87974 Preface In February 2000, under the auspices and funding support of THE WORLD BANK, UNCHS (HABITAT) and UNDP, the Western Provincial Council (WPC) and the Colombo Municipal Council (CMC) launched a project to formulate a Comprehensive Strategic Framework and a perspective City Assistance Programme for development of the City of Colombo. Mr. Leo Fonseka, Former UNICEF Regional Urban Advisor for South Asia, was assigned as a Consultant to the CMC to guide its formulation. The aim of the exercise was to provide the city with a development strategy that would help improve the technical capacity of the Colombo Municipal Council through a participatory private- public partnership approach- an approach that can open up social and economic sector investment opportunities that could address many of the pressing needs, both of the present and future, of the Colombo Municipal Area. The recommended strategy is a CMC-centred one having organic links with all major urban development initiatives, current and proposed, in the City. The proposed strategy is based on the outcome of a series of in-house and public consultations that were conducted to obtain views from a representative cross-section of the Colombo citizens. Based on these views, the consultant was able to formulate the Strategic Framework that is recommended here. It is a four-pronged strategy. In formulating this City Development Strategy, ideas and suggestions were obtained from numerous key leaders of the private corporate sector, the civil society organizations, the senior professionals of the many related state agencies involved in city development and the senior functionaries of the CMC. The strategic framework recommended here is a result of a unique experiment with participatory, consultative planning. It is also a historical milestone in the 135-year old CMC development process. It aims at making the City of Colombo socially responsible, economically buoyant and administratively just. Undoubtedly, it is an unprecedented and landmark exercise. It opens out to us many new vistas to look at city development in a holistic manner. For this excellent collaborative effort, the City of Colombo is grateful to the World Bank, UNCHS (HABITAT), particularly to its Acting Regional Director for Asia and the Pacific, Mr. Disa Weerapana, UNDP, the Western Provincial Council, SEVANATHA and the Consultant, Mr. Fonseka. Also, I wish to thank Dr. Fahmy Ismail, Deputy Municipal Commissioner (Development) and the chairpersons and members of the four CMC Taskforces whose support and deliberations were the main source of and the force behind this strategy. !-!--~\ Omar Kamil "---· November 2000 The Mayor of Colombo 1 From SEVANATHA- The National Partner Institution UNCHS (Habitat) assigned SEVANATHA as the national partner institution to assist the Colombo Municipal Council in formulating this City Development Strategy. SEVANATHA considers it a privilege to have associated itself with this landmark exercise, the first ever comprehensive framework for social and economic development of the Colombo city. It is our fervent wish that this Strategy receives the utmost consideration of the Government of Sri Lanka and the Colombo Municipal Council and that its full implementation begins soon. We wish it all the success. K. A. Jayaratne President- SEVANATHA 2 Acknowledgements I wish to record my appreciation of the excellent support received from a host of individuals and agencies in formulating this strategy. Among them are the Mr. Susil Prem Jayantha, the Chief Minister Western Provincial Council, Mr. Omar Kamil, The Mayor of Colombo, Mr. R. W. Piyasena, the Chief Secretary and Mr. D. P. Hettiarachchi, the Commissioner of Local Government of the Western Provincial Council, Mr. H. R.De Silva the Actg. Municipal Commissioner, Dr. Fahmy Ismail, the Deputy Commissioner (Development), Mr. Asoka Gunawardena (Senior CDS Consultant, WPC) and SEVANATHA- the link agency that coordinated the exerctse. Our thanks are also due to the experienced and dedicated team of senior CMC officials who sat through many long hours ungrudgingly as members of the four CMC Task Forces that the Mayor of Colombo instituted to help formulate the Strategy. Their encouragement and cooperation made the strategy development task less arduous than expected. The full list of Taskforce members is given is annexed in this publication. May I also take this opportunity to record my appreciation of the cooperation received from: • the Chairpersons of the four CMC Taskforces, namely Eng. T. Kanagasingham (Director, Traffic Designs) Eng. Mrs. M.G. D. H. Jayasekera (Director, Engineering Works), Eng. Mrs. T. Mallawarachchi (Superintending Engineer, Designs) and Eng. Mrs. P. Karunaratne (Director, Training). • Eng. N. S. Jayasundera (Director, Drainage), Eng. L. R. Lalith Wickramaratne (Director, Solid Waste Management), Eng. Mrs. Visakha Dias (Director, Engineering Works), Eng. K. A. Nihal Wickramaratne (Superintending Engineer, CRMU) and Eng. Mr. N. I. Azoor (Manager Training). • Mr. Ananda Jayawardena, (Municipal Secretary), Dr. P. Kariyawasam (Chief Medical Officer of Health), Mr. Hemantha Gamage (Charity Commissioner), Mr. S. A. L. R. Samarawickrama (Director, Planning), Mr. M. D. H. Jayawardena (Chief Librarian), Dr. R. L. S. de Wijayamuni (DCMOH, Environmental Health), Dr. S.D. Eleperuma (Actg. Chief Medical Officer, Veterinary Services), Mr. M. J. B. Femando (Chief Internal Audit Accountant), Mr. Gamini Chandrasena (Legal Officer), Mr. Laksman Perera (Chief Lands Officer) and Mr. S. A. Gunaratne (Chief Health Education Officer) • The Federation of Chambers of Commerce & Industry, The National Chamber of Commerce, The Ceylon Chamber of Commerce, The International Chamber of Commerce of Sri Lanka, American Chamber of Commerce of Sri Lanka, Ceylon National