OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
I
n
=
2.1
2.2.1
2.2.2
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.3.6
2.4
3.1
3.2
3.2.1
3.2.2
3.3
3.3.1
3.3.2
3.3.3
3.4
4.1
4.2
4.2.1
4.2.2
4.3
4.4
5.1
9.2.1
5.2.2
5.3
5.4
6.1
6.2
6.2.1
6.2.2
6.3
6.4
7.1
7.2
7.3
9.1
9.2
TABLE OF CONTENTS
INTRODUCTION
UPGRADING PROJECT
Proposalin the Inception Report
Overview offirst year of implementation
Status
Implementation problems
Developments since October 1993
Land regularization
Starter Solutions
Infrastructure improvement
Community Centres
Community development
Household survey in the Upgrading areas
Revised work programme
CORE-HOUSE PROJECT
Proposal in the Inception Report
Overview offirst year of implementation
Status
Implementation problems
Developments since October 93
Land development
Core-house construction
selection of beneficiaries
Revised work programme
LOAN GUARANTEE FUND
Proposalin the Inception Report
Overview offirst year of implementation
Status
Implementation problems
Developments since October 93
Revised work programme
BUILDING MATERIAL LOANS
Proposal in the Inception Report
Overview offirst year of implementation
Status
Implementation problems
Developments since October 93
Revised work programme
INSTITUTIONAL DEVELOPMENT
Proposalin the Inception Report
Overview offirst year of implementation
Status
Implementation problems
Developments since October 93
Revised work programme
FINANCIAL
State of accounts
Adherenceto disbursment schedule
Update of Programme budget
STATE OF FULFILLMENT OF CONDITIONS
CONSULTANTS
Services rendered October 93/March 94
Schedule adjustment
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OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
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ANNEXURES
Minutes of Meeting, KfW mission February 1994
Documentation on evaluation and planning workshop
Costs of Starter Solutions
Information on household survey plannedfor the upgrading areas
Budget run establishing selling prices for Otjomuise core-houses
Evaluation of tenders for land development
Operational forms of LGF
SWABOU's press ad on LGF
Draft proposal on revised concept for Building Material Loans
Draft operating procedures for revised BML scheme
Information regarding training trip to Botswana
Information regarding Basic Management Training Course
Evaluation papers prepared by CDCs
ABBREVIATIONS USED
Building Material Loans
Community Centre
Community Development Coordinator
Chief Technical Advisor
General Sales Tax
Household
Kreditanstalt fur Wiederaufbau
Loan Guarantee Fund
Man Month
Ministry of Regional and Local Government and Housing
Non Governmental Organization
National Housing Enterprise
Namibia Dollar
Primary Household Subsistence Level
Quarterly Progress Report
Self-Help Construction Advisor
Self-Help Housing Agency, Gabarone, Botswana
Senior Manager, Finance, Planning and Control
Senior Manager of Technical and Social Services
Starter Solution
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 -OCTOBER 19937MARCH 1994 CH.-1
1. INTRODUCTION
This Progress Report No. 4 is submitted by SUM-McNamara
Consultants to the National Housing Enterprise, with copies to the Ministry of
Regional, Local Government and Housing and to the Kreditanstalt fur
Wiederaufbau in accordance with Paragraph 2.2.3 of the Consulting
Contract dated July 16, 1992. It covers the progress accomplished from the
1st of October 1993 through the end of March 1994.
The Report intends to provide a comprehensive view of the Oshatotwa
Programmeandits situation after completing the first year of implementation,
focusing in the intermediate evaluation done in February. Chapters outline
the Inception Phase proposals, describe achievements as of March 1994;
the implementation problems encountered; progress since October 1993 and
present a revised implementation schedule for each sub Project and
components. A budgetrevision is proposed to adjustit to the major changes
subsequentto the evaluation.
KfW mission
Between the 15 and the 26 of February a KfW mission headed by Dr.
Johannes Bickel and including Mr. Gerd Redecker visited Windhoek to
review on site Oshatotwa progress and make preparations for a second KfW
financed housing Programme in Namibia. The mission detected
implementation delays, particularly with regard to Starter Solutions:
inconsistencies in the application of affordability criteria, difficulties with cost-
recovery and implementation problems with the Loan Guarantee Fund and
Building Material Loans components. The Minutes of Meeting with KfW's
mission main findings are attached as Annex 1/a.
Evaluation and planning workshop
A two days evaluation workshop was held at the Training Centre of
Rdéssing Foundation in Khomasdal on February 21 and 22, 1994. The
objective was to evaluate the first year of implementation, revise the
Programme if necessary and plan execution till the end. Altogether 24
persons from various institutions involved in the Programme participated,
including 2 Regional Councilors and representatives of the communities,
NHE, the MRLGH,the Municipality,SWABOU, KfW and the consultants.
The workshop adopted the sameparticipatory method as the one held
during Programme inception, using visualization techniques which stimulate
active involvement of all assistants and allow full docurrientation of the
results. An-outline of issues discussed and major conclusions follows; a full
report is attached as Annex 1/b.
e What have been planned
Presentation by the Chief Technical Adviser: Programme objectives
and expected results as defined in the planning workshop of Nov. 1992 (see
Annex 1/a of Inception Report).
OSHATOTWA PROGRAMME- PROGRESS REPORTN° 4 - OCTOBER 1993/MARCH1994 - CH.1
wee oat
e What had been achieved?»
Presentationbythe Sea Coordinator: Programeachievernents
to February 1994. |
e Problems of: implementation -mcg hogs os
Plenary discussion:to identify;the: main problems of;implementation.
Detailed analysis ofthese;problems. in working. groups. Presentation .of
problem analysis and discussionin plenary. The main problem identifiedwas
statedas the number.of households havingimproved their housing situation
is less.than planned, Pointingtto> implementation delays. mo
.
e Objectives 7 Eee SS ne = Ses
The previouslyesfablished objectives were:still Considered valid:The
superior goal was confirmedas: To improve theliving conditions® of low-
income households through replicable and _sustainabie housing
developments within the framework of the National Housing Policy". and the
indicator of success stated as: By the end of 1995, the basic principles of
the Oshatotwa Programme are incorporated into new projects which are
planned or implemented without major financial assistance from the K
The Programme objective To improve access to housing for low-
income groups applying new approaches and encouraging the participation
of the community and the Public and Private Sectors", was maintained, and
the indicators adjusted as:
By the end of 1995, 1.500 households (clients of the Programme) with
incomes up to 3 PHSL have improved their housing situation
(legalization of tenure and services and/or houses.
Arrears for core-houses, building material loans and starter solutions is
less than 20%
Through NHE efforts, at least 50% of the clients are paying regularly
for their erven in the upgrading areas.
e Major changes
The workshop confirmed some previously proposed modifications and
introduced several adjustments:
The implementation period was extended from 2 to 3 years, The main
reason are the innovations of the Programme which take more time to
be assimilated by NHE than anticipated. Another reason is that NHE in
1993 was extremely busy withother projects and did not have sufficient
personnelavailable.
The total number. of beneficiary households is expected to increase
from 1.200 to 1.500.
~ Asthe Building Material Loans component did not take off yet, the
original concept will be revised to include target groups notinitially
envisaged for this stage of execution and to modify access conditions
for households in. the upgrading areas. The envisaged numberof
average loans was reduced to 300.
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 -OCTOBER 19937MARCH 1994 CH.-1
Although no Loan Guarantee Fund secured Joans have so far been
issued by the building societies, the basic-idea"is?stillconsidered
worthwhile. NHE will support an effort toget it off the ground with a
the risk cover conditions, proper marketing directed.-towards potential:
clients, developers and eniployers:Ifthe.résults arenot-convincing by
the end of: 1994;.the.-LGF-will ber discontinued and the money
reallocated © ~*~ 3, 5:
-~ As a Programmeactivity institutional development: has -.. been
significantly modified. On oné hand an increased effort has to be done
to facilitate the internal changes that NHE requires to run. the
Programme.effectively. The. perspective .of an increased demandfor
this type.of programmes require an increased effort regarding revision
of standard procedures, work organization, monitoring, communication
and human resource development. On the other hand the possibilities
of effective cooperation with other institutions, overestimated in the
past, have been reassessed.
° Conclusions
The workshop has provided a forum to discuss openly the problems of
implementation and reorient future action with the approval of the main
actors involved. NHE has used the opportunity to promote transparency and
share implementation experience with the other related institutions. The
Programme Coordinator and Financial Assistant who did not participate in
the original planning do now identify with the Programme's objectives and
basic principles.
Note 1: Rate of exchange in March 1994 was of 2 N$ = 1 DM. At the end of 1993, NHE reduced the
maximuminterest rate it charges from 17 to 16%.
Note2: Due to the timing of the consultant's mission, this report could not be prepared in Windhoek
before the CTAleft in mid March andthe draft could not be discussed with NHE as usual.
JACrispo 300494
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 -OCTOBER 1993/MARCH 1994 - CH.-2
2. UPGRADING PROJECT
2.1 Proposal in Inception Report
The Project is designed to improve housing conditions of some 960
families of resettled squatters living In shacks in destitute areas, gradually
bringing their settlements up to urban standards of comparable areas in
Windhoek. Its main components are: regularization of land tenure, offering to
each family that can afford it the possibility of a basic starter solution, the
extension of infrastructures and the construction of three community centers.
A strong community development effort is envisaged to support
implementation. The total cost of the Project was estimated at N$ 7.882.000,
with the following components: N$ 4.800.000 for the purchase of land, NS
832.000 for extension of infrastructures, NS 450.000 for the construction of
three community centers and NS 1.800.000 to finance 600 starter solutions.
The activities identified as required for the execution of the Project are:
Information campaign
Community development programme
Definition of individual priorities with each family
Assistance in regularization oftitles for land and establishment of
total cost of housing solution
Initial saving;
Signature of basic loan contract
Construction of community centers
Design, tender and construction of infrastructure improvements,
Construction of starter solutions through self-help and/or by local
builders;
Improvement/extension of starter solution with support from
building material loans;
The preliminary implementation schedule envisaged to combine land
regularization and the offer and construction of starter solutions in a process
lasting till the first quarter of 1994; to complete the extension of
infrastructurestill October 1993 and to build the three community centers by
september 1993. Further house improvement through building material
loans was scheduled to last till the end of the Project, after an initial trial
experience ending in July 1993. The supporting community development
effort was conceived as a permanent activity through all the implementation
period.
2.2 Overview offirst year of implementation
2.2.1 Status:
After 15 months of work,
All project land has been acquired by NHE
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH.2
Information about the Project has been widely disseminated
among the target group and the CDCs have developed a
relationship of trust with beneficiaries
~ Very good progress in community development has been
accomplished: communities are more stabilized, leadership is
more legitimate and grass root organizations are starting to
appear.
About 90% of the erven are sold to individual households, 136
pending cases are being processed
Upgrading of infrastructures is nearly completed in the
Okuryangava area
Two community centers are built and preparatory work for the
third one is well advanced,
Only 13 starter solutions are completed or under way, the process
is now picking up speed. 150 clients with employer subsidy
identified and their situation is being processed, 88 HH have
opened savings accounts at NHE
2.2.2Implementation problems:
Implementation is several months behind schedule; a summary of some
of the difficulties experienced (most of them already mentioned in previous
reports), might be useful at this evaluation stage.
e The resettlement process
The resettlement of nearly one thousand families from Single Quarters
was a massive endeavorfor whichlittle prior experience existed. The efforts
made by the MLRGHthrough the community leaders resulted in a relative
smooth and un-conflictive process. However, it appears that the difficulties
were notfully evaluated beforehand: Ownership of an urban plot, a concept
alien to many beneficiaries, was the sole alternative offered. Whether or not
it was established at the time, scant information was disseminated among
beneficiaries on ownership conditions, repayment, individual responsibilities
and possible future developments. Household affordability was not
evaluated before the move, and high expectations were raised. A numberof
people believed that the land was "given" to them by the government, an
impression affirmed by the more than one year elapsed between
resettlement and the beginning of land regularization by NHE.
These circumstances complicate the Project, particularly the task of the
CDCs that have furnished quite an impressive work to clarify the
misunderstanding. Despite their effort, many families still do not see as their
obligation to repay NHEfor the land received, and recovery of land cost will
probably remain below standard in the Upgrading areas. The resettlement
Operation was poorly recorded, and asfield work began,thefirst need was
to register the households occupying erven, not knowing whether they were
bona-fide families resettled from Single Quarters or somebody that had
occupied an erf afterwards with questionable credentials. This became
apparent when NHEstarted regularizing land as nearly 40% of the cases
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 -OCTOBER 1993/MARCH 1994 - CH.-2
were odd situations, as described in the QPR N°2, resulting in a big amount
of extra work notinitially envisaged.
e The innovative character of the project:
Adjustment to new situations for which no prior experience existed
within NHE's has taken longer than envisaged. The decision in May 1993 to
complete the process of land regularization (sale of erven) before offering
starter solutions may illustrate the point. Both processes could have been
handled simultaneously reaching from the outset a number of families that
were eager and able to afford theinitial solution. Instead, they had to wait
for the sale of land to be completed, (delayed due to difficulties in
establishing the selling price) and a further six month trial period after
signature of the deed of sale before they could apply for a starter solution.
Another problem identified in the workshop was stated as NHE is
mostly oriented towards its options" and as " the people do not trust NHE to
provide them with what they really need, but impose on them expensive
solutions". NHE has not yet fully assumed the concept of incremental
housing and there remains a tendency to build complete, traditional houses.
As of March 94, the minimum starter solution built consist of two rooms,
bathroom, kitchen and a terrace; most are even bigger. Although they
probably respond to the wishes andfinancial possibilities of these particular
clients, it does not seem that the simpler, less expensive solutions proposed
in the Inception Report are being offered. Active promotion of self-help
construction began only recently, the few starter solutions executedtill the
end of March haveall been realized through contracted builders
2.3 Developments since October 1993
The October 1993 work programmeestablished the following targets
Land
COMPONENT STATUS OCTOBER 1993 TARGETS FOR NEXT PERIOD
Land regularization 307 pending cases Sort as many cases as possible
Starter solutions 1 SS under construction at Freedom |50 SS on construction by end of
January 19904
Infrastructure upgrading Construction ongoing in phase|;
contract for phase |I under
negotiation
contract to be extended for phaseIl,
work to start by mid-November
Committee being organized; video"Life in the city" under production,
Community centers Extension of CC at Onguo ye Pongo Complete both structures, establish
and construction of Okuryangava site office at Okuryangava, remove
CC under way, squatters from Greenwell Matongo
CCsite, prepare plans and tender
construction by mid-November
Community development Onguo ye Pongo CC Mot. Assist establishment of 3 CC
management committees; improve
management of water taps and
public toilets; seek Regional
Councilors assistance; complete
video
An important development regarding this component was NHE's
decision, arrived at with KfW's mission agreement, to exclude from the
Project the Shipena Einbeck sqatter settlement, in view of constraints
concerning infrastructure standards and plot prices.
OSHATOTWA PROGRAMME - PROGRESS REPORTN° 4 - OCTOBER 1993/MARCH 1994 - CH.2
2.3.1 Land regularization
During most of the period the CDCs concentrated on resolution of
pending cases reducing their number from 307 at the end of September
1993 to 136 at the end of February 1994. However, new questions appear
as some owners abandontheir plot even after signature of the deed ofsale.
This requires additional work as the situation must be legally clarified and
another beneficiary identified and allocated the erf. Land management and
monitor use of the erven are going to be permanent Project activities,
supervised by the Office Administrator. From now onwards the CDCswill
reducethepriority given to land regularization; the target established now is
that "by end of 1995, 99% of the erven have been sold to legitimate
beneficiaries.
2.3.2 starter Solutions:
Till end of February 1994, only 4 starter solutions were completed, and
two additional loan applications were under study at NHE, a disappointing
result very far off the established target. An analysis of the reasons was
made by the team in mid-February, further complemented by the workshop's
evaluation. The following issues were pointed out as hampering the work:
An inappropriate "marketing" strategy, as only expensive completed
houses were offered and not all potential candidates were reached;
Confusion regarding the six monthtrial repayment period for the erf:
A bad assignment of personnel. The SCAs were alone responsible for
contacting clients. When construction of the initial four houses began,
they were absorbed by this work and discontinued the "selling"
process;
~ There was confusion with the situation of governmental employees
eligible for housing subsidies and therefore wanting completed houses,
the way to repay their erf loan also neededclarification
There were problems to provide water for construction, as water is
coming from public taps and consumption is paid by all community
members;
In some _areas, infrastructure development works prevented
construction because of restricted access;
Affordable clients contacted did not completetheir initial savings;
Most of these problems can be solved internally by the Oshatotwa
Team. A new "marketing" strategy is now under way. The component will be
extended to all areas; information meetings are held three times a week to
explain the starter solution option in relation with affordability, repayment
performance etc. Since mid-February another 8 starter solutions are
completed, bringing the total up to 12, and 88 households have opened
savings accounts at NHEfor this purpose. The following table provides a
break-down of 5/7 of these accounts out of a computer run dated March 11:
SAVINGS RANGE N$ Up to 120 120/600 600/1 400 1400/1580 Over 1580
NUMBER OF CLIENTS 38 14 3 1 1
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 -OCTOBER 1993/MARCH 1994 - CH.-2
The pattern that seems to be developing is that the clients start with a
small amount in their savings account, make a few small deposits, then save
up a lump sum, sometimes over N$ 1.000.000, and bring it to NHE to
complete their deposits.
Approximately 115 participants in the Upgrading Project are
government employees (11% of the total erven occupants) and as such,
entitled to housing allowances. With their housing subsidy, most of them
can afford complete conventional houses, (with price ranges that may go up
to N$ 50 of 60.000), and therefore are not motivated for starter solutions.
However, the Oshatotwa budget is not designed to finance such expensive
houses (less than 50 housesin this cost range could be built from the Starter
Solutions budget post). The possibility of extending to these households
conventional NHE finance and assistance from the Oshatotwa Team to
manage the process is being analyzed. The loans, guaranteed by the
Government, could be transferred ("sold") to one of the Building Societies
after construction. It would help the improvement of the areas to have from
the outset completed houses among the more modeststarter solutions.
Before the government employees can be assisted by the Programme
some issues need clarification. Practically none of them started repaying the
erf loan, as they expectit to be included in the same package as the house
construction loan, but inclusion of arrears is not acceptable in the housing
allowance, designed for the purchase of a finished house and not for
incremental developments. Subsidy conditions vary among different
agencies. With the purposeofclarifying the issue, a series of meetings was
held, from November through February, between the Oshatotwa team and
Public Service Commission staff. In March, the Public Service Commission
asked for NHEto prepare a written background documentbefore it could act
on the request, and suggested that NHE might just want to proceed on an
"ad hoc" basis for such a small number of persons. The Oshatotwastaff is
now recommending NHEto proceed onthis basis, automatically combining
erf price, any arrears and re capitalization, and the house cost, into a single
loan package.
The average construction cost for a starter solution was estimated at
N$ 5.300 in the budget, assuming a range from N$ 1.000 to N$ 10.000.
Selling prices for the solutions actually being offered are in the range from
N$ 6.800 for an A2 to N$ 17.000 for an A10. Options like bath, wet core,
utilities connection fees etc. can bring these costs up. Annex 2/a provides
details on these prices. To reach the majority of households in the
Upgrading Areas, the concept of incremental housing development should
be strongly promoted by thefield staff. Simplerinitial structures and self-help
construction will reduce costs and permit households with much lower
income to improve their present situation and really begin the process of
house development. In view of the increase in unit costs, and of the target
established in the workshop, for budget calculation the number of SS is
scaled downto 300, and their average cost is up to NS 7.000.
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH.2
2.3.3 Infrastructure improvement
All initial problems delaying progress are overcome, and execution of
this component is advancing well. Construction works in Phase | (internal
streets, water and sewerage lines and storm drainage) was completed and
received by NHE on February 25, 1994, with some delay with regard to the
contractual schedule. A penalty of N$ 7.500 was applied. Thefinal contract
amount was of N$ 766.004,55, saving N$ 77.536,45 with regard to the
tender amount. The exact amount to claim from the Municipality for materials
to be reimbursed as per agreement was being established by NHE.
At the end of October 1993 it was decided to extend for Phase II Herma
Bros. contract, accepting some escalation increase in basic rates. The total
contract amount, including contingencies, was of N$ 1.240.268,68. Work
began on November 15, 1993, and was expected to be completed by end of
April 1994. Despite heavy seasonal rains and complications due to
topography and soil conditions, as of mid-March 1994 the task was
progressing satisfactorily, and some N$ 460.000 in certificates had been
submitted to NHE by the contractor.
To complete the envisaged improvements, street lights are to be
installed. NHE has negotiated with the Municipality the execution of the
work, and the City Electrical Engineer was waiting for completion of the
internal streets to begin. NHE is following up, and expects that the
Municipality can include the job in its work program for June/July.
The Municipality must also complete one internal street and other
pending developments in the Greenwell Matongo area. As of the last
discussions, they were envisaging the execution of these works during the
third quarter of 1994. The Project Coordinatoris following up the matter.
2.3.4Community Centres:
e Onquo ye Pongo:
The extension works were completed in the last quarter of 1993. At
each side of the original shade structure a large room was added,andtoilets
complement the installations. The strategy of organic growth has proved
valid, and the center is gradually becoming a useful community development
tool. With assistance from the area CDC, a Management Committee has
been established and several permanentactivities are under way:
A community managed kindergarten operates daily from one of the
rooms; the créche committee has opened a savings account at NHEto
finance a future extension
The other room is being used as a temporary site office by the area's
CDC and SCA, for community meetings, promoting starter solutions
and land regularization and other project activities;
Community meetings for a variety of purposes are held in the shade
structure, that also houses choir practices and, on week-ends; church
services;
10
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 -OCTOBER 1993/MARCH 1994 - CH.-2
The Center has also been used for health and immunization campaigns
operated by the Ministry of Health with support from UNICEF
~ The Management Committee has promoted and implemented a
cleaning and grass cutting campaign to improve the Center's courtyard.
The total amount invested in construction till March 1994 is of NS
54.892, out of which N$ 48.115,53 have been paid out of KfW funds, some
N3 4.000 were retained as guarantee and the balance is GST paid by NHE.
As the original budget was of N$ 150.000, there is still scope for upgrading
the center within the incremental development strategy adopted. One
possibility now being explored is the cooperation with grass _roots
organizations willing to use the center for their activities. A group of
handicappedartisans from EHAFO intends to build a small workshopin the
yard; a proposal to match with project funds any funds they may raise for this
purpose was madeby the CTA andis being evaluated by the group.
e Okuryangava:
Construction of this Community Center next to the Municipal Offices
began last September, and was practically completed in December 1993.It
is a bigger and more complex structure than the CC 1, as from the beginning
it was conceived as a temporary site office. In January 1994, part of the
Oshatotwa Team (CDCs, SCAs, Office Administrator and the Consultant's
Field Coordinator) moved there, bringing the team's activities much closerto
the beneficiaries in the Upgrading Areas. A Management Committee is in the
process of being organized, and the Center is starting to be used for
community meetings and church activities.
A formal opening ceremony was organized by NHE's Public Relations
Division on February 9, 1994. Mr. Erasmus Hendjala, Regional Councilor of
the Hakahana area, Dr. G. Schumacher, Ambassador of the Federal
Republic of Germany and Mr. Shitenda Petrus Imene, Chairman of the
Oneleiwa Community Committee addressed the attendants, that included
representatives from the Municipality, the community and NHE personnel.
The total tendered cost for construction was of N$ 145.000, including
N$ 10.000 for contingencies. Up to March 1994, N$ 129.476,57 were paid,
including N$ 1548,65 in miscellaneous expenditures (tender documents,
rentals etc.). Part of the unused funds are now being utilized to install racks
and purchasefurniture that will remain in the Center once is handed over to
the community.
° Greenwell Matongo:
The construction of this center was delayed due to the fact that two
families were squatting on the plot assigned by the Municipality. Through the
efforts of the area CDC, in February they agreed to move out. A
management committee is being developed, and its members are
participating in the design of the center. They have visited the two existing
Oshatotwa centers and are indicating community needs and interests to the
Field Coordinator, who Is preparing the project and tender documents.
Tenderis envisaged for next May, with construction to begin in early June.
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OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH2
2.3.5 Community development
Community and leadership activities are now spearheaded by the two
Regional Councilors in their respective constituencies. They were initially
invited by the CDCs as support resources for community organization in the
Project areas. As the Regional Councilors grew in understanding of this role,
they took over the leadership in community organization, not only with areas
of the Upgrading Project, but throughout their region. The draft community
by-laws prepared by the Community Development Advisor in July 1993 has
been used as an aide by both these Regional Councilors (and by at least
one other Regional Councilor as well).
In October 1993 it was decided to assign specific area responsibilities
to each one of the Community Development Coordinators; in February 1994
the idea to also team the SCAs with the CDCs by geographic areas was
implemented. The teams and their areas of responsibility are listed below:
AREA CDC SCA
Nangolo (and Ehafo), Oduduluka, Onyeka |AuneTjirare Attie Swartz
and Onghuo ye Pongo
Epandulo, Freedomland, Joseph Nepando Petronella Taaru Brian Graig
and Onheleiwa
Greenwell Matongo Sofy Shaningwa Ernst Mathias
Besides their work on land regularization and starter solutions, the
CDCs continued a variety of community organizational and motivational
activities.
They have been active catalysts for the use of the community centres
and assisted in the reorganization efforts of three community
committees. At Onghuo ye Pongo, a new committee was elected, with
some members returned to office and new members elected. In
Onheleiwa the entire committee was re-elected to office. In Greenwell
Matongo, elections were agreed upon, to be held after the current
committee solves the arrears situation on water payments to the
municipality (the community felt a newly elected committee shouldn't be
burdened with this problem).
They assist the community kindergartens operating in the Onghuo ye
Pongo and Freedomland areasin liaison with the Council of Churches
of Namibia, which provides training and other support to community
groups setting up creches.
They continue to monitor and encourage municipal water fees
repayments, that are now up-to-date in all areas except in Greenwell
Matongo and Joseph Nepando (where the arrears amounts are at least
no worse than they were at the end of September), .
They have helped in promotion of the community clean-up campaign
that is in part sponsored by the Coca Cola Co.
They have contacted the Credit Union of Namibia, which with the
building and functioning of two community centres now has physical
structures within which to operate in the Okuryangava and Onghuo ye
Pongo areas. Some communities are interested in savings clubs, but
12
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 -OCTOBER 1993/MARCH 1994 - CH.-2
lack confidence in themselves to assign "treasurers" to handle group
funds, especially personal monies. Support by the CDCsfor both these
types of savings activities continues.
