Report No. 290a-BT fILE CopyBotswanaAppraisal of theFrancistown Urban Development ProjectMarch 7, 1974Transportation and Urban Projects Department

Not for Public Use

Document of the International Bank for Reconstruction and DevelopmentInternational Development Association

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 It may not be published,quoted or cited without Bank Group authorization.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 respon-sibility-for the accuracy or completeness of the report.

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CURRENT EQUIVALENTS

Currency Unit = South African Rand (R)

US$1.00 = RO.66US$1 million = H666,666

R1.00 = US$1.50Rl million = US$1,50O,OO0

MEASURES

mm (millimeter) = 0.039 inchesm (meter) = 3.28 feetm2 (square meter)= 1.196 square yardsm3 (cubic meter) = 1.31 cubic yardsha (hectar) = 2.1/3 acres

ABBREVIATIONS

DWF F Dry Weather Flowg.p.c.d = Gallons per capita per dayl.p.c.d = Liters per capita per dayKVA = Kilovolt AmpsmW = MegawattsMgd = Million gallcnF per day

FTC = Francistown Town GouncilODA British Overseas Development AdministraticnSHHA = Self-Help Housing AgencySIDA = Swedish International Development AgencyUNDP United Nations Development Program

FISCAL YhAR

April 1 to March 31

ANNEXES

ANNEX 1 Regional Development Potential in Northern Botswana

ANNEX 2 The Selection of an Urban Form

ANNEX 3 Design Standards and Project Quantities

ANNEX 4 Cost Estimates

ANNEX 5 Plot Allocation Procedure in Sites and Services

ANNEX 6 Monthly Charges

ANNEX 7 Draft Certificate of flights and Building By-Laws

ANNEX 8 Francistown Town Council:Notes on Future Finances together with ProjectedRevenue and Expenditure Statements

ANNEX 9 Francistown Town Council:Notes on Financial Aspects of Electricity and Watertogether with Proposed New Charges

ANNEX 10 Francistown Town Council:Summarized Balance Sheet at December 31, 1972

ANNEX 11 Estimated Disbursement Schedule of IDA Credit

ANNEX 12 Comparative Estimates of Costs of Developed Plots in Botswana

ANNEX 13 Monitoring Project Progress

CHALiS

IBRD 7822 Francistown Town Council Organization Plan

IB3RD 7905 Construction Schedule Bar Chart

MAPS

IBRD 10511 Republic of Botswana

IBRD 10512 Botswana: Northern Region

IBRD 10513 Botswana: Francistown Existing Land Use

IBRD 10514 Botswana: Francistown Proposed Urban Structure Planning

FIGURE

Fi.ure 1 Botswana: Francistown Typical Site and Services Layout

BOT S'ANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

Page No.

SUMMAff AND CONCLUSION ...... . . ............... . . - iii

I. INTRODUCTION ..................................... 1

II. BACKGROUND....... ...... o..o***..*.*o.......a*. 2

A. General ........-......... #.... 2B. The Region and Francistown .. ..... o ... o ........ 3C. Structure of Francistown....................... 3D. Genesis of the Project ................ ....o ................. 4

III. THE PROJECT.. 6....

A. Project Description....... ... 6B. Design Standards..d a r ds. . ........ *....... 9C. Cost Estimates ................................ 10D. Financingo ....... o..o.... .-... o.....o ... o .... 11E. Procurement and Disbursement.*.................. 12F. Project Execution and Monitoring................ 13

IV. ORGANIZATION AND MANAGEMENT. ...... . ... . 1l

A. Central Government14............................ lbB. The Francistown Town Council..... .......... 14C. Land Tenure .................,.... 0...... 0..0.*.. 16D. Cost Recovery acnd Pricing..0.0. ".r... 0ing..0 18

V. JUSTIFICATION..o... o .............. o 24

VI. RECCUMENDATIONS . .. o....o.............. .......... 26

This rdeport was prepared by Messrs. C.E. Madavo (Economist), E. Greenwood(Financial Analyst), Ms. D. Haldane (Consultant) and Ms. C. Tager (Researcherand Editor).

SUMMARY AND CONCLUSIONS

i. Francistown, Botswana, cannot-by whatever yardstick--be rankeda major city. It is nevertheless Botswana's largest town. With about22,000 inhebitants, it is growing by about 7% a year and is the center forNorthern Botswana which contains half the country's 640,000 people. Owingto recent mining developments (copper and diamonds, etc.), the region hasbecome the focus of major export oriented economic activity in the country,and Francistwon could develop into an important service center. However,it lacks the infrastructure and serviced industrial, commercial, and residen-tial land needed for further development.

ii. Francistown today is more a collection of traditional villagesettlements than a town in the conventional sense. Nearly 80% of Francis-town's inhabitants, mostly black Batswana, live in mud huts almost entirelywithout water or sewerage. The other 20%, mostly well off white families,live on the better-served east side. Suchi wealth as exists is badly dis-tributed: per capita income of the great majority of its citizens is aboutUJS$75 a year and the top 6% of the households have 64% of the income.

iii. Anticipating Francistown's new role, the Government prepared, withthe hlelp of consultants, a town structure and investment plan. The plan aims,in the first instance, to relieve the existing backlogs in infrastructure andserviced land and later to embark on such investments as would be warrantedby development of the town's economic base. From a rather conventionalbeginning, the plan has evolved into a flexible, innovative, and yet simpleapproach which faces squarely the problem of resource constraints. Governmenthas incorporated self-help efforts and minimum cost solutions as basic elementsof its investment program. Perhaps most significantly, the program willbenefit virtually the entire range of income groups in the town.

iv. The Bank Group, through assistance for the Shashe infrastructureproject (Loan 776-BT) and the Francistown-Maun Road (IDA Credit 63), hasparticipated in strengthening Northern Botswana's regional economy. Theproposed project is a complementary component of this regional effort,designed to help establish a viable urban center to serve the region and toprovide a means by which the secondary benefits of these projects may reachthe lowest income Batswana.

v. Development of Francistown will be undertaken in stages. Sta'e Icovering the period up to 1976 will comprise an Overseas Development Adminis-tration (ODA) financed project as Phase I and the proposed IDA credit asPhase II. The ODA project being constructed in 1973 and 1974 includes trunksewers for the existing commercial and industrial areas, sewage stabilizationponds, 316 medium/low-cost lhousing units, 100 site and services plots and650 traditional housing plots at a total cost of R703,000 (US$1,054,000).

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vi. The project to which IDA will provide assistance and whose construc-tion period will overlap with that of the ODA financed one will provide:

(a) low-cost residential development comprising:

- 1,000 plots for traditional housing (mud and thatch)serviced with water standpipes for every 80 housesand individual aqua privies,

- 800 plots for site and services (self-help housingbuilt of permanent materials) serviced with waterstandpipes for every 25 houses and individual aquaprivies,

- upgrading of existing low-cost housing and squatterareas affecting about 1,000 households (provisionof water, roads, rubbish collection and securitylighting).

(b) preparation and servicing of 11 ha of land for industrialdevelopment, 5 ha for commercial development and 25 plotsfor high-cost housing;

(c) construction of community facilities including a school,health clinics, a market, and Francistown Town Counciloffices;

(d) construction of primary infrastructure including water,electricity and roads; and

(e) technical assistance and construction supervision.

vii.. The proposed IDA credit of US$3.0 million would cover 69% of the totalcost of the project of US$4.36 million excluding land. In addition to foreigncosts IDA would finance about 27% of local expenditures. The Government wouldfinance US$1.36 million, and provide the land which is already in its possession.

viii. Three of the four contracts under the project, worth about US$3.32million, would be awarded on the basis of international competitive biddingin accordance with IDA Guidelines. Procurement under the fourth contract

for US$360,000 worth of building materials would be awarded after local ad-

vertising. The delivery of these materials must be closely coordinated withthe rate of construction of self-help houses in order to avoid storingmaterials for long periods of time.

ix. The Borrower will be the Republic of Botswana which will be respons-

ible for constructing all the facilities under the project. The Borrower

has agreed for this purpose to establish a Division within the Ministry

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responsible for urban development and one staff member in thls Division willbe stationed in Francistown to supervise project execution. Tae FrancistownTown Council (FTC) ill operate the project facilities once the'- a:xe con-structed and will create a Self-Help Housing Agency (SHIIA) to ailocate plotsin site and services schemes and traditional housing areas, marage '-hebuilding materials loan scheme, and assist people in actually constiuctinghouses.

x. The project costs will be paid by individual be.nefic-iarIcz.; tiheFrancistown Town Council (FTC) and the Government. The costs of ~crumunityfacilities would be met through Government grant (school, publi. hezathclinics and tecinical assistance) and through FrancistownT Toxon Council generalrevenues (Council Offices, market, main roads). The costs of off-site watersupply and electricity will be recovered through utility tariffs-. Industrial,commercial, and high-cost plots will be leased by Central Government atcurrent market prices which are substantially in excess of the Costs of landand services. The inhabitants of the residential areas to be devel2?ed underthe project will make monthly payments covering building materials ..oans,recurrent costs of Town Council services (water, rubbish collection, 2ttc.)and also contribute to the capital costs of servicing the areas. There willbe a small gap of between Rl and R2 per household per month between theresidents' monthly payments and the costs of servicing the low-income areaswhicli will be met by Government grant. The grant element is justified bythe considerable public health benefits that piped water and sewerage andsolid waste disposal will bring not only to the large squatter population,but to the town as a whole.

xi. The ability of the FTC to meet the debt service and running costsresulting from the project is apparent even with a modest revenue growth(excluding utilities) of 10% per annum, and substantial (40%) default ratein individual payments for aqua privies and building materials loans. If,as Government predicts, revenues grow by over 17% per annum between 1972and 1980, and defaults are kept at 10% which the Botswana Housing Corporationlias experienced in its low-cost housing schemes, there will be prospects ofundertaking substantial improvements in municipal services over and abovethe project.

xii. Subject to para 6.02, the project is suitable for an IDA Creditof UtS$3.0 million.

BOTSWANA

-PPRAISAL OF THE

FRANCISTOWN URBAN DFEVEL(OPMENT PROJECT

I I Ni wrRoic'rTON

1.01 TI'h (ove rilmeit of IRotsiwana ilitelds to transform Fr:incistown f'r-omwhat i'; tow largel v a shantv settlement iLto a regional growth center forNorthern Botswana. The project will alleviate existing shortages in infra-

structure and serviced land in accordance with the outline 'Taster Plan

prepared bv H-ugh Wilson and Lewis Womersley, Architects and Town Planners;in association with Scott, W4ilson, Kirkpatrick and Partners, Engineers (!.K).

The design of the project places strong emphasis on simple, low-cost solu-

tions, as well as self-help.

1.02 Project discussions have been held between the Government andi

IDA beginning in Marclh 1972. During thesc discussions, tlhe original pla.nfor a project based on a 10-year investment program was phased for moreincremental implementation. Modifications were also introduced to relate

the program standards to the lunited resources of the town and its citizens.

A program was then formulated covering needs for the period up to 1976, The

Government approached the British Overseas Development Administration (ODA)

to finance initial parts of the program in order to enable some construction

to begin while technical proposals for the rest of the program were being

finalized. It is thlis second ?art of the program that the Government is

submitting for IDA financing.

1.(3 This report is based on the findings of a mission consisting ofMessrs. C.E. 'ladavo (Chief of Mission, Transportation and Urban Projects),E. Greenwood (Projects, East Africa) and H.S. Mangat (Consultant). Thce

mission visited Botswana in April 1973; Messrs. Madavo and Mlangat subsequentlyvisited Botswana for one week [n September 1973. Ms. C. Tager (Transporta-tion and Urban Projects) and "Is. D. Ilaldane (Consultant) participated in tiepreparation of the report.

II. BACKGROUND

A. General

2.01 Roughly 90% of Botswana's 640,000 citizens called the Batswanalive in rural areas and eke out a living as subsistence farmers and cattle'a'rders. Rural poverty and uneven distribution of both arable land andcattle are causing many Batswana to move to the towns in search of betteropportunities. Per capita income in rural areas is now estimated to avera,gea.bout R40 (US$60), but the vast majority of rural dwellers are, in fact,even poorer; some 43% are without arable land and 27% have no cattle at all.manv depenid on money remittances from family members and relatives who have

alreadY moved into Botswana's own small modern sector or are in temporaryemployment in the mines and on the farms in South Africa.

2.02 Botswana has only five towms whose combinied population was some60,000 people at the time of the 1971 census: Lobatse, Gaberone (the capital),Francistown, ODrapa and Selebi-Pikwe (see Itaps 10511 and 10512). Both Orapaanil Selebi-Pikwe are near Francistown and have been built since the recentmineral discoveries in Northern Botswana. Selebi-Pikwe, built a little morethan two vears ago with IBRD assistance (Loan 776-BT), already has some20,000 people. The Second National Development Plan (1973-1978) forecaststhat thle country's urban population will doubJe between 1971 and 1978 to some123,000, with most of this growth expected to occur in the northeastern partof the country, in the general region of Francistown. The discrepancybetween urhan population growth (11%) and wage employment (7%) }as resultedin increasing unemployment and the emergence of a large town populati.on whosesncomes are too low to afford conventional services ordinarily associatedwith town development.

3.03 While rural development is giver Priority in the developmaentstrategy for Botswana, the Government is planning an urban developmentprogram of mnodest proportions as a necessary corollary. The oojective isto prevent the emergence of problems now plaguing other towns and cities inAfrica whichi have grown without the benefit of effective plans for orderlv,:row'-h. British tow-n planning consultants have, on behalf c.f tile Government,prepared long-term physical plans for (aberone, Francistown, and Lobatse,including proposals for urban investment. Within these plans, the GovernmentIs promotintg residential development (houses and services) which is, oli the

r.''i'Jge, at a much lower ccst than in the past so that townspeople can affordtiCo services and thus avoid large-scale public subsidies and/or squattersettlemnents. The proposed development at Francistowm is thc §overnment'sfi rst Onportunity to implement this new approach to urban development withfts emphasis on simple, low-cost soluttionq. It is also part of a deliberate*Iovernmcnt policy to promote the economic development of Northern Botswana,-area relatively r-ich in natural resources (see Annex I and flap 10512).

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B. The Region and Francistown

2.04 Francistown is, apart from Selebi-Pikwe, the only major town in

the snarselv populated region of Northiern Botswana, whiichl covers some100,000 sq mi and is home for about 357,000 people--more tl-An half ofBotswana's ponulation. Located on the single rail line in the country andequipPed with an airport, Francistown developed as a communications andcomnmercial center and is becoming the staging point for impending deve loprment in the region.

2.05 The majority of Francistown's inhabitants have thu1s far henefirtedlittle from develonment in the region but this is expected to change. First,regional growth will create the need for more goods and services includinggovernment administrative functions, resulting in more jobs in V'rancistown.

Secondly, as more inines go into operation they will inject income into theregion, some of which will be spent in the Francistown commercial and retailsectors. Alreadv providing some 4,000 jobs, a number of Francistown enter-prises have nlans to expand if more serviced land can be provided. Newenterprises including a small-scale industries Project to he financed bySTDA/UNDP, a brewery, and a Coca-Cola bottling plant intend to establish inthe town and would nrovide about 300 additional jobs.

C. Structure of Francistown

2.06 Francistown was for vears a Tati Companv ton-m. The Tati Company,

owned by Glazer Brothers of South Africa, controlled land, mineral and tradingrights in the Northeast District and FrancistoTn until the mnid-1960s whenBorswana became independent. Since 1969 two agreements havE' been concludodbetween the Company and the Government. The 1969 agreement resulted in thetransfer of 500 sq mi of rural land in the Northeast and 14,000 ha inFrancistown to the government. Then in 1972 the Government: acquired mostof the undeveloped land in the 22 sq mi municin?al area of Francistown.

2.07 This historical background of Francistown is reflected in thehighly segregated n)attern of land use in the town (see Mlap 1t0i13). On theeast bank of the Tati -River are the town commercial center and the high-income residential area where some 300 mostly white families with annualhousehold incomes of about R10i,000 (ITS$15,000) reside. Government Campbetween the railwav and the Ntslie River constitutes a second area which is

occupied bv another 300 or so medium-income white households and a fewBatswana civil servants with annual incomes of about R1,600 (US$2,400).1West of the river are the traditional settlements consisting, mostly of mludbuts which represent a thtird discrete area where nearlv 4,000 1(enerallv poor

Batswana families live. Fourth is Dumela--a 120 ha industrial estate somefive miles north of the Present town center oni the onlv lanid availlblc' vllicii

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was not subject to the Tati Company's trading rights covenant. However,Dumela is on black cotton soil which is exDensive to build on. That, combinedwith its distance from the towm center has discouraged industries fromestablishinF tlhere; tlhey prefer sites closer to the center of town (seeAnnex 3).

".08 Per capita income in the town was estimated at R153 (US$229) in?7 Q, but this figure is strongly influenced bv the high-income levels of

the non-Batswana population (see following table). The per capita annualincome of nost Batswana in Francistown is more of the order of R50 (US$75).

Income Distribution in Francistown (1970)

% of Composition v Distribution oftlouseholds estimated cash incomne

About 67 Mostly white expatriates 64.tic next 9% Mostly white expatriates 14-he next M5% '-ostly Batswana 22The next 20% All Batswana None 1/

Source: Francistown Planning Proposal, p. 108.

2.09 Almost 80% of the Batswana in thie town live in rondavels of nudand thatchi with few or no urban services such as water, sanitation, solid-aste removal and coruunity facilities. Fven the relatively affluent east

side or the town does not have a waterborne sewerage svstem and this isbecomin. a serious constraint, especially in the existing industrial andcommercial areas.

2.10 The nrovision of jobs and essential services (infrastructure an'sminimum shelter) are subject to severe constraints. Because the greatmajority of the townspeople are poor, and hecause of the general poverty ofthe town antd the country as a whole, the infrastructure aind residentialdevelopment must be low-cost to be affordable. No less pressing for Francis-town is the need to integrate the east and west banks illto a single town.

