Tanzania - National Sites and Services Project

CIRCUIATtNG COPY'CY ID BE RErURNED TO REPORTS DESK Report No. 337a-TA ot I/t c., Tanzania Appraisal of National Sites and Services Project May 12, 1974 FILE COPY Transportation and Urban Projects Department Not for Public Use Document of the International Bank for Recosntruction and Development International Development Associaiton This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS Currency Unit: Tanzanian Shillings (TSh) 1 Tanzanian Shilling (TSh1.0) = US$0.14 1 U.S. Dollar (US$1.00) = TSh7.14 WEIGHTS AND MEASURES 1 meter (m) 3.28 feet (ft) 1 square meter (m2) 10.76 square feet (sq ft) 1 kilometer (Km) = 0.62 miles (mi) 1 hectare (ha) 2.47 acres 1 liter (1) 0.246 US gallons (gal) ABBREVIATIONS/ACRONYMS Ardhi - Ministry of Lands, Housing and Urban Development COWIconsult - Danish consortium of consulting engineers NHC - National Housing Corporation RLDO - Regional Land Development Office THB - Tanzania Housing Bank NHBRU - National Housing and Building Research Unit GOVERNMENT OF TANZANIA FISCAL YEAR July 1 to June 30  TANZANIA APPRAISAL OF NATIONAL SITES AND SERVICES PROJECT Table of Contents Page No. SUfMMARY AND CONCLUSIONS ........ . . ........................... . i - iii I. INTRODUCTION ....... ...... ......................... 1 II. BACKGROUND ................................. A. National Rural/Urban Policies ........... ..............; 1 B. The Urban Sector . ........ ..... .... ... 2 C. The National Sites and Services Program ...... 5 III. THE PROJECT ........................... 7 A. Project Description ............. . ................ . 7 B. Design Criteria and Standards ............*.... 10 C. Cost Estimates .....O-...........0... 11 D. Project Financing ......... . .. ................ 13 E. Procurement and Disbursement *................ 14 IV. PROJECT EXECUTION ..................... 15 A. Executing Agency .......... . . .. . . . .. . . .. . . . . . . 15 B. Administration ............................... 17 C. Financial Arrangements ....................... 21 V. JUSTIFICATION ................. , , , .. 24 VI. AC-RE "WENTS REACHED AND RECOMMENDATIONS ............ 26 This Report was prepared by Messrs. G. A. McBride, D. Ahmad and Ms. C. Tager (Transportation and Urban Projects Department), assisted by Mr. H. Wehner (Consultant) and Mrs. Y. Kimaro (formerly Transportation and Urban Projects Department).   ANNEXES AN4EX 1 The Tanzania Housing Bank ANNEX 2 Decentralization and the Reorganization of the Ministry of Lands, Housing and Urban Development ANNEX 3 The Ardhi Institute ANNEX 4 Site Selection and Plans ANNE. 5 Design Standards and Cost istimates AINN.K 6 Lond Tenure, Building Standards and Ground Rents CHARTS I1PTr 8114 Organization of the Tanzania Fousing Bank IflRD 8185) Or,anization of the Ministry of Lands, Housing and Urban Development -- Prior to Decentralization IBRD 8186 Organization of the Ministry of Lands, Housing and Urban Development -- After Decentralization MAPS IBRrn 10698 Tanzaila -- Project Locations tnRP 10699 Dar em Salaam -- Site Locations LBsRf 1070t Sinza -- Site Layout Plan TERI) 10702 SinzB -- Plot Layout Plan tBRD In703 M&nzese B -- Layout Plan   SUMMARY AND CONCLUSIONS i. The project, first in a series of proposed sites and services projects throughout Tanzania, will help strengthen au essential link in the national rural/urban development strategy - i.e., a nationwide network of regional urban centers which will support the rural development effort and enable the Government to extend infrastructure and services to the widely-scattered popu- lation. Moreover, the project takes into account the basic principles of the 1967 Arusha Declaration, i.e., self-help, self-reliance, and social equality, thereby rcoiding the need to draw heavily upon limited resources for urban purposes in a predominantly rural economy. ii. With its nationalization and decentralization policies, the Govern- ment has the institutional means to build an economic base in the regional centers. However, it lacks the capital and manpower to accommodate the popu- lation increase which will accompany this growth, as well as the mounting numbers of subsistence farmers migrating to these centers in search of a better living environment and improved employment opportunities. As a result, severe shortages in housing, basic infrastructure and community facilities are de- veloping, giving ri3e to growing squatter settlements. Living conditions are difficult due to inadequate access to water, electricity, refuse collection, education and health services. iii. In early 1973, at the request of President Nyerere, the Ministry of Lands, Housing and Urban Development (Ardhi) prepared a four-year sites and services program for the tan regional centers, to provide 12,500 newly sur- veyed, serviced or improved plots annually with basic infrastructure and com- munity facilities. In an important departure from previous policies of squat- ter demolition and resettlement, which the Government found too costly and socially disruptive, the program provides basic infrastructure and community facilities in areas where spontaneously-organized efforts have resulted in viable neighborhoods. To make credit available to low-income households for construction loans, the Government established the Tanzania Rousing Bank (THB) to mobilize domestic savings and foreign funds. In June, Ardhi was reorganized and a Sites and Services Section was created to help plan and implement projects. iv. The proposed project, with sites in Dar es Salaam and the two re- gional centers of Mwanza and Mbeya, is an initial step in implementing the Government's nationwide low-cost housing progrem. Although it will not satisfy the total demand for serviced and Improved plots, the funds, tech- nical assistance and training support provided under the project will en- able the Government to strengthen its institutional capacity to plan and implement an expanded program in the future. The provision of surveyed plots, basic infrastructure, coumunity facilities, and access to credit for construc- tion will permit lov-income households in planned areas and squatter settle- ments to construct houses and improve their living environment on a self-hf;lp basis at acceptable per plot costs.   - ii - v. The oroject consists of: (a) approximately 10,600 newly serviced plots located as follws: (i) about 7,450 plots in three sites in Dar es Salaam; (ii) about 2,300 plots in Mwanza; and (iii) about 850 plots in Mbeya. (b) improvements to basic infrastructure and additional services in existing squatter settlements (CManzese A and B in Dar es Salaam and Mwanjelwa in Mbeya), totalling approximately 8,800 dwellings; (c) coamunity facilities (eleven coiwnity education centers, one health center, seven dispensaries, and eleven markets); (d) consultants' services for the design and detailed engineering of basic infrastructure and comwunity facilities, preparation of a follow-up sites and services project and overall project supervision; (e) expansion of physical facilities for the town planning program within the Ardhi Institute; Cf) monitoring of the project by the Econdmic Research Bureau of the University of Dar es Salasa; (g) a pilot project to improve the nutritional awareness of households in sites and services areas; Ch) a training program for technical staff of Ardhi, to be carried out by consultants; (i) financing for the THB soft-loan lending program for construction loans for low-income households; and (j) equipment/vehicles. vi. The sites were carefully selected in terms of availability of land suitably sized and situated for low-cost housing, natural conditions suitable for construction and drainage, and location relative to enploywmet opportu- nities, public transport, and off-site infrastructure. For squatter areas, an additional site selection criterion was the existence of well-constructed housing and viable neighborhoods. vii. Plot layouts are simple for economic construction and servicing. The typical plot size (288 m2 ) is appropriate in Tanzania. The design stand- ards for basic infrastructure are low cost, but provision is made for future improvements as household incomes permit.  - iii - viii. The per plot costs range from TSh 12.7 per month (squatter upgrad- ing area) to TSh 37.8 per month, excluding construction loans. Depending upon the amount or the construction loan or the number of rooms rented, households with incomes as low as TSh 200 per month (16th percentile on household income scale) can afford a new plot. ix. The Borrower will be the Government of Tanzania. The Executing Agency will be Ardhi, which will have overall responsibility for the project. The Sites and Services Section in Ardhi will be responsible for planning, designing, and construction of the infrastructure and commuinty facilities in consultation with concerned ministries. The local administration will be handled by the respective Regional Land Development Offices. The THB will give loans to individual plot-occupants and cooperatives for house construc- tion. x. The total project costs, based on preliminary engineering for two sites in Dar es Salasm and site investigation of others, are estimated at TSh 119.6 million (US$16.7 million) including TSh 4.5 million for land ac- quisition and TSh 45.0 million for THE's soft construction loans. Land acquisition costs consist of compensation for farms and existing houses and will be paid by the Government. xi. Labor intensiveness and economy levels of design standards resul- in a foreign exchange component of about 38% of civil works. It is proposed that IDA finance 65% of the cost of the infrastructure, community facilities, and the expansion of Ardhi Institute, 75% of the technical assistance costs, the full cost of equipment, and TSh 14.0 million (US$2.0 million) out of TSh 45.0 million required by THB for construction loans. Accordingly, the IDA credit wou~ld amount to TSh 60.8 million (USS8.5 million). xii. The project will be executed over three years, 1974-1977. Civil works will be div'ded into small contracts ranging between TSh 2-10 million. Procurement will be in accordance with the Bank/IDA guidelines. Construction will be supervised by consultants on behalf of the Government. xiii. To begin construction as soon as possible, Government has engaged consultants for detailed engineering of infrastructure prior to approval of the Credit. It is recommended that retroactive financing for consultant services amounting to US$200,000 be included in the Credit. xiv. The project is suitable for an IDA Credit of US$8.5 million equivalent.  TANZANIA NATIONAL SITES AND SERVICES PROJECT I. INTRODUCTION 1.01 The Tanzanian Government is emphasizing sites and services and squatter improvement in its national low-cost housing program. At Govern- ment's reciuest, a mission visited Tanzania in February 1972 to explore the possibilities of Bank/IDA assistance. Subsequent missions visited Tanzania in November 1972 and February/March 1973 to assist the Ministry of-Lands-,- Housing and Urban Development (Ardhi) and its consultants (COWIconsult, Danish consortium) in the preparation of a sites and services project for Dar es Salaam and two upcountry regional centers. The project was appraised in August/September 1973. 1.02 Thic project would be the first Bank/IDA financed lending operation for urban development in Tanzania. Moreover, it is the first of a series of proposed sites and services projects throughout the country for which the Government wili be seeking future financing assistance by the Bank/IDA and other external financing and bilateral-aid agencies. 1.03 This report is based on findings of the appraisal mission consist- ing of Messrs. G. A. McBride, D. Ahmad, J. Turner (consultant), and Ms. C. Tager. Mr. H. Wehner (consultant) and Mrs. Y. Kimaro participated in the preparation of the report. It is based upon information, data and studies provided by the Government. II. BACKGROUND A. National Rural/Urban Policies 2.01 The project is the first in a proposed series of sites and services projects in Dar es Salaam and nine other regional urban centers designated by Government for accelerated growth (Table 1). Tanzania's urban policy emphasizes the establishment of a manufacturing/service base in these centers which will generate off-farm employment in support of the national goals of increased agricultural production and improved living conditions for the rural majority. At the same time, the development of a decentralized urban network is part of a national rural/urban strategy to achieve a more regionally bal- anced industrial distribution and to extend needed basic infrastructure and services to a widely scattered population. To build this regional economic base, the Government is promoting an industrial decentralization policy, aided by its 1967 nationalization of major economic activities. Lecently, the Government also decentralized its own operations, transferring over 40Z of its establishment from Dar es Salaam to the regional centers. To avoid a  -2- drain on the country's severely limited resources, President Nyerere has stressed that the principles of self-help, self-reliance anid social equality set forth in his Arusha Declaration (1967) to guide rural deweIc M=tVoast be incorporated in pursuing this strategy. 