CHAPTER ONE
AN OVERVIEW OF THE STUDY
1.1 Background to the study
Africa and especially sub – Saharan is experiencing rapid urbanization. For example, it is estimated that Africa contributes 40% of the world population that lives in urban areas (Majare, 2002). The increase in population that lives in urban areas is triggered by the tremendous growth in population in Africa and other part of the world. In Tanzania urban population grows at a rate of 6% per annum (World Bank, 2002). The growth in urban population has significant effect in several facets. In particular, it poses significant challenges for the spatial planning, financing and provision of urban infrastructure and services, whether these are provided publicly or privately. Continued population growth further multiplies demands for infrastructure and services in Tanzania’s urban areas, where local authorities are already struggling to fulfill their mandates for urban service delivery. In residential areas, urban population growth is likely to lead to increased densification in both planned and unplanned areas and the expansion of mostly unplanned settlements on the peripheries of cities and towns (Mwiga, 2011). Morogoro urban is the most densely populated district in Morogoro region and experiences high rate of urbanization. Mvomero is one among districts in Morogoro region which experience such rapid urbanization. For example, according to the 2002 Tanzania National Census, the population of the Mvomero District was 260,525 and this figure is thought to increase overtime. As the population in Mvomero urban has been increasing, the town has simultaneously been facing rampant needs for land and buildings; this has led to the increase in use of unsurveyed land for shelter etc. For few planned residential areas, land is allocated with minimum or no infrastructure (Kironde, 2006). This situation forces majority of the urban population to find shelter in informal settlements that in turn grow faster than formal settlements. 2 This rings the alarm to the central government in collaboration with local governments (as implementers of the plots allocation projects through the use of PPP financed by the PPP board) to put in place or adopt effective measures to survey and allocate or avail formal/legal build block land with basic services/infrastructures like roads, water supply, electricity and sanitation to the greater portion of the urban population land seekers. It was expected that public private partnerships (PPPs) arrangements between government and private sector entities for the purpose of providing public infrastructure, community facilities and related services in Mvomero district would have improved plot allocation projects in the district. Since such partnerships is characterized by the sharing of investment, risk, responsibility and reward between the partners. Due to the fact that the reasons for establishing such partnerships involve the financing, design, construction, operation and maintenance of public infrastructure. However, until to date there is no PPP contract for effective plot allocation project in Mvomero district which reflect all aspects of the PPP arrangement (e.g. responsibilities, risk allocation, paymentmechanism.
1.2 Statement of the problem
In response to the increasing population and surveyed land for use in urban areas, the government introduced PPP board which among other things provides loans for surveying plots in local government authorities. Regarding the Ministry of Lands, Housing and Human Settlement Development, the budget estimates for 2010/11 was 47.8 bn/- for urban planning in general including plots allocation in particular. For example, Mvomero district applied for a loan of 462,880,000 Tshs but only TZS. 171,000,000 were given as loans in year 2010/2011 for this purpose. In other Districts, for example Bagamoyo, Babati, and Karatu, loans are also provided for land survey and allocation projects. 3 The objectives of such loans are urban planning, land surveying, which include plots allocation project as a means of avoiding land related conflicts, and to ensure proper urban planning. In some districts, land survey and allocations projects are reported to be very successful. For example, in Babati and Karatu districts, TZS 294,000,000/ was given and 2013 plots have been surveyed and allocated. In Kibaha district, TZS. 211,000,000 were given and plots were surveyed and reallocated in year 2010/2011 . Although significant amount of loans have been received in Mvomero District for land survey and reallocation, there are still shortages of planned land, lack of basic services in few of planned land. This study therefore seeks to find out the factors that turndown the effectiveness of PPP in land survey and reallocation projects. Also, this study will seek to provide recommendations or remedial actions on how the district authority can provide planned land to different land seekers, for housing and other social services as well as creating an enabling environment for development of urban planned land.