They continue to promote understanding of urban home ownership
responsibilities among the people of the Upgrading Project, some of
whom seem to have a transient perception of their reasons to stay in
Windhoek. A video on life in the city was produced by the Programme
for this purpose. The English version is already available, and an
Ochivambotranslation is under way.
An interesting proposal that point to an increasing degree of community
consolidation was made by the community leaders attending the workshop,
that suggested that communities should be involved in the questions of non-
payment and evictions. They believe that their knowledge of individual
circumstances could assist NHE in dealing with the different kind of reasons
for arrears. It was decided to set up a task force, involving also the Regional
Councilors in order define a participatory enforcement strategy
2.3.6 Household surveyin the upgrading areas
During the evaluation and planning workshop it was suggested to
conduct a survey in order to update the knowledge on household
composition, income and housing preferences in the upgrading areas. A
better understanding of the target group will facilitate the organization of the
tasks ahead, basically identifying clients for starter solutions and building
material loans according to their needs and affordability.
A preliminary survey questionnaire was designed and test interviews
conducted in Onyeka in early March. With an adjusted questionnaire and
survey procedures, a 25% sample survey of all communities in the
Upgrading Areas will be conducted by the CDCstill the end of April.
Although only 13 interviews were completed and processed, the preliminary
findings are interesting to mention as a reference:
Size of households surveyed vary between 2 and 9 members, with an
averagesize of 5,2 (against 4,1 found in the Inception Phase).
Young adults, between 18 and 29 years of age predominate; although
there are still more males than females, the genderrelationship is more
. equilibrated than the one found in 1992 and the number of children
~~ also increased. an
Not a single case or"legal" marriage was found, only traditional
couples. In seven casesit is believed that reliable income information
was collected: 5 had incomes below 1 PHSL (N$500/750), and 2 had
incomes close to 2 PHSL. The per-capita income varies from N$ 100 to
450, with a median of N$ 187. The very high rate of savings found
during the Inception Phase was confirmed in the sample. / families
have formal savings accounts with more than N$ 1.000 deposited.
Except in one case, all other households interviewed expressed the
intention of remaining in Windhoek.
13
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH.2
Most of these preliminary findings point to a situation of households in
the process of gradual stabilization as urban dwellers. The final survey
questionnaire, a description of the test survey and its. preliminary
conclusions are attached as Annex 2/b
2.4 Revised work programme
An important conclusion of the workshop was the recommendation to
extend one year the implementation of the programme, in view of the initial
difficulties and consequent delays. It was felt that, although the Project was
gaining momentum, it would be difficult to achieve all the expected
objectives till the end of 1994. The Project's objective was confirmed as:
"Assist clients in building and improving homes, environment and community
on an incremental basis by promoting self-help within their needs and
affordability, and the following indicators of success, to be reached by the
end of 1995, were defined:
Sale of 99% of erven completed (total 1006);
300 starter solutions have been built, using second loan or BML. 30%
through self-help;
5 building groups established and operating in the upgrading areas;
100 government subsidized employees have built houses;
Well organized communal toilets and water points are available to
families unable to afford private connections at a density of no more
than onetoilet/water point per 20 households;
20% of erven have gardens, 25% of the houses are painted and there
are no heapsof rubbish lying around;
At least 3 community centers are self-managed, with minimal external
assistance and with on-going community activities (adult and health
education, loans and saving groupsetc.)
A work programmetill the end of 1995 was prepared. With the aim of
facilitating the appraisal of the development of the Project since the
beginning of implementation, the table in next page compares:
The original work schedule proposed in the Inception Report;
Achievements till end of March 1994, and
Activities programmedtill the end of 1995.
14
19 93 19 94 19 95
1st Qtr |2ndQtr {3rdQtr |4thQtr |1st Qtr |2ndQtr {3rdQtr 4thQtr [ist Qtr [2ndaQtr |3rdQtr 4thQtr
=PORT :
x
Tea]ccnp--
| TARGET 3/94: By end of 1995, 99% of ervensold to legitimate benefic.
jistration
eeseex
cases 700
171
eS jo __i__ iLiLEELL
Topastearcinncsingacincacinose ines =
IT TARGET 3/94: |Repayment of loans kept to usual NHE standards
s,Min
NHE 2
eS TEXPxePePS
TARGET 3/94: :By end of 1995, 300 starter solutions built
~~U4
___©x
help
res joi:LiL
NT TARGET 3/94:: Finishprogrmd imprvts.by end 94, coord.future improvts.
indards}| _-:_
culation _x
_ x
X
iction | a
ghts
/ll.Mat. __ei_
if need
»vts. meeewe ee we wm ne fe ow om om 4 __?
TARGET 3/94 [3 Cty. centers self managed/financed by end of 1995.
x
ure __x
dt __: x
ix
x
ae| ___xX
___] = x
| oO TARGET3/94 Community Center operating by end of August 1994.
a x
ty.wrk | __
ion __
_
es
TARGET 3/94 To further develop cty.capacity to manage ownaffairsa
pooix
ith etc) | oestLLLL
2 TARGET 3/94 {To update/improve understanding of HH needs,priorities
re | __
OSHATOTWA PROGRAMME - PROGRESS REPORT N° - OCTOBER 1993/MARCH 1994 - CH.-3
3.CORE-HOUSE PROJECT
3.1 Proposal in Inception Report
The Project target was the development of 400 core-houses in three
different locations. Over a 200 m2 serviced plot, simple cores of 18/25 m2
would provide appropriate initial solution where families would move and,
with post-occupancy technical, financial and social support extend/improve
their houses and develop their new communities. Three locations were
identified, two in Knomasdal and one in Okuryangava. There, with reduced
development standards, housing solutions with selling prices in the range of
N$ 20.000 would be developed and offered to beneficiaries selected from
the NHE waiting list. The total cost of the Project was estimated at NS
7.500.000, with the following components: N$ 1.480.000 for the purchase of
block land, N$ 1.120.000 for land development, NS 4.600.000 for the
construction of 400 core-houses and N$ 300.000 for the development of two
community centers. The activities identified as required for the execution of
the Project were:
Purchase of block land from Municipality at acceptablelocations
Introduce infrastructure and services at affordable standards
Information campaign
Screen and select applicants, assign individual plots
Organize initial savings
Tender, award of contracts, supervision of construction
Organize and support relocation of beneficiaries
Facilitate community development
Offer building material loans for house improvement and extension
Identify needs for community facilities and settlement improvement
The preliminary implementation schedule envisaged to complete most
of the land development and construction work during 1993, and dedicate
the second project year to the process of community development and
assisted house improvement/ extension through building material loans.
3.2 Overview of first year of implementation
3.2.1 Status
After 15 months of work:
Land was acquired for the development of 334 cores in four locations:
the three proposed in the Inception Report and an additional one at
Otjomuise, (where more developed land will be made available by NHE
if required);
Lay-out plans were prepared by the Project Team for the Knomasdal
and Okuryangava plots, and the required official approvals obtained;
Engineering consultants and land surveyors and were appointed,
technical designs for streets, storm-water drainage, sewerage and
waterlines prepared, approved by the Municipality and tenders called;
17
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH.3
The development of land (internal streets, water and sewerage lines
and storm-water drains) at Okuryangava and one of the Khomasdal
sites is ongoing and expected to be completed by end of April. Pegging
of individual erven at the Okuryangava site will begin immediately
afterwards;
The contract to develop the second Khomasdalsite was awardedat the
end of March to the same contractor; works will start in early April, and
land development will be completed by end of July 1994:
Installation of electrical reticulation has been negotiated with the
Municipality that will execute the works;
Some 500 potential beneficiaries from NHE waiting list were contacted
by mail in October 1993. 212 attended information meetings and 90
registered as clients. Another 80 registered as clients out of marketing
efforts outside the waiting list. All started their initial savings and over
50 had it completed by end of March;
In December 1993 NHE developed a new registration campaign, as a
result of which over 1000 new potential clients were included in the
waiting list. NHE is currently processing these clients and it expects
that before June would have identified a sufficient number of interested
householdstofill the total number of core-housesin the Project;
10 alternative core-house designs were prepared and submitted to the
Municipality for preliminary approval:
A tender for the construction of up to 105 core-houses at Otjomuise
opened in February. Beneficiaries that had already completed their
initial savings were invited by NHE to specify their final options
regarding plot and finishes, and construction of a first batch of 60
houses will begin in mid-April.
3.2.2Implementation problems
e Delays
The accumulated delay in implementation as compared with the
preliminary work plan is in the order of 9 months. The development of land
for construction of the core-housesis in the project's critical path; the time
required for implementation was originally underestimated and several
factors contributed to further delays. The Municipal Council approved the
sale of land for the Project only in March. Lay-out plans presented to the
Municipality on the assumption that the reduction of standards would be
accepted had to be withdrawn, new plans designed for 300 m2 plots and the
approval procedures restarted. The approval procedures themselves are a
complex process, involving several bodies (Municipality, NAMPAB,
Township Board and the MRLGH). Approvals for land subdivision within
proclaimed townships with zoning and planning criteria clearly defined, like
the block land purchased for the Oshatotwa Programme, could be
considerably simplified delegating approval authorization to the Municipality.
The increase in the minimum size of plots resulted in the need to
identify and acquire more land than originally envisaged. NHE rapidly solved
18
OSHATOTWA PROGRAMME - PROGRESS REPORT N° - OCTOBER 1993/MARCH 1994 - CH.-3
the problem putting at the disposal of the Project some of the already
developed plots that was purchasing at Otjomuise. The fact that one of the
Khomasdal plots had been used to deposit fill materials by the Municipality
resulted in the need to remove the fill and re-survey the plot before
preparing final engineering designs, delaying its development.
e otandards
NHE could not obtain authorization to implement the reduction in
development standards proposedin the Inception Report. In April 1993 the
MRLGH informed that 300 m2 was the minimum size of plot that could be
approved for the Project. The Municipality did not accept reductions in the
standards of design and construction for internal streets and, in the case of
the Khomasdal plots, imposed the condition that all streets should be tarred.
However, it accepted some simplified design criteria for sewerage and
electrical lines, and a reduction in the initial value of the houses to be built
in Knomasdal.
Despite these setbacks the efforts were not irrelevant. The accelerated
growth of squatting and informal settlements in Windhoek is focusing the
attention of the housing authorities in the need to explore incremental
development as a less expensive alternative. It is possible that reduction of
standards like the ones proposed for the Oshatotwa Programme will be
considered acceptable in future projects.
e Costs
The average cost of solutions originally envisaged has increased
substantially as a result of:
An increase of nearly 11% in the cost of bulk land purchased from the
Municipality;
Higher land development standards imposed,particularly plot sizes and
roadfinishes;
Escalation in construction costs;
The inclusion of bigger and more expensive options in addition of the
initial 20 m2 core.
The original concept of an incremental core-house has been modified
in the implementation process. Someof the units offered can not longer be
considered incremental cores but, for size and finishes, will look more like a
conventional house. Houses being offered at Otjomuise range from a
minimum size of 24,22 m2 (A core) to 47,62 m2 (C shell, D core). Basic
construction costs range from N$ 13.700 to N$ 29.500, and selling prices
including erf and other costs from a minimum of N$ 26.500 for a basic A core
to N$ 48.900 for a fully furnished F shell. In Khnomasdal, the higher
standards and cost of land will result in even higher selling prices (See
Annex 3/a). These cost increases result in the need to limit the numberof
solutions to the 334 already under way, as the grant funds can not be
increased (see chapter7)
19
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH.3
The Project wasinitially aimed at households earning between one and
two PHSL, with the increase in prices the target group had to be expanded
to encompass households earning up to three PHSL. From an original idea
of a simple, minimal but acceptable dwelling where a family could move
immediately, and in time improve/extend it, the Core-House Project is now
offering houses approaching NHE's conventional kind of solutions. Added to
the steep increases in land cost, this approach puts the Project out of the
financial possibilities of many potential beneficiaries. It is essential to scale
the solutions back to the original idea to reach the intended target group.
3.3 Developments since October 1993
Land development
Okuryangava erf 41, Khomasdal Engineering designs completed, Tender to open in November
erf 5841 tender advertised Construction to begin mid-January
1994
Khomasdal 1430 Engineering designs under Contract to be extended by mid-
preparation December 1993, construction to
start at same time as other erven
Otjomuise Erven evaluated and selected Land already developed
Core-house construction
Design Drawings completed and submitted Approval expected
for municipal approval
Tender/construction Tender documentation under Tender to be called mid-November,
preparation awarded early December,
construction to start early January
1994
Selection of beneficiaries
Define selling conditions Drawings,cost estimates,
preliminary selling prices available
Identify interested from NHE's 502invited to info meetings, 212 Register interested clients, start
waiting list attended savings
Identify other clients Potential groups being identified Additional clients identified by end of January 1994
3.3.1 Land development
° Okuryangava erf 41, Khomasdal erf 5841
A tender for the construction of water and sewerage reticulation
networks, storm water system and gravel and bitumen surfaced roads was
advertised at the end of October and closed on November 12. Three
quotations were submitted, and after evaluation, the job was awarded to
Namib Beton (Pty) Ltd on November 26 for an amount of N$ 990.287,16.
Site works were due to begin on January 12, after the Christmas holidays,
and last for three months. An evaluation of the tender offers is attached as
Annex 3/b.
Construction work began on January 12 as scheduled. However, after
four weeks (one third of the contractual term), at the arrival of the CTA at
Windhoek on February 7, little progress had been accomplished. On
February 15 NHE's SM-T&SS issued a stern warning to the contractor
establishing a 4 days period to proveits willingness and capability to perform
or be out of the job. The contractor reacted positively and by the end of
20
OSHATOTWA PROGRAMME - PROGRESS REPORT N%%4- OCTOBER 1993/MARCH 1994 - CH.-3
March it appeared that Namib Beton was going to be able make up the time
lost and complete the work on schedule.
° Khomasdal erf 1430
In view of the improved performance of Namib Beton, negotiations to
extend the contract to develop the remaining Khomasdal erf began in mid
March. The work was eventually awarded to them by NHEfor a total amount
of N$ 373.152,90, reflecting an escalation of 5,66% in basic rates due to the
labor and material cost increases in January 1994. Site work will begin on
April 5 with July 21 established as completion date.
3.3.2 Core-house construction
A tender for construction of up to 105 core-houses at Otjomuise was
advertised in November and four offers were received, one of which
proposed a technology of fibber-board panels that was not acceptable to
NHE. Due to the number of alternatives requested and lack of clarity in
certain aspects of the tender documents (for which SUM-McNamara
Consultants assume partial responsibility), the offers were not strictly
comparable. The three contractors whose offers had been accepted were
invited to a price competition with clarified tender documents. The new
tender opened on February 23 1994 and, after evaluation of the offers, the
job was awarded to Dentlinger Builders for a total contract amount of NS
2.930.800,00 including N$ 61.800,00 in contingencies. That makes an
average construction cost of N$ 24.000,00, well above the original
estimates.
Given the need for the clients to complete their initial savings before
actually signing their loan for a specific solution, construction work will
proceed in batches (of at least 30 houses), that NHE will command to the
contractor as enough clients have fulfilled the establisned conditions.
Construction work is scheduled to begin on April 11 with a first batch of 60
houses that will be finished and handed over to their owners around
September. A final completion date for the Otjomuise 105 cores has been
established for January 13, 1995.
3.3.3 Selection of beneficiaries
At the end of October 1993, a series of information meetings addressed
to households in NHE's waiting list was organized by the Oshatotwa Team.
Over 210 families attended and received information regarding Project
options. 90 expressed interest in participate, registered and began savings.
At a next stage, other potential clients, public and private employees, were
invited and another 80 households applied and were registered.
At the end of 1993, NHE organized a general registration campaign,
receiving over 1.000 new applications. In February 1994, the SM-T&SS
decided to bring the Division's resources to screen the new applicants and
help the Oshatotwa Team identify among them clients for the core-house
Project.
21
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH.3
The KfW mission detected inconsistencies between the way the
affordability criteria were applied and criteria established in the Separate
Agreement. This problem is now being corrected by NHE for new applicants,
but it would not be possible at this stage to exclude households that are
already registered for the Project and have completed their savings. A check
of affordability among 3/ cases show that more than 80% of them comply
with the right criteria (see chapter 8).
3.4 Revised work programme
The workshop confirmed the Project objective, Land has been
developed and core-houses built at appropriate standards that are affordable
and acceptable to the low-income group". The following indicators to
evaluate success were defined:
By the end of 1995, 334 families have moved to new settlements;
extensions and improvements on-going for at least 30% of the cores;
Where community initiative, financial and operational commitments
indicate demand, up to 2 community centers have been built.
A work programmetill the end of 1995 was prepared. With the aim of
facilitating the appraisal of the development of the Project since the
beginning of implementation, the table in page 23 compares:
The original work schedule proposedin the Inception Report;
Achievementstill end of March 1994, and
Activities programmedtill the end of 1995
OSHATOTWA PROGRAMME - PROGRESS REPORT N 4 - OCTOBER 1993/MARCH 1994 - CH. 3
CORE-HOUSE PROJECT 19 93 19 94
19 95
ACTIVITY 1st Qtr 2ndaQtr 3rdQtr 4thQtr 1st Qtr 2ndQtr 3rdQtr 4thQtr 1st Qtr 2ndQtr 3rdQtr 4thQtr
WORK SCHEDULE INCEPTION REPORT
LAND ACQUISITION
LAND DEVELOPMENT
Design, tender
Construction
CORE HOUSES
Design/tender
Construction
COMMUNITY CENTERS
Design/tender
Construction
ACTUAL PROGRESS/PLANNED03/ 94
PURCHASE OF LAND
LAND DEVELOPMENT
Decisions on plot size/develpt.standards
Approvalof lay out plans
Erf 41 Okuryang./erf 5841 Khomasdal
Engineering designs, tender
Construction
Erf 1430, Khomasdal
Engineeringdesigns, tender
Construction
Core-house construction
Alternative designs prepared/cost estim.
Preliminary municipal approval
Otjomuise
Tender called/adjudicated
Construction
Othersites
Tendercalled/adjudicated
Construction
SELECTION OF BENEFICIARIES
From existing NHE waiting list
Other potential candidates
Information/registration camapign
Screening of applicants interested in CH
Registration/initial savings
COMMUNITY CENTERS
Assessement of need/identification of erf
Design/tender
Construction
COMMUNITY DEVELOPMENT
BUILDING MATERIAL LOANS
TARGET 3/94
TARGET 3/94
x:
TARGET 3/94
x
i x
xX
TARGET 3/94
TARGET 3/94
90
80
__1000
By 2nd qtr. 1995 334 core-house
334
IConstruction work completed endof April 94
Construction work completed end of July 94
By Aug. 94, 60 core-houses finished, 105 by Jan. 95
s completed
Pre-selection camplete June 94; 334 clients by March 95
23
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 4
stage of planning and development, agreed with the rules of operation and
confirmed their interest in the scheme by signing contracts with NHE.
However, nine months after establishment of the LGF, not one guaranteed
loan has been issued. At the evaluation workshop the following reasons
were identified as hampering progress:
° General
Namibia's economy has deteriorated from positive to negative growth;
the risk level factor is higher today;
A weakfinancial discipline in Governmental housing subsidy schemes
negatively affects the issue of housing loans by the private sector;
Without information and encouragement, households in low-income
groups would not approach Building Societies;
e Regarding the Building Societies
There has been no changein the attitude of the financial institutions
regarding issue of loans to low-income groups;
The BS lack knowledge of economic strengths and weakness of the
target group;
The LGF is not aggressively marketed; only one press ad published,
with newspaper not being the more appropriate media to reach
potential customers:
There has been no motivation of developers to produce and putin the
market solutions in the cost range guaranteed by the LGF
e Regarding conditions established
The change in risk assessment makes insufficient the guarantee
coverage of 20 % provided by the LGF
Effectiveness of collateral is not acceptable
4.3 Developments since October 1993
NHE completed its internal requirements to operate the LGF and
printed the necessary forms and stationery (a set of forms attached as
Annex 4/a). On January 29, 1994, SWABOU published one press ad
advertising the LGF (copy attached as Annex 4/b).
At mid-February, a meeting was organized by NHE with both Building
societies to review the progress and evaluate the convenience of pursuing
implementation of this component. At the meeting it was suggested that one
possibility of getting the scheme off the ground was through the execution a
pilot programme. NHE would bring its resources and experience in dealing
with low-income clients and assist the Building Societies and a private
developer to implement it. A preliminary outline of roles for the different
actors to implement the pilot was preparedin early March:
e National Housing Enterprise
Will provide 20-30 proclaimed plots at Otjomuise;
Will provide intermediate finance for construction if the building
societies are not prepared to do so;
26
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 4
Will provide on requesta list of 100 potential clients for the developer
to contact:
Will control that all selected clients comply with KfW incomecriteria;
Could sell, on request, prototype houseplans;
Will increase, for the pilot project, the amount guaranteed through the
LGF from 20 to 30%.
° Building Societies
Will assist in the selection of beneficiaries, at least approving the
developer's selection; both building societies are invited to provide
clients, e.g. each one half of the total number:
If building societies prefer that NHE provide intermediate finance for
the construction period, they will take over from NHE the loans after
completion of houses:
Will evaluate experience and, no later than two months after
completion of project, will make proposals for continuation of
development of LGF;
° Developer
Will design houses according to maximum possible loan amounts (that
must include purchase of erf); alternatively he may purchase NHE
prototype plans;
Will market the project using either the list provided or any other mean,
making sure that clients are within approved income ranges, document
and register the sale. No governmental or other public employees can
participate;
Will build the houses, including tender, award of construction contract,
supervision of construction.
The Senior Manager FP&C is following up the issue, trying to identify
an interested developer and organize the pilot scheme along theselines.
After completion, the experience will be evaluated. NHE will decide before
the end of 1994 on whether to proceed with the LGF or cancel it and assign
the resources to other Programme components.
4.4 Revised work programme
The workshop confirmed the initial target: "The Private Sector is
actively participating in financing houses for low-income groups assisted by
the LGF," and the indicators revised as:
By the end of 1994, a pilot project of 20 houses has beenfinanced by a
Building Society using the LGF, plus 100 loan applications approved
for households in Windhoek with incomes up to 3 PHSL; and
By the end of 1995, approved by two Building Societies to households
in Windhoek with incomesless than 3 PHSL.
The expected results assume hat the Financial Institutions will accept
the LGF and approve changesin their lending policies and practices towards
low-income groups.
2/
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 5
5 BUILDING MATERIAL LOANS
5.1 Proposal in the Inception Report
The Windhoek Low-Income Housing Programmeincludes a Building
Materials Loan component (BML) to assist households in the improvementof
their housing situation according to their particular needs and financial
possibilities. Conceived as an instrument to support the Upgrading and
Core-house projects, the aim was eventually to extend it to encompass other
areas and low-income groups in Windhoek.
Relatively small loans (N$.500-3.500) at market interest rates, with
short pay-back periods (6 months to 3 years) would be offered usually in
building materials, although the possibility of cash loans was also envisaged.
According to the level of community organization, group loans for
infrastructure improvements, production of building materials or other
community priorities could also be considered. The activities identified as
required for the execution of this component were:
Prepare loan administration within NHE;
Prepare loan contract with conditions, terms of payment, securities etc.;
Identify and train construction advisors and community workers;
Information campaign;
Organizeinitial savings (individual or group deposits);
Prepare flexible system of materials supply;
Start material loans concentrating in one area;
Evaluate experience after one month and introduce modifications if
necessary;
Start loan disbursement in other areas;
Follow-up loan repayment:
Evaluate performance after one year: beneficiaries, uses, arrears,
assistance, etc., introduce modifications if necessary.
An amount of NS 4.025.000 was budgeted to issue 1000 loans. The
implementation schedule envisaged a period of two months ending in March
1993 to develop procedures and train personnel; a pilot experience of four
months followed by an evaluation at the end of July, after which the Building
Material Loans would operate permanently even after the end of Programme
implementation.
29
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 5
5.2 Overview offirst year of implementation
5.2.1 Status
As of February 1994, implementation of this component has notstarted.
In the First Quarterly Progress Report (p.31) it was pointed that the potential
demand for building material loans in the Programme's areas was probably
overestimated at the Inception stage. In July 1993 the component was
reevaluated and it was decided to reduce the funds assigned in the budget
for BML from the initial N$ 4.025.000 to N$ 1.200.000, assuming a potential
market of 300 BMLof an average of N$ 4.000.
5.2.2implementation problems
The main question that has prevented implementation till now is the
concept that building material loans should be issued as a follow-up option
after the beneficiaries had completed a starter solution or moved to a core-
house. With the delays in the execution of the Upgrading and Core-house
projects, there has not been opportunities for issuing BML. Furthermore, the
innovative character of the component creates uncertainty regarding
operating procedures and guarantees. Doubts regarding whether municipal
approvals are required, or whether second hand materials may be
purchased out of the loan have also hindered implementation.
5.3 Developments since October 1993
At the evaluation workshop the need to adjust the concept in order to
begin implementation was stressed. To do that, the idea of extending loans
only after starter solutions or core houses are built must be revised. The field
workers suggested that some beneficiaries in the upgrading areas might be
interested in using BML as a moreflexible alternative than starter solutions
to for the development of their houses. On the other hand, NHE feels that
there is a need for house-improvement loans among low-income groupsin
Windhoek currently not included in the Oshatotwa Programme. A discussion
paper was prepared by the CTA and submitted to NHE for consideration
(copy included as Annex 5/a). Its basic idea is to gradually establish a house
improvementcredit line open to any Windhoek household with incomelevels
within the Programme's criteria. On parallel, it proposes to develop a limited
pilot experience in the Upgrading areas. An outline of the proposals follows.
e Inclusion of other target groups
Many low-income families in Windhoek already own a house, usually a
former rental house purchased from the Municipality or a house obtained
through some prior NHE programme. A numberof these constructions arein
need of maintenance, improvements or extensions. The implementation of
the BML scheme will start immediately catering for the needs of such
potential beneficiaries as long as they can afford it and comply with the basic
income criteria established in the Separate Agreement (total HH income
<3PHSL).
30
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 5
NHE will develop simple and expeditious implementation procedures,
to be handled mostly by Katutura's Finance Branch personnel with limited
assistance from the Oshatotwa Team staff. To facilitate the process, during
the first six months loans will be only offered to present NHE clients with a
good repayment record. Once proceduresare clearly established and known
by NHE staff, the scheme will gradually be extended to other potential
beneficiaries.
