exercises in Although the share of urban population is South Asia have increased our understanding of relatively low, the vast numbers of urban the complexities of urban development in the dwellers and the rapid urban population growth region, as well as highlighting the lack of rates in South Asia underscore the importance sufficient dialogue between city managers (our of 'urban', both as a sector and as an socio- partners and clients) and citizens in addressing economic region. As urbanization proceeds at a urban problems. Based on some of the results rapid rate, increasingly, cities and towns in of the early CDS exercises, there are South Asia are becoming the engines of perceptible shifts whereby some of the CDS economic growth. Nearly 50 per cent of the cities have already started to employ innovative region's GDP is generated in urban areas. This and flexible approaches and mechanisms to is expected to increase in coming years. involve their clients in decisions that were However, widespread disparities in incomes, hitherto made by city managers on behalf of low levels of human development, poor citizens. governance, weak institutional and financial capacities and large-scale deficiencies in urban Shifts in Urban Management services are retarding the livability and competitiveness of cities in South Asia. As countries worldwide move towards greater Externalities arising from proliferation of decentralization, the South Asia region is no slums, rising air and water pollution, and exception. Already, there are signs that new growing crime and violence are hindering local democracy has given urban local economic growth and threatening to undermine governments a greater responsibility for the gains of urbanization. As cities in the region management and decision-making in South become well linked to the global economy, Asia. The downside of this shift is the dearth of their livability, bankability and competitiveness technical, financial and managerial capacity will determine the future of economic growth available to deal effectively with the emerging and environmental sustainability of the region. challenges facing South Asia cities. It is also increasingly becoming clear that a shift in the After nearly a decade of very limited traditional manufacturing base of South Asia investment and involvement in the urban sector, cities towards a service and knowledge based the Bank is now taking a more active role in industry is occurring. The need for innovative urban operations in the region. This is reflected policies to attract and retain employment in in the increased dialogue with clients on urban cities requires appropriate tools and methods of issues, greater share of resources allocation to analysis of urban processes to provide a firm urban programs, and enhanced number of urban basis for policy formulation. Strategic planning operations in the client countries. The focus of as conveyed by CDS exercises in cities is the Bank is now on the two most pressing changing the traditional methods of urban issues concerning urban sector in the region - governance, replacing master plans with overwhelming urban poverty and weak urban strategic plans. Viewed as an urban version of governance. Over 3 I per cent of the urban a company's corporate strategy, CDS in South population in the region live in poverty. Lack of Asia cities is providing city managers with new appropriate governance structures along with tools to move their cities towards efficiency in poor institutional and financial capacities are allocation of scarce resources. It is also reducing development effectiveness. focusing on expanding productivity and most importantly bringing previously unheard voices City Development Strategy (CDS), South Asia Region (of the poor, women, slum dwellers, others) to competing alternatives, identifying finding sustainable solutions to city problems. stakeholder roles, and developing action and investment plans with a realistic The Process of CDS in South Asia financing framework. The CDS process in South Asia is still • Implementation of demonstration projects, evolving, and no conclusions have emerged yet resource mobilization by stakeholders and on its future direction. However, some donor negotiations attempt to concretize the commitment by city managers to what needs to vision of the city and its citizens. be done to move closer to confronting major social and economic difficulties is already • A regeneration phase during which projects emerging in cities like Dhaka, Khulna, and undertaken and their outcomes are Coimbatore, where CDS exercises have been measured gauge what worked, what did not, completed, as well as those in Ahmadabad, what needs to be changed, what has Bangalore, Peshawar, Colombo, Katmandu and changed in the interim, and whether the city Tirupur where these are in progress. The is in the process of reaching its vision. processes occurring all bear some semblance of the following: Some of the more concrete products that have emerged out of the South Asia CDS processes • A preparatory mission is undertaken in a include a consensus vision statement for each of city that attempts to identify key partners, the CDS cities. These vision statements are obtain base-line information to guide an owned by the city administrators and a broad understanding of the city and in the process majority of the cities' stakeholders who map out where the city stands at a particular recognize the comparative strengths and point in time, begins most of the CDS advantages in the their regional context. What processes in SAR. Alongside the various needs to be achieved in the next steps includes, steps, teams are formed to undertake for all cities, specifically agreed strategy research which results are input in the framework for poverty reduction alongside process and provide needed understanding economic growth and social responsibility for ofthe field. the city. This calls for action areas to be identified and parceled out as assigned roles for • A well-entrenched participatory approach is each stakeholder group. There will be need to employed to seek input into a shared vision experiment with implementation and learning of the city and where the city wants to be, of some small sized projects in each city to iron building on consensus basis. out implementation difficulties as well as commit internal resources and commitment of • At stakeholder group meetings, a formal the political and private enterprises/machinery political commitment, agreed vision and a to sustain the CDS process. Only then should strategic framework is arrived are debated, donors look at an overall framework for each fashioned and agreed upon. city and make a contribution to helping each city advance the CDS process. • The strategy formulation session involves a good measure of generating alternatives, evaluating and making choices between City Development Strategy (CDS), South Asia Region - 1- 1. Introduction and Aim of the Report This report purports to summarize the progress centered CDS processes. In Chapter four, these of the various CDS exercises being undertaken reports on the individual cities, dubbed 'the state in the South Asia Region as input to the Asian of the cities report', are discussed in detail and City Development Strategy Fukuoka so are the differences in the approaches and Conference, July 11-13, 2000. The report aims methodologies used to undertake CDS ~n the to share information and knowledge on the South Asia Cities. This was necessary due to various approaches, methodologies, challenges the level of interest, commitment, resources and strides being made in a number of cities availability and other factors, which contributed across the South Asia Region, in the effort to to make CDS in each of the cities unique. undertake CDS. Most of the CDS efforts remain Some conclusions out of the lessons learned "work-in-progress". Therefore most of the 'state from the cities across the Region are pulled of the city reports' below happen to be sketchy together in Chapter Six. (Accomplishments are yet to be fully realized and evaluated and so are the challenges, possible The Basis for City Development Strategies - An gains, lessons to be learned - save those already Introduction learned and feeding into the process, etc.) The report also sets out to benefit from the New Approach to Cities in an Urbanizing experience and knowledge of other similar World: efforts around the world. All comments and ideas on how some of the cases in specific cities The 21 51 century will witness massive and rapid could be improved are welcome and will be urbanization, with two billion new residents in viewed with much interest. cities of the developing world in the next 25 years. This process, though stimulated by This chapter attempts to outline the CDS process economic development, has also led to sharp as envisaged by the coalitions of interests divisions in growth between cities and among cooperating on the CDS exercise. It lays out the people. The 21 51 century will also witness rationale, the purpose, hopes and aspirations of increased urbanization of poverty. Nearly one the CDS 'movement' in the Region and brings billion urban residents in the cities of the out some of the gains that could be made by developing world are likely to be poor if current cities that are truly committed and pursues this trends continue. The challenge for the cities exercise honestly. Chapter three captures the is to improve equity, efficiency, productivity, state of the Region's economy and the major and governance in order to provide sustainable changes evolving in the relationships between livelihoods, safe and secure living environments, central and local governments. It maps out the and a better quality of life for the urban poor. history, coverage, issues, and major findings of The City Development Strategy is one tool the CDS efforts in cities across the Region and which, along with slum upgrading, is being sets the stage to get into more specific city sponsored by members of the Cities Alliance to achieve sustainable urban development. City Development Strategy (CDS), South Asia Region - 2- This Action Plan: will be needed to put enabling conditions and the norms of good governance into place so that This plan is a call to mobilize the global urban cities can respond to the challenges before them. community to take part in developing a new The norms of good urban governance approach to urban development, starting with characterized by sustainability, decentralization, City Development Strategies to be financed in equity, efficiency, transparency and nearly I 00 cities, affecting 200 million residents accountability, CIVIC engagement and and I 00 million poor over the next five years. citizenship, and security are mutually The effort will have impact far beyond reinforcing. The participation of all the key numerical totals. Cities Alliance and the CDS stakeholders is essential for this process. are intended to set new standards and develop Participatory governance is the only sure means new tools of participatory decision-making at of achieving an authentic vision of the future the city level to reach self-sustaining capacity in and the only sure way to achieve improvements cities and nations, so that cities might reach an in economic and social status for all citizens. entirely new development framework in this The City Development Strategy promoted by the urban century. Cities Alliance is specifically designed to provide such a framework. Decentralization: Value Added: This challenge for cities is due to the momentous change in global relationships of With improved governance and strategic exchange, coupled with the progressive shift in planning, cities will attain new levels of the balance of power between cities and nation efficiency and productivity. Tens of trillions of states. The urban transition that will produce 50 dollars will be needed for investments in cities million-sized cities in the next 25 years is not to improve levels of service of the existing merely a matter of numerical change. It is also population, especially the poor, as well as to an historical shift in political and social accommodate the urban dwellers of the future. relationships between cities and nations. The Past experience has shown that only a small rich diversity in cultural and economic assets of fraction of these investment needs is likely to nations are often concentrated in cities, and the come only from donor resources. Cities will power to act on these resources is gradually have to strengthen their financial resource base, being transferred to cities, either by deliberate improve the operation and maintenance of institutional shifts through decentralization existing infrastructure and develop its credit- policies or by political and economic reality. worthiness to acces~ domestic and international funds. Governance in Cities: City Development Strategies are intended to Improved urban governance is one of the most help cities improve their governance and make important keys to success in making cities work, new strides in qualitative and quantitative not only to address the challenge of urban improvements in service delivery. Cities will be poverty, but also to harness the opportunities able to take action to mitigate crises; to plan that globalization provides. With proactively, to set out the goals and operational decentralization, the task of marshalling civic activities considered important by all capacity to prepare development strategies falls stakeholders, and to achieve a smoother increasingly to city government. Much work transition into future growth. Cities that are City Development Strategy (CDS), South Asia Region - 3- governed and managed well can expect to elements for sustainability in urban improve the efficiency in scarce resource development: allocation. Many cities can also improve efficiency of administration and service, as has • Good urban governance; as characterized by been shown in dozens of cities around the world. the norms in the campaign • Fiscal balances, i.e., cities that are credit- A second area of value added is for cities that worthy; plan their strategic moves over decades can • Livability, especially for the urban poor in expect to waste fewer resources on "catching environmental, social, and economic terms; up" with rapid growth and poorly-sited facilities • Competitiveness, i.e., the ability to improve and services. Many cities have shown that a productivity. well-managed growth can extend services to low income populations in a way, which allows Specific outcomes expected from the graduation to higher standards of service in participatory CDS process will vary in accordance with public and private capacity to accordance to the specific context, but are likely pay. to include: A third area is in expanded productivity, for both • a collective vtston for the city that is the organized and informal private sector as well responsive to its comparative strengths and as the public arena. Cities that understand their advantages in the national and regional competitive position, and move wisely and context, that is "owned" by the city and all quickly to capitalize on their comparative the stakeholders; advantage, can expect worthwhile economic returns .. • an agreed strategic framework for growth and poverty reduction and identified action Content and Process of CDS: areas with assigned roles for each stakeholder group; The City Development Strategy is seen as an instrument to develop a civic capacity for • demonstration and pilot activities to be collective vision and action. City Development carried out using internal resources; Strategies are produced using participatory techniques and processes proven over decades of • increased capacity in the city to conduct assistance; for instance, stakeholder buy-in and strategic development planning; counterpart contributions, and fully informed citizenry. In addition, CDS process brings to • an investment framework with sources of life at the city level, the comprehensive finance, including donor support; and approach, including the coordination of donor assistance, which is at the center of comprehensive development framework. • at the national or regional level through associations of local governments and other City Development Strategies address at least institutions, to spread this capacity to other four broad themes, two may be thought of as cities. establishing enabling conditions for growth and development and the second two as outcomes. Taken together they are seen as the fundamental City Development Strategy (CDS), South Asia Region - 4- CDS Action Plan: The first two years all partners of the Cities Alliance will be on a learning curve. This will In the next five years, the Cities Alliance CDS require more detailed analysis of demand for activities will be undertaken in nearly I 00 cities work in each of the world's major regions, and affecting the lives of over 200 million urban entail developing the tools, including analytical residents. CDS costs can vary greatly-say frameworks, a guidebook, and monitoring between US$200 thousand and US$1 million per indicators. Therefore in the first two years of the city-and