1.3. Study Objective
The objectives of this study are categorized into two parts, general objective and specific objectives. In the sub-sections that follow (i.e. sub-section 1.3.1 and 1.3.2), the details of each category are provided. 1.3.1 General objective The main objective of this study was to examine the factors that limit the effectiveness of PPP in plots allocation in Mvomero District 1.3. 2 Specific objectives i. To determine the extent to which PPP is not effective in plots allocation in Mvomero ii. To determine the factors leading to ineffectiveness of PPP in plots allocation in Mvomero 4 iii. To suggest possible actions that can be employed to promote effectiveness of PPP in plots allocation at Mvomero district
1.4. Research Questions.
The objective of this study is supported by two main types of research questions, general and specific research questions. In the sub-sections 1.4.1 and 1.4.2, the details of each category are provided 1.4.1 General research question The general research question of this study is; Is PPP in plots allocation project at Mvomero district effective? 1.4. 2 Specific research questions i. To what extent PPP in plots allocation project at Mvomero district is not effective? ii. What are the factors that affect the effectiveness of PPP in plots allocation project at Mvomero district? iii. What are the possible remedial actions that can be taken to promote effectiveness of PPP in plots allocation at Mvomero district?
1.5. Significance of the Study
The study on effectiveness of PPP in plots allocation project at Mvomero district will be significant to the different stakeholders both providers and recipients of the project. More specifically, the study is significant to the organizations and management, to shareholders, and to the researcher To the organization and management: The study will contribute to bridging the knowledge gap on the PPP by identifying factors that affect the effectiveness of PPP and determining the constraints/challenges that have influenced the level of performance. Recommendations for remedial actions are meant to contribute to building a robust and sustainable PPP and the manner on how can effectively be utilized. 5 To shareholders: This study will be helpful since the findings will help to know what issues influence the effectiveness of PPP in plots allocation project and the extent to which the local government (loans board) management put forward efforts towards managing such issues. With that finding it will help them to realize their profit in investing in the particular projects. To the researchers: The study shall provide guide and become useful to future researchers who will be interested in carrying out researches in the same area.
1.6 Scope and delimitation of the study
The study is focused on the effectiveness of PPP in plots allocation project in Mvomero district in particular. The study does not study the effectiveness of PPP in plots allocation project in other districts of the same region. The study is narrowed to this coverage because it is the district that so far is known to be ineffective in land survey for modern houses despite of the enormous amount of funds that have been provided for the said project. As explained in the statement of the problem in section 1.2, the study will concentrate on determining the factors that affect the effectiveness of PPP in plots allocation project and at the same time propose the way forward. The decision to focus on one district is also triggered by the time and financial constraints. In particular, the time given for this study was too short in such a way that it did not provide the possibility to study in other districts. In addition, studying in more districts requires more funds for this purpose but very small amount of money are available for this study.
1.7 Limitations of the study
This study was affected by several factors. Time constraint was one of the factors that undermined this study. The time granted to accomplish the research was too short in such a way that it was difficult to cover the big sample, so only a reasonable sample size was used. Difficulty in data accessibility was also a barrier to the effective conduct of this study. Due to confidentiality and management reasons some information was not given by respondents. Lack of cooperation is also one of the factors that affect many 6 researches and which affected this study as well. Some members of staff were unwilling to provide the necessary information to the researcher. This also affected attainment of the intended amount of data for this study. Funds were also another limiting factor. Money was required to support issues like stationeries, printing, photocopies and transport but the money for research was not enough leading to great challenges in data collection. 7
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction This chapter explores both the underlying theoretical as well as empirical studies that are of relevance to this area of the study. The chapter is divided into sections. Section 2.2 describes the possible factors that affect the effectiveness of PPP on plot allocations. In this chapter, analysis of the conceptual framework on which this study is built and the underlying assumptions as well as definitions are provided. Also, the Chapter describes the relationship between variables and finally provides a clear picture of the research problem.
2.2 Planned Urban Land Delivery Access to land for housing is one of the major problems faced by almost all developing countries. Urban land problems vary according to a particular town or city and its size, topography and public policy (Swam, 2002). Rapid urbanization and accelerated urban population growth necessitate new considerations of the ways in which urban development is regulated. Services and amenities are planned and managed so that the city and fawn space provide an inhabitable and healthful environment (Majale, 2002). Urban population growth in developing countries has posed multifaceted challenges both to urban administrators and dwellers. The unprecedented urban growth has been at higher rate as compared to the supply of serviced land for development. The consequence has been proliferation of informal settlements. Public authorities have failed to provide the urbanizing population with necessary services anti infrastructures including planned land, for orderly development (UN-Habitat, 1996, 2001). Over 60% of the population in Nairobi Kenya that live in unplanned settlements (UN-Habitat, 2000). In Mumbai India over 50% of population live in informal settlements, this has been due to scarcity of space and inability to pay the regular prices and partly due to the inefficient policy framework (Lall, 2001). 8 According to Sivam (2002), an informal market for land and housing has emerged in most developing countries because of the inability of the formal market to meet the demands of the majority of urban residents. Informal settlements have grown but not in the same way or to the same extent in all developing countries or even within the same country. For instance, they account for 35% hi Peruvian as per 1998 research report, 84% in Cairo Egypt as per 1993 research report, 49% in Delhi India as per year 2000 research report and 85% in Addis Ababa as per 1993 research report.