D. Genesis of the Project

1.11 The acquisition of most of the undeveloped land in Francistown bythe Government between 1969 and 1972 afforded an opportunity to plan for tile

I/ These families probably exist on money remitted bv relatives working int.lt mizc1s in South Africa or are supported bv relatives who have jobsin FrinTiistown itself through the network of extenided families.

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orderly and unified development of the town. A long-term strategy forFrancistown's development up to 1995 with an intermediate phase for the early1980s was then formulated. The existing white township located on the northside of the Tati River will be integrated and consolidated through extensionsaccommodating a mixed-income Batswana population. The reconstituted townwill be more compact with work places, shops, schools, and the railwaystation more easily accessible to most of the town's citizens. Developmentemphasis initially will center on thie east bank of the Tati, except forsquatter areas located to the west, which will be upgraded. When the popula-tion of the town reaches the projected 35,000 between 1980 and 1985, furthergrowth would then be accommodated south of the river (see Map 10513 andAnnex 2).

2.12 In addition to selecting the future urban form of the town, theGovernment had to define the investment program including phasing, thestandards to be used, and financing. The Government rejected recommendationsfor a large conventional housing program and squatter demolition in favorof squatter upgrading, serviced traditional housing areas (mud huts) andsite and services schemes which would be more within the means of Francistownlow-income graups. Minimal design standards allowing for progressive improve-ment were to be used: communal water points, earth and gravel roads, streetlighting on wooden poles, etc.

2.13 Infrastructure was to be designed so that it could be progressivelyextended or upgraded, and was linked to a two-stage investment program.Stage I was to cover the period up to 1976 and Stage II the period there-after. In order to initiate construction while the feasibility of the restof the program was still under study, Stage I itself was further dividedinto two phases. Phase I is being implemented between 1973 and 1974, costssome R703,000 (US$1,054,000) and is being financed by ODA. The ODA projectwill provide sewage ponds and sewers to serve the existing industrial andcommercial areas, 316 conventional housing units for medium/low-incomegroups, 100 site and services plots and 650 traditional housing plots.Phase II (1974-1976) costing some R2.91 (US$4.36) million constitutes theproject for which IDA financing is being requested.

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III. THE PROJECT

A. Project Description

Project Components

3.01 The IDA project would provide:

(a) 1,800 low-income residential plots including 800 for siteand services housing built of permanent materials and1,000 plots for traditional housing of mud and thatch:

- building materials loans for 800 site and servicesplot occupants; and

- upgrading of existing low-cost housing and squatter(upgrading) areas affecting over 1,000 households.

(b) preparation and servicing of 5 ha of commercial and 11 haof industrial land, and 25 plots for high-cost housing;

(c) construction of community facilities including two wardor neighborhood offices for Town Council staff, a worksdepot, a market, two health clinics, a school, and ablock of Town Council offices;

(d) primary infrastructure:

- installation of borehole pumps, booster pumps andwater mains,

- laying of branch sewers for the new industrial andcommercial areas,

- additions to existing road network and foot bridges,

- improvement of the electricity distribution system;

(e) technical assistance including construction supervision.

(i) Low-Income Residential Development

3.02 Residential Plots: Residential plots serving two different low-income groups will be offered in five separate sites. In the area betweenthe Tati and t7he Ntshe Rivers, some 1,000 plots will be developed wherehouseholds earning less than R300 pa. can build traditional houses of mud

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B. The Region and Francistown

2.04 Francistown is, apart from Selebi-Pikwe, the only major town in

the sparselv populated region of Northern Botswana, whiich covers some10(,000 sq mi and is home for about 357,000 people--more than half ofBotswana's ponulation. Located on the single rail line. in the country andequipped with an airport, Francistown developed as a communications and

commercial center and is becoming the staging point for impending develop-ment in the region.

2.05 The majority of Francistown's inhlabitants have thins far b)enefirtedLittle from develoDment in the region bujt this is expected tc) chanige. First,regtonal growth will create the need for more goods and services includinggovernment administrative functions, resulting in more jobs in Prancistown.Secondly, as more inines go into operation they will inject income into theregion, some of which will be spent in the Francistown commercial znd retailsectors. Already providing some 4,000 jobs, a number of Francistown enter-prises have nlans to expand if more serviced land can be provided. New

enterprises including a small-scale industries project to he financed bySIDA/UNDP, a brewery, and a Coca-Cola bottling plant intend to establish inthe town and would nrovide about 300 additional jobs.

C. Structure of Francistown

2.06 Francistown was for vears a Tati Companv town. Thie Tati Company,owned by Glazer Brothers of South Africa, tontrolled land, mineral and tradingrights in the Northeast D)istrict and Francistown until the mi(l-1960s whenBotswana became independent. Since 1969 two agreements have been concJudptlbetween the Companv and the Government. The 1969 agreement resulted in t;hetransfer of 500 sq mi of rural land in the Northeast and 14,000 ha in

Francistown to the government. Then in 1972 the Government acquired mostof the undeveloped land in the 22 sq mi municinal area of Francistown.

2.07 This historical background of Francistown is reflected in thehighly segregated nattern of land use in the town (see MIap lo513). On the

east bank of the Tati River are the town commercial center anid the hiigh-income residential area where some 300 mostly white families with annualhousehold incomes of about R1O,000 (ITS$15,900) reside. Government Camp

between the railway and the Ntslie River constitutes a second area which is

occupied bv another 300 or so medium-income whlite households and a fewBatswana civil servants with annual incomes of about R1,600 (US!2,400).lWest of the river are the traditional settlements consisting, mostly of m1udhuts whiclh represent a third discrete area where nearlv 4,000 ()( eneraliLv poorBatswanA families live. Fourth is Dumela--a 120 ha industrial estate somefive miles north of the present town center on the onlv lanid availaoble wlich

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was not subject to the Tati Company's trading rights covenant. However,Dumela is on black cotton soil which is exoensive to build on. That, combinedwith its distance from the town center has discouraged industries fromestablishing thlere; they prefer sites closer to the center of town (seeannex 3).

.03 Per capita income in the town was estimated at R153 (US$229) in1170, but this figure is strongly influenced bv the high-income levels ofthe no-l-Batswana Population (see following table). The per capita annualincome of most Batswana in Francistown is more of the order of R50 (US$75).

Income Distribution in Francistown (1970)

v of Composition %' Distribution ofrlouseholds estimated cash invcoTe

Aout 6 Mostly white expatriates 64he next 9% Mostly white expatriates 14

The next ~5% Mostly Batswana 22The next 20% All Batswana None 1/

Source: Francistown Planning Proposal, p. 108.

2.09 Almost 80%1 of the Batswana in the town live in rondavels of mudand thatch with few or no urban services such as water, sanitation, solid.waste removal and cormunitv facilities. Fven the relativelv affluent eastside or the town does not have a waterborne sewerage system and this isbecoming a serious constraint, especially in the existing industrial andconmercial areas.

2.10 The -rovision of jobs and essential services (infrastructure anlminimum shelter) ire subject to severe constraints. Becat2se the greatmajority of the tounspeople are poor, and because of the general poverty ofthe tow'n ancl the country as a whole, the infrastructure and residentialdevelonmenat must be low-cost to be affordable. No less pressing for Francis-town is the need to integrate thle east and west banks iilto a single town.

D. Genesis of the Project

2.11 The acquisition of most of the undeveloped land in Francistown bythe Coovernment between 1969 and 1972 afforded an opportunity to plan for tthe

I/ These famllies probablv exist on moneY remitted bv relatives working inCie mines in South Afri4ca or are supported bv relatives who have jobsin -r-l istown itself through the network of extended families.

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orderly and unified development of the town. A long-term strategy forFrancistown's development up to 1995 with an intermediate phase for the early1980s was then formulated. The existing white township located on the northside of the Tati River will be integrated and consolidated through extensionsaccommodating a mixed-income Batswana population. The reconstituted townwill be more compact with work places, shops, schools, and the railwaystation more easily accessible to most of the town's citizens. Developmentemphasis initially will center on the east bank of the Tati, except forsquatter areas located to the west, which will be upgraded. When the popula-tion of the town reaches the projected 35,000 between 1980 and 1985, furthergrowth would then be accommodated south of the river (see Map 10513 andAnnex 2).

2.12 In addition to selecting the future urban form of the town, theGovernment had to define the investment program including phasing, thestandards to be used, and financing. The Government rejected recommendationsfor a large conventional housing program and squatter demolition in favorof squatter upgrading, serviced traditional housing areas (mud huts) andsite and services schemes which would be more within the means of Francistownlow-income groups. Minimal design standards allowing for progressive improve-ment were to be used: communal water points, earth and gravel roads, streetlighting on wooden poles, etc.

2.13 Infrastructure was to be designed so that it could be progressivelyextended or upgraded, and was linked to a two-stage investment program.Stage I was to cover the period up to 1976 and Stage II the period there-after. In order to initiate construction while the feasibility of the restof the program was still under study, Stage I itself was further dividedinto two phases. Phase I is being implemented between 1973 and 1974, costssome R703,000 (US$1,054,000) and is being financed by ODA. The ODA projectwill provide sewage ponds and sewers to serve the existing industrial andcommercial areas, 316 conventional housing units for medium/low-incomegroups, 100 site and services plots and 650 traditional housing plots.Phase II (1974-1976) costing some R2.91 (US$4.36) million constitutes theproject for which IDA financing is being requested.

-6-

III. THE PROJECT

A. Project Description

Project Components

3.01 The IDA project would provide:

(a) 1,800 low-income residential plots including 800 for siteand services housing built of permanent materials and1,000 plots for traditional housing of mud and thatch:

- building materials loans for 800 site and servicesplot occupants; and

- upgrading of existing low-cost housing and squatter(upgrading) areas affecting over 1,000 households.

(b) preparation and servicing of 5 ha of commercial and 11 haof industrial land, and 25 plots for high-cost housing;

(c) construction of community facilities including two wardor neighborhood offices for Town Council staff, a worksdepot, a market, two health clinics, a school, and ablock of Town Council offices;

(d) primary infrastructure:

- installation of borehole pumps, booster pumps andwater mains,

- laying of branch sewers for the new industrial andcommercial areas,

- additions to existing road network and foot bridges,

- improvement of the electricity distribution system;

(e) technical assistance including construction supervision.

(i) Low-Income Residential Development

3.02 Residential Plots: Residential plots serving two different low-income groups will be offered in five separate sites. In the area betweenthe Tati and the Ntshe Rivers, some 1,000 plots will be developed wherehouseholds earning less than R300 P.a. can build traditional houses of mud

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and thatch. About 800 site and services plots will be prepared on the eastbank of the Tati (see Map 10514, Areas L, V, S, W). Occupants of theseplots will be required to build simple houses of more permanent naterialsthan mud and tlhatch. The target income group will range from R300 to R1,000per household per annum. Tenure terms under each category are described inpara. 4.14.

3.03 Building M1aterials: The project will include R240,000 for thefinancing of building materials for self-help housing. The materials willconsist of bricks, cement, sand, metal doors, windows, glasswork, timberand roofing sheets, and paint. The materials will be purchased at intervalsand stored by the Town Council at their works depot. The Self-llelp hlousingAgency will operate the material stores. Each site and services plotoccupant will be eligible to receive loans from FTC (8% for 15 years) forabout R300 worth of building materials, adequate for a simple two-room house.Occupants will also be permitted to purchase materials for cash.

3.04 Upgrading: The project will recognize and preserve the investmentmade by residents of squatter and low-incomie areas in their own hiousing andcommunities bv upgrading Areas X and Y on the west bank (see Map 10514) toroughly the same level of services as the new site and services area.Security of tenure will be protected; water standpipes will be increased ornrovided where necessary; about 865 aqua privies will be supplied; earthroads and drainage will be constructed; and street lighting installed. Over1,000 households will benefit from the upgrading program.

(ii) Industrial and Commercial Areas and High-Cost Plots

3.05 The areas to be developed for industrial and commercial use areadjacent to the central core of the town (see Map 10514). In both areasthe land will be levelled and serviced with bitumenized roads and drainage,individual sewer and water connections, electricity distribution and streetlighting.

3.06 The development of 25 higlh-cost plots (waterborne sanitation andindividual Twater connections) in Area A (Map 10514) will help relieve thepresent slhortage of suitable residential land for high level governmentemployees and prospective staff for manufacturing enterprises thiat areexpected to locate in Francistown once serviced industrial land becomesavailable.

(iii) Community Facilities

3.07 About half of the funds provided for community facilities are fora primary schiool and a two-story block of Town Council offices. The restof the facilities include two Ward Offices for Council staff and two PublicHealth clinics, a Council works depot which is to be constructed in theindustrial area, a market, and a machine for making concrete blocks whichwill be used in constructing self-help housing.

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(iv) Primary Infrastructure

3.08 Water Supply: Boreholes with a maximum output of 500,000 gal/dsupply Francistown's water needs. Average daily water consumption is about330,000 gpd. The Francistown Master Plan studies project that the peakdemand for water would rise to over a million gallons per day by the early1980s when the town's population will be about 35,000. The Government isfinancing, outside the project, the sinking of another six boreholes includ-ing cor c; ng mains to the town's system in the area just north of Monarchwhere, according to a geophysical report by Australian Groundwater ConsultantsPty Limited, there are good prospects for pumping enough water to meetFrancistown's requirements. Borehole drilling is underway and preliminaryresults show good yields.

3.09 The IDA credit will finance a system of trunk and subsidiary waterma'- (for quantities see Annex 4) to bring water to low-income areas notcurrently served as well as to supply the new industrial, commercial andresidential areas. Individual connections will be provided for bulk usersand high-income residential areas. Standpipes will serve the site andservices and traditional housing and upgraded areas. For design standardssee Annex 3.

3.10 Sewerage: Only the commercial and high-income residential areashave good sanitation, being served in the main by septic and conservancytanks which have to be emptied regularly. The low-income squatter areas areby and large without any sanitary facilities. The IDA project will financesewer mains to serve the new industrial and commercial areas including aforce main and pumping station. :En addition, some 2,700 aqua privies willbe provided for low-income residents of site and services areas, traditionalhousing and squatter areas to be upgraded. For designi standards see Annex 3.

3.11 Roads and Bridges: Francistown has only 1,000 motor vehicles, sothe roads and bridges to be provided in this project emphasize the efficientlinking of residential areas and work places wtith facilities geared more tobicycle and pedestrian movement than to cars. The project will provide1,000 m of bitumenized and 4,900 m of gravel roads withi good drainage toaccommodate pedestrian needs. In addition, provision will be made for footbrid4es on the existing Maun Road bridge, between the traditional hwousingarea and Area S, and a bridge from Area Y to the traditional area (see Map10514 and Annex 3).

3.12 Electricity: Francistown provides its own power with five dieselgenerators. Installed capacity is 800 KW and firm capacity is about 600 KW.Consumption demand is 500 KW and is essentially limited to high-incomeresidential, commercial and industrial areas. To meet future demand thetown now plans to purchase its bulk power from the Shashe Complex (IBRD Loan776-BT) with the existing power station plant held in reserve as standby inthe event of a oewer fa4lure. Provision was made in the Shashe Project forproviding a bt-lk supply. nhe carrying out of the extension of the Shashesupplv to 7ranc'.stcuwn is underway and should be cornmeted ir Ar4.'. 1974, The

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project will provide for the laying and reconstruction of distribution linesin the high-income residential, commercial and industrial areas, and provisionof street lighting in the low-income areas.

(v) Technical Assistance

3.13 The project provides for the setting up of a Self-Help HousingAgency (SHHA) in the Francistown Town Council. The Unit will advise house-holds on self-help housing construction and run the building materials stores.The Unit will require funding in the amount of R209,000 over a three-yearperiod, including an allowance of R36,000 which would be used for topping upthe salaries of two key staff, namely the Project Coordinator and possiblythe low-cost housing expert (para. 4.03), and R30,000 for a study of watertariffs (para. 4.30).

B. Design Standards

(i) Residential Areas

3.14 The following service levels are planned for the residential comn-ponent of the project including the low-income/squatter areas to be upgraded:

Upgraded Site and Traditional High-CostSquatter Areas Services Plots Plots /1 Plots

Plot Size(m2) 375 375 1,400

(1/3 acre)

Water 1 standpipe for 1 standpipe for 1 standnipe for Individualevery 25 house- every 25 house- every 80 house- connectionholds holds holds

Sewerage Aqua privy Aqua privy Aqua privy Waterbornesanitation

Electricity Security Security Security Individuallighting lighting lighting connection

Solid Waste Periodic Periodic Periodic PeriodicDisposal Collection Collection collection collection

Circulation Gravel access Gravel access Earth access Gravel accessroads, earth- roads, earth- roads, earth- and internalformed internal formed internal formed internal roadsroads roads roads

1/ The lower standard of servicing is used in order to minimize Governmentsubsidies as these plots are intended for lowest income households includ-ing those who have no money income at all.

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The above service levels represent an attempt to match the very limitedresources of the prospective users while still providing services that meetminimal public health requirements such as clean water and some form ofsewage disposal. Aqua privies are recommended because rocky soil conditionspreclude the use of pit latrines. Aqua privies, however, are still at least,50% cheaper than waterborne sanitation based on communal toilets (see Annex12), which have proven unworkable and quite unpopular in certain otherAfrican countries. Similarlyb the use of water standpipes at the servicelevel of one standpipe for every 25 households results in water costs whichare half of those for individual connections (see Annex 12).

3.15 Land utilization parameters such as plot size, plot coverage, roadreserve and open space are also geared to minimizing the cost of servicingland while taking into account local cultural and social life styles. Thus,the plot size which appears large is in keeping with the life style of mostBotswana low-income people, a significant number of whom cook and eat out-side, and also use the space for general living purposes. However, the legaland institutional arrangements governing land use in site and servicesschemes allow more intensive land use through subdivision. A typical siteand services layout is shown in the last chart in the Annex section.

(ii) Community Facilities and Primary Infrastructure

3.16 The designs for community facilities are simple, and emphasize theuse of readily available local materials. The design criteria used forwater consumption (Annex 3) are based on consumption data in Gaberone andLobatse. The design standards for roads are shown in Annex 3.