Improvement loans between N$ 500 and N$ 5000, to be reimbursedin
3 to 36 equal monthly installments will give the clients options to adjust the
request to his needs and financial possibilities. Loans are granted
exclusively for house improvements, any unauthorized use will result in the
loan being canceled and NHE requesting payment of the outstanding
balance. Amounts up to N$ 2.000 will be disbursed in one operation; bigger
loans in two, with NHE controlling the correct use of the first part prior to the
second disbursement.
e Pilot scheme in upgrading areas
A secondary loan for a starter solution with 15 years repayment term is
being offered to households that have purchased a plot from NHE underthe
Oshatotwa Programme. This loan is financially more interesting than a BML
but require formal justification of family income. NHE's criteria and
procedures in use are designed to deal with formal sector households;
limited experience exist in handling informal income situations. A numberof
families would have difficulties to justify their earnings up to the required
NHE standards. Some have also expressed to the CDCstheir preference for
smaller, shorter term loans as they feel they would give them more control
over the process. To respond to this need, a small amount (N$ 50.000) of
the total funds in the budgetwill be assigned to the implementation of a pilot
scheme addressed to very low income households working in the informal
sector.
This experience appears to involve a higher risk than a normal credit;
but is the only way to assess the realrisk factor. If arrears remain at levels
similar as in other NHE projects, the scheme will be considered successful
and further extended. Close monitoring of repayments will permit early
detection of deviations. If after nine months arrears are higher than 40%, the
experience will be discontinued. From an institutional point of view it will
permit to design and field test new approaches to deal with informal sector
households, and better equip NHE to handle the increasing numbersof this
kind of housing clients.
31
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 5
The scheme will be operated by Oshatotwa Team personnel from the
site office; loans will be approved by NHE's Katutura Financial Branch
Manager upon recommendation from Oshatotwa Programme coordinator.
This type of clients will require a much bigger input of social and technical
assistance from NHE; for the pilot stage while procedures are being
established and tested it is proposed that this assistance be subsidized by
the Oshatotwa Programme. At a later stage, once known the actual cost of
administration and assistance, this concept might be revised and the way of
financing required subsidies established.
Improvement loans between N$ 200 and N$ 1500 will be made
available, to be reimbursed in 3 to 36 equal monthly installments. No labor
will be paid out of these loans; the economic advantages of self-help
construction must be explained and stressed as the appropriate instrument
for house improvement.
e Implementation procedures
On the basis of the proposal, NHE's Senior Manager, FPI&C developed
a comprehensive outline for the implementation of the component. It covers
the administrative procedures, technical aspects, the purchase of building
materials, disbursement and repayment of loans and marketing and
evaluation criteria, assigning individual responsibilities for each task. It
includes prototype application forms, loan agreement and an organizational
chart. Copy of the proposal is attached as Annex 5/b.
5.4 Revised work programme
The objective of this component remains as: Jo provide Building
Material Loans for construction, improvement and extension of houses with
financial, technical and social assistance to the low-income group". The
revised indicator establisned in the workshop: By the end of 1995, 300 BML
have been used, 100 in the upgrading areas, 100 in the core-house project
and 100 outside Programme areas".
NHE will promote a_ limited test experience and evaluate the results
after six months. Initial amounts of N$ 250.000 (equivalent to 50 maximum
loans) for existing NHE clients and N$ 50.000 (equivalent to 10 maximum
loans) for the Upgrading areas will be assigned. The following indicators will
be utilized for evaluation:
e For existing NHE clients:
95% of amounts borrowed are effectively used for house
improvements
On average, repayments are not more than 1/2 month in arrears
e Upgrading areas
90% of amounts borrowedareeffectively used for house improvements
On average, repayments are not more than 1 month in arrears
32
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 5
After the pilot experience, a decision on whether to extend the
Programmewill be taken and a work schedule prepared. The following table
compares the original work schedule proposed in the Inception Report with
achievementstill now and activities programmed.
A work programmetill the end of 1995 is prepared. With the aim of
facilitating the appraisal of the development of the Project since the
beginning of implementation, the following table compares:
The original work schedule proposedin the Inception Report:
Achievements till end of March 1994, and
Activities programmedtill the end of 1995
TARGET 3/94 {By end 1995 300 BML issued to different beneficiaries
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 6
6
6.1
INSTITUTIONAL DEVELOPMENT
Proposal in the Inception Report
Although not envisaged as a separate component, institutional
development was included in the Inception Report as an important
Programmeactivity. It was outlined as:
6.2
All institutions involved in the provision of low-income housing are to
some degree still in a process of adjustments brought by
Independence. Although there is a sound National Housing Policy,
important aspects of it are not yet being implemented, and _inter-
institutional coordination problems persist. As a concrete application of
the NHP, design and implementation of the Programme is expected to
help solving some of these problems by getting all institutions involved
in the day to day work. The Participatory Planning Workshops and the
Programme's Steering Committee will be tools to attain this goal. The
Programme should also contribute to strengthen NHE's executing
capacities, allowing experiences with a variety of new instruments that
could be applied in future low-income housing programmes.
Overview offirst year of implementation
6.2.1 Status
some institutional development issues are internal to NHE, other
involve outside parties. Achievements after 15 month of workinclude:
Up-front subsidies were experimented for thefirst time;
Since end of 1993, all NHE housing loans are extended at market
interest rates as proposed by the Programme;
Community development has been incorporated as an essential
componentof low-income housing programmes;
specific personnel for the Project (CDCs and SCAs) has been
identified, hired and trained:
The Programme is_ strengthening NHE's capacity to deal with
unconventional low-income clients assisting them to improve their
housing conditions.
Procedures to deal with new approaches and situations have been
evolved, an Operations Manual produced anddistributed within NHE;
Monitoring and evaluation procedures and criteria have been
established:
Participatory operational planning is routinely used in the Programme;
A library/resource center is established and operative;
Inter-institutional planning is ongoing. Two workshops held (October
1992 and February 1993):
There has been an increased cooperation from the Municipality of
Windhoek: It assisted NHE in the process of lay-out plans approval, it
provided land for the Community Centers for a nominal lease fee, it
35
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 6
assisted financially in the improvement of infrastructures in
Okuryangava, has eased some design standardsetc.
An inter-institutional Steering Committee was organized and functioned
during the Inception Phase and for a few months at the beginning of
implementation.
6.2.2implementation problems
° Internal to NHE
The majorinternal institutional problem identified in the workshop was
stated as: "NHE's procedures were not adjusted for upgrading-type projects,
resulting in implementation delays"
NHE's main experience comes from the kind of projects that it usually
handles: the production of conventional houses in developed land where
carefully pre-selected beneficiaries move once all construction work is
completed. The Upgrading Project presented a different challenge to NHE:
dealing with households already settled on unserviced plots, living in
shacks, whereall the needs are urgent and pressing. New waysof operation
adjusted to the situation had to be developed at the same time as
implementation progressed, in a trial and error process that occasionally
resulted in delays.
Major changes in Project personnel between the Inception and the
Implementation Phases, and in July 1993 when the initial Project
Coordinatorleft also resulted in internal problems. With each change, some
of the experience, ideas and procedures developedtill then were lost, an the
new personnel needed time to absorb Project concepts. Coordination with
other NHE divisions also suffered. There were also difficulties to identify and
hire Self-Help construction advisors, changes of already appointed CDCs
and delays in replacing them, as is not easy to find such expertise in
Namibia.
An array of minor questions like poor internal communications within
the team, poor coordination with other NHE sections involved in the
Programme, wrong ortardy information to NHE personnel(like cashiers and
the drafting or administrative sections), difficulties to adjust the computer
programsto the needs of the Oshatotwa Programme and so on occasionally
added unnecessary complications. It is fair to point that through a sustained
effort NHE is overcoming mostof these difficulties.
e Inter-institutional problems
The central problem identified was stated as: Other agencies
(MRLGH, Private Sector etc.) have not participated as much as planned
during the implementation". The coordination problems pointed at the
Inception Phasestill persist. The following problem areas were highlighted:
The Government continues to subsidize interest rates in conflict with
the NHP:
36
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 6
~ Appropriate standards for low-income housing could not be
successfully negotiated with the MRLGH(plot size) or the Municipality
(street development in Knomasdal):
The question of high cost of (developed or undeveloped) land in
Windhoek will continue to negatively affect low-income housing, the
MRLGH must addressit jointly with the Municipality;
The Steering Committee has discontinued its coordination meetings
since early 1993:
No involvement of the Private Sector in low-income housing financetill
now despite the fact that, with the creation of the LGF, NHE has
effectively reduced therisk of lending.
6.3 Developments since October 1993
e Internal to NHE
An important development is the growing perception among NHE
personnel of the Oshatotwa Project - referred to till recently as "the KfW
Project" - as an NHE effort. NHE's Senior Management is now moredirectly
involved in the Programme follow-up and day to day operations. Many
Project activities like construction supervision, contract administration,
registration and .selection of beneficiaries, public relations etc. are now
carried on with increased assistance from the respective Divisions and
sections. The main effort to implement the revised Building Material Loan
component will be assumed by the Finance, Planning and Control Division
through its Katutura branchoffice.
Two training activities were successfully completed in the period. Ten
members of the Oshatotwa team took a study trip to Botswana from February
2/ to March 3. There they looked at a mature low-income housing
programme implemented by the Self-Help Housing Agency in Gaborone.
They met extensively with housing staff from the City Council, the Botswana
Christian Council and SHHA. The team attended the monthly meeting of the
Low Income Housing Committee, where there was alively interchange of
ideas and discussion of housing practices. The visit also included a daytrip
to Kanye to look at a private low-income housing run by Habitat for
Humanity, and a tour of the Rural Industries Innovation Center's housing
activities. The visit was evaluated by the participants as a very positive and
motivating experience; and provided them with important insights on low-
income housing programs. The concept of Self-Help and sweat equity is now
better understood and the field personnel intends to begin implementingit.
Experiences and information brought back were disseminated among other
NHE staff in meetings organized at the request of the Management.
Information regarding the trip is attached as Annex 6/a.
At the end of March a 3 days Basic Management Course to improve the
effectiveness of the Oshatotwa team was successfully completed at the
Institute for Management and Leadership Training by 10 staff members.
Organized with assistance from NHE's Training Division the course was
specifically adjusted to Project needs, and used actual Oshatotwasituations
3/
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 6
as working examples to cover subjects such as Planning and Organization of
Work; Cost Impacts; Production Control; Problem Solving and Decision
Making; Motivation and Communications. Information regarding the course is
attached as Annex 6/b.
In February NHE decidedthat, at the beginning of next fiscal year (July
1994), the Community Development Coordinators will be incorporated to the
Corporation as regularstaff (till now they have been operating as part of the
consulting team). It is probable that the Self-Help Construction Advisors,
currently on fixed term contracts, will also be appointed as permanentstaff.
NHE thus recognizes the true value of the concepts of community work and
incremental developmentin relation to low-income housing programmes.
At their own initiative, each one of the CDCs prepared an evaluation
paper as their contribution to the workshop. As these papers provide
valuable insights on many internal and external aspects of the Oshatotwa
Programme andthe target group, copy is attached (as Annex 6/c) for future
reference.
e Inter-institutional
An important instance of inter-institutional cooperation was the
participatory evaluation and planning workshop already described. The work
on Reception Areas jointly carried on by the MRLGH, the Municipality of
Windhoek and NHE assisted by the Field Supervisor is bearing fruits with
the developmentof the first such area in Northern Okuryangava. It has also
brought forward the increasing squatter problem in the city and the urgent
need to set up and implement clear policies regarding urbanization,
standards, cost recovery and other low-income housing issues while there is
still time to prevent for Windhoek undesirable developments known to other
African cities.
At the field level cooperation with the Municipality's Community Liaison
Officers has not been as close as anticipated. Cooperation with the
Directorate of Community Development of the Ministry of Regional and Local
Government has been disappointing. Despite the CDCs urging, the Training
Division of this Directorate has not yet organized leadership training courses
that are under its responsibility. The CDC are now assigned the
responsibility of routine contact with both the Community Liaison Officers
and Community Activators to review community situations and support
needs, and to investigate ways of inter-agency support of those situations
and needs.
6.4 Revisedwork programme
The target established at the workshop wasstated as: /nstitutional
capacity has been strengthened to implement and replicate the Programme",
and the following indicators defined to evaluate success at the end of 1995:
~ NHEis preparing at least one similar programme without major KfW
support;
Loan documents and procedures have been simplified;
38
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 6
Alternative land tenure options (other than the outright purchase) are in
place, e.g. leaseholds, and alternative securities for granting loans are
available;
NHE has revised the loan agreement to be able to finance
improvements on leased land;
Alternative to evictions have been worked out to enforce payments:
Evictions have taken place in cooperation with community leaders and
Regional Councilors.
The following activities were identified at the workshop as required to
continue institutional improvement:
Revise and adjust Oshatotwa Operations Manualfor all components;
Improve intra-team communications and flow of information;
Explain regular NHE procedures to new Oshatotwastaff:
Keep NHEstaff informed on progress of Oshatotwa Programme;
Evaluate appropriateness of NHE policies and procedures for
upgrading projects, identify discrepancies, prepare adjustments;
Identify information requirements and change NHE computer
programmesaccordingly;
Usefinal evaluation to prepare documentfor disseminating experience;
Revise composition and function of Steering Committee, revitalize if
possible;
Contact National Planning Commission for coordination among housing
institutions;
Engage research group to study experiences from resettlement.
39
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 7
q. FINANCE
7.1 State of accounts
7.1.1 KfW Grant
No transfers to the Disposition Fund were done during the period. A
payment of DM 120.000 for consulting services during the fourth quarter of
1993 was authorized by NHE. The total amount disbursed from the Grant is
of DM 3.828.785; the balance to disburse of DM 5.771.215.
7.1.2 Disposition Fund
An amount of N$ 84.608,20 - equivalent to DM 42.304,10 - was paid
between October 1993 and February 1994 into the Disposition Fund account
as interest earned. It has been added to the grant amount, that now stands
at DM 9.862.300. The following table resume the account movements since
the creation of the Disposition Fund through March 9, 1994.
DISPOSITION FUND ACCOUNT
QRTR. DATE DESCRIPTION DEBIT CREDIT BALANCE
1992 22/07/92 Creation of Fund 3,/27,678.52 3,/27,678.52
31/07/92 Interest 12,868.15 3,740,546.67
31/08/92 Interest 44,476.64 3,785,023.31
30/09/92 Interest 42,775.95 3,827,799.26
31/10/92 Interest 44,701.35 3,872,500.61
30/11/92 Interest 41,430.46 3,913,931 .07
31/12/92 Interest 40,720.97 3,954,652.04
1993 31/01/93 Interest 40,413.30 3,995,065.34
1st 28/02/93 Interest 33,536.66 4,028,602.00
12/03/93 Withdrawals 1 & 2 27,000.00 4,001 ,602.00
12/03/93 Bank charges 20.00 4,001 ,582.00
26/03/93 Withdrawals 3 & 4 1,923,495.00 2,078,087.00
26/03/93 Bank charges 20.00 2,078,067.00
31/03/93 Interest 32,383.12 2,110,450.12
2nd 30/04/93 Interest 17,866.55 2,128,316.67
31/05/93 Interest 18,618.40 2,146,935.07
11/06/93 Withdrawals 5 & 6 11,470.79 2,135,464.28
11/06/93 Bank charges 20.00 2,135,444.28
30/06/93 Interest , 18,123.54 2,153,567.82
3rd 05/07/93 Withdrawal 7 1,900,000.00 253,567.82
05/07/93 Bank charges 20.00 253,547.82
31/07/93 Interest 4,898.88 258,446.70
31/08/93 Interest 2,260.88 260,707.58
01/09/93 Replenishment 2,000,610.30 2,261 317.88
30/09/93 Interest 18,579.20 2,219,897.08
4th 30/10/93 Withdrawals 8/16 335,211.13 1,944,685.95
31/10/93 Interest 19,242.14 1,963,928.09
30/11/93 Interest 16,626.13 1,980,554.22
31/12/93 Interest 17,325.78 1,997,880.00
1994 31/01/94 Interest 16,945.38 2,014,825.38
1st 28/02/94 Interest 14,468.77 2,029,294.15
09/03/94 Withdrwls. 15 a -17/31 550,546.19 1,478,747.96
TOTALS 4,747,803.11 6,226,551.07 1,478,747.96
41
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 7
NHE continues to pre-finance Programme expenditures, and Is
reimbursed from the Disposition Fund during the CTA's periodic missions to
Windhoek. 31 approvals for disbursement and two amendments to previous
ones, corresponding to the fourth quarter of 1993 andthefirst of 1994 were
authorized in the February/March mission,for a total over N$ 1.200.000. The
following table provide details of these movements.
DISBURSEMENTSFROMDISPOSITION FUND - OCTOBER 1993/MARCH 1994
Qtr. N° Date Budget post/ Amount of GST/amnt reim- Amnt.reimbursa- Total disbursed
purpose fo expense invoice N$ bursed by Mpity. blefromOF NS fromDF N$
CARRIED ON FROM 3rd QUARTER 1993 3,861 ,965.79
1993 8 10/11/93 5.2-Cty.Dvt.Fund-Unasgn. 140.00 0.00 140.00 3,862,105.79
4th 9 10/11/93 2.2-Land development 548.00 0.00 548.00 3,862,653.79
10 10/11/93 5.2-Cty.Dvt.Fund-Unasgn. 440.67 43.67 397.00 3,863,050.79
11. 10/11/93 1.4-Tender documents 599.40 59.40 540.00 3,863,590.79
12 10/11/93 1.2-Phase |-Certificate 1 44,844.75 3,347.00 41,497.75 3,905,088.54
13. 10/11/93 5.1-Video production 20,709.46 2,052.29 18,657.17 3,923,745.71
14 15/10/93 8.0-Secondinstallement 19,000.00 0.00 19,000.00 3,942,745.71
15 21/11/93 1.2-PhaseI-Certificate 2 204,960.82 21,158.65 183,802.17 4,126,547.88
12/a 21/11/93 1.2-Adj. to Disb.No 12 3,347.00 851.00 2,496.00 4,129,043.88
16 22/11/93 1.4-C.Ctr.2-Certif.No1 71,685.00 3,551.96 68,133.04 4,197,176.92
1994 15/a 02/10/94 1.2-Adj. to Disb.No 15 -3,859.00 4,193,317.92
1st 17 02/10/94 1.4-C.Ctr. Misc.expend. 326.02 20.02 306.00 4,193,623.92
18 02/10/94 1.4-C.Ctr.2-Certif.No2 35,235.00 1,745.88 33,489.12 4227,113.04
19 02/10/94 1.2-PhaseI-Certif. 3 229,863.64 32,610.05 197,253.59 4,424,366.63
20 02/10/94 1.4-C.Ctr. Misc.expend. 749.25 74.25 675.00 4,425,041.63
21 02/10/94 1.4-C.Ctr.2-Certif.No3 21,007.92 1,040.94 19,966.98 4,445,008.61
22 02/10/94 1.4-C.Ctr.1-Certif.No1 37,721.00 1,869.06 35,851.94 4,480,860.55
23 02/10/94 1.3-Purch.mat.str.sol. 12,630.92 935.63 11,695.29 4,492,555.84
24 02/10/94 1.3-Purch.mat.SS. 8,215.41 608.55 7,606.86 4,500,162.70
25 02/10/94 1.2-Phase Il-Certif.1 126,690.88 15,186.40 111,504.48 4611,667.18
26 02/10/94 1.2-Phase |-Certif. 4 119,475.64 9,109.20 110,366.44 4,722,033.62
27 02/10/94 1.3-Builder start.sol. 375.90 0.00 375.90 4,722,409.52
28 14/02/94 1.3-Builder start.sol. 6,313.59 0.00 6,313.59 4,728,723.11
29 14/02/94 1.3-Builder start.sol. 7,600.00 0.00 7,600.00 4,736,323.11
30 14/02/94 1.3-Builder start.sol. 6,400.00 0.00 6,400.00 4,742,723.11
31 14/02/94 1.3-Builder start.sol. 5,000.00 0.00 5,000.00 4,747,723.11
32 03/09/94 1.2-Phase |I-Certif.2 162,381.83 26,260.30 136,121.53 4,883,844.64
33 03/09/94 1.2-Phase II-Certif.3 166,829.28 21,157.65 145,671.63 5,029,516.27
34 14/3/94 1.3-Purch.mat.str.sol. 15,514.93 1,008.07 14,506.86 5,044,023.13
35 14/3/94 1.4-C.Ctr. Misc.expend. 200.00 0.00 200.00 5,044,223.13
36 14/3/94 1.3-Str.Sol.Water con. 3,375.00 0.00 3,375.00 5,047,598.13
37 14/3/94 1.3-Purch.mat.str.sol. 19,270.60 1,372.58 17,898.02 5,065,496.15
38 14/3/94 1.3-Builder start.sol. 400.00 0.00 400.00 5,065,896.15
The Programmeis entering a stage whenrelatively important payments
are expected; at NHE's demand KfW agreed that the CTA may sanction
provisional approvals by fax. Relevant documentation will be examined at
the next CTA's mission and provisional approvals either confirmed asfinal or
adjusted if necessary.
42
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 7
7.2 Adherence to disbursement schedule
The following table shows the disbursement schedule for KfW funds
proposedat the Inception Phase(figures in DM x 1000):
ORIGINAL DISBURSEMENT SCHEDULE
19|93 19| 94
PROJECT/COMPONENT| 1st.Qt. |2nd.Qt. S3rd.Qt. 4th.Qt. {1st.qt. 2nd.Qt. 3rd.Qt. Hth.Qt. TOTAL
UPGRADING
Land/basic infrastructures 1066, 7 1066, 7
Infrastructure extension 30,5 200,0 150,0 4305
Starter solutions 39,6 200,0 300,0 150,0 50,0 739,6
Community Centers 120,5 80,0 20,0 220,5
CORE-HOUSES
Land development 89,2 170,0 170,0 100,0 929,2
Core-house construction 350,0 700,0 700,0 350,0 13,9 2173,5
Community Centers 40,0 33,5 40,0 33,9 147,0
CONTINGENCIES 400,0 77,0 477,0
LOAN GRNTEE. FUND 1000,0 1000,0
BLDG.MATERIAL LOANS 2768 800,0 500,0 157/6,8
COMMUNITY DEV.FUND 15,0 15,0 10,0 40,0
CONSULTANTS 488,8 100,0 100,0 100.0 100,0 100,0 100,0 1105 |1199,3
TOTALS 2761,1 {13460 |14905,0 |1953,5 10500 7839 100,0 1105 |96000
Delays in execution of the Programme resulted in corresponding
retards in disbursements. At the end of 1993, DM 3.8 mi. were disbursed,
roughly 50% of the envisaged amount. The next table shows actual
disbursements by quarter since the Inception Phasetill mid-March 1994, and
projections for the second quarter 1995.
PROGRAMME DISBURSEMENTS FROM THE INCEPTION PHASE TILL MARCH 1994
19 93 1994 EST.
COMPONENTS BUDGET _1st.atr. 2nd.qtr. 3rd.qtr. 4th.atr. 1st.qtr. TOTALS 2nd.gtr
1. UPGRADING AREAS 9,995.0 6,469.4 965.0
1.1 Land & basic infrastr. ° 5,221.0 5,221.0 5,221.0 0.0
1.2 Infrastr.improvemt. 2,220.0 249.3 805.2 1,054.5 700.0
1.3 Starter solutions 2,104.0 85.1 85.1 200.0
1.4 Community centers 450.0 13.0 0.6 95.2 108.8 65.0
2. CORE-HOUSES 10,476.1 3,006.9 1,850.0
2.1 Land & basic infrastr. 2,934.7 1,895.2 1,039.5 2,934.7 0.0
2.2 Land development 1,363.0 0.5 0.5] 1,100.0
2.3 Core-house construct. 5,878.4 0.0 750.0
2.4 Community centers 300.0 71.7 11.7 0.0
3. LOAN GUARANTEE FUND 11,900.0 1,900.0 350.0
3.1 Loan Guarantee Fund 1,900.0 1,900.0 1,900.0 0.0
3.2 Private sector loans 10,000.0 0.0 350.0
4. BLDG.MATERIAL LOANS 1,263.0 0.0 300.0
5. CTY. DEVELOPMENT FUND 87.0 33.2 14.0
5.1 Production of 2 videos 20.0 8.0 20.7 28.7 8.0
5.2 Unassigned 67.0 3.9 0.6 4.5 6.0
6. NHE ADM/TECH. COSTS 2,692.0 1,017.7 350.0
6.1 Personnel* 2,201.0 250.0 60.0 95.0 135.0 190.0 730.0 200.0
6.2 Land survey/eng.fees 491.0 202.7 85.0 287.7 150.0
7. CONSULTANTS 3,467.8 1,720.0 240.0
7.1 Inception phase 520.0 520.0 520.0 0.0
7.2 Implementation phase 2,947.8 340.0 140.0 240.0 240.0 240.0 1,200.0 240.0
8. RESOURCE CENTER 38.0 19.0 19.0 38.0 0.0
9. CONTINGENCIES 194.9 54.5 54.5 0.0
10. TOTALS 39,352.0 1,140.9 7,329.2 2,289.5 1,979.6 1,500.5 14,239.7 |4,069.0
* Note: NHE disbursments for personnel are estimated
Expenses incurred during the Inception Phaseare included in the 1st quarter of Implementation
43
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 7
7.3 Update of Programme budaet
Important adjustments in the Programme's budget result from the
intermediate evaluation, requiring reallocation of funds and reduction in the
envisaged number of some solutions . When actual costs for goods or
services are known, they have been usedto replacethe original estimates. A
description of major budget changes follows and the revised budget is
shown in page 46.
44
Upgrading Project:
The total amount paid for land and basic infrastructures, including
interim rates and taxes, legal fees, transfer costs etc. is of N$
5.221.000, out of which NHE paid N$ 3.300.828, 16 and the balance N$
1.920.000 was reimbursed from the Disposition Fund for up-front
subsidies.
The upgrading of infrastructures in Phase | is completed and paid
for; the tender cost for Phase II is known and the adjusted estimate for
street lights, the only remaining component to develop, is of N$
270.000. Onthis basis, a total figure of NS 2.220.000 is used.
According to the workshop targets and feed-back coming from
field experience, the envisaged numberof starter solutions is reduced
to 300 and the average unit cost increased to N$ 7.000.
Costs for Community Centers have been scaled down to theinitial
figure of N$ 150.000 each, that seem adequate in view of construction
costs of the two already built.
Core-House Project
The total amount paid for block land in Okuryangava and
Khomasdal, including all related expenditures was N$ 1.892.303,77.
The Otjomuise plots average cost (that include development costs) is
N$ 9928: the cost of the 105 used for the Core-House Project is of N$
1.042.440. The total amount paid for the Project's 334 plots already
purchased is of N$ 2.934.743,70.Tender costs for development of land
in Knomasdal and Okuryangava add up to N$ 1.363.000.