their leveraging ratio is equally Cities Alliance, 7 to I 0 cities will be taken up variable. But the measure of success of the CDS each year. In the subsequent years, I 0 to IS Action Plan is not only the numerical impact in cities will be sponsored each year. Taken cities helped or lives improved, although these together, these CDS would generate investment changes are important. Rather, the measure of at local level of around US$400 million by success is an impact on changes in Stakeholders, sub-national and national govern- institutional behaviors. At the global level, ments, bilateral and multilateral agencies. It is this would mean setting a new standard of expected that this will affect the lives of 200 practice for city development strategies. By the million urban residents and about I 00 million close ofthe decade, the CDS will have become a poor. standard approach in the practice of urban development, one that is more easily achieved Strategies in cities will differ greatly in content, and more effectively implemented than the scope, and focus. However, in most cities traditional urban master plan, the obsolete several themes will be central, governance, cousin of the CDS. poverty, economic growth and sustainability. In selected cities, an effort will combine both City Within specific countries, the CDS should have Development Strategies and Slum Upgrading established a link between the development of efforts. urbanized regions on the one hand, and on the other, conceptual and empirical ties to the The Action Plan builds on the comprehensive national decentralization and development approaches now being adopted in major agenda. The CDS should help national and city development institutions and extends the leaders to understand both the opportunities and programmatic efforts of agencies in the UN bottlenecks in productivity and growth. The system and bilateral donors. Moreover, the Plan Cities Alliance will produce an analytical includes a built in learning process. Already, framework and monitoring indicators with more than 30 cases are underway and form the which to measure these outcomes. sample of pilot experiences from which much has already been learned. City Development Strategy (CDS), South Asia Region - 5- 2. Views from the Consultant on the CDS in Dhaka and Khulna properly allocated. Equipment and software to Current Situation facing Dhaka and Khulna support effective management are far from Dhaka and Khulna authorities are extremely adequate. The current city/municipal budget can constrained to manage the cities due to many hardly cover development projects, thus they external and internal factors. Both are large rely heavily on overseas development agencies urban areas with low per capita GOP and fast- and central government fund transfers. Because growing population including a large number of of these, Dhaka and Khulna are unable to urban poor. The expansion of the urban area is restricted by limited availability of flood-free formulate and own any effective corporate plans. land and the existence of institutional barriers that prevent the mobilization of available lands Overview of the CDS Exercise in the market. Population increase far surpasses the pace of supply of needed infrastructure and The CDS was introduced under the above services. Uncoordinated allocation of scarce circumstances. It did not come as a surprise resources and lack of proper operation and then when the objective and intentions of the maintenance of existing facilities further CDS were not fully appreciated especially by aggravate the situation. External factors, such as Dhaka, a mega city whose urban problems and calamities, political strife, law and order complex management institutions are more situation, have also been constant threats to the serious than those of Khulna. Despite the initial cities' development. The problems and issues difficulties though, there has been considerable identified in the city workshops are in fact so progress in the study itself conducted between extensive and serious that a sense of resignation February 1999 and June 2000, as well as in the prevails among many people across society, ownership of the CDS. Some marked particularly since there is no adequate differences among the three city workshops are mechanism to allow them, especially the poor in terms of the composition of participants, and vulnerable people, to express their concerns interaction during discussions among and participate in the processes of planning, participants and commitment of mayors and implementation and decision-making. other key stakeholders to the CDS. The administrative framework to manage the In the CDS study process, the following urban areas is extremely fragmented. This is observations were made which would allow the particularly evident in Dhaka. Highly centrali- cities to further develop their own CDS: zed but uncoordinated functions among urban sub-sector agencies make it difficult for mayors • The people's willingness, including the to address the needs of city dwellers. Qualified poor, to participate in the process of urban human resource is scarce and not development is strong, but they had hardly City Development Strategy (CDS). South Asia Region -6- been given proper opportunities. The will of respectively, each represented by an elected the elected mayors to coordinate is also ward commissioner. strong. Sub-sector agencies recognize the need for coordination, too. Positive • Whereas the willingness and basic motivation of key players in urban institutions for coordination exist, the development exists, and there are a number capacity to enhance and manage the of successful undertakings in sub-sector available mechanism and maximize the development by NGOs, the private sector opportunities is limited. The capacity of and communities themselves. The initial planning cells of core agencies, such as success of the CDS is largely attributed to DCC and RAJUK (Metropolitan the fact that the people or a wider spectrum Development Authority) in Dhaka and KCC of stakeholders was placed in the center of and KDA in Khulna, are severely the process, which was completely missing constrained by lack of expertise, support in the past. facilities and, especially, the motivation to exercise their duties, largely due to the • There are existing institutional mechanisms absence of political commitment and that can be mobilized to facilitate institutional incentives. coordination and better management of urban issues. Dhaka has a Coordination Toward the Next Phase of the CDS Committee (DCC) established in 1996, which is co-convened by the mayor of DCC Although the commitment of the mayors and the and an additional coordination board known willingness of stakeholders to participate are as the Greater Dhaka Transport Planning more important, they are but preconditions to an and Coordination Board (GDTPCB) improved urban management. The momentum established for the urban transport sector gained from this short exercise is only the first with the Bank's assistance. For Khulna, step to develop a truly needed CDS for Dhaka coordination alone between the two core and Khulna. The consultants' view on the next agencies, KCC and KDA, would steps includes the following: considerably facilitate the effective management of the urban sector. This • The CDS should be provided with a more proves that basic institutional framework for solid institutional basis to make it function better coordination exists, which have not as a core of urban planning and been fully tapped. The current ward system management. Without institutionalization, can also be used to further decentralize the participatory process, which has to be urban management and administration at shared by all stakeholders, will not be local level to directly address local issues guaranteed, and the process may be distorted involving communities. The DCC and KCC by excessive political intervention. It should are composed of I 00 and 31 wards, be clear that the owner of the CDS is the City Development Strategy (CDS), South Asia Region - 7- people, city authorities are the facilitators planning cell to promote and develop the and the mayors are the moderators. CDS and strengthen the interagency networking, (3) providing immediate • Aside from the DCC and KCC, other attention to improve the municipal financial pourashavas (municipalities) that are key system and its capacity (4) promoting players in the metropolitan areas should own institutional reform to amend various the CDS too for the elected leaders to be distortions in the market and to establishing accountable and responsible for their people. an improved framework to encourage Effective networking between the mother private sector participation in urban CDS and satellite CDS is the prerequisite. development and management, and (5) leveraging the experiences and capabilities • The first step for the CDS to be successful is of NGOs and community based to identify urban development issues and organizations (CBOs). develop visions, sub-sector objectives and strategies through a participatory process in Role of Donors a holistic manner. The second step involves defining and translating the strategies into In view of the complexity of the tasks facing concrete projects and actions without losing Dhaka and Khulna, donors are expected to play its totality. This step requires much more an extensive role in helping the cities. These, expertise, resources, participation of among others, include: stakeholders and the capability to manage the process. The third step is the • Making a long-term commitment to provide implementation and monitoring of projects support to improve and strengthen the CDS and actions. These processes require through a human resource development transparency and accountability. program, modernization of facilities and technology transfer, • Although establishing the whole process of the CDS is still a long way before it is • Helping Dhaka and Khulna Improve completed, a number of key issues were institutional linkages and policy implication identified through the CDS exercise which with the national framework to obtain more can be commonly applied on the autonomy over urban sector management. implementation of the identified strategies. These include: ( 1) institutionalization of the • Strengthening the coordination among donors, particularly in sharing strategies on CDS process, (2) establishing a core institutional development aspects. City Development Strategy (CDS). South Asia Region - 8- 3. CDS Progress Report for Dhaka (Bangladesh) Key Statistics and Characteristics of City: poor access to women and high environmental pollution. Dhaka is the capital of Bangladesh, and also its largest city. The population of Dhaka City • High degree of unemployment and under- employment · Corporation (DCC) is 6.9 million and that of metropolitan area is 9.1 million, as of 1995. The • Increasing environmental degradation; with respective areas are 360 sq. km. and 1528 sq. high levels of air and water pollution. km. The share of Dhaka metropolitan area's population to the overall national urban • Absence of sufficient parks, open spaces and other recreational areas. population was 30 per cent and to that of the country was around 5.8 per cent in 1991. The • Vulnerability to frequent flooding leading to population of Metropolitan Dhaka is expected to loss of life, property and economic reach 16 million by 2015. The gross population productivity. densities are very high, particularly within the city corporation area, at about 170 persons/ha. • Poor health care facilities . Besides being the administrative capital, Dhaka • High incidence of violence and crime, with is also the largest city of Bangladesh, and its poor women rendered particularly social, cultural, economic and commercial vulnerable. capital. In terms of administration, management • Lack of sufficient opportunities for skill and development, around 19 ministries and 40 upgradation and social capital development. government organizations are involved in the planning and development of Dhaka. • Serious governance crisis with weak leadership, high degree of political Major Issues volatility, very weak institutional and • Burgeoning numbers of urban poor, financial capac1t1es, fragmented and evidenced by increasing slums and squatter overlapping institutional mandates, lack of settlements. accountability and corruption and low level of skilled staff. • Limited availability of flood-free, serviced land and an institutional and regulatory CDS Process in Dhaka regime that discourages proper land development, leading to high land prices, CDS for Dhaka commenced in February, 1999 untenable levels of densification and and completed in June 2000. During this period haphazard growth. a groups of consultants worked in close • Low quality of existing infrastructure coordination with the officials of DCC and services and large backlogs, leading to poor representatives of other agencies such as the livability and reduced competitiveness. Capital Development Authority (RAJUK). The focus of the process has been on assessing keys • Serious transport congestion leading to huge issues and constraints, developing a vision and delays, lack of any form of mass transit, identifying strategies and programs to realize City Development Strategy (CDS). South Asia Region - 9- that VISion by involving a wide range of Besides this, a small pilot project to improve air stakeholders. The problems of Dhaka are huge quality within Dhaka is also currently active. and cannot be addressed overnight. But the CDS process has sought synergies with these as objective of the CDS process was provide the well as other projects by putting in perspective much-needed initial framework for the the development objectives of these projects comprehensive urban development and within the overall context of urban development management agenda for greater Dhaka, and management of Dhaka, and by working developed through a consultative process. closely with the agencies and specific teams that Despite initial problems of commitment, there are involved in these projects. The metro-wide has been considerable progress in the Study planning and coordination body, GDTPCB, set during this period. Notably, there has been up under DUTP is expected to function as a pilot greater ownership from DCC over a period of model for strategic planning and inter-agency time, and this has provided a lot of thrust to the coordination for greater Dhaka. The institutional work; there has been an increasing realization on strengthening components under DUTP will take the value of the CDS process, the need for into account the recommendations proposed strategic planning, and institutional and under CDS with regard to institutional governance reforms. The merits of public capacities. Future World Bank involvement in consultation and participation have found greater Dhaka will be contingent on a demonstration of appreciation, as evidenced by the success of the sustained ownership and commitment to stakeholder workshops, particularly towards the improve governance and reform institutional and final stages of the CDS formulation. financial management. Key. areas where Bank will explore opportunities to work with Linkage with Bank Operations stakeholders in Dhaka are improving governance, addressing urban poverty issues and World Bank is currently involved in two large- reducing flood vulnerability of the city. This scale investment projects in Dhaka; they are the could be potentially through a series of strategic Dhaka Urban Transport Project (DUTP) and studies, technical assistance and investment Fourth Dhaka Water Supply Project (DWASA projects, undertaken in close coordination with IV). DUTP is expected to address some of the other development agencies. most critical infrastructure improvements, improve traffic planning and management Follow Up Activities capacities of key agencies such the city corporation, RAJUK, metropolitan police, In response to the lack of inter-agency strengthen policy environment and institutional coordination highlighted in the CDS study, the coordination through the creation and Coordination Committee set up in 1996 to strengthening of Greater Dhaka Transport coordinate between various agencies and Planning and Coordination Board, support ministries involved in Greater Dhaka area, is efforts to improve air quality and address some expected to be reactivated. However, the of the specific transport needs of marginal reactivation of the Coordination Committee is groups like pedestrians and women garment only an initial step to resolve inter-agency workers. The water supply project aims to better coordination. There is a need to clearly spell out the efficiency and management capacity of concrete mechanisms for the successful Dhaka Water Supply Authority, improve quality functioning of this Committee, and also of existing services and extend coverage. complement the working of this high-level City Development Strategy (CDS), South Asia Region - 10- Committee with other suitable working level backlogs and urban poverty. The Mayor has mechanisms. Any long-term solution to this requested World Bank support in convening highly complex issue