2.3 Government Efforts to Solve Planned Urban Housing Problems According to Fekade (2000) objective of public urban land management is provision of affordable buildable urban land in sufficient quantities and guidance growth of cities and ensuring their efficient functioning. Shabbir (1993) argued that urban management is a holistic concept. It is aimed at strengthening the capacity of government and NGOs, to identify policy and program alternatives and to implement with optimal results. McGill (1998) concurs with the need to strengthen government and other players, such as NGOs in the urban management process. The government is not the only player in managing urban development. NGOs have an enviable record of working with community groups especially in squatter upgrading. However they should operate in the context of an agreed strategic framework. Amos (1989) in his paper about strengthening municipal governments stated that, municipal government is essentially responsible for urban management. That is the constellation of activities which collectively shape the economic, social and physical development of urban areas. The latter are done to ensure an adequate provision of essential services and to promote economic development and human well-being. He also argued that a good urban management depends on the power to coordinate the activities of a variety of agencies at national and local level McGill (1998) suggested that urban management in developing countries should seek to achieve the simple but fundamental twin objectives of; planning for, providing and 9
maintaining a city’s infrastructure and services and making sure that the city’s local government is in a fit state organizationally and financially, to ensure that the provision and maintenance. Local government is therefore seen as the necessary driving force to integrate all players in the town/city building process. By integrating all the players, one harnesses the urban development There are a number of government formal approaches, strategies and programmes deployed to solve urban housing problems and the emergence of informal housing. Public housing programmes: According to Malpezzi and Sa-Adu (1996) direct interventions in housing began in the colonial era. Colonial administrations provided housing for expatriates as part of the employment contract. After independence, the emerging nations of Africa simply transferred this perquisite of office to indigenous officials. Governments interpreted the demand for urban housing more as welfare question and legitimate right of a newly liberated people than as part of a crucial national economic sector. It became fashionable in several African countries to establish large sale construction programmes, some aimed at low-income households and some for the elite. The programme was implemented by establishing bureaucracies, a multitude of urban development or housing authorities and corporations. However, the building standards and resultant high costs were very prohibitive by local standards. Most building codes forbid the use of affordable indigenous building materials and designs, which lowering costs fit the cultural preferences of low-income, most often rural- urban migrants. In cases where local people were allocated houses, sitting was too far from employment centres. Others decided to sub-let to higher income people for instance in Bangkok Thailand as per 1993 research report. Sites and services programmes: According to Fekade (2000), growing realization of costliness and ineffectiveness of direct public provision of housing led governments in 10 1970s to adopt sites and services which were seen a more realistic approach. The programme was funded by the World Bank which considered shelter provision as one of the cornerstones of the basic needs oriented development paradigm. In implementing the programme governments provided necessary infrastructures such as roads, electricity, water, drainage and waste disposal on public or government-purchased or subdivided plots. The programme was expecting to recover costs whereby the cost of price of plots would have to cover the cost of service provision. After allocation the targeted low income residents were expected to construct houses on their own, in a manner of phasing as their income allows. Different approaches or measures or reforms have base been employed by different ways worldwide to overcome the scarcity of land and deliver planned land to the demanding urban population. These include nationalization of land, compulsory acquisition of land, land banking, land readjustment/pooling/consolidation (e.g. Kathmandu valley Nepal in 1988), and land restitution. All these measures are hacked by a land law reform policy. The approaches have not been successful in all countries. For instance with compulsory acquisition of land in Algeria, land owners refused to sell land to state because prices for compensation (US$5.4 per square meter) offered by the government were too low as compared to that in informal sector, depending on the level of services whose prices ranged from US$200 per square meter hi secondary city centers to US$400 hi the center of Algiers (Farvacque & MeAuslan, 1992). In India although the land acquisition policy gives the power to public authorities to compulsorily acquire land for public purposes, it is cumbersome, expensive and time-consuming process. The relatively high cost of land acquisition has resulted in financial constraints to public authority (Sivam, 2002). Land banking, in which the state