Chamber of Industries, Women's Chamberoflndustry & Commerce, Mr. La! de Mel (FCCI), Mr. M. J. C Amarasuriya (ICCSL). And Mr. Eraj Wijesinghe . • The Rate Payers' Association of Colombo, • UDA, NHDA, SLLRDB • World Bank, UNDP, USAID, DFID, JICA, GTZ, JBIC, Leo Fonseka CDS Consultant 3 Contents Page Preface 1 The Execcutive Summary 5 Introduction 10 Major Urban Development Issues 11 Strategic Principles for City Development 22 The City Development Strategy The Recommended Strategy 23 The CDS Vision Mission 23-24 The Strategy Outline 25 The Foundation of the Strategy : Good Governance 26 Strategic Responses A. Management Efficiency & Governance 27 B. Under-serviced Areas, Heritage & Environmentally Sensitive Areas 30 c. Legislative Support for city Development 31 D. Physical & social Infrastructure 31 E. Private-Public Partnerships 32 F. Public Education & Awareness Building 32 The Major Key Result Area Interventions Increasing the Economic Productivity 34 Responding to Social Sector Needs 43 Reducing Poverty 56 Protecting and Developing the Environment 61 Other Strategic Responses 67 Annex: The Synergy between City Economy and Environment 71 Municipal CDS Task Forces 72 4 Executive Summary Urbanization is not the real cause of most of the urban problems. The main cause, often, is the lack of political and administrative capacity and commitment to manage the urbanization process effectively. The Colombo Municipal Council, assisted by the World Bank, UNDP, UNCHS (Habitat) and the Western Provincial Council launched a process in February 2000 to formulate a comprehensive Strategy Framework and a Perspective Plan of Action for the development of Colombo City. What follows here is its initial product- The City Development Strategy Framework. The City Development Strategy (CDS) recommended here for Colombo is a pragmatic four-pronged way to address four functional areas whose results are the key to systematic development of the City. The Strategy describes those as Key Result Areas (KRAs). It proposes major policy, programme and institutional adjustments to: • Respond to Social Sector Needs. • Increase Productivity & Economic Buoyancy of the City. • Develop Environment, Infrastructure and Amenities. • Reduce Poverty in the City. The Strategy emphasizes that, for coordination and sustainability and to uphold the cardinal poignancies of local government, future city development process must be led and coordinated by the Colombo Municipal Council in close partnership with the Western Provincial Council. It proposes that all future development work in the city be coordinated by a Mayoral CDS Steering Committee comprising senior representatives of all major stakeholders including the major Statutory Authorities engaged in city Development. To assist this Committee, the Strategy suggests the setting up of six Statutory Advisory Committees- four programme advisory committees (PACs) which shall be directly responsible for developing, guiding and monitoring various programme interventions in the four KRAs mentioned above, and two management advisory committees (MACs) guiding and monitoring municipal finance and municipal administration processes. In each KRA, the strategy calls for ensuring the presence of a few vital systemic responses that are critical pre-requisites for city development. The pre-requisites are: • Increased management efficiency, • Focus on under-serviced, environmentally sensitive and Heritage areas, • Private-public partnerships, • Enhanced legislative and enforcement support, • Expansion & upgrading of physical and social infrastructure and • Public education and awareness creation. 5 The Strategy also suggests some critical intervention arenas. They are: • Promoting a port-centred economic growth for the city; • Recognizing the economic importance of the informal sector, spurring its growth and mainstreaming it in the city economy; • Increasing the poor's capacity and accessibility to obtain lands, homes, basic services and income opportunities; • Creating an environmental friendly society and upgrade the environment quality of the city; and finally • Ensuring easy and affordable access to basic urban services. Cutting across these interventions will be common minima of managerial interventions such as human resource development, civil society participation, law reforms and their effective enforcement, optimizing the use of all available assets, policy coordination, and skills development and incentives. The expected outputs are • Higher economic productivity in the city, • Low unemployment, • Increased personal income for citizens, • Reduced poverty, increased ability to pay the rates, • Resultant expansion of the municipal revenue base, • Increased municipal revenue, • Improved health, livability, • Increased physical, mental and spiritual well-being of citizens. The recommended foundation for all the above is Good Governance. The strategy emphasizes the need for good governance as a vital first step to make any significant difference to the city's administration, livability, culture and public image. It stresses the importance of a strategic vision, consensus orientation, participatory mechanisms, rule of law, responsiveness, transparency, equity building, accountability and effectiveness as major characteristics of good urban governances. To achieve these desired heights in governance, this Strategy offers recommendations. Some of the major recommendations proposed in this regard are highlighted hereunder for immediate attention and action. 