will require fundamental such a donor round-table.CDS has provided a reforms in the current policy environment and climate of trust, cooperation and coordination institutional architecture. This will require between some of the key agencies involved in further detailed studies with greater degree of Dhaka. It has also provided the much-needed ownership and commitment from DCC, other initial framework for a comprehensive urban pourashavas within Metropolitan Dhaka and the development and management agenda for central government. It will also require greater Dhaka. It is important to capitalize on improved capacities within existing institutions this by engaging DCC, Rajuk and other key to undertake any In this context, the Mayor of institutions, supporting CDS process and Dhaka has requested the Bank's continued assisting institutional reforms. It is important for advice, engagement and assistance to address the the Bank, as well as other donors, to engage the deep-rooted governance and institutional various institutions that are involved in problems associated with managing Dhaka. governance, urban management and service provision in Dhaka, on a long-term basis for The City Assistance Program for Dhaka has sustainable results. In the immediate, dialog and identified a prioritized list of programs, projects assistance to improve the planning and and other actions that are critical to the urban management capacity of DCC and Rajuk should development and management of Dhaka. DCC be considered in the context of on-going intends to convene a donor round-table meeting projects. However, this will have followed up by to discuss with various donors the more in-depth and comprehensive programmatic recommendations ofthe CDS study. It will seek action to frame a reform agenda. the support of the donors for strengthening institutional capacities, addressing service City Development Strategy (CDS), South Asia Region - 11- 4. CDS Progress Report for Khulna (Bangladesh) with a large number of jute and other heavy Name of the city: Khulna manufacturing industries. It also serves as the regional gateway to trade with India on the west. Key Statistics and Characteristics of City The port of Mongla and the world famous Sundarbans mangrove forests lie to its south. Khulna is the third largest city of Bangladesh, Academic institutions such as the Khulna and can be called in some ways, as the regional University (KU), Bangladesh Institute of capital of the south-western part of the country. Technology BIT) and the Khulna Medical Khulna metropolitan area covers 267 sq. km., College (KMC) located in Khulna serve as key with a population of 0.92 million in 1991. The area covered by the Khulna City Corporation regional institutions of higher learning. (KCC) is around 46 sq. km., and it had a Major Issues population of 0.66 million in 1991. The current population levels are estimated around 1.4 Chief urban developmental issues of Khulna million for the metropolitan area and 0.86 for the - identified under the CDS and underscored area within KCC. The share of KCC's during the stakeholder workshops were: (a) population relative to that of the metropolitan declining economic growth in the region (b) population has been reducing over years, a trend infrastructure backlogs, particularly water expected to continue in the coming years too. supply at the city level and strategic Administratively, Khulna is governed, infrastructure such as bypass roads and bridges, developed and managed primarily by two urban at the regional level; (c) increasing urban agencies - the Khulna City Corporation and the poverty; (d) service deficiencies in areas such as Khulna Development Authority (KDA). KCC is solid waste management and drainage; (e) the elected urban government, providing basic emerging social problems such as increasing urban services in areas such as water supply, drug use, crime and violence. While serious sanitation, building and maintenance of selected problems exist in institutional and financial roads, maintenance of public safety, street lights, capacities of key municipal agencies, and in and so forth to city dwellers within its matters of inter-agency coordination between the jurisdiction. KDA plans, controls and various key agencies, the magnitude and coordinates the development of metropolitan complexity of these are certainly not mammoth Khulna region, and in that sense, it serves an as in the case of Dhaka, and the opportunities in area much larger than that of KCC. While KCC the short-term to address these are many. works as an agency of the Ministry of Local Government, KDA works under the Ministry of CDS Process Housing and Public Works. From very early stages, Khulna, led by its Khulna is strategically located in the south- Mayor, had demonstrated good deal of western part of Bangladesh. Historically, Khulna enthusiasm and commitment during the CDS has been the dominant regional industrial city process. CDS process was able to successfully City Development Strategy (CDS). South Asia Region -12- bring together a number of diverse actors that arrangements, to the Bank and other have a role in the comprehensive urban stakeholders. KCC will also prepare an development and management of greater institutional capacity building program for itself. Khulna, through a process of consensus It will also seek to work with agencies like building. The manner of cooperation and Khulna University to ensure synergies and to tap coordination among various agencies in the into the relative strengths of these agencies. organization of the key stakeholder workshops and the wide range of participants at the (c) decision to convene a donor round-table workshops, cutting across gender and party meeting, organized by KCC, to discuss the affiliations, were a testimony to this sense of recommendations of the CDS study and seek ownership. In particular, three key institutions ways forward. It will seek the support of the associated with Khulna, namely KCC, KDA and donors for enhancing economic growth, KU have been working closely with each other, strengthening institutional capacities, improving as well as with the consultant team, to formulate strategic infrastructure, addressing service the CDS and the City Assistance Program. The backlogs and urban poverty. The Mayor has key points emerging from the overall process, requested Bank support in convening such a discussions with individual agencies and various donor round-table. stakeholder workshops, were: (a) the general climate of consensus, with the Mayor taking Linkages to Bank operations lead, on developmental issues of Khulna; (b) a willingness to undertake institutional, financial Major ongoing studies and programs by donors and governance reforms; and (c) a fair degree of include a JICA feasibility study for Roopsha emphasis on civil society participation. These bridge, urban poverty alleviation program three aspects of the CDS process were highly supported by UNDP-UNCHS, and an urban encouraging, but needs to followed up and built basic services program assisted by UNICEF up on for long-term results. World Bank is currently involved in Khulna through the recently effective Municipal Follow up Services Project; within the context of this project investments will be made for The CDS study, as well as the critical final rehabilitation of existing water supply system stakeholder workshop have identified several and for undertaking a feasibility study to identify follow up measures to the CDS Study; these future sources for water supply. Other potential include: investments will also be considered by the Municipal Development Fund that will be set up (a) commitment to the CDS process from within under the project, conditional to the city the city and putting in place mechanisms to undertaking key institutional and financial institutionalize it; reforms for strengthening its urban management capacities. (b) proposals for improving governance and institutional coordination. In this regard, a In view of the strong ownership demonstrated by coordination committee will be constituted by Khulna during the CDS process and based on the Mayor for ensuring institutional the findings of the Study, it is possible that the coordination. Chief Engineer, KCC will submit city will be supported in its efforts to improve its a proposal outlining the details of such a governance and institutional coordination committee, including its day-to-day working mechanisms, and strengthen its planning, City Development Strategy (CDS), South Asia Region - 13- institutional and financial capacities. Besides this, support for addressing some of the most pressing urban issues, such as increasing urban poverty and critical service deficiencies in water supply, sanitation, solid waste management and drainage, is also being potentially considered by the Bank. City Development Strategy (CDS), South Asia Region - 14- 5. The State Of The City CDS Report Ahmedabad (Gujarat, India) Key Statistics: Analysis of municipal finances were also Gujarat is second most highly urbanized State in undertaken in 1998 as part of the municipal India and Ahmadabad is its largest city, bond issuance, with support from USAID. followed by Surat. Importance of CDS: Characteristics of the City: Population: The CDS was used as a tool for city-wide 3.5 million; its economic base is mainly business development and multi-year and industry. investment planning as well as a tool for institutional reform and capacity building. Major Issues: Issues, objectives, and strategies were developed Linkage with Bank Operation: for each of the urban services, plus in areas such This CDS exercise is part of the preparatory as governance, economy, city safety and activities for the proposed Gujarat Municipal security, public health, social development, Strengthening and Urban Infrastructure enlightenment, arts and culture, finance, and Development Project enlightenment. Key Stakeholders: CDS Process: Altogether some 160 politicians, private citizens, The Ahmadabad Municipal Corporation (AMC) representatives of NGOs and business and civil and the Ahmadabad Urban Development servants were involved in the work of preparing Authority have managed this City Development the CDS. Strategy (CDS) with the assistance of the World Bank and AusAID. The initial workshop was Progress: conducted on July 27-28, 1999. There were a The vision statement and analytical studies have number of follow-up meetings held on 21, 22 been completed with assistance from the Cities and 25 January 2000. Altogether some 160 Alliance and AusAID politicians, private citizens, representatives of NGOs and business and civil servants were Lessons Learned: involved in the work of preparing the CDS. The model used, which built was built based on the Coimbatore CDS, is expected to be used for CDS proceeded by Urban Land Management other cities in the State of Gujarat. Sector Study conducted in 1998, involving AMC and Surat Municipal Corporation. Follow up action: Depending on the availability of resources, the Strategic Plan will be completed and the City Investment Plan (CIP) will be prepared. City Development Strategy (CDS), South Asia Region - /5- 6. The State of the City CDS Report Ban galore (Karnataka, India) Background and Approach c~tize~s on _the state of their city. The mounting In June 1999, the preparation of a City dissatisfaction of the population prompted the Development Strategy (CDS) for Bangalore was new Chief Minister, concerned that the city initiated with seed money from UNCHS. The should not lose its competitive position in yv orld Bank financed some analytical work, attracting investment, to form the Bangalore mcluding a spatial analysis of the city. With Agenda Task Force (BATF). The Task Force further assistance from AUSAID, a stakeholder · has created a new partnership in which local group meeting was held in July during which a businesses, many of which are large and key formal commitment was made by political and players in the IT industry, joined hands with civil leaders of Bangalore to engage in a several State level service providers, the participatory process of developing a strategy Bangalore City Corporation (BCC) and civil for the improvement of life in Bangalore. society in an effort to work in partnership to Subsequently, a diverse group of stakeholders develop Bangalore into a more livable met to undertake a "visioning" exercise with a .. competitive and financially viable city. ' view to describing what their image of a future Organizations included in the exercise are the well-functioning city entailed. An agreed vision Bangalore Metropolitan Regional Development of the city was reached with all groups committing themselves to working together t~ Agency, the Bangalore Water Supply and Sanitation Board, the Karnataka Slum Clearance achieving higher economic growth for the city Board, the Bangalore Development Agency. and provision of infrastructure and social The BATF has held various consultative services that would make the city more attractive meetings with citizens of the city and has drawn to investors. The single most important issue up a short-term plan for implementation by June that all concerned could agree on as their most 2000. Activities under the short-term plan tormenting problem was Municipal Solid Waste include improvements to road surfaces Management (MSWM). rehabilitation of sidewalks, and improved collection of solid waste. Efforts are underway In September 1999, the CDS process went into a to prepare a long-term plan for implementation hiatus as Karnataka prepared for State elections. by June 2004. A new government came into power with a very strong pro-urban policy, which saw committed The Bank has offered to solicit further technical leaders installed at both the technical and assistance from the Cities Alliance 1 (CA) to political levels within the GOK and the Bangalore City Council. The Public Affairs 1 Committee conducted a poll of Ban galore The Cities Alliance (CA) is a global initiative fonned by a nu~ber of bilate~l and multilateral development agencies dedtcated to the Improvement of life in cities around the world. The CA mobilizes grant funds in support of the City Development Strategy (CDS), South Asia Region - 16- support this long term planning process. It has revamping the property tax system. During the more specifically agreed to provide direct mission, BCC submitted a request to Urban technical assistance to BCC in the preparation of Development Department (UDD) for access to a MSWM strategy, the primary "felt need" $2.5 million under the TA Loan for Economic arising out of the visioning exercise. Resources Reform to take their piloted GIS system to scale for this latter task are contained within the across the city. Project Preparation Fund provided in support of the Karnataka Water and Urban Management The mission was of the view that since the CDS Project (K WUMP), managed by the Kamtaka process is now well-launched with political Urban Infrastructure Development and Finance support from the highest level, the Bank's Corporation (KUIDFC). AusAID has also further contribution (through the Cities Alliance) pledged further support to the Bangalore CDS. would be to assist with preparing aspects of a slum-upgrading program, one of the action items Progress to Date on BCC 's agenda under BATF. A review meeting of the BATF will occur on July 22, During a June 2000 mission the Bank reviewed following which BCC will advise the Bank on the program of work being undertaken by the its proposals for slum upgrading with a view to Bangalore Agenda Task Force, established in submitting a formal proposal to the Cities November 1999 with a view to making Alliance by September 15, 2000. Bangalore the "best city in India by 2004." BATF wants to upgrade the managerial and Planned Actions related to the CDS administrative capabilities of civic and process in Bangalore from July 1 - administrative stakeholders (seven service December 30, 2000 providing institutions), enable the provision of citizen oriented, high quality public services and • June 2000 • BCC to submit application to augment financial resources of stakeholders to KUIDFC for KWUMP PPF to obtain TA for SWM action enable them to perform at "world-class" levels. plan. BATF has essentially engaged ·in a homegrown • June 2000 • BCC to submit application for CDS process. All financial resources provided funding for GIS to Secretary to date, amounting to Rs25 crores, have come UDD for onward submission to from private sector entities contributing to a trust Department of Economic Affairs (DEA) for approval. fund. A process of short- and long-term planning is underway which is regularly • July 22, 2000 • BATF holds summit meeting to review achievements to date reviewed at six-month intervals. and future plans Bangalore City Corporation's current task under • September • Application to CA submitted 2000 for funds to support Bangalore BATF, in addition to the MSWM referred to CDS/BATF above, is to introduce "Fund" based accounting • December • Obtain approval for funds from and a digital urban management program 2000 CA and AUSAID (DIMAP) based on GIS geared initially to • BATF holds review/progress meeting preparation of City Development