C. Cost Estimates

3.17 Project costs, excluding land which is Government owned, areestimated at R2.91 (US$4.36) million, of which R1.66 (1'SS2.49) million or57% is foreign exchange. Estimates are at September 1973 prices based onpreliminary engineering. Physical contingencies amounting to 10% and priceescrlation contingencies amounting to 15% over the 18-month constructionperiod have been allowed for. An additional 5% has been added to theSeptember 1973 estimates to bring them to the expected bidding date ofMarch 1974. About R149,000 is included for project supervision by theengineering consultants. The cost estimates are summarized below and givenin detail in Annex 4.

Summary of Cost Estimates Li

Local Foreign Total Local Foreign Total----- (in R'000)------ ----- (in US$'000)------

A. Low-income residen-tial development 351.9 414.7 766.6 517.8 622.1 1,149.9

B. Industrial and com-mercial areas andhigh-cost plots 72.0 96.8 168.8 108.0 145.2 253.2

C. Community Facilities 247.9 185.2 433.1 371.8 277.8 649.6

D. PrimaryInfrastructure 206.9 348.6 555.5 310.4 522.9 833.3

E. Technical Assistanceand EngineeringSupervision 89.7 269.2 359.0 134.6 403.9 538.5

F. Contingencies:Physical 82.9 87.5 170.4 124.4 131.2 255.6Price 193.7 262.9 456.6 290.5 394.4 684.9

TOTAL 1,245.0 1,665.0 2,910.0 1,867.5 2,497.5 4,365.0

/1 Estimates exclude land, the imputed financial value of which is aboutR12,000.

D. Financing

3.18 The proposed IDA credit of US$3.0 million would cover about 69% of thetotal costs of the project of US$4.36 million excluding land. In addition toforeign costs IDA would finance about 27% of local expenditures. The Govern-ment would contribute US$1.36 million, and the land to be used for the project.

3.19 The costs attributable to the servicing of the 5 ha of commercialland and the 25 high-cost residential plots, while part of the project, wouldnot be financed by IDA. The two items costing some R127,400 (US$191,100)will be financed exclusively from the government's contribution because theywill be used in part to compensate the Tati Company (see para. 2.06) for landacquired by the Government from the company in 1972. Under an agreemententered into by the Company and the Government in 1972, well before the IDAproject was mooted, the Tati Company gave up virtually all the undeveloped

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land in Francismton to the Government. In return, the Government agreed togive tle company 2.8 ha of serviced commercial land and 20 plots of servicedhigh-cost residential plots under the development to be undertaken inFrancistown up to 1976 and 10% of all high-cost plots and commercial landto be developed thereafter on all land formerly held by the Company.

E. Procurement and Disbursement

Procurement

3.20 The detailed designs, specifications and bidding documents arebeing prepared by the Consulting Engineers who would also supervise tenderingand awarding of contracts, and construction. Contracts will be grouped insur' i way that a contractor can bid for each group separately or for thetoLal package. The groupings would be as follows:

(a) civil engineering work: sewerage and aqua privies, roads andbridges, water supply, and surface drainage;

(b) electrical works: electrical distribution lines, streetlighting and all other electrical wiring of facilitiesincluded in the project;

(c) buildings, i.e., community facilities; and

(d) building materials.

3.21 The value of contracts (a) through (c) is estimated at aboutR2.21 (US$3.3) million and will be awarded in accordance with IDA Guidelinesfor International Competitive Bidding (ICB).

3.22 The Government indicated that it did not wish to take advantageof local Dreference for both suppliers and contractors.

3.23 Building materials included in this project for self-help housingare valued at about R240,000 (US$360,000), of which over 50% is for bricks,ceinrTt and sand (see para. 3.03). The delivery rate of these materials mustbe closely coordinated with the rate of construction of self-help houses inorder to avoid storing materials for long periods of time with the resultantcost and problems of pilferage. It is therefore proposed to procure thesematerials from local sources after competitive bidding.

Disbursement

3.24 Disbursement of funds from the credit would be on the followingbasis: (a) 71% of total expenditures for civ-l works excluding those forcommercial and high-cost residential development and borehole waterpipe;

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(b) 71% of total expenditures for building materials; (c) 100% of foreignor 71% of local expenditures for consultant services and technical assistanceto the Borrower; and (d) 100% of foreign or 71% of local expenditures fortechnical assistance to FTC and SHHA including salaries and, in the caseof SHHA, office equipment and operating expenditures. Disbursement against(a), (b) and (c) would be fully documented; disbursement against (d) wouldbe made against certificates of expenditure endorsed by the FTC, the documenta-tion for which would not be submitted for review but is retained by theBorrower aad available for inspection by the Association during the courseof supervi3ion. The estimated schedule of disbursement is shown in Annex 11.Any funds remaining in the credit account upon completion of the projectwould be used for the preparation of additional traditional housing plotsin Francistown.

F. Project Execution and Monitoring

Construction Schedule

3.25 The civil works aspects of the project will e executed over 18months. Although all the site and services plots will be laid out andallocated by the end of 1975, the self-help housing program is expected totake up to 1978 and therefore the building materials loan scheme will extendto the end of 1977. The detailed construction schedule is shown in Chart7905 in the Annexes.

Monitoring

3.26 A simple monitoring exercise will be mounted, designed to assessprogress and identify problems during project implementation. It is proposedthat the Project Coordinator submit a quarterly review of statisticalprogress, specific problems arising, and the steps being taken to resolvethem. After the project construction period, the Self-Help lIousing Agencywill assume the responsibility for longer-term monitoring and evaluationof the self-help housing development component of the project.

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IV. ORGANIZATION AND MANAGEMEiNT

A. Central Government

4.01 The Borrower would be the Republic of Botswana which will contractfor construction of all the facilities under the project. Upon completion,the facilities will be turned over to the Francistown Town Council (FTC)to operate and to maintain.

4.02 Specifically, the Central Government would be responsible for:

- constructing primary infrastructure and community facilities;

- preparing and servicing land for industrial, commercial andresidential use including squatter upgrading; and

- procuring building materials for self-help housing.

4.03 The Government is creating a Division in the Ministry responsiblefor Urban Development which together with the town councils, will be respons-ible for planning and implementing projects in the towns. The Division willinclude an urban engineer, economist/planner, low-cost housing expert, andan urban development coordinator. The Swedish International DevelopmentAgency (SIDA) is providing the Division with an expert on low-cost/self-helphousing. Although recruitment has been difficult, the position is expectedto be filled at the end of March 1974. The Government will provide theremaining staff who are likely to be expatriates initially, but these positionswill be localized in due course by people that the Governmfnt has already intraining at Universities overseas. With the recruitment of competent staffthe proposed Division and staffing should provide adequate capability forBotswana's modest urban projects program.

4.04 The Division's Urban Development Coordinator will be stationed inFrancistown during project construction. He will oversee both the Consultantsand the Contractors. The Government has appointed the former Town Clerk ofFrancistown--a capable expatriate--to this position.

B. The Francistown Town Council (FTC)

4.05 FTC operates under tight Central Government control. Althougha majority of councillors are elected, the remainder are appointed by theMinistry of Local Government. Town Council regulations govern the dutiesof councils, the valuation and rating of property, accounts and audits, aswell as borrowing power. The Ministry of Local Government has to approve

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council annual expenditures which are always limited to available revenues.Finally, FTC's annual accounts have to be audited by a Government approvedauditor. This control by the Government over council affairs is intendedto provide safeguards against imprudent policies and practices includingfinancial mismanagement. It has been agreed that until 1980 FTC accountswill continue to be audited by an independent auditor acceptable to theAssociation and that the Council's unaudited quarterly financial statementswill be forwarded to IDA as soon as they are available, to be followed bythe audited accounts 12 months after the end of each financial year. FTCwill be asked to provide specific information on the record of collectionsfor aqua prives and building materials loans.

4.06 With respect to the implementation of the project, FTC will beresponsible for:

- allocating site and services plots;

- managing the building materials loans, altlhoughaetual procurement will be done by the Government;

- providing technical assistance to plot holders inself-help housing construction.

The passage of an FTC resolution and exchange of letters between FTC andthe Borrower accepting the above responsibilities will be made condition ofeffectiveness.

4.07 To perform the above functions, the Council is to create a specialunit called the Self-Help Housing Agency (SHHA). To be headed by a Directorfunded by SIDA, the Agency will be staffed with six building artisans headedby a construction foreman, a foreman for the block-making unit and threelaborers, eight community development workers and other administrative staff.The Government is recruiting two building trainers for the Agency from over-seas volunteer agencies such as the German Volunteers or the American PeaceCorps. The mission believes that the SHHA, with the proposed staffing shouldbe able to carry out its intended functions. However, in case recruitmentof German or American volunteers proves difficult, R40,000 is included inthe project to enable SHHA to recruit such personnel from elsewhere.

4.08 In addition, the Council will create a Site and Services Manas,ementBoard consisting of Central Government representatives including the UrbanDevelopment Coordinator and FTC Councillors and staff including the Directorof the SHITA. The Board will approve plot allocations and transfers. It willalso propose policy guidelines for SHHA operations, which like other TownCouncil policy decisions will be subject to approval by the Ministry of LocalGovernment.

Plot Allocation and Collection of Monthly Payments

4.09 The key features of the proposed allocation system for bothtraditional and site and services plots are: the plots will be advertisedin the Town Council and Ward Offices; the SHHA will screen the applicants

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through interviews to ascertain that they meet eligibility and prioritycriteria (Annex 5). The SHHA list of candidates for plot occupation willthen be forwarded to the Management Board for approval. The Board will meetat least once a month during the height of project activity.

4.10 The collection of monthly payments (for amounts, etc., see para.4.22) will be done in two ways. For those heads of households in wageemployment deductions will be made at the source. For those households whoare self-employed, the Council will set up Ward Offices in each site andservices and traditional housing area to which will be attached a revenuecollector. Each Ward Office will register persons liable for local Governmenttax payments at their residential site, cross-referencing such persons withPay-As-You-Earn records in the Council headquarters, and thus separating theself-employed who will be visited monthly by the revenue collector. Thecollection system will thus be personalized to an extent which should improvecollection rates. The costs of collection will remain reasonable as thepersonnel required for this can be recruited from among school leavers.

The_Key Council Officers and the Project

4.11 Four Town Council Officers will play a key role with respect tothe Council's responsiblities under this project. They are the Town Clerk,the Engineer, the Treasurer and the Director of the SHHA. The formerDistrict Commissioner for Northeast District has been recently appointedTown Clerk. The Engineer has worked for the Council for many years. TheBorrower has just appointed an expatriate with considerable experience inother African cities as FTC Treasurer, a position involving the supervisionof revenue collection and maintenance of records as well as advising onfinancial planning. It has been agreed that until December 1978, theBorrower shall consult the Association prior to the appointments or changesin the appointments of the SEHA Director, the Engineer, and Treasurer.

C. Land Tenure

4.12 Two types of land tenure are proposed for the project: the onewill apply to high-cost housing plots, industrial and commercial land andthe other to site and services, upgraded souatter areas and traditionallioubing (mud hut) areas. Within the first group, it is proposed that high-cost plot leases of 99 years be given and that industrial and commercialland be let for a fixed term period of 50 years.

4.13 In the site and services, upgraded squatter and traditionalhousing areas each occupant will be given a Certificate of Rights entitlinghim to use the land for residential purposes for an indefinite period butnot to ownership (Annex 7). The Certificate concept has been evolved inorder to avoid the expensive and time-consuming survey and registration

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required in higher income housing, and moreover, the concept resembles thetraditional land tenure familiar to most of the new townspeople. Buildingstandards in these areas will be governed by simple by-laws. The Certificateof Rights and the building by-laws to be used are being finalized (preliminary

drafts are given in Annex 7). It was agreed that FTC would use a certificateacceptable to the Association and issue building by-laws acceptable to IDA

no later than September 30, 1974.

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D. Cost Recovery and Pricing

4.14 It is envisaged that the recovery of project costs will be fromthe sources indicated below:

CapitalFacility Cost 1/ Z Recovery Source

A. Low-Income ResidentialDevelopment 976,580 34

800 sites and services olots:

Aqua privies 124,800 5 Individual BeneficiariesOn-site development 117,780 4 Central GovernmentBuilding materials 240,000 8 Individual Beneficiaries

1,000 traditional housing plots:

Aqua privies 156,000 5 Central Governmenton-site development 90,870 3 Central Government

Upgrading existing squatterareas affecting 1,000households:

Aqua privies 134,940 5 Individual BeneficiariesOn-site development 112,190 4 Town Council 21

B. Industrial, Commercial andHligh-Cost Housing Plots 219,440 7-

16 ha commercial andindustrial land 176,540 6 Individual Beneficiaries25 high-cost plots 42,900 1 Individual Beneficiaries

C. Comaunity Facilities 5I030 20

School and clinics 175,240 6 Central GovernmentCouncil and Ward Offices 236,210 8 Town CouncilCour'ciI Works Depot and'-farket 125,580 5 Town Council

Block-making Machine 2A,C00 Individual Beneficiaries

D. Trimarv Tnfrastructure 72, 0 25

'ater 24 ,L,0 9 Individual Beneficiaries 3'Electricity 44,200 1 Individual BeneficiariesSewerage 73,840 3 Individual BeneficiariesRoaC s 339,30( 12 Town Council

E. Technical Assistance andEngineerinfr 426,800 14 Central Goverment

1/ Includ4ng 307 contingencies excent for ,tems covered in para. 3.23.2/ Ce_r. _ vrn?e?t fmancing is generally ' .Imlted to new development areas,

lea.- r. ~~er - Tfnct n' ex 'c s ~ ½settlenenrs +o locat a 'thoriries3/ Reccv-?-,:, -/v!wt ,°.(' tSeaJ.'v ~2-''

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Primary Infrastructure, Community Facilities and Technical Assistance

4.15 For purposes of analyzing cost recovery, the Francistown projectcan be divided into three categories. First, about 59% of the cost isaccounted for by community facilities, primary infrastructure and technicalassistance. The apportionment of the recovery of these costs is straight-forward and follows the usual practice in town development projects inBotswana (Gaberone, Selebe-Pikwe). Schools, health clinics and technicalassistance are considered to benefit the nation as a whole and are charge-able to Central Government. Local authorities assume the costs of the com-munity facilities with more localized impact (i.e., markets, Council andWard Offices) and those aspects of primary infrastructure (i.e., main roadsand trunk sewers) which benefit the community as a whole and pay for themthrough general revenues, especially property taxes. Water and electricitycosts are recovered from beneficiaries through utility operations which, inthe case of Francistown, are run by the Town Council.

Commercial Industrial, and HIigh-Cost Housing Plots

4.16 The second category comprises serviced land for commerce, industryand high-cost housing. The Central Government will lease these plots atcurrent market prices. Development costs are estimated at about R6,500 perha in the industrial area. R14,500 per ha in the commercial area, and R1,320per plot for high-cost housing. It is planned to charge R12,000 per ha forindustrial land, R20,000 per ha for commercial land and R2,000 per plot forhigh-cost housing plots. These prices are based on experience in Selebi-Pikwe, Gaberone and Francistown. The surplus generated on the leasing ofindustrial and commercial land of R90,500 more than covers the R71,000 costsfor the off-site sewerage main included in the project primarily for theuse of these areas and the R960 for land.

Low-Income Residential Development

4.17 The third category of costs relates to the development of low-incomeresidential areas, namely site and services plus traditional housing lots,and squatter improvement. The monthly costs, monthly household payments andtarget income groups for each of the areas are given in the table on thenext Dage.

4.18 Government considers it essential to provide the largely Africanpopulation now squatting under conditions of extreme squalor with minimallyserviced residential areas consistent with public health standards. Thealternative is continued extension of squatter areas and deterioration ofthe Public health environment in the town. The very low per plot costs shownin the following table illustrate the Government's attempt to keep servicesto those wqhich are essential.

lou s e1ioi-d Monthly Repayments

(in Rand)Tota'l Cost and PaMent Monthly Payrment as a Percentage of Income

Target Income % of TargetPayment per Target Group broken Group in Total Monthly

Cost/Plot/ iiousehiold/ Income into each Payment/%Monith /1 Monlth Group two categories Category of Cash Income

(R) (R) R/Month R per month

00 Sites and Services

On-Site Development 0.99 - 25 - 54 82 14B-3ildirig iaterials 2.92 2.92 25 - 83P.r.i.vy 1.52 1.40 /2 55 - 83 18 8Recurrent Services 1.40 /3 1.40

TOTAL 6.83 5.72 100

1)000 Traditional Plots

Orn-Si Le Development .61 -Buildiing 14aterials - - 1 - 12 44 22Privy 1.52 - Under 25Recurrent Services 1.40 1 .40 13 - 25 56 8

TOTAL 3.53 1.40 100

1_000 pgraded Households

On-Site Development .75 -Building Laterials - - 1 - 55 .1 - 25 45 23 /4Privy 1.52 1.40 /2 and over 25 - 55Rec-urrent Services 1.40 1.40 and over 40 7

TOTAL 3.67 2.80 85

/1 Termas assumed are as follows: On-Site Development (water, roads, drainage, street lighting) - 7> and 30 yearsBuilding materials - 8% and 15 yearsPrivy - 8% and 15 years

2? After a downpayment of Rt2. /14 Only those $th iccons8 of lU2 oa afford the pVemnts.

hrccrrrct co.LS incl'de *.-'ter, garbage coliction, public conveniences, road maintenance, street lights and adirinistration.'t ap orment of rec, nret coo:- for l er oporaticr,s -cng inco-ie groups contain-i a cross-siibsid7 from the upper to

lc lower incorlic groups (k co ALU 0 T'ie ciarge for recurru,Lt co os 1 xl low-in`or f re odent .I reas is in lieu of rotes.

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4.19 The monthly charges under each of the three categories of develop-ment are indended to make all beneficiaries, including the poorest of them,pay at least the recurrent costs of Town Council services and to contributeto the capital costs of development in accordance with their ability to pay.The practical determination of "ability to pay" in the context of a mobile andcasually employed low-income population such as that in Francistown is neces-sarily rough; in this case Government would like to keep monthly payments ofthe majority of project beneficiareis at around 20% income. No differentialpricing within each category site and services, traditional plots, etc., iscontemplated because of the difficulties of administering such an approach.