compulsorily acquires land for public or private purposes, has been extensively tried in Korea. Though successful in terms of meeting its quantitative objectives it has been criticized by being less than market-value 11 compensations to those from which land is compulsorily purchased usually low-income. Land readjustment/pooling which involves the consolidation of a group of adjoining landholdings in pen-urban areas in order to design, service and subdivide has been successfully applied in urban settings in Germany Japan and Korea. The layout provides for open spaces, streets and infrastructure and for building sites. Some of the plots are sold to recover the costs. The remaining is redistributed to the landowners whom they could in trim sell out or build on. The process brings the owners together for a unified objective and project costs and returns are shared. The process is fair and cost-effective. This approach is possibly transferable to upgrade or redevelop informal settlements (Fekade, 2000). Despite its conception and improvement on the public housing programmes, sites and services programmes did not achieve their objectives for many reasons. One is that, the programmes assumed significant public financing and subsidies, which rendered unrealistic due to shrinking of budgets yearly in many African countries as well as reduction of funds inflow from multilateral and bilateral financiers. Regulatory procedures was another hindrance, procedures were bureaucratic, resulting in implementation delays, hence cost escalation. The standards established were too high for local conditions and unaffordable to low-income residents (Fekade, 2000).
2.4 Experiences of Land Delivery Projects in African Countries According to Kalabamu (2004), European colonial powers introduced urban land administration systems in Africa that were modeled on the systems of their home countries. The extent, to which indigenous tenure systems were understood and recognized varied from colony to colony, but it was generally believed that only a formal system based on a European model could provide a framework for urban development and protect the rights of urban owners. Thus, both formal land delivery systems are coexisting in many African cities. Of serviced land for development 12 The urban growth rate in Sub-Sahara African countries has been increasing tremendously relative to supply. As a result informal settlements have dominated in most urban settlements with government failing to cope with the demand for surveyed and served plots. A condition to UN Habitat (2000, over 60%of the population of Nairobi live in one of the 133 informal settlements; these in total in occupy only 5% of land. In Dar es Salaam, 80% of all residential houses found in the unplanned settlement, which suggests that majority of urban residents are accommodated in informal settlements without basic facilities (Kironde 2006). In Botswana, several initiatives have been done to tackle rapid urbanities and shortage of land and housing. For several years government has been initiated plot supply project. For example, in 1966 Gaborone Town Council initiated a Self Help Housing project at Bontleg, by surveying and servicing about 380 plots. However, the plots were allocated with very little control in selection of beneficiaries or during the building process. The second project involve 3000 plots was financed by the United Kingdom Overseas Development Administration (ODA).This was intended for squatters who were being relocated from land earmarked for industrial development. In the mind 1970s, the government pun chased freehold farm. About 6,000 plots were surveyed for low, medium and high densities, shopping facilities and industries. From the project 70%of all plots were for self-housing.
In 1980s’, the government acquired several freehold farms and converted them to stake land for urban uses. About 3,000 hectares were subdivided into residential neighborhoods. Among the surveyed plots 15,000 were for residential, mixed of income groups. About 20,000 people applied for plots Gaborone alone. Between 1990 and 2000 the demand for residential plots for Gaborone alone was estimated at 44,000. On the basis of these estimations, the government introduced the Accelerated Land Servicing Programme (ALSP), under this programme’; the government was able to service a total of 10,200 residential plots in Gaborone. 13 Kalabamu (2000) notes that there have been joint efforts between the government and private sector. According to Kalabamu (2004), the city of Gaborone had a total of 33,342 serviced residential plots of which 23294 were fully developed or in the process of development. A total of 10,049 state land plots were yet to be allocated or had been allocated to people. From 1998 to 2001 about 20 companies were allocated a total of about 75 hectares of state land to service and build block of flat. The government intended to complement private sector efforts by servicing and delivering approximately 7,873 plots between 2001 and 2005. Access to land in Botswana does not depend on need but on income group of applicants, and that the benefits accruing to holders of rights depends on the type of rights. Gold (2006) examined sustainable options for enabling the urban poor in Namibia, by looking at the capacity of local authorities in keeping pace with the demand for secure land tenure due to rapid urbanization. The most marginalized of the urban poor cannot afford the high plots, and local authorities have the problem of ensuring that serviced land is