Plan for Urban Development and Urban Good Governance

Transcription

1 Federal Democratic Republic of Ethiopia PLAN FOR ACCELERATED AND SUSTAINED DEVELOPMENT TO END POVERTY (2005/ /10) Plan for Urban Development and Urban Good Governance December 2007

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3 Federal Democratic Republic of Ethiopia MINISTRY OF WORKS AND URBAN DEVELOPMENT PLAN FOR ACCELERATED AND SUSTAINED DEVELOPMENT TO END POVERTY (2005/ /10) Plan for Urban Development and Urban Good Governance CONTENTS CHAPTER 1 INTRODUCTION 1 CHAPTER 2 THE URBAN CONTEXT Urban Development in Ethiopia Urban Governance in Ethiopia Recent Achievements, Challenges and Ways Forward 7 CHAPTER 3 PLAN FOR ACCELERATED & SUSTAINED DEVELOPMENT TO END POVERTY The Broad Strategy - Growth and Poverty Eradication The Eight Elements of the PASDEP Strategy 15 CHAPTER 4 URBAN DEVELOPMENT POLICY, STRATEGIES & PROGRAMMES Urban Development Policy Strategies and Programmes 21 CHAPTER 5 URBAN DEVELOPMENT PACKAGE Development of the Urban Development Package Objectives, Goals and Implementation Strategies Pillar 1: Micro and Small Enterprise Development Programme Pillar 2: Integrated Housing Development Programme Pillar 3: Youth Development Programme Pillar 4: Development of Land, Infrastructure and Services Pillar 5: Rural-Urban and Urban-Urban Linkages 38 Page i

4 CHAPTER 6 URBAN GOOD GOVERNANCE PACKAGE Development of the Urban Good Governance Package Objective, Strategy and Guiding Principles Urban Good Governance Sub-programmes 41 CHAPTER 7 IMPLEMENTATION SUPPORT International Development Support Monitoring and Evaluation Intervention Support Areas 56 TABLES Table 1. Estimated Urban Population, July Table 2. Numbers of Cities and Towns by Region 3 Table 3. Legal and Institutional Framework for Cities 5 Table 4. National Capacity Building Programme - 14 Sectors 8 Table 5. Urban Development Policy 8 Guiding Principles 20 Table 6. Urban Development Policy 5 Intervention Areas 21 Table 7. Goals of the Urban Development Package 26 Table 8. Micro & Small Enterprise Programme MDG Goals and Targets 28 Table 9. Projected Financing by MSE Development Programme Component 29 Table 10. IHDP Housing Production Targets by Region 31 Table 11. Integrated Housing Development Programme MDG Goals and Targets 31 Table 12. Youth Development Programme MDG Goals and Targets 34 Table 13. Sources of Finance for the Youth Development Programme 34 Table 14. Youth Development Programme Construction Costs 35 Table 15. Land, Infrastructure & Services Development MDG Goals and Targets 37 Table 16. GTZ s Urban Governance & Decentralisation Programme 55 FIGURES Figure 1. The Urban Development Policies, Strategies & Programmes 23 Figure 2. UGGP Major Guiding Principles 40 Figure 3. The CBDSD s Four Funding Windows 52 Page ii

5 ABBREVIATIONS CBDSD Capacity Building for Decentralised Service Delivery Project MSEDA Micro and Small Enterprises Development Agency CSA Central Statistical Agency MWUD DD Deepening Decentralisation NGO Non Governmental Organisation EB Ethiopian Birr PSCAP Public Sector Capacity Building Programme Support Project ECSC Ethiopian Civil Service College PASDEP Plan for Accelerated and Sustained Development to End Poverty 2005/ /10 EFY Ethiopian Calendar Financial Year - see below RELG Restructuring and Empowering Local Government GDP Gross Domestic Product SDPRP Sustainable Development and Poverty Reduction Programme GTZ German Technical Cooperation SNNP Southern Nations, Nationalities and Peoples IDA International Development Association TA Technical assistance ICT IHDP IULIS KfW Information and Communications Technology Integrated Housing Development Programme Integrated Urban Land Information Systems Kreditanstalt fuer Wiederaufbau (German Development Bank) TVET UDF UGDP UGGP Technical and Vocational Education and Training Urban Development Fund (funded by KfW) Urban Governance and Decentralisation Programme Urban Good Governance Package MDG(s) Millennium Development Goal(s) UNFPA United Nations Fund for Population Activities MoFED Ministry of Finance and Economic USD United States Dollar Development (federal) MoR Ministry of Revenue YDP Youth Development Programme MSE Micro and Small Enterprise Exchange rates used (as at end July 2007) Ethiopian Birr = US Dollar $1.00 The Gregorian and Ethiopian calendars are used throughout this document. The preceding abbreviations used are: GC = Gregorian calendar, EC = Ethiopian Calendar. The Ethiopian calendar year 2000 starts on 11 September of the Gregorian year The Ethiopian Financial Year commences on 1 st Hamle (8 th July) and ends on 30 th Sene (7 th July) each year. In government documents the financial year 1 st Hamle GC 1998 (EC 2006) to 30 th Sene GC 1999 (EC 2007) is referred to as the Ethiopian Fiscal Year (EFY) Page iii

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7 Chapter 1 INTRODUCTION

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9 CHAPTER 1 INTRODUCTION The Plan for Accelerated and Sustained Development to End Poverty (PASDEP) is Ethiopia s guiding strategic framework for the period GC 2005/06 to 2009/10 (EFY ) The PASDEP is the second phase of the process begun under the Sustainable Development and Poverty Reduction Programme (SDPRP) GC 2001 to 2003/04. In addition to SDPRP strategies related to human and rural development, food security and capacity building, PASDEP embodies some bold new directions. Foremost among these is a major focus on economic growth, the urban agenda and scaling up efforts to achieve the Millennium Development Goals. In order to pursue these new directions, an urban development policy was developed and two urban packages - of programmes, sub-programmes and projects - were designed to implement the government s PASDEP strategies: the Urban Development Package and the Urban Good Governance Package. This report aims to summarise all the urban policies, strategies and programmes developed to support the government s Plan for Accelerated and Sustained Development to End Poverty. It will provide a short and clear description of the foundations underpinning urban policies, strategies and programmes. In addition it will examine the directions taken and goals set for Ethiopia s cities and towns as a result of the policies, strategies and programmes adopted. CHAPTER 2 Provides a brief overview of the main characteristics of urbanisation in Ethiopia, the institutional framework for urban governance, and the main achievements during the period before the start of PASDEP. CHAPTER 3 Outlines the main strategies and assumptions of the government s Plan for Accelerated and Sustained Development to End Poverty. The linkages between PASDEP and the urban strategies and programmes subsequently developed are highlighted. CHAPTER 4 Introduces the Urban Development Policy, the main strategies and guiding principles that flow from it, as well as the two main Packages developed to implement the government s PASDEP and the Urban Development Policy. CHAPTER 5 Provides the principle details of the Urban Development Package that contains the main urban investment projects. CHAPTER 6 Provides the main details of the Urban Good Governance Package that contains the institutional framework that supports the Urban Development Package investments and helps to make them sustainable. CHAPTER 7 Presents information on other relevant matters such as international development cooperation, monitoring and evaluation, and identifies those areas for financing, technical assistance or other support interventions. Page 1

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11 Chapter 2 THE URBAN CONTEXT Satellite image of Dire Dawa

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13 CHAPTER 2 THE URBAN CONTEXT 2.1 Urban Development in Ethiopia Regional State or Charter City Ethiopia s total population was estimated in 2007 at 81.2 million 1 and is projected to reach million in 2050 making Ethiopia the 10 th largest nation in the world. Addis Ababa, the national capital, is a true primate city - its population of about 3 million 2 is 10 times larger than the second largest city in the country, Dire Dawa. Addis Ababa contains about 25% of the total urban population. 820 (or 89%) of the total of 925 settlements classified as towns have a population of less than 20,000 (see Table 1. and Table 2. ). Currently, only 16.0 % of the country s total population or about 13.0 million people live in urban areas. Table 1. ESTIMATED URBAN POPULATION, JULY Up to 4,999 5,000 to 19,999 Population by size of urban settlement 20,000 to 49,999 50,000 to 99, ,000 to 200,000 Above 200,000 TOTALS Amhara 299, , , , , ,001 2,298,997 Oromia 561,206 1,204,387 1,002, , , ,525 3,691,279 SNNP 237, , , , ,300 1,338,005 Tigray 97, , ,173 68, , ,999 Somali 77, , ,120 71, , ,456 Afar 43,974 64,225 23, ,999 Benshangul/Gumuz 18,978 24,144 20,879 64,001 Gambela 10,714 5,672 32,613 48,999 Harari 127, ,000 Addis Ababa 3,059,000 3,059,000 Dire Dawa 14, , ,000 Total 1,128,057 2,910,327 2,421,823 1,020,501 1,194,185 3,795,699 12,688,735 % of total 11% 23% 19% 8% 9% 30% 100% Source: Central Statistical Agency (CSA). Statistical Abstract January Ethiopia s urban growth rate of 4.0 % is not the highest in Africa, but it is much higher than the 3.2 average for the continent and the same as the average for least developed countries 4. The high rate of population growth and rapid urban growth United Nation s Fund for Population Activities, State of the World Population Report 2007 This figure is based on population projects provided by the Central Statistical Agency based on 1994 census data. Some estimates have put the current population in excess of 4 million. Statistical Abstract CSA January A national census was conducted at the end of May Summary results are expected in early Ibid. The UNFPA 2007 Report estimates the average urban growth rate for Africa at 3.2%, Asia 2.4%, Latin America 1.7% and Arab States at 2.8% Page 2

14 combined with the high prevalence of urban poverty suggests a rapidly growing number of urban poor. Disaggregation of the national growth rate so as to identify the respective contributions of the urban and rural economies shows that 66% of GDP growth is provided by the urban economy, while rural growth contributes 40%. This compares to a sub-saharan African average for urban contribution to GDP of 79% 5. Thus, although the urban sector is very important in Ethiopia, there are indications that it could be performing better. Table 2. NUMBERS OF CITIES AND TOWNS BY REGION Regional State or Charter City up to 2,000 2,000 to 4,999 Population by size of urban settlement 5,000 to 19,999 20,000 to 49,999 50,000 to 99, ,000 to 200,000 Above 200,000 TOTALS Amhara Oromia SNNP Tigray Afar Benshangul/Gumuz Gambela Somali Harari 1 1 Addis Ababa 1 1 Dire Dawa Total % of total 18% 37% 34% 9% 2% 1% 0% 100% Source: Central Statistical Agency. Statistical Abstract January Ethiopia s urban centres are characterised by a poorly developed economic base, a high level of unemployment and a worrying incidence of poverty and slum habitation. Urban unemployment is estimated to be 16.7% - and up to 28.6% in Addis Ababa. The overall urban unemployment rates as registered in the Urban Biannual Employment and Unemployment surveys of October 2003 and April 2004 were 26.2% and 22.9% respectively. Addis Ababa showed a decline in unemployment: 32.1% (2003) to 29.1% (2004) to 28.6% (2006) 6. Although the level of urban unemployment is still of concern, and a focus for PASDEP s urban programmes, it has been reduced significantly over the last 4 years. 5 6 ( ) The World Bank. Christine Kessides. October The Urban Transition in Sub-Saharan Africa: Implications for Economic Growth and Poverty Reduction. Data on urban unemployment is taken from the Report on the 2006 Urban Employment Unemployment Survey. July CSA Bulletin 373 Page 3

15 A key feature of the urban sector in Ethiopia is the prevalence of the informal economy. In early 2000 the urban informal sector accounted for almost 40% 7 of urban employment. Calculations of gross value of income in different informal industries indicate a significant rise in the share of the informal sector between 1996 and 2002 (from 1.6% to 8%). This improvement can be attributed to the absorption of more workers into the informal sector following specific liberalisations in the economy Nearly 40% of the nation s urban dwellers live below the poverty line. An indicator of the magnitude of urban poverty is the proportion of the urban population that lives in slums about 70% of the urban population is estimated to live in slum areas. Although it should be noted that one reason the percentage is so high is because slum conditions are widely dispersed within the city, rather than being concentrated in homogeneous low income areas. Improving the lives of slum dwellers is one of the best ways to reduce urban poverty. Achieving Millennium Development Goal 7, Target 11 improving the quality of lives of slum dwellers is a major challenge. Studies made in the last five years conclude that only 30% of the urban housing stock is in good or fair condition. Inadequate shelter, combined with poor sanitation; overcrowding and a high proportion of vulnerable women, youth, children, elderly and destitute with very low incomes, results in a high risk of disease and a poverty trap for many urban residents. 2.2 Urban Governance in Ethiopia THE INSTITUTIONAL FRAMEWORK FOR URBAN GOVERNANCE Ethiopia had a tradition of centralist government structures until Municipal structures were established in some cities, but the mayors were centrally appointed and municipalities were basically treated as branches of central government. When the current government came to power in 1991 it proclaimed a decentralised form of government and developed a constitution that established a Federal Democratic Republic, consisting of: Nine Regional States 8, The federal capital Addis Ababa, and The special administrative region of Dire Dawa. The government structure has four tiers federal, regional, woreda (or city administration/government) and kebele (neighbourhood). The nine regional states have their own constitutions. The country has introduced a dramatic change in terms of its traditions of governance. This legal framework has enabled more participation of the regional states in matters that concern them. 7 8 CSA 1996, 2003 Afar, Amhara, Benshangul/Gumuz, Gambella, Harari, Oromia, Southern Nations, Nationalities and Peoples (SNNP), Somalia and Tigray. Page 4