4.20 Residents of squatter areas to be upgraded will spend up to 23% oftheir incomes on monthly payments; those of traditional housing areas up to22%, and those of sites and services schemes up to 14%.

4.21 The charges for site and services are meant to ensure not only ameaningful contribution to development costs by residents, but also to encourageas many households as possible to move into residential areas built of perman-ent materials. The Government is anxious to provide opportunities for theaverage Batswana, through self-help, to build neighborhoods which further non-racial development in Francistown. The essential services of water and aquaprivies being provided in the traditional housing areas on a grant basis forhealth reasons will make these areas attractive to many in the R300-500 p.a.income bracket now designated for site and services plots. Enforcement ofthe R300 household income ceilings in a context where many applicants areself-employed is difficult, if not impossible. It is therefore hoped that bymaking site and services payments a lower proportion (though higher inabsolute terms) of target monthly income than in the other developments, thosefamilies able to live in site and services will be attracted there. Thelower proportion of monthly income spent on payments should also encouragemore rapid consolidation.

Francistown Town Council Finances

4.22 As indicated in para. 4.14 Francistown will pay for R911,000 ofproject costs through general revenues. Another R309,000 will be recoveredthrough the town's water and electricity operations, and R500,000 from individ-ual payments for aqua privies and building materials to be collected by FTC.The Government will treat these costs as a loan to FTC. It'was agreed thatIthe costs for utilities will be recovered over 25 years at 8%, those for aquaprivies and building materials will be recovered over 15 years at 7%, and thefunds for community facilities and roads will be passed on to Francistown at1% and 25 years.

4.23 Although the Francistown project, as a regional project, will bene-fit a much wider area than Francistown itself, Government plans to make thetown and its habitants bear about 70% of the costs of the project. The exam-ination of FTC finances in the following sections shows that the town and itspeople can indeed meet the debt service and running costs resulting from theproject comfortably.

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The risk of default in the collection for aqua privies and building materialsloans from the residents of the low-income residential development componentof the project is, however, high and FTC is taking steps (para. 4.10) toensure successful collection of payments. A very simple risk analysis tablein Annex 8, page 4 shows that even if those defaults are 40% and other majorsources of FTC revenues yield 20% less than projected, the Council shouldstill be able to meet its financial obligations.

Francistown's Financial Position and Past Operations

4.24 FTC's financial statements for 1972 consisting of revenue and ex-penditure statements and balance sheets, together with notes which includeexplanations of some of the special features of municipal accounts, are showtin summary form in Annex 10. Revenues for the year amounted to R218,000 andexpenditures R192,000, giving a surplus of R32,000, after taking into accounta small grant of R6,000. In addition to recurrent expenditures, the expendi-ture of R192,000 includes debt service payments (principal and interest),capital expenditures and transfers to renewal funds for various capitalexpenditures. In FY72, FTC's principal sources of revenue were local govern-ment income tax (42%) and surplus on utility operations (19%), while the mainexpenditures were on education (49%) and sanitation, roads and other services(30%). At the end of 1972, FTC had adequate cash to meet its obligations.

Collections for Aqua Privies and Building Materials

4.25 Separate accounts fill be extablished into which collections fromindividuals and debt service payments to Government relating to the aquaprivies and buildings materials aspects of the project will flow. The smalloperating expenses relating to these activities will be met from FTC's generalrevenues. The charges for aqua privies and building materials (see page 20)are set at a level which enables FTC to meet its related debt service obliga-tions to Government after allowing for a 10% default in collection. About10% default is understood to be close to the experience of Botswana HousingCorporation in its low-cost housing and might be achieved if the Council, asindended, emphasizes personal contact between revenue collectors and the peopleat the ward or neighborhood level. Nevertheless, it should be recognizedthat the risk of default involved in collecting small monthly charges from alargely poor population is high the world over.

Water and Electricity

4.26 Taken together, water and electricity operations in Francistownhave produced a cash surplus in the past despite cash deficiencies in wateroperations. The Council's annual debt service obligation to Government forthe water and electricity components of the project beginning in FY77 isestimated to be small (about R29,000 per annum) and should not add signifi-cantly to utility cash outlays at that time.

- 23 -

4.27 Changes have been made in the water tariffs to increase revenues toa level which will cover operating and capital charges and also contributetowards future capital expenditures. The new tariff (Annex 9) now in effectchanged the past flat rate of RO.40 (US$0.57) per thousand gallons to anincreasing block tariff. These charges are supposed to discourage excessivewater consumption especially in the higher income areas, although they probablywill not do so to the same extent that charges based on the Gaberone structure(Annex 9) would.

4.28 Although the new water charges represent a great improvement overthe past, their long-run impact has not been adequately analyzed. Furthermore,a significant proportion of new consumers who will be connected to the town'swater system as a result of this project will be served by standpipes. Themonthly charge of RO.55 per household that will be levied from these stand-pipe consumers is reportedly subsidized (Annex 6). The extent of this sub-sidy is not accurately known. To provide information on all these pointsit has been agreed that FTC will carry out a water tariff study in accordancewith terms of reference and by personnel acceptable to the Association and thatthe study should be completed no later than June 30, 1975. Funds amounting.to R20,000 have been included in the project for this purpose.

4.29 Surpluses on electricity operations averaging about R55,000 perannum have contributed significantly to FTC's revenues in recent years.Present electricity charges are much higher than those in Gaberone (Annex 9).A study leading to a new tariff is planned. However since the electricityaccount has been an important part of FTC revenues, changes should be madeonly after careful consideration of their effect on Council finances. It hasbeen agreed that (a) changes in water and electricity tariffs will be madeonly after such consideration and also after taking into account IDA commentson the proposed changes; and (b) FTC will operate its power and water opera-tions in accordance with sound utility practice including metering of consump-tion wherever feasible.

4.30 Apart from the project, no major capital additions are planned forwater and electricity during the next few years.

FTC's General Revenues and Expenses

4.31 This seccion of the report discusses FTC's revenues and expensesduring the coming years and excludes utility operations and collections foraqua privies and building materials loans which are discussed separately inpara 4.25 to 4.30. FTC's actual and projected revenue statements from FY70to FY80, together with notes and assumptions are given in Annex 8. A largeincrease in revenue if projected during this period as indicated in the fol-lowing table:

- 24 -

FTC Revenue Projections

Actual Projected1972 1974 1977 1980

--- (in R'0nO) ----------

Property rates 19 80 173 262

Local Government itcome tax 91 103 138 184

Standing charges in site and servicesand -aditional housing areas - 21 35 45

Other 7n 98 118 166

TOTAL 180 302 469 657

Of the expected increase in revenues of R289,000 between 1972 and 1977, itestimated that by FY77, when fTC's debt service to Government first becomeseffective, about 13% would be required to meet that portion of the projectdebt service chargeable to general revenue. Even if collections from individ-uals for aqua privies and building materials experience higher defaults thanexpected FTC would have adequate revenue to service part of the debt arisingfrom that source. This possibility is explored in some detail in Annex 8.

4.32 The nearly 1,000 relatively better off families in Francistown andthe small industrial and commercial sectors form the base from which propertvrates are drawn. The Town Council itself has exnloited this source well,revaluing properties every five years, the last of which was done in 1Q72 andis to become effective by the beginning of 1974. The new valuation worthR6.6 million will include both land and improvements; previous to this onlyland was rated. It is intended to raise rates on both land and improvementsand Government will introduce legislation in the National Assembly no largerthan March 31, 1975 to remove the limitations of rates to 3% on land and 1.5%on improvements currently in force in Botasana.

V. JUSTIFICATION

5.01 The Francistown project comprises a package of inter-related com-ponents with a variety of benefits difficult to measure. Nevertheless, thenroject's justification rests essentially on the following grounds:

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- it will provide a focal center for regional development inNorthern Botswana through minimum investment essential forcommercial and industrial development to take place inFrancistown (resulting in jobs);

- it will bring about immediate improvement in the living andpublic health conditions of the town's large squatter population;

- it will restore planning control ver the future pattern oftown growth through the implementation of the Master Plan.

The above objectives will be achieved at costs consistent with availableresources.

5.02 With only 4,000 jobs in the town, employment creation is Francistown'sfirst priority. Fortunately, with the start of mining developments in NorthernBotswana in the past three years, a number of enquiries are being received bythe Botswana Development Corporation from industrial and commercial enter-prises interested in establishing in Francistown provided well-located ser-viced land is available. Already four enterprises which would employ about300 people have firm proposals to establish in the town and would use theland to be serviced under the project (see Annex 3). In addition, if regionalmining development continues on a sizeable scale, the Francistown M4aster PlanStudies project that there will be as many as 10,000 jobs in Francistown by1980 (see Annex 1). In other words, there would be a growing demand for indus-trial and commercial space in the town. In this context, the Governmentbelieves that a predominantly "site and services" approach to industrial andcommercial development rather than direct Government investment in enterpriseswould be the most effective way of using limited public funds for job creationin Francistown.

5.03 The project will bring substantial improvement to public health con-ditions in Francistown. At present nearly 80% of the population is dependenton polluted water from the river and, during the dry season, shallow wellsdug in the riverbed. There is at present virtually no sewerage in the areaswhere people are squatting. Continuing extension of squatter areas, risingdensities, and greater distances to open land will seriously increase healthhazards. The project will provide clean water by standpipe and aqua pliviesfor sewerage disposal.

5.04 Other social benefits of the project to the Francistown inhabitantsdeserve emphasis as part of the development of a viable long-term urban struc-ture. At present some 6% of the population, mainly white, enjoy 64% of theincome. The project, through effective cross-subsidization and taxing of therich (property tax) to pay for infrastructure Primarily benefiting the poorwill contribute towards income redistribution. The project will also promotenon-racial development in the town.

- 26 -

5.05 Consideration of separate components or aspects of the project,however, risks missing a major contribution of the project as a whole. Byenabling the implementation of the Master Plan, the project will restoreplanning control over the town's expansion pattern through the regulation ofsquatting. Without the project, Francistown could be expected to continueto develop as an unstructured group of settlements scarcely justifying theterm "township" or "city" with the unity that these terms suggest. The pro-ject, including the associated ODA project, will transform the present frag-mented urban structure into a consolidated township while providing a rationalbasis for future orderly and non-racial expansion.

5.06 The above objectives are being achieved at costs consistent withavailable resources. The original investment proposals prepared by consul-tants for the Government called for a scheme costing nearly US$6.5 million(primary infrastructure only) and an expensive conventional housing program.By concentrating on a simplified and phased approach the IDA project, togetherwith that of ODA, will cost about US$5.0 million for both primary infrastruc-ture and considerable secondary development. In otherwords, the projectrepresents the first serious attempt by Government to implement the cheapersite and services and squatter upgrading approach to urban shelter as comparedto conventional housing. As shown in Annex 12, a conventional low-cost corehouse costs about US$2,700 compared to the US$460 maximum for a servicedlot in site and services. Even including the US$450 for building materials,the site and services/self-help approach totaling US$910 is still only one-third the cost of a conventional house. The successful application of theselower cost self-help principles in Francistown will have considerable impacton the development of other towns in Botswana.

VI. RECO!-IENDATIONS

6.01 During negotiations agreement was reached on the following principalpoints:

(a) the Government of Botswana will:

(i) assume responsibility for drilling boreholes andconnecting them to FTC's water system (para 3.08);

(ii) not use any IDA funds to finance the preparing andservicing of commercial land and high-cost residen-tial plots (para. 3.18);

(iii) always maintain and staff a Division in the Ministryresponsible for urban development which shall beresponsible for carrying out the project (parae. 4.03);

(iv) not approve the appointment of the Director of theSHHA or changes in the appointment of Town Treasureror Engineer -ifthout prior consutintat-ons wlth -DA

Do^eS +D,8 'ara. 4 <8-

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(v) use for land tenure purposes a Certificate of Rightsacceptable to IDA and issue building by-laws accept-able to IDA no later than September 30, 1974 (para. 4.13);

(vi) recover the project costs being treated as loans to FTCfrom FTC and individual project beneficiaries in amanner acceptable to IDA (paras. 4.14, 4.18 and 4.22);

(vii) introduce legislation before the National Assemblyenabling FTC to raise property rates above 1.5% onimproved land and improvements and above 3% on unim-proved land in 1975 (para. 4.32).

(b) the Francistown Town Council will:

(i) create a Self-Help Housing Agency and a Site and ServiceManagement Board to carry out the allocation of plotsunder the project and to assist with self-help housingconstruction (paras. 4.07 and 4.08);

(ii) allocate site and service and traditional housing plotswith the help of the SHHA and Management Board and inaccordance with procedures acceptable to the Association(para. 4.09);

(iii) recover from individual beneficiaries the costs ofbuilding materials loans, aqua privies and other pro-ject facilities in a manner acceptable to theAssociation (Table, para. 4.18);

(iv) undertake a water tariff study based on terms ofreference and by personnel acceptable to theAssociation (para. 4.28);

(v) not implement any changes in electricity and watercharges without consulting IDA (para. 4.29).

6.02 As a condition of credit effectiveness, the Francistown Town Councilshall have passed a resolution accepting responsibility for carrying outcertain aspects of the project and a letter exchanged between FTC and Govern-ment affirming the same (para 4.06).

6.03 Subject to para 6.02, the project is suitable for an IDA Creditof US$3.0 million.

ANNEX IPage 1

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

Regional Development Potential in Northern Botswana

Regional Development Potential

1. The region around Francistown is rich in natural resources includingsubstantial mineral deposits and unrealised tourism potential especially inthe Chobe National Park and the Okovango Delta. The exploitation of theseresources is now getting underway and can be expected to have beneficial im-pact on Francistown.

2. Minerals have been discovered at a number of places aroundFrancistown:

Place Minerals Stage of Developm nt

Orapa Diamonds Mine in operation

Selebi/Pikwe Copper/Nickel Mine which went intocommercial operationmid-November 1973.

Matsima Copper Originally firm proposalfor development, now un-der reconsideration.

Sua Pan Soda Firm development proposalfor 1974.

Selkirk, Phoenix Copper/Nickel Proposals for developmentbeing considered.

Morupule Coal Commercial production tocommence this year.

3. Despite the lack of accommodations and good roads, tourism trafficto Moremi, Chobe and places north has grown steadily since the mid-1960'swhen the first concerted efforts were made to develop tourism. Tourismthrough-put in the Chobe had increased from about 3,000 in 1965 to 4,000 in1970 when game park entrance fees amounted to some R6,000 (US$9,000). 1/ TheUSAID financed road linking Francistown and Kazangula at the Zambian borderis now under construction and is expected to increase access for tourist traf-fic from Francistown to the parks in the north.

1/ FAO and UNDP, Development of the Wildlife Industry in Botswana (Rome 1972).

ANNEX 1Page 2

Francistown--the Existing Situation

4. While impending regional economic activity is expected to transformFrancistown into a dynamic regional center, the town is today a collection ofdisparate settlements with a population of about 22,000 inhabitants. Accord-ing to the 1971 census the town is growing by about 10% per annum.

5. The Francistown Planning Proposals (master plan studies) estimated

the 1970 wage and self-employment in Francistown to be 4,168 jobs, of which2,993 -- r- in the private sector including 618 in self-employment, and 1,175in the government sector. The overall activity rate (proportion of populationin paid or self-employment) was 26%. In fact, the rate varied greatly from22-26% in low-cost and traditional housing areas to 41% in the high and mediumcost-areas which are primarily European or white areas. This variation inactivity rates is also reflected in the income distribution data.

6. The total household income in Francistown in 1970 amounted to nearlyR2.5 million or an average per capital income of R153. However, income distri-bution was very skewed as can be seen in the table below:

Distribution of Household Income, 1970

Annual Income Number of % of % of Total Income(Rands) Households Households Accruing to Each Category

0 708 20.3 01 - 200 1,074 31.0 ) 3

201 - 300 380 11.0 ) 64.8 ) 22301 - 660 789 22.8) )661 - 1,600 296 8.5 14Over 1,601 224 6.4 64

Source: Francistown Planning Proposals.

7. Accompanying these very low income levels of the great malority ofFrancistown population, housing conditions are extreme'y poor w? th few or nourban services available. Although Francistown Was fe^rd in -he vcTh exr-tury, its Batswana residents remained squatters unti '53, iving i n trntiJ.tional housing on Tat! land between the railway and The Tati River. In 1958,the Tati Company laid out two small areas of land on the west bank of theriver and relocated the squatters from the east bank. Today however, thelarge majority of low income residents remain squatters, living in dismal anddeteriorating conditions west of the Tati where over 17,000 Africans reside.

ANNEX 1Page 3

Population by Race, Income and Type of Housingin Francistown in 1970

Average /1Population Racial Group Housing Type Annual Household Income

(Rand) (US$)

940 Mostly white High cost 7,000 9,800

900 Colored andsome Africans Medium cost 1,125 1,575

14,000 Mostly Africans Low Cost andtraditional housing 240 /2 336

/1 Household size is estimated to be 4.6 persons.

/2 Only 80% of the 14,000 have an average annual household income of R240; theother 20% were reported to be without any paid employment or any visiblesource of income, though food and subsistence items may be forthcomingfrom relatives.

Source: Francistown Planning Proposals.

8. This general information on social conditions in Francistown issupplemented by mDre detailed information on the Bluetown area which resultedfrom a recent survey. 1/ As Bluetown is by far the best of these low-incomeareas, the data no doubt reflect conditions of the relatively better-off. Anestimated 86% of Bluetown households have at least one member in wage or self-employment; the majority of the people in wage-employment work in laboring ormenial jobs while the self-employed engage primarily in commercial activities,e.g., producing and selling such items as beer, vegetables, furniture, tin-ware, baskets and mats.

1/ Four surveys have been carried out in the so-called low-income are. s since1970. In February 1970 the Tati Settlement Project conducted a survey ofSomerset West -- a traditional housing area on the outskirts of the town.In May 1970, Wilson and Somersley, Chartered Architects and Town Planners,undertook a 10% survey of Bluetown, Beerhall, Riverside and Monarch. InJune and July 1970 a 100% survey of Bluetown, Riverside and Monarch wascarried out by the Tati Settlement Project. In May 1972 a final surveywas carried out by Richard and Mitchell as part of the study for the"Bluetown Proposals".

