July 1993Windhoek, NamibiaNational HOUSIng Eknterprise (NHE)

tted by

McNamara Consultants

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44 The Honourable Mayor

of Windhoek, Mr. Matheus
Shikongo, was the guest of

honour at the service dedicating
the renaming of the project as

the Oshatotwa Housing

Programme. He addressed a

crowd of over a_ hundred

residents and invited guests in

the shade structure, the core of
the community centre building in

Onghuuo ye Pongo.

vv The Mayor unveils the

sign announcing the new project

name: the Oshatotwa Housing
Programme. "Oshatotwa"is the

Oshiwambo word which means
"A foundation has been laid.

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4

44 Mrs. Maria Dax, NHE's

Public Affairs Manager, chaired

the dedication ceremony of the

Oshatotwa Housing Programme.

The name "Oshatotwa" was

selected in a competition among
the residents of the upgrading
project areas.

vv The invited guests join

the local populacein listening to

the Mayor's speech. The

ceremony was covered by NBC-

TV and by several local

newspapers.

INTRODUCTION

COMPONENTS OF PROGRAMM

Upgrading of resettlement areas
Core-house projects
Loan guarantee fund
Building material loans
Community development and training
Institutional development
NHE's Resource Centre

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EXECUTING AGENCY AND ORGANIZATION OF PROGRAMME
3.1 Recent developments at NHE
3.2 Organization of the Programme
3.3 Personnel
3.4 Coordination mechanisms
3.5 Logistics

COOPERATION WITH OTHER PARTIES |

Municipality of Windhoek
Cooperation with NGOs
Private sector

Steering CommitteeM
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4.

FINANCE

5.1 State of accounts
5.2 Revision of Programme budget
5.3 Adherence to disbursement schedule,
estimated disbursements for third quarter

CONSULTANT
6.1 Personnel assignment
6.2 Services rendered
6.3 Assignment for next quarter

STATE OF FULFILLMENT OF CONDITIONS

Annexures

Exchange rate (June 93): DM 1.00=Rs.1.90

Ministry of Regional, Local Gvnmt.and Housing.

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-2/D

QUARTERLY PROGRESS REPORT 2 -JUNE/93

Municipal Council's resolution on interim rates
and taxes.

Description of Freedom Land experience

Complementary information on infrastructure
upgrading:

- Standards for infrastructure upgrading
- Work programme
- Road cross section, details on construction
- Water & sewerage layout plans, details
- Press ads inviting contractors for price

competition

Submission to NHE's Management Committee on level
of infrastructure upgrading.
- Proposed level of infrastructure upgrading

in Inception Report
_ Letter from Municipality on financing

materials for sewerage and water lines in
upgrading areas.

- VWL cost estimates for improvement of
infrastructures

Municipal Council's March resolution on sale of
land for core-house projects;

Layout approval
- Letter to Municipality requesting approval

of lay-outs;
- Municipal Council's June resolution

approving lay-out plans for core-house
projects;

Core-house Projects land development
_ Standards and cost estimates
- Preliminary work programme

Core-house Projects: Correspondence related to
value of construction in Khomasdal locations

Contract for Loan Guarantee Fund

2-06/93-CHP.1

This Quarterly Progress Report 2 is submitted by SUM-

Mc Namara Consultants to the National Housing Enterprise,

with copies to the Ministry of Regional and Local

Government and Housing and to KFW in accordance to the

Paragraph 2.2.3 of the Consulting Contract dated July 16th,

1992. It covers the progress accomplished from the ist of

April through the end of June 1993.

The second quarter of implementation was a fruitful

period for the Programme. Most issues that initially

delayed implementation are now solved, although

unfortunately not always according to the assumptions

stated in the Inception Report.

A small but very relevant change is to be highlighted.

In keeping with the participative approach, a competition

to rename the Programme waS organized among people in the

upgrading areas. More than 150 entries were received from

the community, and "OSHATOTWA", an Oshivambo word that

means "a foundation has been laid" was selected by the

communities themselves.

Despite certain delays, Programme Implementation is

progressing well and the main objective, defined as:

"improving access to housing for low-income groups,

applying new approaches and encouraging the participation

of the community, public and private sectors" will he

achieved. The progress in the three Programme components is

outlined below:

UPGRADING: After establishing of the price of plots,

field work is proceeding for securing land tenure and

developing starter solutions. NHE has adopted several

decisions to facilitate access to land and houses. fhe

Municipality has offered cooperation for the improvement of

infrastructures. It was decided to provide full water and

sewerage reticulation for all areas; engineering plans were

prepared and construction is now scheduled to begin in

August.

Data coming from the field have been evaluated and the

budget and operating procedures adjusted accordingly. Field

work is more time consuming than anticipated; it is NHE's

first experience with upgrading, dealing on a large scale

with people already living on the sites. Many new

procedures have been developed to bridge the gap between

the informal life style in the upgrading areas and the

administrative routines of NHE and the Municipality.

CORE-HOUSE PROJECTS: The land for the three initial

core-house projects has been purchased, lay-out plans have

been prepared and approved by the Municipal Council, survey

works and engineering designs are under way. The MRLGH

OSHATOTWA PROGRAL

{ME-QUARTERLY PROGRESS REPORT 2-06/93-CHP.1

decision on 300 m2 as the minimum plot size, municipal
requirements on standards for roads, price escalation and
new taxes on building materials will have an adverse effect
on the affordability of the core-houses.

Additional land for a fourth core-house project was
identified. NHE is purchasing 450 developed plots at
Otjomuise, and will allocate some of them for this purpose.
It was agreed that no land development costs would be
reimbursed from the grant for these plots. NHE's
counterpart contribution to the Programme is increased
accordingly; now a total number of 430 units is envisaged.

LOAN GUARANTEE FUND: The Loan Guarantee Fund was
established, and SWABOU signed the agreement as the first
financial institution that will offer guaranteed loans to
low-income households. A publicity campaign is being
prepared and loans under this programme will be available
soon.

A major output of the quarter has been a substantial
revision of the Programme budget, on the basis of more
ascertained assumptions and the experience so far gained
through implementation. The number of envisaged starter
solutions and building material loans have been decreased;
the number of core-houses increased. NHE's' share in
Financing the Programme has increased from an original
14,68 in the Inception Phase to 21,0%, which shows the
strong commitment of NHE management towards the Oshatotwa
Programme.