Strategies and the scaling up of slum upgrading efforts, in a bid to promote "cities without slums". The secretariat for the CA is provided by the World Bank City Development Strategy (CDS), South Asia Region - 17- Conclusion There have been strong expressions of attainment of the long term vision of the city ownership and support from the Bangalore City have all been carried out under their own Corporation of their own brand of the CDS initiatives and energy. All decisions on what to process. Most of the efforts of the BATF and do, how to do it, experimentation with ideas, and the success of their attempts to improve the implementation of the short term development functioning of the city in the short term while plans have been made and carried out by the they gamer more public support for the Bangalore side of the CDS Team. City Development Strategy (CDS). South Asia Region - 18- 7. · The State of the City CDS Report Coimbatore and Tiruppur (Tamil Nadu, India) Tamil Nadu--one of the most urbanized Tamil Nadu has 6 Municipal Corporations States in India--is undertaking a CDS (Chennai, Madurai, Coimbatore, Salem, mainstreaming initiative as an integral part Tirunelveli, Tiruchirappalli), 102 municipa- of a comprehensive approach to urban lities and 636 town panchayats. Sixty development. Under this initiative fifty city percent of the urban population live in towns development strategies 2 (CDS) as part of the with more than 100,000 inhabitants 5; and World Bank Second Tamil Nadu Urban about 15 per cent in the single metropolitan Development Project (TNUDP II) are city of Chennai. expected to be prepared. Characteristics of Tamil Nadu: Name of the State: Tamil Nadu is the front runner of the urban 50 cities in Tamil Nadu, INDIA sector reform and decentralization program in India. Tamil Nadu urban sector plays an Key Statistics: important role in economic and social According to the 1991 census, in India about development in the State. However, it has a one fourth (1/4-25 per cent) constitute the huge backlog of urban infrastructure urban population; one third (1/3-33 per cent) investment. Urban poor constitute 25 per live in 23 metropolitan cities; and it is cent of the population. In terms of basic projected that by 2025 one half (112-50 per infrastructure: water supplies vary from 34 cent) of the population will be urban. lpcd in Town Panchayats to 74 lpcd in Corporations which is significantly below Tamil Nadu the sixth largest populated and the norm6 and the access to safe sanitation the third most urbanized states 3 in India with is limited7• Although 70 per cent of solid one third of its population living in urban waste generated is collected, most local areas. With the inclusion of over 600 Town bodies do not have organized disposal Panchayats4 , described as transitory areas facilities, and less than 50 per cent of the the urban population has reached nearly 40 roads are provided with storm water drains per cent of the total. 5 Class I Towns. 6 The minimum water supply established by the norm is 70 2 Called City Corporate Plans (CCPs) in TNUDP II. lpcd for Town Panchayats and 11 0 lpcd for Corporations. 3 7 After Maharashtra and Gujarat Only 57 per cent of population in Corporation areas, 32 4 Inclusion due to the 74th Constitutional Amendment per cent in Municipalities and 16 per cent in Town under the Municipalities Act of 1994 Panchayats have access to safe sanitation. City Development Strategy (CDS), South Asia Region - 19- Major Issues: investments priorities; ensure transparent Tamil Nadu has delivered two CDS so far and rational investment decisions; and lead ' i.e., Coimbatore and Tirupur. They are most to less corruption. committed and capable cities. The capacity and level of commitment among 50 cities CDS are also a very important tool for are different. It is critical to adjust CDS institutional strengthening and development process to each city, taking into account because they address governance and management issues and identify areas that their local needs and capacity level. The require capacity building and institutional local consultants that have limited development. In the case of Tamil Nadu CDS knowledge and capacity for CDS provide training and technical assistance to preparation should also be strengthened. ULBs for identified areas based on demand driven principles. CDS Process: Tamil Nadu --one of the most urbanized Linkage with Bank Operations: States in India-- is undertaking a CDS CDS- TNUDF Linkage STRATEGY-PLAN- mainstreaming initiative as an integral part INVESTMENT-FINANCE of a comprehensive approach to urban development. Under this initiative fifty city The CDSs are and integral part of a development strategies (CDS) as part of the comprehensive approach to urban development World Bank TNUDP II project are expected built upon a strong policy based and commitment to reform in Tamil Nadu. The to be prepared. World Bank is providing an estimated US$80 million line of credit for urban investment Under this initiative the State Government of through the Tamil Nadu Urban Development Tamil Nadu -through the Municipal Fund (TNUDF). Once the municipalities Administration and Water Supply Department-- identify priority investment programs as a part issued on October 6, 1999 a Government Order of a CDS process, they can submit the loan for the Preparation of City Corporate Plans applications to TNUDF. TNUDF appraises their (CDS). This Government Order provides applications and extends loans in accordance guidance to municipalities on plan preparation with pre-determined lending criteria. and provides an indicative list of 50 participating Coimbatore Corporation is currently municipalities. The technical assistance for implementing a major sewerage scheme of about preparation of CDS is being provided under the US$1 0 million with the financial support of institutional development component of the TNUDF. This sewerage scheme is one of the Bank loan. The technical assistance for highest priority investment programs identified preparation of Coimbatore CDS was financed through CDS. TNUDF also assists ULB with a USAID grant. identify and develop projects through a Grant Fund window designed to directly benefit the Importance of CDS: poor. Under the described mechanism ULBs CDS are a very powerful instrument under a can immediately implement high priority decentralized scenario, because they further projects identified by CDS. promote decentralization; allow ULBs, key stakeholders-councils, citizens, private To facilitate ULB's in developing and utilizing sectors, NGOs, and media identify project the COS's, the TNUDP II Project Management City Development Strategy (CDS), South Asia Region -20- Unit, (the training and capacity building arm of In the case of Tamil Nadu and from the the project), functioning under the perspective of the comprehensive approach for Commisionerate of Municipal Administration urban development, other key stakeholders has in a years time trained over 440 municipal included the Indian private sector in the functionaries in basics of CDS. A key impact of financing part of the identified projects. the training is the exposure and willingness of UNCHS-Habitat in collaboration with the World key officials in coming up with decisions to Bank is providing technical assistance to strengthen local administration and service develop the institutional capacity of delivery. As an outcome of this training, local municipalities to develop and monitor officials have taken a decision to enhance fee for performance indicators for the implementation provision of select services. Excerpts of the of the CDSs; and USAID providing technical presentation made by a group of elected representatives on municipal governance issues as part of training on City Corporate Planning Box 1. Key Outcomes of the Training Program 1. Ensure transparent administration. (CDS) is presented in Box 1. As part of the 2. Empower local body to engage staff based on process of improving the content and structure its fiscal capacity. of the training, its application in preparation of 3. State to direct district administration, state level CDSs as well as in identifying potential trainers agencies and other service agencies such as among trainees, PMU has proposed a roundtable telephones, to review the resolutions oflocal council. in June 2000 and would continue to hold 4. Reduce monthly state level meetings of periodic discussions to strengthen the process. commissioners as this forces them to stay away for 3 days a week resulting in delay in Program Local Personnel decisions. Bodies Trained 5. Commissioner and Chairman should manage Covered affairs and not just the commissioner. I. Orientation workshop for 102 140 6. Introduce an enhanced fee of Rs.l 00 for Town Planning Officers immediate issue of birth and death certificate. 2. Orientation workshop for 64 94 7. Resources transferred from the state should not Urban Planners specify the use but let the municipality allocate 3. Orientation workshop for 102 123 the same based on needs. Municipal Commissioners 8. City council to be empowered to initiate action 4. Orientation workshop for 64 83 on errant officials. Elected Representatives 9. Training program venues should be spread all 5. Orientation workshop for In progress over the state than being in Chennai. Municipal Engineers I0. Reduce program for elected representatives H from 5 to 3 days. !! Source: PMU, TNUDP . ...... ................ ;.~~-. ~..:~;:. ~ ...... ..:.-.-.-.~:-~-. . .= =. . ~-:.~-. . .. . -.=:.-.-.-.~~ ~~ ==-.·:~-.-. ~; Note: Urban Local Bodies in Tamil Nadu - 108 All programs include participants from state level assistance to develop the CDS of Coimbatore administrative agencies. and Tirupur. Key Stakeholders: Progress: As in any other single CDS the participation of The final reports of the CDSs for the pilot cities the public and private sector representatives and of Coimbatore and Tirupur have been already the civil society in general is key to obtain the completed and approved by the Municipal stakeholders participation and subsequent Corporation Councils. ownership. Tamil Nadu State Government will publish annually the progress and performance of the City Development Strategy (CDS). South Asia Region -21- CDS of each municipality through public media. services through the net. As proposed in the This transparent approach provides positive CDS, two commercial complexes on receipt of incentive for the municipalities to implement the clearance of the government on land CDS's properly, leading to improved reclassification will be· developed on a governance of municipalities. Coimbatore commercial basis (BOT). The Corporation has Corporation and Tirupur Municipality initiated proposed privatization of waste collection in 12 the CDS process in November 1998 and wards, and issued an advertisement for setting obtained the approval of the elected council in up of a compost plant to convert wastes on a October and November 1999 respectively. BOT. Coimbatore and Tiruppur could incorporate only A major CDS outcome in Tiruppur is related to part programs identified as part of the CDS of the water operations. Tiruppur had ~esolved to 1999-00, as the budget for the year was prepared co-ordinate investment in roads (& drains) and in November 1997 and approved in March 1998. water distribution with the Plans of the private Despite non-inclusion of components as sector supported water supply project. Tiruppur planned, the local bodies have used the outlay had also resolved to formulate an operations and and project identified as part of CDS as part of maintenance (O&M) plan to strengthen the their budget. For example, in Tiruppur water operations. In this regard, the municipality roadwork's were to commence from year three, using the opportunity in formulation of a but for operational reasons few of the third year transition plan, a requirement under the private road programs were included in the first year's water project, identified areas of strengthening plan. Similarly the local body has shifted O&M practices and operational management investments in solid wastes by a year. improvements. The proposed water supply Coimbatore Corporation like Tiruppur, had to project would provide training and skill transfer adjust its capital program of the first year but has support. Given the upgradation requirements of resolved to adopt the CDS outlays part of the its systems and the manpower needs to budget for the year 2000-01. Coimbatore as part implement the transition plan, the municipality of the first years CDS had identified sewer will decide on privatizing select functions. In investments as a major program, but had to defer terms of improved governance, especially with it to the subsequent year due to delay in regard to computerization, TNUDP is supporting procurement. the municipality (all municipalities in the state) in computerizing accounts, personnel, and On the management front, Coimbatore, as revenue management functions. Preparation of a indicated in the CDS has commenced work in Transition Plan was funded out of the Grant strengthening information systems and most Fund being ~anaged by TNUDF. functions are being computerized. Support for computerization is from the lending window of On the revenue front, the collection the project viz. TNUDF and capacity building performances of taxes have improved and state support is being provided partly by the TNUDP, transfers have been substantial. A major the training arm of the project. The commitment agreement as part of the CDS was in terms of of the corporation in upgrading information revision to water charges. Tiruppur has raised systems and services is reflected by the fact the water tariff by 20 per cent and has agreed to beginning from year 2000-01, citizens can file set its rate as per the contractual obligations of their property tax assessment, and get a feel of the private sector project8 • Coimbatore has the revised tax by using the form available in the Corporation's Web site. The Corporation is 8 exploring the possibility of providing other A base price plus annual increments, to be notified by the water company. City Development Strategy (CDS), South Asia Region - 22- deferred water tariff revision to the year 2000- Note Excludes opening balances, deposit and advance 01. ' accounts. Roads and buildings include investment in educational buildings and general services. As can be seen from analysis of variance in A major issue that confronts both (most) local finances of Coimbatore, revenue income and bodies is the multiplicity of agencies in urban both revenue and capital expenditures have management. This is a key review theme in most increased as against the CCP estimates. Despite training programs and it is expected that the deferment of tariff revision, the overall revenues outcomes of CDS would lead to better of the local bodies increased largely due to interaction between agencies in delivery of improved collection performance and increased services. devolution from the state. The increase in revenue expenditures of Coimbatore is due to Lessons Learned: repayment of annuities and increase in capital Ownership of CDS is key for the success. Tamil expenditures despite the deferment of Nadu Government is implementing C borrowings for sewerage project is due to DS, using the proceeds of the Bank loan in stead enhanced road related works and investment in of the Grant Fund for most of other CDS cities. solid waste management. The sewerage project This indicates the strong ownership of the would commence in the year 2000-01. The local Government. body has initiated a detailed performance appraisal, which would be an annual feature and CDS becomes a powerful instrument when it is a would form an input to the proposed observatory part of comprehensive urban sector reform to be established within the office of the DMA. program. Comparative Analysis of Finances of Mainstreaming CDS at a state level can enhance Coimbatore Corporation innovation and competition among cities. In Heads As perCCP Actuals Variance Tamil Nadu the CDS performance of each city will be published, not only at the local level but Rs in Lakhs also for the whole state, creating pressure from the citizens and enhancing competition for better Revenue Receipts 9,847.6 13,557.2 37.7% performance. Capital Receipts 3,311.1 1,908.0 -42.4% Revenue Expenditure 8,439.0 10,410.6 23.4% The mainstreaming of CDS is a valid instrument Capital Expenditure 3,197.0 4,433.7 38.7% for. s.c~ling up and replication of this type of 1,759.42 -64.7% activities, however, these initiatives in order to Overall Status 620.98 succeed should be built upon a strong policy Capital Expenditure Head base and commitment to reform, and based on a Water Supply 1,140.7 997.3 -12.6% participatory approach and a demand driven Sewerage & Sanitation 892.4 0.0 -100.0% process. Roads & Buildings 234.2 2,070.7 784.3% The linkage between the long term strategy and Storm Water Drains 285.5 331.3 16.0% most immediate plans and actions resulting of Street Lighting 372.0 500.0 34.4% the CDS, require a direct link for financing the Solid Waste 35.4 534.3 1,408.5% Management hi~ .