6 Colombo City Development Strategy: Initial Work Schedule Action Para Responsible Agency 1. Adopt the Vision and Mission 44-46 • The Mayor & Council ofCMC recommended in the CDS Strategy 2. Adopt a CMC motion and ope rationalize 55 • The Mayor Six Statutory Advisory Committees (2 • Dy. Commissioner MACs and 4 PACs) and charge them to (Development) study the new CDS strategy and submit six Work Plans within three weeks to implement it. 3. Publish a statement clearly defining the 52 • Ministry of Urban Development functions and working parameters of all • The Western Provincial Council major Government and Statutory Agencies, which have jurisdiction over the development of Colombo City. It may contain (a) Obligatory, (b) Optional, and (c) Concurrent functions separately. Concurrent functions are those that can be undertaken only with full agreement of the other agency/ies that have obligatory responsibilities over the related function. 4. Issue a national policy statement on 90-91 • Ministry of Urban Development Promoting Municipal-Private Sector • Ministry of Public Administration Partnerships enabling the municipal • Ministry of Finance ' councils to engage in joint ventures with • Sri Lanka Mayors' Association public realtors and investors. 5. Review and revise existing legislation and 109& • Ministry of Justice create new ones necessary to harmonize 245 • Ministry of Urban Development -' the laws with 1 & 2 above. • The Mayor & Council • The CMC Legal Officer i. 6. Fom!Ulate & implement a City Economic 90-92 • Advisory Committee on City Economy Develqpment Policy (CEDP) and an • TheMunicipal Treasurer Economic Growth Plan (EGPC) • The Municipal Commissioner 7. Formulate recommendations and advise 55 • Advisory Committee on Administration the Mayor and Council on potential areas • Dy. Commissioner (Development) for further decentralization of municipal • The Mayor and Council ofCMC administration. 8. Develop and implement a Poverty 193 • Advisory Committee on Urban Poverty Red~tion Policy & Plan for the City • The Charity Commissioner 7 Action Para Responsible Agency 9. Develop a Social Development Policy & 118 • Advisory Committee on Social Plan for the City Development e The Chief Medical Officer of Health 10. Invite the Private Sector to fonnulate & 103 • Advisory Committee City Economy submit a 10 year perspective to develop • The Mayor the city economy: CORPORATE SECTOR • Dy. Commissioner (Development) VISION 2010 FOR COLOMBO • FCC! 11. Further strengthen and revamp the 150 • Advisory Committee on City implementation of City s Water Supply & Environment Sanitation Policy & Plan within the • Director (Water Supply) umbrella of SCCP. • Director (Solid Waste management) 12. Develop & implement a comprehensive 57 & 142 • Advisory Committee on Administration Human Resource Development Policy & • The Mayor PlanforCMC • CLG, Western Provincial Council • The Municipal Commissioner • The Secretary 13. Develop and implement a Five Year 98-99 • Advisory Committee on City Economy Perspective Plan to promote Public! • Dy. Commissioner (Development) Municipal-Private Sector Partnerships • The Municipal Treasurer enabling joint ventures with public • Chief Municipal Valuer realtors and investors. 14. Set up a Private Sector Trust Fund for 132 • Advisory Committee on Social Urban Health Care Development • Dy. Commissioner (Development) • The Chief Medical Officer of Health 15. Establish a User-friendly Medical 128 • Advisory Committee on Social Insurance Scheme for Colombo residents. Development • The Municipal Commissioner • The Chief Medical Officer of Health • The Mayor & Council 16. Fomzulate and implement a Colombo City 156 • Advisory Committee on City Economy Roads and Traffic Management Policy • Road Development Authority, WP and Plan • City Police Department • Director (Traffic Designs) 8 Action Para Responsible Agency .. I7. Granting Statutory recogmtwn to I89 • Advisory Committee on Urban Poverty Community Development Councils • The Municipal Commissioner • The Charity Commissioner I8. Introduce City Govemance Indicators & 56 • Advisory Committee on Administration Appraisal System and set up Programme • The Mayor Implementation Monitoring Unit. • The Municipal Commissioner 19. Establish in the CMC a full-fledged 210 • Advisory Committee on City Environment Planning & Management Environment Unit. • Director (Solid Waste Mgmt.) • Director (Water Supply) • The Chief Medical Officer of Health 20. Review and Revise CMC Management and 54 • Advisory Committee on Administration Govemance Structures • The Municipal Commissioner 2I. Set up and operationalize a Full-fledged 52 • The Mayor and Council Govemance Monitoring Cell • The Municipal Commissioner • CLG Westem Province 22. Set up and operationalize a Municipal 97 • The Municipal Commissioner Land Development Bank • The Chief Valuer • SCCP Core Working Group 23. Set up and operationalize a Coordinating 73 • Advisory Committee on Committee on City's Law & Order. Administration • The Municipal Commissioner • DIG Police (Westem Province) • The City Police Commissioner 24. Set up The Mayoral CDS Steering 246 • The Mayor & Council Committee • The Municipal Commissioner • Deputy Municipal Commissioner (Development) • Chairpersons ofAdvisory Committees • Other Relevant Members 246 25. Set up and ope rationalize a CDS Working • Chief Minister, WPC Group at the WPC • The Mayor • Other Relevant Members 9 THE COLOMBO CITY DEVELOPMEJ\T STRATEGY Introduction 1. The Colombo Municipal Council (CMC), in collaboration with THE WORLD BANK, UNDP, UNCHS (HABITAT) and the Western Provincial Council (WPC) in Sri Lanka, launched a project in February 2000 to formulate a Comprehensive Strategy Framework and a Perspective Plan of Action for development of the City. The purpose was to identify key areas and issues that need systemic and planned attention of the Council and other major stakeholders and to develop appropriate strategies to address them. A Senior Consultant was assigned to the CMC by the sponsors to help formulate the strategy through a consultative process. 