nepal’s urbanization, infrastructure need, and prospect of...

2/8/2017

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Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need,

National Workshop on Land PoolingFeb 2-3, Kathmandu

Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, and prospect of LP as a financing tool and prospect of LP as a financing tool and prospect of LP as a financing tool and prospect of LP as a financing tool

Mahendra Subba

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Urban System: Settlement DistributionUrban System: Settlement DistributionUrban System: Settlement DistributionUrban System: Settlement Distribution

Urbanization is

marked by emerging

urban corridors,

development of hill

valleys, regional

cities, intermediate

towns, small towns

and market centers.and market centers.

26% out of 217

municipalities has

population greater

than 50,000

Urbanization level is

expected to cross 50

% mark by 2025

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SN Items Deficit

(NPR in m)

New Demand

(NPR in m)

Total

(NPR million)

A Hard cost: Basic urban infrastructure

1 Urban Water Supply (piped water supply) 19,177 14,537 33,714 (1.4%)

2 Urban Sanitation (Toilet, Sewerage, Storm Water Drainage) 449,484 357,287 806,771 (32.9%)

3 Solid waste management (Access to SLFS) 1,960 1,509 3,469 (0.1%)

4 Urban Transportation (upgrading, new road, bus park, street

light)

817,961 783,146 1,601,107 (65.3%)

Urban Investment Need for 217 municipalities (2016-2031): NUDS

light)

5 Urban Energy (Household connection to electricity) 2,350 1,859 4,209 (0.2%)

6 Municipal office building 3,356 3,356 (0.1%)

Sub-Total 1,290,932

(52.6%)

1,161,694

(47.4%)

2,452,626 (100%)

B Strategic infrastructures to unleash dev potential—including to

cater to cost of specialized needs of provincial capitals (@ 25%)

613,157

C Soft cost: Project appraisal, design, institution development,

community resilience, land provisioning (@22%)

539,576

Total 3,605,359

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Expectation of National Aspiration Expectation of National Aspiration Expectation of National Aspiration Expectation of National Aspiration

• Graduation of Nepal to Developing Country by 2022 from the present status of Least Developed Country (Graduation Approach, NPC, 2014)

• GNI required to increase from USD 720 (2015) to USD 1502 (2021)

• Investment need of NPR 9,697 billion (at constant price)—where share of service • Investment need of NPR 9,697 billion (at constant price)—where share of service sector (71%), industrial (19%), and agriculture (10%). Investment is proposed to come from the private sector (69%) and the government (31%).

• Nepal to become an inclusive, equitable, and prosperous middle-income country by 2030 (SDGs, 2016-2030, NPC, 2015)

• GNI required to increase to USD 2,500 (2030) from USD 772 (2015).

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Urban Sector National Resource AllocationUrban Sector National Resource AllocationUrban Sector National Resource AllocationUrban Sector National Resource Allocation

Unit 2013-2014 2016-2017

Government Annual Budget NPR in b 516 1,049

Urban Dev Sector Budget NPR in b 20

(3.9%)

59

(5.6%)(3.9%) (5.6%)

Urban Sector Budget per

Capita (available)

NPR 4,421 4,725

Urban Sector Budget per

Capita (needed)

NPR 13,136

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Total Damage and Loss NPR 706 b

Budget (2016-2017) NPR (b) %

Implications of Implications of Implications of Implications of GorkhaGorkhaGorkhaGorkha Earthquake (2015) on Earthquake (2015) on Earthquake (2015) on Earthquake (2015) on resource allocationresource allocationresource allocationresource allocation

Budget (2016-2017) NPR (b) %

National 1,049

Capital 312 29.7

Reconstruction 141 13.5 (45 % of Capital)

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National Policy: NUDS (2017)National Policy: NUDS (2017)National Policy: NUDS (2017)National Policy: NUDS (2017)

Strategy Activities/Inputs

S86: Mobilize investment through

alternative financing instruments

including private sector involvement

Prepare and internalize Guidelines

for financing methods

S105: Prioritize implementation of large

scale land pooling, land banking and

land swapping schemes—as

alternative means to increase public

possession of private land

Review and augment the existing Land

Development Revolving Fund of DUDBC-

-with adequate resource

Prepare Guidelines and legal basis for

land banking, land swapping and review

the current legislation on land

development including land pooling

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Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling

Land use Area in hec Distribution

(%)

Residential 500 50

Industrial 100 10

Finance, business and offices 50 5

Community space 100 10Community space(College, school, Public Facilities (Bus park, Tele Communication Center,

Electricity Sub-Station, Site for water reservoir, waste water treatment plant,

solid waste transfer station), Public Event and Exhibition Ground, Shopping,

recreation and leisure, stadium and playground, Multi-purpose town hall,

religious institution, fire station, police station, vegetable market)

100 10

Green open space 50 5

Road 200 20

Total 1,000 100

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Infrastructure Quantity Rate (NPR) NPR (m)

Road (with 9 m av) 222 km 20 m/km 4,440

Sewerage 222 km 15 m/km 3,330

Storm water drainage 222 km 10 m/km 2,220

Water Supply 30,000 hld 30,000/hld 900

Sanitary landfill site 30,000 hld 1,000/hld 30

Street lamps (50 m int) 4,440 lamp 100,000/lamp 444

Electricity 30,000 hld 5,000/hld 150

High speed internet 30,000 hld 7,000/hld 210

Telephone 30,000 hld 5,000/hld 150

11,874

(USD 120m)

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• Total infrastructure development cost of NPR 11.9 billion is to be financed by

• government and local bodies’ contribution (10%)

• sale of 150 hectares of industrial, business and office enclave land (90%)

• Estimated sell value of NPR 40 million for each individual industrial-business • Estimated sell value of NPR 40 million for each individual industrial-business plot of 5,000 sqm—totaled 300 plots recoups investment cost.

• 100 hectares of community space also generates additional income.

• 250 hectares of public land including road (200 hec) and open space (50 hec) created.

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Urban Development Programs and Share of LP Urban Development Programs and Share of LP Urban Development Programs and Share of LP Urban Development Programs and Share of LP

SN Program Direct

investment

Augmentation

from land

pooling

Total

investment

USD million

1 Urban Economic Corridor 180.4 387.7 568.1

2 City Cluster Development 262.7 343.5 606.22 City Cluster Development 262.7 343.5 606.2

3 Urban Environment

Improvement

269.1

4 Pro-Poor Urban Revitalization 59.0 9.6 68.6

5 Smart City 336.9 129.6 466.5

Total 1,108.1 870.4 1,978.5

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Concluding Remark Concluding Remark Concluding Remark Concluding Remark

• Land Pooling has a broad prospect as a financing tool for urban infrastructure development as much as for planned spatial development.

• For it to become a sustainable method, empowerment of landowners of the project area is critical—by way of establishing a project implementation mechanism which ensures creation of project implementation mechanism which ensures creation of project fund with equity shares of participating landowners, government, municipality and other stakeholders in proportion to their contribution.

• This is to enable efficient management of financial and land resources—for enhanced social and economic benefit of participating community and landowners.

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Thank you!Thank you!

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