2.02 Slowly increasing agricultural production and rural ibbnoes averag- ing about one-sixth of those in the urban areas (TSh 1,000 or US$140 p.a.) have heightened the rate of rural/urban migration, as mounting nwmberS of subsistence farmers move to the regional centers in search of better opportuni- ties. The effect has been to aggravate existing shortages of housing, basic infrastructure and community facilities. Extreme manpower and financial constraints have rendered Goverment urban housing programs iniadquate and ineffective. A National Housing Corporation (NEC) program to supply rental units produced too few and at costs far above the very low-income urban household budget. Public sector programs to provide surveyed and serviced plots have suffered from lengthy delays in processing applications and plot allocation. Because of uncoordinated national and regional responsibilities, surveyed plots usually go unserviced; in such cases, allottees often do not build. 2.03 Faced with costly and cumbersome bureaucratic procedures, low-income urban households without land and access to credit for construction loans, rent rooms or construct shelter in rapidly spreading squatter areas. While these areas lack basic infrastructure and essential services, ome have built sturdy, durable houses and developed a strong conunity structure and social fabric. They thus represent an important coitribution to the bousing stock. B. The Urban Sector 2.04 Although the absolute number of urban dwellers remains relatively small, i.e., about 900,000 or about 6.5% of a total population of 14.0 mil- lion, the rate of urbanization is steadily climbing. During 1957-1967, the ten principal regional centers grew at an average annual rate of 6.5%, nearly two and one-half times the national rate (Table 1). During the same period, Dar es Salaam grew at an average annual rate of 8%, reaching 11% between 1965-1967. Ii these trends continue, Tanzania's urban population will double in 11 years and Dar es Salaam, presently estTat-sd&-at 491,000, will double in 9 years, reaching 1.0 million by 1983. 2.05 Nearly three-quarters of this growth is due to rural/urban migra- tion. Fully 85% of the adult urban population was born outside its current town of residence, and nearly two-thirds migrated after the age of 13 y'ears. Dar es Salaam has borne the brunt of this migration, and presently has about 55% of the total urban population. While decentralization and the prbposed relocation of the capital to Dodoma could temporarily slow present growth trends, Dar es Salaam's role as a principal East African port and industrial/ co,mmercial center will, nevertheless, ensure its position as the country's primate city (Map 10698).  - 3 - 2.06 A by-product of these high rates of urbanization is a severe nation- wide housing shortage, particularly mnong the nearly 80% of the urban house- holds in Dar es Salaam earning lees than TSh 500 per month (Table 2). The Second Five-Year Plan estimatas that 20,000 units p.a. (including 13,700 low-cost units) are required in urban areas to accommodate the expected pop- ulation growth, relieve existing overcrowding, and replate dilapidated dwellings. The country-wide waiting list for NHC units, dating back to 1964, is over 24,000, nearly 19,000 for houses in Dar es Salaam. Another waiting list for surveyed plots, dating back to 1967, was maintained by the Mzizima District 1/ and consists of about 18,000 applications. There is probably overlap between these lists and some applicants undoubtedly have died, re- turned to the rural areas, or are no longer interested or abla to secure a plot. Nevertheless, they indicate a substantial unfulfilled demand. 2.07 In 1969, over 40% of the housing containing an estimated, 65% of Dar es Salaam's population was located in squatter areas. The most prevalent type of shelter is the traditional Swahili house 2/, constituting nearly 90% of the squatter housing stock. Its popularity among a transient urban popu- lation is largely attributed to the availability of rcoms for rent, averaging TSh 20-30 per room per month, compared to TSh 40-45 in the least-cost Govern- ment housing. In Dar es Salaam over 80% of the households are tenants, over 90% of which live in one room at rents ranging between TSh tD-40 per month. 2.08 In Dar es Salaam, about 25% of the households have piped water to their plots, 38% h.ave access to water from kiosks (standpipes), and 37% have no access to piped water. Nearly 73% of the houses are without elec- tricity. Municipal services in most areas are practically non-existent, due 1/ On January 1, 1974, the Dar es Salaam Statutory Planning Area became a regional administration, divided into three districts. Formerly, the Mzizima District surrounded the Municipality of Dar es Salaam and was part of the Coast Region. 2/ A typical traditional Swahili house is constructed of local materials on a plot of about 370 m , and consists of 4-6 rooms separated by a 1.5 m wide corridor. An outbuilding (banda), covering the cooking and storage areas and pit latrine, is at the rear of the plot. A small garden (shamba) on the plot provides a valuable source of food. In the more suburban settlements and in the upcountry towns, larger shambas directly contribute to household incomes. A traditional Swahili house (i.e., bush poles, mud, thatch, etc.) costs about TSh 5,000. Maintenance costs are low, and if regularly provided, the house will last up to 15 years. Government often pays full compensation for a well-constructed and well-maintained house. An improved Swahili house, to be built under the proposed project, is made of more permanent materials (soil-cement blocks, concrete slabs, etc.) and costs TSh 7,000 or more. If regularly maintained, it will last about 25 years.  -4- to insufficient funds, equipment and a shortage of trained manpower. Vir- tuallv 9Q% of the households use Pit latrines and cesspits, while only eight pumping crucks are available for cesspit cleaning. Refuse collection seavices operate with on]v ten trucks. Because they are limited to aurfaced roda, squatter areas go unserviced and trash is usually dumped behind the houses or In the streets. Mounds of trash are coinon around marketst wher condi- tions are particularly unsanitary. The UNDP intends to finance a two-year study investigating sewerage and gArbage disposal problems and their solution in T)ar es Salaam. In view of the additional needs for these *orvices in pro1ect arpas, funds are included, as an interim measure, for one cesapit emptier and three refuse collection trucks. 