2. In formulating the Strategy Framework, the CMC consulted a wide variety of stakeholder groups through a series of formal and informal consultations. They included civil society partners such as NGOs & CBOs, representatives of the poor; senior municipal officials; and leading private sector representatives, i.e., major investors, realtors, developers and Chambers of Commerce & Industry. Their views, ideas and suggestions were reviewed and those compatible with the development vision and thrust identified by the CMC Task Forces and Stakeholder consultations are incorporated in this Strategy Framework. 3. All stakeholders, particularly the private sector, considered the opportunity as an unprecedented move by the CMC and WPC. They welcomed the offer to join in this unique partnership-building exercise in city management and have assured the city administration of their wholehearted cooperation. Background 4. The City of Colombo consists of 37.3 sq. Kms. (3731 Hectares) and forms a long coastline land strip stretching from North to South. The total resident population of the city is 800,000 (1998). An additional400,000 persons commute daily to the city mainly for work, commerce and education. The city population grows at 1.14% per annum (1995) and the density of CMC area is 278 persons per hectare (1998). 5. The CMC as an institution is 135 years old having been established in 1865. It enjoyed a special position of primacy in the country's local government structure until the promulgation of the 13th amendment to the Sri Lanka's Constitution in 1987 that created the Provincial Councils system with supervisory and directive functions over local government institutions. The Provincial Council system pushed the Municipal Council, which up to then had been the country's second tier of administration to be the third. 10 6. For democratic representation, the Colombo Municipal Council area is divided in to 47 wards coming under 6 administrative districts. Towards 1998/99, only 49% of the total 83904 housing units in the city are permanent dwellings and the balance 43243 units are slums and shanties. The road network covers 480 Kms. and the sewerage network covers 250 Kms. The city also generates 625 metric tons of garbage daily. Several studies point to a half the city population as living below the pove11y line. The CMC operates on an annual budget of 6 billion rupees. 1 City Development: Some Major Issues 7. Successive national policies and urban-centred development processes made Colombo the prime attraction for in-migrations. Trans-urban migrations from secondary townships accounted for a substantial slice of this growth. As a result, in the past four decades, the Colombo city population increased slowly but steadily. Consequently, most of the common amenities and facilities such as water, drainage, sewerage and sanitation services, once bui It to cater to a population of less than half the present number, have been stretched to accommodate the growing demands. There is a quite popular view that basic services and living conditions in Colombo have deteriorated over the decades. There is another view that successive administrations have done reasonably well in managing the city during this period and that they have successfully contained the intensity of adverse impacts that successive national development policies and programmes could have had on the city and as such, have effectively averted major catastrophes in the health and environment arena in the scale experienced by Surat, Bhopal or Ahmedabad of India in recent years. Otherwise, with its high population density, the plethora of unplanned & dense settlements, the large number of haphazardly located medium and small scale industries, the presence of petroleum, gas and thermal power installations and allied networks within and nearby the city and also the vast tracts of stagnant backwaters in the not1hem area, the city had always remained a f01midable candidate for such catastrophes. S. While the claim that major calamities have been successfully averted may have merit and may be defensible, it is also true that the service standards in the city have come down. The reasons for such deterioration too can be easily understood if viewed in the context of (a) the rapidly grown demand for services and facilities by nearly a million residents and another half a million commuters to the city daily, (b) the fluctuating socio-economic and political conditions of the nation and the resultant resource crunch experienced by the city administration and (c) the ever diminishing planning and administration capabilities of the municipal system. Today, due to resource limitations, the Council employs only 8900 personnel out of an approved cadre of 12000. ' City Data Profile, SEVANTHA, 2000 11 9. There are many major issues faced by the City and its administration today. They range from a Jack of well-coordinated long-range strategy for municipal development & stagnant revenue base to a Jack of public-private partnerships and the need for better urban governance. The prime objective of city planning and urban management is to increase the 'livability' of the city by facilitating the most conducive political, legal and planning space and infrastructure for enhancing economic productivity, protecting and improving physical and social environment, cultural integration and social harmony. Its stewardship does not lie in working solely· for developing attractive urban infrastructure for the benefit and interest of their own generation. City planners and managers have a responsibility to see that the infrastructure they build do not enslave the citizens and future generations. A 1982 painting of the famous Sti Lankan artist, S. H, Sarath, eloquently portrays the futility and disastrous consequences of any other development approach. It shows a heavyweight monster of urban structures proudly rising high into the open sky crushing beneath it a legion of agonized and tormented faces of the very masons, carpenters, plumbers and planners who once helped build it. The painting is an eloquent reminder to the development planners that what the city of Colombo needs is not only a city development strategy but also a human development strategy. Urban managers thus have a duty to preserve the environment and other resources for future human growth and sustenance. 