16 In the past, most urban areas were governed by a parallel system of municipal government in which institutional structures, rights and responsibilities were assigned in legislation dating from Under the highly centralised Derg regime (GC 1975 to 1991), Ethiopia s municipalities were marginalised and did not function as independent local authorities. However, since 2000 national decentralisation policies have formed part of a large scale reform of government resulting in the creation of institutional and legal frameworks for urban local government authorities. The objective has been to create and strengthen urban local government that will ensure public participation, democratisation; and enhance decentralised service delivery through institutional reforms, capacity building, systems development and training. In most regions, the Bureau of Works and Urban Development is responsible for urban management and development issues within the Regional government. All nine Regional States have adopted City Proclamations (see Table 3. below) creating urban local government (or city) authorities with an urban governance model that follows the elected council, elected mayor, Mayor s Committee and city manager system. Table 3. LEGAL AND INSTITUTIONAL FRAMEWORK FOR CITIES Addis Ababa City Government was established by the Addis Ababa City Government Revised Charter Proclamation 361/2003 (EC 1995). Dire Dawa City Administration was established by federal Charter Proclamation 416/2004 (EC 1996). Amhara Regional State: Amhara passed its first City Proclamation No. 43 in 2000 (EC1992). Urban reform in Amhara Regional State is now guided by the Revised Proclamation for the establishment, organisation and definition of powers and duties of urban centres in the Amhara Region, No. 91/2003 (EC 1995). Oromia Regional State passed its first City Proclamation as no. 65/2003 (EC1995). The revised City Proclamation 116/2006 (EC 1998) now guides the urban reform process in Oromia Regional State. Southern Nations Nationalities and Peoples Regional State passed its first City Proclamation as no. 51/2002 (EC1994). Urban reform in SNNP Regional State is guided by the Revised Proclamation 103/2006 (EC 1998). Tigray Regional State: Tigray s first regional City Proclamation was no. 65/2003 (EC 1995). Urban reform in Tigray Regional State is guided by the Tigray revised City Proclamation 107/2006 (EC 1998). The five Regional States of Afar, Benshangul/Gumuz, Gambela, Harari and Somali have, in GC 2006/07 (EC 1998/99) developed legal and City Proclamations to establish local urban government authorities. At federal government level responsibility for matters relating to urban development lies with the 10, and for matters related to rural development with the Ministry of Agriculture and Rural 9 10 Decree No. 1 of GC 1942, Proclamation No. 74 of GC 1945 The MWUD was created in October GC 2005 (Meskerem EC 1998). Previously the Federal mandate for urban development matters lay with the Ministry of Federal Affairs. Page 5

17 Development. The Ministry of Capacity Building is responsible for the District Decentralisation Programme that aims to build capacity of woredas. A total of 925 urban settlements 11 are categorised as towns by the Central Statistical Agency (CSA). About 84 of these have been granted status as urban centres in terms of the Regional City Proclamations referred to above; others mainly small settlements - have not. These smaller urban settlements function within and under the authority of Woredas, pending their being granted formal separate status under the region s urban legislation. In a number of regions these are referred to as emerging towns. In relation to urban development a number of other federal Ministries and institutions hold responsibility for specific service delivery activities: The Ministry of Finance and Economic Development, The Ministry of Capacity Building The Ministry of Water Resources for provision of water and sewerage services. The Ministry of Health for sanitation and public health services. The Ministry of Education for public education services. The Ministry of Trade and Industry for micro and small enterprise support systems, industrial policies and strategies and job creation. The Environmental Protection Authority for environmental policies, strategies, law and regulation. The Ethiopian Civil Service College serves as a centre of excellence for delivery of urban management education and training to the civil service. The Ethiopian Electricity Power Corporation and the Ethiopian Telecommunications Corporation are responsible for the provision of power and telecommunications (including internet) services in both urban and rural areas PROFILE OF URBAN GOVERNANCE During EC 1998 (GC 2006) an assessment was made and a profile assembled of the state of urban governance in Ethiopia s cities. The conclusion reached was that, while many of the key elements of the institutional framework (policies, laws, regulations) for urban good governance were in place, much work remained to implement and expand the institutional framework and further develop organisational capacities. Some of the actions required are sequential in nature; for instance, although the City Proclamations enacted by regions incorporate mechanisms for election of mayors and councillors, in most cases these positions are filled by appointed rather than elected representatives. Clearly, many aspects of accountability and transparency cannot be fully realised until urban executive leadership is fully representative. Until a greater level of efficiency in the urban bureaucracy and representative political leadership is in place it is not possible to fully ensure transparency, accountability and the rule of law. 11 Statistical Abstract CSA January 2007 Page 6

18 The profile of the existing state of urban governance was carried out by assessing the governance situation in terms of the extent or degree: Of decentralisation and local autonomy in decision-making; To which urban centres deliver services efficiently and effectively; That accountability and transparency exist in the operations of urban centres; Of public participation and the resulting sustainability of city/town investments; That the rule of law and security support social welfare and economic development in a way that is equitable and effective. The solutions based on the assessment have been incorporated in both the Urban Development and Urban Good Governance Packages. 2.3 Recent Achievements, Challenges and Ways Forward The government initiated its focus on Ethiopia s cities and towns after GC 2000 (EC 1991). During the following 5 years the focus was on developing institutional and organisational frameworks and on capacity building. The government has given increased attention to urban development and management in the last 2 or 3 years by including an urban agenda as a key component of its Plan for Accelerated and Sustained Development to End Poverty 2005/06 to 2009/10. The main emphasis during Sustainable Development & Poverty Reduction Programme (SDPRP) period 2000/01 to 2004/05 (EFY 1993 to 1997) which preceded PASDEP, in terms of urban development, was the development of policy, legal, regulatory and institutional frameworks supported by substantial capacity building efforts. Lacking was a major investment in housing, infrastructure and services 12. The main effort during SDPRP was to build decentralised good governance capacity in Ethiopia s urban centres. Progress and achievements were realised in five main areas described below URBAN POLICY, LAWS, SYSTEMS AND INSTITUTIONS The Ministry of Federal Affairs completed the development of a national Urban Development Policy. It was approved by the Council of Ministers in March 2005 (Megabit 1997). The implementation of the Urban Development Policy has formed a key starting point for development of the two PASDEP urban Packages. By mid GC 2007 (end EC 1999) all nine Regional States had passed proclamations establishing urban local government authorities with decentralised powers. These City Proclamations have provided the institutional and organisational framework that has been adopted by about 84 of Ethiopia s cities to date, including all those that are large- or medium-sized. In GC 2003 (EC 1995) the Addis Ababa City Government Revised Charter Proclamation 361/2003 (EC 1995) was promulgated, which created the current legal and institutional framework for Addis Ababa City Government. In GC 2004 (EC 1996) similar federal legislation was passed 12 Except in Addis Ababa. Page 7

19 establishing Dire Dawa City Administration. During GC 2003 to GC 2005 (EC 1995 to EC 1997) Addis Ababa City Government initiated and completed a comprehensive reform process. Institutional (legal, regulatory, etc.) frameworks have also been needed to govern use of and rights pertaining to valuable resources and national assets such as urban land. The Ministry of Federal Affairs passed through Parliament the Urban Lands Lease Holding Proclamation 272/2002 (EC 1994). The legislation aims to develop optimum conditions in which leasehold tenure will become the dominant urban land holding system, and to expedite the process of permitting and holding urban land leases. Subsequently, the Ministry provided prototype regional urban land lease regulations to regional governments. A major review of land management, administration and regional urban land markets was completed in The Condominium Proclamation 370/2003 (EC 1995) was enacted and established the legal framework for condominium property title in Addis Ababa and Dire Dawa. Federal legislation with significant importance for city managers and residents was adopted for Expropriation of Landholdings for Public Purposes and Payment of Compensation, Proclamation No. 455/2005 (EC 1997). The Ministry participated in and supported the Woreda-City Government Benchmarking Survey (GC 2005), and the Urban Sector Millennium Development Goals Needs Assessment (GC 2004); the latter document formed an important input for development of the two urban PASDEP Packages. October 2005 marked a significant milestone in the government s national and urban development initiatives. The was created to bring a stronger focus to urban development, taking over responsibility for urban affairs from the Ministry of Federal Affairs. At the same time the government s development of the five year Plan for Accelerated and Sustained Development to End Poverty explicitly embraced an urban agenda that recognised the current and potential contribution of towns and cities to national economic and social development. During late 2005 and the first half of 2006 the new Ministry developed the Urban Development Package and the Urban Good Governance Package that build on the urban development policy adopted in March 2005, for implementation as part of the government s overall PASDEP CAPACITY BUILDING FOR FEDERAL, REGIONAL AND CITY AUTHORITIES In 2001, the government translated its Capacity Building Strategy and Programme Framework into a comprehensive National Capacity Building Programme improving institutional and human capacity in 14 sectors as illustrated in Table 4. Table 4. NATIONAL CAPACITY BUILDING PROGRAMME - 14 SECTORS 1. Civil service reform 2. Justice reform 3. Urban management 4. Tax reform 5. District level decentralisation 6. Agricultural training 7. Textiles and garments 8. ITC 9. Higher education 10. Cooperatives 11. Private sector 12. Construction sector 13. Industrial training 14. Civil society Page 8

20 Chapter 7.1 (International Development Support) describes two of the capacity building programmes implemented by the government before the start of the PASDEP in 2005/06. These are the Capacity Building for Decentralised Service Delivery project (CBDSD) and the Public Sector Capacity Building Programme Support project (PSCAP). CBDSD funds had by March 2007 provided training for over 10,000 municipal and kebele councillors, technical staff and small enterprise support personnel of municipalities and federal institutions. The CBDSD has funded a wide range of initiatives at federal, regional and city levels through four investment windows. The project started in January 2003 and will end in 31 December By January 2007, out of the USD 24 million allocated for Component 2, USD 11 million worth of contracts were completed, USD 6.6 million was contracted and implementation still under way; and of the remaining USD6.4 million, about USD 4.5 was allocated for infrastructure and the remainder for some new activities. The PSCAP project is directly accessible by participating regions and involves expenditure under the same heads as the CBDSD, excluding investments for infrastructure. The Ethiopian Civil Service College (ECSC) is the national leader in providing training, research and consultancy in the urban arena. ECSC has made efforts to enhance the capacities of the federal, regional and local governments by organising needs-based postgraduate, undergraduate and short-term training as well as research and consultancy programmes. The College has a vision to be a centre of excellence for creating an effective, efficient, transparent and accountable civil service in Ethiopia SPATIAL AND DEVELOPMENT PLANNING SYSTEMS AND RESOURCES The National Urban Planning Institute carried out an assessment of its future strategic direction resulting in the development and passing by Parliament of a Proclamation 13 establishing the Federal Urban Planning Institute; Proclamation No. 450/2005. During the SDPRP period, the Federal Urban Planning Institute has provided plans and topographical maps to 50 towns. Professionals at city, regional and national levels have received training to develop regional planning units with support from South African and Chinese planning professionals. MWUD has prepared a federal Proclamation to Provide for Urban Plans. This is currently awaiting approval by Parliament. This law, the regulations and guidelines required to implement the law and the 7 planning manuals produced in 2006, support establishment of a national urban planning system ACCESS TO LAND, HOUSING, INFRASTRUCTURE AND SERVICES To a greater degree land servicing and the provision of housing, infrastructure and services has been provided from cities own resources. It is estimated that 43% of cities recurrent revenues are spent on capital expenditures. At the federal level the main objective has been to secure funding to support city level delivery of 13 Federal Proclamation 450/2005 Page 9