Due to increases in several budget posts, to the more expensive
type of core-houses under construction, and the fact that the amount of
the KfW Grant is fixed, it has been necessary to limit the number of
housing solutions to the 334 already under way. Average construction
cost is up to N$ 17.600.
The number of possible community centers in this Project is
brought backto the original 2 proposed in the Inception Report, instead
of three as included in more recent budgets.
Loan Guarantee Fund
No modifications are introduced in this budget post. At the end of
1994 it will be evaluated;if it is not performing as anticipated, the funds
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 7
will be reassigned, possibly to increase the number of core-houses or
starter solutions.
e Building Material Loans; Community Development Fund:
From a budget standpoint no modifications are introduced to
these components.
e NHE administrative and technical costs
Total personnel costs till the end of 1995 have been estimated at
N$ 2.200.884 by the SM-FP&C. This amount considers costs incurred
at the Inception Phase; costs for Oshatotwa Team staff involved on a
full time basis, including the CDCs from July 1994, and Senior
Managementtime.
Engineering consultant's fees for the Upgrading Project amountto
N$ 319.340. For the Core-House Project, they amount to N$ 97.000.In
addition, an estimate N$ 75.000 will be spent in fees for land surveyors,
adding upto a total of N$ 491.000.
e Consultants
Consultants fees need to be augmented in N$ 629.800 to cover
their increased involvement resulting from the extension of the
implementation periodtill the end of 1995.
e Contingencies
N§$ 714.000 have been transferred from this post to cover cost
increases in other budget positions.
The following chart shows the percentual assignement of Programme
funds resulting from the revised budget.
PERCENT USE OF PROGRAMME FUNDS
L| Upgrading
[4 NHE/Adm-Techn.
MM Core-House
L-] Post 5,8&9
L] LGF
Consultants
Ea BML
45
1
0
0
0
10.0
9,995.0
1.9
9,287.6
3,099.4
5,984.9
3,511.9
135.2
0.0
363.0
1
0
0
0
5.2
5,221.0
1.8
2,900.6
1,067.0
1,920.0
3,301.0
0.0
0.0
0.0
2,220.0
2.0
1,110.0
890.0
1,780.0
77.0
0.0
0.0
363.0
3
0
0
7.0
2,104.0
2.0
1,052.0
944.4
1,888.9
109.9
105.2
0.0
0.0
3
150.0
450.0
2.0
225.0
198.0
396.0
24.0
30.0
0.0
0.0
3
3
4
31.4
10,476.1
2.0
9,315.3
3,378.1
6,/56.1
3,181.2
538.8
0.0
0.0
3
3
4
8.8
2,934.7
1.9
1,544.6
0.0
0.0
2,/88.0
146.7
0.0
0.0
2
2
9
6.0
1,363.0
2.0
681.5
611.8
1,223.6
71.2
68.2
0.0
0.0
3
3
4
17.6
9,878.4
2.0
2,939.2
2,638.7
9,277.3
307.1
293.9
0.0
0.0
2
150.0
300.0
2.0
150.0
127.6
295.2
14.9
30.0
0.0
0.0
11,900.0
6,000.0
1,000.0
1,900.0
0.0
500.0
9,500.0
0.0
1,900.0
1.9
1,000.0
1,000.0
1,900.0
0.0
0.0
0.0
0.0
2
5
0
40.0
10,000.0
2.0
5,000.0
0.0
0.0
0.0
900.0
9,500.0
0.0
3
0
0
4.2
1,263.0
2.0
632.0
512.0
1,024.0
113.0
126.0
0.0
0.0
87.0
44.0
39.0
78.0
9.0
0.0
0.0
0.0
20.0
1.8
11.0
9.0
18.0
2.0
0.0
0.0
0.0
67.0
2.0
33.0
30.0
60.0
7.0
0.0
0.0
0.0
2,692.0
4.0
1,346.0
0.0
0.0
2,692.0
0.0
0.0
0.0
2,201.0
2.0
1,100.5
0.0
0.0
2,201.0
0.0
0.0
0.0
491.0
2.0
245.5
0.0
0.0
491.0
0.0
0.0
0.0
3,467.8
1,762.9
1,762.9
3,467.8
0.0
0.0
0.0
0.0
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 8
8. STATE OF FULFILLMENT OF CONDITIONS
The KfW mission detected that the way the affordability assessment is
done for the Oshatotwa Programme is not according to the Financing
Agreement (Article 6.1.1). In particular:
Only income of the head of the household is considered, and not the
total household income as agreed:
~ The PHSL calculation is not adjusted to the size of the family.
In addition, the mission recommended that, as proposed in the
Inception Report (p./73 and affordability chart), the maximum financial burden
for the poorest beneficiaries remain below 25% of total household income;
and that incomes from the informal sector should not be certified by the
Police, but estimated by the CDCs.
The Oshatotwa Team is taking steps to correct these deviations that
result from the use of the usual NHE criteria and computer programme to
assess affordability of clients. The procedure detailed below was prepared to
establish affordability assessmentcriteria.
Affordability assessment for the Oshatotwa Programme
According to the discussions held with the KfW mission on howto
asses household income for defining the Programme's beneficiaries, the
following criteria are to be used:
e Earners:
Incomes of all adult members of household shall be taken into
consideration, particularly in case of couples formally or traditionally married
income of husband and wife must be considered.
e Household size
Maximum income of a household must be adjusted according to
household size, meaning that smaller households will have a reduced PHSL.
The September 93 calculation of PHSL provided the following indicators for
Windhoek:
FAMILY MEMBER REQUIRED INCOMEIN NS
ADULT MAN 154
ADULT WOMEN 134
BOYS/GIRLS 150
CHILDREN 110
HOUSEHOLD AS A WHOLE 120
47
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH. 8
Based on these figures, the following maximum amounts of PHSLfor
different family sizes are proposed to be used in the Oshatotwa Programme:
HOUSEHOLDSIZE BASIC PHSL N$ 3 PHSL N$ PER-CAPITA
INCOME N$
1 275 825 275
2-3 540 1620 180-270
4-6 912 2736 152-228
7-10 1307 3921 130-186
These figures are basic indicators. A certain flexibility (up to 5% more)
might be taken into consideration, in order not to exclude a potential
beneficiary if the household income is a few dollars more than the limit
established.
Other conditions
With regard to other conditions the situation remains the same as
detailed in the Progress Report N° 3 (p.67), with the following comments:
NHE intends to redefine the composition and functions Steering
Committee and attemptto revitalize it (Separate Agreement3.4)
Current efforts to promote the concept of Self-Help may further
increase the participation of beneficiaries (Separate Agreement 3.5
& 3.6)
48
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 19937MARCH 1994 - CH 9
9.
9.1
CONSULTANTS
Services rendered between October 1993 and March 1994
Chief Technical Advisor
The CTA realized two missions, one month in October 1993 and six
weeks in February/March 1994. His main activities included:
General assistance to Project Coordinator and Oshatotwa Team on
programming, monitoring of execution, implementation procedures and
policy issues;
Launching of construction of first Starter Solutions in Freedom Land;
Final edition of Quarterly Progress Report N° 3;
Assistance in negotiations for extension of infrastructure upgrading
contract to PhaseII:
General monitoring of progress, adjustment of deviations;
Participation in Team programming workshops
Reimbursements to NHE from Disposition Fund;
Debriefing at Kf'W Headquarters
Participation in evaluation workshop and subsequent revision of
programme components, indicators, work schedule, consultants
assignmentetc.
Assistance to KfW mission;
Revised work programme;
Organization of training course for Oshatotwa Team members;
Draft revised concept for Building Material Loans component:
Participation in negotiations to extend contract for land developmentin
Core-House Project;
Outline of Loan Guarantee Fundpilot project;
Submission of Progress Report N° 4;
Institutional Advisor
The Institutional Advisor realized a mission of one month in February
1994. His main activities included:
General backstopping to Oshatotwa Team and Project coordinator;
Organization and moderation of a participatory evaluation and planning
workshop;
Subsequent revision of programme components, indicators, work
schedule, consultants assignmentetc.
Conducted short seminar on participative workshop methodology for
NHEstaff:
Co-organization, design of methodology and preliminary evaluation of
household survey;
Assistance to KfW mission;
Debriefing at KfW Headquarters
49
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994 - CH 9
Community Development Advisor
During this period, the CDA realized two missions, one month in
October 1993 and six weeks in February/March 1994. His main activities
included:
Assistanceinselection of beneficiaries for Core-House Project;
General advise and assistance to Programme management:
Participation in Team programming workshops;
Preparation of draft Quarterly Progress Report N°3;
Adjustment of procedures and update of Operations Manual;
Organization and supervision of the CDCs work:
Participation in the February 1994 evaluation workshop, preparation of
workshop report;
Co-organization, design of questionnaire, field work supervision of
household survey;
Organization and conduction of training trip, supervision of evaluation
reports by participants;
Field Supervisor
Continued his part-time involvement in general Programme
backstopping. His main activities were:
Advising and monitoring work programming and progress
Advising NHE on policy issues;
Participating in the developmentof reception areas:
Participation in the February 1994 evaluation workshop;
Field Coordinator
He continued to be involved on a full-time basis, except for the month
of January 1994 while he wasill. His activities during the period include:
Follow-up of infrastructure upgrading construction works at
Okuryangava;
Assistance in preparation and information meetings for selection of
beneficiaries of core-house project;
Follow-up of construction of community centers at Onguo ye Pongo and
Okuryangava; -
Assisting in organization of site-office, its equipment and moving;
General assistance to Project Coordinator;
Adjustment of core-house designs;
Collaboration in the development of tender documents for the
construction of core-houses in Otjomuise;
Preparation of monthly progress reports in November and December
1993:
Participation in the evaluation workshop;
Design of Greenwell Matongo Community Center;
Community Development Coordinators
As described in Chapter 2, during the period they continued with the
regularization of land tenure, development of communities and maturation of
00
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 19937MARCH 1994 - CH 9
community centers committees, coordination with other agencies and
assistance in implementation of starter solutions.
9.2 Schedule adjustment
several important adjustments to consultants involvement in the Project
resulted out of the mid-term evaluation.
NHE decided that will incorporate as permanent NHE staff the three
Community Development Coordinators, starting in the next fiscal year in July
1994. Although contractual details need to be adjusted, Mss. Sofy
Shaningwa, Aune Tjirare and Petronella Taaru will eventually continue their
valuable participation in the Oshatotwa Programme as NHE personnel
instead of as members of the consulting team.
The implementation period was extended one yeartill the end of 1995.
Regarding consultants involvement, NHE established the following criteria:
As the experience gained by the Corporation in the first 15 months of
implementation is already bearing fruits, NHE decided to start phasing
out the day to day responsibility of Kerry McNamara Architects, the
local partner of the consulting consortium, and conclude their
participation at the end of 1994.
To request SUM Consult, the international partner in the consortium to
make available experts for an extension of their commitment through
1995 along similar lines as till now, that is, periodic visits to Windhoek
to assist in different aspects of Programme implementation.
Following these criteria, a revised schedule results in:
Areduction of 15 MM in the CDCs assignment:
The time envisaged for the Field Supervisor and Field Coordinator
remains unchanged.After July, the Field Coordinatorwill start reducing
his day to day work to 2/3 of the working time, then to half time. NHE
will re-evaluate the needs at the end of the 2nd quarter 1994;
Regarding SUM personnel, to cover the requirements for 1995, 4 MM
are added to the Chief Technical Advisor's initial schedule, 1 MM to the
Institutional Advisor's and 5,5 MM to the Community Development
Advisor's.
The table in page 52 compares:
The original consultants assignment schedule proposed in the
Inception Report;
Actual consultants participation from the beginning of implementation
till end of March 1994, and
Revised assignment scheduletill the end of 1995
31
Field
Supervisor
Field
C
o
o
r
d
i
n
a
t
o
r
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 1/a
MINUTES OF MEETING, KFW MISSION FEBRUARY 1994
MINUTES OF MEETING
A mission of Kreditanstalt fur Wiederaufbau (KfW), Frankfurt,
Germany, comprising Messrs Johannes Bickel and Gerhard Redecker,
Visited Namibia from February 15 to 26 in order to discuss with
the Namibian authorities the progress of "Low-cost (Oshatotwa)
Housing Project, Windhoek" and the preparation of the "Low-cost
Housing Project II".
For the National Housing Enterprise (NHE), the discussions were
led by Mr Tsowaseb, Chief Executive Officer, and Mr H Jurgen
Lehnert, Head of the Technical and Marketing Services Department.
Meetings were also held with the Ministry of Regional and Local
Government and Housing (Mr K Gowaseb, Director of Housing), the
Municipality of Windhoek (Mr B van der Merwe, Deputy City
Engineer), the Consulting team (SUM-McNamara) and the NHE project
team and field staff. The KfW mission participated in the
workshop of the Oshatotwa project, and visited Swakopmund and
Ondangwa and had discussions with the respective municipalities
(Project II). All the meetings took place in a co-operative and
friendly atmosphere. Both sides stated the achievements reached
so far in the Oshatotwa project; yet, the following
considerations are focussing mainly on the actual situation and
actions still to be taken.
A, OSHATOTWA HOUSING PROJECT, WINDHOEK
1. Upgrading of Resettlement and Squatter Areas
KfW mission was informed that the execution of
infrastructure development of the 5 resettlement areas
is to be finalised by April and June 1994,
respectively. At present, approximately 136 out of
1 006 plots are still awaiting legal clearance and
formalisation of sale. Considerable delays are to be
stated too, with regard to the construction of starter
solutions (only 4 completed). The K£fW mission
recommends that NHE, to the extent possible, amplifies
the options by including the possibility of obtaining
a building materials loan instead of a pre-designed
starter solution, in order to better correspond to the
individual wishes of the applicants. (vide NHE
Strategic Plan and the recommendations of field staff)
It is also recommended to better promote and support
the self-build aspects with regard to any housing
option under this component. Both sides agreed that
the Shipena Einbeck squatters (roughly 100 plots). may
be excluded from the project due to constraints
concerning infrastructure standards and plot prices.
2. Core House Component
The KfW mission was informed that the infrastructure
development for 3 sites is due to be completed by
Page 2
fourth site (Otjomuise) has already been developed by
the Municipality. The first package of 60 out of
approximately 430 core houses was tendered in December
1993 to be constructed in Otjomuise, but will be
awarded only towards the end of February. This delay
has resulted from the need to repeat the tender on the
basis of non-comparability of offers, apparently due
to confusion on the tenderers side in view of the
high number of required options. Unfortunately, it
has not been possible so far to identify more than 170
families interested in the construction of core-
houses. In spite of the high number of options
offered (4 sites, plot, 10 house types, up to 10
finishing options) it seems to be difficult to match
the individual requirements (felt needs) of the
potential beneficiaries.
Common issues for the upgrading and core-house
components
The K£W mission was informed that the affordability
assessment, according to current NHE practice, is
nearly always based not on the total household income,
but only on the income of the household head.
(Correspondingly, the Deed of Sale is signed solely by
the household head). This is contrary to the
Financing Agreement with Kf£fW (vide article 6.11) and
to the Project Inception Report and should, therefore,
be changed. Income from the informal sector should
not be certified by the police, but estimated by the
CDCs, though this is a difficult task.
In addition, the KfW mission recommends that the
maximum financial burden for the poorest beneficiaries
should not be fixed at 25 percent, but be lower i e
between 10 and 25 percent (vide Inception Report,
chapter 7.3). The use of household head income
instead of total household income of the household
income (which, according to the Inception Report, is
about 35 percent higher) in the case of upgrading
areas (assigment of serviced plots) caused the
individual and total amounts of subsidies granted to
be higher than justified. It is recommended that a
new affordability assessment shall be undertaken for
the starter solution and core-house beneficilares on
the basis of the above mentioned statements (and apply
the PHSL adjusted to the family size).
Government employees canso far not receive government
housing subsidies for empty plots. On the other
hand, NHE mostly requested from beneficiares in the
upgrading areas a period of 6 months) orderly
repayments on the loan for the developed plot, before
granting an additional loan for a starter solution;
as Government employees are not eligible for subsidies
during this trial period (see above), many of them
Page 3
have refused to pay their monthly instalments, thus
causing arrears and the corresponding non-eligibility
for starter solutions. NHE, therefore, should
negotiate with the government a practical solution to
overcome this deadlock situation. In this context,
the KfW mission recommends to waive the 6 months trial
period for all beneficiaries with permanent employment
in the formal (ie public or private) sectors.
Repayments for developed plots in the upgrading areas
aS well as the necessary minimum deposits for starter
solutions and core-houses seem to be very
unsatisfactory. Due to lack of communication between
the field staff and the accounting division, as well
as procedural constraints, no final up-to-date figures
On accounts, repayments, arrears and deposits are
avallable. Both sides agreed that NHE will provide
this data by early March 1994.
Solutions for families in the upgrading areas who
cannot afford a loan even for the serviced plot
without any housing solution, have still to be found.
K£W would favour solutions which enable those poor
families to stay in the area.
The Community Development Co-ordinators (CDCs) and
Self Help Construction Advisors (SCAs) have made
valuable suggestions for the solution of some of the
above mentioned bottlenecks. Their experience and
proposals should be taken into account, since they
have close contacts with the target groups of the
project.
Community Development Component
Both parties discussed the physical and organisational
aspects of the 3 community centres for the upgrading
areas. It is recommended to monitor the ongoing
community development activities in relation to the
above mentioned facilities. The social
infrastructure situation and constraints have so far
hardly been tackled in connection with the project,
though they are vital for the beneficiaries. In
order to get a clear picture of the existing
facilities and bottlenecks, the KfW mission recommends
that the project team including the consultants,
undertake a physical and functional inventory, so that
NHE can approach the responsible authorities,
(Municipalities, Ministries of Works, Transport and
Communciations, of Education and Culture and of Health
and Social Services) for necessary improvements.
Component "Building Material Loans"
Both sides stated that so far no conceptual design
neither preparatory steps have been undertaken for
Page 4
this component. As can be learned from the SCAs and
CDCs opinion, there is considerable demand for
building material loans in the project areas for
construction, extension and improvement of houses.
Therefore, the KfW mission strongly recommends to
offer building material loans as an additional
alternative to starter solutions and core-houses and
to investigate the possibility of opening this
component to target groups in adjacent areas (within
the 3 PHSL and individual affordability range). Both
parties agreed that NHE and the consultants shall, as
soon as possible, elaborate the procedures for this
component, such as the use of funds, alternative
collaterals, promotion of self-help, implementation
details as well as a marketing campaign. As the
Build Together Programme is the only other housing
project containing a building materials loan element,
its experience in this respect should be studied.
Component Loan Guarantee Fund"
Although NHE has signed agreements with SWABOU and
Namib Building Society, this component did not come
into operation so far. For this, the two building
societies have indicated a variety of cost and market-
related reasons. The NHE informed the KfW mission
that they have undertaken concrete steps for
supporting the building societies in a pilot project
for 20 houses in Otjomuise. If this trial should not
bring the expected results or the demand not increase
considerably, the guarantee amount financed by German
funds should be reduced and reallocated to other
project components.
Time-schedule, Total Project Cost and Financing,
Consultancy Services
Both parties agreed that the accumulated delays call
for a substantial revision of the time-schedule of the
project. NHE shall determine, together with the
consultants, the need for additional or modified
consultancy services and present to KfW a draft
addendum to the consultancy agreement in due course.
Accordingly, the general cost and financing table will
be revised in March 1994 (taking into account
additional NHE contributions).
In order to facilitate project monitoring by NHE
management and KfW, it was agreed to improve the
progress report (breakdown and status of activities
related to all project components, comparison of
achievements with original and quarterly targets,
monitor project progress by quantified indicators).
Aspects Concerning NHE
Page 5
From the discussions held, it became apparent that
there are still severe internal communication gaps
within the Oshatotowa team as well as between the team
and other NHE departments and the senior management.
On the other hand, NHE, so far, still uses largely its
traditional criteria and procedures whichpartially do
not cope with the requirements of this type of project
and target groups in terms of simplicity, flexibility
and speedy response: in this respect vide also the
objectives formulated in the NHE strategic Plan.
Also, often field staff was lacking and should be
reinforced. Besides, it was stated that the project
team still lacks in-depth information on the socio-
economic situation of the target groups and that
available information is scattered. It is therefore
suggested to design and establish, together with the
consultants, a monitoring system concerning the target
groups.
B. LOW COST HOUSING PROJECT II
Both sides agreed that the envisaged Project II would
concern the following three secondary towns:
Swakopmund, Ondangwa and Grootfontein or Walvis Bay.
They agreed, too, that in addition to what was
outlined in the NHE project proposal of December 1993,
the upgrading of squatter areas will be studied. In
order to expedite the preparation of the project, SUM
Consult shall support NHE in the elaboration of a more
detailed propject proposal (feasibility study) as a
basis for KfWs project appraisal; this will
presumably be financed by a special fund administered
by KfW on behalf of the German Government. KfW will
elaborate the Terms of Reference for the above
mentioned study and submit them to NHE.
The above mentioned statements and conclusions will,
as usual, be presented to the Management of KfW and
the German and Namibian Governments for approval.
~
or,A
WW GetsLU bat
° 4 eee0eeeveeeeeeenenee ee:it e oe « °
(For the KEW mission),
Windhoek, February 25, 1994
A
Copy Ministry of Regional and Local Government and Housing
Municipality of Windhoek (Mr B van der Merwe)
Sum-McNamara Consultants
German Embassy
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 1/b
EVALUATION AND PLANNING WORKSHOP
Juan (Panchi) Crispo
Roland Ziss
Wilfried Schulte
Diane Bester
Abé Louw
Polla Steyn
Kerry S. McNamara
Hilja Hipangwa
Shitenda Petrus Imene
Sophy Shaningwa
Johannes Bickel
Jurgen Lehnert
Erasmus Hendjala
Gerhard Redecker
Thomas Kaura
SUM-McNamara Consultants
SUM-McNamara Consultants
National Housing Enterprise
(NHE)
NHE
SWABOU
Municipality of Windhoek
SUM-McNamara Consultants
Community Representative
Community Representative
SUM-McNamara Consultants
Kf£W Germany
NHE
National Council
KfW Germany Technical
Department
Municipality of Windhoek
Chief Technical Advisor,
Consulting team.
Institutional and Policy Advisor
Oshatotwa Project Coordinator
OshatotwaProject
Co-Coordinator (Finance)
Loan Guarantee Fund
Provision of land and utility
SETVICES
Field Supervisor, Oshatotwa
Programme
Greenwell Matongo Community
Committee Vice-Chairperson
Onheleiwa Community
Committee Chairman
Community Development
Coordinator
Regional Department
(overseeing Oshatotwa grant)
Senior Manager, Technical and
Marketing Services: In charge
of project on behalf of NHE
Regional Councillor,
Hakahana Constituency
Monitor technical aspects of
Programme
Property Manager, Northern
Areas
Continued
Andrew Walton
James Hokans
Maria Dax
Aily N. Helao
Axaro Tsowaseb
Emst Mathias
Donald Kurtz
Louis Fick
Martin Kapewasha
SUM-McNamara Consultants
Cooperative Housing Foundation
Representative
SUM-McNamara Consultants
NHE
National Council
Programme Field Coordinator
Adviser to MRLGH, Housing
Directorate; National Housing
Policy supporter
Public Affairs and
Communications Manager
Project supporter
CEO; To see that the project is
implemented!
Self-Help Construction Advisor
Community Development
Advisor, Oshatotwa Housing
Programme
Senior Manager, Financial
Planning & Control
Regional Councillor,
Wanaheda Constituency
Upgrading
Community Development
Sale of Erven
Infrastructure
Improvement
Community Centres
Starter Solutions
Building Materials Loans
Community Leadership structures strengthened:
Elections for Committee held in 2 areas;
Participation by Regional Councillors.
Since implementation, community leaders have become
more representative of their communities/groups.
CDCs knowall clients; have established relationship of
trust.
Management of communal water taps greatly improved;
Clean-up campaign on-going.
Information Campaign Developed; Beneficiaries aware
of project possibilities and options.
870 Erven sold and contracts signed.
136 Pending cases being processed.
All 715 project erven in Okuryangava area: Either
fully services, OR Construction underway.
2 Community Centres built in 2 areas; 3rd in process
of securing land and design.
Uses of Community Centres:
NHE/Client contract discussions; community
meetings; church services; creches; choir practices;
immunisation campaign; Primary Health Care.
. 1 Community Centre Management Committee
established; 2 others being established.
150 Clients (with employer subsidies) identified
(compared to other housing projects, this is small
percentage of government employees).
Worksheets for 63 potential clients completed by
SCAs; others contacted and informed about houses.
People are mobilizing their savings and depositing in
NHE Building Society.
4 houses built, 3 in process.
75 clients up-to-date with erven loan repayments;
+SO havestarted savings for structures.
XXX
Continued...
Core Houses Land Identification
and Acquisition
Land Development
| Selection of Beneficiaries
Sale of Core Houses
Construction of Core
Houses
Community Development
& Centres
Building Material Loans
Land for 334 cores acquired for project: 105 Otjomuise
(serviced), 166 Khomasdal, 63 Okuryangava.
+100 serviced erven identified in Otjomuise.
Lay-out plans: Prepared by NHE; Approved by
Authorities; Construction work contracted and on-
going (Khomasdal & Okuryangava).
Electrical Reticulation negotiated with the Municipality.
502 Potential clients from NHE waiting list identified
& contacted; 212 responded and attended information
meetings; 90 registered as clients.
Outside campaign: 80 registrations (for total of 170).
40 have completed their deposit (minimum of 5% of
N$1,500 to N$3,000); 30 partially completed deposit
accounts.
XXX
10 Alternative designs prepared & submitted to
Municipality.
Tender for construction of 60 core houses at
Otjomuise closes February 23, 1994.
AXX
XXK
Loan Guarantee
Fund Definition of Rules andProceduresEstablishment of L.G.F.MarketingOperation Rules established, 2 building societies signed contractsto participate by June 1993.Fund established in June 1993.SWABOUpublished one press ad in 2 newspapers atend of January 1994.XXXK Continued...
Institutional
Development
Internal Institutional
Development (NHE)
Inter-Institutional
Development
Programme has strengthened NHEs capacity to deal
with unconventional low-income clients in improving
their housing.
Personnel hired and trained, procedures evolved to deal
with new approaches andsituations.
Former Project Coordinator, Office Administrator,
3 CDCs, 2 SCAs attended Training Session which
included procedures for sale of erven and sale of
starter solutions.
Monitoring and Evaluation established.
Participatory operational planning procedures
established.
Operations Manual produced and distributed within
NHE.
Inter-institutional planning on-going: 1 inter-
institutional workshop in 1992; 1 inter-institutional
workshop in progress.
Presentations at 2 workshops given regarding
community/civic body formulation & structuring.