From the institutional development point of view the
overall picture is encouraging: NHE has incorporated basic
conceptual innovations of the Programme into its Strategic
Plan and adjusts administrative procedures in a flexible
way. The Municipality has responded positively to some of
the suggested reductions of land development standards and
is ready to co-finance infrastructure improvement of the
upgrading areas.

Two new Community Development Workers and two Self-
Help Construction Advisors were hired. NHE's Office
Administrator joined the team in April. On the other hand,
M Chris teenkamp, NHE's Programme Coordinator hasr
announced that he will soon be leaving the Corporation. A
very efficient coordinator and a valuable resource is thus
jost for the Programme. NHE will scon replace him and
requested the Chief Technical Advisor to extend his stay in
Windhoek for a week to facilitate the transition.

At the end of June the Programme Team conducted a
participative planning workshop to establish activities,
outputs and responsibilities for the next quarter. All team
members positively evaluated the experience and felt that

OSHATOTWA PROGRAMME-QUARTERLY

as a result they had a
Programme.

3-CHP.1

PROGRESS REPORT 2-06/9

better understanding of the

The consultancy services so far seem appropriate and
sufficient to accompany implementation as scheduled.

The following persons have
quarter

Mr.

Mr.

Mr.

Mr.

Mr.

Ms.

Mr.

Mr.

Mr.

Mr.

Mr.

Mr.

Mr.

Mr.

Ms.

Ms.

Ms.

Ms.

Ms.

been involved in the second

of execution. From NHE:

Axaro Tsowaseb,
Alpheus Gaweseb,
Louis Fick,
Jurgen Lehnert,
Adolf Botes,
Maria Dax,
Chris Steenkamp,
Pietrus Asino,
Brian Graig
Ernst Mathias
Johann de Klerk
James Short
Andreas Wienecke,
Jonathan Sam,
Charlotte Dunstan,
Estelle Martin,
Tella Beukes,
Carol Muller,
Ansie Steenkamp,

Chief Executive Officer
Chief Operating Executive
Sr.Mgr.Finance, Plng. & Control
Sr.Mgr.Technical & Social Serv.
Mor. Contracts
Mgr. Public Affairs
Project Coordinator
Office Administrator (Program)
Self-Help Construction Advisor
Self-Help Construction Advisor
Manager, Finance Branch
Loan Administration Officer
Sr. Draughtsman
Media Producer
Confidential Secretary
Office Administrator
Administrative Assistant
secretary
Receptionist

From the consulting team:
Mr.

Mr.

Mr.

Mr.

Mr.

Ms.

Ms.

Ms.

Juan A. Crispo,
Roland Ziss,
Don Kurtz,

Kerry McNamara,

Andrew Walton,
Sophy Shaningwa,
Salmi Kaulinge,
Aune Tjirare

Chief Technical Advisor
Policy/Institutional Advisor
Cty.Development Advisor
Field Supervisor
Field Coordinator
Cty.Development Specialist
Cty.Development Specialist
Cty.Development Specialist

- Information regarding the Programme was to be
disseminated among potential beneficiaries in all five
sectors; definition of land selling price was expected by

mid-April;

Starter solutions
- Adjusted technical designs of alternative solutions;
construction drawings, bills of quantities, cost estimates
and models were to be prepared by mid-April;
- Self-help construction advisors were to be hired and
trained by mid-May;
- Price competitions to select building material
suppliers were to be conducted during April;
- Operational procedures for implementation were to be

established during April; |
- Builders were to be selected and standard contract
prices for construction of the various alternatives
defined, to offer the possibility of hiring a builder to
beneficiaries unable or unwilling to proceed through self-
help;
- A preliminary experience to implement between 6 and 10
starter solutions was to begin in the Onguo Ye Pongo
community in May;
_ After evaluation of this initial experience, a joint

process of regularization of land tenure and development of

starter solutions was scheduled to be gradually extended

from Sector I to IV.

- As requested by the Municipality, a local consulting

engineer's firm was to be appointed to design and

supervise construction of the upgrading of internal streets

and water and sewerage reticulations. The contract was

scheduled to be signed by the end of April; |

Standards for internal streets upgrading and for

utilities networks were programmed to be defined with the

Municipality by the end of April;
- Design and construction drawings for infrastructure

improvements were expected by mid-June, with tender and

construction starting afterwards in Sector I and gradually

extended to other sectors.

PROGRESS REPORT 2-06/93-CHP. 2

Community Centers
Municipal Council's reply to NHE's request for landfor the Community Centers in Sectors IV and V was expected
by the end of March, and the lease Signed immediately
afterwards:
The initial structure for the community center in
sector I was to be completed by mid-April;
- Design, construction drawings, bill of quantities,
cost estimates and tender for the construction of site
office (Community.Ctr. Sector IV) was scheduled to be
completed by the end of May, actual construction to begin
in early June.

Progress of work was based in the Following
assumptions:

a) Land selling prices would be defined by early
April
b) Infrastructure improvement issues pending would be
decided by end of April | |
c) CDWs and SCAs can be hired and trained and are
operative by mid-May.

REALIZATIONS, PROBLEMS ENCOUNTERED

General information regarding the upgrading project
was disseminated among all potential beneficiaries during
the second quarter through leaflets, meetings with
community leaders and groups, the Organization of a
competition to give a name to the project (see 2.5 below)
and other methods.

The programmed "twenty households meetings" approach
waS not completed in all areas. Due to delays in defining
the selling price for the plots it was decided that it
would be more effective to explain the project's details
during the regularization of tenure process.

securinglandtenure
LAND SELLING PRICE: Land selling prices could only be

established in mid-May, after the end of April Municipal
Council's resolution that temporarily waived payment of
interim rates. Details on this lengthy process that delayed
Field work more than a month were provided in the weekly
reports submitted to KfW by SUM-McNamara Consultants and
NHE's Project Coordinator. Copy of Council's decision is
ctachned as Annex Z.1i/a. NHE established selling prices at

RS.6.100/plot in the serviced areas (Freedom Land and
Goreangab), and Rs. 5.650 for all other plots in the
upgrading areas. These prices were later revised when NHE's
Management Committee decided to provide full water and
Sewerage reticulation, levelling them at Rs 6.100 in all
areas (see Infrastructure Upgrading section).