ANNEX 1Page 4

9. According to the Bluetown (1972) and the Wilson and Womersley (1970)studies, annual household income distribution in Bluetown was as follows: 1/

Income Distribution in Bluetown

Income Category % of Households--- (Rand)----- 1970 1972

0 17 151 - 200 30 30

201 - 300 19 15301 - 660 30 27Over 660 4 13

10. Even in Bluetown, about 2/3 of the residents earn under R25 permonth. Most of those earning less than R25 are unskilled laborers, and forthese workers there are few prospects for improved job construction andhigher incomes.

Francistown Proiections

11. Population and employment projections in the context of a small townlike Francistown are necessarily crude. Nevertheless, the Francistown Plan-ning Proposals estimate that the town's population will be about 35,000 inthe early 1980's and that employment is likely to rise from the current levelof 4,000 jobs to about 10,000. These projections take into account the im-pact of raining developments and expansion of regional services on Francistown.

1/ Bluetown Planning Proposals (May 1972) prepared for the Town Council bythe Botswana Christian Council.

ANNEX 2Page 1

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

The Selection of an Urban Form

1. In their planning report Messrs. Hugh Wilson and Lewis Womeraley,Chartered Architects and Town Planners, presented two possible strategies forfuture development to accommodate Francistown's projected growth. The planswere designed for expected populations of 35,000 in 1980 and 76,000 in 1995.

2. Physical restraints of topography and soil conditions limit majorcontinuous expansion of Francistown to the east, north, and west of the pre-sent town center, expansion to the east and west also being inhibited by thelack of roads and the airport's location respectively. However, a considera-ble land area still remains undeveloped immediately around the town center,and there is much land suitable for development across the Tati River to thesouth.

3. The two strategies proposed by the consultants differed significantlyin their use of the present town center and the land to the south. The first-Strategy A--called for all development to occur on the land to the south andfor a complete ban on new investment activity in the existing town center. Anew town in a linear or directional grid pattern would be built between therailroad line and the parallel primary road to Gaberone. It would have a newcommercial district and industrial sites as well as residential areas withservices to accommodate all future growth. Strategy A also called for therelocation of most squatter (traditional) areas now to the west of the town.The old town would become a service area for its local population.

4. The second proposal--Strategy B--called for continued developmenton the present town site up to the limits of its potential, with subsequentexpansion to the south. It was calculated that the present site could accommo-date a population of 35,000. Later extension to the south would follow thegeneral grid pattern and infrastructure plans of Strategy A.

5. There are several points on which the two plans can be compared.A primary goal of the Government in the development of Francistown is to breakdown the prevailing pattern of racial separation. The more affluent whitesare concentrated near the commercial and Government center of the town whilethe Batswana live in squatter areas across the river near the airport. Bothproposals recommend a greater mix of housing types and densities within largeresidential "environmental areas" to promote every day contacts. However,moving all new development to the south, as recommended in Strategy A, wouldreinforce the insulation of the white enclave. Developing low-income and siteand services areas in accordance with Plan B, on the other hand, offers greaterhope for a more compact and less racially splintered community.

ANNEX 2Page 2

6. Both A and B included fully serviced sites for industry in additionto the existing Dumela industrial site to the north. Comparing the co mercialaspects of the schemes, it appears that the success of a new shopping centerin the south as proposed in Strategy A would depend to a great deal on a shift-ing of shopping habits and a total control of development in the old area--both difficult changes to induce and enforce.

7. Generally, in regard to local transportation, Strategy A in itsfinal o-r ffered a more efficient network than Strategy B for pedestrian andmotorized traffic which minimized the need for river crossings. Except foremployment in the Dumela site and schooling in town, average trip lengthswould be short, provided the shopping center survived. Until the mid 1980s,however, more advantages appeared to lie in Strategy B.

8. Estimated costs of supplying necessary infrastructure for the twoschemes showed that Strategy B would be less expensive in the short run. Fora population of 35,000 the cost of Strategy A was R2.8 milllon and B, R2.4million--a difference of about US$0.68 million. For the components of water,sewerage, power and roads, costs for A were slightly higher than for B. Costsfor bridges were slightly higher for B than for A. It was thought, neverthe-less, that long-term costs would be the same since the costly river crossingswould have to be made in either case in the longer term. What was not men-tioned was that the southern-most development of Plan A, scheduled for after1980, would lie outside the watershed of the Tati basin and would requirepumping or an independent sewerage treatment system, either of which wouldadd to costs.

9. At the time the plans were proposed, Strategy A offered certain ad-vantages for detailed planning and implementation because of Government owner-ship of the site land in contrast to private control of land for Strategy B.These advantages have since been nullified by Government acquisition of un-developed land in the Plan B area. Otherwise, there were no overwhelming incK-catcrs of the superiority of Plan A. The apparent short-range benefits appearedto favor Plan B, arising from the compactness of the area.

10. Under either growth plan, the costs of relocating present householdsfrom traditional housing areas would be substantial. Strategy A provided forclearing all settlements west of the Tati River by 1995 and relocati.ng Rcuat-ters into new conventional housing areas. Even Strategy B, tVough n'e:

betuer on this point called for substantial resettlement follcvee 1y bkco--dation in high-cost housing. Needless to say, the costs of rehoa sing elthese people in conventional housing would have been staggering.

11. The Government has chosen to proceed under a modified version ofPlan B. The modification lies primarily in the decision not to relocate allthe temporary housing sites now west of the river but to upgrade them instend.

ANNEX 2Page 3

As proposed in Plan B, a traditional housing area will be located at the con-fluence of the rivers Tati and Ntshe and connected to the main town by a ped-estrian bridge. In town, new low-income and site and services housing willbe developed near high-income areas, and services for existing and new urbanfacilities will be installed. Accordingly, earlier investments, both publicand private, in housing, education, industry, business, and urban infrastruc-ture will not be wasted and will provide a stable base for future investment.If population, employment and wealth grow as anticipated, the consolidation ofthe present town site will offer a sound nucleus from which further expansioncan be undertaken.

ANNEY 3Page 1

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

Design Standards and Project Quantities

1. The additions to primary infrastructure, serviced land for commerce,industry and high-cost housing, and low-cost residential development in theIDA project result from the Francistown Master Plan studies carried out byHugh Wilson and Lewis Womersley (Chartered Architects and Town Planners) inassociation with Scott Wilson, Kirkpatrick and Partners, Consulting Engineers(UK). The subsequent engineering and design work has been carried out byBrian Colquhoun, Hugh O'Donnell and Partners (UK) working in close cooperationwith the Government Town Planner and Francistown Town Engineer.

Primary Infrastructure

Mi) Water Supply

2. Francistown gets its water from six boreholes along the Tati Riverwith a maximum yield of 500,000 gpd. Present consumption is about 330,000gpd. Most of the water is consumled by industry (6%), government institutions(22%) and commercial and high-income residential areas (38%). Only 25% ofthe water is consumed by people who draw water from the standpipes on thewest bank of the Tati. Roughly 80% of Prancistown's Population live on thewest bank and because of the very skeletal distribution system it is esti-mated that only about 20% of these are within reasonable distance of waterstandpipes.

3. Based on a 3.5% annual natural increase and 1,000 annual immigrar.s, 1ithe projected populations for 1977 and 1980 would be 29,000 and 35,000 re-spectively. Assuming that 15% of this would be high and middle income groups(earning above R600 p.a.) and the rest low-income groups (earning below R6COp.a.) the following breakdown is obtained:

1977 1980

High and riddle inceom 4,350 5,250Low income 24,650 29,750

29,000 35,000

1/ Francistown Planning Proposals, p. 114, This represents the "high"projection. We believe the population of the town will grow at aslightly s-ower rate resulting in a opulation of 35,000 sometimein the first hail of the next decace,

ANNEX 3Page 2

Based on 1970 figures the following rough estimates are taken for calculationof total demand:

High and middle income consumers 80 gpd/personLow income consumers 20 gpd/personIndustrial and Storage 1,000 gpd/acre

Commercial consumers are taken to be included in the first two categories.Industr- l. a1nd Storage land is estimated to total approximately 86 acres (29acres existing, 27 proposed, and 30 at Dumela). From the above, water con-sumption rates for 1977 and 1980 are calculated as follows:

1977 gpd 1980 gpd

High and medium income 348,000 420,000Low income 493,000 595,000Industrial and Storage 86,000 86,000

927,000 1,101,000

4. Additional boreholes will be drilled in areas north of Monarch andsome of the existing boreholes improved to supply additional water up to 500,000gpd. A system of ring and subsidiary mains will also be constructed to pro-vide a better distribution of water, especially to those who, up to now, havebeen unserved. The supply network is being designed to serve projected de-velopment up to a population of 35,000. However, the mains will be installed instages and sized for periods not exceeding ten years. The existing mains willbe used wherever possible.

5. In addition to the boreholes, pumps, connecting pipework and repairsto existing water works, the project will cover the following works:

MainsDiameterA/C Pipes Length

(xmm) (in)

450 330375 600300 1,280225 1,400150 2,570

(ii) Sewerage

6. Sewerage treatment works consisting of stabilization ponds, trunksewers and pumping station, are to be built under Phase I of the Francistowndevelopment financed by ODA. Contracts have already been awarded. Work onthe ODA financed project commences in September/Octobjr 1973. The sewagetreatment works have a capacity of 150,000 gpd (680 m /d).

ANNEX 3Page 3

7. The IDA project will extend the ODA funded sewerage system byconstructing branch sewers to serve the industrial and commercial areas.The work quantities will involve:

Sewers Diameter Length

150 mm 800 m300 mm 1,100 m

Force main 225 mm 800 mPumping station. 1 No.

8. All the residential areas under the project, i.e., site and services,traditional housing, and upgraded squatter areas, will be provided with aquaprivies. The aqua privy is similar to a septic tank employing the same septicprocess. The septic action is a natural biological process in which bacteriaand the microscopic and sub-microsopic forms of life, acting in the absenceof oxygen, reduce organic substances and produce gas containing principallycarbon dioxide and methane; sometimes a small amount of hydrogen sulphide andtraces of other gases are given off. The biological process in the aqua privyrepresents that portion of the cycle of life and death in which complex organlccomponds are reduced to a simpler condition to be available as food for lowforms of plant life. The principal advantage of septic action is the relativelysmall amount of sludge that remains, compared with that produced by plain sedi-mentation or by chemical precipitation. Another advantage of the aqua privy isthe small amount of attention and skilled attendance required.

9. In the aqua privy, the excreta falls through a funnel into the floorof the closet into a tank located immediately below. The water level remainsconstant. To ensure adequate absorption of the small amounts of water thatwill be used, the residential developments using the aqua privies will belocated in areas with reasonable soakage conditions.

10. It is proposed to have a contractor install the aqua privy in orderto make sure it is appropriately done.

(iii) Electricity

11. The Town Council runs a diesel generating station to pr!videelectricity to consumers within the township. The power station has Icapacity of 0.8 MW. The detai7s of eyisting machines are as folos

ANNEX 3Page 4

Dates ofNumber Capacity Installation

2 250 kw diesel alternator sets November 1968 andMay 1969

2 150 KW diesel alternator sets 1957, 1964

1 Portable diesel alternator 1973

The system is not very reliable.

12. Electricity is almost exclusively used by commercial, industrial,and high-income housing areas. Except for some areas that have streetlighting, most of the low-income areas do not have electricity in their homes.Present demand is about 300 KW and is expected to rise to about 2.5 MWby the mid 1980s. Except for more street lighting in the lower income areas,commercial, industrial, institutional and higher income groups will continueto be the primary consumers.

13. The investment in power (primarily infrastructure) proposed underthe project is very small, R42,500 or about 2.9% of total project costs. Thefunds will be used to connect Francistown to reliable power from Shashe, im-prove the distribution lines in the town, especially to industrial and commercialareas, and supply street lighting to residential areas. An 11kV line will belaid from the existing substation about 5 km outside of town.

(iv) Roads and Bridges

14. There are just over 1,000 motor vehicles in the Francistown area.The predominant movements are by pedestrians or cyclists particularly fromareas south of the river to the town center and industrial area. The trafficcensus and the 10% social survey carried out by the Town Planning Consultantsshowed that 30-40% of journeys to work from low-income areas are by cyclewhile the remainder are on foot.

15. The major roads in the township have been constructed to a tarmacstandard and the rest are gravel or earth. On the basis of the projectionscarried out after the traffic census in 1970 the vehicle ownership for 1980is expected to be 0.3 private automobiles per household in the low- and medium-income group who make up some 94% of Francistown's population. Traffic volumesexpected by 1985 do not warrant extensive roadworks.

16. The roads and bridges included in the project are primarily directedat linking work places and residential areas with special attention to thepedestrian traffic between the west and east banks of the Tati. For all majorroads appropriate drainage work is included in order to facilitate their useby cyclists and pedestrians.

ANNEX 3Page 5

17. The primary roads to be provided under the project consist of:Shoulder

Road on eachLength Reserve Carriageway side Type of Road Standard

1,000 m 60 m 7 m 2 m National trunk Bitumen4,100 m 30 m 7 m 2 m Major arterial Gravel

18. As the traffic across the Tati River is predominantly pedestrian,the existing Maun road bridge will be improved to provide two pedestrianfootpaths. A cycle and footbridge will be built on Ntshe River above theconfluence with Tati River to ensure direct access from Monarch to industrialand commercial areas. A causeway will also be provided linking areas X and v

(see Map 10504) and Monarch.

Land Requirements for Industry, Commerce and High-Cost Housing

(i) Commercial Areas

19. At present, shopping is located almost entirely in the center ofFrancistown. The area has about 30 shops, 15 service establishments (in-cluding banks, garages, and hotels), several wholesaling firms, and severaloffices including the Town CQuncil, a Post Office and telephone exchange. Allbuildings are single story. The total volume of building floor space isroughly 287,000 sq ft, of which the net retail floor space is about 45, 000sq ft.

20. The annual retail expenditure in 1970 was approximately R1,189,000(US$1,688,380) giving an annual turnover per net square foot of roughly R27(US$38). Future annual retail expenditure is forecasted to increase byR988,000 as the population nears 35,000. Assuming an increased total annue!turnover per square foot of R50 (based on South African experience) anadditional 20,000 sq ft of net retail area would be required. To meet thisnet retail floor area and to accommodate other town center functions, some50 acres would have to be serviced 1V. The project provides for only t,0

acres or one-fifth the projected need.

(ii) Industrial Areas

2X. Owing to the small size of trancistown and, the >lco- cfdata on industrial development it fs dfircult to precise>; -sv'e '- .

land requirements. The Franc'stown Planning Provesals eFtima':ed 'Se -ntrial acreage needed on the basis of projected emplovment using a revealedcoefficient of 20 workers per acre. If the work force for wlhich local sites

1/ Francistown Planning Proposals, p. 149.

ANNEX 3Page 6

must be provided grows to about 2,000 by 1977 as projected by the consultants,about 40.5 additional ha of industrial land would be required. Those require-ments far exceed the 11 ha to be provided under this project-a more cautiousapproach to demand for such land in Francistown.

22. There is already a small industrial estate in central Francistownof some 29 acres which also houses the labor recruiting facilities of SouthAfricar - In 1969, the Town Council purchased some 300 acres for asecond industrial estate at Dumela, which were not subject to the Tati Com-pany trading rights covenant. Poorly located some 4.5 miles away from centralFrancistomn, Dumela is between 8-10 miles from the traditional settlements onthe west side of the Tati where over 80% of Francistown live (virtually allthese people walk or cycle to their places of work). In addition, it is onblack cotton soil which is extremely expensive to build on. For these reasonsind7istrialists have not been eager to establish at Dumela and the Council hastc diiase the servicing of the estate to complement development of industrialland in central Francistown where industrialists prefer to locate. So far,only 30 acres at Dumela have full services and of these 26 have been sold and4 are under option or in reserve. However, according to the FrancistownPlanning Proposals forecasts, the whole of Dumela is likely to be fully de-veloped by the 1990s.

(iii) High-Cost Housing Plots

23. It is anticipated that there will be demand for high-cost plotsfrom the personnel of enterprises moving into the industrial area to be ser-viced by the project as well as from Government employees. Government esti-mates that it will need five high-cost plots annually in Francistown over thenext few years. The demand from the private sector is difficult to estimatebut it is considered far in excess of the 25 plots being provided under theproject. The project plots are thus not meant to satisfy total demand but torelieve existing shortages and get some development underway.

(iv) Low-Cost Residential Development

24. Based on information on population, size of household and housingstock in 1972/73, it is estimated that the following housing units by incomegroup will be required in Francistown:

ANNEX 3Page 7

Housing Required by Income Category

Annual Income % of Approximate Approximate(Rand) Households No. of Units Classification /1

0 - 300 62 2,300 Traditional/Site & Services /2

300 - 1,000 32 1,200 Site and Services/Low-Cost

More than 1,000 6 200 Medium-High-Cost

/1 There is considerable overlapping among the lower categories. Traditionalhousing is actually a form of site and services.

/2 Some families where current incomes are lower than the targets might beable to afford the facilities any-way, either because of accumulated sav-ings or remittances from migrant workers in South Africa.

25. The land required at roughly 20 units to a hectare for site andoervices and traditional housing is:

Traditional 115.0 ha

Site and Services 60.0 ha

Low/Medium/High-cost 20.0 ha

26. The ODA financed Phase I and the IDA project will provide:

82.5 ha for traditional housing

45 ha for site and services

Clearly these provisions do not meet all requirements. This is deliberateand in keeping with the rather prudent apprcach that characterizes the pro-ject.

AiNa hPage 1

BOTSW3LA

FRA'NCISTOW URBAN DEVELOPMEZT PROJECT

Cost Estimates

1. *The following cost estimates are made at September 1973 pricesbased on preliminary engineering designs of the various components of theproject carried out by Brian Colquhounq Hugh O'Donnell and Partners. Theyinclude a 10% physical contingency item and another 15% for price escalationover an 18-Tonth construction period. An additional 5% has been added tothe escalation factor in order to bring project costs to the expected biddingdate of February 1974.