Established system of up-front subsidy.
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Project: UPGRADING
First Problem Area: Sale of land not envisaged as a componentinitially,
complexity under-estimated; still many pending cases.
Issues: Resettlement of Singles Quarters population was not properly organized and was poorly
documented.
Conditions of resettlement were not clearly established or explained to the people.
Affordability of settlers was not established before the move.
Land ownership is a concept alien to lots of resettled people.
Lack of proper information and community involvement contributed to complexity.
Rapid urbanization was a new conceptto the planners.
Land prices were not available.
Communities were not stable after resettlement.
For the first time NHE had to deal with beneficiaries already selected and settled.
Problem derives out of imposing a formal ownership solution into an informal situation --
alternative arrangements could simplify process.
Lack of NHE manpower and meetingfacilities.
No proper analysis of the problem was made before action taken on resettlement.
Second Problem Area: More Starter Solutions were expected in the project by
now.
Issues: Confusion in team regarding the 6-months trial paymentperiod.
Criteria to include public service employees with subsidies in programme notyetfinalized with
Public Service Commission.
NHE and the team are not properly "marketing" the idea -- mostly full houses are offered.
Continued...
Implementation of Starter Solutions could only begin after Deed of Sale signed.
Affordable clients who were contacted didn't start their savings.
People have problems with money during the first part of the year.
Affordable clients are not interested in self-build; they want everything built by us, which
requires longer to make savings deposit.
Complexity of the use of communal water taps for construction ofstarter solutions (payment,
metering, distance to site, etc.).
Infrastructure construction works caused delay in construction of starter solutions (restricted
access).
Third Problem Area:- Self-help, self-build was neither achieved nor encouraged.
Issues: Participants have not yet metbasic criteria to commence building.
NHE mostly oriented towards its options and prototypes.
The people do not trust NHE to provide them with what they need, but impose on them ,
expensive solutions.
Otheractivities like brick-making activities were not.encouraged even though wefelt likeit.
Solutions, procedures & finance of starter solutions need to be adjusted to include more
flexibility.
Fourth Problem Area: Communalfacilities are inadequate; toilets are too few
(Greenwell Matongo has only 2 communaltoilets for 300 families).
Issues: Problem not previously raised, so no action was taken.
Resettlements should be accompanied by clinics, schools, open markets, etc., for residents.
Municipality says Greenwell Matongo cannot be connected to sewer, aqua privy solution was
rejected.
Other Problems/Issues: Community leaders would like to be involved in repossession process.
Community would like to oversee the process of evictions.
NHE costs (design, marketing, administration) on starter solutions should be reduced to lower
the prices.
3 sewerage pipes in Onheleiwa burst but Municipality does not respond to request to repair.
Find different solutions for people not permanently here.
Project: CORE HOUSES
Problem Area: Core houses were supposed to be built already.
Issues: Participation process and savings requirements result in delays in beginning construction.
Participants have not yet met basic criteria (deposit payments).
Developmentof land took longer than expected, not yet finished.
There were delays in securing land, in civil services design preparations, and in cost estimates.
Delays in implementation due to length formal approval procedures: erf size issue, and lay-out
plans approval.
Mistakes in preparation offirst tender documentfor core house construction produced delay.
Planning of deadlines was poor, there were not enough personnel; poor delegationoftasks.
Insufficient manpower planning and provision for this and pre-existing NHE projects.
Erven sizes versus governmental approval.
No show houses built yet.
Project: BUILDING MATERIALS LOANS
Problem Area: No building materials loans made!
Issues: BML initiation has been linked to completion of previous other components (chronological
inter-relation.
No conceptual work, no implementation details worked out. Commencement priorto starter
solution and core house completion thus not possible.
NHE building materials scheme experience in rural areas not being transferred to Windhoek.
High administrative costs to be recovered, and controls are required.
Uncertainty about approval (formal) requirements of municipality prevented project team from
negotiating practical solutions.
Project: LOAN GUARANTEE FUND
Major Problem: Loan Guarantee Fundis lagging in implementation. Only 2
instead of 3 institutions involved; after 9 months, no loans issued by the
private sector institutions in the scheme.
Issues: Higherrisk levels today.
Change in risk assessment (20% provided by LGFis not enough).
Effectiveness of collateral is not acceptable.
Continued...
Deterioration of economy from positive growth to negative growth.
No changein attitude of private sector financial institutions to finance loans under LGF.
Weakfinancial discipline within government housing subsidised schemes.
Lack of control within government housing schemes by personnel officers.
LGFis not being aggressively marketed; should go outside Windhoek, if possible.
No appropriate marketing strategy and media used (only newspaperads).
Poorer clients do not approach building societies.
Building societies lack knowledge of economic strengths and weaknesses of target group.
No motivation of developers to produce and put in market solutions in the cost range financed
by the LGF.
Project: INTERNAL INSTITUTIONAL DEVELOPMENT
Major Problem: NHEs procedures were not adjusted for upgrading-type projects,
and this causes delays in implementation.
First Problem Area: Loan recovery is going on slowly, and this will slow the
progress of the programme; more clients are in arrears in making erven
loan repayments than was expected.
Issues: No enforcement of payments madeeffective yet.
Time between resettlement and erf sale contract (1 year) was too long.
Unwilling resettlement versus affordability.
No perception of cost of services.
Erven owners could not pay without account numbers.
Willingness to pay not enough stimulated by community developmentpeople.
Payment procedures in NHE notfully coordinated nor prepared on time.
Issues, like home ownership and cost of water not explained sufficiently.
Lack of communication on procedures to target group.
Too high work load for field team to go into details.
Second Problem Area: Affordability assessmentcriteria not correctly applied.
Issues: Lack of communication within NHE.
Concept of "household income notclear.
Forfirst affordability assessment this was not important, because erf loan contracts done ontrial
basis.
Third Problem Area: Too few people are saving for deposits.
Issues: Other savings priorities than a house.
People need to see what they get for their savings (more starter solutions built).
Lack of a marketing/promotional strategy.
People don't trust that they will get what they want for their savings from NHE.
Technical problems for NHE in receiving small or partial amounts of monthly instalments.
Lack of integration between different Oshatotwa projects and within components.
There is a communications and attitude problem between community and NHE cashiers.
There are communications problems between NHE cashiers and headquarters.
Some NHE staff are reluctant to accept the Oshatotwa Programme as an NHE programme.
Fourth Problem Area: "Risk averse" behaviour leads to more bureaucracythat
is not good for project.
Issues: Noissues identified.
Project: INTER-INSTITUTIONAL DEVELOPMENT
Major Problem: Other agencies (MRLGH,private sector, etc.) have not
participated as much as planned during the implementation.
First Problem Area: Government continues to subsidise interest rates, in conflict
with National Housing Plan.
Issues: National Housing Plan only document, has not been implemented.
Lack of regulation and procedures to effectively implement the housing policies.
Up-front subsidy system should be implemented by Ministry of Finance, not MLRGH.
Second Problem Area: MLRGH does not understand difficulties of land-pricing
in Windhoek; also does not fully understand that KfW funding to
Oshatotwa programmeis a grant.
Issues: No consistent land-pricing policy developed by the MLRGHin consultation with others.
Issue of erf sizes needs to be addressed by NHE, the Municipality and the MLRGH.
Encourage people to sub-let part of their plots.
Third Problem Area: Appropriate standards not successfully negotiated with
Municipality and MLRGH(street standards, plot sizes).
Issues: Political problem of acceptance in period oftransition.
Municipality has developed reception area with 200m? erven.
Question is not "lowering standards, but offering options.
Fourth Problem Area: Project partners have not met regularly or effectively over
two years.
Issues: No formalized or mutually agreed squatter policy (transit areas).
Steering Committee on squatters was dissolved.
National Planning Commission should be contacted to take intermediary and coordinatingrole.
Mistrust between institutions.
Possibilities of effective cooperation overestimated.
Fifth Problem Area: No other projects so far initiated in other towns.
Issues: Noissues identified.
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{SESSSST:Be:Undertaken(050555555
Assist clients in
building and
improving homes
and environment and
community on an
incremental basis, by
promoting self-help
within their needs
and affordability.
Sale of erven
Starter Solutions/
Building Mater-
ials Loans
Solve the situation of the 136 unoccupied/vacant erven,
and complete their sale. Develop alternatives for plot
ownership, such as lease arrangements, for pending
cases.
Makelist of pending cases available to specific head-
person within time limit.
Assess affordability and repayments situation of clients
having signed contracts.
Increase and train personnel for social work and
administrative tasks.
Encourage communities to use Community Centres;
Expand use of the Centres by the Oshatotwa team.
Property ownership in urban centres should be clearly
spelled out to the people (the good and the bad, and
the complications).
Establish "new erf price" in case evictions would be
realized, necessitating resale of erven.
Formulate Terms of Reference for an institution to
study aspects of resettlement (analysis/conclusions).
Engage a research agency to do a historical and client
survey.
Identify broadest possible definition of "household
income" and re-assess affordability of all clients.
Improve marketing and encourage savings performance
to expedite delivery of whatever solutions chosen.
Encourage beneficiaries to speed up their savings
towards their deposits.
Investigate hooking-up of a private tap in the
unserviced areas for construction purposes.
Offer cheaper designs, for instance only one room,
without wet core, that is extendable.
Sample starter solution houses should be build in all
areas to better clients perceptions.
Continued...
Materials Loans
(cont.)
Self-Help
Other Activities
Clanfy and define policy within team on "trial"
payment penod.
Promote alternative solutions to starter units with the
building matenals loans, to better respond to felt
needs of applicants.
Conceptualize development and implementation details
urgently to be worked out by building materials loans
component.
Finalize all details for employer-subsidized clients, and
comprehensively implement immediately.
Use Community Centres for extensive visual
information on programmeoptions.
Investigate self-help (own labour, owner built) and self-
build (owner built with contracted builder) options.
Develop and promote range of options from erf only to
self-built to contract-built houses, all with incremental
possibilities.
Help people understand the cost impact ofself-help.
Encourage self-help (Saamstaan type) situations where
community provide manpowerand planningto realize
the goal of individual starter solutions.
Study the possibility of producing building materials,
such as bricks, by the beneficiaries.
Organize building groupsto facilitate self-help
construction.
Produce inventory of existing communal services
in/around area and assess deficit and improvements
required.
Act to have additional communal facilities provided by
municipality, in cooperation with community leaders,
especially communaltoilets in Greenwell Matongo.
Set up task force to treat problem of non-payments and
evictions, involving community leaders and Regional
Councillors. Develop responsible roles for
community leadership cooperation with NHE in this
process.
Continued...
Project
Expected
Results
Components/
Action Areas
Activities
To Be Undertaken
Upgrading
(cont.)
Other Activities
(cont.)
Infrastructure for informal markets should be
constructed as soon as possible to enable people to
operate their local markets in organized, sanitary
situations.
Major damage to municipal facilities, such as burst
pipes, should also be reported to the Technical
Section of NHE for intervention at high level with
municipal authorities.
Investigate business re-establishment promises/offers
made to resettled people.
Core Houses Land has been
developed and core
houses built at
appropriate
Standards that are
affordable and
acceptable by low
income groups.
Core Houses Improve work organization and personnel
assignments to speed up the process.
Build some show houses on sites; one show house on
each site could be used as NHE site office.
Provide incentives to clients that fulfil obligations in
timely fashion.
Revitalize and increase intensity of promotional
campaign for core houses, including going beyond
NHE waiting list. Use multiple language
information.
Expedite marketing of core houses on land
immediately available, and on land soon to become
available.
Follow-up on-going land development work on core
house sites to assure timely completion.
Complement with building materials loans
component in addition or instead of core houses.
Investigate possibility of completing first 105 core
houses and selling them on the open market.
Building
Materials
Provide building
materials loans for
construction,
improvement and
extension of houses,
with financial,
technical and social
assistance to low-
income groups.
Building
materials loans
Evaluate previous NHE experiences with building
materials loans.
Revise and adjust the building materials loan
component considering making them available to
beneficiaries not having other NHE loans, and
considering the difficulty of very low-income
people to meet guarantee requirements.
Establish procedures for loan conditions and
approval systems, identify target groups, establish
system of monitoring progress and repayment, etc.,
for revised concept. Allow for different (including
informal) sources of materials and supplies.
Continued...
Elaborate an advertising (publicity?) concept.
Supply and train NHE personnel to handle the scheme.
Start implementation with current NHE clients,
including upgrading settlers.
Evaluate performance and adjust as necessary every 3
months; monitor administrative costs demand and
recovery.
Use "Build-Together" concept and experience in
elaborating scheme.
Check municipal regulations (building requirements in
particular) which may adversely effect B.M.L., and
negotiate changes where needed.
Loan Private sector is L.G.F. Implementpilot project of 20 houses secured by LGF.
Guarantee actively participating
Fund in financing house Revise risk covered conditions, increase the guarantee.
for low-income
groups assisted by Identify any core house beneficiaries that could be
NHEs Loan financed under the LGF.
Guarantee Fund.
Design and implement appropriate marketing strategy,
using experience from pilot schemes.
Motivate private developers to use system.
Evaluate LGF after completion of pilot scheme.
Institutional Institutional capacity Institutional Revise and adjust Operations Manual forall
Development has been strengthen- Development components.
ed to implement and
replicate programme.
Train (and retrain) staff to use the Operations Manual.
Design control mechanism which ensures that
procedures are adhered to.
Incorporate Oshatotwa's CDC as permanent NHE staff.
Manpowerrequired to be planned properly and resource
needs be communicated to NHE managementin a
timely fashion.
Integrate Oshatotwa Programme into NHE (do not
discriminate againstit).
Integrate Oshatotwa needs into NHE systems.
Continued...
Institutional
Development
(cont.)
Evaluate existing NHE general policies, procedures and
regulations with regard to their appropriateness to
upgrading situations, and adjust if necessary.
Educate the community and clients on payments
procedures.
Design enforcementstrategy, involving community
leaders and Regional Councillors with their political
support. Inform community leaders and Regional
Councillors of arrears situations.
Provide alternatives to evictions, e.g., subletting, so that
eviction is a last resort.
Makecareful preparations offirst evictions.
Provide account numbers before Deeds of Sales are
signed.
Define household and its incomeclearly, and apply
household income to affordability assessment.
Improve relationship between cashiers and community.
Improve communication of savings methods and
amounts.
Inform NHE staff of progress in Oshatotwa
Programme. Explain NHE systems to Oshatotwa
Programmestaff.
Contact National Planning Commission for support of
coordination among housinginstitutions.
Revise structure of Steering Committee, assign clearer
role than before, and revitalize it as a coordinaung
committee.
Do not use "lower of standards" in any documents; use
"different options."
Upgrading:
Community
Development
Sale of
Erven,
including
Repossession
and
Reallocation
Infrastructure
Improvement
Community
Centres
& Other
Facilities
Starter
Solutions
Self-Help
Update household composition, income and housing preferences data.
Set up Task Force (with community leaders and Regional Councillors) to treat
problems of non-payment and evictions.
Promote representative community leadership through elections and in cooperation
with Regional Councillors.
Support community initiatives, like creches, adult literacy, sports & social events,
in cooperation with leaders and NGOs.
Investigate pending cases (136 in Feb. 1994), monitor turnover cases, and complete
sale of erven.
Establish system of fixing new erf price and special waiting list in case of
evictions andresale.
Design enforcement strategy which also provides alternatives to evictions, e.g.,
sub-letting.
Implementevictions.
Supervise completion of ongoing infrastructure works in Okuryangava.
Follow up municipal works at Greenwell Matongo.
Investigate toilet situation, e.g., at Greenwell Matongo, and take action if necessary.
Follow up installation of street lights by municipality.
Promote use and self-management of community centres by community groups,
with NGO support.
Build community centre in Greenwell Matongo.
Prepare inventory of community facilities (public toilets, markets, schools,clinics),
identify deficits, and set up work plan for improvement with community
leaders, municipality and otherinstitutions.
Introduce communication system to report on damages of community and municipal
facilities.
Design marketing strategy for starter solutions, and building materials loans options.
Assess affordability for and interest in starter solutions or building materials loans.
Encourage savings.
Prepare options for government employees.
Develop and promoteself-help/self-build options.
Encourage mutual help (Samstaan type) building groups.
Study possibilities of producing building materials (e.g., bricks) by beneficiaries.
Continued...
Institutional
Development
NHE
Inter-
Institutional
Development
Revise and adjust Oshatotwa Programme Operations Manualfor all components.
Train personnel in social, technical and administrative tasks.
Train cashiers how to deal with unexpected situations and to improve
communications with community.
Incorporate CDCs as permanent NHE staff.
Improve work organisation, personnel assignments, and monitoring of progress.
Improve intra-team communication and flow of information.
Inform NHE staff on progress of Oshatotwa Programme.
Explain NHE system and procedures well to Oshatotwa Programmestaff.
Evaluate appropriateness of NHE policies and procedures for upgrading; identify
discrepancies, and prepare adjustments.
Identify information requirements and change NHE computer programmes
accordingly.
Assess repayments of clients and take action according to seriousnessof case.
Use final evaluation to prepare document for disseminating experience.
Revise composition and function of steering committee, revitalize it if possible.
Contact National Planning Commission for coordination among housing
institutions.
Engage research group to study experiences from resettlement.
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The level of inputs and participation was very good and permitted the workshop to reach good
conclusions in a very short time.
The way in which the workshop took place is Excellent because: 1) it promotes Participation;
and 2) it results in Commitments.
Positive: Like the card system; Negative: Unhappy that NHE COEwas not here; that projects
manager (Uaendere) was not here. Overall, very well done!
It has been effective in identifying problem/activity areas. I hope that these activities
(particularly amendments to procedures) will be implemented effectively.
The workshop was very much educative. I learnt/discovered many other things which came out
of discussion by other participants. It gave us direction that we should follow in order to make
the programme successful.
Community developmentis important and should have been a separate chapter.
The workshop was very fruitful and educative. Implementation of the programmeshould be put
into effect.
I felt that there was a high degree of openness in the two dayssession.
Very happy about the two days workshop, and expect to see the transparency of our theory in
practical work.
Planned objectives should be achieved.
The workshop was very fruitful and helped a lot. I think the proposed cooperation between the
community, NHE, Regional Councillors and municipality is the best of all. People on the ground
will now be properly addressed and madeto understand the importance of Oshatotwa Project.
Very open and honest! Valuable contributions from the otherinstitutions -- hope this continues.
We now hopethis all leads to "Action" & "Cooperation."
Well prepared. Very good presentation methods used. All necessary aspects of project well
covered.
Productive sharing resulted in good progress and direction for continuing Oshatotwa Programme
more energetically.
More field staff should have been involved (+2 CDCs, +2 SCAs); practical operational aspects
were under-represented.
I have gained in-depth view/information regarding the programme. Was previouslyall at loose
ends. Will make work more logical. Very well presented. Thanks. Could I be anything but
committed?
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 2la
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OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 2/b
HOUSEHOLD SURVEYIN THE UPGRADING AREAS
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Annexure 2Ib
HOUSEHOLD SURVEY IN THE UPGRADING AREAS
During the evaluation and planning workshop it was suggested to conduct a
survey in order to update the knowledge on household composition, income and
housing preferences in the upgrading areas. Knowing the target group better is
essential for designing in an appropriate way the tasks ahead, basically identifying
clients for starter solutions and building material loans according to their needs and
affordability. The following steps were undertaken to prepare the household survey:
Preliminary design of a questionnaire
Preliminary definition of sample size
Test of the questionnaire in one area
Evaluation of the test interviews
Revision of questionnaire and final design
Final definition of sample size and random method.
TEST INTERVIEWS IN ONYEKA
Onyeka was chosenfor testing the preliminary questionnaire, because on the
basis of the experience of the community development group, the residents might be
considered to have average characteristics: relatively well organized, but not too
consolidated yet, not too many government employees, not too many pending cases.
The area has 64 erven. The random sample was selected in the office, with the
full list of the erven. Starting with the first erven (2348), every fourth one was
chosen: 2352, 2356, 2360, etc., and identified on the area map. A total of 16 erven
out of 64 were selected which makes a 25 % sample.
The test interviews were held by two of the Community Development
Coordinators on Saturday, 5.03.1994. It took the CDCs only a short time to get used
to explain the questions (in English) to the residents (in Oshivambo). On average
they neededa little less than half an hour to do one interview. People were generally
friendly; only one head of household refused to cooperate. In two other cases the
interviews failed: In one case the house waslocked, in the other the owner had left
the area, leaving an empty plot behind.
PRELIMINARY FINDINGS
A total of 13 interviews were produced. Though in three cases the head of
household was not available and not all the questions could be answered, the 13
interviews provide enough information for some preliminary findings on household
characteristics, income and savings and housing preferences and shed light on
interesting recent developmentsin the area.
Head of household
Head of household is a concept which is generally well understood by the
residents. It is the person whois in charge of organizing life on the erf. Of the 13
households interviewed 6 were male and 7 female headed. The male heads are
usually the main bread earners wholive together with their customary spouse, with
1
or without children. In some cases their brothers are sharing the erf. Female heads
use to live with their children, particularly in school age, sometimes with a temporary
husband, brothers and sisters. In all cases heads of household make income;
though there are many jobless adults without own income, there is not a single head
of household without income of his own.
The head of household is not always the person who signed the deed ofsale,
an aspect wnich has to be carefully monitored by the Programme team. In our small
sample in two cases erf owner and head of household were not the same persons:In
one case a young lady happened to be the erf owner and her older brother was the
head of household. The other case was a household of five children headed bytheir
mother; the eldest son had signed the deed of sale. There was no case of absentee
ownership, an issue whichis particularly relevant to be followed up in orderto avoid
misuse and speculation in the Programme.
Household size
The size of the households is evenly distributed between 2 and 9 members.
Average household size is 5,2 members, against 4,1 during the inception phase.It is
logical that after resettlement the households are now in a process of consolidation
and growth. The sample is too small to allow a correlation between household size
and genderof head.
Age groups
The strongest age group is the one of young adults, between 18 and 29 years.
Old people are rare; only one man of the sample is over 50 years old. The group of
minors is growing, mainly children in school age or recently born; in the age group
from 0 - 5 years the oldest child is 2 years old.
Age groups O-5 |6-12 13-17 18-29 30-39 40-49 50+
No. of persons 5 6 8 24 18 6 1
Within the group of the minors (0 - 17 years)gender is evenly distributed (10
males, 9 females). In the adult group there are still more males (29) than females
(20).
Relationship of household members and types of households
One of the most interesting questions is related to wnat relationship the
members have among each other. Are they people from the same village sharing an
erf and working in Windhoek mainly to support their families back home (single
quarter type of household) or do they consider themselves as independent families
with Windhoek as their new home? The situation of each household might be
different and eventually it is still too early for many to make a final decision. The
extended family type of household is prevailing. But there is certain evidence that
the independent family type of household is increasing.
Of all 68 persons surveyed 13 are heads of household, 6 are spouses of the
head of household, 25 are children, 18 bothers or sisters and only 6 are not directly
related family members.
How little legal marriages with community of property counts for the target
group is highlighted by the fact that in the sample not a single case was detected. In
six cases the head of household live together with a partner: 4 males wih a
2
customary spouse and 2 females with a temporary husband. In the other 7 cases the
head of household was a single: 5 females and 2 men. Children living with the
household may be considered as a desire of integration into urbanlife: 7 households
are reported to have children, 6 are household of adults without minors.
The following table shows how many couple and single households areliving
with and without minors. As a couple with minors is much more likely to stay than a
single headed household without any minor, this four field matrix may be used as an
indicator of stability and integration into urbanlife.
Couple households Single headed HH
With minors 4 3
Without minors 2 4
Only 2 out of the 13 households interviewed, male headed and without minors,
can be considered of the traditional single quarter type: Adults who earn incomein
Windhoekfor their families who live in the rural areas in Northern Namibia.
Household incomeand types of employment
Income data are always sensitive; people are reluctant to provide exact
information for various reasons. Sometimes they cannot give exact information even
if they would like to, due to the fluctuations of the informal job opportunities. In our
sample / cases, more than 50 %, may be considered reliable, 5 households
obviously understated their income, 1 household did not give any information on
income. This result is not bad and definitely due to the relationship of trust the CDCs
meanwnile have established with the residents of the upgrading areas. It maystill
improved if the interviews with the heads of household would be done in more
privacy which eventually would require an additional appointment and is not always
possible.
Of the 7 reliable cases 5 stated a total household income below 1 PHSL,
between $ 500 and $ 750. The other 2 households have an income wnicnhis close to
2 PHSL. The household income per capita varies from $ 100 to $ 450, with the
median of $ 187. In only 2 cases the household income was produced by one
person, in 4 cases by two persons and in 2 cases by three persons. In these two
cases total household income was more than double the amount of the main bread
earner's income. This shows clearly that a household income concept has to be
used for assessing affordability instead of taking only the main bread earner's
income, once the household has decided to stay in Windhoek and invest into the
improvementof the housing situation.
Typical jobs are laborers on a construction site for men and domestic workers
for women, the classic domains of first generation urban immigrants in many
countries. Three persons work with a Government agency, some menare laborers or
security officers in a factory, there are a some self-employed trades-women, a
hairdresser and a taxi driver. After evaluating the answers on workit wasfelt that in
the survey a Classification of formal and informal employment was not sufficient.
Instead it should be asked what and wherethe adults are working.
Savings
One of the outstanding findings of the study during the inception phase had
been that 59 % of the resettled households had a savings account with a bank. This
3
was confirmed by ourtest survey. Out of the total of 13 households 7 have a savings
account, three of them with deposits of more than $ 1.000. Although these savings
are not necessarily made for housing but to cover emergencies, it is important that
the Programme develops a strategy to encourage savings for housing. NHE has to
prove that saving with NHE pays back in house improvement soon.
Construction experience
Of the 13 households surveyed 7 had at least one member with construction
experience. This finding confirms the expected potential for self-help construction. It
will depend on the Programme team, particularly on the Self-help Construction
Advisers, to what extend it will be tapped.
Permanencyof residence and desire for house improvement
Exceptfor one head of household all others want to stay permanently in
Windhoek. The exception wants to go back to his home place in Northern Namibia
one day. This is another evidence of the strong desire to become urban dwellers.
Consequently they want to improve their housing situation. Almost all would
like to add another room, only one respondent prefers to improve the quality of the
materials used for walling and roofing. Another one thinks to build a full house.
Obviously there is more need for additional space than for improving the quality of
the present structures. Not a single household showed a preference for improving
the sanitary conditions (bath or toilet), The Programme has to take these
preferences into account. Imposing housing solutions that do not cater for the felt
needs hasto be avoided.