CHANGES IN IMPLEMENTATION STRATEGY: NHE decided to
give priority to providing secure land tenure to as many
relocated households as possible, and introduced some
adjustments into the originally envisaged procedures.

a) The process of signing deeds of sale for plots will
have first priority and be separated from the definition of
individual starter solutions. The initial programme
envisaged this as a single operation. A basic loan will be
granted for the purchase of the plot, an additional loan
for the starter solution will be extended to families
willing and able to afford them.
b) NHE has decided to waive the requirement of a 10%
initial saving on the purchase of the plot proposed in the
Inception Report. Concurrent with the up-front subsidy,
this relaxation of financial conditions is expected to
allow a bigger number of households to become plot owners,
the basic initial stage to develop a housing solution.
c) As mentioned in the Quarterly Progress Report 1,
eventually .25%3 of the households may not be able to afford
even the purchase of the plot. To reduce the number of
potential evictions, a temporary lease arrangement was then
suggested. NHE has now decided to offer such families the
possibility of signing a conditional contract for six
months. Households that, despite their low declared
incomes, manage to regularly meet their monthly obligations
will be able to remain in the plot; otherwise they will be
evicted. This creative approach will allow the mobilization
of hidden informal resources that might be available for
some families but do not appear in their income
declarations.
d) NHE has also decided to relax age requirements.
According to usual policy, 60 years is established as the
age limit to end loan repayment. For the Upgrading Project
loans will be granted regardless of the age of the
beneficiary.

THE LAND SELLING PROCESS: Basic procedures were
established and field personnel trained to use them at the
beginning of June (Details in 2.5 and Operations Manual).
Signature of deeds of sale involve a coordinated effort
between NHE's personnel, the Programme CDWs and Office
Administrator. The CDWs explain the Programme and loan
conditions and re-evaluate household's affordability; this
information is transmitted to NHE's personnel for the
actual signature of deeds of sale and loan contracts. CDWs
WOrkK is performed on site, contract signature is done at
the Municipality's Okuryangava offices, lent to NHE till
the site office is ready for use.

During the month of June the process of selling plots
was started in the Freedom Land area. By evaluating the
experience the Programme Team has been able to adjust
procedures, and estimate better the potential for starter
solutions. Annex 2.1/b contains a detailed description of
the process, implications for field work, training etc. The
following conclusions refer to special cases identified and
suggest policies to deal with them.

THE AREA |
The Freedom Land area has some particular

characteristics:
- It is not a clustered community as the others.
One part of the erven are situated around NHE's WASP
(Windhoek Assisted Self-help Project), the other
erven around the Shipena Eimbeck or Freedom Land
squatters (see plan).
In comparison to all other upgrading areas
Freedom Land has a privileged location, with the
important Monte Christo Road on one side and the main
entrance to Okuryangava on the other.
- The people of Freedom Land were the first ones to
be resettled; a former NHE employee stated that the
group was selected in Single Quarters among
households with relatively higher incomes.

Despite these characteristics Freedom Land looks very
much the same as the other upgrading areas: there is no
clear evidence for an accelerated process of consolidation.
According to the CDWs the community is relatively well
Organized. Many of the findings therefore should then also
be relevant for the other areas.

SPECIAL CASES IDENTIFIED

Only 54 worksheets # 1 out of a total of 85 erven
(64%) could be completed in the first round without special
efforts by the CDWs to meet the people. An array of other
Situations, requiring special attention and additional time
of the Team was identified. They may be grouped into the
following categories:

- Owner who live regularly on the plot, but
* re away because of their job (e.g. taxi driver,
construction worker)

* are on leave in Ovamboland, for a couple of days
* have not been able to produce their incom
statement
* do not know about the possibility of having
access to housing allowances with their employer.
Owners who do no live regularly on the plot. Some
of them go to Ovamboland and come from time to time;
others live in another town because of a temporary
employment and intend to go back once the job is
finished. Usually family members live on the erf and

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OSHATOTWA PROGRAMME-QUARTERLY PROGRESS REPORT 2-06/93-CHP.2

Know where the owner is; they do not usually know
when he will come back to Windhoek.
_ One person claiming ownership of several plots: A
few of these cases have been detected; they amount to
intend to deceive NHE for speculative reasons (there
are three different people called Jonas Lucas or
Lucas Jonas in the upgrading areas!).
- Other people living on the plot with consent of
the original owner. The plot was assigned to somebody
who now lives in another place, but maintains his
claim to the erf. The case of erf 1386: Naftali
Amuquia, 23 years of age, is living there with a
woman. His brother Jeremia (26) is the owner; he is
presently employed in Okahandja. As he his the first
born of the family he would never pass over his claim
to Naftali, unless he dies."
Other people living on the plot without consent
of the original owner. People do not know the
Original owner or pretend not to know hin. He might
have sold them the erf, or just abandoned the erf
some time ago.
- Unoccupied structures. Nobody is living currently
on the erf; the structure may be locked or used for
non-residential purposes. The case of erf 1456: The
owner lives in Otjiwarongo. The structure is used as
a bottle store and a tombo place. There is a bed
inside which is used by the night watchman. The lady
from erf 1453 is looking after the business.
Unoccupied plots. sometimes because the
boundaries have not been Clearly defined or people
have difficulties in understanding them (e.g.
"panhandle" erf). Also, plots may not have been
originally allocated due to Steep slopes or other
reasons (in Onheleiwa plots were designed over an old
graveyard site).

WORK IMPLICATIONS
These special cases require a lot more work input by

the CDWs, the Office Administrator and the ProgrammeCoordinator than the normal cases. If one visit to the erf
is usually enough to complete worksheet #1 for a normal
case, three to five visits have to be envisaged for theSpecial cases, plus additional meetings with the community
leaders. It is recommended that an area map is used toidentify these special cases and follow them up. The
Programme Coordinator when assigning the time of the cDWs
has to make provisions for the Special cases.

On the other hand, during the initial phase theattendance of the special cases should not delay the
attendance of the normal cases. It is recommended that in
the coming months the focus should be placed on the mass of
normal cases. This first round should also include the
identification of the range of Special cases and the
corresponding procedures. Once the first round is

AMME-QUARTERLY PROGRESS REPORT 2-06/93-CHP. 2

concluded, the special cases should be dealt with in asecond round. It is expected that by doing these two roundsmany of the owner considered special cases will try to sortout their problem and approach the Team themselves.

PROCEDURAL AND POLICY IMPLICATIONS
Dealing coherently with the special cases means tryingto formalize informal life styles. There are certainlylimits, but some basic policy guidelines have to beestablished to cover the majority of these cases and atleast prevent obvious forms of misuse.