ANNFX 4

BOTSWANA PA5 "

FRANCISTOWN URBAN DEVELOPMENr PROJECT

Detailed Cost Estimates

LOCAL POREIGN TOTAL LOCAL FOREION TOTAT,

------ ---- Rands _ - ------------- I,$-

A. PRIMARY INFRASTRUCTURE TOTAL 206,900 348,600 555,500 310,350 522,900 833,-5'

Sewerage 36,920 19,880 56,800 55,380 29,820 85,200Water Supply 8i,48o 122,220 203,700 122,220 183,330 301 c.Roads and Bridges 78,300 182,700 261,000 117,450 274,050 39),'0Electricity 10,200 23,800 34,000 15,300 35,700 S 1' 0

B. COMSMUNITY FACILITIES TOTAL 247,860 185,240 433,100 371,790 ?77,800 0.'_( ,

Town Council Offices 90,000 60,000 150,000 135,000 90,000 S3nWard Offices - .2 No. 19,020 12,680 31,700 28,530 1(,020 L ,sWorks Depot 31,680 21,120 52,800 47,520 31,680 o )Clinics - 2 No. 16,680 11,120 27,800 25,020 16,680School - 1 No. 64,200 42,800 107,000 96,300 64,2,0oo ½Market - 1 No. 26,280 17,520 43,800 39,420 2(,280Block-making machine 20,000 20,000 30,000 03"'

C. TECHNICAL ASSISTANCE, ETC. TOTAL 89,700 249,300 339,000 134,550 373,950 5,2-L, 14

Technical Assistance, Management Unit, etc. 45,000 165,000 210,000 67,500 247,500 305,n0) Supervision of construction 44,700 104,300 149,000 67,050 1S6,450 2o 3

D. INDUSTRIAL, COMMERCIAL AND HIGH-COST HOUSING PLOTS

1. 11 ha of Industrial Land TOTAL 32,445 38,355 70,800 48,667 57,532 10149

Roads and Drainage 7,980 18,620 26,600 11,970 27,930 39,-00Water Supply 5,265 6,435 11,700 7,897 9,652 '7,S49Sewerage 17,550 9,450 27,000 26,325 14,175 4i 5S oStreet lighting and Power Mains 1,650 3,850 5,500 2,475 5,775 S3,'52

2. 5 ha of Commercial Area TOTAL 214,550 40,450 65,000 36,825 60,675 29 ,-O

Roads and Drainage 7,200 16,800 24,000 10,800 25,200 36,00XWater Supply 3,600 4,400 8,000 5,400 6,600 12,00iSewerage 7,150 3,850 11,000 10,725 5,775 16,503'Power cables and Street lighting 6,600 15,400 22,000 9,900 23,100 3, ½

3. High-Cost Plots - 25 No. TOTAL 15,025 17,975 33,000 22,537 26,962 049,45

Roads and Storm Water Drainage 840 1,960 2,800 1,260 2,940 4,o00Water Supply 2,250 2,750 5,000 3,375 4,125 ''00Sewerage 8,125 4,375 12,500 12,187 6,562 t14)Street Lighting 3,810 8,890 12,700 5,715 13,335

E. LOW-INCOME RESIDENTIAL DEVELOPMENT

1. 1,000 Traditional Housing Plots (Monarch) TOTAL 102,495 87,405 189,900 153,742 131,107 14

Roads, Storm Water Drainage, etc. 9,000 13,500 22,500 13,500 20,25C nD,7SCWater Supply and Standpipes 3,825 4,675 8,500 5,737 7,012 !'',74,Anua Privies 78,000 42,000 120,000 117,000 63,000 i S,o 0'Sireet Lighting 11,670 27,230 38,900 17,505 40,845

2. 300 Site and Service Plots TOTAL 98,005 88,595 186,600 147,007 132,8__2 _79, 8$9

Roads, Storm Water Drainage, etc. 16,040 24,o60 40,100 24,060 36,090 60,15 '

Water Supply and Standpipes 13,635 16,665 30,300 20,452 2Z4,997 4. 4,Aqua Privies 62,270 33,730 96,000 93,405 50,595 I 4 4,'20Street Lighting 6,o60 14,140 20,200 9,090 21,210 ^0,30

3. B-'lding Materials TOTAL 50,000 150,300 200,000 75,000 22_,0).0',0

T-mber, Roof Sheets, Windows, Doorsand Frames, Cement, Ironmongery,Paints, Plunmbing Materials, etc. 50,000 150,000 200,000 75,000 225,000 300,000

4. Upgrading cf Existing Areas TOTAL 101,450 88,650 190,100 152,175 132,975 285,15^

Roads and Storm Water Drainage 21,200 31,800 53,000 31,800 L7,'00 79o500Water Mains and Standpipes 8,370 10,230 18,600 12,555 15,345 27,aOAqua Privies 67,470 36,330 103,800 101,205 54,495 '155 0OOStreet Lighting 4,410 10,290 14,700 6,615 15,435 ^2,05C

F. CONTINGENCIES /1 10% 82,873 81,527 170,400 124,310 131,290 2'

^. ESCALATION ITEMS 2 20% 193,686 262,900 456,600 290,529 394,4co 65e4, 0Sept.1973 - June 1975)

GRAND TOTA. 4.2144 g8o 1 665 .000 2.910.000 1.867.483 2_ _.' .030^

A,B,D,E; exceDo ^or K20,000 in categ^ry B Brlock-makirtg rachine) an,! K200.000 in category E (building raterials'.

L Items A-E.

ANNEX 4Page 3

2. Given the very comprehensive nature of this project and the smallvalue of many of the components, it would be out of proportion to provide adetailed breakdown of costs for each of the sub-headings shown in the tableabove. Detailed breakdowns will be given for these select items: prepara-tion and servicing of 27 acres of industrial land, supporting or primaryinfrastructure, and one of the subdivisions for site and services.

Industrial Land (27 acres)

A. Sewerage

150mm dia 2,250m at R12.00 R27,000 R27.000

B. Water

100mm dia 1,209m at R6,00 7,25475mm dia 840m at R5,27 4,427 11,681

C. Roads

1,150m at R2031,00/lOOm 23,356

D. Stormwater Drainage 3,220

E. Street Lighting and Power Distribution 5,491

Total R70,748

ARNNX L4Page4

Supporting Lnfrast-ucture

Item Cost/Unit Total

A. Severage150rm dia 800G at R1 ,200 R 9,600300.n dia 1,100m at H2,400 26,400

P.S. )i. 2 Lump SUM 10,000Rising Main 80Gm At Rl ,350 10,800

TOTAL a 56,800

B. Water450=. dia 330m at R2,970 9,801375nm dia 600m at R2,720 16,320300mm dia 547m at R2,250 12,307225nm dia 625. at R1,300 8,125150.. dia 400. at R1,000 4,000225rmm dia 625. at R1,300 8,125150Dm dia 980m at RI,ODO 980150.. dia 1,090m at R1,000 10,900300nm dia 300D at R2,200 6,750225nm dia 15G0m at R1,300 1,950

R 79,238

Pipes connecting boreholesto aystem: 300mm dia 2,000m at R2,250 45,000

150mm dia 1,s440m at Rl,OOO 14,400

Purification works 20,000Chlorinator 5,000Borehole puas 5 at R2,000 10,000Booster pua to puwp water

from purification works 30,000to system

124,400

TOTAL R 203,658Sq 203,700

c. Roads

National Trunk Roads:N - Railway Line plustraffic circle 1,000m at P2,000/100m 20,000

INjor Arterial Roads: 2,300m at R1,520/100m 34,905600m at R1, 520/11Om 9,105600m at RM,520/100m 9,105600r at R1,520/0oom 9,105

L.747m at R1,520/100m 11,360Railraod crossing and protection 5,000

Storinater drainage has been eatimated at 23,742

TOTAL R 122,322

D. BridgesWidening present bridge over Tati River R 33,300Pjdestrian bridge to Mnarch 38,850Submersible bridge from Area X to ibnarch 66,600

R 138,750

TOTAL R 261,072

Say R 261,000S. ect - ii

Street lighting betwee,' Area S and the Industrial Area 2,664Feed to Ar-a k 3,330reed z3 Area Y 7,860Feed - o Area X 1,85*ea -so Area LFaec Aro a-ea V 2,4L42ITdastvial Area mini substatior 6,660Co0=k-rci.C.. Area feed and sini substation 7,326

TOTAL R 33,710

Say a 34,000

ANNEX bPa-ge5

A Typical Cost Estimate forA Site and Services Subdivision (Area W)

Item Q Cost/unit Total

A. Sewerage Nil Nil Nil

B. Water 150mm dia 249m at R10,00 2,490lOOmm dia 290m at R 6,00 1,74175mm dia 415m at R 5,27 2,18550mm dia O54om at R 4,00 2,15638mm dia l,OOOm at R 2,50 2,500

Standpipes 21 No. at R60,00 1,260 12,332

C. Roads 3,052m at R187/lOOm 5,708 5,708

D. Stormwater 6,850 6,850

E. Street Lighting -7,124 7,124

Total R32,014

ANNEX 5

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

Plot Allocation Procedure in Sites and Services 1/

1. The selection of plot occupants for site and services and tradi-tional areas will be made by the Self-Help Housing Agency (SHHA) with thehelp of Council Ward Officers subject to the approval of the Site and Servicesllanagement Board. 2/

2. To be eligible for site and service plots, applicants must:

(a) be at least 18 years of age and residents of Francistown;3/

(b) demonstrate their ability to pay the combined service chargeor show proof of falling within the target income group, pro-visionally fixed at R300-1,000, to be verified from CouncilTax Rolls; and

(c) have a job within Francistown area.

3. Because plots will be ready at different times and in locationssome of which might be less popular than others, a priority system will beformulated along the following lines:

(a) first priority will be given to persons living in those partsof Francistown scheduled for resettlement, e.g., Somerset East(hospital site and primary school) and the Monarch TraditionalHousing Area; within this grouping, priority would be given tofamilies demonstrating immediate need for such accommodation; and

(b) priority will next be given to people living in other settled,largely squatter portions of Francistown, e.g., RiversideNorth/South, Somerset West, area surrounding Satellite, etc.,who can afford and would like to move to new areas.

1/ The only criteria for allocation of traditional plots will be 2(a).

2/ The Board composition is discussed in para. 4.08.

3/ Applicants who are non-citizens must prove they are bona fide residentsof Botswana.

ANNEX 6

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

tonthly Charges

1. T-.e avarious components of monthly charges are described in para.4.20 on Household ,Monthly Repayments in Chapter 4 of the text. This annexturefurtaer details the item on Recurrent Services which are to be paid by allplotholders.

2. Recurrent services cover both recurrent costs to the Town Counciland expenditures for primary infrastructure (water and electricity). Atpresent, it is estimated that this charge will be made up as follows:

Service Monthly Charge Paid Into(Rand)

Refuise collection 0.35 General revenuePublic conveniences 0.20 General revenueRoad maintenance 0.20 General revenueStreet lights 0.05 General revenueAdministrationi 0.05 General revenueWater 0.55 Water account

Total 1.40

All of Lte above cniarges cover tlhe full operating costs of providing serviceswithi the single exception of water. Clean water represents an essentialrequiremnent for good puBlic hiealth and in this case charges are based onwhat the Council believes these people can afford to pay. The differencewill be inet througlh cross-subsidies from the upper income groups. Accordingto recent Town Council water study, the people who were drawing water fromstandpipcs used 27.6% of all water supplied. The total expenditure on theLCounicil's water account operation was RllU,000 in 1972. Given the estimatednumber of househiolds :among standpipe users, each household was found to beliable for R12;37 per year or Rl.06 per month. According to the Council'scross-subsidy principle, standpipe users are charged one-half the abovecalculated figure or RO.55 and those with individual connections propor-tionately more in order to cover tne full cost of water supply.

3. The monthly payment, together with the Local Government income taxfor the self-employed will be collected by Ward Office personnel.

ANNEX 7Page 1

BOrlSWNA,

FR'ANCISTOWNJ MMAN DEVLOPKE P1lJEST

Draft Certificate of Rights 1/ and Building By-Laws 2/

Certificate of Ri'ghts

TOWN COUNCIL

CERTIFICATE OF RIGHTS issued by the .TowCouncil Under Authority of the President of the Republic of Botswana interms of the State Land Law No. 29 of 1966, as amended.

The ............. .....Town Council (hereinafter referred to asthe "Council") grants to: -

NAME (Print) ...................................

ADDRESS ...................................

,...............................

(hereinafter referred to as the "Occupier") the Rights set out below, andsubject to the obligations, terms and conditions therein, in respect ofPlot No. ......... $4 ........................

............... *.*......... .. ......

.............. .. S.......

as shown in Plan No. ........... held by theDepartment of Surveys and Lands.

1. (a) This Certificate of Rights is the sole property of the Occupierwho is not entitled or empowered nor has he any right to mort-gage, hypothecate, pledge or give as security, whether directlyor indirectly, in any manner whatsoever, any of the rightsgranted to him by virtue of this certificate.

(b) This certificate can be ceded, assigned, transferred or madeover with tile written consent of the Council.

2. On the death of the Occupier the rights granted to him under thisCertificate slhall be inheritable.

1/ Government intends to revise this draft in order to make it understandableto simple townspeople who will use it. Final version will be submittedfor comment.

2/ The by-laws are also being finalized and a final version will be sent tothe Association for comment.

ANNEX 7Page 2

3. The Occupier, shall not give up occupation or possession of the plotor any portion thereof without notifying the Council in advance.

4. The plot shall only be used for residential purposes, provided however,that the Occupier shall be entitled to use the aforesaid plot for any otherpurposes whirh are authorized in writing by the Council.

5. (a) The Occupier shall be entitled to reside on the plothimself and with members of his family and with hisfriends and with any of his lodgers.

(b) Notwithstanding the provisions of sub-clause (a) above,lodgers of the occupier shall only be entitled to resideon the plot if the occupier is himself residing thereon,unless the occupier obtains the Council's prior writtenconsent.

(c) Notwithstanding the provisions of sub-clause (a) above,the Occupier shall not sub-let the plot without thewritten permission of the Council.

6. The Occupier shall develop the plot (here set out specifically what typeof development must take place) within .................... months.

7. (a) The Occupier shall pay to the Council a regularservice payment in consideration of the rightshereby granted to him and for the services tobe provided by the Council to the plot in respectof which this Certificate is granted and to thelocality in respect of which this plot is situated.

(b) The service payment referred to in sub-clause(a) above for the rights to be gtanted by theCouncil to the Occupier in terms of sub-clauses(a) above shall be the sum of R ...............(please fill in this amount) ........... per(please fill in whether week, month or year)...... . . . .. .. ... which shall be payable ...(please fill in whether weekly, monthly oryearly) ........... in advance on the first day ofeach ................... (please fill in whetherweek, month or year) .............. commencing fromthe. ..... day of .19..... atthe offices of the Council or such other place asthe Council may notify the Occupier.

(c} Th^e Counc.i, srovided that it has obtained thewr_e-z ap3:oval of the Minister of Local Govern-

2ent arnd Lands, shall be entitled to vary theamount cf cne service paymLent to be paid by the,eccu-:-er _o .Le Council, and in, th.e event of the

ANNEX 7Page 3

Council so varying the amount of the service pay-ment, the Occupier hereby agrees to pay suchvaried amount, the provisions of this clauseapplying in the case of such variation mutatismutandis. The Council shall give to the Occupiernotice in writing of any variation of the amountof the service payment.and the date such variationshall become effective.

(d) The notice of variation envisaged in sub-clause(c) above shall be deemed to have been validlygiven by the Council to the Occupier if the Councilserves the notice on the Occupier personally, or,if there are any improvements on the plot, affixesit to any such improvement, or, if the plot is avacant piece of land, affixes it to any suitablepost or other material on the vacant land so thatsuch notice is clearly visible.

(e) The variation of the service payment shall becomeeffective on such date as may be specified in thenotice given by the Council in terms of sub-clause7 (c) above, but in any event shall not becomeeffective before fourteen (14) days have elansedafter the service of such notice.

(a) Should the Occupier commit or permit the commissionof a breach of sub-clauses 1 (a) or 5 (b) or 5 (c)or be 6 calendar months in arrears in respect of anyservice payment due by him under clause 7 and failto remedy any such breach within thirty (30) daysafter notice (which can be given in any of themanners set out in clause 7 (d) above by the Councilto the Occupier) then the Council shall be entitled,notwithstanding anv previous waiver or anything tothe contrary contained herein, but not obliged, tocance] this Certificate of Rights forthwith and toretake possession of the plot without prejudice toits claim for any arrear service payments or forany damage which it may suffer or sustain by reasonof such breach and cancellation, and in that eventthe Occupier will have no claim whatsoever, whetherfor damages or otherwise, against the Council. Can-cellation by the Council shall be given in writingand service of such cancellation shall be deemed tohave been validly given if such written cancellationis served in any of the manners set out in Clause 7(d) above.

&NNEX 7Page 4

(b) In the event of the Council cancelling this Certificatein terms of Sub-clause (a) above, then the Council shallpay to the Occupier the current market value, (as at thedate of cancellation) or the cost thereof, whichever isthe lesser amount, of any improvements on the plot.

9. (a) The Council shall, upon being so directed by the Ministerthat the plot is required for public purposes be entitledto cancel this Certificate of Rights, provided that itgives to the Occupier six (6) months' notice of its in-tention so to do and advises in such notice the Occupierwhat the public purpose is for which the Governmentrequires the plot.

(b) "Public purposes" means one or other of the followingpurposes:-

(i) in the interest of defence, public safety,public order, public morality, publichealth, town and country planning or landsettlement,

OR

(ti) in order to secure the development orutilization of that or other property fora purpose beneficial to the community.

(c) Any such notice, and any such cancellation followingthereon shall be deemed to have been validly given bythe Council to the Occupier if served in any of themanners set out in Clause 7 (d) above.

(d) In the event of the Council cancelling this contractin terms of sub-clause (a) above, then the Councilshall pay to the Occupier the current market valueas at the date of cancellation or the cost thereof,whichever is the lesser amount, of any improvements,on the plot.