~riori.ty investments as well as other key Total 2,960.2 4,433.6 49.8% activities, m order to validate the exercise and translate into reality the strategy, plans and actual projects. City Development Strategy (CDS), South Asia Region -23- CDS contributes considerably to the performance indicators. UNCHS-Habitat in improvement of city governance and collaboration with the World Bank is management. For this purpose, public providing the technical assistance to develop disclosure of CDS objectives and its the institutional capacity of municipalities to progress are important. develop and monitor these performance indicators. The mainstreaming CDS approach Follow up of CDS: will be presented and shared in urban related In order to monitor the progress and events in order to inspire other cities or states. performance of the CDS, the municipalities will adopt a set of City Development Strategy (CDS), South Asia Region - 24- 8. The State of the City CDS Report Kathmandu (Nepal) Key Statistics • The limited natural resources, particularly Please refer to Annex B "Kathmandu City water, is a major limitation in the future Profile" growth of the city. The city is therefore not a suitable site for developing industrial City Characteristics and Opportunities activities. Present Major Issues • Because the city is the historical and cultural • The city is growing at an alarming rate of center of Nepal it has many monuments and six per cent per year. Planning and a rich culture which is an asset for managing this growth is a major challenge promoting tourism. Kathmandu Valley has 7 that has to be addressed. World Heritage Sites listed by UNESCO. • Although Kathmandu Valley is one • As Kathmandu is the primate city of Nepal watershed, many government and semi- and the center of political, economic, social government institutions are responsible for and cultural activities in the country; it managing this Valley. It has three districts, offers the best facilities in the country in five municipalities (KMC is one of them) terms of health care, education, and almost I 00 village development communication and entertainment. committees. Additionally several ministries (Ministry of Finance, Ministry of Local • The strategic location of the city in the Development, Ministry of Labor and middle of South Asia, with favorable Transport Management, Ministry of climate, relatively stable political Physical Planning and Works, Ministry of environment and excellent Water Resources, Ministry of Population telecommunication· system allows it to be and Environment, Ministry of Home, the center for regional activities such as Ministry of Social Welfare, etc.) and conferences, sports and other events. departments are responsible for providing Several major regional institutions, such as various urban services. There is therefore a SAARC Secretariat, are already located in pressing need for organizational reform and Kathmandu. institutional coordination. There is also a • As the city is still relatively small, many of need to coordinate efforts among donor the current problems can be addressed with agencies and NGOs. some effort. • Deficiency in physical infrastructure, particularly in the areas of water supply and transportation, is another major issue. City Development Strategy (CDS), South Asia Region -25- • Financing of municipal infrastructure and Months 2-7: Data collection and analysis, services is a critical issue. Revenues consultative meetings and focus generated by municipalities are insufficient. group discussions at various levels There is a need to expand the tax base, to identify issues, constraints and improve tax collection and explore other potentials, and development of financing mechanisms including private CDS. sector partnerships. Month 7: Second stakeholder workshop to present the draft CDS and receive • The deteriorating environment, particularly feed back. air pollution, pollution of rivers and solid waste management need immediate Month 8: Final CDS, CAP and Slum/Squatter attention. Improvement Program. • Probably the most important issue is the need to reinstate the faith of the people in Importance of CDS the municipalities and other related agencies. The people should be able to Recently, KMC and the city in general has been believe in them and only then they will work going through a lot of change. The population with in partnership with the authorities. and the demand for effective and efficient urban services is growing rapidly and the government CDS Process has just enacted the Local Self Governance Act, which gives additional responsibilities to KMC. The CDS process in Kathmandu will bring KMC has responded to this by initiating several together various stakeholders with a view of new programs and making readjustments within developing a strategic plan for the city, taking its own organization. A technical assistance into consideration its issues, constraints and from the Asian Development Bank (ADB) is potentials. KMC will take lead in driving the looking into organizational development and process, coordinating with various other revenue generation within KMC. Similarly, the governmental agencies that have a role to play in Kathmandu Valley Mapping Programme which Kathmandu. In this task KMC will be assisted has just been launched with the support of the by a team of specialized consultants. In general, European Union (EU) is assisting KMC with the work plan will be as follows: urban planning and infonnation management. The challenge for KMC is to plan and manage Month 1: Study the current situation and these changes, develop a strategic vision and produce an inception report. prepare a program to realize this vision. The Identify key stakeholders. CDS is the ideal vehicle to address this Discussions between consultants challenge. It will bring all stakeholders together and KMC to clarify needs, and guide the process of change and expectations and key issues. development within KMC and assist in coordinating the efforts of all relevant agencies. Month 2: First stakeholder workshop to present the inception report and Key Stakeholders start the strategic planning • KMC (All departments and ward offices) process. • Other 4 Municipalities in the Valley (Lalitpur, Bhaktapur, Kirtipur & Thimi) City Development Strategy (CDS), South Asia Region -26- • Members of Parliament from Kathmandu (7 • Private sector (as represented by Federation from Kathmandu, 3 from Lalitpur and 2 of Nepalese Chamber of Commerce and from Bhaktapur) Industries, and Nepal Chamber of Commerce) • Ministry of Local Development • NGOs active in Kathmandu (Nepal Forum • Ministry of Physical Planning and Works for Environmental Journalists, Environment • Department of Housing & Physical Planning and Public Health Organization, etc.) • Department of Roads • Donor agencies involved in the development of Kathmandu (World Bank, Asian • Department ofTransport Management Development Bank, GTZ, JICA, DANIDA) • Valley Traffic Police Progress • Nepal Water Supply Corporation • Kathmandu Valley Development Council The CDS officially started in the beginning of 2000, and by the Fukuoka meeting the inception • Ministry of Population & Environment report and the first workshop are expected to be • Tourism industry (as represented by Nepal completed. Tourism Board, Hotel Association Nepal, Nepal Association ofTravel Agents) City Development Strategy (CDS), South Asia Region - 27- 9. The State of the City CDS Report Colombo (Sri Lanka) The National Context decentralisation, economic reforms through market friendly policies and privatisation, and Sri Lanka is a densely populated island nation of efforts to pursue a lasting solution to the ethnic 18 million people located off the southeastern conflicts, it is possible to achieve the economic tip of India. Sri Lanka is a low-income country and development goals. Within this national with a per capita income of about $840. Despite policy framework, the Colombo City the low income and high incidence of poverty, Development Strategy is expected to be an Sri Lanka has a remarkable record on human important component. The Colombo development indicators. The average annual rate Metropolitan region accounts for nearly one- of growth of population is 1.2 percent, as against fourth of national population, 44 percent of 1.9 percent for South Asia. Life expectancy at GDP and 80 percent of industrial birth is 72 years, infant mortality rate is 16 and establishments. Given the locational advantages literacy is 90 percent. These achievements are of this region, it is expected that most of the remarkable, as, since independence 50 years future economic growth would also be from this ago, there have been many ethnic conflicts and region. A development strategy based on a political unrest. comprehensive development framework for Colombo would thus be important, not only The new government, in 1996, instituted a from the perspective of the local governments, number of reforms that have helped the but also in the interest of the national economic economy to grow, reduce the fiscal deficit and and social development policy. increase investor confidence. Privatisation has (CITY ASSISTANCE STRATEGY been a major plank of this reform process. PROGRAMME FOR COLOMBO, SRI Privatisation of tea plantations, telecom, gas, LANKA: A CONCEPT PAPER) electricity and other enterprises are expected to reduce the fiscal deficit and increase output. Cities This reform policy envisages a level of investment of 30 percent of GDP by the year The CDS Colombo has included three 2000. With this investment, it is expected that contiguous Municipal Councils; the GDP growth would be 7-8 percent. At this rate of growth, the unemployment level is Colombo Municipal Council - CMC expected to come down from its current level of Dehiwala-Mt. Lavinia Municipal Council - 12 percent to 5 percent. DMMC Sri Jayawardenepura Kotte Municipal Council Within the SAARC region, the seven South -SJKMC Asian countries have recently decided to establish a South Asian Free trade area by the Three municipalities have been identified as year 2005. Sri Lanka is strategically well placed 'Colombo Core Area' under to attract trade-driven foreign investments for UNDPIUNCHS(Habitat) assisted Sustainable the whole South Asian region. With the Colombo Core Project (SCCP) and World commitment of the present government on Bank!UNCHS(Habitat) City Development Strategies Programme (CDS). City Development Strategy (CDS). South Asia Region - 29- Key Statistics Sri Jayawardenepura Kotte Municipal Council Colombo Municipal Council Level of Local Government Municipal Council Extent of Municipal Area 1704 Hectares ( 17.04 sq.km.) Level of Local Government Municipal Council No. of Municipal Districts 01 Extent of Municipal Area 3731 Hectares (37.31 No. ofMunicipal Wards II sq.km.) No. of Elected members 20 No. of Municipal Districts 06 No. ofMunicipal Wards 47 Population No. of Elected members 53 Residential Population 134,114 (1999) Population Floating Population ( 1999 - 40,000 ResidentialPopulation ( 1998) 800,000 estimated) Floating Population ( 1998) 400,000 Average Population Density 79 p/ha Average Population Density 278 p/ha (1999) (1998) Annual Population Growth 1.20 per cent Annual Population Growth 1.14 per cent Rate (1995) Rate (1995) Housing Units Housing Units Permanent Dwelling Units 19,600-80 per cent Permanent Dwelling Units 40,861 -49 per cent Underserved Settlements 4,899 - 20 per cent Slums I Old Settlements 22,358 - 27 per cent Total No. of Units 24,499- I 00 per cent Shanties 20,685 - 24 per cent Total No. of Units 83,904- 100 per cent Infrastructure Road Network 90.16k.m Infrastructure Sewerage Network No pipe sewerage Road Network 480km system available. Sewerage Network (covers 250km Isolated sewerage only 80 per cent of the city) systems are available Garbage Generation 625 tons per day at the Parliamentary complex, the Sri Manpower Jayawardenapura Cadre of Employees 12,649 Hospital. Number in place (1999) 8,900 Garbage Generation 126 tons per day Budget for 2000 (Amounts in Manpower Rupees) Cadre of Employees 1,454 Total Income 6, 195,259,000 Number in place ( 1999) 884 Total Expenditure 6, 192,261,000 Surplus 2,998,000 Budget for 2000 (Amounts in Rupees) Total Income 609,487,200 Source: 1. City Profile Colombo, Sri Lanka, May 1999, Total Expenditure 609,431,800 CMC and SEVANATHA Surplus 57,400 2. Budget Report, Colombo Municipal Council -Year 2000 Source: I. Environmental Profile Colombo Core Area, Sri Lanka, December 1997, Resource Development Consultants Ltd, Colombo 03. 2. Budget Report, Kotte Municipal Council - Year2000 City Development Strategy (CDS). South Asia Region -30- Dehiwala-Mt. Lavania Municipal Council CCA covers an area of 75 sq.km. encompassing 37.3 sq.km. for CMC, 16.7 Level ofLocal Government Municipal Council sq.km for K.MC and 21.2 sq.km for DMMC. Extent of Municipal Area 2120 Hectares (21.20 sq.km.) The estimated total residential population of No. of Municipal Districts 02 the three municipalities was 1,168,886 as in No. ofMunicipal Wards 29 1998. The distribution of the population No. of Elected members 29 among the three municipalities shows that Population 800,000 for CMC, 134,114 for KMC and Residential Population (1998) 2,34,772 234,772 for DMMC. This indicates that Floating Population ( 1998 - 100,000 Colombo is about four times bigger than estimated) Average Population Density 110 plha DMMC while K.MC, the smallest, is just (1998) above One Hundred Thousand people. Annual Population Growth 1.14 per cent However, the annual population growth rate Rate (1995) indicates that there is no drastic difference among the three municipalities as CMC and Housing Units Permanent Dwelling Units 30,640 - 73 per cent DMMC have recorded 1.14 per cent annual Semi Permanent Dwelling 64,42- 15 per cent growth rate while the K.MC has shown a slight Units higher rate of 1.20 per cent. These figures Slum and Shanties 4,648- 12 per cent indicate that population growth has come to a Total No. of Units 41,713- 100 per cent maturity level in three municipal areas and it is Infrastructure the lowest growth rate in CMR. The average Road Network 190km population density of the three municipalities Sewerage Network Covers part of the too demonstrates that Colombo has the highest city density of 278 persons p/ha while DMMC Garbage Generation 150 tons per day recorded II 0 persons p!ha and the K.MC being Manpower the lowest 79 persons ph/ha. Cadre of Employees 2,370 CMC is the business capital of Sri Lanka in Number in place (1999) addition to being the administrative and Budget for 2000 (Amounts in political hub. In I978 the economy of the Rupees) country was freed from many administrative, Total Income 256,125,800 financial and legal controls to attract foreign Total Expenditure 255,588,608 capital and investment opportunities. There Surplus 537,192 was a deliberate attempt to accelerate the pace of growth in all-important sectors of the Source: I. Environmental Profile Colombo Core economy. The effect of this approach was the Area, Sri Lanka,December 1997, spill over of the economic activities towards Resource Development Consultants Ltd, the periphery of the CMC. Due to the fact that Colombo03 2.Budget Report, Dehiwala-Mt. Lavinia all transport accesses were connected with Municipal Council- Year 2000 Colombo, a transportation problem has still become a major issue in Colombo. Industrialization at the beginning took place in Characteristic of Three Municipalities Colombo or close to Colombo due to the availability of infrastructure and the port. As indicated in the above, the project area Subsequently industrialization was extended to known as Colombo Core Area (CCA) consists southwards to DMMC and northward close to of three contiguous Municipal Councils of airport. Kotte MC has escaped from the Colombo (CMC), Sri Jayawardenepura Kotte industrialization due the existence of marsh (K.MC) and Dehiwala Mt. Lavinia (DMMC). City Development Strategy (CDS), South Asia Region - 31- and low-lying areas but in 1982 Kotte city was nuisance. declared as the political capital of Sri Lanka. - Increase poor unhealthy housing Among the three municipalities Colombo MC has better level of city services and (c) Housing - Create pressure on infrastructure in water supply, sewerage environmentally sensitive network, drainage, solid waste disposal, lands. - Underserved housing telecommunication and electricity. Both KMC cause water and land and DMMC do not have pipe borne sewerage pollution. network and a large part of two municipalities - Excessive utilization of do not have proper surface drains. DMMC out land ·resources cause degradation of land (i.e. of three municipalities has a vast potential to earth excavation, sand enhance its revenue adopting strategic urban mining and quarrying etc). management into the municipal system. In this context, all the three municipalities are (d) Transport and - Air pollution caused due Communication. to excessive vehicular facing serious challenges of meeting the emission. service needs of the increased city population - Water and land pollution and business sector activities. Inability to due to release of waste provide municipal services has resulted in from vehicle service stations and garages deterioration of the living environment of the