- Establish clear control mechanisms: Names of plotowners shall be cross-checked against all owners inresettlement areas, other NHE projects, the MRLGH BuildTogether and other Housing Programme's beneficiaries lists.= Set a deadline for legalization of Ownership: Adeadline will be established for erf owners to produce thenecessary documentation for the deed of Sale; if he doesnot show up, his erf will be will be repossessed by NHE andreassigned to somebody interested from the Waiting list. Locate the original owner: The Team uses differentmeans Of tracing the original owner, according to what thecommunity leaders think most effective, in order to briefthe original owner (leaving note with occupants orneighbors, radio message, etc.).
- Accept change of ownership: If the Original owner isnot living on the erf, he may pass his claim to ownershipwith a written declaration to the occupant who will becomethe new owner of the erf.
Absentee ownership: NHE does not accept absenteeOwnership; if the owner is not living on the erf and doesnot want to pass ownership over to the occupant, the erfwill be repossessed by NHE and reassigned to somebody who
really needs it.
- Non-residential use of the erf: If the owner lives onthe erf, he may also use it for non-residential purposes;if the erf is only used for non-residential purposes, itwill be repossessed by NHE and reassigned to some familywith real housing needs.

Many of these situations result from the fact thatpeople were resettled from the Single Quarters without
establishing very clearly that they would have to pay forthe land. They were permitted to Stay without any repaymentfor an initial period of six months; in practice they havebeen there for much longer practically for free, and somehave the perception that the land was given to them by the
Government. This perception is already affecting cost
recovery in other areas: the Community Development Workers
reported that in the Onghuwo ye Pongo community, where
contracts for the purchase of plots were Signed last year.
Many households are not willing to start repayment as long
as the other resettled groups are not paying.

- 11 -

RAMME-QUAR

TERLY PROGRESS REPORT 2-06/93-CHP. 2

In the broader context of the National Housing Policy
it is obvious that households may be supported to acquire
only one erf or house. The individual desirability of
having one house in Ovamboland and another one in Windhoek
cannot be met with governmental Support. Permanent formal
employment is no longer a requirement for having access to
a housing solution. This does not mean that people should
have a permanent place to stay wherever they go to look out
for employment opportunities. To consider these Situations,
selection criteria were adjusted Lo include: 1)
Beneficiaries must be bona fide residents of Windhoek,
living and working in the city; ii) The plot must be the
sole residence of household and used mainly for residential
purposes; iii) Any person using the plot exclusively for
commercial activities, or identified as owning other plots
or houses in Windhoek will be excluded from the Programme,
and the erf re allocated by NHE. Procedures established to
deal with the different situations are shown in the charts
in pages 13 to 15.

THE SHIPENA EIMBECK SQUATTER AREA
The issue of land tenure at the Shipena Eimbeck

Squatter area is still unsolved. The Programme Team
monitors conversations between the community and the
Municipality. NHE stands by its policy of assisting the
Squatters in the improvement process without previously
buying the land.

Startersolutions
Preliminary tasks required to begin implementation of

this component were roughly completed by mid-June, a delay
of about one month compared with previous planning. Main
reasons for the delay were:

- Difficulties in identifying and hiring the self-
help construction advisors, the key personnel for
this task. The first one joined the team in early
May, the second in early June.
- Delays in NHE's draughting section. Although NHE
has purchased another CAD station and temporarily
assigned a senior draughtsman to the Oshatotwa
Programme, there is at present an overload of work
and conflicting priorities between the Upgrading and
the Core-house that sometimes result in certain tasks
being postponed. This bottleneck has been brought to
the attention of the Manager of NHE's Technical
Services Dpt., and solutions are under way.

During the second quarter of implementation:
_ Alternative starter solutions designs, bills of
quantities and cost estimates were prepared (see Operations
Manual - OM);
Procedures for the evaluation of "excess"
affordability after payment of loan for plot, for defining
individual solutions with families, for processing the

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{ME-QUAF

TERLY PROGRESS REPORT 2-06/93-CHP. 2

concluded, the special cases should be dealt with in a
second round. It is expected that by doing these two rounds
many of the owner considered special cases will try to sort
out their problem and approach the Team themselves.

PROCEDURAL AND POLICY IMPLICATIONS
Dealing coherently with the special cases means trying

to formalize informal life styles. There are certainly
limits, but some basic policy guidelines have to be
established to cover the majority of these cases and at
least prevent obvious forms of misuse.
_ Establish clear control mechanisms: Names of plot
owners shall be cross-checked against all owners in
resettlement areas, other NHE projects, the MRLGH Build
Together and other Housing Programme's beneficiaries lists.
- set a deadline for legalization of ownership: A
deadline will be established for erf owners to produce the
necessary documentation for the deed of Sale; if he does
not show up, his erf will be will be repossessed by NHE and
reassigned to somebody interested from the Waiting list.
- Locate the original owner: The Team uses different
means of tracing the original owner, according to what the
community leaders think most effective, in order to brief
the original owner (leaving note with occupants or
neighbors, radio message, etc.).
- Accept change of ownership: If the Original owner is
not living on the erf, he may pass his claim to ownership
with a written declaration to the occupant who will become
the new owner of the erf.
- Absentee ownership: NHE does not accept absentee
ownership; if the owner is not living on the erf and does
not want to pass ownership over to the occupant, the erf
will be repossessed by NHE and reassigned to somebody who
really needs it.
- Non-residential use of the erf: If the owner lives on
the erf, he may also use it for non-residential purposes;
if the erf is only used for non-residential purposes, it
will be repossessed by NHE and reassigned to some family
with real housing needs.

Many of these situations result from the fact that
people were resettled from the Single Quarters without
establishing very clearly that they would have to pay for
the land. They were permitted to stay without any repayment
for an initial period of six months: in practice they have
been there for much longer practically for free, and some
have the perception that the land was given to them by the
Government. This perception is already affecting cost
recovery in other areas: the Community Development Workers
reported that in the Onghuwo ye Pongo community, where
contracts for the purchase of plots were signed last year.
Many households are not willing to start repayment as long
as the other resettled groups are not paying.