10. (a) The Council shall advise the Occupier by notice inwriting that he may appeal to the Mrinister within30 days, or any longer period which the Ministermay allow, against any of the decisions made bythe Council in terms of Clauses 1 (b), 4, 5 (b), 5%c), 6, 7 and 8. Any such notice to be given bythc Gouncii shall be deemed to have been validlygi.ve;- -f served in any of the manners set out inc,ause i () above.

ANNEX 7Page 5

(b) Within 30 days or any longer period which the Ministermay allow, after any such notice envisaged in terms ofsub-clause 10 (a) above has been served on the Occupier,he shall have the right to appeal to the Minister ofLocal Government and Lands.

(c) The Occupier must exercise his right of appeal throughthe District Commissioner. It shall be the duty of theDistrlct Commissioner -

(i) to assist the occupier in drafting and framingany appeal,

(ii) to transmit the appeal forthwith to theMinister of Local Gove=nment and Lands,

(iii) to advise the Minister of Local Governmentand Lands, if applicable, of all the circum-stances relevant to any appeal not havingmade within 30 days.

(iv) to assist the occupier to obtain any necessaryinformation to enable him to draft and frame theappeal in terms of sub-clause 10 (c) (i) above.

ANEXU 7Page 6

nap?lication

1. These Regulations shall apply to any dwelling house within anyzone of the Francistown Township or part thereof in which the use of landhas in terms of a town planning scheme been prescribed as being for Siteand Service Housing.

Interpretation

2. In these Regulations, unless the context otherwise requires,

"dwelling house" means a building used for the purpose of humanhabitation;

"habitable room" means a room in a dwelling house constructed oradapted for use as a living or sleeping room;

"Local Authority" means the Francistown Town Council and/or theSelf-Help Housing Agency of the Francistown Town Council;

"tot" means any pioce or parcel of land demarcated by measurementin a designated Site and Service Housing Area; and

"to erect any dwelling house" means (a) to erect a new dwellinghouse and (b) to re-erect, add to, alter, or convert an existingdwelling house.

Notice of Intention to Build

3. (a) Every person proposing to erect any dwelling house shall givenotice of his intention to build to the Local Authority and shallsu?p'y such particulars of the proposed building as the LocalAuthority may require;

(b) Actual construction of the dwelling house shall not commence untilIt.ae ?7-oposer has obtained from the Local Authority a permit in

v::, ::.g auThorizing the construction of such bui'lding;

(_, S_ 9z~ Th_' U. j Ui~i ¢'c by'ixg oW-n2b, the _szal Authority shall. beS_*_ch _ . occues ?:ovisio_sS a.s it may require.

ANNEX 7Page 7

Permit for Occupation

4. No person shall occupy or permit the occupation of any dwellinghouse until he has obtained from the Local Authority a permit in writingauthorizing occupation of such premises, which permit shall not be issuedby the Local Authority unless it is satisfied that the construction ofthe dwelling house is of a standard not lower than is required by theseRegulations.

Provided that where the Local Authority is satisfied that it isnot unreasonable to occupy a portion of any building before the completionof the.whole building, the Local Authority may authorize the granting ofa certificate for occupation of such portion only.

Inspection by Local Authority

5. Any person authorized by the Local Authority may at any time duringthe erection and on completion of a dwelling house enter upon the lotand inspect the building for the purpose of ensuring that it has beenerected to a standard not lower than is required by these Regulations.

Minimum Space Requirements

6. (a) No dwelling house shall be erected in a Site and Service Areahaving an overall floor surface space of less than 25 squaremeters;

(b) No dwelling house shall be erected in a Site and Service Areahaving less than three rooms, namely a bedroom, a living roomand a kitchen, contained within the 25 square meters prescribedin 6(a) above;

(c) No dwelling house erected in a Site and Service Area shall containbedrooms of less than 8.5 square meters, living rooms of less than11 square meters, or kitchens of less than 5.5 square meters.

Habitable Room

7. (a) There shall be at least two habitable rooms in every dwelling house;

(b) Every habitable room shall, on average over the entire roof andceiling area be not less than 2.45 meters from the floor to theunderside of the roof (or ceiling, if one is provided), and nopart thereof shall be less than 2.30 meters from the floor tothe underside of the roof or ceiling.

ANNEX 7Page 8

Foundations

8. Every person who erects a dwelling house shall construct every wallor pier of the building so as to rest upon a layer or good cement concreteof sufficient width and thickness laid on solid ground, or upon a sufficientbressummer, or upon some other solid and sufficient substance as a foundation.

Walls

9. (a) Walls shall be constructed of cement, brick or block (11.4 cms),or burnt brick (11.4 cms), or unburnt brick (23 cms), or tospecifications as laid down in the Building Control Regulations,1964, as amended from time-to-time;

(b) The surface of wails, internally and externally, shall be ade-quately sealed to prevent the harbouring of insects and thepenetration of rain.

Damp-Proof Course in Walls

10. Every person who erects a dwelling house shall cause every wall(including any pier forming part of a wall) of the building to have aneffective damp-course of sheet lead, galvanized iron, asphalt or vitrifiedstoneware, or a double course of impervious slates or blue bricks laid tobreak joints and bedded in cement mortar, or of other not less durablematerial impervious to moisture not higher than the upper surface of theconcrete or other similar solid material forming the structure of thefloor, and, in any case, at a height of not less than 15 cms above thesurface of the ground adjoining the wall or pier.

Floors

11. (a) Floors may be made of concrete, good sound burnt brick, wood, orother material approved by the Local Authority;

Provided that, in the case of wooden floors on the ground floor ofa dwelling house, the Local Authority may require the concreting of theground underneath and the rodent-proofing or mosquito-proofing of any spacebetween the floors and the ground.

(b) Every floor shall have a smooth finish and shlall be at least 15 C_T_;above the surrounding ground level unless thresholds are builtin each external doorway which adequately prevent the flow ofstorm or other water into the dwelling house.

ANNEX 7Page 9

Windows and Doors

12. (a) Every habitable room shall be provided with unobscured glazedwindows, all of which shall be capable of opening so as to provideventilation;

(b) Window openings in every habitable room shall face onto theexternal area so as to provide a clear lighting area equal toat least one-fifteenth of the floor area of such room;

(c) External and internal door frames shall not measure less than183 cms in height and not less than 76 cms in width;

(d) Doors and windows shall be constructed in such a way as to haverigid frames and shall be firmly fixed in the walls.

Preserving of Woodwork

13. All timber and woodwork shall be properly protected from theattacks of insects, when necessary in the opinion of the Local Authority.

Roofing

14. (a) Every roof shall be of thatch, weather-proof and properly laid,corrugated iron, aluminum, asbestos, or other material permissiblein terms of the Building Control Regulations, 1964, as amendedfrom time-to-time;

(b) Any material used shall be in good condition and the roof shallbe constructed so as to be regular-in shape and weather-proofand shall be supported on an adequate frame.

Ventilation

15. (a) Every habitable room shall be ventilated by openings which shallbe unobstructed except by gauze wire;

(b) All such openings shall give direct access to the external areaand the aggregate area of such openings shall be equal to at leastone hundreth of the floor area of the room.

Site Drainage

16. Site drainage, wlhere practicable, shall be adequately arrangedwithin thc lot boundaries so as to dispose effectively of storm water with-out damage or nuisance to adjoining lots, roads, or open spaces.

ANNEX 7Page 1 0

Sanitary Conveniences

17. (a) Every dwelling house shall be provided with a sanitary convenienceof a type approved by the Local Authority;

(b) Every such convenience shall be walled and roofed to a height ofat least 2.14 meters from the floor, be provided with a doorproperlv fitted and hung, and with a ............... (exact'-;cription of the floor to await sketch drawings of proposedsuper-structures for Aqua-Privies under preparation by theSewerage Engineer, Ministry of Works and Communications).

Separate and Independent Access

18. No person shall erect a building intended, adapted, or designed tobe lzed wholly or partially for human habitation so that any portion thereofwhi,ii constitutes a dwelling house shall be without separate and independentaccess to a street or lane.

Sinks, Baths, Etc., To be Trapped

19. All sinks, baths, and other water fittings shall be trapped to thesatisfaction of the Local Authority, and the traps shall have a water sealof at least 38 cms.

Temporary Buildings

20. Not withstanding anything contained in these Regulations, it shallbe lawful for the Local Authority to grant permits for any specified periodnot exceeding twelve months for temporary buildings on such obligations asto the standard of the buildings, the removal thereof and otherwise andgenerally upon such terms as it may think fit, and these Regulations shallnot apply to any buildings erected under such a permit unless by expressstipulations.

Provided that before granting a permit the Local Authority shallbe satisfied that sufficient wholesome water supply and sanitary accommoda-tion is provided in the vicinity where such temporary buildings are to beerected.

lenalties

21. Any person who commences construction prior to the issue of apermit, or who occupies or allows his building to be occupied prior to theissue of a permit, or who contravenes any of the other provisions of theseRegulations shall he gul.lty of an offence and liable on conviction to a finenot exceec-_Ing fifty rands, or, in default of payment thereof, to imprisonmentnot exceec ig one month.

ANNEX 7Page 11

Provided that whether or not the Local Authority takes action inrespect to this Clause, it shall remain within the power of the LocalAuthority to institute action, without prejudice, for the withdrawal of anoccupant's Certificate of Rights.

An4iLX 8Page 1

BOTSWUNA

FT:ZCZISTOWa. U?AKX DEVLOPMENEIT PROJZCT

Francistown Town Council

llotes on Fature Finances Together withProjected RNevenue and _ipenditure Statements

1 Government's policy is to restrict Town Council expenditures toavailable local revenues. This policy is exercised through the Town Council.. egulations which require that annual To-n ,ouncil expenditures be restrictedto prior estimates approved by Central Government. For this purpose, expendi-tures include cash outlays for operations, debt service and minor capitalexpenditures. Tbwn Council borrowings also require Ceintral Government approval.

2. The ability of FTC to meet the project debt service and r currentexpenses (excluding utility operations) is demonstrated in the table on page 4of this Annex. As the utility operations are likely to be taken over by the.i:ational Corporation in the next few years, it is therefore considered prudeltto treat them separately in Annex 9.

3. Actual and projected revenues for the Town Coulcil are as follows:

Actual Projected

1971 1972 iT93 197 -197i 1970 1977 i979 1979 1980-(~~~~~~~R I'OO ) -------------

Property Rates 11 19 20 80 135 160 178 238 247 262

Local Governmentincome tax 95 91 94 103 114 125 138 151 167 184

Schlool fees 15 16 16 16 18 18 18 20 20 20

Collection for AquaPrivies and buildingmaterials - - - - - - 52 52 5' 52

Standing charges - - - - 26 32 35 38 41 45

Other 39 54 75 82 91 110 100 121 133 146

Total 160 180 205 281 384 '45 521 620 660 709

A '!- 8Page 2

Revenues

4. The assumptions used in projecting FTC's revenues are givenbelow:

;a) Propercy rates: A new rating valuation roll is to be iatrodacedshortly. Previously only land was assessed for property rates,but the new valuation roll includes both buildings and land. Thevalua.ion roll will be used for rating assessments as soon asanreals have been heard by the Valuation Courts. The ratingia-Lkabion and expected yield from 1973 to 1980 are given below.

LandYear Unimproved Improved Rating Yield

-------- (in ROOO)--------------

1973 1,400 5,200 20,74 1,400 5,200 80

1975 1 ,400 6,100 133.51976 1s,750 7,200 160.51977 2,200 8,400 178.51978 2,200 11,500 238.51979 2,200 12,100 247.51980 2,200 13,100 262.5

The figures are based on Government estimatess revised in con-sultation with an outside valuation co.isultant. It is assumedthat in FY75 rates on unimproved land will be increased from 2%to 3% and rates on improved land from 1 % to 1.5%;

(b) Local Government tax: A 10% growth rate has been assumed;

(c) School fees: Annual revenues from school fees are R6 per student.It has been assumed that new primary schools will be available in1975 and 1978;

(d) M4nthly collections from beneficiaries for aqua privies and buildingmaterials are set at a level projected to cover related debt servicefrom FTC to Government after allowing for a 10% default in collections.Collections are estimated at R52,000 and will begin in 1977;

(e) Sta-ding charges: This is based on projected standing charges payableby plot occupants. An annual collection of RIO per plot is assumed

instead of the R16 that would be indicated by R1.40 monthly standingcharge. This in fact amounts to an assumed transfer of the ROD.5.for water included in the Standing Charge to the Water Account.

(f) Other revenues: Consists of fees for sanitation services (emptyingof septic tanks in high-cost areas), trade licenoes, beer levy, etc.These are assumed to increase about 10% per anniium

ANNEX 8Page 3

Expenditures

5. The major categories of expenditures include: recurrent expensesto maintain municipal services at a level consistent with population growth,project debt service (for commmnity facilities and roads, aqua privies andbuilding materials), and recurrent expenditures attributable to the project.

6. The broad assumption is made that an annual increase of 100 inrecurrent expenditures will be necessary to maintain municipal services ata level consistent with population growth. This compares favorably withthe expected population growth rate of 7%.

7. Project debt service to be financed from FTC revenues includesR37,000 per annum for community facilities and roads, and R52,000 for aquaprivies and building materials. Interest and principal payments commence in1977. No interest is to be charged during the construction period.

8. Recurrent expenses directly attributable to the project consist ofthe cost of running the Self-Help Housing Agency. These expenses estimatedto be at a peak of US$30,000 in 1975 and then to decline as the constructionphase draws near to completion, will be met by Government as part of technicalassistance to FTC.

9. A major part of the ODA project costs will be met through low/mediumcost plot sales, except for small amount of sewerage costs involving R8,000per annum in debt service to be met from general revenues.

Consolidated Statement

10. As can be seen in the table below, Francistown should be able tomeet its debt servicing obligations under the project comfortably and have a3lgnificant revenue margin for improving municipal services over and abovethe project.

Francistoawn Town Counwil

Projected State-ent o. Revoenues and Expenditures(in . O)

Actual Proiected -1971 1972 1973 1974 1975 1976 1977 1975 1979 1960

Revenues 160 180 205 281 384 445 521 620 660 709

Expenditures

Recurrent 127 183 201 221 243 268 295 324 356 392IDA Project Debt Service - - _- - - 93 93 93 93Other Debt Service 3 3 3 3 3 3 11 11 11 11

SUB-TOTAL 130 186 20 M 246 271 428 460 496

Surplus Available toImprove Municipal Services - - 1 57 138 174 122 192 200 213

ANNEX 8Page5

Risk

11. Even in the event that municipal revenues fall short of currentestimates, and more substantial default occurs in aqua privy and buildingmaterials collection, the City will still be able to meet its commitments,as shown in the table below.

Revenues 1973 1974 1975 1976 1977 1978 1979 1980

Assuming 40% defaulton building materialsand aqua privies 205 281 384 445 500 599 639 688

Assuming both theabove and 20% lowerrevenues from pro-perty tax, localgovernment tax andother sources 167 228 316 366 417 h97 530 570

Expenditures 204 224 246 271 399 428 46o 496

Surplus (Annual) (37) 4 70 95 18 69 70 74

ANNEX 9

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

Francistown Town CouncilNotes on Financial Asects of Electricity and Water

Together with Proposeed New Charles

1. FTC's accounts, including utilities, are kept on the following

principles: Depreciation is not recognized, although debt service is treated

as an expense along with transfers to renewal funds. Year-end inventories

of current items, sucli as stores, are not taken into account. Expensewihich are directly attributable to water and electricity are classified

separately in FTC's accounts. Current revenues and expenses are included on

a cash basis. Although the preparation of utility accounts on commercial

principles would be preferable, the expense and staff commitment to do so

would not be justified at the present time, for a muncipality of Francistown's

size and limited staff resources. It is probable that, at some future date,

Francistown's water operations will be taken over by the Water Utilities Corpo-

ration and the electricity operations by the Botswana Power Corporation. This

would strengthen the operation of the town's utility operations as the National

Corporation will have better access to expertise. However, these Corporations

were fonned only a few years ago and not anxious to take over immediately.

2. Unlike water operations, electricity operations in Francistown

have produced cash surpluses. These surpluses have more than covered

deficiencies on water operations. The following table summarizes water and

electricity revenues and expenditures between 1970 and 1972.

ANNEX 9Page 2

Table Revenues and Expenditures, 1970-72Electricity and Water

1970 1971 1972---- (in R'000)…

Electricity

Revenues 97 128 149

Expenditures: Recurrent 47 56 67Debt Service 5 5 2 /1

52 - 61 69

Surplus after meeting recurrent 45 67 80expenses and debt service

Capital Expenditures 3 7 3Transfers to Renewal Funds 7 - 10

10 7 13

Surplus 35 60 67

Water

Revenues 28 31 30

Expenditures: Operating and capital 18 27 47Debt Service 10 10 8

28 37 55

Deficit - (6) (25)

/1 Includes loan repayment.

3. Electricity charges (see below) are much higher than in Gaboroneand Lobatse, even allowing.for higher fuel costs in Francistown. They arealso based on a declining block tariff. FTC would like to review thesecharges. Therefore, a firm-of consultants is to be appointed to recommenda new tariff based on capital and operating costs.

ANNEX 9Page 3

4. FTC has prepared a new schedule of water rates (see below), whichhas just gone into effect. The main objective of the new rates is to in-crease water revenues to a level which will cover operating expenses, debtservice and provide a surplus for development projects. The proposal isbased on an estimate of annual outlays by FTC's water engineer and its plan-ning officer.

5. Past water charges, which were set in 1962, were at a flat rate ofRO.40 per thousand gallons. This charge was inadequate to meet water cashoutlays, including debt service, but electricity surpluses have more tnanoffset the deficiency. The new water charges will be in the form of anincreasing block tariff.

The new water charges are substantially comparable in scale tothose in Gaborone and Lobatse and should substantially increase waterrevenues.

7. Aside from the project, FTC anticipates that there will be noneed for major capital expenditures on either water or electricity in thenext few years.