21 housing, infrastructure, services and facilities. This has been achieved through the CBDSD infrastructure rehabilitation fund of approximately EB 78 million (USD 8.6 million). An Urban Development Fund has been established with support from the German KfW agency. Current, the CBDSD is funding 17 sub-projects (4 each in the 4 major regions and one in Dire Dawa), with a total estimated construction cost of USD14 million (64% IDA financing and 36% from the urban administrations). The sub-projects comprise 7 roads upgrading, 6 drainage rehabilitation, 3 market centre upgrading, and 1 river bank protection. During GC 2005/06 (EC 1996/97) 18 of the larger cities developed 5-year municipal investment plans for the remaining PASDEP period. 27% of estimated capital expenditure was allocated to urban road projects, 25% to water supply with construction of housing and schools making up a further 17%. 10% of capital expenditure was allocated for rehabilitation rather than to new construction works. Regional and city governments have been taking measures to improve the delivery and management of urban land. The development and delivery of land in industrial zones for private investment in the major cities has, in particular, been encouraging, although a comprehensive evaluation of their impact remains to be done. Many cities have also been delivering land for private housing construction. Yet land development and management remains one of the areas where significant improvement in terms of governance is required. Regional governments and many city administrations have also been investing in roads, drainage systems, water, sanitation and other infrastructure facilities. Compared to the infrastructure demand in cities and towns, however, the achievements are very small. In terms of housing, regions and cities have been attempting to deliver housing to their residents, but the strategies were unclear and the achievements too small in comparison with the magnitude of the problem LOCAL ECONOMIC DEVELOPMENT Apart from Addis Ababa, where the combined housing, MSE and TVET projects were pioneered, there were a few efforts by cities in Ethiopia, during the GC 2000 to 2005 (EC 1992 to 1997/98) period to explore specific local economic development initiatives. Awassa city launched an initiative to develop a local economic development strategy as part of a Cities Alliance funded proposal. Much emphasis during the SDPRP period was on establishing operational city administrations created by the new regional city proclamations. It was only towards the end of the SDPRP that some of the larger cities started to focus on job creation, MSE development and the informal sector, although initiatives to create industrial zones and attract formal larger scale investment were common in the regional capitals ADDIS ABABA THE LABORATORY OF URBAN REFORM Addis Ababa City Government initiated a large number of pioneering and important strategies and projects during the SDPRP period. These include: new and innovative initiatives in integrated housing development, urban upgrading and renewal, organisational change and operational decentralisation, financial Page 10

22 management, land management, support to small and micro enterprise, job creation schemes and environmental services. The Addis Ababa Water and Sewerage Authority has completed: an EB 127 million (USD 14.1 million) investment in liquid waste disposal; an EB 403 million (USD 44.6 million) investment to improve the sewerage service and water supply in the eastern part of the city; an EB 250 million (USD 27.7 million) investment in water supply rehabilitation and works; and a further EB 411 million (USD 45.5 million) in various water supply works. Addis Ababa City Government s Office for the revision of the Addis Ababa Master Plan completed the Addis Ababa in Action: Progress through Partnership, City Development Plan (EC 1993 to 2002). Based on the achievements in Addis Ababa, the outcomes realised and lessons learned in the capital, the has led an initiative to scale-up the Addis Ababa urban agenda nationally in all Regional States and including Dire Dawa. Addis Ababa will not in future be neglected; as the nation s capital city it will continue to be a focal point for the development and implementation of national urban policies, strategies and programmes. Page 11

23 Chapter 3 PLAN FOR ACCELERATED & SUSTAINED DEVELOPMENT TO END POVERTY Addis Ababa, Micro & Small Enterprise, Concrete Block Production 2007

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25 CHAPTER 3 PLAN FOR ACCELERATED & SUSTAINED DEVELOPMENT TO END POVERTY 3.1 The Broad Strategy - Growth and Poverty Eradication DEVELOPMENT AND POVERTY ERADICATION CHALLENGES The challenges facing Ethiopia are numerous: high population growth, low productivity, structural bottlenecks, together with dependence on unreliable rainfall combine to pose significant difficulties. The different mechanisms hindering Ethiopia s progress interact with each other and constitute poverty traps that prevent the country from breaking out of a situation of low income levels combined with low productivity growth. This makes it essential to mount a major effort to accelerate growth - this forms the main thrust of the PASDEP. There has been encouraging progress in recent years in improving some basic aspects of life in Ethiopia. Since GC 1996 (EC 1988) the literacy rate has increased by 50%, the rate of malnutrition has fallen by 20%, the share of the population with access to clean water has risen to 38% and there has been a steady decline in the reported incidence of illness. National GDP growth rates have been consistently good since GC 2003/04 (EFY 1996) (see the section 3.1.2). Nonetheless, human development indicators in Ethiopia remain at low levels compared to most of the rest of the world. While there have been significant improvements during the past 10 years, the level of infrastructure coverage remains very low. The Emerging Urban Agenda: Ethiopia is currently one of the least urbanised countries in the world, an estimated 16.0% of its inhabitants living in urban areas. The contribution of urban areas to the Ethiopian economy can be approximated to the share of industry and services in GDP, as those are generally located in urban areas. On this basis, in GC 2007 (EC 1999/2000), urban areas were contributing 66% of GDP, which is lower than the sub-saharan African average (GC , EC ) of 79% of GDP growth (Kessides GC 2005). While such contribution seems low, it still represents a significant increase over the previous decade. The development of a balanced urban system offers the opportunity to increase market integration by facilitating exchange and division of labour, as well as allowing diversification in the non-agricultural sector. Further, cities offer the opportunity to deliver services more cheaply and can act as centres of growth, thereby playing an important role in poverty reduction. The creation of the in October 2005 (Meskerem EC 1998); the development and implementation of the Urban Development and Urban Good Governance Packages, which involve substantial public and private investment, support the government s strategy of growth and poverty eradication. The Integrated Housing Development, Micro and Small Enterprise Development and Youth Development Programs, described later in this document, will make a major contribution to economic development, national Page 12

26 GDP and poverty reduction, by creating jobs, investing in capital assets, infrastructure and services and increasing human capacities THE WAY OUT: MORE RAPID GROWTH A major push on growth is essential in order to have a lasting impact on poverty, and to finance the necessary social investments for human development. At historical growth rates, there is little hope of significantly reducing human poverty in Ethiopia. Calculations show that a growth rate of about 8% per annum would have to be sustained to reach the MDG of halving income poverty by This compares to an average rate of about 5% over the 10 years (EC 1985 to 1995). Secondly, without much faster growth, the revenue will not be generated to finance essential health, education, infrastructure, or other services. The MDG Needs Assessment 14, for example, estimated that Ethiopia would need to spend between 40 and 60 Billion EB (USD 4.4 and 6.6 billion) per annum on average over the next 10 years to reach the MDG targets set for This compares to total government spending of about EB 24 billion (USD 2.7 billion) in 2005/06 (EFY 1998); total budgeted government expenditure of EB 35.4 billion (USD 3.9 billion) in 2006/07 (EFY 1999) and EB 44.0 billion (USD 4.9 billion) for 2007/08 (EFY 2000). Finally, accelerated growth is the only way to break out of the self-perpetuating poverty traps described above. For all these reasons, a major push on growth is at the centre of the PASDEP for the coming five-year period. There are signs of improvement: after drought-related contraction in 2002/03 (EC 1994/95) the economy rebounded with an annual average growth of nearly 11% during 2003/ /06 (EFY ). It is predicted that the current budget year s GDP growth rate is about 10.1 %. The national economy is expected to grow at a similar rate in the next budget year. However, there remain challenges: despite the spurt of growth following the reforms of the early 1990s, this has not yet been sustained at a level that would be sufficient to reduce poverty on a large scale; the turn-around in agriculture and the rural economy is yet to be attained; and too little of the growth has been driven by the private sector. In sum, growth in Ethiopia needs to shift to a growth path that is both higher, and more self-sustaining. Progress is needed on every possible front, including: Agriculture: because it represents the bulk of economic activity and because the potential to shift to higher-valued crops has not yet been exploited; 14 Solomon Mulugeta, Mathewos Asfaw, Tesfaye Yalew. December 2004 (EC Tahsas 1997). Urban Sector Millennium Development Goals Needs Assessment: Improving the Lives of Slum Dwellers. Page 13

27 More rapid development of the modern private sector: because there is no other sustainable way to generate high growth in the long term, nor to create the millions of off-farm jobs that are needed; Exploitation of niche markets and opportunities wherever they present themselves, such as tourism, mining, and production of spices; Major expansion and diversification of exports in order to fuel growth, to widen the economic base and reduce susceptibility to shocks, to earn essential foreign exchange, and, in the longer-term, to reduce the dependency on foreign aid; Infrastructure: to better link markets and producers, to help business to lower the costs of international trade and improve Ethiopia s competitiveness, and to allow people easier access to essential services; Increase in the education and skill levels of the workforce as a basic and fundamental contribution to increased productivity; Unleashing the potential of Ethiopia s 38 million women because they represent a major under-used resource, and although they already do much of the country s work, they tend to be trapped in low-productivity occupations; Slowing the rate of population growth: because if there continues to be an additional 2 million persons per year, all other interventions will have limited impact Addressing these issues to accelerate per capita income growth forms the core of the PASDEP strategy. In urban centres, the provision of land, infrastructure and services facilitates increased private sector investment in residential, commercial and industrial property. Combined with substantial public sector investment in urban housing and a large scale micro and small enterprise development programme it is expected that urban employment and income levels will rise. This in turn will result in an increased contribution to national GDP by urban service, manufacturing, industrial and public sectors. The scaling up nationally of the Technical and Vocational Education and Training programme initiated in Addis Ababa is expected to result in an increase in the education and skill levels of the workforce HUMAN DEVELOPMENT POVERTY AND THE MDGS Tackling the non-income dimensions of poverty is central to the government s strategy. It underpinned much of the thrust of the SDPRP I, and is now the focus of a massive scaling-up effort to reach the MDGs. The MDG Needs Assessment 15 mapped out what was required to achieve the MDGs in Ethiopia. 16 The PASDEP Ibid. Given that a comprehensive MDG Needs Assessment is available, only a summary discussion is presented here. Readers are referred to the MDG Needs Assessment and background studies for more information. Page 14

28 represents the next step in implementing the strategy laid out in the Needs Assessment, by placing it in a pragmatic medium-term framework of implementation and financing. The Integrated Housing Development Programme, combined with increased provision of land, infrastructure and services are intended to contribute to achieving MDG Goal 7, Target 10: To halve, by 2015 (EC 2007), the proportion of people without sustainable access to safe drinking water and basic sanitation and Target 11 By 2020 (EC 2013), to have achieved a significant improvement in the lives of slum dwellers. The Integrated Housing Development, Micro and Small Enterprise Development and Youth Development Programs aim to contribute to achievement of MDG Goal 1, Target 1: To halve, by 2015 (EC 2007), the proportion of people whose income is less than 1 dollar per day. All Urban PASDEP programmes mainstream opportunities for women to help achieve MDG Goal 3: To promote gender equality and empower women: Target 4: To eliminate gender disparity for which an indicator is the share of women in wage employment in the non agricultural sector. 3.2 The Eight Elements of the PASDEP Strategy During the PASDEP period, Ethiopia will continue to pursue important initiatives started by the SDPRP. It will also continue to pursue the strategy of Agricultural Development Led Industrialisation, but with important enhancements that are described in the following eight elements which are key to the government s strategy for the next five years ELEMENT 1: A MASSIVE PUSH TO ACCELERATE GROWTH The growth acceleration initiative has two main thrusts: commercialisation of agriculture, and promotion of much more rapid non-farm private sector growth. Agriculture and Rural Development: The agricultural strategy revolves around a major effort to support the intensification of marketable farm products - both for domestic and export markets, and by both small and large scale farmers. The majority of this response will have to come from the private sector, (which includes millions of small farmers); a range of public investments and services is needed to help jump-start the process. Private Sector Development: The main elements of the strategy include: i. Improving the institutional framework to enable private initiative; ii. Proactively providing support to the private sector in a partnership; iii. Exploiting niche markets such as tourism, livestock, horticulture, floriculture and mining. iv. A major push to increase exports: with a target of 20% of GDP by 2010 (EFY 2003). Page 15

29 The Urban Development Package will accelerate growth and facilitate private sector development including a substantial investment in housing provision: the construction of approximately 1 million homes through private and public investment over the next 4 years combined with provision of land, infrastructure and services and the creation of 1.5 million employment opportunities for urban residents ELEMENT 2: A GEOGRAPHICALLY DIFFERENTIATED STRATEGY The government of Ethiopia has always pursued a policy of giving priority to rural areas because this is where 90% of the poor live, and because the rural peasantry forms the backbone of Ethiopia. Nonetheless it is realised that refinement of the strategy adopted in the past is needed. First, with a more differentiated approach towards the very different areas of the country; and second by taking a new look at rural-urban linkages and the urban agenda. Growth Zones and The Three Ethiopias : Ethiopia consists of at least three very different economic and agro-climatic zones: the traditionally settled semi-arid highlands, potentially productive semi-tropical valley areas, and the hot semi-arid lowlands. Each requires a different response to maximise its potential. The PASDEP will distinguish between them, particularly in agriculture, but also in the private sector development agenda. There will be a particular focus on rural growth centres, and tapping areas of high potential such as productive river valleys, areas with potential for multi-cropping, and market integration. Strengthening the Urban Agenda and Rural-Urban Linkages: It is recognised that there is a growing trend towards greater urbanisation, and that a significant part of the modern sector growth will take place in urban areas. Hundreds of small towns represent important potential future growth centres. Several pre-conditions have to be in place to realise the benefits that cities can provide, in particular the existence of well-functioning markets for land, labour and services, with efficient information flows. The government will do this in the PASDEP through five intervention areas: i. Strengthening municipal governments and administrative institutions; ii. iii. iv. Investing in essential urban infrastructure; Developing financing mechanisms that limit the demands on the public budget; Improving the regulatory and licensing environment and access to land to reduce barriers to business, increase security and encourage household asset building; and v. Increasing the availability of urban industrial land. In addition rural-urban linkages need to be strengthened to maximise PASDEP s impacts on poverty, and to take full advantage of the potential synergies. This involves integrating markets, and opening up the flows of labour and access to income-earning opportunities between towns and surrounding rural areas. The specific instruments to achieve this include improved rural access roads, building up of small rural towns, improved telecommunication access, the continued spread of general education and technical-vocational training in peri-urban areas; Page 16