- 11 -

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PROGRESS REPORT 2-06/93-CHP. 2

additional loan application, for organizing and monitoring
construction were developed (see OM).
_ A price competition among building-materials suppliers
was organized by the Programme Coordinator, prices
evaluated by the SCAs, and decisions made on which Supplier
would provide which materials. Basic procedures for
requesting, delivering on site and paying for materials
were established and agreed with the suppliers.
- NHE invited builders that could be interested in the
work to submit prices for construction of the different
solutions. Although only three applied initially, it was
possible to establish a cost for families wanting builders
assistance. Within this cost range, the families will have
the opportunity of appointing a builder of their choice or
selecting one from the NHE list of builders. CRIAA trained
builders will be offered the participation in the Project
in this fashion.
- The question of how to distribute water costs between
builders and non-builders was discussed with the
communities. As construction starts, water consumption by
some families will increase significantly, a potential
source of conflict as water is obtained from communal taps ©
and paid by all community members in equal shares. The
communities suggested to reserve some of the existing water
taps for construction purposes; water bills for these taps
Will be paid by households using water for construction
(see also 2.5)
_ In many places survey pegs were missing; NHE personnel
and the SCAs have spent time relocating them as plot
boundaries need to be clearly identified in order to place
the new construction;

The pilot experience proposed for Onguwo Ye Pongo
could not be developed as it was found that most households
that purchased the land last year were in arrears with
their loan repayments. Regular repayment of loans already
granted would be a strict requirement to extend a new loan
for the starter solution. The first starter solutions are
now being defined in the Freedom Land area, it is expected
that construction can start by early August.

The process of implementing the starter solutions will
follow the selling of the plots. At the time of re-
assessing affordability, the CDWs will identify households
that can also afford a starter solution and pass the
information to the SCAs who will be the promotors of this
process. The chart in page 17 summarizes the procedures.

Reassessment of potentia Or starter solution:
The information on household income collected in

Freedom Land is analyzed below. When provisions for the
most vulnerable group are made (those who have a monthly
income below R 415), this data may be extrapolated to
encompass all households in the upgrading project,

~ 16 -

CDW PREPARESLIST OF PEOPLE WITH EXCESS AFFORDABILITY BY AREA

¥ o

SCA STARTS PREPARING WORKSHEET#2 IN OFFICE, IDENTIFIES

AFFORDABLE OPTIONS AND GETS SITE PLAN

SGA MAKES APPOINTMENTS WITH PEOPLEONLIST FOR INDIVIDUAL

MEETINGS

v
SCA HAS INDIVIDUAL MEETING(S) WITH HEAD OF HOUSEHOLDIN ORDER

TO:

@ EXPLAIN PROGRAMME

® MENTION OTHER OPTIONS

® COMPLETE WORKSHEET#2 IF HH INTERESTED

® GET CONTRACT SIGNED BY HH- INCL 10% SAVINGS COMMITMENT

Y
FIN. DEP. MONITORS SAVINGS AND GIVES ORDER TO PROCEED AS SOON

AS REQUIREMENTACHIEVED
¥

SCA PREPARES SKETCH OF EXISTING STRUCTURES, OBSTACLES ON ERF

AND ENVISAGED STARTER SOLUTION, AGREED BY CLIENT

y
IF BUILDER IS NEEDED, SCA IDENTIFIES/APPROVESHIM. SCA PREPARES

WORK SCHEDULE
Yy

PROGRAMME COORDINATOR ISSUES LOAN VOUCHER

v

SUPPLIER DELIVERS MATERIALS TO SITE

7
CLIENT STARTS BUILDING, WITH CLIENT STARTS PAYING
SETTING OUT SUPERVISED BY INCREASED INSTALMENT

SCA
¥

SCASUPERVISES
CONSTRUCTION: ACCORDING MONITORING OF REPAYMENTS

TO SCHEDULE?
YES: SCA NO: SCA
APPROVES WORK PREPARES NEW
PROGRESSAND SCHEDULE
NEXTVOUCHER

7

SCAAPPROVES COMPLETION
OF STARTER SOLUTION

TOOLSFOR FACILITATINGWORKOFSCA:-

ARTERLY PROGRESS REPORT 2-06/93-CHP. 2

permicting a more accurate estimate of repayment capacities
and potential demand in number and cost of starter
solutions.

HOUSEHOLD INCOME IN FREEDOM LAND
The following table represents the income distribution

of the 54 cases in Freedom Land whose worksheets # 1 were
completed in the first round, expressed in fractions of 1
PHSL (= R 830):

Monthly house- No. of
hold income cases %

R 0 - 415 7 13,0
416 - 498 2 3,7
499 - 581 7 13,0
582 - 664 8 14,8
665 - 747 7 13,0
748 - 830 7 13,0

831 - 913 4 7,4
914 - 996 - -
997 - 1.079 3 5,6

1.080 - 1.162 5 9,3
1.163 - 1.245 2 3,7
1.246 - 1.328 1 1,9
1.329 - 1.411 - -
1.412 - 1.494 - -
1.495 - 1.577 1 1,9
1.578 - 1.660

Total 54 100,3
The smallest monthly income was R 250, the biggest Rs

1.500; the median income was Rs 700, the average Rs 738
which shows a slight upward bias. 70 % of the households
have a monthly income up to 1 PHSL, 30 % between 1 and 2
PHSL.

These incomes are higher than the ones analyzed in
Annexure 2.1/c of Quarterly Progress Report 1 on the basis
of the information given in the application forms last
year. One reason may be that Freedom Land residents are a
little better off than the households of the other
upgrading areas. It is also likely that the covered group
has consolidated more in one year than many of the above
mentioned special cases. The recent income data of Freedom
Land confirm the analysis included in Annexure 3/A of the
Inception Report.

- 18 -

REPORT 2

POTENTIAL NUMBER OF STARTER SOLUTIONS

"Excess payment capacity is defined as the amount of
household income available for repaying a starter solutions
loan after deducting the monthly payment obligations for
the erf loan and municipal charges.

The following table analyzes the estimated payment
capacity and prospects for starter solutions on the basis
of information collected in Freedom Land. It is based in
the following assumptions:
_ A basic erf cost of R 80 per month (repayment of NHE
loan plus municipal charges), independently of individual
subsidy amounts;
- No more than 20 % of HH income is spent on housing;
- 50 % of those with payment capacity will apply for a
NHE loan to finance a starter solution;
- A maximum loan amount of Rs 16000 for starter
solutions.

