Formalisation of Informal settlements in

Rundu

By: Maria Marealle

Town Management Expert
Lux Development
Project NAM/343

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 Project NAM/343

Title: Formalisation of informal settlements and

extension of water and sanitation networks in Rundu
and Katima Mulilo
Development Objective: To contribute to the
improvement of Rundu and Katima Mulilo inhabitants
living conditions by increasing the proportion of
people with secure tenure and upgrading the water
and sanitation network (MDG 11)
Start: December 2006 End: September 2011
Budget: 9900000 Euro
Counterpart: Ministry of Regional and Local
Government, Housing and Rural Development
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 What is formalisation ?

1. Layout Planning
2. Surveying of Town Land
3. Socio-economic Survey & Pricing Policy
4. Registration of Owners
5. Provision of services (water & sanitation Kehemu &
Sauyemwa ONLY)
6. Land Delivery Approvals NAMPAB/TS Board/SGO
7. Plot owner Verification and Vetting
8. Confirmation of Plot Ownership
9. Payment of Plot into Formalisation Revolving Fund
Accounts
10. Signing Agreements of Sale
11. Debt Management
12. Issue of Title Deeds 3
Land delivery through -

Subdivision

Township
Establishment
 for:
Applicatio 1)Subdivisio
n to n; Council Approval
Council 2)Township
Est
Applica
NAMPAB / tion to
Survey Townships the
Sec 10 of Ord 11 of Board Ministe
1963 Sec 5 of Ord 11 of 1963 Sec 5 of Ord 11 of 1963
r

Approval by Registration
Surveyor- by the Proclamation
By the
Sec 11 of General
Ord 11 of Registrar Minister Sec 13 of
1963 Sec Deeds
12 of Ord 11 of Ord 11 of
1963 1963

Certificate
of
Registered
Title
Existing erven
Application
Application Council
to the
to Council Approval
1 2 3 Minister

Signing Minister
Applicant
Deed of Approval
informed
4 Sale 5 6

Payment of
Registratio
Purchase Title Deed
n
7 Price 8 9

Private Treaty/Negotiation
Development Control
1. Layout Planning

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Stakeholders Layout Consultation

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 Land Pricing and Sales Policy
A Joint Initiative of RTC and KMTC

Highlights:

Selling Price N$10/m2 for those with incomes <N$3000

Town Councils rates for those with incomes >N$3000/year
0% Interest for first 24 months and thereafter 10% interest
per year
10 years repayment period
No re-sale within 10 years. In case of sale town council has
first preference

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 DOCUMENTS MAP
DOCUMENT PARTIES PURPOSE

JOINT VENTURE LD; MRLGHRD & BIND THE 3 PARTIES TO COOPERATE IN SET
AGREEMENT - JVA KMTC or RTC UP & RUNNING REVOLVING FUND

MEMORANDUM OF LD; MRLGHRD; BIND THE 6 PARTIES IN A GOOD WILL

UNDERSTANDING KMTC/RTC; DBTHC; SOCIAL COMPACT WITH CLEAR
LHRF & LADC ROLES

LOAN ADMINISTRATION STAFF OF KMTC & GUIDELINE TO ADMINISTER FUND

MANUAL RTC

SALES & LOAN KMTC/RTC; LHRF; BINDS THE 3 PARTIES TO LAND

AGREEMENT BENEFICIARY SALE THROUGH LOAN
OVER 10 YRS

MORTGAGE BOND CONVEYANCER; LEGALLY BINDS BENEFICIARY TO REPAY

LHRF, BENEFICIARY LOAN TO LHRF

CASH SALES KMTC/RTC; LHRF; BINDS THE 3 PARTIES TO CASH LAND

AGREEMENT BENEFICIARY SALE
 MANAGEMENT PLAN_1

INSTITUTIONAL FRAMEWORK FOR FORMALISATION

REVOLVING FUND
MRLGHRD LUX DEVELOPMENT

KMTC/RTC

DBTHC

LADC BANKS

SUBURB SDFN
TDF COMMITTEES

BENEFICIARIES IN THE INFORMAL SETTLEMENTS

 MANAGEMENT PLAN_2
ADMINISTRATION PROCESS FLOW DIAGRAM
NEW APPLICANTS
APPLICANT FILLS FORM
REAPPLY SUBMITS TO DBH OFFICER AT
TOWN COUNCIL