30 development of small scale credit markets; and a major programme of rural electrification. A number of federal agencies contribute to scaling up public sector interventions to enhance rural-urban and urban-urban linkages. The Ministry of Water Resources, the Ethiopian and Regional Roads Authorities, the Ethiopian Electricity Power Corporation, the Ministry of Trade and Industry, the Ethiopian Telecommunications Corporation, the Ministry of Health and the Ministry of Youth and Culture are all scaling-up their activities and investment to reach Ethiopia s many small towns which have a close relationship with their surrounding rural areas as markets, and providers of administrative and other services, public and private. The Ministry s Urban Development and Urban Good Governance Packages contain specific and substantial elements in support of the five intervention areas described above in this Section ELEMENT 3: ADDRESSING THE POPULATION CHALLENGE A major effort will be made to implement the existing national population strategy and to make available services for spacing births. It is possible to make inroads at low cost through outreach services to support child spacing, and there is demonstrated unmet demand for lower growth and smaller family sizes ELEMENT 4: UNLEASHING THE POTENTIAL OF ETHIOPIA S WOMEN A massively scaled up effort will be undertaken to release the untapped potential of Ethiopia s 38 million women. Direct interventions include: (i) getting more girls into, and completing, school; (ii) improving women s health; (iii) liberating girls and women s time from the unproductive hours spent fetching water; (iv) improving rural telephony; (iv) intensifying the responsiveness to women clients of programmes designed to boost productivity; (v) reforming legislation and institutions to protect the rights of and open opportunities for women. Mainstreaming the involvement of women, as participants in and beneficiaries of all urban PASDEP programmes aims specifically to increase opportunities for women and unleash the potential of Ethiopia s urban women ELEMENT 5: STRENGTHENING THE INFRASTRUCTURE BACKBONE PASDEP investments will include: A major expansion of the road network: construction of almost 20,000 kilometres of new roads by GC 2010 (EC 2003); better maintenance so that 84 % of roads are in good condition. Expansion of water supply to reach 85 % of the population (estimated at 42% today), design for 738 towns, construction works for 514 towns and rehabilitation works for 228 towns. Power supply will be increased three-fold in the PASDEP period, with the construction of 5 major new dams, and addition of 668 megawatt of generating Page 17

31 A major telecommunications initiative is under way; this will result in a substantial increase of fixed telephone, cellular mobile and internet subscribers by 2019 (EC 2011). As described in previous sections, many infrastructure and utility services are the responsibility of other federal and regional agencies. These are playing their part in full to develop the national infrastructure backbone of roads, water, power, telecommunications and the national high-speed digital data network. Goal 7 of the Urban Development Package described in 0, Table 7. is: Ensure delivery of a total of 13,825 hectares of serviced land in all urban centres: 1,700 hectares to support the Integrated Housing Development Programme (IHDP); 4,900 hectares for micro and small enterprises development; 1,425 hectares for the Youth Development Programme; and 5,800 hectares per year for other development ELEMENT 6: MANAGING RISK AND VOLATILITY Volatility needs to be managed at three levels. At the most immediate human level, the repeated swings of households in and out of poverty, mostly as a result of crop failure and major illness, should be reduced. At the economic management level, the impact of shocks on public finances and government programmes resulting from factors such as the current oil price shock, which disrupt fiscal management, and result in the stop-go delivery of essential programmes, should be reduced. Finally, at the most aggregate national level, the volatility of GDP growth should be minimised, so that sustained improvements are made in per capita income and poverty reduction. The solutions lie in: diversification, at the household level and at the national level; irrigation, by managing water resources, at the national level; and at the household level, stabilisation and equilibration mechanisms, including: engineering stable and predictable aid flows; maintaining macroeconomic and political stability; development of a strong private sector, so less of the costs of shocks is borne by the public budget; and the selective use of mechanisms, such as stabilisation funds. Reducing urban unemployment, increasing urban incomes is important to reducing swings of households in and out of poverty. Sustainable jobs created in conjunction with business development support, improved technologies, skills and capacities will contribute to reducing potential for urban based volatility. The PASDEP urban development package aims to make a substantial contribution to sustained improvements in per capita income and poverty reduction ELEMENT 7: SCALING UP TO REACH THE MDGS The scaling-up initiatives are described in detail in the sectoral chapters of the PASDEP document and in the background studies to the MDG Needs Assessment. In summary, targets for the PASDEP period include: reducing infant mortality to Page 18

32 45 per 1000; reducing maternal mortality to 600 per 100,000; reaching a primary school completion rate of 85%; achieving close to gender-parity in primary education; halving the incidence of malaria and tuberculosis; and doubling the proportion of the population with access to potable water. The scaling-up will also include a major effort between the government of Ethiopia and its partners to increase the level of foreign aid in order to finance movement towards these internationally-agreed goals; as well as improved efficiency and service delivery, through the programmes of institutional strengthening, decentralisation, and capacity-building ELEMENT 8: CREATING JOBS In Ethiopia unemployment especially in urban areas is a serious challenge. Working age population (labour force) stood at 54 % in 2003/04. The challenges faced by the government in fulfilling the demand for increased employment progressively are two-fold: managing the dynamics of population growth and expansion of labour-intensive productive activities. This is why PASDEP's strategic emphasis is on growth: rural growth, growth of industrial output and exports, and particularly promotion of micro and small enterprise development and construction. The recent experience of the Addis Ababa City Administration in small and medium enterprise development linked with Technical and Vocational Education and Training and a low cost housing programme will be scaled up and rolled out to other towns in the country. Goal 2 of the Urban Development Package described in 0, Table 7. is: Create employment opportunities for 1.5 million urban residents in 825 urban centres during EFY 1998 to 2002 (GC 2005/ /10). 50% of beneficiaries will be women. Goal 3 of the Urban Development Package described in 0, Table 7. is: Enable the voluntary creation of 10,000 small enterprises on a sustainable basis in the construction industry. A primary goal of the urban contribution to the government s Plan for Accelerated and Sustained Development to End Poverty is the creation of sustainable jobs in all of Ethiopia s cities and towns. Page 19

33 Chapter 4 URBAN DEVELOPMENT POLICIES, STRATEGIES & PROGRAMMES Condominium housing project, Addis Ababa, 2007

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35 CHAPTER 4 URBAN DEVELOPMENT POLICY, STRATEGIES & PROGRAMMES 4.1 Urban Development Policy The main objective during the PASDEP period is to achieve the goals of the national Urban Development Policy, approved by the Council of Ministers in March 2005 (EC Megabit 1997): That Ethiopia s cities provide efficient and effective public services to residents, compliment and facilitate rural development, are models of participatory democracy and build accelerated economic opportunities that create jobs. This objective is underpinned by eight guiding principles which form the basis for an urban development strategy and supporting actions for PASDEP: Table 5. URBAN DEVELOPMENT POLICY 8 GUIDING PRINCIPLES 1. CITIES ARE ENABLED TO EFFECTIVELY FACILITATE AND COMPLIMENT RURAL DEVELOPMENT 2. CITIES ACTIVELY SUPPORT RAPID ECONOMIC DEVELOPMENT AS MARKET, SERVICE AND WHERE APPROPRIATE, INDUSTRIAL CENTRES 3. CITIES PROMOTE MODELS OF PARTICIPATORY DEMOCRACY AND INCLUSIVENESS 4. CITIES ENSURE RESIDENTS AND OTHER INVESTORS HAVE ACCESS TO LAND, SERVICES AND FACILITIES AND DECENT HOUSING. THIS GUIDING PRINCIPLE CONTRIBUTES TO BUILDING GLOBAL COMPETITIVENESS OF ETHIOPIA S CITIES 5. CITIES PROVIDE ATTRACTIVE, HEALTHY AND SUSTAINABLE LIVING ENVIRONMENTS 6. FEDERAL, REGIONAL AND CITY PUBLIC AUTHORITIES HAVE THE CAPACITY TO FULFILL THEIR MANDATES 7. CITIES HAVE DECENTRALISED GOVERNANCE SYSTEMS THAT GIVES THEM CAPACITY FOR SELF GOVERNANCE 8. INCREASED OPPORTUNITIES FOR GROWTH IN ALL URBAN CENTRES RESULT IN BALANCED GROWTH Of particular importance, and a priority of the federal authorities, will be to ensure regional equity in terms of programmes developed and funds provided. The Urban Development Policy identifies five critical intervention areas to support the overall objectives of accelerated and equitable growth: Page 20

36 Table 6. URBAN DEVELOPMENT POLICY 5 INTERVENTION AREAS 1. EXPANSION OF MICRO AND SMALL ENTERPRISES Create a strong administrative executive organisation which is an owner & coordinator giving support & leadership; solves MSE marketing problems, solves MSE leadership &skill problems; helps MSEs to solve their financial problems; solves production & infrastructural problems; and organises centres for creation of micro & small firms. 2. HOUSING DEVELOPMENT Utilise the role of housing development in urban development, in job creation and in developing the construction industry capacity (architects, engineers, contractors, etc.); expand saving centred house development; develop low-cost technologies; mobilise savings and support real-estate by investors. 3. LAND & INFRASTRUCTURE PROVISIONS Establish clear land institutions (policies, laws, etc.) and adequate provision of serviced land; ensure provision of infrastructure. 4. SOCIAL SERVICES Expand social services; education & practical vocational training in cities; medical services and recreational facilities. 5. URBAN PLANNING AND ENVIRONMENTS Establish urban development criteria, spatial and development planning. Ensure environmental protection of cities. These intervention areas formed a starting point for the development of the five pillars (or components) of the PASDEP Urban Development Package. So as to ensure that public sector investments are made in accordance with principles of urban good governance - including democratisation and capacity building - the Urban Good Governance Package was developed and is being implemented. 4.2 Strategies and Programmes STRATEGIES The urban strategy involves an approach that integrates initiatives: 1. To reduce urban unemployment by half and thereby reduce urban poverty by increasing urban income levels and income equity: support small & micro enterprise and accelerate the creation of urban based employment, particularly where this compliments rural linkages and delivery of housing and basic services, building towards a credible private sector development partner. 2. To address poor housing quality, housing shortages and reduce slum areas in Ethiopia s main cities by 50% 17 : launch a national integrated housing development programme that scales up Addis Ababa s initiative, based on lessons learned, and 17 The UN Millennium Goals Report states that an estimated 1 billion of the world s population live in slums. The MDG target is, by 2020 (EC 012), to have achieved a significant improvement in the lives of at least 100 million slum dwellers 10% of the total. Page 21

37 which integrates public and private sector investment with micro enterprise development and provision of basic services. 3. To increase access to land and basic services: ensure that there is sufficient access to land for the poor, for small and medium enterprise and for formal private sector industrial and commercial investment. 4. To strengthen urban-rural and urban-urban linkages by consolidating efforts in the larger towns and launching a small town development programme. Interventions in housing and infrastructure, in addition to being central to meeting MDG Goal 7, Target 11 also serve as key inputs for achieving MDG Goals 1 to 6 which focus on eradication of extreme poverty and hunger, achieving universal primary education, promoting gender equality and empowerment of women, reducing child mortality and improving maternal health. In general, investment in housing and infrastructure will help to reduce urban poverty through its multiplier impact on the entire economy. In particular, large scale interventions in both housing and infrastructure will help to: Create thousands of new jobs through increased demand for the products and services of the multifaceted construction, storage, transport and distribution industries as well as for the services of the wholesale and retail trades sectors. Produce improvements in housing and infrastructure that reduce the vulnerability of the urban poor to health risks, natural disaster and violence. Improve income earning capacity by facilitating the journey to work and by encouraging the development of small and micro enterprises. Contribute to growth, competitiveness and household welfare: urban infrastructure, MSE and housing development are key ingredients of growth and competitiveness. They are a basic need that are integral to household welfare. Enhance the capacity of the domestic construction industry and realise the multiplier effects on the national economy that will result PROGRAMMES The Urban Development Package answers the question WHAT is the government going to do in the next 4 years in terms of delivery of urban based public services those direct and tangible services that benefit urban (and eventually rural) communities: jobs, houses, roads, schools, clinics, water supply, etc. The Urban Good Governance Package answers the question HOW will the government deliver the public services of the Urban Development Package and all other public services those less tangible but essential attributes of government service delivery that are described in terms of efficiency, effectiveness, accountability, transparency, participation, sustainability, the rule of law, equity, democratic government and security. Together the Urban Development and Urban Good Governance Packages form an integrated and complimentary set of initiatives that comprise the government s Page 22