Av. loan Inc. Est. Total

Monthly HH Excesspayment amount dis. no. loan
income R Range Avrg. (Rx1000) % appl. Amount

O- 415 0 0 0 20 0 0
416- 498 3 - 20 12 791 6 30 23.730
499- 581 20 - 36 28 1.845 10 50 92.250
582- 664 36 - 53 45 2.965 13 65 192.725
665- 747 593 - 69 61 4.020 12 60 241.200
748- 830 69 - 86 718 5.140 11 55 282.700

(1 PHSL) errrrrrrrrrrrrrrrrerrrrrr

831- 913 86 - 103 95 6.260 9 45 281.700
914- 996 103 - 119 111 7.315 6 30 219.450
997-1079 119 - 136 128 8.435 4 20 168.700

1080-1162 136 - 152 144 9.489 2 10 94.890
1163-1245 152 - 169 161 10.610 1 5 53.050
1246-1328 169 - 186 178 11.730 1 5 58.650
1329-1411 186 - 202 194 12.784 1 5 63.920
1412-1494 202 - 219 211 13.904 1 5 69.520
1495-1577 219 - 235 227 14.959 1 5 74.795
1578-1660 235 - 252 244 16.000 + 1 5 80.000
~(2 PHSL)--------------------------------------------------
Over 1660 300 16.000 + 1 5 80.000

Total 100 400 2077280

The analysis suggests the need to revise both the
number of starter solutions and the average loan amount to
be taken into consideration in the budget revision. The
estimated number of starter solutions should be reduced
from 600 to 400, the average loan amount should be
increased from R 3.000 to R 5.000. Accordingly, the total
amount in the corresponding budget item should be
increased from Rs 1.800.000 to Rs 2.000.000.

- 19 -

ARTERLY PROGRESS REPORT 2-06/93-CHP. 2

At the end of April VWL Namibia Inc. Consulting
Engineers was appointed by NHE to deal with infrastructure
upgrading in Sectors I, II and III. (Except Shipena Eimbeck
sectors IV and V are already serviced areas). NHE
instructed VWL to develop the engineering design
considering future tarring of roads and full water and
sewerage reticulation. Also at the end of April the
Municipality formally confirmed to NHE that roads in
Okuryangava need not be tarred.

VWL submitted a preliminary work programme aiming at
completing the technical work and starting construction in
Sector I in early September, gradually extending
engineering design and construction to other sectors.
However, by simplifying the tender procedures nearly a
month could be saved: there is a limited number of
contractors in Windhoek handling the kind of work involved
in infrastructure development; with KfW's approval NHE
decided to assign the job through a price competition at
which all potential contractors will be invited.

Invitation to potential contractors began at the end
of June; price quotations are expected by July 28 and works
are now programmed to begin in early August. Installation
of lights in internal streets is being coordinated with the
City Electrical Engineer and will proceed once the roads
are built. Annex 2.1/c gives details of the proposed
designs for roads, water and sewerage networks and other
relevant information regarding infrastructure upgrading.

WATER AND SEWERAGE

The Programme envisaged the extension of communal
services: additional stand pipes and communal toilets,
requiring additional water and sewerage lines. In early
June, in response to a request by the Programme Team, the
Municipality informed NHE that it has decided to cooperate
in the upgrading of infrastructures by financing the costs
of materials for the water and sewerage reticulation. This
cooperation opened the possibility of achieving full water
and sewerage reticulation instead of partial upgrading.

The matter was thoroughly discussed within the Project
Team. As the resolution of this issue was deemed to have
consequences for other NHE programmes, it was submitted to
NHE Management Committee for final decision. After
evaluating the pros and cons a paper recommending full
reticulation was prepared and presented to the Management
Committee (Copy attached as Annex 2.1/d). NHE's management
decided to implement full reticulation. As all erven will
now have a similar level of services, NHE established the
same selling price for all (Rs. 6.100).

- 20 -

Besides the contribution from the Municipality
estimated at Rs 363.000, this option will require
additional Rs.579.000, to be financed from KfW funds
through budget adjustments.

STANDARDS FOR INTERNAL STREETS

The road work will entail earth works to form the road
reserve to suit the cross section of a future upgraded
surface, and a 10 cmt. thick gravel wearing course.

Communitycenters
The shade structure for the Community Center in Sector

I was erected and completed by mid-April as scheduled. A
formal opening was held on the i3th of May, attended by the
Major of Windhoek, representatives from the German Embassy,
NHE, project personnel and over 200 community members. It
combined the announcement of the change in name from WLIHP
to "Oshatotwa Programme" that resulted from the name
competition (see 2.5).

An area committee has been elected to manage the use
of the structure, that up to now is used for meetings once
or twice a week. However, the use at night or in cold
winter days is limited; after evaluating the first two
months of operation the Programme Team has decided to
upgrade the structure by adding a closed room, toilet,
water and electricity.

NHE's application to lease land for a Community Center
in Plot No.1739 in Okuryangawa was finally approved by the
Municipal Council in its end of May meeting. There are
several formalities to comply before the lease may actually
be formalized (publications, Government approval etc), that
could delay several months the beginning of construction.
The Municipality has agreed to permit NHE to. start
construction at risk", after NHE submitted a letter
assuming responsibility for dismantling the structures in
the (unlikely) case of the Government not approving the
proposed use of the plot.

The originally selected location for the Greenwell
Matongo Community Center was not accepted, an alternative
Site was identified and formal application submitted to the
Municipality. Council's decision is expected at the end of
July meeting.

B. NOrK Programme ana targets Or next gquarte

Operational targets for the third quarter were
established by the Project Team through a participatory
planning workshop. Conclusions are summarized in_ the
following tables:

2i -

OSHATOTWA PROGRAMME-QUARTERLY PROGRESS REPORT 2-06/93-CHP. 2

UPGRADING PROGRAMME SALE OF ERVEN

ACTIVITIES OUTCOME ASSUMPTIONS RESPONSIBLE

Re-assess By end of August 60% of the erven CDWs

affordability Workksheet 1 comoltd are owner-occupied

for approx.600 HH

occupying erfs

Inform clients about 600 contracts Every one offered Inform: PA

contracts, sign them signed by Sept.10 an erf will sign Prep: NHE

issue cards tne contract Sign: J.Short

Hand over cards to 600 cards delivrd. CDWs

clients by end of Sept.

Monitor repayments Monthly reports pro- PC + NHE Loan

duced & evaluated on

repyt.on contracts

administration

Follow-up arrears,

particularly of

conditional group

Computer identifica-

tion of conditional sa-

les; lst.report on

team

Computer and

report: PC

Site visits:

arrears by end of Sept. CDWs

Field visit to those

in arrears

Identify unoccupy ied. Procedure established Procedures:

erven by July 7 to identify PC ,RZ,JAC

and deal with U.E.