2.0" Upcountry centers have similar problems. wanza, Taqzania's third largest town (estimated population 55,800) is growing at an average annual ratr of 67. Nearly 77% of this growth is due to rural/urban migration. Located on Take Victcria, it is the major regional manufacturing and trade center, as well as a principal port and rail terminus. Due to a shortage of inexpensivp housing and surveyed plots, squatting has proliferated, parti- cularlv on the steep, rock! hillsides which.frame the town. These areas gpnerallv have limited basic infrastructure and community facilities, or none at all. 2.10 Regional centers in the sparsely settled south and southwest are equally underdeveloped in terms of housing, basic infrastructure, and com miinitw facilities. !beva, an agricultural marketing center in the south- west, has been designated for industrial expansion, including a cement plant, cold storage facllities and a pvrethrum extract plant. Strategically located on the Tan-Zam Highway and Railway, the town of Mbeva has grown in recent years at an average annual rate of 7% to its current level of 21,000. 1/ As in Nwanza, most of the population is forced to provide its own shelter in poorlv serviced souatter areas. ;'.11 The nationwide delivery of education and health services is in transition, 1n light of the Government's rural development effort and severe capital and manpower constraints. Both programs are being designed to im- prove living conditions and productivitv of the rural farmer. The Ministry of .National Educartion is modifying its tradltional primary school curricu- liri" to incluide practicn :;kills for rural living, such as simple agricul- tiir:il techlnieues, home science, hvgiene, and crafts. The Governent's policv is to nrovide hasic education for everyone hb 198Q. Since the prinar. school is the mnst widespread educational facility, it has also hecomc^ t1e center for adult literacy and cowmunitv education progrms, eiai-1inp' theo Government to reach a broad spectrum of the population. The stand.ard primary school, how'ever, is ill-suited for these innovations. IThi1le mioFt schools maintain a shamba for agricultural in.struction, only 20% hav'e an adequately enuipped workshop, and the majority lack-the necessarv supplies, tools, and equipment for practical and vocational 1/ The popuilation of tile ? beya ?Master Plan Area (Mbeya sub-diaetrict) is estimated at 50,nOn.  -5- education. U1nder the Fourth Education Project (Cr 371-TA), funds are provided for consultants' services to design a suitable facility to function as a Coumunity Education Center (CEC). 2.12 Infectious and parasitic diseases, including malaria and bilharzia, affect tro-thirds of the population, and over 40% have tuberculosis of the lung. Due principally to untreated malnutrition, about 15% of all infants die before one year and between 20 and 40% (according to region) die before age five; 20-30% of pre-school children are undernourished and over 50X suf- fer from some form of malnutrition before adulthood. 1/ In an attempt to reverse these trends, the Government is building a network of rural health centers (each serving 50,000 population), and rural dispensaries. Along with basic curative services, the Ministry of Health is developing pro- grams in these facilities for preventive health services, including the dis- semination of health information, innoculations, and early diagnosis and treatment. Much of this work can be more effectively carried out jointly with the Ministry of National Education in the CECs. The funds and technical assistance provided under the proposed project will enable the Government to develop these interrelationships in the sites and services areas and design appropriate facilities for multipurpose use. 2.13 The roots of malnutrition are imbedded in Tanzania's social and econ- omic structure, the alleviation of which requires a broad approach beyond th scope of this pro-ject. However, with the assistance of SIDA, the Government is building a National Food and Nutrition Program within the newly created Tanzanian Food and Nutr-ition Center. For the short term, the Government is emphasizing the dissemination of existing information through education and social communication. The severity of some nutritional deficiencies could be reduced through education, but appropriate nutrition information is not readily accessible to the population. Given the success of past efforts in Zambla and Ethiopia, nutrition education could be an essential element in Tanzania's nationwide nutrition effort. Accordingly, funds are included in the proposed project to undertake a pilot project to improve the nutritional awareness of households in sites and services areas. C. The National Sites and Services Program 2.14 The absence of effective planning and coordination among agencies responsible for development has contributed to the continuing unregulated urban gro-th. Ardhi has concentrated on reducing only the housing shortage, leaving the provision of basic infrastructure and communitv facilities to the concerned ministries and local agencies as their priorities and budgets permit. Moreover, participation of the private sector in the housing market was sharplv curtailed, following the 1Q71 Acquisition of Buildings Act nationaliz- ing non-owner occupied rental properties with aggregate values totalling over TSh 100,000. 1/ Swedish International Development Agency (SIDA), "A National Food and Nutrition Programme for Tanzania," 1970.  2.15 In 1Q3, at President Nyerere's request, Ardhi prepared a four-year National Sites and Services Program for the ten regional centers to provide 12,500 newlv surveyed, serviced or improved plots annually, with b&a*c in- frastructure and cocmmunity facilities. Recognizing the imporiince-of die self-help contribution to the housing stock, squatter settleoents will be upgraded where spontaneously organtzed efforts have resulted in *11-con- structed housing and viable neighborhoods. This is an importanit departure from previous policies of squatter demolition and resettle6ent which the Government found costly and socially disruptive. The proposed project-is a first step in the implementation of the Government's Progtki with project sites in Par es Salaam, Mw8nza and Mbeya. 2.16 To make credit available to low-income hotuseholds for construction loans, the Government established the Tanzania Housing Bank (THB) in January, 1973 (Chart 8184). A parastatal of the Treasury, its main purpose is to mohilize domestic savings and foreign funds for financing low-income housing for individuals and cooperative groups (ANNEX 1). 1/ The TUB provides tech- nical and financial assistance for sites and services projects, ujamaa villages, 2/ and other owner-occupied housing schpemes. Moreover, it promotes the use of local building materials, encourages the construction of housing types best suited to local conditions, and fosters the minimizing of building costs. 