city population, which is the central concern of - Soil erosion due to poor construction practices providing assistance to the municipalities to - Adverse effect on human improve their capacity to handle these health problems. - Increase road accidents and loss oflife Major Issues Identified Through the - Loss of productive man hours Consultations (SCCP Sanitation Consultation and CDS City Consultants) (e) Construction - Excessive/uncontrolled extraction of sand and clay. Key Activity Area Problems Identified - Water pollution. - Air and water pollution due to poor construction (a) Port related - Pollution of water in the practices activities harbor - Destruction of marine eco- system - Traffic congestion in the (f) Industry power - Noise and air pollution city and energy - Indiscriminate discharge of industrial waste into - Air pollution due to water bodies and on land vehicular emission - Improper disposal of solid waste creating land pollution. (b) Commerce - Increase in conflicting - Pollution of major water trade and Financial land uses. bodies such as Beire Lake, activities and - Degradation of urban land Bolgoda Lake, and the administration - Increase pollution of land canals of Colombo and and water DMMC area - Traffic congestion and air - Pressure on pollution. environmentally sensitive - Create inconvenient urban lands such as low-lying environment/Public marshes City Development Strategy (CDS), South Asia Region - 32- - Poor Construction and pollution of water practices leading to air and - Poor handling of fish water pollution and waste in markets causes degradation of land. pollution of the water and land (g) Tourism and - Destruction to the coastal Recreation eco-environment (k) Health Care - Poor facilities and - Pollution of beaches due improper handling of to discharge of waste from health /medical waste hotels. create environmental as - Unauthorized erections on well as health problems the beach. - Uncontrolled use of insecticides causes water and land pollution (h) Solid waste - Open dumping of solid Management waste by LAs cause land, water, and air pollution. CDS Process - Indiscriminate throwing of garbage by individuals creates water and land The CDS Colombo was initiated under the pollution. guidance and the support of UNCHS (Habitat) - Aggravated health and World Bank in January 2000. Prior to the problems - Poor source separation, CDS, Sustainable Colombo Core Area Project improper handling of (SCCP) was in operation with the technical hazards and clinical waste and financial support ofUNDP and UNCHS in create serious health Colombo Municipality and two adjacent problems to the citizens. municipalities called Sri Jayawardene pura - Destroy the natural Kotte and Dehiwala Mt. Lavinia. These three ecological balance in the project area. municipalities make the Colombo Core Area. CDS is working in close collaboration with SCCP. (i) Water supply - Water pollution may occur sewerage and due to excessive storm water consumption of water by CDS Colombo is being developed through a drainage industries in the project participatory process. Three key principles area. being applied to develop the CDS Colombo - Poor storm water are: discharge/treatment facilities cause environmental and health problems - -Lack of sewage facilities a. Whole CDS process should be organized in most part of the project area can contribute to on a consultative process, land, and water pollution - -Poor discharge of storm b. Ownership of the CDS and the water can contribute to responsibility of CDS implementation spread communicable should be remained with the respective diseases. municipal council; and U) Agriculture and Fisheries - Excessive use of c. Its main focus should be on the poor and chemicals and artificial on identifying city level investment fertilizers cause land opportunities. degradation - Poor soil erosion control causes land degradation City Development Strategy (CDS), South Asia Region -33- There are several partners involved in the development of CDS for Colombo Core Area. They are namely: Central Government line Ministries Western Province Provincial Council Three Municipalities CDS working groups I Focus Area CONVENER - COMMISSIONER OF LOCAL working Groups GOVERNMENT WPC Stakeholder groups from private sector, NGOs and civil society organizations National Partner Organization CDS Consultant appointed to the Tasks Force Under the concurrence of two line ministries Secretary to the Ministry that are responsible for local government and of Provincial Council and urban development, a CDS Task Force at the local government Provincial Council level has been established -Additional Secretary (technical) for the overall coordination of CDS program Ministry of Housing & Urban Development in Colombo Core Area. The Western - Secretary to Ministry of Local Provincial Council coordinates the CDS Government, Western Provincial Process with the Chief Secretary chairing the Council CDS Task Force. Members of the Task Force - Municipal Commissioners of the three represent the following . agencies and the municipalities • Deputy Municipal Com- interest groups: missioner (Development) of CMC • Municipal Commissioner of KMC • Municipal Commissioner of DMMC - National Level Organizations • Deputy Director General, Urban Development Authority (UDA) • Private Sector Representatives (02 members) • Representative from BOI • Civil society representatives (02 members) • Two advisers to assist the Task Force • Representatives of National Partner Institution Municipal council plays an active role in the CDS process. At municipal level CDS Working Group has been established in three municipal councils for developing the development strategies through participatory consultation process. Each CDS working group is assisted by a Consultant appointed by the National Partner Organization for City Development Strategy (CDS), South Asia Region -34- organization of CDS process at municipal the Municipalities, Provincial Council of the level and to facilitate the focus area working Western Province and the UNCHS (Habitat). groups discussions and to organize City Level For this purpose, the SEVANATHA Urban Consultations. Composition of Municipal Resource Centre, an Urban Based NGO was Level Working Group is as follows: identified considering its contribution to the recently implemented City Consultation :~~~;ii~~q~~&~:~TM~~f!AL ·. Project under the Urban Management Programme (UMP) of UNCHS (Habitat) for '~ ··~ ' ' Colombo. Importance of CDS CHAIRMAN - THE MAYOR City Development Strategies Program (CDSs) is a major and recent initiative of UNCHS (Habitat) and the World Bank. It reflects the Convener - Municipal Commissioner increasing importance of urban regions as centres of population and engines for Facilitator- CDS Consultant economic development. Members Heads of Departments of the CDS has become important in context of MC Colombo because CDS is being introduced as Representatives of govern- a proce~s to develop the good governance, ment institutions (UDA, economic development and social inclusion SLLRDC, NHDA etc.) for poverty reduction. Members ofNGOs and Civil Society Groups The approach of development of CDS Members of private sector Colombo is a participatory, consultative and a organizations (key private bottom-up process. The decision makers of sector associations) CDS are key stakeholders in the city rather than experts who are not affected by respective city development processes. Focus areas have been mainly identified by the member of the CDS Working Group based on CDS process would position the Colombo in the analysis of current priority issues and context of globalization for better urban development opportunities available within development and for national economic and outside the municipal area. Common development. Cities will be preparing for their Focus Areas identified by three municipal own development strategies and taking council areas are: initiatives to search resources within the city as well as they demand it from the national Poverty and Social Sector Needs government and donor agencies. Cities would Environment and Infrastructure develop institutional capacity to introduce Local Governance and City Management their own financial instruments based on the City Economy city assets to raise funds within and outside for city development. National Partner Organization In this context, three municipalities in CCA would improve the efficiency, effectiveness A National Partner Institution will facilitate and adaptability of city management systems. the CDS process acting as a mediator between At the same time in order to realize its vision City Development Strategy (CDS). South Asia Region - 35- for city development, actions would be taken International level support organizations for decentralization, devolution, the good World Bank governance by city authorities. UNCHS (Habitat) UNDP DFID-UK Linkages With the Bank Operations JBIC US AID World Bank country office in Sri Lanka is not NORAD and many other bilateral directly involved in the CDS Colombo. But agencies the Bank office has been informed all the development of CDS process in Colombo. Progress Officer in charge of urban development in Colombo office has participated in city CDS Colombo started its activities in January consultations, CDS Task Force meetings and a 2000. It was planned to complete the CDS donor meeting held at WPC Chief Secretary's consultation process and to present the office with regard to CDS Colombo. Comprehensive Development Framework for Consultants involved in CDS studies have Colombo Core Area and the City Assistance consulted the Bank as and when necessary for Program by the end of Juz 2000. Progress of obtaining policy and program information CDS Colombo as at 15 May 2000 is as related to urban development. follows; Key Stakeholders • Established CDS Task Force at Western Provincial Council City level • Established CDS Groups at three Municipalities Three Municipalities • Prepared a briefing note about CDS - Relevant Government Agencies (National Colombo in both English and local Housing Development Authority, Sri languages Lanka Land Reclamation and Develop- • Organized series of round table ment Corporation, Road Development discussions with partners to make them Authority, Urban Development Authority, aware and familiarize the CDS process Central Environment Authority) • Appointed all Consultants to Task Force, Banking, Private Business Sector and CDS working groups and studies Chambers of Commerce • Linked CDS process with other ongoing Civil Society Organizations (CBOs, Thrift projects and activities in municipalities and Credit Programs, Women Group, (e.g. SCCP and UMP etc) Youth Federations, Taxpayers • Prepared draft reports on following three Association, Small Traders Association, studies by employing local consultants Environ-mental Federations, City watch group, Religious Group, Academic Groups Update and Review of Poverty Profile of ) Colombo Provincial Council level Economic Analysis of Colombo Core Western Provincial Council Area National level A review of Past and Present Development Ministry of Housing and Urban Efforts of Colombo Development • Conducted series of consultations I Focus Ministry of Provincial Council and Local Group Discussions with relevant Government stakeholder groups. City Development Strategy (CDS), South Asia Region - 36- • Held two city level consultations for KMC • City management has realized that their and CMC under the following themes; cities have to be livable, competitive with other cities, bankable to increase the City Consultation for Formulation of CDS economic productivity and need to be for Sri Jayawardenepura Kotte Municipal culturally vibrant. Council Area on 27 April, 2000 • CDS process - participatory consultation - Vision 2010 for Colombo on Corporate has become an effective approach to Sector Perspective on 9 May 2000 improve the good governance (commitment to transparent and open local • Draft City Consultation Proceeding reports government) are being finalized for CMC and KMC • CDS helps to change mindsets of • City level consultation for DMMC will be stakeholders (CDSs change the way the held on 13th June 2000 stakeholder think about the development • Broad Based City consultation will be held and management of the city) 22"d June 2000. • Linked to existing city plans and programs • Two main outputs of CDS Colombo will like SCCP, UMP and Colombo be available by end of July. Metropolitan Regional Structure Plan • Municipal administration has taken Comprehensive Development Framework initiatives to establish human resource and (CDF) and institutional development units within the City Assistance Program (CAP) municipality to realize the proposed vision of the city (City Development Sub Lessons Learned Committee in KMC improving service delivery and environmental improvement What we learned so far from CDS city work and the proposed Database Unit in consultations are: DMMC are current initiatives). • Continuity of the present CDS process has • For the success of CDS, the support of been found important by the city political as well as committed civic management and stakeholders. After city leadership is important. consultations in all three municipalities, it • A wider participation of stakeholder would be necessary to make sure that CDS groups is vital for formulation of a shared will be institutionalized in an appropriate vision for the city. way. • Once the vision for the city is developed it becomes the driving force to get the Follow-up on CDS participation of all stakeholder groups and to mobilize resources to realize the Task Force established at provincial level common vision through city level should be continued for coordinating and strategies. monitoring CDS Action Plans and to assist in • Participatory consultative process is the resolving legal and administrative conflicts important process to identify the most between local authorities and central pressing needs of the citizens and to share government agencies and line ministries. the ownership of CDS with council and the key stakeholders. CDS Colombo will be preparing a detail .. • Professionals and partner organizations follow -up action list after the Broad Based play a facilitating role. Cities now directly City Consultation and based on the interface with key development actors Comprehensive Development Framework and such as private sector and donor agencies. city level action plans. City Development Strategy (CDS), South Asia Region - 37- 10. Lessons Learned While several lessons have been learned up till • Qualified human resource is scarce and not now in the CDS processes in the South Asia properly allocated. Equipment and software Region, it is important to outline the following to support effective management are far brief messages to translate them into immediate from adequate. gains and wins for cities implementing or preparing City Development Strategies. Key Elements for a Successful CDS. Problems Identified through CDS. There are only a few; however, critical --and very difficult to obtain-- elements that every The issues identified through the CDS process CDS should incorporate in order to enhance the are in fact very similar in its complexity and probabilities for success: scope in the participating cities. Among the most common problems are: • Ownership of the process is vital. It should exist at all levels prior to starting any • Deficiencies in physical infrastructure; process, and be shared by all stakeholders. particularly in the provision of basic services like water supply, sanitation and solid waste • Community and overall stakeholders management; as well as inadequate participation has been shown as the single transportation and deteriorated environment. most important pre-requisite for developing a CDS. The initial success of some of the • Revenues generated by municipalities are on-going CDS is largely attributed to the insufficient to finance the municipal fact that people from a wider spectrum of infrastructure and services. The city budgets stakeholders were placed in the center of the can hardly cover the main investment process, which was completely missing in projects, thus relying heavily on overseas the past. development agencies resources and central government fund transfers. • The CDS should be part of a comprehensive approach and not a stand-alone initiative, to • The administrative framework to manage enhance the possibility of institutionalizing the urban areas is extremely fragmented and internalizing the process in the near with highly centralized and uncoordinated future. functions among urban sub-sector agencies. The planning capacity of core agencies is • The linkage between the long-term strategy severely constrained by lack of expertise, and most immediate investment plans and and absence of political commitment and actions --resulting of the CDS-, require a institutional incentives. direct link for financing the high priority investments, as well as other key activities, City Development Strategy (CDS). South Asia Region - 38- in order to validate the exercise and • In some cases, there is a pressing need to transform into reality the proposed strategy. start an organizational reform