38 urban agenda for the implementation of the urban component of PASDEP. Both Packages have deep and strong roots in earlier reform initiatives and in a wide range of initiatives that formed a foundation for their development. The most important of these prior initiatives include: The Urban Development Package has benefited from the many initiatives of Addis Ababa City Government in the 2003 to 2005 (EFY 1996 to 1998) period in introducing and testing new and innovative ways of delivering services such as housing, job creation, micro/small enterprise development and technical and vocational education and training. The 2004 (EC 1997) MDG Needs Assessment has proved important in scaling up the Addis Ababa experience to national level. The Urban Good Governance Package has also benefited from the initiatives of Addis Ababa City Government and, in addition, has drawn on and integrated into its proposed activities, implementation of the key findings and recommendations of the CBDSD Deepening Decentralisation and Integrated Urban Land Information Systems technical assistance projects. Figure 1. The Urban Development Policies, Strategies & Programmes Micro/Small- Enterprise Development Programme Integrated Housing Development Programme Youth Development Programme Provision of land, infrastructure & services Rural-Urban & Urban-Urban Linkages PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 PILLAR 5 URBAN DEVELOPMENT PACKAGE (GC , EFY ) Guiding Principles Land Development & Administration Systems Reform Justice Reform 7 Urban Good Governance Subprogrammes Urban Planning Reform Public Participation Reform Organisation & Human Resource Management Reform Urban Infrastructure & Service Reform Urban Finance & Financial Management Reform URBAN GOOD GOVERNANCE PACKAGE (GC , EFY ) Guiding Principles URBAN DEVELOPMENT POLICY (GC 2005, EC 1997)) Ethiopia s cities provide efficient and effective public services to residents, compliment and facilitate rural development, are models of participatory democracy and build accelerated economic opportunities that create jobs. Page 23

39 Both Packages build on the substantial achievements of the SDPRP 1 period, in particular the establishment of legal and institutional frameworks for urban local government authorities. Both Packages will involve: A significant scaling-up of the capacity building initiatives that have been the primary focus of national urban policy and strategies for the last 5 years; and A shift towards meeting directly the urgent and critical public service needs of Ethiopia s urban residents both current and future. Page 24

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41 Chapter 5 URBAN DEVELOPMENT PACKAGE Pre-Cast Beam Production, 2007

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43 CHAPTER 5 URBAN DEVELOPMENT PACKAGE 5.1 Development of the Urban Development Package In October 2005 (EC Meskerem 1998), the government of Ethiopia created a federal executive body to develop and implement the government s policies for urban development - The. Immediately following its creation, MWUD drafted a Terms of Reference for preparation of an Urban Development Package. The terms of reference was reviewed, commented on and elaborated by a coordinating committee as well as by other Ministries and relevant institutions. Following ratification by a Steering Committee, four teams 18 were created with representatives from federal, regional and Addis Ababa City Government. A Coordinating Committee was established to provide overall direction, coordination and integration of each team s work. During the first half of 2006 (EC 1998) the four teams prepared detailed work programmes and initiated field visits to regional and local authorities to consult, and collect data and views necessary to prepare programmes in each of the four areas. Programmes were developed and discussed with federal, regional and local stakeholders. The results are described briefly in the rest of this chapter. 5.2 Objectives, Goals and Implementation Strategies OBJECTIVES The objectives of the Urban Development Package are: a. To reduce unemployment and poverty; b. To enhance the capacity of the domestic construction industry; c. To alleviate housing problems, in quality and quantity, of both existing and new housing; d. To reduce slum dwelling; e. To promote urban areas as engines of economic growth by increasing their contribution to GDP growth and strengthening urban-rural linkages; f. To promote development of the private sector; g. To improve urban social and economic infrastructure, particularly for the youth; h. To promote direct public participation. 18 Housing Development, Micro- and Small-Enterprises, Youth-orientated Environmental Development, and Public Participation and Mobilisation Teams Page 25

44 5.2.2 GOALS Table 7. GOALS OF THE URBAN DEVELOPMENT PACKAGE Goal 1 Construct 400,000 houses in 72 urban centres during EFY 1999 to 2002 (GC 2006/ /10). 20% to 30% of beneficiaries will be women. Goal 2 Create employment opportunities for 1.5 million urban residents in 825 urban centres during EFY 1999 to 2002 (GC 2006/ /10). 50% of beneficiaries will be women. Goal 3 Enable the voluntary creation of 10,000 small enterprises on a sustainable basis in the construction industry. Goal 4 Provide social facilities (8,250 classrooms, 1,030 libraries, 503 youth centres, 503 football fields, and 503 hand/basketball fields) for youth to gain knowledge and engage in recreation in a productive and meaningful way. 50% of benefiting youth will be young girls. Goal 5 Ensure the participation of urban residents, public authorities and other stakeholders in all programmes. Goal 6 Secure funds that provide for a total investment during EFY 1999 to 2002 (GC 2006/ /10) of EB 23.3 billion (USD 2.6 billion). EB 15.8 billion (USD 1.7 billion) for the Integrated Housing Development Programme, EB 6.2 billion (USD 686 million) for the Micro and Small Enterprises Development Programme and EB 1.3 (USD 144 million) for the Youth Programme. Goal 7 Ensure delivery of a total of 13,825 hectares of serviced land in all urban centres: 1,700 hectares to support the Integrated Housing Development Programme (IHDP); 4,900 hectares for micro and small enterprises development; 1,425 hectares for the Youth Development Programme; and 5,800 hectares annually for other development. Goal 8 Secure funds for the EFY 1999 (GC 2006/07) budget in foreign currency equivalent to USD 73.9 million (EB million) IMPLEMENTATION STRATEGIES Key implementation strategies aim to: All areas of implementation have as their goal not only the production of houses, jobs, etc., but also the explicit aim to build national capacity at all levels and in all related spheres construction, management, vocational skills, regulatory capacity, etc. Page 26

45 Ensure that delivery of land for housing and other investments minimises the need to evict urban residents. Enable a high degree of integration between the different programmes within the package and between the programmes in this package and other government programmes. Ensure utmost adherence to principles of transparency, accountability and participation in the execution of all activities. Prioritise interventions to strengthen existing micro and small enterprises. Ensure the participation of and benefits for women in all programmes, investments and activities. Take pro-active measures to ensure the participation of individuals, households and groups in all programme activities. Evaluate and improve participation in successive rounds of implementation. 5.3 Pillar 1: Micro and Small Enterprise Development Programme Support to micro and small enterprises (MSEs) is integrated with investment programmes for development of housing through low cost housing and urban upgrading combined with provision of basic services. An objective of job creation is to focus on linkages and synergies between youth, housing and community participation. Complimenting the focus on micro and small enterprise are programmes to ensure that adequate serviced land is provided for formal and informal business and industrial development. Access to micro credit, for both micro and small enterprise development as well as self-help housing improvement will be developed. The government s support is mostly channelled through the federal Micro and Small Enterprises Development Agency (MSEDA), and increasingly through regional MSEDAs, whilst implementation is through the municipalities. It is estimated that, as a result of support to date, about 96,000 MSEs have been strengthened and some 280,000 jobs have been created MAJOR TARGETS The MSE Development Programme aims to create 1.5 million jobs in urban centres in the next 4 years by: Training 2,500 MSE extension workers to staff the One-Stop Service Centres; Providing business development support training to 360,000 MSE entrepreneurs; Page 27

46 Establishing One-Stop Service Centres for micro and small entrepreneurs in 825 cities with the specific purpose of improving the regulatory environment 19 ; Providing working premises for 820,000 MSE entrepreneurs mainly in clustered production premises; Providing EB 5.2 billion (USD 576 million) in MSE loans for 1.2 million MSEs through micro-finance institutions; Promoting market opportunities and identify market linkages for 710,000 MSE entrepreneurs; and Equipping 341,000 MSE entrepreneurs with modern and improved equipment and machinery. Achieving MDG targets: The Micro and Small Enterprise Development Programme will contribute directly to achievement of Millennium Development Goals: Table 8. MICRO & SMALL ENTERPRISE PROGRAMME MDG GOALS AND TARGETS Goal 1: Eradicate extreme poverty and hunger. Target 1: Halve by 2015 (EC 2007), the proportion of people whose income is less than one dollar a day. Goal 1: Eradicate extreme poverty and hunger. Target 2: Halve by 2015 (EC 2007) the proportion of people who suffer from hunger. Goal 3: Promote gender equality and empower women: Target 4: Eliminate gender disparity Indicator: share of women in wage employment in the non agricultural sector. Goal 7. Ensure environmental sustainability. Target 11: By 2020 (EC 2012) to have achieved a significant improvement in the lives of slum dwellers BENEFICIARIES The Amhara, Oromia, SNNP, Tigray and Harari Regional States, together with Addis Ababa and Dire Dawa will participate in the first year of implementation, EFY 1999 (GC 2006/07). The Afar, Benshangul/Gumuz, Gambela and Somali Regional States will be brought into the MSE Development Programme in EFY 2000 (EC 2007/08). It is expected that 1.5 million urban residents will be direct beneficiaries of the MSE Development Programme including: Existing MSE operators/entrepreneurs; MSE operators/entrepreneurs involved as beneficiaries in the IHDP; 19 As at July 2007 (EC Hamle 1999) one-stop-service centers were established in 540 towns and kebeles. Page 28

47 New Technical and Vocational Education and Training programme graduates; Unemployed youth; At least 50% of all beneficiaries are expected to be female FINANCING Total financing required is EB 6.2 billion (USD 686 million): EB 5.2 billion (USD 576 million) as start-up funding for provision of credit by micro finance institutions to MSEs as loans; EB 120 million (USD 13.3 billion) for training of MSE operators and extension agents (partly funded from CBDSD and PSCAP); EB 930 million (USD million) for construction of MSE production clusters (MSE incubators). Table 9. PROJECTED FINANCING BY MSE DEVELOPMENT PROGRAMME COMPONENT MSE Development Programme Component EFY 1998 GC 2005/06 EFY 1999 GC 2006/07 In million EB EFY 2000 GC 2007/08 EFY 2001 GC 2008/09 EFY 2002 GC 2009/10 Total Micro financing loans 259 1,297 1,297 1,297 1,037 5,187 MSE Training Construction of MSE Production clusters TOTAL 315 1,558 1,558 1,558 1,243 6,232 Source: Industrial and Urban Development Package, April 2006 (EC Miazia 1998). MWUD CHALLENGES The targets are ambitious and the Micro Small Scale Enterprise Development Programme is a large complex undertaking. Particular challenges that exist in the implementation of the programme include: Technology upgrading: To start up, small business utilise existing technologies; but to increase productivity and compete in the market there is need to upgrade technologies applied and this initiative will require training support, investment and business development support. Marketing capability: The sustainability of the many small businesses created depends on their ability to compete in the market their ability to market their products successfully. Small businesses need the skills, knowledge and support to market their produce and diversify their client base so that are not wholly reliant on government contracts. Extension services: Development of an increasingly comprehensive and effective MSE extension service. Page 29

48 Training: The training and further development of MSE extension agents. MSE and TVET: Linking MSE to the Technical and Vocational Education and Training more strongly to gain greater synergies that give added value and ensure that the TVET is aligned with demand for specific MSE knowledge and skills. Linking MSE development to secondary education: Ultimately there are important linkages between the development of micro and small businesses, the secondary school curriculum and development of basic skills, knowledge and attitudes. How can these linkages be developed and strengthened at school level? Meeting these challenges is crucial to the sustainability of micro and small enterprises and to the realisation of the high impact on overall urban economic and social development that is expected from this initiative. 5.4 Pillar 2: Integrated Housing Development Programme The Urban Sector Millennium Development Goals Needs Assessment estimated that the additional housing units needed due to population growth and formation of new households between 2005 and 2015 (EC 1997 to 2007) would be 2,250,831 units approximately million during the PASDEP period or 225,000 each year. To meet this need will require a substantial effort from the public sector, the private sector and beneficiary communities. The Integrated Housing Development Programme (IHDP) targets only middle and lower income households. The government s objective, in terms of housing for upper middle and upper income households, is to ensure adequate provision of and access to appropriately planned and serviced land, mortgage finance and a supporting legal and regulatory framework for condominiums, cooperatives and housing finance. Pillar 2 objectives: Reducing urban unemployment and poverty levels; enhancing and building capacity of the domestic construction industry; providing adequate shelter/housing; reducing slums, implementing integrated urban upgrading and urban infill; achieving high density development, reducing urban sprawl, reducing the cost of infrastructure provision and encouraging household savings for homeownership. The main implementing agencies are the regional Housing Authorities MAJOR TARGETS The Integrated Housing Development Programme (IHDP) will construct 360,000 housing and 36,000 commercial units during the four year programme period EFY 1999 to 2002 (GC 2006/7 to 2009/10). In addition to these housing units it is expected that the private sector (property developers, housing associations and private home builders) will construct between 500,000 and 600,000 housing units, for which the city authorities will provide land, infrastructure and services. Provision of housing units for the IHDP will aim to reduce urban sprawl and follow a strategy of densification or increased compactness that reduces costs of Page 30