2.17 In June 1973, Ardhi was reorganized to reflect its changed role under decentralization and the need to improve performance in land development (ANNEX 2 and Charts 8185-8186). Major responsibility for land development in urban and rural areas, in^luding the installation of basic infrastructute and comn- munity facilities, was transferred to the regions. The Ministry retained responsibility for proposing and coordinating urban plannting polices, in- cluding the formulatlon and execution of housing policies and programs. Be- cause of limited technical capacity in the regions, a Sites and Services Section was created within the Ministry. The Section, however, is under- staffed, relving on technical assistance provided by the UNDP and otier ex- ternal financing and bilateral-aid agencies. 2.1R Ardhi maintains a limited manpower development program at its Ardhi Institute (ANNEX 3), providing sub-professional training for Government 1/ The THE replaced the Permanent Housing Finance Company of Tanzania (PVFCT), a commercial institution jointly owned by the GoVerwment and the Commonwe&lth Development Corporation (1K) set up In 1968 to finance medium- and high-income housing. The PHFCT funds were exeinafVe because they were borrowed from the public, Government, and fio,a'brdad at high interest rates. The resulting high housing costs aid- rmi'Wi led to public criticism and the subsequent take-over of the PIFCT's assilt, liabilities, and operations by the THB. 2/ A major instrunent of Government's rural development strategy is the reorganization of production on communal lines in "ujamsa" villages, usuallv comprised of 60-70 families. Ujamaa is a voluntary mevement hased on a maximutm of self-help and self-reliance. The ultitmte aim is to transform ujamaa villages into production-besed, uitipurpasE coop- erative societies.  positions in surveying, land management and valuation and town planning. 1/ Government funds provided for an increase in enrollment and staff and an expanslon of the physical facil4ties for surveyors and land management valners programs. However, a shortage of funds is a bottleneck in the Institute's town planning program, which is jointly funded by the Government and A UNDP grant. 2.19 There are only nine Tanzanian professional Town Planning Officers and fifteen Town Planning Assistants in Tanzania. With only 26 trainees currently enrolled, an estimated 4n additional Planning Officers and 90 Planning Assistants will be required hy 1980 in conjunction with the accele- rated development of upcountry toans and ujamaa villages. To assist in the staffing of the Sites and Services Section, funds are provided under the project to expand the Institute's facilities to accommodate 60 Town Planning students and to train technical staff of Ardbi. 2.20 The proposed project is not intended to satisfy the total demand for serviced and improved plots. Rather, the funds, technical assistance and trnining support will assist the Government to develop its institutional capa- citv to plan and implement an expanded program in the future. Furthermore, the provision of survey.pd plots, basic infrastructure, community facilities, and access to credit will permit low-income households in planned areas and squatter settlements to construct houses and improve their living environment on a self-help basis in accordance with Arusha principles and at acceptable per plot costs. III. THE PROJECT A. Project Description 3.01 The proposed project consists of: (a) approximately 10,600 newly serviced plots located as follows: (i) nearly 7,450 plots in three sites in Dar es Salaam, (ii) about 2,300 plots in Mwanza, and (iii) about 850 plots in Mheva. (b) improvements to basic infrastrncture and additional services in existing squatter settlements (N1anzese A and B in Dar es Salaam and Mwanjelwa in Mbeva), totalling approximately 8,800 dwellings; 1/ The three-year program trains secondary school leavers and graduates as Town Planning Assistants. Professional Town Planning Officers are trained outside Tanzania.  -8- (c) community facilities (eleven community education centers, one health center, seven dispensaries, and eleven markets); (d) consultants' services for the design and detailed engineer-ing of basic infrastructure and community facilities, prepamtIion. of a follow-up site and service project and overall project supervision; (e) expansion of physical facilities for the town plaaning program within the Ardhi Institute; (f) monitoring of the project by the Economic Research Bureau of the University of Dar es Salaam; (g) a pilot project to improve the nutritional awareness of households in sites and services areas; (h) a training prcgram for technical staff of Ardhi, to be carried out by consultants; (i) financing for the THB soft-loan lending program for construction loans for low-income households; and (j) equipment/vehicles. 3.02 The project is a significant first step towards implementing the National Sites and Services Program, even though the number of plots developed will meet less than half the estimated demand in the three cities. The size of the project and the number of regional centers included were deterwined. by the capacity of Ardhi, THB, and the regions to staff and administer the. project. Due to the magnitude of its urban problems, about 70% of the plots will he in Dar es Salaam. The project emphasizes squatter upgrading, in accordance with the Government's desire to keep project costs low, while capitalizing on the substantial household investments already mad. in those. squatter areas which have developed into viable communities. 3.03 Principal selection criterin (i'NNEX 4) for sites were: (i) avaii- rihi1irv oF lmnn4, suitabh-v sized and situn1ted to be economically developed inro low-cost houtsing areas (sites and servlces), and, in the case of Dar a's Salaam, in accordnnce with the Master Plan, (ii) natural conditions (topo- graphy, vegetation, soil and ground water conditions, etc.) suitable for construction and drainage, and (iii) location relative to eaployment oppor- tunities, public transport, and off-site infrastructure (roads, water, sewerage, power, etc.). For sqtiatter areas, an additional selection criterion was the existence of well-constructed housing and viahle neighborhoods.  -9- 3.04 In Dar es Salaam, the three sites for new plots (Mikocheni, Kijitonyama 1/ and Sinza, totalling 475 ha), and the squatter settlement areas (Qlanzese A and B. Totalling about 500 ha), form the beginning of north-south arc of residential districts on the western fringe of the city center, inden- tiffed in the Master Plan for early development (Map 10699). 