RECOMMENDATIONS
From the test survey the following conclusions were drawn, to be kept in mind
to carry out the general survey:
1. The sample size should be 25 % of total households in the Okuryangava
areas. In Greenwell Matongo (291 erven) a 20 % sample seems to e
sufficient.
2. The interviews should be done exclusively by the CDCs. If possible they
should work as a team sharing the interviews in one area. They will have to
go in the evening hours and on weekends to meet the head of household.
They should agree on an oral translation of the questionnaire into
Oshivambo whichall three would use when putting the questions. They also
should ask for as much privacy as possible, especially when talking to the
head of household and asking for income data.
3. The CDCs should conduct the interviews with calm and patience. After
finishing they should make sure that all questions are answered. In case
they do not get answers for all questions or if the head of household is not
available, they should make an appointment to finish the interview. They
should leave the housefriendly and never forget that they represent NHE,
helping people to house themselves. |
4. A question of particular interest refers to the relationship of each person to
the head of household. The CDCs haveto ascertain that family relations are
4
blood relatives, e.g. the children are really the children of the head of
household with whomsoever.
. Some persons are a kind of tenants, paying rent on a regular basis in cash
or kind. The interviewers have to find out if they really belong to the
household. Our understanding of a household is a socio-economic one:
Adult members of the same household share the costs of running the place,
particularly the costs of food and water, and feel a joint responsibility
towards the children and the sick. Ourfirst question on how many people
normally take their evening meal together, is just an indicator of wno may be
considered members of the household. If a tenant does not assume other
obligations towards the household than paying rent, he should not be
considered a household member, even if he normally joins supper. This
means also that not his total income, but only the portion he pays as rent Is
considered part of the household income.
. Sometimes the person who signed the deed of sale is not the head of
household. It is very important to note wnat his relation to the head of
household is. If he lives on the erf, this relationship will be easily identified.
If he does not live on the erf, four questions have to be carefully asked:
Whatis his relationship to the head of household? Whereis he living now?
When did he comethe last time? Does head of household pay him for using
the ert?
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX3/a
SELLING PRICES OF OTJOMUISE CORE-HOUSES
S2L05T iG. ELECTAUCAL COMNECTION COST (FEA HOUSz) 2,00 DENTLINGER BUTLECRS: FART |
= SINSL PART I
23.0 PAGFESSIONAL COST NRE-raAleCRTICN FAYASLE iG2.60 §
1. Ds72 OF RUN 2615/94
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Zi, OTRER NE TECHN FEES £259, 00
fer... .ceT DESCRISTION & HOUSES - KFW
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Sei CF COMMENCEMENT CF CONSTR. ffialS4$ 2g. OTHER ERF CCSTS «PER ERF) (consorication/Subdivisior:! 0.00
Tone
tte2 fF Stow TURE BY Naz oi 4/34 24. TOTAL OTHER TECHNICAL FEES (CLERX GF WORKS) 25000. 00
fe use OF COMPLETION $/'23/34 ZS. TOTAL CONTRACT ZSURANCE Zhe. 42
' OF SCNTARCTOR PENTQENSER BUILDERS 25. ARCHITECTURAL FEES Nae FRSFORTION PAYABLE 100.00 &
23 GF SUE-CONTRACTORS Nir C7. COST SEFOSS PROJECT (TRANGTERED Te car COST) POR ck? 447.07
27.4 TOTAL RATES AND TAXES Trede OD
3,0 CONSTRUCTION PERIOD IN week ce C7.¢ TOTAL INTERIM INTEREST 12420. @
27,3 TOTAL i THER (,evccvesevenssaveseesen) 4,00
CF WeenS TO FIRST RANCOVER 0
. 28, DOCUMENTATION FE=S 6.75 %
bl, SCF CONSTRUCTICN CCSTS EXPENDED box
2° FERST HANDOVER 29. PROJECT TEAM FEES 2,00 %
t: } IK SUTERVISION 109 30. PROMOTION COSTS 0.06
Si. ARCHITECTURAL FSES
ia. SOTA. CONTINGENDIZ: cSCC0, 06 - FIRST HOSS 0.00 %
- REPETITION (FIXED FEE PLUS 4X) R 2,174.00 2.40 %
ve. COTRL SITE WORKS Ga OF - Szavites c.0G 4 ChECK=D EY:
TASH eROue LEADER: Cece eeorseeneseeesaeseososeresseoves
us int TRH\\g-28 CCST miei wera:o cost 30. 0% a. u:TUSE OMTN fers cot a MANAGERS TECHNICAL SERVI ces: Coe oeeneretensesesaeecetes
tide d WHE Cost 115. SNR MANRSER: FINANCE: sesccecccccsscessessuceveccseceus
JS. ROGITIONAL ACLCRETESS SER WEEX (FRCECT TERM) G.00 KM/WEK SNR MANAGER: MARK & TECHN SERVICES. we sencceccccccccces
2 TITAait WITASA PAeT (Res pics £6
owe SoWoAACS TANI too" as ww: (PEs FE we ) Ve GO
o4. INTERIM INTEREST ( YES/ NO) 0.10 TENDER COMMITTEE APPROVAL, DATEs. sc ccccscveccuccceeeees
Lio ween CONNECTION Cosy (SE3 ROUSE) 45u. 00
i c 3 4 J G 7 & 3 io li ie Is 14 iS 16 V7 $6 3 ed TSTALS
= TYF=S n CORE eCGRo = COPE ACORE A CORE A CORD A CORE G-! CORES A-I CORE A-i CORE E SHEL ES SHELL So SHEL EF SHL FE Shcli B SHELL OB SHELL Ob GeoLiL OW SHEL OB OSHS
i 2 S 4 a é 7 ! : 3 1 2 3 4 a 5 7 § 3 0
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> oade 25.02 24.22 inact 924,i¢ te. 22 00Ghee GE OS.9S SJE EE SBE AGS 4EE 47,520 4752 47.82 4TSEO47LEE GFE 1636, ou
s.0 CONSTR CORT 25200.00 S7E5000 55100, 00 5855000 1STKE 15850. G0 18900.) 21655. 05 21456, 90 20709. GO SHIGG, G0 A155.) 25900.96 S0780,00 28250. 0G ZE455. 00 Fh500. 00 SE550.00 E957, 9G 28950, 00 1G5E7L7. 85
vee. CONSTR COST DT! 2S7S. 94 |O81. 75 S477. 55 Lo7ES. Ge 4S. SE 16455. 74 1722505 S2192.55 21585.50 21255.65 S078 2S. 87 FE543.29 31408. 45 23957. 12 S7E.05 274708) SCSILE 25756. 79 2557453 MS47S7
L recc COST {27} S55, 41 Séce4! 555.41 S824: 555.4) Sead) fea4) 275.54 579,54 572.54 £95.66 595.58 S05.é6 535.63 555.58 S5D.S8 «55.85 S5E.56 595.58 35.58 chites
Noo SOF FEES FT? £25.37 B52.57 $53.57 85.97 $03.97 53.97 955.57 i256.50 1265.50 1255.50 $578.05 157R G2 1678.65 8275.05 1875.08 1575.05 f8738.03 faTROF 1875.02 1275.02 T5866, 12
li. AF COST CAT) STEER? 1 SSa67 6555.07 1058S. 57 105S5.57 CIES. 87 iekbk.o7 WSSE. ST 1CS88. 67 19558.87 $o88s.67 iolse.67 i2Ses.e7 1538.57 98k. a7 Noss.c7 OSes. 87 0858.57 1532.57 20585, $7 aN
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OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 3/b
EVALUATION OF TENDER FOR LAND DEVELOPMENT
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 4/a
NHE OPERATIONAL FORMS FOR LOAN GUARANTEE FUND
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 4/b
SWABOU's LGF PREsSs AD
| Aidid in
'Ugandan talks
{ .
NAIROBI: Somali warlord Mohamed Farah
Aidid left the Kenyan capital Nairobi
yesterday for talks with Ugandan President
Yoweri Museveni in Entebbe,officials said.
Aidid had beenin Nai-
robi since United Na-
lions-sponsored peace
talks in Addis Ababa
collapsed last month.
Efforts to open Ken-
yan-brokered ncgotia-
tions in Nairobi between
Aidids Somali National
Alliance (SNA) and the
Groupof 12 factions led
by his enemyself-styled
Interim president Ali
Mahdi Mohamed met
with little success, ac-
cording to Somali
sourccs.,.
Aidid, who caught a
scheduled Uganda Air-
lines Night to Entebbe,
was expected to spenda-}-. i
few days in Uganda be-
fore returning to
logadishu via Nairobi,
officials said here.
Aidid had planned to
retum tothe Somalicapi-
tal this weekend, but
changed his plans when
Museveni agreed to re-
ccive him in Entebbe, a
source close to the war-
lord said. - Sapa-AFP
THE NAMIBIAN
Mandela in Angola talks
LISBON: Angolan
President Jose Eduardo
dos Santos will host Ncl-
son Mandela and Mo-
zambique President
Joaquim Chissano for
talks he called crucial to
peacc insoutherm Afnca,
an aide announccd yes-
terday. ;
The mecting, sched-
uled for Feb 2-3 in
Luanda, Angola, will
focus on ways to avoid
an cruption of massvio-
lence after clections are
held this yearin Mozam-
bique and South Africa.
South Africa's clec-
tions will be, without
doubt, the most impor-
tanteventon the African
continent, an aide todos
Santos told the Portu-
gucsc news agency
LUSA.
Dos Santos hopes
trade alliances and ac-
celerated economic de-
velopment will end the
regions history of pov-
erty and civil strife, the
aide said.
The three Icaders were
united for ycars by Marx-
istidcology, and bytheir
mutual struggle against
the South African gov-
ernment, which sup-
ported rebel movements
in Angola and Mozam-
bique and attempted to
wipe out Mandela's Af-
rican National Congress.
All three have since
come out in favoroffree
market sysicms.
Mandcla and
Chissano. like dos
Santos last year, arc lead-
ing candidatcs in clec-
tions aimed al cnding
ycars of violent internal
strife in their countries.
Mandela is almost as-
sured the presidency
when South Africa's
black majority gocs to
the polls for the time in
the countrys history in
Apnil. Buthe must finda
way to conciliate both
rival black militants and
the white minority.
A datchas not yet been
set for Mozambique's
clections.
UNelection monitors
are procecding cau-
liously, hoping to avoid
the retum to fighting that
tamished Angola's first
democratic elections in
Sept 1992.
- Sapa-AP
Action
against
animal
trade-:--/
1ONG KONG:The
sritish government
announced tougher
nicasures yesterday
> combat illegal
ade inanimals, and
sid it was adding the
American black bear
to its list of protected
recies.
Starting Friday, tigers
- dl join rhinoccroses on
the listif animal parts
whose import andex port
nedicine is forbidden,
ok Lau, an Agricul-
wie Departmentofficial,
told a news conference.
Tne ban also covers
:$ purporting to be
Ss of those animals,
aid, and the govern-
ment may increase the
penalty, now 25 000
Fg Kongdollars (US
¢ 3200)fine fora first
Q ase and up to six
months imprisonment
for repeat offenders.
u said Hong Kong
ai dtocomply with the
Cention on Interna-
tional Trade in Endan-
gered Species. Countrics
f
tr.
thi iolate the 120-na-
lic CITES pact risk
ira canctionsunder US
law,
Populauions of tiger
are ~* critically low lev-
cls sing to poaching
and wegling of tiger
pans and derivatives for
the traditional medicine
marker.he said, - Sapa-
AP
C] CySeth
ett. .we hwy
teAN Messe ete y
te aAPROPACee58
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House...Egumbo... Home... Huis... Oms..
Onganda...Joint... Kepen...Kaya... all
these words have something in com-
mon:a place of your own; a place where you
can raise your family; where you can have
peaceful nights and wake up fresh in the
moming, ready to carn your daily bread.
» gt f @ @ 4
are very slim.
_ How manyofus canclaim to haveaplace of
= *our own?° ss
Not manyofus. In fact, if you don't enjoy the
benefits of a housing subsidy from your em-
ployer, yourchances ofowning your own home
a?
SWABOUhasput more people into their own
homes than any other financial institution in
Namibia. We alwaysstrive to give youa housc
which you canturn into a home - to give your
own.
§ supported-by aGUARANTEEFUND..
Requirements to participate in the schemeare...
... to earn a joint maximummonthly salary ofN32 400
... fo provide a 10% deposit (negotiable)
... to provide the Bond and Transferfees, and
... Lo occupy the house yourself.
You can qualify for a maximumloan of N$42 000 if you mcetthese re-
quirements. The Guarantee Fund will provide a 20% surety for you,
cnabling SWABOUto grant you a 90% bondfor your own home. With
this assistance, we will still give you the opportunity to choose between
building your own home, according to yourneeds, or buying an existing
house.
a
e
Od
Owning a home was neverthis easy.
Anotherstep in the right direction,
Speak to SWABOUtodayor contact your nearest
NHE office for more information.
os
<1 Swabou can makeit possible for you to obtain home finance assistance,
family that extra assurance of a placeof their
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 5la
DRAFT PROPOSAL
REVISED CONCEPT FOR BUILDING MATERIAL LOAN COMPONENT
ANNEX 5/A
THE BUILDING MATERIALS REVOLVING FUND
(first draft)
A. PROPOSALIN THE INCEPTION REPORT(DEC.92)
The Oshatotwa Housing Programmeincludes a Building Materials Loan
(BML) scheme to assist households in the improvement of their housing
situation according to their particular needs and financial possibilities.
Conceived as an instrument to support initially only the Upgrading and Core-
house projects, the aim was eventually to extend it to encompass other areas
and low-income groups in Windhoek (up to 3 PHSL).
Relatively small loans (N$.500-3.500) at market interest rates, with short
pay-back periods (6 months to 3 years) would be offered, usually in building
materials (although the possibility of cash loans was also considered).
According to the level of community organization, group loansfor infrastructure
improvements, production of building materials or other community priorities
could also be approved. Criteria for repayment, extension of second loans,
operating procedures and required activities to implement the schemes were
proposed.
B. NEED FOR ADJUSTMENTIN CONCEPT
A re-evaluation of the component made in July 1993 reached the
conclusion that the potential demand for building material loans in the
Programme's areas was overestimated at the Inception stage. Consequently
the funds assigned for BML were reduced from the initial N$ 4.025.000 to NS
1.263.000.
As of February 1994, implementation of this component has not begun,
mainly due to the concept that loans should be issued as a follow-up option
after the beneficiaries had completed a starter solution or moved to a core-
house and the delays in the execution of the Upgrading and Core-house
projects. However, the Programme's field workers suggested that some
beneficiaries in the upgrading areas might be interested in using BML as a
more flexible alternative than a starter solutions to house development. On the
other hand, NHEfeels that there is a need for house-improvement loans among
other low-income groups in Windhoek. At the Programme's evaluation
workshopit was decided to adjust the original concept in order to start issuing
house improvement loans along two lines: a) initiate implementation by
extending loan facilities to groups not originally considered and b) offer on an
experimental basis BML as an alternative option to starter solutions in the
upgrading areas.
C. BASIC PRINCIPLES AND ASSUMPTIONS
As other components of the Oshatotwa Programme, the Building
Material Loan scheme is based on the National Housing Policy. Particularly
relevant are the following principles:
D.1 (b) The Government will assume a role offacilitator rather than a
direct provider and administrator of housing..., and
D.2 (a)...The primary responsibility for providing family housing rests
clearly with the head of each household, using resources at his or her
disposal...
The BMLclients will be expected to manage most of the improvement
process with limited assistance from NHE: define the needs, obtain cost
estimates, purchase materials, hire labor wnen required and so on. NHE will
assess affordability, evaluate the loan guaranty, disburse money, monitor its
use and recover the loan. Given the relative small amount of the envisaged
loans, it is important to keep administrative and related costs to a minimum if
the system is to be effective and self-sustainable.
The crucial assumption is that the client is capable and willing manage
his house improvement process. The validity of this assumption needs to be
verified, as it seems to run against somelocal traditions.
e Under the former regime the norm was to provide houses to low-income
families once they were allowed to stay in the city. This has created
dependency and raised the expectation that housing is something to be
provided by the Government;
e Though there is a widely spread tradition of self-help construction in
rural areas, many immigrants seem to believe that in an urban
environment a house has to be constructed by a builder. Rather than
building their own house,first generation immigrants prefer to live in
temporary shackstill they can get a formally built one;
e The concept of incremental housing developmentfor low-income groups
is relatively new. in Namibian urban areas. Migrants are not used to
purchase building materials; the few self-employed builders and masons
do not know howto estimate the value of their work.
On the other hand, since Independence, indications that households are
capable of improving and extending their dwellings are evident in areas like
Katutura, Okuriangava or Wanaheda. In this context, the Building Material
Loan component of the Oshatotwa Programme will support these embryonic
tendencies of self-managed housing improvement process, and counteract the
strong tradition of expecting houses from the Government.
D. FIRST LINE OF ACTION: INCLUSION OF OTHER TARGET
GROUPS
Justification: Many low-income families in Windhoek already own a
house, usually a former rental house purchased from the Municipality or a
house obtained through some prior NHE programme. A large numberof these
constructions are in need of maintenance, improvements or extensions. The
implementation of the BML scheme will start immediately catering for the needs
of such potential beneficiaries as long as they can afford it and comply with the
basic incomecriteria established in the Separate Agreement (total HH income
<3PHSL).
Operation: lt is proposed to establish very simple and expeditious
implementation procedures, to be handled mostly by Katuturas Finance Branch
personnel with limited assistance from the Oshatotwa Team staff. To facilitate
the process, it is suggested to limit eligible beneficiaries during the first six
months of implementation only to present NHE clients with a good repayment
record. Once procedures clearly established and known by NHEstaff, the
schemewill gradually be extended to other type of potential beneficiaries.
Loans: Improvement loans between N$ 500 and N$ 5000 will be made
available, generally in cash, to be reimbursed in 3 to 36 equal monthly
installments, giving the client the option of choosing the repayment period
according to his needs and affordability. Clients will be informed that loans are
granted exclusively for house improvements, any unauthorized use will result in
the loan being canceled and the outstanding balance to be reimbursed upon
request by NHE. Amounts up to N$ 2.000 will be disbursed in one operation:
bigger loans will be divided in two payments. Prior to the second disbursement,
NHE will check on the correct use of the first one. A simple table will be
prepared spelling loan details, like the one proposed below showing monthly
172 60
345 179 119 91 63
91/7 262 179 136 94
689 349 238 181 126
1.034 924 357 2/2 189 148 106
1.378 698 476 363 252 198 141
1.723 873 995 454 315 247 176
Collateral: Alternative ways for securing the loans should be explored.
It is suggested to operate the scheme on the model of consumercredits rather
than in traditional long-term housing finance, secured through property
mortgages. Loans secured through the signature of promissory notes, vouched
for by a third party or other appropriate credit instruments could provide
enough guaranty and permit approval procedures requiring only one or two
days.
Marketing: \\t is very important that Knowledge about the BML scheme
reaches all potential beneficiaries. At the initial stage, targeted to actual NHE
clients, information could be conveyed either through NHE's News, a monthly
newsletter distributed among NHE home-ownersor through individual letters to
previously selected potential clients. At the extension stage, radio and press
publicity would reach a wider market. Before starting the marketing campaign,
all NHE staff involved in implementation must be properly briefed and trained.
Technical assistance: Will be provided by NHE as an option. Actual
costs will be charged as a fee and will be included in the loan amount.
Technical assistance may range from the provision of type plans with bills of
quantities to advise given by the SCAsin site visits at the preparatory stage
and/or during actual construction. Monitoring visits by NHE personnel to assess
the good use of the loan are not considered technical assistance; their cost will
be recovered through a nominal fee included in the loan.
Monitoring of scheme: Every three months NHE will evaluate the
progress of implementation and introduce adjustments in procedures,
marketing strategy or any other aspect that might require them. It will be
necessary to adjust NHE's computer programmesin order to deal with this kind
of loan and facilitate monitoring and evaluation of progress.
Procedures:A loan will usually involve the following steps:
1. After learning about the scheme, households come to NHE to get
more information. A one page guideline with details on requirements
and conditions should be handed over.
The household applies for a building material loan at NH's Katutura
Office, giving details of needs, works envisaged and cost estimates;
NHE staff assesses the household income and current financial
obligations to estimate if the household can afford the amount
requested; if required, cross-checks the information with applicants
employer or throughfield visits by CDCs;
NHE staff discuss the kind of loan security best adjusted to the
particular client, and prepares the required paperwork.
lf the household can afford the amount it requires and provide
acceptable guaranty, all forms are completed and the application
submitted to the head of Katutura's Financial branch, wnom shall be
entitled to approveit:
If the applicant cannot afford the amount he is asking for, a two-
steps loan will be proposed; after repayment of 75% of thefirst part,
a second loan to complete the amount may be granted;
After a loan is approved, a check for amount will be issued. The
client will may choose to organize himself the purchase of building
materials or request NHE to do so for a small fee.
NHEstaff will monitor the actual execution of works on site;
The first installment must be repaid on the month following the
approval and disbursementof the loan.
Activities required for implementation:
Decision approving new concept
Establish operating procedures, design and print forms
Adjust computer program to deal with system
select and train personnelfor implementation
Marketing campaign. Initial phase addressed only at known NHE
clients with good repayment record
Approval of loans
Monitoring use of funds, repayments
After 3 months, evaluate progress and adjust proceduresif required
Extend to other type of beneficiaries, marketing campaign, adjust
collateral options to deal with unknownclients.
E. SECONDLINE OF ACTION: PILOT SCHEME ADDRESSED TO
CLIENTS IN UPGRADING AREA
Justification: A secondary loan for a starter solution with 15 years
repayment term is being offered to householdsliving in a temporary shack on a
plot purchased from NHE under the Oshatotwa Programme. Although this
option is financially more interesting than a BML, a numberof families earning
their income in the informal sector would have difficulties to justify it up to the
required NHE standard. NHE's programmes have been usually geared to
households with formal jobs, and the criteria and procedures in use are
designed to deal with these situations. Limited experience exist in handling
families whose income derives from the informal sector and cannot formally
justify family income or provide the kind of collateral usually required by NHE
for granting loans. Some families have also expressed to the CDCs their
preference for smaller, shorter term loans as they feel they would give them
more control over the process. To respond to this need, a small amount (N$
50.000) of the total funds in the budget will be assigned to the implementation
of a pilot scheme addressed to very low income households in the upgrading
area.
At the outset, this experience appears to involve a higherrisk than a
normal NHEcredit; one important objective will be to ascertain in the practice
the real risk incurred. If arrears can be kept at similar levels as in other NHE
projects, the scheme could be considered successful and further extended.
Close monitoring of the evolution of the experience, particularly with regard to
loan repaymentwill permit an early detection of deviations. If after nine months
of extending credits arrears are higher than 40%, the experience should be
discontinued. From an institutional point of view the experience will permit to
design and field test innovative approaches to deal with informal sector
households, with the aim of better equip NHE to handle the increasing numbers
of this kind of urbanclients.
Operation: The scheme will be basically operated by Oshatotwa Team
personnel from the site office; loans will be approved by NHE's Katutura
Financial Branch manager upon recommendation from Oshatotwa Programme
coordinator. This type of clients will require a much bigger input of social and
technical assistance from NHE;for the pilot stage while procedures are being
established and tested it is proposed that this assistance be subsidized by the
Oshatotwa Programme.At a later stage, once the actual cost of administration
and assistance is determined, this concept might be revised and the wayof
financing required subsidies be established.
Loans: Improvement loans between N$ 200 and N$ 1500 will be made
available, generally in cash, to be reimbursed in 3 to 36 equal monthly
installments, giving the client the option of choosing the repayment period
according to his needs and affordability. Clients will be informed that loans are
granted exclusively for house improvements, any unauthorized use will result in
the loan being canceled and the outstanding balance to be reimbursed upon
request by NHE.In principle, no labor should be paid out of these loans, and
the economic advantages of self-help construction will be explained and
stressed as the appropriate instrument for house improvement. A simple table
will be prepared spelling loan details, like the one proposed below showing
9|12;18|24|36
24 18 13 10 7
48 36 25 20 14
71 54 38 30 21
95 72 50 40 28
119 90 63 50 35
179 136 94 74 53
Collateral: A good assessmentof the client's credit-worthiness must be
at the basis of approval of credits. A solid loan repayment record on the
purchase of the plot, socio-economic evaluation by CDCs of family
circumstances,verification of sources and amount of informal income through
visits would all be taken into consideration while assessing the convenience of
granting a loan. Group loans, third party guarantees, and a personal
knowledge of each client should permit to keep the recovery up to standard.
The purchase of second hand construction materials should be permitted in
principle, however, they cannot be considered as security.
Marketing: This concept will be heavily mingled with that of social
assistance, with the purpose not only of helping improve housing conditions but
also helping the households to improve their relations to society and their skills
to managetheir affairs in an urban environment. Oshatotwa field personnelwill
be in charge of informing potential candidates about the scheme and of
providing assistance through the whole process.
Technical assistance: Most of the potential clients are currently living
in temporary shacks; the range of possible improvements is very large andit is
difficult for them to establish priorities among competing needs. Assistance
from the SCAswill be required in determining and organizing stages of house
developmentandfor the self-help construction.
Procedures:A \\oan will usually involve the following steps:
1. The CDCs contact selected households and explain the scheme;
SCAs discuss with interested households possible affordable
improvements; households apply for a building material loan at the
site office.
2. CDCs assess household income and its sources, cross-checking
the information throughvisits to business site and family dwelling.
3. CDCs discuss with client the kind of loan security best adjusted to
his/her possibilities, and prepare the required documents.
4. If the household can afford the amount it requires and provide
acceptable guaranty, CDCs will submit the application to the
Programme's Coordinator, whom will recommend (or not) approval
to the head of Katutura's Financial branch.
5. After a loan is approved, a check for amount will be issued. The
client will purchase the required materials or, optionally, he may
request NHE to organize the provision of building materials directly
from a supplier:
6. CDCs and SCAs will monitor and assist in the actual execution of
works onsite;
/. The first installment must be repaid on the month following the
approval and disbursement of the loan.
Activities required for implementation:
Decision approving new concept
Establish operating procedures, design and print forms
Adjust computer program to deal with system
Train personnel for implementation
Approval of loans
Monitoring use of funds, repayments
Weekly evaluation of progress and adjust proceduresif required
After 6 months of operation, general evaluation and decision on
convenience of extending the scheme to moreclients.