List of U.E. for all

areas by end of July

List: PA + CDWs

Select & inform poten-Criteria to select

tial new ownsers new benefic. defined

by end of July

100 new potential

owners informed by

end of September

Define criteria

PC , JAC

Inform

potential

candidates:

CDWs

Sale of unoccupied 100 contracts signed At least 100 people CDWs,NHE Team,

and repossesed by end of October on waiting list PA, J.Short

erven respond positively

Foilow-up Snipena- 3 meetings with Muni- PC , JAC , AW

minbeck land regula- cipality, reassessmt.

rization situation report by end Sept.

PC: Project Coordinator, Wilfred Schulte

PA: Office Administrator, Pietrus Asino

CDWs: Comm.Dev.Workers: A.Tjirare, S.Shaningwa

SCAs: Self-help Constr.Adv., B Greig,E Mathias

DS:NHE Drawing Section

22

JAC: J.Crispo

RZ: Roland Ziss

DK: Don Kurtz

KMN: K.McNamara

AW: A. Walton

UPGRADING PROGRAMME STARTER SOLUTIONS

OSHATOTWA PROGRAMME-QUARTERLY PROGRESS REPORT 2-06/93-CHP.2

ACTIVITIES OUTCOME ASSUMPTIONS RESPONSIBLE

Identify potential Lists of potential CDWs
clients per clients are handed

area over to SCAs by end

of August

Contact client 200 potential clients A third of clients SCAs
contacted by mid-Sept. who purchased erven

can afford Str.Sol.

Define solutions 90 solutions defined SHCAs dedicate SCAs
for interested by end of Sept. most of their time
clients

to def. of Str.Sol.

Sign contracts 50 contracts signed PA + Team
by mid-October SCAS

Monitor savings 25 clients informed 50% of Str.Sol. PC
Inform when savings that their savings clients have SCAsS
completed requirements are

fulfilled by end Oct.

Savings completed

Locate starter solut.

On site; issue

voucher; supervise

and advise

construction

20 Str.Sol.on constr.

by end of October; 10

comp1eted

Third SCA hired

by Sept. list.

Not many clients

change mind after

signing contracts

Locate :SCAs+AW

Vouchers:PC

Superv: SCAs+AW

Prepare site plans

Submit to Mplty.

20 site plans submi-

tted by end of Oct.
NHE-DS

PC

Review progress,

revise programme

Performance evaluation

report by end of Sept.

Project Team

PC;AW

Develop new options

including wet core

Plans and cost

estimates

Prepare guidelines

for individual

connections

Booklet to distribute

ready end of Sept.

AW

NHE-DS

PC-AW-JAC

23

UPGRADING PROGRAMME

OSHATOTWA PROGRAMME-QUARTERLY PROGRESS REPORT 2-06/93-CHP. 2

INFRASTRUCTURE DEVELOPMENT

ACTIVITIES OUTCOME ASSUMPTIONS RESPONSIBLE

Clarify system for Procedures agreed with PC

reimbursement of Mpty. included in

materiais with tender documents if

Municipality necessary

Brief consultants Written confirmation PC, AW

on level of services, Complete by 12/07

agree on tender condit.

in particular

relations with Mplty.

Check and approve Complete by 15/07 PC, NHE-DS,

tender documents for

Area l

SUM-McNamara

Evaluate offers

Sign contract

At least 3 offers

received

Contract signed by

July 30

VWL-NHETS

Sign: J.Lehnert

Eval:

Inform commun.in Community meeting on/ At least 50% of CDWs ,PA

Area 1 that work will around July 28; cty. agrees with PC-brief

start; get sites explain cost full reticulation

cleared if required implication

Inform KfW on tender Fax 15/07 enquiring if AW, PC

procedures and tender docs. must be

result sent-Fax 30/07 on re-

sults (monthly report)

Monitor constr., Monthly reports on NHE-DS

approve payments progress & expenditure

Contract for Area 1

completed by end of Oct

SUM-McNamara

End Aug/mid Sept: Contract for next AW, PC

evaluate with VWL if area signed by end

more convenient new of September

tender or contract

extension

Coordinate with Work programme for AW

Municipality

street light constr.

installation of street

lights agreed end of

August

24

OSHATOTWA PROGRAMME-QUARTERLY PROGRESS REPORT 2-06/93-CHP. 2

COMMUNITY CENTERS

ACTIVITIES OUTCOME ASSUMPTIONS RESPONSIBLE

Complete construction PC+AW

drawings,tender, super-

vise construction

Extend Cty.Center 1 Works completed PC+AW

(Onguo Yepongo) ; by end of August

supply services

Build Cty.Center 2 Oshatotwa fiela teams PC+AW

(next to Mp1l.Offices move base of operation

in Okuryangava) to Center by end of

October

Sign lease for Cty. Completion by end of PC+AW

Ctr. in Greenwell October

Matongo; build and

service

PC: Project Coordinator, W. Schulte

AW: Andrew Walton, Field Coordinator

25

Z.2 CORE-HOUSE PROJECTS

A Evaluation of progress

TARGETS FOR QUARTER

Land acquisition
Approval of Municipal Council for selling the three

block plots identified for the Project was expected by end
of March.

Identification of the location and purchase of land to
develop a fourth core-house project was scheduled to
proceed during the second quarter.

approval or land subdivision plans

Final decision by MRLGH on the minimum plot size to be
used for the Project was expected by mid-April;

Approval of layout plans by Municipal Council was
expected by end of April; NAMPAB's approval for need and
desirability during May, Township Board and MRLGH's
official approval by the end of June.

Municipal decision on cooperation in development costs
expected by mid April;

An engineering consultant was to be selected and
appointed by mid-April; engineering plans and tender
documents scheduled to be prepared by the end of May

A land surveyor was to be selected and appointed
during May; preliminary survey work for the three sites
completed by early July;

Tenders for construction and contract award were to be
completed by end of June, and construction work for basic
earthworks and water and sewerage reticulation to start in
July.

select; e Piciari

The selection process was scheduled to begin in mid-
April and completed by the end of June; with beneficiaries
opening accounts at NHE and starting Saving the required
10% of their loans.

Preparation of preliminary alternative core-house
designs was scheduled during April, and municipal approval
obtained by end of May.

Adjustment of designs to individual needs of potential
beneficiaries was scheduled to begin in June, and site
plans submitted for Municipal approval afterwards.