and improve the institutional coordination, prior to Every case has shown to be very different on its initiating the CDS; in some others, this is an expectations, limitations, objectives, scope and issue identified during the CDS process. goals. However, it is also clear that the existing models or approaches can be used and adjusted • As part of the proposed comprehensive to the peculiarities of each city. approach, some donor agencies and NGOs have recognized the need to further • The people's willingness to participate in the coordinate and concentrate its efforts on a process --including the poor-- is strong, single goal and a shared vision define·d by since they had hardly been given proper the CDS exercise. opportunities. Sub-sector agencies recognize the need for coordination and • In the CDS for the metropolitan areas there there is positive motivation of key players is a consensus on the fact that an active and from the private sector and NGOs. equitable participation from neighboring cities or suburban areas is vital for success. City Development Strategy (CDS), South Asia Region - 39- 11. Conclusions and Recommendations • The CDS process is evolving and will donors are expected to play an extensive advance from cycle to cycle. It is role in the process by making a long- imperative to regularly update and term commitment to provide support to transform the CDS into a dynamic the cities during the implementation of instrument to make the process work the CDS, and by strengthening the efficiently. If it is done as a one time coordination among donors, particularly event, it will not yield the expected results and people might lose confidence in sharing strategies on institutional in it. development aspects. • The CDS approach is better organized in • Mainstreaming CDS at a state level has a holistic and comprehensive manner. It shown to be useful to enhance becomes a powerful instrument when it innovation and competition for better is a part of comprehensive urban sector performance among cities, as well as for reform program. Therefore, --if not replicating and scaling-up purposes. already included as part of the CDS-- it However, these initiatives, in order to should be complemented with analysis succeed, should be built upon a strong on the cities' environment, economy, policy base and commitment to reform, and social development of all its and based on a participatory approach inhabitants. and a demand-driven process. • When properly implemented, the CDS • City Development Strategies are could be used to reinstate the faith of the intended to help cities improve their people in the municipalities and other governance and make new strides in related agencies. Then, the remaining qualitative and quantitative challenge is to transform the CDS goal~ improvements in service delivery. Cities and objectives into actual projects. will be able to take action to mitigate • The CDS should be provided with a crises; to plan proactively, to set out the more solid institutional basis to make it goals and operational activities function as a core urban planning and considered important by all stakeholders; management tool. Without and to achieve a smoother transition into institutionalization, the partiCipatory future growth. Cities that are governed process will not be sustainable, and the and managed well can expect to improve process may be distorted by excessive the efficiency in scarce resource political intervention. allocation, and in the administration and • In view of the complexity of the tasks service provision, as has been shown in being identified through the CDS the dozens of cities around the world. ANNEXA Making Cities Work For All: Global Action Plan for City Development Strategies City Development Strategy (CDS), South Asia Region ANNEXA CITIES ALLIANCE MAKINGO'I'I ~ \\ORKFORAI JT J Global Action Plan for City Dcvelopll.Dlt Strategies • Anew approoch to provide sustainable livelihood, safe and secure living enviro~ and improved quality of life ofthe urbm poor. • Build self-sustaining caprity through ifllroved governance • Enhance productivity of the city and link the city economy to the region and the nation • !Xvelop new:frarnMorks for pnticipnOty decision-tmking and analytical expertise for strategic plarming Citv Development Strategy (CDS). South Asia Region New Approach to Cities in an Urbanizing cities and nations. The rich diversity in cultural World. The 21 51 century will witness massive and economic assets of nations are often and rapid urbanization, with two billion new concentrated in cities, and the power to act on residents in cities of the developing world in the these resources is gradually being transferred to next 25 years. This process, though stimulated cities, either by deliberate institutional shifts by economic development, has also led to sharp through decentralization policies or by political divisions in growth between cities and among and economic reality. people. The 21 51 century will also witness increased urbanization of poverty. Nearly one Governance in Cities. Improved urban billion urban residents in the cities of the governance is one of the most important keys to developing world are likely to be poor if current success in making cities work, not only to trends continue. The challenge for the cities is to address the challenge of urban poverty, but also improve equity, efficiency, productivity, and to harness the opportunities that globalization governance in order to provide sustainable provides. With decentralization, the task of livelihoods, safe and secure living environments, marshalling c1v1c capacity to prepare and a better quality of life for the urbari poor. development strategies falls increasingly to city The City Development Strategy is one tool government. Much work will be needed to put which, along with squatter upgrading, is being enabling conditions and the norms of good sponsored by members of the Cities Alliance to governance into place so that cities can respond achieve sustainable urban development. to the challenges before them. The norms of good urban governance characterized by This Action Plan is a call to mobilize the global sustainability, decentralization, equity, urban community to take part in developing a efficiency, transparency and accountability, new approach to urban development, starting civic engagement and citizenship, and security with City Development Strategies to be financed are mutually reinforcing. The participation of in nearly 100 cities, affecting 200 million all the key stakeholders is essential for this residents and I 00 million poor over the next five process. Participatory governance is the only years. The effort will have impact far beyond sure means of achieving an authentic vision of numerical totals. Cities Alliance and the CDS the future and the only sure way to achieve are intended to set new standards and develop improvements in economic and social status for new tools of participatory decision-making at all citizens. The City Development Strategy the city level and to reach self-sustaining promoted by the Cities Alliance is specifically capacity in cities and nations so that cities might designed to provide such a framework. reach an entirely new plane of development in this urban century. Value Added. With improved governance and strategic planning, cities will attain new levels Decentralization. This challenge for cities is of efficiency and productivity . Tens of trillions due to the momentous change in global of dollars will be needed as investments in cities relationships of exchange, coupled with the to improve levels of service of present progressive shift in the balance of power populations, especially the poor, as well as to between cities and nation states. The urban accommodate the new urban dwellers of the transition that will produce 50 million-sized future. Past experience has shown that only a cities in the next 25 years is not merely a matter small fraction of these investment needs is likely of numerical change. It is also an historical shift to come only from donor resources. Cities will in political and social relationships between have to improve their financial resource base, City Development Strategy (CDS!. South Asia Region improve the operation and maintenance of contributions, and fully informed citizenry. In existing infrastructure and improve its credit- addition, CDS process brings to life at the city worthiness for accessing domestic and level, the comprehensive approach, including the international resources. coordination of donor assistance, which is at the center of comprehensive development City Development Strategies are intended to framework. help cities improve its governance and make new strides in qualitative and quantitative City Development Strategies address at least improvements in service delivery. Cities will be four broad themes, two may be thought of as able to take action to mitigate crises, to plan establishing enabling conditions for growth and proactively, to set out the goals and operational development and the second two as outcomes. activities considered important by all Taken together they are seen as the fundamental stakeholders , and to achieve a smoother elements for sustainability in urban transition into future growth. Cities that are development: governed and managed well can expect to improve the efficiency with which their scarce • Good urban governance; as characterized by resources are allocated. Many cities can also the norms in the campaign improve efficiency of administration and • Fiscal balances, i.e., cities that are credit- service, as has been shown in dozens of cities worthy; around the world. • Livability, especially for the urban poor in environmental, social, and economic terms; A second area of value added is for cities that • Competitiveness, i.e., the ability to improve plan their strategic moves over decades can productivity. expect to waste fewer resources on "catching up" with rapid growth and poorly-sited facilities Specific outcomes expected from the and services. Many cities have shown that a participatory CDS process will vary in well-managed growth can extend services to low accordance to the specific context, but are likely income populations in a way, which allows to include: graduation to higher standards of service in accordance with public and private capacity to • a collective VISion for the city that is pay. A third area of value addition is in responsive to its comparative strengths and expanded productivity, for both the organized advantages in the national and regional and informal private sector as well as the public context, that is "owned" by the city and all arena. Cities that understand their competitive the stakeholders position, and move wisely and quickly to • an agreed strategic framework for growth capitalize on their comparative advantage, can and poverty reduction and identified action expect worthwhile economic returns .. areas with assigned roles for each stakeholder group, Content and Process of CDS. The City • demonstration and pilot activities to be Development Strategy is seen as an instrument carried out using internal resources, to develop a civic capacity for collective vision • increased capacity in the city to conduct and action. City Development Strategies are strategic development planning, produced using participatory techniques and • an investment framework with sources of processes proven over decades of assistance, for finance, including donor support, instance, stakeholder buy-in and counterpart Citv Development Strategy (CDS/. South Asia Region • at the national or regional level through The first two years all partners of the Cities associations of local governments and other Alliance will be on a learning curve. This will institutions, to spread this capacity to other require more detailed analysis of demand for cities. work in each of the world's major regions, and entail developing the tools, including analytical CDS Action Plan. In the next five years, the frameworks, a guidebook, and monitoring Cities Alliance CDS activities. will be indicators. Therefore in the first two years of the undertaken in nearly I 00 cities affecting lives of Cities Alliance, 7 to I 0 cities will be taken up over 200 million urban residents. CDS costs can each year. In the subsequent years, I 0 to 15 vary greatly-say between $ 200 thousand and cities will be sponsored each year. Taken US$1 million per city-and their leveraging together, these CDS will generate investment at ratio is equally variable. But the measure of local level of around US$ 4000 million by success of the CDS Action Plan is not only the stakeholders, sub-national and national numerical impact in cities helped or lives governments, bilateral and multilateral agencies. improved, although these changes are important. This will affect the lives of 200 million urban Rather, the measure of success is an impact on residents and I 00 million poor. changes in institutional behaviors. At the global level, this would mean setting a new Strategies in cities will differ greatly in content, standard of practice for city development scope, and focus. However, in most cities strategies. By the close of the decade, the CDS several themes will be central, governance, will have become a standard approach in the poverty, economic growth and sustainability. In practice of urban development, one that is more selected cities, an effort will combine both City easily achieved and more effectively Development Strategies and Squatter Upgrading implemented than the traditional urban master efforts. plan, the obsolete cousin ofthe CDS. The Action Plan builds on the comprehensive Within specific countries, the CDS should have approaches now being adopted in major established a link between the development of development institutions and extends the urbanized regions on the one hand, and on the programmatic efforts of agencies in the UN other, conceptual and empirical ties to the system and bilateral donors. Moreover, the Plan national decentralization and development includes a built in learning process. Already, agenda. The CDS should help national and city more than 30 cases are underway and form the leaders to understand both the opportunities and sample of pilot experiences from which much bottlenecks in productivity and growth. The has already been learned. Cities Alliance will produce analytical frameworks and monitoring indicators with which to measure these outcomes. ANNEXB Kathmandu - City Profile Administratively, the City has been divided into 35 wards. Kathmandu Demography, Labor Force and Income Nepal Demography With increasing economic activities and Population Kathmandu City = 575,652 available facilities as well as glamour, Total Urban Population= 2,990,308 Kathmandu has been attracting people from different parts of the country. According to General Description of the City 1991 census, the city population was 421,258, which is estimated to be 575,652 in 1998 with Kathmandu, the capital city of the Kingdom of an average growth rate of 6.0 %, and residential Nepal, is the only one Metropolis in the density of 176 people per hectare. The average country. The city is situated in a valley at an household size of the city is 5 persons. The altitude of 1,350 meters. Kathmandu, together floating population of Kathmandu city is with other settlements of the Valley, is among estimated to be 50,000 during daytime from the oldest settlements in the central Himalayas. nearby cities and villages like Bhaktapur and Historical monuments, ancient temples and Lalitpur. This is due to the presence of major shrines, golden pagodas and inspiring deities government office headquarters and the Central have made this City an open-air museum and Business District (CBD). an inexhaustible historic, artistic and cultural interest to explore. Kathmandu City was built in 723 A.D by King Migration and ethnicity Guna Kamdev. According to the legend, Kathmandu Valley was a big deep lake before Migration in the city has been a major trend Manjushree converted it into habitable living because of CBD as well as other urban space by cutting the hill at southern part of the facilities. It is estimated that 20,916 people Valley. migrated into the city in 1998. The numbers have probably increased over the past few It is said that Kathmandu City was named after years. Apart from such migration, because of "Kastha-Mandap ", a temple made of a single high commercial value of land, many tree built in 1596 AD. Before King Prithvi indigenous inhabitants prefer to sell their land Narayan Shah united Nepal into one nation, at and move towards the fringe areas. In 1991 the end of the 181h century, it was a terra census, it was found that the migrant incognito. The world came to know about this population consists of 63 different ethnic great valley only after 1654 AD, through a map groups. These groups are divided into various drawn by Samon d'Abbeville. castes and class system. The largest group aside from the major caste i.e. Brahmins, Chhetris The municipal area is currently spread over and Newars are the Kirats (includes ethnic 5,076 hectares with different growth patterns. groups like Rai, Limbu, Thakali, Tamang, The