49 providing new infrastructure and services by targeting underutilised land. Nonetheless, it is planned that 3,800 hectares of land will need to be serviced to support the IHDP. It is expected that the IHDP will create 200,000 of the new jobs and result in the development of 10,000 small construction enterprises. Table 10. IHDP HOUSING PRODUCTION TARGETS BY REGION EFY 1999 GC 2006/07 EFY 2000 GC 2007/08 EFY 2001 GC 2008/09 EFY 2002 GC 2009/10 Total Regions No. of cities No. of housing units No. of cities No. of housing units No. of cities No. of housing units No. of cities No. of housing units No. of cities No. of housing units Oromia 11 9, , , , ,748 Amhara 7 6, , , , ,654 SNNP 7 4, , , , ,630 Tigray 5 4, , , , ,118 Dire Dawa 1 1, , , , ,210 Harar 1 1, , , , ,140 Addis Ababa 1 33, , , , ,500 TOTAL 33 60, , , , ,000 Source: Industrial and Urban Development Package, April 2006 (EC Miazia 1998). MWUD Achieving MDG targets: The Integrated Housing Development Programme will contribute directly to achievement of Millennium Development Goals: Table 11. INTEGRATED HOUSING DEVELOPMENT PROGRAMME MDG GOALS AND TARGETS Goal 1: Eradicate extreme poverty and hunger. Target 1: Halve by 2015 (EC 2007), the proportion of people whose income is less than one dollar a day. Goal 1: Eradicate extreme poverty and hunger. Target 2: Halve by 2015 (EC 2007), the proportion of people who suffer from hunger. Goal 3: Promote gender equality and empower women: Target 4: Eliminate gender disparity Indicator: Share of women in wage employment in the non agricultural sector. Goal 7. Ensure environmental sustainability. Target 10: Halve by 2015 (EC 2007), the proportion of people without sustainable access to safe drinking water and basic sanitation. Goal 7. Ensure environmental sustainability. Target 11: By 2020 (EC 2012), to have achieved a significant improvement in the lives of slum dwellers. Page 31

50 5.4.2 CONSTRUCTION CAPACITY BUILDING TARGETS Activities to build the capacity of the construction industry include: Enhancing the capacity of the domestic construction industry and thereby, continuously improving designs to ensure affordability, social mix and mixed use in settlement planning and development; Recruitment and capacity building of contractors, foremen and engineers for the EFY 1999 (GC 2006/07) start-up; and Capacity building for improvement of building materials, including: improved use of local materials, development and use of alternative cost-effective construction materials and building technologies and promotion of production capacity of domestic firms BENEFICIARIES The Amhara, Oromia, SNNP, Tigray and Harari Regional States, together with Addis Ababa and Dire Dawa will participate in the first year of implementation, EFY 1999 (GC 2006/07). The Afar, Benshangul/Gumuz, Gambela and Somali Regional States will be brought into the IHDP in EFY 2000 (GC 2007/08). The IHDP will aim to benefit low and middle income urban residents. At least 20% to 30% of housing units will be allocated to female headed households. Youth will have equal opportunity to participate in the programme. It is expected that the IHDP will create 200,000 jobs for daily labourers, and semiand highly skilled workers, and develop 10,000 small businesses IHDP FINANCING Total financing requirements for the four year implementation period are estimated to be about EB 16 billion (USD 1.77 billion). 85% of the cost estimate is attributable to building costs and 15% to cost of supplying supporting infrastructure. Bridging finance for construction will be provided by government and commercial banks, with approximately EB 8 billion (USD 886 million) being provided by Addis Ababa City Government for its own programme from its own budget, and EB 8 billion (USD 886 million) being provided as 10 years loans from Commercial Bank of Ethiopia to participating regions. House units will be purchased by occupiers using existing mortgage loan facilities. 5.5 Pillar 3: Youth Development Programme The Youth Development Programme has developed strategies and interventions based on the National Youth (and Sport) Policy and the Urban Development Policy. As is stated in the National Youth Policy, approximately 67% of unemployment afflicts the 15 to 29 year old age group categorised as Youth. Within this age group, urban unemployment of economically active work seekers is 31.5%, with 65% being female and 35% male. The high level of urban unemployment, especially among urban youth and women is potentially the most Page 32

51 critical urban issue in both social and economic terms. It is an issue meriting special attention and investment because of its impact on the future social and economic development of Ethiopia s cities, and the importance of cities in terms of national policy as engines of growth their contribution to national GDP or wealth creation. With a general population growth rate of 2.4% and an urban population growth rate nearly double that - at least 4.1% - it is clear that if a substantive public investment in increasing urban employment, especially among urban youth and young women, is not made, the country cannot expect to meet its social, economic and MDG goals. Likewise, the urban youth do not have adequate access to facilities that help nurture their mental and physical capacities. Although urban youth have relatively better access to education compared to rural youth, the quality of education requires significant improvement. The implementing agencies for the Youth Development Programme are the federal Ministry of Youth and Culture and regional/city Youth and Culture Bureaus MAJOR TARGETS The urban Youth Development Programme aims to provide access to knowledge, and opportunities to develop mental and physical capacities and a sense of civic responsibility and national pride among young men and women. The Youth Development Programme will: Construct 8,250 neighbourhood classrooms, 1,030 libraries, 503 youth centres, 503 football and 503 volley/hand/basketball fields; Be implemented with real consultation with and participation of young men and women, to identify and assess needs and reach conclusions that reflect the ideas and opinions of youth; Develop knowledge gaining, employment generation, and promote sport, recreational and voluntary activities that contribute to social, economic and environmental development giving young men and women a sense of purpose and direction and the confidence to develop as productive and responsible citizens; Specifically encourage young men and women to participate in building democratic systems, good governance and community, urban, rural and national development initiatives; Link MSE and employment generating activities of the IHDP and other Urban Development programmes to the Youth Development Programme in full; Encourage experience sharing visits to different regions and develop youth clubs, centres and sports organisations; Encourage youth volunteerism; Page 33

52 Develop specific education and training for prevention of HIV/AIDS and initiatives to enable delinquent youth to gain employment and live as responsible productive citizens. Achieving MDG targets: The Youth Development Programme will contribute directly to achievement of Millennium Development Goals: Table 12. YOUTH DEVELOPMENT PROGRAMME MDG GOALS AND TARGETS Goal 1: Eradicate extreme poverty and hunger. Target 1: Halve by 2015 (EC 2007), the proportion of people whose income is less than one dollar a day. Goal 1: Eradicate extreme poverty and hunger. Target 2: Halve by 2015 (EC 2007), the proportion of people who suffer from hunger. Goal 3: Promote gender equality and empower women: Target 4: Eliminate gender disparity Indicator: Share of women in wage employment in the non agricultural sector BENEFICIARIES The Amhara, Oromia, SNNP, Harari and Tigray Regional States, together with Addis Ababa and Dire Dawa will participate in the first year of implementation, EFY 1999 (GC 2006/07). The Afar, Benshangul/Gumuz, Gambela and Somali Regional States will be brought into the Youth Development Programme in EFY 2000 (GC 2007/08). The principle targeted beneficiaries are the young men and women aged 15 to 29 in 74 medium and large cities 20. It is expected that 50% of beneficiaries will be young women. Parents, teachers and community representatives will also be beneficiaries of the Youth Development Programme FINANCING Table 13. SOURCES OF FINANCE FOR THE YOUTH DEVELOPMENT PROGRAMME Sources of funds and inputs EB (millions) USD (millions) % Community contributions % Youth (Programme participants) % Private investors % International community (Embassies, etc) % Religious institutions % Non-governmental organisations % Regional & other Development Associations % 20 Oromia 16, Amhara 23, SNNP 21, Tigray 12, Addis Ababa and Dire Dawa. Page 34

53 Regional States % TOTAL 1, % Source: Industrial and Urban Development Package, April 2006 (EC Miazia 1998). MWUD Table 14. YOUTH DEVELOPMENT PROGRAMME CONSTRUCTION COSTS Construction carried out: EFY 1999 GC 2006/07 EFY 2000 GC 2007/08 In EB millions EFY 2001 GC 2008/09 EFY 2002 GC 2009/10 Totals In schools: additional primary & secondary schools, classrooms, libraries and sports fields In communities: Youth centres, libraries, sport centres, foot/volley/basket/handball courts TOTALS ,390 Source: Industrial and Urban Development Package, April 2006 (EC Miazia 1998). MWUD CHALLENGES Financing: The full financing required to implement the YDP is not yet secured. Community contributions: Mobilising community based financing is proving a challenge. Development of methodologies, institutions and organisational means to engage with and mobilise communities, NGOs, and individuals in youth development are needed. Technical support: Additional technical support is required to run and manage youth centres, sports fields, libraries, etc. 5.6 Pillar 4: Development of Land, Infrastructure and Services Supply of and provision of infrastructure and services to land are, specifically, included as a part of the federal led MSE, Integrated Housing Development and Youth Development Programmes. Administration of urban land, its supply for public and private sector development, the planning of land use and development control and the supply of infrastructure and other services to land, are the responsibility of urban local government authorities. City authorities derive substantial revenues from land taxes, rents and charges. The federal government, having established national policies, strategies and parallel programmes, delegates responsibility for development of land, infrastructure and services programmes to regional governments and urban local government authorities. The retains the mandate and responsibility, nationally, for establishing policy direction, national strategy guidelines, capacity building and, where necessary, federal law (including regulatory and institutional frameworks). These interventions are described in the Page 35

54 Urban Good Governance Package - Urban Land Development and Administration, Urban Planning and Urban Infrastructure and Service Reform Sub-programmes. The and other federal agencies will support the regional and urban local government authorities to provide infrastructure and services to land mainly by: a) developing appropriate infrastructure financing mechanisms, and b) by building capacity for spatial and development planning, land management and infrastructure and services management. Examples include: During EFY 1998 (GC 2005/06) Regional Infrastructure Financing and Delivery Strategies were developed by Amhara, Oromia, SNNP and Tigray regions. 18 cities had developed 5-Year Municipal Infrastructure Investment Plans by the end of EFY 1998 (GC 2005/06). These will be implemented during EFY 1999 to 2002 (GC 2006/ /10). The infrastructure services covered include water, roads, drainage, sanitation and solid waste management. Sources of financing currently secured to finance these strategies and plans include the following: The Urban Development Fund was established with support from the German KfW agency and will provide a total of EB 189 million (USD 20.9 million) for investment in city/municipal infrastructure and services during the PASDEP period. A further 20% of this amount will be provided by cities as their contribution to the investment. During EFY 1998 (GC 2005/06) 18 city authorities submitted project proposals for infrastructure rehabilitation projects costing approximately EB 76 million (USD 8.4 million). Procurement will take place and projects be completed by December 2007 (Tahsas 2000) using CBDSD funds. Projects include: rehabilitation of markets, roads and drainage systems. City beneficiaries will make a 10% own revenue contribution. In EC 1997 (GC 2005), the Amhara, Oromia, SNNP and Tigray regions, plus Dire Dawa have agreed project proposals for urban infrastructure investment during the 5-year PASDEP period. The MWUD is in discussion with the World Bank regarding the launching of an Urban Local Government Development Project (see Chapter for greater detail). The project is expected to be launched in EC 2000 (GC 2008) and will provide grant funding for infrastructure finance. Water supply and sanitation: The Ministry of Water Resources has developed an urban water supply and sanitation programme. The EB 3.5 billion (USD 387 million) Addis Ababa Water Supply Project Water III will take place during PASDEP. It aims to address and resolve comprehensively the water supply and resource problems that have plagued the city for many years. The Ministry of Health has developed a National Protocol for Hygiene and On-Site Sanitation (GC June 2006, EC Sene 1998) to enable universal coverage of community led improved hygiene and improved on-site sanitation in Ethiopia. Page 36

55 Liquid waste: Ethiopia s cities, including Addis Ababa rely upon on-site sanitation septic tanks and pit latrines for disposal of liquid wastes. Water borne sewer and sewage disposal systems exist only in Addis Ababa where they provide for a very small percentage of liquid waste. A study will be carried out for Addis Ababa, Dire Dawa and the four large regional capitals as well as the major towns to determine the design and construction criteria, provide cost effective technical alternatives and options, and put in place eco-friendly and efficient liquid waste management systems that cover a significant proportion of industrial, commercial and residential development. Solid waste: Almost all cities and towns collect less than 50% of solid waste generated and have little or no disposal infrastructure in terms of either well designed and operated landfill sites or disposal through recycling such as incineration of organic waste capable of generating power. A federal strategy will be developed for solid waste management, and where necessary, laws and regulations will be developed. A study will be carried out for Addis Ababa, Dire Dawa and the four large regional capitals to determine the design and construction criteria, provide cost effective technical alternatives and options, and put in place solid waste collection and disposal infrastructure. This study will identify options and methodologies for partnerships with the private sector for disposal of solid waste through recycling and power generation. Note: The Ministry of Health has developed a National Sanitation Protocol with the support of the World Bank. Urban roads and transport: A Draft National Transport Sector Strategy was produced by the Ministry of Transport and Communications in November 2006 (EC Hidar 1999). Development of the National Transport Sector Strategy included the preparation of working papers in 16 subject areas; these include papers covering: population, urbanisation and urban economic activity and urban transport planning TARGETS Ensure delivery of a total of 13,825 hectares of serviced land to all urban centres: 1,700 hectares to support the IHDP; 4,900 hectares for micro and small enterprises development; 1,425 hectares for the Youth Development Programme; and 5,800 hectares for other development. Achieving MDG targets: The development of Land, Infrastructure and Services will contribute directly to the achievement of Millennium Development Goals: Table 15. LAND, INFRASTRUCTURE & SERVICES DEVELOPMENT MDG GOALS AND TARGETS Goal 7. Ensure environmental sustainability. Target 10: Halve by 2015 (EC 2007) the proportion of people without sustainable access to safe drinking water and basic sanitation. Goal 7. Ensure environmental sustainability. Target 11: By 2020 (EC 2012) to have achieved a significant improvement in the lives of slum dwellers. Page 37