7ocated on the principal roads to the city center, the sites are near the rapidly developing Ubungo industrial area of Morogoro Road. Upon completion of the Port Access Road (scheduled for abotut FY1977), the sites will also be within minutes of the major industrial areas along the Pugu Road. The sites are well located in relation to public transportation and off-site infrastructure, i.e., roads, water and power mains. In Mwanza, the site'(110 ha) is on the principal east-west rouite served by the power, water, and public transport system, and near the Nyakato industrial area, which Ls scheduled for a 100% increase in emiplovment (from about 1,000 to 2,000 employees) during FY1975. In Mbeya, rhe' site (140 ha) Is a squatter improvement area about 2 Ian south of the city center and close to the Tan-Zam Highway and Railroad. Characteristics of all sites are suwmmarized in ANNEX 4, Table 1. 3.09 Ftnds provided bv the project for consultants' services will be used for the design and detailed engineering of the infrastructure and community fnacilities. For the community facilities, the consultants will build upor thie innovative concepts that the Government is developing to deliver education and health services to the rural areas (parns 2.11-2.13), investigate the in- terrelationships between these services and, in collaboration with the Ministry of National Education, design facilities for multipurpose use (ANNEX 4). The consultants will also supervise construction of the basic infrastructure, community facilities, and the Ardhi Institute expansion. Moreover, the con- sultants will work with Ardhi to prepare a follow-up sites and services project, emphasizing the training of Tanzanian counterparts to carry out this work For subsequent projects. The project will expand the physical facilities of Ardhi Institute's town planning program (paras 2.18-2.19) by adding 3 equipped stuidio/workshops for about 60 students. Funds are also provided for monitoving the project (para 4.14) and training of technical staff of Ardhi (paras 4.15-4.16). 3.n6 With IPA assistance 4nd in collaboration with the Ministries of Hlealth, National Education and Agriculture, the pilot nutrition project will he carried out hv the Tanzanian Food and Nutrition Center. The purpose of the project is to encourage changes in food habits based on nutritional considerations and c:o develop capabilities to prepare and disseminate appro- priate nutrition Information. This will be done by providing funds and technical assistance to inter alia: 1/ In 1970, the Government developed the first quadrant of Kijitonyama (850 plots) as a pilot sites and services project, which proved unsuccessful clue to high design standards. The remaining three quadrant$ were redesigned and included in the proposed project.  - 10 - (a) assess, based on existing data, and additional data as required, the nutritional status, food consuption patterns and household hudget expenditures in sites and serYibes areas; (h) determine the most effective techniques to dissieunee Information to the nutritionally needy; (e) prepare, produce, and disseminate appropriate material (e.g. posters, radio advertisements, etc.) with particular emphasis on techniques to improve and supplement the nutri- tional value of food grown on urban shambas and to ungradw the importance of maintaining this food source; (d) evaluate the results and potential for expansion and, (e) provlde a short-term nutrition education course for TAMN cell leaders for home visits as well as counterpart tratin- ing in conjunction with technical assistance. B. T'esign Criteria and Standards 3.07 Layouts for Sinza and Manzese B (squatter settlement) have been prepared (Maps 10701-10703), and preliminary engineering comleted. The Sinza lavout is simple for economic construction and servicing. Provisioli is made for vehicular circulation throughout the site, allovog.easy act-ss to residlentlal areas, community facilities, and the main trunk road*-, whllec protecting the neighborhoods from excessive through-traffic. A safe, con- vpnient network of footpaths is also provided, linking plots to pub-l-ic-areas- andl the transport system. Community facilities are grouped to take advantage of their interrelationships and permit multiple use of the buildings and surrounding areas. Taking into account the location of existing houses, infrastructure, and community facilities, these criteria were used for Manzese A and B. Site plans and preliminary engineering for the ot-heor sites are being prepared, using similar design criteria and standarda; 3.08 The basic deslgn unit is the 10-house cell. 1/ in Sinza- the- plots are arranged within the blocks to avoid uneconomic double frontates, and to he at2least within 50 m of a small open space. The typical plot -s*e is ?88 m , which, althouigh large compared to previous Bank/IDA finance- projects. 2/ is appropriate in the Tanzanian context. Large ploVes are nee- essarv to accommodate a traditional Swahili house (often lodgint evetwl' families), a shanba, and a pit latrine or aqua privy on each plot. I'm 1/ This design unit is in keeping with the traditional TANU (Tangan'AdJw African National IJnion settlement pattern. 2/ Senegal 150 m2 , Nicaragua 110 m2 , and Jamaica 94 a 2  - \ 1 - Kijitonvama, where plots were surveved and allocated in 1970, the olot size is 370 m-. In the "anzese squatter areas, where olots are arranged haphazardlv, block surveys have been completed, resulting in blocks of 20-10 houses which are somewhat irregular. 3.09 The design standards (ANNEX 5) for the basic infrastructure are such that the per olot costs can he afforded bv households at the lower-end of the household income scale (Table 2). Provisions are made, however, for future improvements to roads and drainage and for the ir.stallation of indi- vidual house connections for water and electricitv, as household incomes permit. Each site will have a network of collector, primary, secondary, and pedestrian roads. Collector roads .will be macadam surfaced, suitable for bus traffic, whereas primarv roads will be gravelled, providing vehicular access to the neighborhoods. Secondary and Dedestrian roads serving the individual plots will be dirt roads. Carriageway widths on the surfaced roads will be kepz at a minimum, with provision for future widening. A water kiosk (standpine) will be provided for every 50 plots, vithin a walk- ing distance of 150 meters. In Mikocheni, however, because the high water table necessitates a central sewerage system, individual water connections will