ANNEX 9Pagel1

Present Electricity Charges at Francistown

No. of Units R-and per Unit

Domestic 0 - 30 0,1531 -130 0,10Over 130 o,o6

M4inimum charge 322,00 per rnnth

Business 0 - 100 0,13101 - 500 0,10501 -1000 0,08.1001 -2000 . 0,07Over 2000 0,°5

Minimum charge R2,,00 per mcnth

Industrial 0 - 1000 o,o81001 - 2000 o,o6

2000 0,05

Minimumr charge RIO, 00 per T..onth

Principal E1ectricity Qharges at Gaborone and Lotbatse

No. of Units Rand per Unit

Domestic O - 50 0,08250 -200 0,0o41Over 200 0,027

Business 0 - 100 o,8.4100 - 500 0,0o47Ohner 500 0,1033

Industrial Demand charae of $5,25 per month per kw of half-hourlydemand subject in rinimura of $200 per month.

Energy charge 0,015

ANNE 9

Exdsting, W,Jater Charges at Gaberone and Lobatse

(Proposed -rancistcwn W.*ater Char,es)

I. Residential anld Comm.ercial User3

Consumer Classes (Gallons per Month) Rates(per thousand IG)

0 - *1,999 .502,000 - 14,999 .90

15,000 - 29,999 1.0030,000 - 49,999 1.1050,000 and over 1.20

II. Industrial Us 3rs

Consuraer Classes (3allons per nonth)

o - 14999 .8015ooo - 29999 .90*0^ _- 1.0000 1.00

50000 and over .90

III. Governnent Bll'k Usera

ConsiLmer Classes (3allons Der nonth)

0 - 149999 .80150000 - 299999 .go300000 - 499990 1 .00500000 and over 1.10

IV. Common Standrive Users Combined .Rate Breakdoiun

(per nonth)

Water .55Refuse Collection .35Streets and Drainage .20Sewerage . 20

1.30

ANNEX 9Page 6

Gaborone-Lobatse Water Charge /

Monthlly Billed Quantity Gaborone Lobatse

(a) For the first 2000 gal. or part thereof R.0/50 R.0/50

(b) For the next 4000 gal. or part thereof R.0/75 L0/75

(c) For the next, 9000 g,al..or part thereof R.1/00 R.1/20

(d) For all wator billed in excess of 15000 gals. R.O/75 R.1/10

(e) All water supplied for standpipe delivery tothe public, or to employees of special classesof consurer as approved in each case by theWater Autho 'ity R.0/5Q R&o/5C0

(f) For all raw or partially treated water s .ppliedfor agricul;ural purposes to consumers approvedin each case by the wv.ater Authority, froui theGaborone Wa:'. ks . R0/30 N/A

(g) For all raw or partially treated watersupplied fr n the liotwane w,orks R.0/50 N/A

1/--ater supply operations in Gaborone and Lobatse are conducted by theWater Utilities Corporation.

ANNEX 10Page 1

BOTSWiNA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

Francistown Town Council

Summarized Balance Sheet at December 31? 1972

Assets

1972

Current Assets

Cash 111926

Fixed Deposit and Savings Accounts (Note 2) 98,,641

Dumela Land and Improvements for Resale 155,283

Fixed Assets

Property and Permanent Wbrks - at cost or 5 374valuation

803,224

Liabilities

Current Liabilities

Miscellaneous .406Consumer Deposits 7,835

Bank Overdraft 32,818

41,159

Long Term Loans 177,419

Accumulated Fund 486,024

Special Funds (Note 2) 98,622

803,224

ANNEX 10Page 2

Francistown Town ODuncil

Statement of Revenue and Expenses for 1972

Rands % of ¶Tbtal Revenues

Revenues

Local Government Income Tax 91,221 42

Property Rates 19,228 9

SarDlus on Utility Operations (Note 5) 42,072 19

School Fees 15,697 7

sanitation Services 11,524 5

Other 38,734 18

Total Revenues 218,i476 100

Expenses (Note 6) % of Total 2cpenses

Finance and Gzneral Purposes 39,361 21

1iucation 93.,889 49

Sanitations Streets and Roads, FireServices, Social Services, Public Healthand other Miscellaneous Epenses 58,646 30

Total Expenses 191,896 100=

Sulrplus 26,580

Grants -5,791

Excess of Revenue over Expenditureper FTC Accounts 32,371

ANNEX 10Page 3

Balance Sheet

1. Fixed assets are largely retained at cost without provision ofdepreciation.

2. The special funds are represented by cash on deposit or savingsaccounts. They are apparently intended to meet various classes of capitalexpenditures, but no specific plans appear to have been made for their use.The practice of carrying a bank overdraft (R32,898) at the same time ashaving funds in excess of the overdraft invested in savings and fixed depositaccounts at interest rates much less than overdraft interest rates does notseem sound. The auditors have recommended that the savings and depositaccounts be used for FTC's cash needs.

Statement of Revenue and Expenditure

3. Expenditures include (a) recurrent expenses; (b) debt service;(c) capital expenditures; and (d) transfers to renewal funds but do not in-clude depreciation. This classification of expenditure is common in municipalaccounting. Current revenues and expenditures are included on a cash basis.

4. The surplus on utilities included in revenues is made up asfollows:

Water Electricigy Total-- R A N D- ---- -----

R.evenues 30_334 1 49,112 179,446

Expenses

Loan charges 8,112 1,530 9,642Capital expenditures 7,667 3,299 10,966Renewals fund - 10,000 10,000Other 39,935 66,831 106,766

5-5_? 71 4 jt_1,660 137,374

Surplus (Deficit) (25,380) (67,452) (42,072)

As ;will be apparent from the notes under para. 3, "Surplus" is notanalogous to profit in commercial accounting.

5. Transfers to renewal funds are represented by fixed deposit andsavings accounts. There appears to be no clear policy governing the dis-position of these funds. The matter should receive the consideration ofthe Town Treasurer when he is appointed.

ANNEX 10Page 4

Expenses shown in page 2 of this annex include debt service, capitalexpenditures and transfers to capital and renewal funds as follows:

CapitalDebt Capital Expenditure &Service Expenditures Renewal Funds Total

Finance and general 2,418 3,795 - 6,213purpose

Education - 9,257 7.000 16,25J

Sanitation and other - 18,614 2,250 20,864items grouped withthis expense

2,418 31,666 9,250 43,334

7. The auditors report for FY 1972 contains a supplementary reportwhich includes comments relating to the improvement of accounting controlsover fixed assets and maintenance of rating records. FTC accepted theauditors' recommendations and the Treasurer (to be appointed) will supervisethe implementation of the recommendations. In their report, the auditorsalso note that improvements have been made in expenditure record maintenance.

ANTAC l'i

BOTSWANA

FRANCISTOW URBAN DEVELOPMENT PROJErT

Estimated Disbursement Schedule of IDA Credit

IDA FY QUarter Dlsbursement (as end of Quarter)

Actual Caiulative

R (000) US$ ('000) R (uOOOs PA ('000)

1974 4 250 375 250 375

1975 1 230 345 480 720

2 230 345 710 i1,o65

3 230 345 940 1,410

4 225 337 1,165 1,747

1976 1 225 338 1,390 2,085

2 185 278 1,575 2,362

3 174 261 1,749 2,623

4 85 127 1,834 2,751

1977 1 65 97 1,899 1,848

2 59 89 1,958 2,937

3 25 37 1,983 2,975

4 17 26 2,000 3,000

ANNEX 12Page 1

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT

_Coparative Estimates of Costs of Developed Plots inBotswana

1. The following chart compares four different types of programs forshelter provision with their respective estimated costs per plot. Almost50% of the total cost of a completed core house on a serviced lot isaccounted for by the dwelling alone. The fully serviced lot itself, equippedwith a sanitary core enclosing a shower and w.c. would cost R890 (US$1,330),nearly half of which is sewerage.

2. Further reductions in costs are achieved if water and seweragefacilities are communalized as in column (3) for which the total cost comesto R573 (US$860) per lot. The difference is mainly accounted for by watersupply costs which are reduced by about 60%. Sewerage costs are reducedonly by 20% as the difference between providing individual connection andone w.c. for every four lots is not very significant.

o O +

E = ' ',2Q1 410 )D° I

tt t0 G ) oX t a,

Level~~~~~~~~~ ~~~~~ of Serice 1 3 4

~~~~~~~~~~~~~~~~~P4 I 8tDwli g Cor 4)us .... rg ; _.

Sanitazy~~~~~~~~~- Coej

.qever~~~~~~~~~~~~~~~~~DI ame WtrornIndiviunl Cnnecton w

Dwelling: Core House

Somanitar Core.:

Sewerag: PedWaterborl =:s ::eIndividlual Connection mf ....... .,-

WaterbWater svs< sCommanalStnpp 7hU

._ . ,_. _ ....... .. ~~~~~~~. ... ¢..

lighting:Iniv tiduali.on lnestioni---

Dainage:frcntnenis

Source: GraveluainRpr o h eeeomn fFacson erayl7ttSurforApaslaiso,Apic93enddrnitonPann

Grooavls,EOcthbrl7t

ANNEX 12Page 3

2. Detailed breakdown of costs for each of the four developed plotsor housing typed identified above are detailed below. All costs excludeprices of land, surveys and administration.

(1) Completed Core-House Unit

This has a 30m core house unit with one room, cooking areaand a w.c./shower. The lot has individual connection to water-borne sewerage and piled water supply with full reticulation.Roads are bitumenized and provided with stormwater drainage.Street lighting and overhead power distribution lines are provided.

Costs(Rand)

Dwelling Unit (core-house) 800Sewerage 360Water 76Roads and Drainage 100Street and Lighting 70

Sub-Total 1,406

Engineering at 7% of Sub-Total 98Contingencies at 30% of Sub-Total 422

Total 1,926US$ (equivalent) (2,889)

(2) Site and Services - Fully Developed

This has a sanitary core consisting of a w.c. and showerprovided on each lot. Roads are gravel surface and the restof the services are the same as for (1).

ANNEX 12Page 4

Costs(Rand)

Sanitary Unit (w.c./shower) 137Sewerage 360Water 76Roads and Drainage 55Street Lighting _70

Sub-Total 698

Engineering at 7% of Sub-Total 49Contingencies at 30X of Sub-Total 209

Total 956(US$ equivalent) (1,434)

(3) Site and Services - With Comunal Services

This is similar to (2) but does not have individual sanitarycores on each lot. Communal sanitary units with waterbornesewerage and piped water supply are shared: 1 w.c. for every4 lots and 1 water standpipe for evey 25 lots. Roads are graveland earth; street lighting is provided.

Costs(Rand)

Sewerage: 1 w.c./4 dwellings 255Water: 1 standpipe/25 dwellings 24Roads and Drainage 55Street Lighting 21

Sub-Total 355

Engineering at 7% of Sub-Total 25Contingencies at 30% of Sub-Total 106

Total 486(US$ equivalent) (729)

ANNEX 12Page 5

(4) Site and Services - Minimal(Typical lot from proposedsite and services areasL, S, V, W)

This has no waterborne sewerage but an aqua privy unit isinstalled on each lot and a skeletal water reticulationsufficient only for one standpipe for every 25 lots isprovided. Roads are gravel and earth. Street lighting is

provided.

Costs(Rand)

Sewerage: aqua privy installed 120Water: 1 standpipe/25 lots 37Roads and Drainage 50Street Lighting 25

Sub-Total 232

Engineering at 7% of Sub-Total 16Contingencies at 30% of Sub-Total 70

Total 318(US$ equivalent) (477)

ANNEX 13Page 1

BOTSWANA

FRANCISTOWN URBAN DEVELOPMENT PROJECT.

Monitoring Project Progress

In order to assist the Government and IDA to assess the progressbeing made or problems arising during project implementation, the ProjectCo-ordinator will be required to submit quarterly reports consisting of acompleted version of the table below and a brief evaluation note based onthat table.

ANNEX 13page 2

P3anmed suantity ot Actual Work Sl2Jipgp or Work feasons for Action BeingWork that Quart Dane Ahed of ehdylo Slippape Takin

1. Preconstruction

-Detailed engineering-Tender preparation, letting and

review-Awarding of Contracts

2. Primary Infrastructure

-Water-Electricity-Roads _-Sewerage

3. Community Facilities

-Council and Ward offices-School-Health clinics-Market

4. Servicing of Industrial, CoMMercialand High-Cost Residential Land

(i) Comrercial Land-

-ha serviced-ha leased-ha on which construction

is underway

(ii) Industrial Land

-ha serviced-ha leased-ha on which construction

is underway

(iii) High-Cost Housing

-plots serviced-plots leased-plots with bousing umder

construction

5. Low-Cost Residential Development

(i) Sites and Services

-plots serviced-plots allocated-number and amount of

materials loans given-houses under constructionhouses completed

(ii) Traditional Plots

-plots serviced-plots allocated-houses under construction-houses completed

(iii) Upgrading

-ha. upgraded

BOTSWANAFRANCISTOWN REGIONAL TOWN DEVELOPMENT PROJECT

FRANCISTOWN TOWN COUNCIL ORGANIZATION PLAN

FRANCISTOWN TOWN COUNCIL A COMMITTEES

I| Toum Cberk's Olffke

Admin stive Treawsry Education Health Welfe Plnning& BBulding Town seie Stors Division Enginering OivisonHousing Divisio Division Division Division Control iwDws Soe DivisionEni ig Divisio

- Legl Affairs -Utilitits Accounts -Prifry School - SCial Servcs - Planning -buniripW< ktpie - Central Storns- Regist -Geral Accounts Education - Public Health & - Architecture/ (includirq HwkingiStnt - Livestock Pound - Sanitation Services- Ward Admninistrtion -Revre Accounts Family Welfre Clinic Building Control VsdeintNO - Streets & Roads- Se-n_Hp Housing - Heath Inspection -Treditionel See Garden - Mectanical WorkshoP

Agency - Camnegeries &aPrkss - Buildir.sWorks- Publicity Bureeu Abttow - werow

- sw"wnkeg pow ~~~~~~~~~~~~~- Electricity- Fire S svioW

World Bank-7822

BOTSWANA

FRANCISTOWN REGIONAL DEVELOPMENT PROJECT

CONSTRUCTION SCHEDULE BAR CHART

ITEM YEAR 1973 1974 1975 1976 1977DESCRIPTION OF WORK__ _ __ __ _ _ __NO. QUARTER 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1 CIVIL ENGINEERING WORKS _ _ _ _ _

2 BUILDING WORKS _ - _ _

3 ELECTRICAL WORKS _ _ _

4 BUILDING MATERIALS =

5 SITE AND SERVICE SELF HELP HOUSING

TEHNICAL ASSISTANCE6 IESUPERVISION

Design and preparation of contract docurnents

____ Tendering and adjudication

* _ Construction or supply

_u y um _ _Technical assistance and site supervision World Bank-7905(R)

- ------ N---

c -t - -. .; -. , .0 g_; ) z ° ;-'-'-'-*-'-'-'-'P,@,F' ' oZq ' = - ---

i .3..;.--U ... t . -( .i,S>8

Ii-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-t

o -. -

._.j \

.4- '- --

, A) 1 , S

t)3 ~ -'

'I3

r

:

r

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rKo~o~NE ,,,- i Z AMBA ' '"

/ 7 /N ~~~s ..........,.-.-. --.

's. ' - t/ 8 - -' , ' ' ' -, ' BO ,ANAT' A-

1 CHOSE 9G \. N 'RHR REGNNATIONAL. PARK - \

....... --- Ro4 ... e. t;;.s..

CHOBE |DISTRICT "~ '- - ,, R, ---

-19, .............>A

sS) \\ - - _, _ . < 0A . . . .. .....

W 7DI~ -- 0- ' i-0i

RV NGAMILAND

DITRC t GiwD/Me Tumb

~~~~D I S T R I C T ZeDw t /SHLRK . .................

i:2:0' ,JE PHOEIX

ANGGLA ,- M FRCA Not.

r ~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~ s , Kcsone ...... l67~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~......

X~~~~~~~~~~~~~~~~~ TX Gooo 27 -~ lt

Z ' Froncestown W~~~~.. ............ H/vn >tolsrapd ,> eow O UsLt/§ liI

2 MW.. Hx E PS ON ooopy G_o

G H Ae N Z I cis O.D ES LA./XvTett*t

| ( .r - - .. 20° To Goborones/( 27. > t . 2f\. -

IBRD 10513

-- ~~~~~~~~~~~~ ~ ~~TO BuIawaoyo ANGO ZMI -. '-. o

- < T X | /\ .J .NAM|r A

.13

\=- - - - - - =\ k/ : .:ILAND

BTRS AANCA 1OTHO

Teb-uder-re- Mhun -n(n p do

EXiSTING LAND USE

RESIDENTIAL To Gaberones - p- t=Permanent ,\

EL---=-=-=-==B Traditional B -

L llndustrial & Storage N. \

EZ - Government & Community ROADS N > ___ i~ \

H Hospital Major, Surfaced !) PS Primary School --- Mojor, Unsurfaced I

SS Secondary School Minor, Surfaced I \

E TlIZCommerci. --- Minor, Unsurfaced >_\

EZZ IOpen Space -.- Roilwoy -Railwa

O 1/2 1

Miles $, . ~~To Gaberones

p~~~~~~~~~~~~~~~~~~~~~UY17

IBRD 10514JULY 1973

BOTSWANAFRANCISTOWN

PROPOSED URBAN STRUCTURE PLANNINGRESIDENTIAL OPEN SPACE

='o,H,gh Cost | |Industrial & Storage | ,.-|General

/= Med,um Cost . Central Business Local

/ Low Cost . SCHOOLS. ROADS

Site -Sersice =• Pr,n,ary, proposed - Primary

= Traditional SS Secondary, ex,shng ---- Pr,mary Reserve

TT Teacher Trainmng, - Secondary Nexistg

To Nob.

0 ~~~~~~~~~~~~~~** ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ B0TS

~~~~~~~ ~~~~~~~~~~~~~ Or. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ AO

3 I _ 00 O~~~xxx,r5~~flooI

s s PS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ oooe

~~~~~~~~~~ " ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ HSIA

tko~~~~~~~~~~~~~~~~~~~~~~~~~I

bO

El \ f1ih]x{t

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -~~~~~~~~~~~~~~~~~~_ _ _ _ _ _ _ I t r~~~~~~; _ _ _ _ __t i

__ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __L i_

_ _ _ _ _ __ _ _ _ _ _ _