10. From that perspective, there are many issues that need be addressed to make Colombo a livable place. Many of these issues relate to (a) policies and strategies, (b) institutions/structures and (c) programme interventions. Some of them are: 1\. Policy and Strategy issues ll. The city must possess and pursue a strategic vision for its development. A strategic vision is an important pre-requisite for city development. Already, CMC has got a Corporate Plan with a vision for its operations. Yet, it is a CMC vision and not a strategic vision that all the major implementing agencies and stakeholders subscribe to. Nor is there an inter-agency consultative process or mechanism to promote such a shared vision. Due to the absence of an inter-agency consensus on a vision, all major development activities in the city appear to lack direction and rudder. It also explains why many of the cmTent development efforts in the city, executed by a variety of agencies, are not being appropriately dovetailed and coordinated. Very little effort has been made since Independence to fonnulate an overall inter-agency vision for the city to pursue. It appears that participatory, consultative long-term future-search processes involving the major actors and agencies have not gained much recognition in the public sector urban initiatives. 12 I 2. The city needs a clearly defined, comprehensive development strategy. Colombo has a structure plan focused on physical infrastructure development. Yet, as a city, it does not have a commonly shared, comprehensive development strategy. Even the degree of corporate understanding at institutional levels about the urgency for such a strategy is not uniform. As a result, the many different institutions engaged in city planing, management and development continue to pursue their own agency-based agendas and plans of action. Often each one considers its plans of action as a development strategy in itself best suited for the city. Some are long-tetm plans and others are short term ones. Though many projects and programmes have been designed and implemented in the past calling them strategic actions, they did not integrate themselves into a logical strategic framework. Several plans, including a Master Plan, have been formulated since the early Seventies but never have they been comprehensive and integrated joint productions. Almost all of them have been constructed without the participation of civil society organizations and the private sector. A case in point is the absence of a strategy for universal coverage of 'adequate' water and sanitation facilities in the City. CMC once made an attempt to develop and implement such a plan but could not pursue it due to a lack of inter-agency interest, collaboration and cooperation. 2 As a result, the development approach adopted so far has been ad hoc in planning, implementation, monitoring, coordinating and an even in budgeting. 13. . Need for greater clarity in programme related policy directions in some of the operational areas. Agencies are not fully equipped with sectoral policies. For example, there is no clear policy direction as to whether to promote or discourage further investments in industries within the CMC area. While many consider that further expansion of industrial activity within the city is detrimental to city environment, there are others who consider such expansion as extremely important to generate employment opportunities that the city needs badly. Poverty alleviation and security of tenure of the unauthorized low-income settlements are a few other operational areas where direction is unclear. 1J. The city requires a development plan shared by all major stakeholders. The city must have an overall development plan on which there is inter-agency agreement. It needs a Plan that explains the role each agency must perform and incorporates shoti, medium and long-term Plans of Action of each agency dovetailing in to a corporate perspective framework for city development. The Plan should also delineate and set up appropriate inter-agency mechanisms for regular monitoring and review. 2 Status of Water Supply. an unpublished paper by Eng. Lalith Wickramatileke, 2000 13 15. The city urgently needs appropriate social development strategies to balance the physical development bias now evident in city planning. Most of the main development activities in Colombo display an orchestrated bias on physical & structural development, and repeatedly make the common mistake that most city development initiatives all over the world often make, i.e., focusing to develop the city rather than its people. Often, the needs of the urban social development sector have not received adequate attention. For example, over the past four decades, CMC's public health sector has not expanded adequately to match the growing demand of the increasing low-income populations of the city despite the doubling of the city's resident population dming this petiod. Nor has it increased its capabilities to address fully the emerging new health problems of the people such as HIV, Dengue and lead poisoning, to name a few. The city public health administration needs to revamp its services to meet the needs of the times. While its cunent operations are relevant and useful, for it to be more meaningful in service, the department must review its operations, search for a new vision and identity and re-orient itself, with greater budgetary support, to the new tasks that accompany the vision. 