be provided. Sewage disposal at other sites will be provided by pit latrine. Plot-owners, who can afford, will be encouraged to construct aqua privies. The THB construction loan will include financing for such aqua privies. The initial power distribution system will provide for security street lighting on the main roads and electricity for the communitv facil- ities. The drainage system, designed to carry storn water and domestLc waste water other than from latrines, consists of open earth ditches along all roads, with culverts at vehicular crossings. C. Cost Estimates 3.10 Cost estimates prepared by consultants (COWIconsult) for the on-site infrastructure are based upon the nreliminary engineering for Sinza and Manzese B. These costs formed the basis for estimating the on-site infrastructure costs for the otlher sites. The off-site infrastructure costs were estimated separately for each site, also using the preliminary engi- neering for Sinza and Manzese B. All infrastructure cost estimates, based on December 1973 unit prices, are given in ANNEX 5, Table 1. The cost breakdown for the infrastructure components in Sinza, i.e., roads, drainage, water, sewage disposal and power, is shown in ANNEX 5, Table 2. 3.11 The estimated cost of the project, including land acquisition, technical assistance, construction loans and contingencies, is about TSh 119.6 million (US$16.7 million equivalent). The foreign exchange comDonent is small, US$3.9 million or about 38% of civil work.s (23t of project costs), due to labor intensiveness and economy levels of design standards. The main cost categories are summarized in the following table.  . .;ti '~~~~~~~~~~~~~~~ I ,vJ) 'i'1 V) ,-cal Foreigri i-tal Local .-,oreign 1otsI Excharge i.an i Aq4uisit ion C2mpensation 4,530 -4,530 634 634 0 Infrastructure Roads 7,268 3,115 10,383 1,018 436 1,45L) 30 Storm Water Drainage 2,558 1,096 3,654 358 154 512 30 Water SupFly 3,636 3,635 7,271 509 509 1,018 50 Sewage I iipcsal 1,995 855 2,850 280 120 400 30 Power Dit.-ibution Lt419 3,310 4,729 199 463 662 70 Sub-tottd 16,875 12,012 28,887 2,364 1,682 4,046 L- Community Facilities Community Education Centers 4,860 2,082 6,942 680 292 972 30 Health Facilities 2,080 891 2,971 291 125 416 Market s 910 390 1,300 127 55 182 30 Sub-total 7,350 3,363 11,213 1,098 472 1,570 30 Technical Assistance Consultant Services 590 1,765 2,355 83 247 330 75 Ardhi lnsditute Building 1,400 600 2,000 196 84 280 30 Future Project Preparation 295 885 1,180 41 124 165 75 Monitoring 180 535 715 25 75 100 75 Pilot Nutrition Project 270 800 1,070 38 112 150 75 Training 360 1,070 1,430 50 150 200 75 Sub-total 3,095 5,655 8,750 433 792 1,225 * s5 Equiptren t /Vehicles - 1,070 1,070 - 150 150 100 Tanzanian IJousing Bank Cons'ruction Loans 45,000 - 45,000 6,303 - 6,303 0 Contingencies Physical (approximately 16%) 4,840 2,075 6,915 678 291 969 30 3rice Escalatior. (approximately 31%) 9,300 3,985 3285 1,302 558 1,86o 3C Sub-total 14,140 6,060 20,200 1,980 849 2,829 30 TOTAL 91,490 160 119,650 12,812 3,945 16,757 23  - 13 - The infrastructure costs include a 152 physical contingency factor for the sites for which preliminary engineering has been completed, and 25% for the remaining sites. A 10% physical contingency allowance is provided for community facilities and the Ardhi Institute building. Due to rapidly incre"sing pricest particularly for oil and petro-chemical products, a high contingency allowance for price escalation is provided. For all civil works, price escalation of 1i%, 15%, 12%, and 122 is assumed in 1974, 1975, 1976 and 1977, respectively.' This amounts to an overall price contingency of about 31%. 3.12 Land acquisition costs consist of compensation payments for crops and existing houses which imust be demolished. 1/ Site lavouts take into account the existing houses, thereby minimizing the need to demolish. All compensation will be paid by the Government. Compensation payments have been made for the Mikocheni and Kijitonyasma sites in Dar es Salasm. Com- pensation for Sinza and upcountry town sites is underway. Total estimated compensation for the five sites is TSh 4.53 million. D. Project Financing 3.13 Financing of project costs will be shared in the following amounts and proportions: TSh US$ (millions) (millions) 2 IDA 60.8 8.5 50.8 Government of Tanzania 58.8 8.2 49.2 Total 119.6 16.7 100.0 The proposed IDA credit will be on standard terms to Government. This vtould finance 65% of the cost of civil works (infrastructure, community facilities and Ardhi Institute building), 75% of consultants services, the full cost of equipment, zero percent for land acquisition, and US$2.0 million for the construction loan funds for the THB. IDA funds for construction loans will be made available to THB at 3% annually. Although the funds provided for THB construction loans (TSh 14.0 million) are small relative to the need of TSh 45.0 million, the IDA contribution is expected to encourage other external financing and bilateral-aid agencies to follow suit. Detailed project financing is shown in Table 3. 1/ Since all land in Tanzania is vested in the State (the Freehold TiLles Convernion and Government Leases Act, 1963), no land purchase costs are included in the project.  - 14 - E. Procurement and Disbursemat 3.1~4 The prnlect will be carried out over three years dtrint 1974-77 (ANNEX 5, Flgtire 1). TnfraMtructure conetruction is expected to start on the f1rtt location (1(iiltonnvafa) in September 1974 and be executed for all sites by Juno 1977. Coustruetion of coouanity facilities will be phaed-oVer ao eighteen-month period ending December 1976. Construction will be labor intensive, involvinsi; simple equipment and techniques which are well vithin the capabilities o& local contractors. Because of the scattteid locations and staggered time schedules, it will not be possible to tender all sites at the aame time. In order to interest small and specialized c6ntractors and promote competition, the civil vorks on each sit* will be diyidod into small contracts varying betweoa TSh 2-10 millien.1/ As far as-postibl., contracts will be tendered at the-ame time to Xi;e equal chxce to large and small contractors. A contractor can bid for one or all coutat8 sep- arately, or combine certain contracts by type and/or locatiom. Mu evaiuating bids, local civil works contractors will be allowed a 7-1/2% prftfscee oan bids on foreign contractors. Due to the size, nature, location and ti fig of the project, it is unlikely that foreign firmn based outside Dar es Salaam will be interested la bidding for the construction works. However, there are a number of established contractors in East Africa who should be interested. In accordance with Bank/IDA guidelines for procure-nt, the GC'a9ett will advertise for the tenders in East African countries and notify b#dWs in Dar es Salsam. There will be prequalification of firm so that the G&ftnt- muent cU assess firs' cspabilities d ezperieme in panaging p%4*6st dan- struction in Tanzania, and whether they qualify for do sstic pr*ftVfrt*. Project construction will be supervised by consultants on beba f of the Government. The tendering procedure for the Ardhi Inatittit.'s btduitg will be similar to that of other civil works. EquipsWet,/vehiclW tbtal1img about US$150,000 will be procured through the Go 'er ts usual PzMeftft. 