56 5.6.2 CHALLENGES Monitoring, evaluating and reporting: No system currently exists for ensuring that targets for land supply are achieved. This will be developed in GC 2007/08 (EC 2000). Major challenges exist in terms of the institutional framework for land administration and the technical systems (land information systems, GIS systems, computerisation, etc.) for land management including legal, fiscal and multipurpose cadastres. However, these are more fully addressed in the following Chapter, 6.3 Urban Good Governance Sub-programmes, Land Development and Administration Reform. 5.7 Pillar 5: Rural-Urban and Urban-Urban Linkages With the launching of PASDEP a substantial scaling up of investment in infrastructure and services has been initiated covering a large number of urban centres, including small towns. These initiatives are mainly being implemented by other federal and regional authorities and national utilities for the delivery of: schools, health facilities, water and sanitation services, roads, power, telecommunication and the digital IT network. Clearly, the purpose of this investment is to contribute to government s overall goals to create the infrastructural foundation for a high and sustainable level of GDP growth. Generally, these initiatives have taken place without: a. A specific and parallel strengthening of small town institutional and organisational capacity to plan for and manage development; b. An overall coherent spatial development planning framework that: a) prioritises investment on the basis of highest potential for contributing to growth; and b) prioritises investment on the basis of identified high value intervention areas that will contribute to rural-urban linkages that kick start rural and urban economies. The MWUD s Urban Planning Bureau will lead the initiative to promote urbanrural and urban-urban linkages and provide the spatial and development planning framework and services. This programme will aim to enhance the capacity of a large number of small towns to fulfil a role as effective rural service centres as well as attract increased private sector investment. During EFY 1999 (GC 2006/07) the four larger regions have developed draft Regional Urban Development Strategies that adopt cluster and corridor approaches supportive of rural-urban and urban-urban linkages. Responsibility for implementation, and therefore for determining the main priorities for enhancing rural-urban and urbanurban linkages lies with regional Bureaus of Works and Urban Development. MWUD is considering development of a Small Towns Development Programme that will promote urban-rural linkages and scale up SDPRP achievements beyond the larger urban centres. Further details regarding the proposed Small Town Development Programme are contained in the following Chapter Urban Planning Reform Sub-programme. Page 38

57 Chapter 6 URBAN GOOD GOVERNANCE PACKAGE Laying a cobbled road, Adama 2007

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59 CHAPTER 6 URBAN GOOD GOVERNANCE PACKAGE 6.1 Development of the Urban Good Governance Package The Urban Good Governance Package (UGGP) was prepared by: a. Carrying out rapid assessments of 15 selected urban centres to provide general profiles regarding good urban governance practices and to develop indicators that establish the status/level of the major principles of urban good governance. b. Assessing and implementing the findings and recommendations of the CBDSD Deepening Decentralisation technical assistance studies in Amhara, Oromia, SNNP, Tigray Regional States and in Dire Dawa and Harar. The Urban Good Governance Package contains 7 sub-programmes each of which has developed between 2 and 7 projects for implementation. The UGGP has been developed by teams of professional staff (MWUD and Addis Ababa City Government) using a structured approach that presents: UGGP background, a problems/causes/solutions matrix, overall objective or aim; and For each of the 7 UGGP subprograms: objectives, activities, budget, targets or indicators of achievement and timelines for implementation activities (activity bar charts). The Urban Good Governance Package was developed during the 2 nd and 3 rd quarters of 2006 (end EC 1998, beginning 1999). The UGGP was not developed in isolation from past or on-going activities and achievements. To a very large extent it has built on on-going and recently completed initiatives and experiences of the Ministry of Federal Affairs, Addis Ababa City Government, regional governments and city authorities. These include: a. The reform initiatives of Addis Ababa City Government during EFY 1996 to 1998 (GC 2003 to 2005). b. During EFY 1997 and 1998 (GC 2005/06) the Ministry of Works and Urban Development implemented a large scale and comprehensive technical assistance project (CBDSD Deepening Decentralisation Technical Assistance) employing two teams of international and domestic consultants. The Urban Institute (USA) worked with the regional governments of Amhara and Tigray, four city authorities within each of these regions, and Dire Dawa City Administration. GTZ International Services (Germany) worked with the regional governments of Oromia and SNNP, four city authorities in each of these regions, Harari Regional State and Harar Municipality. The key findings and recommendations of the 200 studies, reports, plans, strategies, manuals, draft legislation and other outputs produced were integrated into the Urban Good Governance Package. c. During EC 1998 (GC October 2005 to September 2006) a consultant carried out a study of Integrated Urban Land Information Systems (IULIS) to establish the Page 39

60 requirements for creating a National Urban Land Information System and a National Real Property Registration System. The results of this technical assistance are incorporated into the Urban Land Development and Administration Systems sub-programme of the UGGP. 6.2 Objective, Strategy and Guiding Principles Objective: The Urban Good Governance Package will provide the basis for the implementation of good urban governance practices in Ethiopian urban centres to facilitate accelerated and sustained urban development. Five principles were adopted for development and implementation of the Urban Good Governance Programme. These are illustrated in Figure 2 UGGP Major Guiding Principles. Figure 2. UGGP Major Guiding Principles Subsidiarity - Administrative and Fiscal Decentralisation Efficient & Effective Service Delivery Rule of Law and Security Sustainability Equity & Participation Transparency & Accountability Urban good governance principles and practices are cross-cutting they are applied to the development and implementation of all programmes. The development of seven specific sub-programmes within the Urban Good Governance Package resulted because: a. A focus was required on the major urban issues identified in the Urban Development Policy, in meetings with regional and local representatives; as a result of lessons learned in Addis Ababa and other urban centres; and as identified in various studies and reports. b. In some cases the contents of sub-programmes were identified in the key findings and recommendations of the CBDSD DD and the IULIS technical assistance studies. This was the case in respect of the UGGP land management and infrastructure management sub-programmes. c. In other cases there was a clear need to empower local urban government authorities; for instance, by strengthening their financial management systems and increasing their ability to mobilise local revenues, control expenditure and plan capital investments. Page 40

61 d. The desire to implement the Urban Development Policy principle of promoting participatory democracy is evident in the sub-programme devoted to public participation. e. Continuing and increased efforts to reform the civil service, especially at local levels and increase organisational and institutional efficiency are evident in the projects and activities of the Organisation and Human Resource Management subprogramme. 6.3 Urban Good Governance Sub-programmes LAND DEVELOPMENT AND ADMINISTRATION SYSTEMS REFORM SUB- PROGRAMME General Goal To achieve urban development and urban good governance goals by developing and implementing transparent, efficient and effective systems of land development and land administration including development of efficient and healthy land and real estate markets. Specific Goals 1. Promote the role of urban centres as the centre of industry, market and services by creating more transparent, efficient and effective systems of land development and provision. 2. Improve the overall capacity of land provided by urban centres to at least 6,000 hectares of developed land per annum. 3. Improve policy, legal and operational mechanisms, systems and strategies that can help land to be used optimally. 4. Establish appropriate and sustainable land administration systems that ensure security of tenure and sustainable urban land development and management. 5. Ensure sustainable institutional and long-term capacity of land development and administration. This Sub-programme has four projects: Project 1 Land Lease System Reform 1. Policy: Review laws, regulations and guidelines to make sure that what is needed is in place. 2. Systems: Produce manuals and regulations as identified. 3. Institutional: Support organisational change requirements and manpower needs. Extend the lease system to all 432 municipalities (recognised cities). 4. Human Resource Development: Provide training & capacity building. Project 2 Land development Supply & Provision 1. Compensation law: Produce regulations, guidelines, procedures, and handbooks. 2. Land banking and land development: Identify land required for the future. Review optimal plot size and development standards. Page 41

62 3. Institutional: Develop public/private models for land development. 4. Address regularisation of land and buildings, and prevention of informal settlements. Project 3 Property Registration and Land Information 1. Implement IULIS recommendations in 23 towns. 2. Promote property ownership and property market development, including: Property valuation, valuation law and systems plus training. Project 4 Organisational and Human Resource Development 1. Investigate and ascertain the types of organisational structures required to deliver land based on the recommendations of the CBDSD DD and IULIS technical assistance reports & recommendations. Notes During EFY 1997/1998 (GC 2005/2006) a number of studies and assessments of urban land management, administration and land markets were undertaken. They identified critical deficiencies in the existing systems of land acquisition, delivery, allocation, administrative systems, and real property market functioning. The Addis Ababa City Administration has commissioned aerial photography covering the city and providing digital line maps and orthophoto maps for the administration of land and property, and for infrastructure service delivery. Addis Ababa s improved land management system will contribute directly to informal and semi-formal settlement regularisation, revenue enhancement and household capital formation through increased security of tenure URBAN INFRASTRUCTURE AND SERVICE REFORM SUB-PROGRAMME General Goal Develop the policy, strategy, institutional and legal frameworks that improve the organisational structure and systems of city administrations for the purposes of infrastructure and service delivery. Specific Goals 1. Develop strategies and an integrated development policy and ensure infrastructure development and service delivery are aligned with good governance principles. 2. Improve the organisational structure and system of municipalities to implement infrastructure development and service delivery. 3. Develop viable organisations, institutions and systems to ensure good coordination among infrastructure and services providers. 4. Create awareness among all stakeholders about the approved policy, strategies and legal framework for implementing delivery of services. This Sub-programme has three projects: Project 1 Municipal Infrastructure: Policies, Strategies and Prototype Regulations 1. The will, in close consultation with other involved federal bodies, regional and city authorities, draft and then implement a detailed action plan that will put in place: A clear set of policies, strategies, laws and regulations (or by-laws) for Page 42

63 planning, financing, developing, maintaining and managing urban infrastructure. Fire Brigade regulations and procedures. Completion, publication and operational implementation of the Building Code. Project 2 Municipal Infrastructure: Organisation and Management 1. The will, in close consultation with other involved federal bodies, regional and city authorities, draft and then implement a detailed action plan that will put in place: An organisational structure, staffing capacity and systems for infrastructure delivery that is demand-driven and provides effective coordination and systems to guide and monitor the process of infrastructure planning, delivery and management. A system for management of infrastructure as a public asset that is infrastructure asset management systems at local level that link infrastructure planning, delivery and management, at both capital investment and operation and maintenance stages, more closely with affordability and long term sustainability. Project 3 Municipal Infrastructure: Capacity Building, Human Resource Development and Training 1. The capacity building, human resource development and training aspects arising from approaches and activities proposed in Projects 1 and 2. Notes Management systems are in preparation to address a wide range of infrastructure and service delivery areas. These include manuals for: water supply, solid waste management, sanitation, urban drainage, roads and access, contracting construction works and services, hygiene education and practice, infrastructure project packaging, asset management, assessing capital condition and maintenance strategies, infrastructure partnerships, market upgrading and management, labour-based construction and maintenance and multi-year infrastructure investment planning. These will be published and disseminated in EFY 2000 (GC 2007/08) URBAN FINANCE & FINANCIAL MANAGEMENT REFORM SUB-PROGRAMME General Goal Establish improved financial management systems in city administrations and enhance their financial capacity. Specific Goals 1. Establish financial management laws, regulations and procedures that establish disciplined financial management and administration systems. 2. Install a financial planning and budgeting system that is compatible and integrated with federal and regional government levels, and optimises the utilisation of own resources. 3. Install transparent and accountable accounting, cash management, procurement and property management systems as well as consistent, reliable, accurate and timely financial reporting systems. 4. Introduce a computerised financial management system in city administrations Page 43