NOTIFY FORM CHECKED Not OK

END APPLICANT
GIVING OK
REASONS
OPEN LOAN FOLDER & REGISTER
PRE-SCREENED
APPLICANTS
Not OK SUBMIT APPLICATION TO DBTHC
OK

APPROVAL ADVICE TO APPLICANT

REPOSESSION THROUGH DBTHC GUIDELINES

BENEFICIARY ACCEPTS OFFER CASH SALE APPLICANT FILLS CASH SALE
AGREEMENT

LOAN SALE

DEFAULT PERSISTS APPLICANT FILLS COMPLETES

LOAN & BOND AGREEMENTS

APPLICANT PAYS DEPOSIT & TRANSFER FEES

PAYMENT OF TRANSFER FEES

BOND REGISTRATION IN DEEDS OFFICE
& FULL PURCHASE PRICE

DEFAULT CORRECTED
LOAN REPAYMENTS UP TO 10 YEARS

DEFAULT PAYMENTS
ACQUIRE TITLE DEED
FULL PURCHASE PRICE PAID

FULL OWNERSHIP WITH TITLE DEED

 MANAGEMENT PLAN_3
FINANCIAL FLOW DIAGRAM
FUNDS INFLOW FUNDS OUTFLOW

EITHER
BENEFICIARY RTC/KMTC
EXPENDITURE MOTIVATION
REVENUE
OK REVIEW
OR OFFICE REVIEW
REQUEST CONSIDERED
NOT OK END
BY DBTHC

BANK
ACCOUNTING OFFICER
NOT OK PREPARES MOTIVATION
AND SUBMITS TO MRLGHRD
FOR APPROVAL
OK
FORMALISATION END

REVOLVING ACCOUNTING OFFICER PREPARES

CHEQUE FOR SIGNING BY CEO
FUND ACCOUNT

DISBURSEMENT COMPLETE

1. Individual accounts at bank

2. Regular reconciliations to DBTHC
2. Surveying of Town Land

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3. Registration of Plot Owners

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Plot Verification & Vetting
Complete in Kehemu, Kaisosi & Kasote

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PLOT OWNER CONFIRMATION
Kehemu

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4. Provision of services

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 Some Formalisation Facts
After more than 12 months, the 778 residential plots
in phase 1 yet to be fully allocated. 14996 plots to
be allocated in total. By contrast, 3407 of the 3663
plots formalised in KMTC now allocated (93%).
A mere N$34000 has accumulated in the RTC
Revolving Fund accounts compared to nearly
N$340000 in KMTC
No Agreements of Sale signed to date
No Debt management system in place

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 Concerns and Challenges
Relatively poor performance attributed to:
a. Lack of cohesion & unity of purpose between:
a. RTC Councillors & Officials
b. RTC and Community
c. RTC and Project
b. Lack of human capacity in RTC to spearhead
certain project roles. CMO, CLO, CFs took the
lead until Community started to resist. PMU not
established as agreed
c. Political/Traditional/Church leadership interference
feigning ignorance & de-campaigning the project
d. Sluggish change in management culture 21
 Way Forward
Phase-out Plan introduced to enhance effective
closure of project activities. Critical aspects
include:
Building RTC capacity to institutionalise project by
employing the CLO and CFs for continuity.
RTC Councillors to create enabling environment
through eradication of confusion among beneficiaries
RTCs presence in community should be felt to avoid
some people taking advantage on land sales

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THANK YOU

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