3.15 Disburserents of funds from the credit would be on the follui2ft basis: (a) 65% of the total expenditure for civil works i.e., infiztructtze, cosmunity facilities, and the Ardhl Institute buildina, agaifst paymet certificates endorsed by the consultants sad apPtrv d by Ardhi; (b) OOZ of the foreign or 75% of the local expenditure for co ultants' services costs, including the training program; (c) 100% of the c.i.f. price of imported goods, or 65% of the ex-factor-j price of locally manufactured equipmunt/vehiclAs, or 50% of local expenditure for imported goods putrchked locally; 1/ One possible grouping of contracts would be to tender ro*d and dratnSge in one contract, water supply and sewage disposal in anothftr, pIoWmr in the third, and comunmity facilities in the fourth.  - 15 - (d) 50% of the amount disbursed by THB for construction loans; 1/ (e) 50O of the local expenditure for the pilot nutrition project and monitoring. Disbursement requests for (a), (b), and (c) will be fully documented. Disburse- ments for (d) and (e) will be made against a certificate of expenditure, the iocumentation for which is not submitted for review, but is retained by the l'orr(ower and available for inspection by IDA during the course of project supervisioin missions. Any undisbursed funds at the closing date of Decemn~r 31, 1978 will be cancelled, unless IDA agrees to their use for additional construction loans through the THB. Estimated disbursement schedule is shown in ANNEX 5, Table 5. 3.16 To begin construction as soon as possible, Government has engaged consultants (COWIconsult) for the detailed engineering of the infrastruc- ture prior to the approval of the proposed Credit, and requested IDA for retroactive financing. The terms of reference for the consultants were agreed by IDA and work began in January, 1974. It is recommended that retro- active financing amounting to US$200,000 be included in the Credit. IV. PROJECT EXECUTION A. Executing Agency 4.01 The Borrower will be the Government of Tanzania. The Executing Agency will be Ardhi, which will have overall responsibility for the project. rhe Sites and Services Section, within Ardhi, will be responsible for plan- ning, designing, and construction of the infrastructure, and community facili- ties in consultation with concerned ministries. The local administration (i.e. plot allocation, collection of repayments, etc.) will be handled by the respective Regional Land Development Offices (RLDO). The THB, will give loans to individual plot-occupants and cooperatives for house coastruction. 4.02 The Sites and Services Section is presently understaffed. It has Lthre architect/planners, one Tanzanian and two expatriates, financed by bilateral-aid agencies, and a UNDP advisor as Acting Administrator. In addition to the Administrator, the Section is authorized four architect/ planners, three Town Planning Assistants, three civil/sanitary engineers, a Land Officer, two Operations Officers, and several technicians (statistician, site officers, inspectors, artisans and draftsmen). The Government is working f l<> htelp TUS in the early stages of the program, it is proposed that IDA disburse 50% of the loan amount paid by THB, even though Ii)A's ,:oT1 rihutior. to TUB is only 11% of its total need.  actively to fill these positions, and .,as assured 'DA that this will be com- pleted by June 1'375. Recruitment of experienced civil/sanitary engineers is the most difficult problem. 1/ In June 1974, two expatriate engineers are ex- pecced co be seconded to the section. 4.03 Tne three-year town plann4li):, curriculum of the Ardhi Institute has been re-evaluated to enable! the S^t.;s and Services Section to develop its capacity for project implementation. It has been rescructured to reflect the practical needs of Tanzania's urban areas. The National Sites and Serv- ices Program will be given priority in the assignment of Institute graduates. 4.04 The Sites and Services Section has engaged COWIcoasult for detailed engineering and conscruction supervision of all sites. To assist the regions in local administration, the Section will set up a Site Office on each site, staffed with a Site Officer, building laspector, and fundis (artisAns) who wil! provide advice and technical assistance in self-help construction and building techniques. 4.05 T'he RLDOs hiave direct responsibility in the regions for project administration, including land acquisition (compensation payments), advertis- ing and processing of plot applications, plot allocation, issuing of Rights- of-Occupancy, and collection of ground rents, premia and fees. The RLDO also assists in the formation of housing cooperatives, coordinates with local offices and agents of the ThB, and works with the Site Offices. The RLDO consists of three functional uniLs, i.e. Lands, Surveys and Town Planning. In Dar es Salaam, the staff includes five Officers and twelve Assistants. The RLDOs in the three regions included in the project are adequateli staffed. Additional 11.1.t! *idw Liistrative staff are being trained by the Ardhi Institute to carry out the Plrogram in other regions. 4.06 rhe THB is governed by a 'aoard of Directors, consisting of eight to twelve members appointed for unspecified terms.by the Minister of Finance. One Director is tho Principal S_.cretarv of Ardhi. The Cliairman is appointed iv the President. The General Manager, t-he chief executive officer. is ap- pointed by the Minister of Finance after c:onsultation with the Board. 4.07 The THB Qain-.ls Lts Head Office in Dar es Salaam, a branch office in M1oshi, and representatives in several other towns. The former PHFCT staff cpara 2. 16) forms the admi.ist;.-zive an.t operative nucleus of the THB. Be- cause THb Ihas broader objectives and functions than the PHFCT, additional staff are being recruited andk rrained as rapidly as possible. To date, wicth a total staff of over 100, .L. is three years ahiead of its staffing i!,w1:.lni: . as n, ?r-cri:;g r a Lt Che university level. Each . -r, Ab.ut 12 .1tUd