JACrispo040394
OSHATOTWA PROGRAMME- PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 5/b
DRAFT PROPOSAL
OPERATING PROCEDURES FOR BUILDING MATERIAL LOAN COMPONENT
(3)
(4)
(5)
BUILDING MATERIAL LOANS
ACTION : A ADMINISTRATIVE PROCEDURE
(1) Application
1.1 Complete application and prepare for
approval
1.2 Check application and submit to Manager:
Finance Branch for approval
1.3 Approve/Reject Application
(2) Payment
2.1 Submit loan approval form to Finance
Systems Department for issue of cheque
2.2 Issue cheque and arrange for client to
receive
2.3 Client to sign for receipt of cheque
2.4 Cheque to be issued to building material
supplier
Computerization of Loan
3.1
3.2
Prepare personal details immediately when
client applies for loan
Upon approval of the application
3.2.1 Issue account number
3.2.2 Open Account
Loan
3.2.3 Enter Start Repayment Date
Documentation
4.1
4.5
4.6
Safe
Prepare loan file andclient card
Check documentation
After approval Notify client to sign
documents and handover client card
Submit to Manager for signature of agreement
Post copy of agreement to client
Transfer completed file to safe custody
Custody
Register file as received on computer
Place in safe custody
R
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Person Responsible
Majiedt
(FB)
Thomasse
(FB)
de Klerk
(FB)
Thomasse
(FB)
Wicomb
(FS)
Wicomb
(FS)
Heyman
(FS)
Majiedt
Majiedt
Wilson
Muukua
Majiedt
Thomasse
Majiedt
Majiedt
Majiedt
de Waal
de Waal
B.
(1)
(2)
Cc.
(1)
[>
(2)
TECHNICAL INSPECTION
ExistingNHE clients
1.1 Inspect work completed/in progress as it
fits in with visits to other sites
Submit inspection report to Manager: Finance
Branch
Check work done versus purpose applied for
and report deviations
Follow-up on deviations and report if
corrected/or action required
Other Clients
2.1
2.2
2.3
Send copy of apporval of loan to the Oshatotwa
Project Co-ordinator
SCA's to inspect work completed on a regular
basis
Report work completed to Finance Branch Manager
PURCHASE OF BUILDING MATERIALS
1.1
1.3
Discuss system of purchase with Building
Suppliers in order to negotiate a discount
for all clients with - BML Account Card (white)
Draw up procedures to ensure payments directly
to suppliers
Allow for purchase of second hand materials
PAYMENT METHOD
Stoporders
1.1 When client applies all effort should be made
Cash
to ensure that payment takes place by stoporder
2.1 Adjust cashier system to allow for cash pay-
ments on BML.
Valuator
(FB)
Valuator
(FB)
Supervisor:
Loans
T Thomasse
Supervisor:
Loans
T Thomasse
Loan Clerk
R Majiedt
SCA's
Project
Co-ordinator
(W Schulte)
W Schulte
L Fick
Fin. Branch
staff
L Fick
(2)
(4)
(5)
(6)
(7)
(8)
Personal Details
1.1 Surname
1.2 First Names
1.3 Address
1.4 Telephone Number
Loan Details
Loan Amount
Interest Rate
Repayment Period
Monthly RepaymentNM
M
P
P
O
h
w
N
h
F
Interest Calculation Lon
3.1 Daily outstanding balance
3.2 Capital Redemption
Arrears
4.1 Arrears = Theoretical Balance - Loan Balance
T 27 LB - Credit
TMH << LB - Arrears
Transactions
5.1 Journals debit x credit
5.2 Cheques as Loan Paid Out
5.3 Receipts as Payment
Letter to new borrower - stating (1) and (2)
Monthly Reports on
7.1 No. Receipts vs No. of Payments due
7.2 Amount Paid vs Amount Payable
7.3 Distribution of Arrears O -1 month
1,1 - 2 months
2,1 - 3 months
3+ months
Security Provided
8.1 Policy No. @®eeee?eeec_e?e#2F @¢¬¢e¢s860 0 @
8.2 Surrender Value NDS. .c ccc cece cece eee
8.3 Property Erf NO. .wiveccccccsees Township eae
8.4 Security Value available NBS... ccc ec cee wee
(J PAYMENT TO CLIENT/SUPPLIER
(1) 1.1 The maximum loan amount is N$5 000,00
1.2 If the client requires more than N$2 000,00 the payment will be
split in two payments
1.3 Payments directly to the client can only be done on submission
of invoices and receipts that the materials has already been
purchased and paid for
| DISBURSEMENT
(1) Payment Performance
Payment performance will be monitored by Collections and a computer.
monthly report will include
1.1 Months in arrears
1.2 % payment performance (a) On Value ae, _ _
(b) On Number of Receipts
1.3 Total Arrears
1.4 Distribution of Arrears in Months
MARKETING
(1) Oshatotwa Project
1.1 The CDC's and SCA's to select 10 (ten) participants who are
willing to participate
1.2 No further loans will be granted until the evaluation of these
participants had been completed six months after the start of
the project |
1.3 Success will be indicated by
1.3.1 The amounts borrowed were spent on improving housing -
90%
1.3.2 Repayments on average net more than 1 month in arrears
(2) ExistingNHE Clients
2.1 O Loans will be granted to existing NHE clients
2.2 he clients will be selected on the following basis
.2.1 Payment up to date
2.2 Houseowner for at least one year
.2.3 Have not made use of NHE's existing upgrading loan
facilities
2.3 Success will be indicated after six months by
2.3.1 Amounts borrowed spent on house improvements - 95%
2.3.2 Repayments on average not more than % month in arrears
3
T
2
2
2
De
6.
7.
8.
9.1
9.2
9.3
9.4
9.5
10.
11.
APPLICATION FORM
BUILDING MATERIALS LOAN
Surname:
First Names:
Identity Number:
Address:
Tel No.: ( )
Employer:
Address:
Tel No.: ( )
Monthly Salary: NS
Allowances: N$
Spouses Income: N$
Other: NS
Total N$
Credit References:
10.1
Tel. Account No.
10.2
Tel. Account No.
Security Available:
11.1 Fixed Property: Erf No:
Township:
Account No:
11.2 Insurance Policies
(a) Policy Number
Insurer:
Institution:
Monthly Instalment: N$
Arrears:
N$Monthly Instalment:
Age of Policy
le.
13.
14,
11.3
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
(b) Policy Number:
Insurer:
Total Income
14.1
14.2
14.3
14.4
Monthly Instalment: N$
Age of Policy:
(c) Policy Number:
Insurer:
Monthly Instalment: N$
Age of Policy:
Other Security
(a) Name:
Address:
Tel No.:
(b) Name:
Address:
Tel No.:
Monthly Expenditure
House Repayment: N$
Groceries: NS
Insurance: NS
Municipal Accounts: NS
N$
N$
NS
N$ NS
Total Expenditure N$
NS(
(Surplus) /Shortfall N$
Loan Amount Applied For N$
Description of Use:
Item to be constructed:
Material Costs NS
NS
N$
N$14.5
Total Cost NS
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
APPROVAL OF ADDITIONAL LOAN
Amount Approved: NS
Repayment: NS
Repayment Period:
Recommended by:
Affordability:
Total Income: NS
Less: Existing Expenditure: NS
Surplus Available: NS
Usage:
Value of Security offered: NS
Date:
Approved by:
Date:
Disbursements
Issue cheques to:
(a)
(b)
(c)
Name:
Amount: N$
Name:
Amount: N$
Name:
Amount: N$
Notification of Loan Approved
* Copy of Approval Form to Project Co-ordinator
LOAN AGREEMENT
| Revenue |
|__ Stamp __|
ENTERED INTO BY AND BETWEEN
the NATIONAL: HOUSING ENTERPRISE
of P O Box 20192
WINDHOEK
Tel. 061-37224
herein represented by ........ cece cece es cc cece ees cee cos in his Capacity as
arrcece cco ce oe vee ceeee GUly authorized thereto
(hereinafter referred to as NHE)
AND
Identity Number: ......... rrr cee e cece eene
Of P O BOX .cccccevcvccccceves Residential Address: .....c.ccccvccccoes
Tel. eoeoeee#e#eeeee® e @e¢@ e e e e e e©6.3ch6©.!t #eeee#eees#°® e@h6°e e e@6°}¢ e e@®eee¢@ ee 86
(hereinafter referred to as the BORROWER)
WHEREAS it is agreed to
(1) LOAN AMOUNT
The loan amount shall be ND ecccccvccccccccccee
*eeoeooeoeeeee?#e%eee#eeee?e¬#sese¢ ee eeoeoeoeees2e8ee2e8e0?8@8e8e@6hmh)trmhUchHmhUCcMHhC(«whHChUh7}H SH Hh OHhUCOhUO ccc cece cece ccc cece ccc ccee)
(2) INTEREST RATE
The interest rate shall be ......% (.ececees seeeeesese percent) and can
be changed with one months written notice to the-Borrower. This rate
shall be linked to the maximum lending rate of NHE for housing loans.
(3) REPAYMENT PERIOD
The repayment period shall be ......... (.eeeeee ee
commencing on eeoese<ees34essnxees8teeeee7#t @#@ @ @ 8 @ 19...
(4) MONTHLY INSTALMENT
(S) PAYMENT METHOD
Payment shall be the place through a salary deduction hereby
authorised by the Borrower.
(8)
(9)
(10)
NOTWITHSTANDING delivery, ownership in the goods shall not pass to
the Borrower unless and until the purchase price shall have been paid
in full. The risk in the goods shall pass to the Borrower upon
delivery.
(a) The Borrower shall
(i) Keep the goods in good repair and upon demand allow the
NHE, its agents and/or servants to inspect them.
(ii) Keep the goods free of lien and hypothec, and shall nor
sell or alienate it.
(iii) Insure and keep the goods insured against loss or damage by
accident, theft or fire and against third party claims and
produce proof thereof and cede the Policy/Policies to the
NHE when required. Insure with a Company which may be
nominated from time to time by the NHE-at the NHE's sole
discretion.
(iv) Not use the goods or permit them to be used for hire or any
purpose other than that for which they wereconstructed, ©
licensed or insured, nor do any act which may invalidate
any insurance in respect thereof.
(v) Pay interest on arrear instalments reckoned from the due
date thereof at a rate not exceeding the Interest Rate
stated in Clause e.
(vi) Pay on demand all collection commission and tracing fees
and all legal expenses, including attorney and client
costs, whether or not legal proceedings have _been
instituted, incurred by the NHE either during the currency
of this agreement or after termination thereof.
(b) A breach by the Borrower of any one or other or more of the
afore-mentioned obligations shall be deemed to be a material
breach of this agreement entitling the NHE to the remedies set
out in Clause 7 hereof.
(c) Should the Borrower fail to keep the goods in what the NHE
considers to be good repair and/or insured and/or licensed
and/or free of lien or hypothec, then, without prejudice to its
rights in terms of Clause 11 hereof, the NHE shall have the
right in its own name and/or in the name of the Borrower to do
all such acts and pay all such amounts as it may deem fit to
repair and/or insure and/or to free them of lien or hypothec,
and the Borrower shall where necessary for these purposes
deliver the goods to the NHE and on demand pay to the NHE any
amount/s paid by the NHE.
No relaxation or indulgence by the NHE shall constitute a waiver of
any of its rights or a novation of this agreement. No agreement
purporting to vary this agreement shall be valid unless in writing
and signed by the NHE and the Borrower.
The NHE may appropriate any money received from the Borrower either
to any liability under this agreement or to any other liability owing
by the Borrower to the NHE at the time of such payment.
Should the value of the goods at any time have to be ascertained the
Borrower hereby authorises the NHE on its own behalf and on behalf of
(11)
(12)
(13)
the Borrower to nominate any Sworn Appraiser it may deem fit for such
purpose and the Borrower agrees to accept the value determined by
such Appraiser.
If the Borrower (a) fails to pay any instalment of the purchase price
on due date; or (b) fails to pay any other sum payable under this
Agreement on due date; or (c) commits any other breach of this
Agreement; or (da) assigns or attempts to assign his estate; or (e)
compromises or attempts to compromise with his creditors; or (f)
commits any act of insolvency; or (g) is sequestrated or surrenders
or applies to surrender his estate; or (h) being a company, commits
any act that could result in a winding up of the Company for
inability to pay its debts, or is or applies to be wound up or placed
under judicial management; or (i) allows any judgement against him to
remain unsatisfied for seven days; or (j) does or allows to be done
any act or thing which may prejudice: the rights~of the NHE to the
goods or under this agreement; or (k) dies; or (1) ceases to be in
the employment of the NHE for any reason whatsoever; then in any of
these instances, the NHE without prejudice to any other right or
claim, including a claim to damages which it may have against the
Borrower, shall have the right to recover payment forthwith of the
full unpaid balance of all sums payable under this agreement, or,
alternatively, forthwith to terminate this agreement; and upon such
termination the Seller, without prejudice to any other right or
Claim, including a claim to damages which it may have against the
Borrower, shall have the right to (i) recover possession of the
goods, the costs and expenses of such recovery to be paid by the
Borrower; and/or (ii) retain as forfeited all instalments paid under
this agreement; and/or (iii) retain as forfeited all other sums paid
under this agreement; and/or (iv) retain as forfeited any goods which
formed the deposit or part of the deposit under this agreement;
and/or (v) recover all instalments in arrear; and/or (vi) recover all
other amounts of money in arrear; and/or (vii) repossess the goods
and on such repossession to obtain a sworn appraisement of the goods
and thereafter to apply the amount of the sworn valuation, after
deduction of all reasonable expenses and other reasonable expenditure
incurred in relation to the goods, howsoever arising, in reduction of
the Borrower's obligation to the NHE under the agreement, the
Borrower remaining liable for any balance remaining owing and being
entitled to any surplus.
In terms of Section 21 of Act 75 of 1980, the parties consent that
any Magistrate's Court having territorial jurisdiction over them
within the Republic of Namibia shall have jurisdiction in respect of
all proceedings under this agreement although the subject matter or
cause of action would otherwise be beyond such Court's jurisdiction;
and in all cases where the Magistrate's Court having territorial
jurisdiction in respect of any such proceedings is situate within
Namibia, the parties consent to the jurisdiction of such Court on
terms of Section 42 of Proclamation 31 of 1935. The NHE may, at its
option, institute any such proceedings in the Supreme Court.
The NHE shall have the right to cede or transfer its rights under
this agreement and its ownership in the goods, and the word 'NHE'
wherever it appears in this agreement shall be deemed to include any
cessionary of the NHE. The Borrower agrees, upon such cession or
transfer, to hold the goods on the basis that the ownership therein
has passed to. the cessionary or transferee.
(14) The Borrower chooses domicilium citandi et executandi at his address
given in the agreement and any notice required shall be deemed
sufficiently given if addressed to him as such address.
(15) SECURITY
The security provided by the borrower to NHE shall be the cession of
all rights on;
1.1 Policy Number: Cece mre ese ceseseesevens
1.2 Issued by: cece cere ce censcece ccee
Guarantee: cece e rece c cere erg sence
1.4 Issued by: cee c cere reece sere sscns
Erf Number: com cece nrc cece cee e acces ver tte
Value: recece ee eene
Outstanding Balance: ND eve csesccccscccecs eee
The borrower agrees thereto that the NHE shall be entitled to cash in
the security after giving the borrower 30 days written notice; and
redeem the outstanding amount if the borrower does not comply to the
repayments required in this agreement.
Thus done and signed at ....eeeeee cece rene seeeee ON THIS .....000.
day of eeoeoeeoe0eesose#ee0808?8?64¢8 88 @© @ @ @ 19...
WITNESSES
1. eseeeevrneoeseereee#2n5nfe*ee?#e?rt#eeee#eteee#eoeees ee Coo eer eee e sees reese eenecee
BORROWER
Oe eeoeeoeeeeeeeeeseeeeeee ee e808 OUOHUCOlUMlCUO
Thus done and Signed at eoeoeooeeseeteeoeeeenrtenreeeenewerwewel.e on this @#eeoe#seee#eeeteeeese@*
day of @eeesvesee@enreeoeee#eeeetee ee @ 19...
WITNESSES
1. ooooeoeoeoerowrwrrerewererrererr rr ernere eeoeeeoe@e#eoeues#ee7e#e#ee#eeeeesve##ee@¢% 8 @ @
NHE
Oe *eeoeeseestvkeee*e#see05oeeseoe#5ee#ese?#eeeks#e88e 8 @ @
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Facsimile Cover Sheet
To: Louis Fick
Company: National Housing Enterprise
Phone:
Fax: 0026461222301
From: Panchi Crispo
Company: SUM Consult
Phone: (5982) 780180
Fax: (5982) 773061
Date: March 29, 1994
Pages including this 2
cover page:
Comments:
DearLuis:
sorry for the delay in commenting your proposal for the BML; | was very busy
the first week at home. Generally | find it very good and | expect it will serve our
purpose; my comments regard the following details.
CLIENTS: As discussed, we will start only with existing NHE clients and some
households in the Upgrading areas. | supposethat in E (2) you refer to these as
potential otherclients". After evaluation we might extend the program to a
different kind of people.
MARKETING:| like your cautious approach. However, | would suggest that
instead of limiting the number of potential clients, we limit the moneyat risk. For
instance, for the Upgrading areas we assign a total of N$ 50.000; if some clients
request less than the maximum N$ 5.000 we may grant additional loans above
the envisaged 10. The same for NHEclients, lets assign N$ 250.000. Your
indicators of success seem OK,although | believe that 100% of the loan should
be spent in house improvements.
The simple tables | suggested indicating loan amounts and (rounded)
repaymentsfor different loan periods could be a simple and useful marketing
tool. They need to be checked.
LOAN DISBURSEMENT:If our evaluation of the client is properly done,| still
think that we could trust him. He should have the possibility of receiving cash
and purchasedirectly his own building materials. Your clauses A 2.4 and E 1.3
seem to contradict (or complicate) this possibility. Perhaps a percentage of the
loan could be issued in cash upon requestfrom the client if he indicates that he
can get a better deal than what NHEoffers.
Bigger loans (more than N$ 2.000)will be disbursed in two stages. The technical
inspections envisaged in B should play a role in this procedure. The inspector
must checkthat the first disbursement is properly used and recommend (or not)
the second disbursement according of work progressonsite.
CONTRACT:| wonderif it cannot be simplified. | understand NHE need to
secure the loan and cover possible problems. Paragraphs 6 to 11 and 13 cover
a lot of details that might not be strictly necessary for these very short term
loans. What we wantbasically is that the borrower a) uses the loan for house
improvements and, b) pays back regularly. If he does not comply, NHE shail be
entitled to immediately claim repayment. | strongly believe that a simpler, two
pages contract establishing the basic obligations of both parties would be a
better marketing tool. It would certainly go in the direction of adjusting NHEs
proceduresto better deal with very low-income people. See if there is something
you can do onthat issue.
| am now preparing the draft of the 4th Quarterly Report for KfW; please let me
know of any recent development that we want to include (specially with regard to
the LGF), and ask Wilfried and Andrew Walton about that. Best regards to you
and everybody at NHE
Panchi
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 6/a
TRAINING TRIP TO BOTSWANA
OHSATOTWA HOUSING PROGRAMME
BOTSWANASTUDY TRIP
TaskGroupsand Assignments
The study trip group divided its work amongthree task groups of three members each. Each
task group is cross-sectoral in composition, and multi-sectoral in assignments. It is felt that
these divisions will promote the communications within the task groups, and will also require
communications across the task group lines within the team.
Task Group # 1 is composed of Aune Tjirare, Bryon Graig and Wilfried Schulte. Their
areas of assignmentinclude:
- Community leadership;
- Exaggerated or false expectations;
- Loans: kinds available, terms, who provides them; repayment performance, and
repayment enhancement;
- How are development costs recovered;
- How is "field budgeting of quantities" done;
- Building Materials Loans (including collateral).
Task Group # 2 is composed of Attie Swartz, Diane Bester and Sophie Shaningwa. Their
areas of assignmentinclude:
- Resettlement issues;
- Governmentrelations;
- Exaggerated or false hopes;
- Eviction process;
- Construction (contracted builders and self-help ): loan procedures, and supervision;
- Household income and affordability determination;
- PHSL.
Task Group # 3 is composed of Andrew Walton, Petronella Taaru and Willamenia van Wyk.
Their areas of assignment include:
- Squatter issues;
- Exaggerated or false expectations;
- Communal facilities and services;
- Role of community developmentandself-help construction personnel];
- Certificate of Rights (and alternatives to outright deeds ofsale).
These areas of assignmentare for reporting purposes. Issues and questions may beinitiated
and followed-up by any memberof the full team, and useful findings should be passed to the
responsible task group for synthesis into their report.
The eventual reports are to be in issue and findings summary format, clearing stating findings
and suggesting applications to the OHP. Details should be added in annexes, including the
task groups expositions on the issues, and documents provided by the host agencies.
BOTSWANASTUDY TRIP
CHRONOLOGICAL REPORT
Sunday, February 27, 1994:
Departure from Windhoek and arrival in Gaborone moreor less on schedule.
At 18:00 held a Team Meeting. Added several topics to list of focus issues for the trip.
Decided on three task groups of inter-sectoral composition, with cross sectoral assignments.
Monday, February 28, 1994:
Avis delivered mini-bus about 08:15.
Botswana Christian Council switched site meetingtill afternoon. City Clerk graciously agreed
to have headquarters review meeting that morning (and site visit Tuesday morning).
09:40. Municipal Principal Housing Officer (Mrs. Constance Mmtali) hosted meeting (City
Clerk stopped by for about 10 minutes). Also attended by two Technical Assistants and the
Administrative Officer. Very useful insights, will show up in each Task Group's reports.
Meeting over at 12:30.
14:30. Went to BCC self-help project office in Old Naledi. Met with Miriam Kobo,Social
Worker and project coordinator. This project supports SHHA participants too poor to meet
standard SHHA income/affordability requirements. Again, a variety of useful insights that
will show up in the Task Groups' reports. Meeting (and walk through project area) completed
at 16:40.
Drove through Old Naledi, with Ms. Kobo, observing growth, cleanliness, community centre,
regular (private mini-bus) public transportation system,etc.
18:00. Team review meeting. Issues for exposition were the specifics that team members
learned (and their implications for the Oshatotwa team). Tuesday's schedule was previewed.
Tuesday, March 1, 1994:
07:30. Went to City offices, collected documents from Mrs. Mmtali, including a full copy
of the SHHA Operational Manual. Mrs. Mmtali and staff accompanied us to the Old Naledi
SHHA office, where we talked with the social, finance and technical staff. Followed with
tour through Old Naledi, including areas where squatters refused to conform to resettlement
schemes andstill live in densely packed groups; the communal water taps; block making on
site; disintegrating buildings made of blocks using coal cinders instead of sand; and the
resettlement area at the south of Old Naledi.
Wethen visited the SHHA office in Gaborone West.
Back to the City Offices at noon.
At 14:00, went to the Botswana Technology Centre (BTC), for the meeting with the Low-
Income Housing Committee. Participants included representatives from the Lobaise Town
Council, Habitat for Humanity, the Ministry of Commerce and Industry, the Rural Industries
Innovation Centre, Danbo Consult, Matheo (Pty) Ltd., and BTC. Exchange was free and
lively. Meeting closed at 4:30.
Following the meeting, Graham Hunt gave the Oshatotwa Team a tour of the BTC's housing
enterprises.
18:00. Daily review meeting. Topics of exposition were issues raised in Tuesday's sessions
that changed team members' perceptions of what they had learned Monday. Wednesday's
schedule was previewed.
Wednesda Cc 994:
Left for Kanye at 08:00. Met the Habitat for Humanity team at 09:00 at their site office on
the grounds of the Catholic Church. Visited the traditional village chief official courtyard,
then some Habitat project sites. Returned to site office for demonstrations in Cinva Ram
Block machine block making, and cementroofing tile making, and for discussions.
At 12:00 went to the RUC (Rural Industries Innovation Centre) site, where staff discussed
their housing programs, and show us someof their demonstration and testing work.
Lunch at 13:00 at a local restaurant (delicious food, terrific site, memorable ambience).
Stopped at Gabone on the way backto visit village industries site, and to buy somecrafts.
Met with Matheo (Pty) Ltd personnel at 18:00, to share prospectives on low-income housing
innovations and directions. Meeting lasted till about 19:30, with a shifting group of
participants from the team (SS, WS & AW were the "core" Oshatotwa participants, with
others coming and going).
Review meeting postponed till Johannesburg, Thursday morning.
Thursday, March 3, 1994:
Flights almost on schedule (almost an hour's delay in Johannesburg).
Held review meeting, discussed task groups preparation of their reports. The discussion topic
of the session was "Whatone thing did you learn on this trip?" (most of the answers related
to the need and waysof getting more community involvement in the Oshatotwa programme).
Arrived Windhoekairport, and dispersed.
BOTSWANASTUDY TRIP
PUBLICATIONS COLLECTED
Administrative and Operational Procedures for Self Help Housing Agencies, Ministry of Local
Government and Lands, Botswana. December 1982.
Botswana Technology Centre Experimental Staff Housing Project, Gaborone, Botswana.
Building Research Project:_ Experimentation and Testing of Low Cost Lime-Oxide Paints, by
Greggar Petersen, Rural Industries Innovations Centre, Kanye, Botswana. March
1992.
Building Research Project: Experiments with Sample Testing Procedures for Stabilised Soil
Blocks, by Joan Petersen, Rural Industries Innovations Centre, Kanye, Botswana.
October 1991.
Building Research Project: Fibre Cement Roofing Tiles, by Greggar Petersen, Rural
Industries Innovations Centre, Kanye, Botswana. March 1992.
Building Research Project: Low Cost Housing Designs for "Habitat for Humanity/Botswana,
by Joan Petersen, Rural Industries Innovations Centre, Kanye, Botswana. February
1992.
Building Research Project: Material Options & Cost Computations for Building Elements in
Botswana, by Joan Petersen, Rural Industries Innovations Centre, Kanye, Botswana.
February 1992.
Building Research Project: Proposed Modifications to the Standard Botswana Chnistian
Council House Plan, by Joan Petersen, Rural Industries Innovations Centre, Kanye,
Botswana. January 1992.
Building Research Project: Report on The Use of Quarry Crusher Dust for Brick and Block
Production at the Kang Brigades. Rural Industries Innovations Centre, Kanye,
Botswana. November 1991.
Building Research Project: Survey of Current Concrete Brick & Block Sizes Produced in
Eastern Botswana, by Joan Petersen, Rural Industries Innovations Centre, Kanye,
Botswana. August 1990.
Building Research Project: The Masonite Hardboard Dry-Fill Building System, by Greggar
Petersen, Rural Industries Innovations Centre, Kanye, Botswana. March 1992.
Building Research Project: The Relationship Between Wallin mponents in Botswana and
Recommendations for Change to a Co-ordinated Walling System, by Joan Petersen,
Rural Industnes Innovations Centre, Kanye, Botswana. December 1991.
Catalogue of Goods and Services 2nd. Edition, Rural Industries Innovations Centre, Rural
Industries Promotions (Botswana), January 30, 1992.