City can be broadly distinguished into Magar etc.) who are engaged in military three sectors as Historic City Core, the City service, business and industry. Center and the City Outer Ring. II Cities Data Book, RETA 5846 City Profile: Kathmandu Facilities & Services personal and commercial service (33.0%) while others are involved in social service (28.6%), Kathmandu is also a major center for health consumer service (20.8%) etc (Fig.2). A large service and education. The presence of population, most of whom are migrants, is country's best hospitals, schools and colleges involved in the informal sector. These activities has helped the city in generating its human has helped them in sustaining and supporting resource and income as well as providing their family services to other parts of the country. The adult literate population reaches to 78.2% and the The income level of the city is comparatively school enrollment rate is 86.6% (primary- higher than the national per capita. The Nepal 86.4%, secondary- 86.8%). Figure 1 shows the Living Standard Survey, 1996 has shown the number of schools and colleges that is average per capita income of US$360. which is contributing to increase the literacy rate of the much more higher than the national per capita city as well as of the country itself. (US$222). This is because of the concentration of major economic activities and human Similarly, in the health sector, the city has 21 resources in the city. private hospitals/nursing homes and 15 government hospitals with 197 hospital beds Due to continuous migration from different per person. These hospitals include some of the areas and a large number college graduates best hospitals of Nepal. No. of Schools & Colleges Enllloyment by lndus1Jy I• Seanay em I i 15.3% 200 i•=rell l ~ I IDCalslJrer : •Publoc 20.8% 1 Servire - - - - 1 : •Private : l_______j . D SociaServire 50 I.Ohers 0 Prim.tuy L. Secondary Secondary College ~ School School Figure I (source: District Education Office) each year, employment has become a major problem. The government has been successful Life expectancy of the city is 67 years, higher in producing human resource but has not been than the national life expectancy of 56 years. able to bring about related job opportunities in Other health related activities such as the city. Thus it is leading to tough job vaccination and family planning programs have competitions and underemployment. Though been quite successful in the past years. Users of the city has various types of manufacturing family planning methods have increased to industries, it has not been able to help the 104,239 (1998/99) from 96,327 (1996/97). population a lot, since most of the employees in these industries are migrants as unskilled labor. Labor Force and Income Political Structure Although Kathmandu was traditionally an agricultural town, it now has diverse economic Democracy was restored in Nepal only 10 years f· activities. A considerable number of ago. The nation got a new constitution in 1990, economically active people are involved in which is politically believed to be the most 21 Cities Data Book, RETA 5846 City Profile: Kathmandu liberal and socially progressive. The 1990 executive rights and acts as a bridge between constitution envisages a parliamentary central and local government. democracy with constitutional monarchy. It guarantees the standard civic and political Urban Infrastructure rights of the citizens, provides for an elected government accountable to the parliament and Being the only metropolis of the country, it has declares, " the source of sovereign authority of better infrastructure facilities compared to other the independent and sovereign Nepal is urban centers of the country. Of the total inherent in the people .... " population, 99.1% have electricity connection and 87.98% have telephone connection. Urban Governance However, some of the basic municipal services like piped water supply (66.79%), sewerage The country is now moving towards (42.07%) and garbage collection (75%) system decentralization process by strengthening local are still not adequate. Many of the water supply authorities. Recently, the Local Self- and sewer lines are more than 100 years old, Governance Act, 1999 has been in enacted, designed to cater limited population. Water which is trying to empower local governments. supply distribution system is in linear pattern. The Act has given local governments authority About 40% of the water supply is lost due to in diverse sectors like taxation, physical leakages. Similarly, due to limited capaciy of development, water resources, education and sewer and drainage lines, roads often get sports, culture, transport, health service, social flooded during the monsoon. welfare, industry and tourism. Aside from these functions, municipalities can handle other There is a high potential of privatization of miscellaneous functions, as per the decision of various utility services. Recently, it has been municipal board. Though municipalities have practiced in some sectors like household waste full authority to execute the listed functions, it collection in selected areas. Similarly, bus park still has to rely on the central government management has also been delegated to private authorities as the Local Self-Governmenance party under Public Private Partnership Act has just been introduced. Program. KMC is also looking forward for such partnership in various other sectors. Kathmandu Municipal Corporation (KMC) is divided into 35 wards. The people elect one Communication services in the city are inter- chairman and four members (including at least linked by local, STD, ISD, cellular phones, e- one woman) from each ward once in five years. mail and internet. Nepal Telecommunication People from every ward elect their respected Corporation is the only agency providing Chairman and ward members as well as the telephone services nationwide including distant Mayor and Deputy Mayor of the City. telecommunication like STD and ISD. Altogether there are 197 council members, Recently, it has introduced cellular system and including the Mayor, Deputy Mayor, ward distributed 4,100 mobile phones. There are chairmen, ward members and 20 nominated altogether nine internet service providers (ISP) members. KMC has a Municipal Board of 39 with total subscribers of 8,852 only in the city. members including all the ward chairmen and two nominated councilors. The Municipal Transport Board, consiting of the Mayor, Deputy Mayor and 35 ward chairmen and two nominated Kathmandu City has good radial road network members. Ministry of Local Development connecting the City to the other parts of the deputes a senior staff in the municipality as a country. The City is connected to the eastern secretary of the Municipal Board, who has and western parts of the valley through Amiko 31 Cities Data Book. RETA 5846 City Profile: Kathmandu and Tribhuban Highways. Whereas, feeder indicated by house pnce to income ratio of roads connect the northern part of the Valley. 10.6. The City is served by a Ring Road, which also acts as the City boundary in most of the Although housing development systems are not stretches. With the current trends in the norm, there is increasing trend of residential urbanization, many experts have proposed land development practices through different inner and ring roads. The state and condition of mechanisms (land pooling, sites and services, road networks widely varies from motorable to guided land development). Minimum standard non-motorable. The historic city core has a for infrastructure provision has not yet been perfect pedestrian network but is hardly able to fixed so far for such land development cater to the present transportation needs. activities. Land pooling system is the popular practice which is self-financed by the The City travel mode is still dominated by beneficiaries themselves where the government walking which is reasonable due to short plays only a facilitating role. The cost of land distances. This mode is also encouraged development varies according to the situation. because of insufficient public transportation. At current price, about US$12.45 million has Buses and tempos are the dominant modes of been invested in such land development public transportation for which the private activities within the last decade. sector is playing a major role. In recent years, use of private vehicles like motorcycles and Increasing economic disparity and pressure on cars have significantly increased. urban land leads to limited access for housing. The number of housing permit issued has The strategy plan for Kathmandu Valley decreased substantially from 5,107 (1994) to suggests pedestrianizing the city core the extent 2,250 (1998). The building construction trend possible. Under this approach, the stretch of is shown in figure 3. The investment in housing Kathmandu Durbar Square area has been was US$7.6M (1983-84) and out of the total pedestrianized. However, significant impact amount, 30% was spent on land purchase, has not been achieved as local people often which was estimated to be 50-60% of total oppose the idea. Road upgrading, drainage investment (1995). The average construction improvement, road widening, construction of cost per housing is estimated to be about pedestrian over head bridges are the recent US$38,000. developments in the Historic Core and City Center carried out by Municipal Infrastructure Building Construction Trend Improvement Project (MIIP) of KMC. This 1000 r------------, project has improved the traffic condition of the = 5000 ....,__ _ _ _ _ _ _ _---l +-----'.. 'i ~ 4000 t-----~ city to some extent. : --------------1 ............... ~~~=-------1 r3000t------- ~ 2000 t---------....___,.--~----1 Housing access and affordability • 1000 t - - - - - - - - - - - - - - - - 1 Land and housing development system in 1884115 1885/K 1881187 1887111 1881118 Kathmandu is often haphazard and unplanned. Year Usually people seek for basic services such as Figure 3 (Source: KMC, 1999) drinking water, drainage and road network only after building the houses. High rate of land Individual loans for housing are formally fragmentation is due to the social trends as well available through finance companies. The as land brokers' current practices. It leads to mortgage to credit ratio is 50 %. The mortgage unplanned and inconvenient settlements. loan for women is very low, less than 1%. In Housing is unaffordable for majority of people the present context, housing loans made 41 Cities Data Book, RETA 5846 City Profile: Kathmandu available through financial institutions are minimal and access of the poor (disadvantage Environmental Management group) to credit is questionable. Rapid urbanization of Kathmandu City in the last decade has resulted to considerable change in the environment. Despite the favorable Housing Quality geographical condition and a pleasant. climate, increasing population, number of vehicles and The quality of housing, related with the basic unplanned and inadequate infrastructure has services and facilities, is not so satisfactory, created several environmental problems. which differs widely in the different sectors of the city. However, dwelling units for On average the city produces 563m3 solid- Kathmandu are significantly above the waste per day. KMC's collects about 75 % of minimum size of housing units by the average the total waste generated from the streets and floor area represented by 10.72 square meter containers. The waste is carried to a transfer compared to the 5 square meter of minimum station and then to the Gokama landfill site for urban standard. The average floor area per final disposal. However, the collection and person is low compared to the over all per disposal system needs to be improved. There is capita floor space of urban areas given by 1~.5 no strict restriction waste disposal, thus waste square meter in year 1991. The housmg is dumped on the streets at any time. KMC is accessibility system has given rise to the owned now promoting participation of private and tenure type as represented by 60%. This figure community based initiatives in waste is comparatively lower in national context of management. Presently, two private companies self-owned housing given by 94.6%. The renter are working with KMC for door-to-door tenureship accounted for 30%. This is also due collection programs in selected areas. This has to the fact that most of those in rental been appreciated by the local pe!Jple. Similarly, accomnl.odation have their own housing in many other community-based organizations are other parts of the country. In Kathmandu, the also working in this sector with their own housing bears a commercial value and i~ also initiatives. Aside from household collection, treated as a commodity. The house pnce to reuse and recycling of waste at local level is income ratio is 6.4%. The apartment system of also being introduced. housing owned by single owner and rented to families in flat system is a rising trend in rental Beside solid waste disposal, sewerage disposal housing. Though the Apartment Act has been has also been one of the major problems in the introduced, at present, it has not yet been city. Only 42% of the households have practiced in significant form. sewerage line connections, while 40% have septic tanks. As the city lacks, wastewater The high population growth rate (6%) primarily treatment facilities, the outlets of the sewer due to migration trend has led to the gro~ of lines are directed towards the nearby rivers, squatter settlements in Kathmandu. Margmal causing severe river pollution. Recently, ~C and unattended public land like riverbanks and has introduced constructed wetland for treatmg steep hill slopes are favorable locations wastewater on . a pilot basis. However, this squatters. Resettlement and regularization of small-scale wetland only contributes as a squatter settlements has not yet .been practiced. demonstration plant to introduce the technology Housing is mainly owner-bmlt through an for local communities. The City needs several incremental process. Social housing and sub large-scale treatment plants to treat about 15 tenant is almost negligible in the City. MLD of wastewater currently being discharded into the rivers. 51 Cities Data Book. RETA 5846 City Profile: Kathmandu .. With the growing urbanization of the City, • quality of the air is also deteriorating. A few air Natural and man-made disasters quality improvement programs have been initiated in the City in past two years. Recently, There has been no significant . disaster in the government decided to follow Euro-1 Kathmandu City in the past 10 years. A major standard for vehicle emission and electric three earthquake, however, destroyed much of the wheelers (SAFA TEMPO) have replaced over city in 1934. 600 diesel three wheelers. Major Urban Development Projects, Similarly, international agencies are also helping the government in conducting various Strategies and Policies activities related to pollution control. Ministry of Environment in collaboration with Danish An officially approved urban development Government has recently launched a strategy does not exist. However, most of the comprehensive program for the improvement urban development projects are based on of air quality in the Valley. This program Kathmandu Valley Urban Development Plans includes vehicular fuel quality improvement, and Programs: Strategy· Plan for Kathmandu vehicular emission control and enforcement Valley (Halcrow Fox et.a/. 1991). Metropolitan program, and ambient air quality monitoring Infrastructure Improvement Program under and awareness campaign. Kathmandu Urban Development Project was one of the major projects completed in recent years. KMC is currently in the process of Culture and Heritage developing a City Develoopment Strategy. Kathmandu is a city of living heritage. A number monuments, including the Hindu Ministry of Housing and Physical Planning temple of Pashupatinath and Buddhist Stupa (MHPP) is the responsible government agency Swayambhunath are precious assets of the City. for physical planning of urban areas at national The city has many other ancient and historic level. The approved plans are implemented landmarks. through the Kathmandu Valley Town Development Committee. Most urban Among the Seven World Heritage Sites of development projects are implemented through Kathmandu Valley, four ofthem are located in assistance of donor agencies and the related Kathmandu city alone, which are government agencies. Swayambhunath Stupa (4th century A.D), Pashupatinath temple, Hanuman Dhoka Royal palace (14th century A.D) and Bouddhanath Stupa (15th century A.D). Besides these cultural and historic places the typical courtyards of the ancient city and houses with its intricately hand carved doors and windows are also major assets. Kathmandu celebrates continuous flow of interrelated festivals throughout the year that is mysterious, colorful and full of fun. It reflects the life, joys, fears, dreams and sorrows of the City. These festivals are dedicated to specific deities and have been historically instituted based on legendary beliefs and superstitions. 61 Cities Data Book, RETA 5846 City Profile: Kathmandu • ,.