REALIZATIONS, PROBLEMS ENCOUNTERED

In its meeting of March 31, 1993, the Municipal
Council approved the sale of the three plots that NHE

- 26 -

RAMME-QUARTERLY PROGRESS REPORT 2-06/93-CHP.

applied for the development of the core-house Project (see
Annex 2.2/a). Costs of land according to the Municipal
Council's resolution of 033193 are as follows:

Erf No. Area/m2 Unit Cost Rs/m2 Total cost Rs

41 Ok. 25.794 11,37 293.277,78

1373/74Kh. 25.692 18,71 480.697,32
1430 Kh. 39.627 18,71 741.421,17

TOTALS 91.113 (average) 16,63 1.515.396,10

In the first quarterly report it was assumed that
"selling prices for land to be purchased by NHE for the
project will remain within the amounts estimated during the
Inception Phase". The average cost per m2 of block land was
then estimated at Rs 15, giving a total cost of Rs.
1.366.695 for the 91.113 m2 in the 3 locations. There is an
increase of Rs. 148.701 oor 10,8% over preliminary
estimates. Although the price may be considered within the
estimated amounts, this increase will obviously add to the
selling price of the core-houses.

Potential locations to develop a fourth core-house
Project were discussed with municipal planners, that
Signaled three possibilities. The Project Coordinator and
the consultants inspected and evaluated the sites:

- GOREANGAB: It was discarded by the Team as it
presents problems to connect to the sewerage
treatment plant and is considered too far away.
- ROCKY CREST: An important piece of well-located,
block, undeveloped land will be transferred to the
MRLGH for housing programmes. The MRLGH intends to
incorporate private and public actors in a long-term
phased development, in a unique opportunity for
inter-institutional cooperation. NHE could probably
reach an agreement with the MRLGH to obtain land in
Rocky Crest for the fourth core-house project. The
main inconvenience seems to be the timing with regard
to the Oshatotwa Programme implementation schedule.
Coordination between MRLGH and other parties,
planning and development works required will most
probably demand more than one year before house
construction could start.
- OTJOMUISE: Both the municipal planners and NHE
suggested the possibility of using some of the
already developed land at Otjomuise for the fourth
core-house project. NHE has applied to the
Municipality for the purchase of some 450 plots for
future housing programmes in Otjomuise. Several
reasons, discussed below, led the Project Team to
select Otjomuise as best option available to continue
developing the core-house Project.

- 27 -

During the Inception Phase, the Otjomuise location was
not considered suitable for low-income housing, among other
reasons due to its distance to existing services and job
opportunities. The possibility of attracting higher income
households to Otjomuise was suggested in SUM's Technical
Proposal as a way to speed-up the development of services,
attain an improved urban environment and obtain a better
social mix.

At present NHE is preparing a tender for the
development of 103 middle-income houses, with prices
ranging from Rs 40 to 70.000, in some of the 193 Otjomuise
plots purchased last year. Further NHE housing programmes
will certainly be envisaged in the short term, and a
private developer already intends to build there another 60
middle-income houses. An urban environment is being
developed into which the core-house beneficiaries will it
Find easier to integrate.

The plots are fully developed, so no time will be
required for approval of lay-out plans and core-house
construction may start as soon as the land is available and
the site plan is prepared. NHE is prepared to supply the
plots assuming all the costs of land and land development
(that will be recovered directly from the beneficiaries).
In the fourth core-house project, KfW's grant money will be
used only for construction of houses and related costs; an
increased number of solutions will then result.

This question has been delayed for one month with
regard to last quarter's planning. NHE's request to be
authorized to develop land with 200 and 250 m2 plots was
negatively answered by the MRLGH in mid-April; a minimum
size of 300 m2 is to be used for the Oshatotwa Programme.
Besides other, more far-reaching adverse consequences, this
resulted in the need to withdraw plans already presented to
the Municipality for approval starting the whole process
again.

Revised layout plans were submitted at on April 26.
They were approved by the Municipal Council at its meeting
of June 30, 1993 (see Annex 2.2/b). The approval conditions
are different for the Okuryangava and Khomasdal locations.

- For erf 41 in OkKuryangava the Council accepts
gravel roads and assumes the costs of electrical
reticulation;
- For the Khomasdal locations the Council requires
tarred roads (thus increasing development costs), and
does not offer cooperation for electrical
reticulation. Discussions with the City Engineer Dpt.
to lower standards for internal streets are still
ongoing.

- 28 -

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NATIONAL HOUSING ENTERPRISE
6

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Krecanstalt
'& Wederautbou

SUM WeNemera Consuttants

OSHATOTWA
HOUSING PROJECT

prnmeamcnemnemromrereer

PROPOSED SUBDIVISION OF
ERF 41 OKURYANGAVA PROPER.

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LAYOUT AND AREAS

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OSHATOTWA

HOUSING PROGRAMME

PROPOSED SUBDNISION OF ERVEN
1573 & 1374
KHOWASDAL EXT. 15

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LAYOUT AND AREAS

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The Project Team has managed to speed-up NAMPAB's
approval for need and desirability, the lay-outs are
already submitted for consideration of the Township Board
and approval is expected by the end of July.

Messrs. C. de Wet, Baard & van Niekerk were appointed
by NHE as land surveyors for the Programme. Their initial
schedule envisaged to plot all roads center-lines on the
three sites, in order to allow the consulting engineers to
survey road. levels for the design of roads, sewerage and
water lines. Survey and pegging of plot boundaries is now
scheduled to be performed after basic roadworks are
completed, tentatively in November.

NHE requested CVs from 8 consulting engineer firms in
Windhoek in order to select one for the design works
required for the core-house Project. Lund Consulting
Engineers were selected and appointed in June. They have
prepared a work plan that envisages survey and design work
during July and August, tender in September and
construction beginning in early October. Efforts to re-
schedule the work programme in order to start construction
by mid-September are under way in order to complete the
works before the builder's holiday which start in mid-
December. (Preliminary work programme attached as Annex
2.2/c; construction time estimated at three months).

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This process has not yet started. It was not feasible
to establish accurate cost estimates, as some issues like
the size of the plots, municipal development standards etc.
were not solved. The project team then decided to suspend
this activity till the time that total cost, a basic
information to provide to potential candidates, was on
hand.

Preliminary core-house designs were prepared in the
first quarter. However, delays in the approval of lay-out
plans and in the selection of beneficiaries hampered this
task. Adjustment of solutions to individual needs and
presentation of site plans will now pass to the next
quarter.

Zoning regulations for Khomasdal impose the condition
that structures should have a minimum value of four times
the cost of the developed plots. This condition is in total
contradiction with and could have wrecked the core-house
concept for these locations. The Programme Team applied for
relaxation of this condition, obtaining a favorable answer
(related correspondence attached as Annex 2.2/d).

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