64 so that their operations are efficient and effective. 5. Enhance the revenue raising capacity of city administrations by introducing effective and efficient revenue administration systems. 6. Introduce a decentralised, fair, transparent, credible and sustainable budget system for city administrations. 7. Provide support for city administrations to make them credit-worthy so that they can borrow from domestic capital markets to provide infrastructure and social services. 8. Install strong and appropriate internal and external auditing systems and capacity which ensure accountability at every level for controlling the proper implementation of resources of city administrations. This Sub-programme has seven projects: Project 1 Financial Management Legal Framework Improvement Federal Ministries (MWUD, MoFED, MoR) will assist regions to adopt proclamations that: 1. Provide full and detailed regulations for city financial administration - for approximately 432 cities, accompanied by appropriate training. 2. Improve and reform the existing Tariff and Tax proclamations so as to provide greater autonomy at city level, abandon inefficient or ineffective taxes; reduce distortions arising as a result of the current system and encourage the application of services charges and overall improvements in the local tax and tariff system. 3. Establish regulations for transparent, accountable and efficient procurement for city authorities. Project 2 Financial Planning Improvement 1. Federal Ministries (MWUD, MoFED, and MoR) assist regions to put in place financial planning systems and capacity for 432 cities that include: annual budgets, multi-year rolling capital investment plans, and effective management and utilisation of expendable resources. Project 3 Accounting and Disbursement System Improvement 1. Regions will put in place (for a total of 432 cities and towns) an accountable, transparent manual system for accounting and disbursement of funds, including: charts of accounts, operational and training manuals and property administration systems. Operational manuals will cover at least three areas: accounting, disbursements and property management. Project 4 Financial Management System Computerisation The project will develop the software, user manuals, identify the hardware requirements, staffing and training needs to put in place computerisation of the accounting, disbursement and property management system developed in manual form in Project 3. The project will aim to commission computerised financial management systems in 6 cities in EFY 2000 (GC 2007/08), 12 cities in EFY 2001 (GC 2008/09) and 24 cities in EFY 2002 (GC 2009/10) a total of Page 44

65 42 city authorities. Project 5 Revenue Administration Improvement 1. This project is related to the Tax Reform Project for which the Ministry of Revenue is the main implementing agency. The objectives of MoR s Tax Reform Project are for 432 urban local authorities to: improve the tax identification numbering system; improve the billing and collection systems; develop and implement revenue enhancement plans; provide public education about tax responsibilities, benefits and rights; decentralise or outsource tax systems such as revenue collection; establish creative and efficient approaches to revenue collection; strengthen revenue collection departments train 2,160 staff. Project 6 Budget support and Loan/Credit Facilities Improvement 1. The Ministry will conduct studies of intergovernmental grant and/or revenue sharing systems for state and municipal functions. Develop prototype framework, guidelines and operational manuals for implementation by regional governments of block (unconditional) grants, specific (conditional) grants and revenue sharing systems. Clarify and determine income and expenditure responsibilities and authorities. 2. The Ministry will develop capacity and systems that enable selected cities to access funds for capital investment in infrastructure and services from domestic capital markets. Provide regulations, guidelines and procedures for borrowing, systems and procedures for cost recovery, debt management and domestic capital market development. Establish special federal or regional funds to support capital investment in infrastructure, housing and services delivery. Funds that are identified for study, followed by development to full operational capability include: Project 7 Audit Systems Improvement Urban Development Fund: The establishment of the KfW funded Urban Development Fund as a legal viable corporate entity, rather than a project basis. Integrated Housing Fund: The management organisation, capacity and systems for effective financial management for the Integrated Housing Development Programme (72 cities). Water Fund Office: The fund is managed by the Ministry of Water Resources. It provides soft loans to credit-worthy Water & Sewerage Agencies in 34 cities for water supply infrastructure. 1. Develop and put in place effective internal and external audit systems, including procedures, for 432 cities and towns. Train 864 staff. Update audit manuals developed by MoFED. Develop training manuals. Put in place regional Audit Bureau support and capacity building systems. Page 45

66 6.3.4 ORGANISATION AND HUMAN RESOURCE MANAGEMENT REFORM SUB- PROGRAMME General Goals 1. Create an enabling legal and institutional framework that promotes good governance in urban administrations regarding powers and duties, organisation, inter-governmental relations, public participation, justice, service delivery, urban finance, human resource management, urban planning, land and housing development and infrastructure management. 2. Build the policy and strategy formulation and implementation capacity of leadership, management and operational staff of the urban development sector at federal, regional, city administration, municipality and kebele administration levels. Specific Goals 1. Review and improve the organisational structure of regional bureau and zonal offices to achieve Urban Good Governance Package goals. 2. Improve the organisation and management legal framework so as to create a conducive environment for urban good governance of city administrations and municipalities. 3. Help cities to realise targeted service delivery standards, build capacity and create a situation for mutual benefits and support. 4. Establish city and professional associations with the capacity to build their members capacity and strengthen professional ethics. 5. Build the policy formulation and implementation capacity of the MWUD and its implementing agencies, regional bureaus and zonal offices as well as city councillors, executives, management and professional staff. 6. Develop and introduce a Human Resource Management System that enables city administrations to have competent staff by developing existing staff capacity plus attracting and retaining new staff. 7. Develop a Human Resource Information System that enables the design and implementation of a plan that integrates the demand and supply sides of human resource development. This Sub-programme has three projects: Project 1 Organisational Development 1. Prepare a model legal framework for cities based on a combined or single administrative system. 2. Prepare a model organisational structure for cities based on a combined or single administrative system. 3. Develop a Training of Trainers programme and course for implementation of the above two models. 4. Develop approaches and models for restructuring of supporting institutions including Zonal Bureaus, and regional Bureaus. 5. Develop a City Networks Platform for 18 cities. 6. Encourage celebration of Ethiopian City Days in regions and nationally. Page 46

67 7. Encourage development of City Associations. Project 2 Human Resource Development for Management Representative Officials and Professionals 1. Scale-up education and training of urban management professionals and education and training of urban planning professionals. 2. Scale-up short term training for urban professionals and part-time delivery of training opportunities. 3. Develop training for frontline operators and technicians through distance learning. 4. Build capacity for the construction and design sector to support the integrated housing and MSE programmes. Note: Scaling-up Urban Management Education and Training The scale of the investments proposed requires greatly increased quantity and quality of human resources if implementation targets are to be achieved. For PASDEP s urban programme to be successful in the next four years it is essential that: a) the number of urban managers graduating from ECSC s (and other) programmes be substantially and rapidly scaled-up; and b) education and training of urban managers includes practical knowledge, skills and tools relevant to PASDEP implementation and specific service delivery areas. At the beginning of Megabit 1999 (March 2007) an important education programme was initiated. It is the Urban Management Master s Programme with an intake of 390 graduate participants from regional/city existing staff. They are undertaking an 18 month Urban Management Masters course. The programme will increase its intake to reach an annual target intake of 1,000 course participants in EC 2002 (GC 2010). A broader expansion Programme is being developed to address medium and long term scaling-up of urban management education and training. It will include: an orientation programme for urban leaders and professionals; scaling-up existing undergraduate degree and technician diploma programmes at universities and technical colleges; further development and expansion of ECSC s capacity to deliver postgraduate courses, and short- and tailor-made courses, and develop its PhD and research capability; introduction part-time and distance learning versions of the Urban Management Masters and provision of content development and capacity building services. Project 3 Improving the Human Resource Management System 1. Develop a model Human Resource regulation. 2. Develop various Human Resource Development and Management manuals. 3. Improve the draft National Urban Training Strategy; finalise, approve and implement this strategy. 4. Review the Human Resource Development Plans, Training Needs Assessments and Training Strategies developed for Amhara, Oromia, SNNP and Tigray Regional States; support approval and implementation 5. Develop computerised human resource management systems integrated with civil service reform programme objectives, activities & systems. Page 47

68 6.3.5 URBAN PLANNING REFORM SUB-PROGRAMME General Goal Ensure that the responsibilities of urban planning authorities and federal, regional and city authorities are clearly agreed and understood; that adequate resources are secured and capacities created to meet planning policy goals and directions. Provide an enabling and effective institutional and organisational framework for spatial and development planning. Specific Goals 1. Enhance the capacities of the relevant organs of the federal and regional governments, urban administrations and the private sector, to prepare, implement, monitor and evaluate urban plans. 2. Put in place legal frameworks that clarify the roles and responsibilities of the different actors taking part in urban planning processes. 3. Ensure that urban planning activities are undertaken in a transparent and accountable manner and on the basis of appropriate urban planning norms, standards and criteria. 4. Ensure the participation of all relevant actors in the urban planning process and their equitable share from the benefits of development. 5. Ensure that urban plans are consistent with national and regional urban development and policies, strategies, programmes and projects. 6. Create the necessary environment to enable planned development of urban centres that serve as important service, trade and industrial centres. 7. Enable urban centres to play their developmental roles and achieve sustainable rural development by preparing a small town development project that will involve the preparation of basic plans for 300 small towns. 8. Facilitate the conditions whereby the federal and regional governments as well as urban administrations and the private sector have adequate capacities to prepare and implement plans. 9. Ensure efficiency in the delivery of urban planning services by promoting the involvement of private consultants in urban planning. 10. Ensure the efficiency and effectiveness of urban development endeavours by putting in place an integrated urban related information system supported by modern ICT. 11. Facilitate the conditions whereby the country s urbanisation process is properly guided and a strong linkage and complementary development is achieved among all the country s urban centres. This Sub-programme has three projects: Project 1 Urban Planning Capacity Building The Urban Planning Capacity Building Project has goals, activities and targets in three main areas: 1. In support of the policy direction that aims to shift provision of planning services at city level from the public to the private sector: Create the regulatory framework and capacity at federal, regional and Page 48

69 local city levels including the capacity for contracting out planning services to the private sector. Develop systems for procurement and management of private sector planning services. Develop strong private sector capacity, in quantity and quality, for provision of planning services. 2. Create national awareness of the Urban Development Policy, urban development strategies, programmes and activities; ensure that these are implemented in concurrence with national policy, strategies and programmes. 3. Identify support required by regions and the two charter cities from the federal government and the support required by cities from their respective regional governments and ensure support required by regional governments, federal charter and regional cities is provided. Project 2 Urban Information Systems Support 1. Assemble at city, regional and federal level, an up-to-date secure and accessible database of urban information useful for interested public and private sector parties. This will be achieved by creating a national Urban Information System using up-to-date ICT strategies and systems. 2. Enhance efficiency of urban planning processes through increased use of appropriate information technology. Project 3 Small Towns Development Project The Small Towns Development Project aims to bring basic mapping, planning and service provision to the large number of smaller towns that are not included in the programmes and projects described elsewhere. In the main these are towns with populations of less than 20,000 that function primarily as rural market and service centres. A concept paper will be drafted to test provision of base mapping utilising satellite imagery, collect base planning data and identify priority infrastructure and services investment packages. The Project is at an early stage of development and may be only fully implemented in the latter half of the PASDEP period JUSTICE REFORM SUB-PROGRAMME General Goal The objective of the Justice Reform sub-programme is to address the shortcomings attributable to policies and laws, prepare draft laws, policies, and facilitate their approval and implementation. The purpose of this is to ensure good governance in towns so as to enable them to be centres of development. Specific Goals 1. To enable city administrations to be centres of development by giving them a legal personality and the means to exercise their power in compliance with the principles of decentralisation. 2. To make city and town habitats safe for their residents by ensuring the rule of law is guaranteed by the local authority. 3. To make the services rendered by public offices functioning in towns and cities transparent, efficient, effective and accountable. Page 49

70 4. To ensure the fullest safety and rights of the residents by improving the justice system as applied locally. This Sub-programme has one project: Project 1 Urban Justice Reform Project Social courts will be operationally established in cities. A regulatory taskforce will review Kebele organisational structure. An urban Justice Reform Programme will be implemented in cities with the aim of establishing effective city /municipal and regular courts. Means will be introduced whereby urban dwellers obtain fair and efficient justice in practice. Training programmes for judges of municipal and regular courts working in cities will be provided. Trainees as well as trainers will be recruited who will prepare training manuals and conduct training to support the project. A model directive on the ethical conduct of appointees and other employees of city administrations will be prepared PUBLIC PARTICIPATION REFORM SUB-PROGRAMME General Goal To establish participative democracy for public empowerment and to ensure residents benefit from urban development. Specific Goals 1. Create a system for enhanced public participation. 2. Build the capacity of urban actors for effective participation. 3. Strengthen public participation and multi-actor collaborations to ensure the realisation of urban development goals. 4. Institutionalise public participation for a sustainable urban environment. This Sub-programme has two projects: Project 1 Establish a System and Build Capacity for Representative Participation 1. Conduct elections of City and Wereda Councillors. 2. Design implementation manuals and model regulations for adopting transparency and accountability in Councils. 3. Build capacity of Councillors and standing committee members inside Councils for effective participation. Project 2 Participative Urban Development 1. Create or support the establishment of credible institutional structures to enhance public participation in urban development. 2. Create sustainable networks and platforms to improve public participation and enhance development collaborations with all urban actors. 3. Reduce urban poverty by building the capacity of the private sector and creating an environment conducive to facilitate its involvement into a reliable development partner. 4. Promote community participation and ownership of local development and Page 50

71 upgrading projects. 5. Institutionalise public participation to protect the urban environment. 6. Adapt transparent and accountable systems, and raise awareness for the mobilisation of resources to achieve Integrated Housing Programme and Micro and Small Enterprise Development Programme goals. 7. Build a transparent and accountable urban administration by making urban information accessible to the public. Page 51

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73 Chapter 7 IMPLEMENTATION SUPPORT Participants of the Urban Management Master s Programme, Ethiopian Civil Service College, March 2007