16. Absence of a strategic response to improving the city economy. The notable expansion of the city economy in the Eighties and Nineties has had little impact either on city development or on city administration. The municipal revenue structure remained static over the years. The benefit it received from the expansion was not proportionate to the strides the economy made during the period. Several efforts made to revise the municipal tax structure have not yielded the desired dividends. Economic partnerships between private and public sectors have not been attempted and the CMC, NWSDB and NHDA have not shown the desired ability to capitalize fully on the privatization process despite the good prospects available to them. Existing local govemment and municipal ordinances that govem the administration and finances of the CMC are archaic to the extent that even when the economic climate in the country is conducive for such patinerships, the local council is ban·ed from entering into any business partnership with the private sector. Recent CMC efforts seeking appropriate changes in statutes to permit the issuance of municipal bonds to private institutions and individuals have not been successful. 17. The city does not have an Environment Protection Strategy of its own. Except the generic national guidelines issued by the Central Environment Authority, the Colombo City does not have its own strategy to take care of its deteriorating environment. There is very poor integration of environmental concems in project planning activities. However, a salutary feature is the Traffic Impact Assessment that the CMC has recently introduced as a pre-requisite for approval of major projects. The Environmental Assessment Impact that the Central Environmental Authority has recommended by its Environment Protect Act of 1991 needs to be adequately interpreted and strictly implemented in the CMC area. 14 18. The city requires more effective strategy mechanisms to engage the private COIJJorate sector more effectively. The public sector and municipal processes today are aiming to develop the city with inadequate consultations and partnerships with the private sector as a major urban stakeholder. Whilst acknowledging that action- specific public-private pattnership mechanisms are already available in several major development initiatives such as the Sustainable Cities & REEL Programme and the CMC's engagement of private companies for solid waste collection, the city has not developed an appropriate 'statutory' mechanism to engage the private sector in a more constructive dialogue on a regular, more permanent and proactive advisory capacity aimed at forging strong partnerships for effective city development. There are no such institutional mechanisms in most of the major public sector agencies & programes involved in city development such as the Urban Development Authority (UDA), National Housing Development Authority (NHDA), National Water Supply & Drainage Board (NWSDB) and the Sri Lanka Land Reclamation and Development Corporation (SLRDC). 19. Recently, the CMC has launched a Business Sector Partnership that comprises several business houses that have been supporting some of CMC's service initiatives. Several innovative activities have already been introduced through this partnership. Its scope of involvement is currently focused on service projects such as solid waste collection in some limited areas, the 'pay & use public convenience initiative' at the main city park and maintenance of some of the city roundabouts and signboards. While this is a commendable step forward, it is necessary that the city strives to build greater business partnerships with its stakeholders, going way beyond the current involvement in service projects. The private corporate sector has a much greater vision and potential to enter into mutually more profitable and satisfying business partnerships. 20. Greater Civil Society Pmticipation. The city requires more effective policy and strategy mechanisms to promote greater participation in city planning and programme implementation by the civil society organizations, particularly the NGOs and CBOs. The CMC has the rare distinction of introducing a pioneering participatory urban poverty reduction programmes in the world- the Community Development Councils (CDCs)- in the late Seventies and early Eighties with the financial assistance from the Government of theN etherlands. It provided a three-tier representative mechanism linking the administrative system with the urban poor at community, municipal district and city levels, and ensuring formal monthly interactions between the municipal system and CDCs. The CDC system needs revival and invigoration. 15 21. Mechanisms for Non-Poor Participation. There aren't similar institutional strategies and mechanisms that provide political and administrative space for representatives of the non-poor segments of city population to participate in city level planning and implementation processes. The role of the CMC must be to facilitate interactions and collaborations with all stakeholders to make the city free of disease, violence, crime, obstacles and stress for its people to invest their time, talent and treasure freely. B. Institutional & Structural Issues Acquistion of municipal powers by other agencies and higher administrations. In the past several decades, local governments lost their power and position due to hegemonic control and patronizing attitude of local politicians and also due to transfer of powers to specially constituted Authorities and Boards. Such transfers not only reduced their power but the revenue base too. The Municipal Ordinance empowers