The Cinva Ram Press and Lifter (Rural Industries Innovation Centre), Kanye, Botswana.
Habitat for Humanity - Botswana: Information Brochures.
Information Booklet (Rural Industries Innovation Centre), Kanye, Botswana.
Lime Oxide Paints (Rural Industries Innovations Centre), Kanye, Botswana.
Operator's Manual: Cinva-Ram Block Press, Rural Industries Innovations Centre, Kanye,
| Botswana.
Rural Industries Promotions Company (Botswana) 1992 Annual Report.
SHHA Documents:
Briefing Notes for the Visiting Oshatotwa Housing Team.
Verification of Self-Employment
Verification of Employment
Application for a Self-Help Housing Agency Plot in an Urban Area
Building Permit for Standard SHHA House Plans on Undeveloped SHHA Plot
Site Plans
Application for Plot
Building Permit - SHHA / Gaborone Town Council
Certificate of Rights
House Plans (7)
Building Material Loan Application
SHHA Building Materials Invoice
Transfer of Building Materials Loan Agreement, Etc.
Annuity Tables for Repayment of Building Materials Loan (Pula 100, 200, 300, 400,
500, 600)
Income Ranges for Serviced Plot Allocation
Accelerated Land Servicing Programme
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OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 6/b
BASIC MANAGEMENT TRAINING COURSE
Mr. Jurgen Lehnert
Senior Manager
Technical and Social Services
NHE
March 14, 1994
Dear Mr. Lehnert:
During the evaluation workshop held last month someinternal communication and
managementproblems wereidentified as hampering the work of the Oshatotwa Team. The
possibility of improving the effectiveness of the team through training in management
techniques was then considered.
With assistance from NHE'straining division, a course imparted by the Institute for
Management and Leadership Training was identified as appropriate for the needs. At
NHE's suggestion the IMLT agreed to some programme adjustments to better fit NHE's
requirements. A course outline is attached.
The Basic Management Course would be imparted exclusively to NHE personnel,
and the usual 3 full-day duration would be adjusted in order not to disrupt normal working
duties of the attendants. A tentative schedule for Monday 28 March in the morning, the
afternoons of 29 and 30 of March and afull day on Thursday 31 has been proposed by
IMLT. It is suggested that the following persons be invited to attend the course:
Mr. Wilfried Schulte
Ms. Dianne Bester
Mr. Pietrus Asino
Mr. Ernst Mathias
Mr. Brion Greig
Ms. Petronella Taaru
Ms. Sophy Shaningwa
Ms. Aune Tjirare
Ms. Willemine van Wyk
10. Mr. W. Mawisa
lf more than 6 people attend, a group rate of N$ 250,00 per person will be charged,
the total cost for ten participants will be N$ 2.500,00. | have discussed the issue with the
KfW mission and obtained approval to charge the cost (except GST) to the Programme
budget.
O
N
O
a
A
R
W
N
DS
©
| believe that attending the course could result in an improved performance for the
team and in personal developmentfor the individuals involved. If you share this opinion, you
could recommend to the Management Committee the approval of the idea and make the
necessary arrangements with the training division.
With best regards
Juan Crispo)
CTA
Germany: Nam'hiz,
Dambachtal 9, 65193, Wiesbaden 104 Aehet Mogghe venue POL Bax 4682, Windhoek
Tel 49-611-522225 Fax 59211 Tai 254-67-SS565 Fas $2963
To: WS Jin @
FROM: JACKSON MWALUNDANGE fsAlo Muret é
IMLT |
DATE: 11 March 1994
RE: BASIC MANAGEMENT COURSE FOR NHE
Dates: 28 March morning, 29 & 30 March afternoonsand 31 March
full day.
Course outline: See the attached
Cost: Individual rate - N$300-00 per person
Group rate, 7-10 people - N3250-00 per person.
BASIC MANAGEMENT
Course outline
PLANNING AND ORGANIZING OF WORK
Howto identify and describe objectives
How to select the best methads fa achieve selected objectives
Howtolist all the needed resources
How best to put the resources (manpower, materials and equipment)
into action
COST IMPACTS
What are the cost factors
How to control variable costs
PRODUCTION CONTROL
Where and how best to contro! work activities
When and howto follow-up on results and problems
PROBLEM SOLVING AND DECISION MAKING
How to handle and solve problem situations
How to make sound decisions
How to prevent problem situations
MOTIVATION
What makes people work
How to motivate employees
EFFECTIVE COMMUNICATION
Causesof ineffective communication
How to improve communication
OSHATOTWA PROGRAMME - PROGRESS REPORT N° 4 - OCTOBER 1993/MARCH 1994
ANNEX 6/c
EVALUATION PAPERS PREPAREDBY THE
COMMUNITY DEVELOPMENT COORDINATORS
a) Paper by Sofy Shaningwa
b) Paper by AuneTijirare
c) Paper by Petronella Taaru
OSHATOTWA HOUSING PROGRAMME
Upgrading Project:
Evaluation by Sophy Shaningwa
COMMUNITY DEVELOPMENT
Community Development Coordinators were incorporated into full-time NHE task groupstaff,
carrying out routine tasks of the NHE for this project.
COMMUNITY DEVELOPMENT EXPERIENCE DURING THE SOCIO-ECONOMIC
SURVEY:
Lessons Learnt:
- Project was defined for the urban low-incomepeople. In reality, it was found
that all the participants are not that poor, as many are government and
parastatal employees.
- People's incomes were understated as they had heard about the subsidies.
- Not all the people came to Windhoek for the purpose of becoming urban
residents. They came to earn an incomeand goback after a few years because
they could earn a lot in Windhoek and that was their only aim.
- "Okuungula"- not interested in having a permanent house in urban area, only
to live there several months or a year, so therefore their earnings were not
given accurately.
- Welfare cases - women who also came for the same purpose or followed
temporary boyfriends and husbands, were considered to be heads of household
with no formal incomes. They were given a plot on the basis of head of
household.
- The socio-economic survey revealed that + 26% of households cannot afford
the basic right, which is right to tenure.
- Promises had been made during election campaigns which led to promote a
high degree of dependency on the government and hopes for favours.
COMMUNITY DEVELOPMENT EXPERIENCE DURING THE EARLY
IMPLEMENTATION STAGES REVEALED MORE LESSONS:
Constitutional Rights:
- Everybody has the right to housing, but details were not made clear, thus
illegal squatting has taken place.
- On the other hand, some people have been forced to take tenure while they
have their own ideas and they were not expecting to become urbanresidents.
Relocation was not because of the people's demand, but was imposed on them
through reasons of health hazards, financial exploitation by residents, etc.
Lessons Learnt, Problems Encountered:
- Though people were consulted during the move,still false expectations arose.
- CD Coordinators had time and they received a positive response from
community leaders, who gave full cooperation most of the time. Implementors
thought that the implementation would be done quickly and simply, but due
to the hindrances in the operational system, stagnation was experienced.
- Implementation required administrative mechanisms which were not in place
at the time of resettlement.
- Implementation phase could not get everything into place because even the
implementing agency (NHE) had no project experience of this nature in the
past. (NHE had a programmeof that nature but in a very small scale.)
Reasons for delays:
- The team experimented with information campaign systems, holding mass
meetings in each of the 5 areas.
- The next step in the information campaign was 20-households meetings.
- Next was supposed to be worksheets and contracts for sale of erven and
houses, but NHE systems were not yet in place.
- It came to seem as if all these preparatory steps were designed to keep the
people on hold while NHE gotits systems organized.
- Issuing of loan repayment and deposit cards, and their distribution to each
individual head of household.
- Explanation of the two cards and the consequences if repaymentfailure arose.
Foreign
Leaflet was produced, but video cassette explaining life in the urban areasstill
not available.
Explaining communal managementfacilities like water and sanitation.
Unserviced land prevented people from building.
Inadequate personnel which lead to Community Coordinators working long
hours.
Project Coordinators of the executing agency kept on resigning, whereby their
successors had to always start from scratch and adapt the system.
Lack of cooperation with other community development personnel in other
institutions.
Since NHE is the executing agency, Community Development Activators of
the Ministry of Regional and Local Government and Housingdid notreally see
the need to step in and to campaign for community oriented activities. We
worked in isolation, and competition could be noticed.
Late last year the municipality introduced a community liaison department,
which is not yet well established and not much was done, although two
meetings were held with the Oshatotwa team.
Local Authority election for Regional Council and the Municipality was only
held at the end of 1992. The new representatives are still in their learning
process, but here we had their cooperation.
Community Development Coordinators acted sometimes on behalf of
municipal officials, other NGO representatives and Government promoters in
answering various queries.
Consultants:
They sometimes sounded very optimistic, but that's no fault. The culture of
the Namibian society is completely difference from some other countries, as
a result of its historical background.
They sometimes thought things are easy but the previous bureaucracy in
various institutions has not changed.
Foreign consultants could not sometimes understand why NHE,the executing
agency, is failing to let the ball roll. They failed to understand that NHE's
approach to low-income housing was different than this project's approach.
NHE cannot work according to people's decisions, but want the people to adapt
to NHE's system.
NHEis a Parastatal:
- NHE had no experience in this approach of people deciding for their own
housing options, but vice versa.
The operation system from the day people were resettled until now is not
flexible.
- Government-subsidised clients question has still not been resolved. An
agreement has not been reached how to allocate and howto define low income
for public servants.
- There is a feeling in the NHE that people are irresponsible, however people
will be irresponsible only when they are not recognized and respected. This
attitude in NHE needs to be changed. People should be recognized and
trusted.
- NHE is being advised by consultants on may things, including institutional
strengthening, but action on recommendationsare not forthcomingstill.
NGO'S ARE NOT VERY INTERESTED TO GET INTO THE RESETTLEMENT
PROGRAMME OR TO PROMOTE THEM FULLY BECAUSE OF VARIOUS
REASONS:
- Credit Unions are awaiting for at least establishmentof facilities within the
communities.
- Community savings clubs: there is a lack of confidence on who could Keep the
funds, as resettled people have bad experience in some leaders who sometimes
misused their money which were commonly pooled.
- Welfare organisations, Churches - not fully in business in the area.
THE PROJECT TEAM;
- Developed a culture of sharing, which enabled them to be atthis stage.
- CDC - Have a common understanding of the work, and willingly take
responsibility for the same.
COMMUNITY THOUGHTS BASED ON BY OBSERVATIONS:
- They consider us good talkers, but slow in implementing our practical work.
RECOMMENDATIONS:
- NHE procedures should be made simple and flexible; in other words, we
should not impose decisions made by NHE onthe people, rather adapt NHE
January 1994
procedures to accommodate people's decisions and needs.
People must have more freedom to do things the way they want, for example
they should be given the opportunity to design their own houses and build the
house according to their own capacity.
Recognize that the resettled people are resourceful, that they can do things by
themselves. They should not be considered as helpless urban poor, who have
to be told whatto do all the time.
The approachto the project is too professional, a more simple, people friendly
approachis needed.
Within the frameworkof the project, people should be given more choices; for
example, they should be allowed to find material from whatever source that
they wish, then people will be able to get materials even second hand at much
cheaperprices and also encourage labour from family and friends, and in the
end getting more value for their money.
OSHATOTWA HOUSING PROJECT APPRAISAL
PHASE I
REVIEW MAY 1993 TO JANUARY 1994
COMMUNITY DEVELOPMENT COORDINATOR
AUNE NDEYAPO TJIRARE
WINDHOEK, 16 FEBRUARY 1994
CNDTRODUUCTION
The arrival of independence and the abolition of draconian laws
which used to restrict the movement of nationals from either
visiting or settling in urban centres came not only as a relief
but also as an opportunity for the masses of the people to flock
to places which were considered to offer green pastures. The
Situation was not helped by the arrival of thousands of refugees
from neighbouring states.
The massive numbers overstretched the limited resources at the
disposal of local authorities and also posed a major challenge
to the new political leadership, who had expecced these people
to stay in the rural areas to engage in several self help
projects or extensive plowing to bring about self sufficiency in
food and thereby eliminate hunger and poverty.
Accordingly, the area of housing became a major priority and in
addressing this topical issue, first and foremost, one must have
sufficient land with all the infrastructure. It is in this spirit
that some donor agencies and NGOs came forward to offer
financial, consultancy and technical assistance. A lot has been
done to address the lot of the people, but as our leaders have
Said, the ultimate success in development lies in the
determination of the patient to heal himself or herself.
PROJECT BENEFICIARIES
In accordance with National Housing Policy, beneficiaries
were to be drawn from already displaced communities
especially the single quarter squatters community.
Criteria for housing loan eligibility was to be taken into
consideration, the need and the household income. However,
in practice this criteria was not fully adhered to, such as
in the following areas:-
1.1 Problems arose out of poor selection cf eligible bene-
ficiaries due, for example, to ignorance of policy
guidelines in the selection of target groups.
1.2 Some of the beneficiaries especially those from the
S.Q. are families with established homes in the Nor-
thern region who do not view themselves as permanent
residents in the cities. The move interrupted peoples
businesses.
1.3 Many erven are occupied by extended family members
because of acceptable cultural practises among many
Namibian communities whilst the registered owner lives
elsewhere.
1.4 Prospective owners do not avail themselves for the
processing and registering of erven because of pre-
vailing ignorance regarding home ownership and title
deed registration created by the exclusion from land
and home ownership in the past.
1.5 Lack of awareness on the part of the community in
terms of home ownership accountability and responsi-
bilities, e.g. resettled families furnished names and
particulars but failed to report back for further ne-
gotiations towards completion of the agreement (pen-
ding cases). Home-ownership is not a solution for some
people; a shelter is not the priority but access to
secure land is.
1.6 Unauthorised exchanges in the form of swapping of
erven and transfer of legitimate ownership create
administration backlogs, thus slowing down the
finalisation of agreements. hence this results in
evictions of present clients. The end result is that
this situation causes alienation between clients and
NHE.
1.7 All squatters were resettled, rather than those who
wanted to be permanent residents and had an ability to
pay.
PROJECT PLANNING AND MANAGEMENT
This 1S a critical area in the design and implementation of
any given project. The success of any management lies in
good planning.
Project planning in my view should be proceeded by thorough
Situation analysis which serve as a guideline to all
project team members.
The following constraints are being experienced during the
implementation process.
2.1 Lack of commmitment and conflicting interpretation
among team members towards the defined goals.
The situation on the ground is not being addressed
because team meetings revolve rather around processing
of documentation than looking at the work done in the
field or sharing views on problems encountered.
Liaison among team members iS poor, lacks advance
planning and communication.
Individual responsibilities and roles are underplayed,
resulting in lack of motivation among participants.
Differences in prioritising issues is a major source
of concern when planning - e.g. the priority of buil-
ding houses for potential clients vis a vis eviction
of illegal squatters.
Some team members are out of touch with the grassroots
thus limiting their understanding of the communities
concerned; community development coordinators are ill-
informed about the criteria for judging potential
beneficiaries.
Administative strategies must be updated in order to
provide as much as information as possible in relation
to reliability of clients. This calls for a new
approach (data base).
Community participation in essence is not practised
according to stipulated policy statements, in part
communities are not defined yet.
Room should be left for adaptations to be made in the
planning. "Programmes must be flexible and capable of
adapting to the changing need of Namibias urban poor
in the development priorities of the Government" as
stated in the National Housing Policy goals/".
INTER-SECTORAL COLLABORATION
The aim of establishing contacts and working relationships
and selection of project partners is usually ~_)
3.1 to establish and facilitate communication and
(a) to learn from ones anothers experiences,
successes and challenges in the areas of mutual
interest e.g. land policy reform and legal
services.
(b) to promote effective ways of discussing relevant
agendas related to the housing problems by
establishing, organising forums where housing
issues could be discussed in groups, through
seminars, workshops and brainstorming sessions.
To identify areas of assistance and training needs for
communities in the aforementioned areas;
To coordinate the compilation and exchange of
information on socio-economic issues, and
To establish and maintain a regional network for
housing institutions.
A community development approach in Namibia is still
at its infancy hence calls for regular interaction
amongst various interested parties in order to make it
a success.
It is observed that there is lack of collaboration
amongst major players namely, Ministry of Regional and
Local Government and Housing, Local Authorities
(municipalities), non governmental organisations and
regional councils, for example, project financing
criteria are very different between NHE and Build
Together Programme.
Although an effort was made in 1993 when the
aforementioned organisations7~ met, no follow-up
meetings took place.
It came to light that the community development
coordinators (CDCs) whose role is to liaise between
the community and the various institutions were most
unfortunately left out.
m
w
? Dy~~.
FOREIGN CONSULTANCY
4.1 Whilst the role of foreign consultants is appreciated,
not all consultants necessarily serve the purpose of
the project at hand in terms of imported expertise.
Therefore the knowledge brought with,is not always
compatible with local trends.
4.2 Socio-economic and cultural background of target
communities must be taken into account at the planning
stage in order to eliminate stumbling blocks during
the implementation phase.
4.3 It is my considered opinion that foreign experts of
whatever background should adapt a patient/doctor
approach. Consultants to NHE are not running the
Oshatotwa Programme and that is, in my view, a
positive approach.
- They are providing their expertise to address the
Situation which is new to the country.
- They contribute methodological support
particularly in terms of participatory planning
and evaluation.
- They assist in streamline procedures that have
been developed over the years and which may not
suit the new order.
CIVIL LAWS INCOMPATABILITY WITH HOUSING POLICIES
5.1 Women married in community of property forfeit their
right to housing ownership - as the erven / house
cannot be registered in her name.
5.2 To qualify for a loan husband has to give consent and
co-Sign all documents.
5.3 Housing policies need to remain consistent and to
serve aS a guideline to planning and implementation.
5.4 Common law marriages have to be included when
considering ownership.
»
\\
COMMUNITY PARTICIPATION AND COMMUNITY CENTRES
6.1 Despite the day to day bottle-necks experienced in the
communities e.g. lack of repayment of water and erven
(amenities), different interest groups in communities
are well organised.
6.2 Election of community leaders is done with full
participation by the communities themselves, but
leaders are not always faithful.
6.3 Literacy programmes are well organised and attended.
6.4 Church services are held regularly.
6.5 Crime combating discussions are held at the community
centre and meetings on the housing programme.
6.6 The community centre serves as a meeting point for
discussions with various people and institutions or
organisations.
OWN EVALUATION / RECOMMENDATIONS
- It would be my opinion that the Oshatotwa housing
projects first phase implementation is behind
schedule as a result of all the points highlighted in
this report. However, acceleration of the project can
be achieved through improvement made on all the
discussed points in this report.
as It is significant for all players including donor
agents to take into account the points highlighted in
order to put the process back on track, thus paving
way for the implementation of the second phase.
-~ Renewed commitment on the part of all participants in
this project and seeking to motivate beneficiaries
will determine the success of this project.
The definition of a community as such amongst many
Namibians is not in line with recognised definitions
in other societies due to the strong colonial tribal
divisions created by apartheid.
In my opinion, it is going to be a slow process of
changewhich, however, is achievable with a concerted -
effort by all players involved.
- Consultation with other agencies and team members is
crucial for the project to flourish through
brainstorming sessions and workshops.
With respect to the housing development situation in
Namibia there is a need to further the development of
skills as below.
(a) Conceptual skills
- exposure to information on housing
matters/issues.
- better understanding of socio-economic
concepts.
- exposure to methods of data collection and
analysis and project planning and
evaluation.
(b) CommunicationSkills
- Development of skills and facilitation of
workshops and seminars and presentation
skills.
(c) e kills
~ Office Administration
- Computer usage
- Financial concepts
- Affirmative action processes.
While some of these areas are identified above can be
improved by on-the-job training, others are in need of
training outside the project.
In addition to this immediate training needs, visits to
other housing projects in Namibia and the region should be
made possible in order to gain practical experience into
the implementation and establishment of housing projects.
Last but not the least it is recognised that solutions are
often not easily transferrable from one context to another,
nevertheless, there are important lessons to highlight so
that the mistakes of other countries are not repeated.
EVALUATION AND RECOMMENDATIONFORTHEOSHATOTWA HOUSING
PROGRAMME
BY: PETRONELLA TAARU
COMMUNITY DEVELOPMENT CO-ORDINATOR
1. INTRODUCTION AND BRIEFSUMMARY
cate
Oshatotwa Housing Programme was tadieated to help the
nomeless and mostly tne unemployed with acquiring land of
their own and eventually, wnen possible, to build\\buy
houses for tnemselves.
This initiative came from tne Government, and with the NHE
aS an executing body, people where then resettled at
Various erven, bought from the Municipality by NHE. The
target group was former Katutura Single Quarters residents.
These people, at this point already, were subjected to the
fact that, since they are occupying these erven, they have
to pay back NHE what has been incurred. The involved
people must pay back tne costs of land, on which they were
resettled.
Furtnermore, should any occupants of such erven wish to
build themselves a house with a loan from NHE, (which is an
executing body in house building as well), these monies
lent snould be recovered over a period of time.
The money used to be ient\\used came originally from the
German Government, in co-operation with the Namibian
Government 6 house the homeless" as one of the major aim
Or objective.
The assumption was that, after 2 years after this move,
there will be people fully (legally) resettled on this
land, people buiiding themselves houses, and an organized
community development network.
At present, there longterm goal has not been achieved,
which can be manifested\\observed in the following
phenomena:
_ Physically completed structures are limited to the
existent number of houses built so far.
- Poor payment performance from some of the candidates
regarding paying off their loans on erven.
- Demoralized clients who has lost faith in the
Oshatotwa Programme since they do not see any visual
progress.
- Infrastructure still lacking in some resettlement
areas e.g. Greenwell Matongo.
- Lack of information from the Housing Programme to the
clients what the Programme entails.
2
2. POSSIBLE OBSTACLES IN THE IMPLEMENTATION OF THE PROGRAMME
a)
b)
UNPLANNED\\UNPREPARED MOVE OF PEOPLE
It is true that the resettied people were consuite
pefore tneir move, nowever, it iS questionadle to
which extent they were prepared and ready to move to
the other sites from tne Single Quarters.
The decision (the main decision) was mereiy taken Dy
the Government. It iS aiso questionabie what the reai
goal for the Government was with moving tne people.
The community development co-ordinator feels that tnis
move has also created false hopes among the peopie
Since it waS initiated py tne Government ¢ Maybe some
people felt that the propagating of "f housing" as
made during the past eiection campaign nas come as a
reality at iast.
This, contributing to the fact tnat the majority of
the masses are unemployed and saw the Single Quarters
as an ideal market place for their goods, nas borne a
feeling of non-commitment from some resettled people.
THE HOUSING NEED - A PRIORITY FOR THE MASSES?
Most ofr the people who were registered with tne
Oshatotwa Housing Programme are from outside Windhoek.
These people mostly exist of those coming to urban
areas for employment.
Tneir real needs are two-folds -
- accommodation
- employment
These needs should be fulfilied, mostly on a temporary
base until their "contracts" for employment are
finished and for them to return to their permanent
residential areas (rural areas most of the time) in
order for them to continue their lives there.
It should also be noted that most of tnese people do
not have a permanent work.
This results in people not feeling committed to fulfil
their housing obligations, either in the form of doing
their monthly loan payments or by simply ignoring
these obligations.
For example, some of these people do not feel it is
priority for them to pay for land since they are
already having their communal lands in the rural
areas.
c)
d)
e)
f)
3
WESTERN CIVILIZATION VERSUS TRADITIONAL LIFESTYLE
FOr most of the people tne idea to pay for land is
new, Since tney were living on communal land in the
rural areas. Landownersnip for an individual is a new
concept among tnese peopie.
Adding the fact that the majority of the peopie are
illiterate, the financial management is a difficuit
task to deal with.
FALSE EXPECTATIONS
From contacts with the clients it is felt that the
majority of the resettled people are expecting too
much from the Programme. Is is not fully understood
that their contribution towards the Programme is
vital. The @¥tlginal move from the Single Quarters by
the Government,egetheelyah SekPNSHAEOEWA Housing
ProgramneOweg it eo Ng peop give them free
housing without their contribution.
THE EXECUTING BODY IN HOUSE BUILDING - NHE
I feel the NHE agency iS not putting enough efforts
into tne Programme since it is also involved in
building houses in other housing schemes. The
question is also whether personnel made available to
deal with the programme (OShatotwa) are not aiready
overloaded by other commitments.
If so, it cannot be expected that their personnel
involvement will be of the maximum capacity.
This will also act as a delaying tactic for the
Programme.
NHE's housing policy, which is at present applicable
to candidates of the Oshatotwa Housing Programme is
sometimes non-persistent, i.e. changing from time to
time, creating confusion among the people.
Most cases one would find changing of guidelines
(operating guidelines) or unrecorded changing
guidelines.
BUREAUCRACY
This Programme is dealing witn the illiterate, poor,
unemployed people.
I feel some obstacles are put in the implementation of
the Programme. T@o much emphasis and time is put on
paper work, documentation, Signing of documents etc.
For some clients\\procedures e.g. writing or signing is
already an uneasy procedure to go through.
4
It would be ideal if some paper work for exampie could
be simplified to fit the types of clients wno are
being dealt with.
g) CONSULTANTS _ THE TIME SPAN SOPENT ON THE
PROJECT\\HOUSING PROGRAMME
The international consultants who are expected to be
advisors to tne Programme are not spending enough time
on the programme since they are occasionally departing
for other places. This leaves a wide gap to tne
Operations of the programmes since their continuous
participation is vital.
RECOMMENDATION
4
In order to create a trustful reiationship between tne
Project (Oshatotwa) and the people who are participating in
it, more information (continuously) should be fed to the
masses, especially that regarding the Programme (Oshatotwa)
itself, and the housing obligations connected to it.
This will hopefully eliminate ali false hopes) and
misunderstandings.
Felt needs of the community should be adhered to first -
this means, we should get a clear picture of what the
people really want to benefit from the Oshatotwa Housing
Programme.
The implementing body, NHE, should put up clear and
consistent operation guidelines for the Programme.
Furthermore, more commitment is required from NHE to act as
a catalyst towards the smooth flowing of the Programme.
It should pe understood that this Programme cannot be
completed of finalized overnight, since it is one of the
few new projects yet established in Namibia.
Regarding international consultants, emphasis should be put
on the fact that this programme should be treated in a way
that the theoretical knowledge and experience gained
somewhere else does not necessarily mean that it is
applicable to the Namibian situation.
The whole implementing of the Programme will be easier if
the executing body in house building i.e. NHE can sSimpiify
the procedures through which the people have to go. It is
felt that too much bureaucracy is being applied before a
client has finalized his\\her application for acquiring an
erf or house. ta bevoliy went foOwdonelr) ,
Ww ann CL Co Warr Wor
P TAARU
17 FEBRUARY 1994