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Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need,
National Workshop on Land PoolingFeb 2-3, Kathmandu
Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, Nepal’s urbanization, infrastructure need, and prospect of LP as a financing tool and prospect of LP as a financing tool and prospect of LP as a financing tool and prospect of LP as a financing tool
Mahendra Subba
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Urban System: Settlement DistributionUrban System: Settlement DistributionUrban System: Settlement DistributionUrban System: Settlement Distribution
Urbanization is
marked by emerging
urban corridors,
development of hill
valleys, regional
cities, intermediate
towns, small towns
and market centers.and market centers.
26% out of 217
municipalities has
population greater
than 50,000
Urbanization level is
expected to cross 50
% mark by 2025
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SN Items Deficit
(NPR in m)
New Demand
(NPR in m)
Total
(NPR million)
A Hard cost: Basic urban infrastructure
1 Urban Water Supply (piped water supply) 19,177 14,537 33,714 (1.4%)
2 Urban Sanitation (Toilet, Sewerage, Storm Water Drainage) 449,484 357,287 806,771 (32.9%)
3 Solid waste management (Access to SLFS) 1,960 1,509 3,469 (0.1%)
4 Urban Transportation (upgrading, new road, bus park, street
light)
817,961 783,146 1,601,107 (65.3%)
Urban Investment Need for 217 municipalities (2016-2031): NUDS
light)
5 Urban Energy (Household connection to electricity) 2,350 1,859 4,209 (0.2%)
6 Municipal office building 3,356 3,356 (0.1%)
Sub-Total 1,290,932
(52.6%)
1,161,694
(47.4%)
2,452,626 (100%)
B Strategic infrastructures to unleash dev potential—including to
cater to cost of specialized needs of provincial capitals (@ 25%)
613,157
C Soft cost: Project appraisal, design, institution development,
community resilience, land provisioning (@22%)
539,576
Total 3,605,359
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Expectation of National Aspiration Expectation of National Aspiration Expectation of National Aspiration Expectation of National Aspiration
• Graduation of Nepal to Developing Country by 2022 from the present status of Least Developed Country (Graduation Approach, NPC, 2014)
• GNI required to increase from USD 720 (2015) to USD 1502 (2021)
• Investment need of NPR 9,697 billion (at constant price)—where share of service • Investment need of NPR 9,697 billion (at constant price)—where share of service sector (71%), industrial (19%), and agriculture (10%). Investment is proposed to come from the private sector (69%) and the government (31%).
• Nepal to become an inclusive, equitable, and prosperous middle-income country by 2030 (SDGs, 2016-2030, NPC, 2015)
• GNI required to increase to USD 2,500 (2030) from USD 772 (2015).
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Urban Sector National Resource AllocationUrban Sector National Resource AllocationUrban Sector National Resource AllocationUrban Sector National Resource Allocation
Unit 2013-2014 2016-2017
Government Annual Budget NPR in b 516 1,049
Urban Dev Sector Budget NPR in b 20
(3.9%)
59
(5.6%)(3.9%) (5.6%)
Urban Sector Budget per
Capita (available)
NPR 4,421 4,725
Urban Sector Budget per
Capita (needed)
NPR 13,136
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Total Damage and Loss NPR 706 b
Budget (2016-2017) NPR (b) %
Implications of Implications of Implications of Implications of GorkhaGorkhaGorkhaGorkha Earthquake (2015) on Earthquake (2015) on Earthquake (2015) on Earthquake (2015) on resource allocationresource allocationresource allocationresource allocation
Budget (2016-2017) NPR (b) %
National 1,049
Capital 312 29.7
Reconstruction 141 13.5 (45 % of Capital)
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National Policy: NUDS (2017)National Policy: NUDS (2017)National Policy: NUDS (2017)National Policy: NUDS (2017)
Strategy Activities/Inputs
S86: Mobilize investment through
alternative financing instruments
including private sector involvement
Prepare and internalize Guidelines
for financing methods
S105: Prioritize implementation of large
scale land pooling, land banking and
land swapping schemes—as
alternative means to increase public
possession of private land
Review and augment the existing Land
Development Revolving Fund of DUDBC-
-with adequate resource
Prepare Guidelines and legal basis for
land banking, land swapping and review
the current legislation on land
development including land pooling
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Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling
Land use Area in hec Distribution
(%)
Residential 500 50
Industrial 100 10
Finance, business and offices 50 5
Community space 100 10Community space(College, school, Public Facilities (Bus park, Tele Communication Center,
Electricity Sub-Station, Site for water reservoir, waste water treatment plant,
solid waste transfer station), Public Event and Exhibition Ground, Shopping,
recreation and leisure, stadium and playground, Multi-purpose town hall,
religious institution, fire station, police station, vegetable market)
100 10
Green open space 50 5
Road 200 20
Total 1,000 100
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Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling
Infrastructure Quantity Rate (NPR) NPR (m)
Road (with 9 m av) 222 km 20 m/km 4,440
Sewerage 222 km 15 m/km 3,330
Storm water drainage 222 km 10 m/km 2,220
Water Supply 30,000 hld 30,000/hld 900
Sanitary landfill site 30,000 hld 1,000/hld 30
Street lamps (50 m int) 4,440 lamp 100,000/lamp 444
Electricity 30,000 hld 5,000/hld 150
High speed internet 30,000 hld 7,000/hld 210
Telephone 30,000 hld 5,000/hld 150
11,874
(USD 120m)
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Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling Development and Financing Prospect from Land Pooling
• Total infrastructure development cost of NPR 11.9 billion is to be financed by
• government and local bodies’ contribution (10%)
• sale of 150 hectares of industrial, business and office enclave land (90%)
• Estimated sell value of NPR 40 million for each individual industrial-business • Estimated sell value of NPR 40 million for each individual industrial-business plot of 5,000 sqm—totaled 300 plots recoups investment cost.
• 100 hectares of community space also generates additional income.
• 250 hectares of public land including road (200 hec) and open space (50 hec) created.
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Urban Development Programs and Share of LP Urban Development Programs and Share of LP Urban Development Programs and Share of LP Urban Development Programs and Share of LP
SN Program Direct
investment
Augmentation
from land
pooling
Total
investment
USD million
1 Urban Economic Corridor 180.4 387.7 568.1
2 City Cluster Development 262.7 343.5 606.22 City Cluster Development 262.7 343.5 606.2
3 Urban Environment
Improvement
269.1
4 Pro-Poor Urban Revitalization 59.0 9.6 68.6
5 Smart City 336.9 129.6 466.5
Total 1,108.1 870.4 1,978.5
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Concluding Remark Concluding Remark Concluding Remark Concluding Remark
• Land Pooling has a broad prospect as a financing tool for urban infrastructure development as much as for planned spatial development.
• For it to become a sustainable method, empowerment of landowners of the project area is critical—by way of establishing a project implementation mechanism which ensures creation of project implementation mechanism which ensures creation of project fund with equity shares of participating landowners, government, municipality and other stakeholders in proportion to their contribution.
• This is to enable efficient management of financial and land resources—for enhanced social and economic benefit of participating community and landowners.
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Thank you!Thank you!