the municipalities to take charge of the general administration and management of their city and to regulate and control the development activities in the area. Traditionally, due to resource limitations and also due to strong political affinity with the central government in the initial period of post independence era, The Colombo Municipal Council did not interpret or implement these powers and functions as specified by the Ordinance. Poor resource-base, inadequate capacity, lack of knowledge of its scope and the lack of resolve to attempt greater things limited the Municipality's action and effectiveness in the post independence era. As a result, municipal system was not at its best when the central government, and later the provincial government, transferred some of its major service delivery responsibilities and functions to other statutory bodies weakening the local government mission of the Colombo administration. For example, months after the promulgation of the 13th amendment, some of the service functions of the local governments were withdrawn and vested in other institutions and agencies. Some of the powers and authority exercised by the CMC until recently have been appropriated by the newly created Provincial Administration thus constraining municipal level decision making. For example, the Provincial Administration's ptior approval is now necessary to implement CMC decisions regarding municipal cadre- formation and senior appointments. Such erosion of responsibilities and powers further reduced the opportunities and revenue bases that CMC could have had to enhance its resource capabilities and managerial & technical skills. 23. The city suffers from several structural inadequacies. Other than the CMC, there is a multitude of state agencies working in the city without structural mechanisms to coordinate the work among them. Inter-agency coordination and cross-sectoral and inter-departmental coordination are poor. There is also a serious lack of institutional arrangements in these agencies to use participatory methodologies to involve citizen's groups and other stakeholders in development planning, implementation and monitoring and promote broad-based public and private partnerships. 16 2..t. While several specialized agencies and authorities such as the UDA, NHDA, NWSDB and SLLRDB have appropriated to themselves a considerable part of CMC responsibilities over the years, the residents, daily commuters to the city and all other stakeholders continue to look up to the CMC for solving problems. In their reckoning, the CMC must take all the blame for every ill of the city. In this context, it is also necessary to note that due to resource limitations, the CMC has been operating with only three fourths of the approved total ~f staff. 25. Non-enforcement of CMC's legal authority and absence of municipal supervision over law and order in the city. Due to the influence and interference by political and financial power blocks, CMC has not been effective in bring to book those who violate municipal standards, rules and regulations. As a result, instances are many where most of these byelaws and standards are often observed in the breach. Lack of coordination between the police and the municipal system too has weakened the enforcement machinery. A good example are the road signs, marks and lines that the bye-laws require the CMC to introduce in order to facilitate unhindered traffic now in the city. CMC makes considerable expenditure on maintaining these signs but the support from the police department to ensure their observance is less than desired. CMC neither has police powers nor does it have any effective mechanism for coordination between the police and CMC in maintaining law & order and enforcing municipal byelaws in the city. Yet, the CMC is responsible for good governance in the city and maintaining the rule of law in its territory is an impor1ant attribute of good governance. 26. Lack of institutional space for stakeholder participation in municipal activities. There is a serious lack of stakeholder pat1icipation in urban development activities. The participation of the urban poor in low-income area improvement schemes have been well evident through the Community Development Council (CDC) system on which many public sector and non-governmental agencies appear to be depending when they need to have entry into the low-income settlements. However, even after twenty years of existence and noteworthy participation that had even led many other countries to emulate the methodology within their municipal administration system, the CMC has not been able to provide a firm statutory base for its work. A large number of CDCs are registered with the CMC and it is ideal that they be given consultative NGO status within the existing municipal advisory framework on a permanent basis. The fact that this has not been done even after two decades is a sad l'ommentary on the interest and commitment of the Council on peoples' participation and partnerships. However, it is necessary to record here the citizen appreciation of CMC's 1979 initiative to help them organize themselves into CDCs. Similar participation is lacking among the other population segments. Particular reference must be made to the private sector that has capacity to involve in and assist CDCs in a substantial way. 17 27. Compartmentalization. The compartmentalized work regimes of the CMC have made senior staff too protective of their operational turf and resultant! y impeded the possible development of multi-disciplinary teams and approaches to problem solving. There is a plethora of consultative committees and advisory committees in the municipality operating at less than optimal levels. They are based on the main operations such as finance, public health, sanitation, sewerage, water supply, etc. This operation-based committee system provides consular support to further insulate and galvanize the 'tmf' mode of management. There is an urgent need for adjustment of some of the municipal structures to enable the employment of an inter-disciplinary approach to municipal governance where issues such as poverty, economy, and environment become common interests among all municipal departments. 