Zambia - Lusaka Squatter Upgrading and Site and Services Project

Peport No 420a-ZA Zambic-E. Lusaka Suatter Lprading and Site and SeRvices Project June 24, 1974 Transportation and Urban Projects Department No f Publc Use Document of the International Bank for Reconstruction and Development international Development Association  CURRENCY EQUIVALENTS US$1 Kwacha 0.643 Kwacha 1 (Kl) US$1 X556 Ngwee (n) 100 - Kl Mwacha 1 million - US$1t,555,560 ABBREVIATIONS 1 meter (a) - 3.28 feet (ft) 1 square meter (m2) - 10.76 square feet (sq. ft) 1 kilometer = 0.62 miles (iii) 1 hectare (ha) a 2.47 acres 1 liter (1) - 0.246 US gallons (gal) ABBREVIATIONS AND ACRONYMS AFSC American Friends Service Comnittee GRZ Government of the Republic of Zambia LCC Lusaka City Council MIOLGH Ministry of Local Government and Housing MOE Ninistry of Education mRA National Housing Authority SNDP Second National Development Plan UNICEF United Nations Children's Fund UNIP United National Independence Party FISCAL YEAR January 1 - December 31  ZAMBIA LUSAKA SQUATTER UPGRADING AND SITE AND SERVICES PROJECT Table of Contents Page No. SUMMARY AND CONCLUSIONS ................ ............ i - iii I. INTRODUCTION ............ ........................... 1 II. BACKGROUND ..................... - 1 A. Urbanization in Zambia ................. 1 B. Urban Development and Housing Policy .......... 2 C. Lusaka .......... ............................... 4 III. THE PROJECT .5 A. Project Description. 5 B. Design Standards. 7 C. Cost Estimates. 8 D. Financing .10 E. Execution ..................................... 10 F. Procurement and Disbursement .10 G. Monitoring and Supervision ............. 11 IV. ORGANIZATION AND tMANAGEMENT .......................... 12 A. The Project Unit ...... ........................ 12 B. Major Execution Tasks ........... .. ............ 14 C. Operation and Maintenance .. ................... 15 V. COST RECOVERY AND PRICING ........... .. ............. 16 VI. ECONOMIC JUSTIFICATION ..... ........................ 20 VII. RECOMMENDATIONS ....... ............................. 21 This Report was prepared by Messrs. C.E. Madavo, R. Woodford and Ms. D. Ilaldane (Transportation and Urban Projects Department).  ANNEXES kNNEX 1 Site and Services Experience in Zambia AlNNEX 2 Lusaka: Population, Employment and Income ANNEX 3 Primary Infrastructure ANNEX 4 Primary Education ANNEX 5 Detailed Project Costs ANINEX 6 Design Standards ANNEX 7 Procurement Analysis ANNEX 8 Training for Community Development ANNEX 9 Monthly Charges and Target Population ANNEX 10 Lusaka City Council Water Supply and Sewerage Operations ANNEX 11 Lusaka City Council Finances ANNEX 12 Economic Evaluation ANNEX 13 Project Monitoring and Evaluation ANNEX 14 Project Supervision ANNEX 15 Disbursement Schedule CIIARTS !TRD 8632 Project Unit Organization IBRD 8633 City of Lusaka Organization :BRD 8634 Construction Schedule _APS IB3D 10772 Project Sites and Primary Infrastructure ilSRI) 10781 Urban Development - Zambia IBRD 11007 Typical Layout - Site and Services IBRD 11029 Typical Layout - Squatter Upgrading and Overspill Areas  SU101ARY AND CONCLUSIO.NS i. Zambia is the most urbanized count'y in Africa except South Africa. Although Government has emphasized agricultural productivity and improvement in rural living standards in order to slow urban migration, urbanization is continuinz at a significant level. By 1978, over 40% of the population will be living in towns and cities. Zambia has financed site and services plots for self-lhelp housing construction since 1965, but output remains low compared to need. Squatter settlements have proliferated and currently house about one-fifth of the urban population. Though productive and permanent (over 90, of squatter households have one or more persons in employment), these areas --lack essential services. i;. Under the Second National Development Plan (1972-1976) the Govern- ment plans to provide 70,000 site and services plots and to initiate upgrad- in, of existing squatter areas. Shortage of foreign exchange during the past two years and generally weak implementation capabilities of most local authorities have caused the site and services program to lag considerably behiind schedule and no upgrading has been undertaken. iii. Bank assistance would initiate squatter upgrading and accelerate the Second National Development Plan site and services program. Through the Lusaka project, and later projects in ocher cities and towns the Bank would encourage Zambia to widen the range of plot servicing levels in order to reacih lowest income groups and to strengthen institutional arrangements for site and services throughout the country, including tenure, payments collection, and training of support staff for self-help nousing construction. iv. Lusaka is the fastest growing city and has the most severe squatter problem. Its population tripled in the past decade to some 381,000 while the Proportion living in squatter areas rose from 16% to 42%. The project would address Lusaka's urgent shelter needs and improve the city's implementation capacity for future projects. v. The project would consist of: (a) site preparation and servicing: - servicing of 17,000 dwellings in four major squatter settlements; -preparation of 7,600 residential plots in three overspill areas located adjacent to upgraded settlements and serviced to the same level as the settlements teLemselves;. - preparacion and servicing' of 4.400 residential plots in six sites designated for site and services under the Lusaka ,'4aster Plan; (h) building materials loans for hotuse improvement/construction;  - i L - (c) primary infrastructure (water, sewerage, roads) essential to the project; (d) com=unity facilities including schools, health clinics, multi- purpose community centers, markets, and demonstration houses; and (e) technical assistance, including project unit operations, con- struction supervision, training of community development workers, studies and further project preparation. vi. The 7,600 overspill plots adjacent to upgraded squatter settlet-nnts w-ould bc among the least expensive (US$200) developed in Zambia. The 4,4)0 plots- Eo be-develope&-in-areas designated for site and services will rang