28. Municipal level micro-management tendency. Another structural issue needing urgent attention is the historically nurture micro-management tendency of the municipal administration. The tendency was developed to meet the needs of a pe1iod in history when non-nationals governed the city. They feared a lack of cooperation from the native staff and even possible corruption by them. Hence, the Foreign Raj ensured that every little operation in local administration was micro-managed. In the liberalized new economic order, micro-management at the municipal level has been proved counter-productive and must soon give way to more liberal devolution of power to lower units of administration, out-sourcing of work, major contractual arrangements and partnerships. 29. Shortage of trained and experienced second line of leadership. To ensure sustainability, municipal level structural systems need an effective second line of leadership that can offer the required professional skills and adequate institutional memory to carry on the work and pursue a vision. Very little attention has been paid by CMC and other major urban development agencies to ensure that each major unit nmtures such an optional second line of professional leadership by identifying a select team of potential second liners and providing it with opportunities for advanced training and transnational exposure. This must have been an integral part of the agency's human resources development plan- a plan that indicates tentatively where each of the middle and senior managers could aspire to be in the hierarchical ladder at sh01t, medium and long term projections, depending on proven commitment, excellent performance and good behaviour. 30. Lack of adequate training opportunities for city development personnel. The agencies engaged in Colombo City development work must provide regular opp01tunities to their senior staff to help update and upgrade their knowledge and skills. Only a very few agencies have given staff training the due importance. Meanwhile, the city lacks advanced training facilities in (a) urban management and (b) municipal administration. Though some agencies including the CMC have set up in-house training units, they are mostly engaged in basic level training and are not adequately staffed. Some hold the view that these training outfits are not 18 encouraged to organize advanced training courses claiming a demth of good trainers. Some opine that senior managers generally prefer to receive their training abroad under experienced, world-renowned trainers. If that has been a real need, then the city could have benefited from establishing an inter-agency training panel to identify the new skills required and to vigorously pursue opportunities for overseas training to help their senior staff acquire the needed skills. 31. J'lze need for clear demarcation of inter-agency functions. In the deli very of cettain basic services, there is an evident need to re-strategize and streamline the responsibilities and functions of the participating public sector agencies. The health services are a clear example where both the National Hospital and municipal dispensaries provide basic health care facilities. Rather unwittingly, this dual system of primary health administration in the city has helpe~ promote a distinct class structure in health services that undermines all serious efforts at social integration. Mainly, it is the poor of the city who patronize the municipal health system. In spite of their close proximity to these facilities, the non-poor does not like to use them. They travel longer distances to attend the Out Patients' Department of theN ational Hospital. 32. A lack of inter-departmental and inter-agency cooperation and coordination in programme planning and implementation levels. Most programme interventions, particularly in the delivery of basic services and common facilities, have suffered serious setbacks due to Jack of adequate communication, commitment, cooperation and coordination between different agencies and the departments within them. There have been instances when major policy and programme exercises had been abandoned due to this Jack of agency cooperation. The plight of road maintenance within the city offers one of the best examples of what happens to field level facilities when there is a serious lack of communication and coordination between agencies. The road maintenance authorities generally have no supervisory role or control over the laying of pipe or cable lines for extension of water, sewerage and telecom services. As a result, many roads are repaired today and dug in tomonow for laying of lines. -~3. Problem of Turf Building. On the other hand, most of the donor-funded projects are implemented in tightly compartmentalized departmental tlllfs with very little. inter-departmental dialogue and support. There is a great need for institutional mechanisms to ensure multi-sectorality and inter-depmtment interest in all major development programmes of the CMC and other agencies. 19 C. Programme Intervention level Issues 3-L Inadequate Urban and municipal performance. Urban development agencies and CMC do have the potential to improve and optimize their pelformance. A scientific transactional analysis will point to many areas where the systems Clre performing below their optiil)al cap~ity. It may be due to a many factors ranging from motivational blecks tdalack of inf