provided. The core problems of land delivery in Namibia according to Gold are high in costs of physical planning land, surveying, registration as well as provision of comprehensive services. Another problem is the cumbersome procedure of transferring land from freehold titles. As a result, the residents who are moving into urban centers and want land immediately fail to get it. They opt to settle in difficult areas where services are not easily accessible. The situation leads to emergence of ghetto type of living conditions with deteriorating environment and increasing health problems. To overcome the situation, the Government of Namibia introduced the Flexible land Tenure Systems, with the aim of adjusting planning procedures to deal with the rapid urbanization. The objective of a flexible land tenure system was to enable access to 14 affordable land for the marginalized sectors of the population Gold (2006). Although the population of Namibia is small (1.8 million people in 2004) of which 26.5 % live in urban areas, the problem of access to service land and secure land tenure is linked to rapid growth of the spontaneous and unplanned informal settlements. Kenya like any other developing country in Africa had also undertaken several schemes/projects aimed at solving the shortage of surveyed and serviced plots for housing particularly in urban areas using different approaches. Musyoka (2004) observes that between 40% and 80% of Kenya urban population is estimated to live in informal settlements, the proportion varying between different cities and town. The municipalities and urban areas account for 23 of national total of poor households. Land in Kenya can be owned by state, private and customary. About 20% of land is owned by the state, which includes all areas that fall in hazardous, undeveloped land earmarked for public utilities like school, health centers. While 12% is privately owned, that also includes
settlers’ farms, and freehold land. Customary land is 68%, mostly being clan land, and most of it is occupied by smaller holders. Private individuals purchase the land from customary land. Experience shows that, occupiers of customary land in informal settlements are often tempted by the rich to dispose of their land. The private land buyers have therefore displaced the poor. Often, the poorer moved to other areas where they start new unplanned settlements. Mkenda’s (2006) finding from Makovo settlement in Kenya reveals that, most of the land is allocated to few people who have the resources, and the upholding land for speculation purposes. The ownership of land in Uganda can be through public, leasehold, private, customary
and ‘Mailo’ system. A study carried out by Nkurunzinza (2004), shows that both formal and informal land delivery system are practiced in Uganda, based on concepts and administrative systems introduced by colonial and pre colonial leadership. Land delivery 15 system has proved unable to cope with the demands of rapid urban growth in contexts of extreme poverty and limited state capacity to provide formal land. According to Nkurunzinza (2004), formal land delivery system has been inefficient thus, leading to increased difficulties in securing land for housing for the livelihood of urban poor. Access to land in Kampala is primarily through buying which is pursued through either lump sum or installments cash payments. However, the channel seems to be disadvantageous to women and the poor. The largest supply of land in Kampala comes
from sub divisions of Mailo land. Most households’ access to land is through informal bureaucratic, expensive and cumbersome procedures. The other source of land in Kampala is the church, mainly Romanic Catholic and Anglican Churches, which own substantial areas of land in the city. There are many families that have settled on church land over time, albeit illegally. Informal access to land has been shown to be far cheaper than land accessed through formal means. The formal means of land delivery is said to be cumbersome and expensive, hence not affordable by the poor. Ikejio et al (2004) argued that, despite the Nigerian Government and its agencies’ efforts to improve land delivery, formal and informal land supply procedures are inefficient, creating more urban poor. The federal, State and Local Authorities are involved in acquisition of land from customary and private tenure for public use. The acquired land is usually serviced and allocated to individuals and groups with development conditions. It was observed that, those who are allocated land in Enugu are wealthy enough to purchase the land. The government has tried to adapt sporadic efforts to provide the so
called ‘low cost housing and serviced plots’ but no serious attention has ever been paid in meeting the land and housing needs for the urban poor, despite the existence of good social policies. 16 It can be concluded that, most of the African countries have expressed concern for poor human settlements by introducing various development schemes, programmes, projects and other land delivery systems that need to provide sustainable settlements. Most of the governments on solo basis, strive to mobilize to acquire, survey and service land for the needy. Usually what is done by most of the countries is to upgrade the existing informal settlement, formalize or regularize. However, it is an exception for the government of the Botswana which has managed to acquire land and introduce housing schemes in collaboration with private sector to overcome the shortage of surveyed plots.
2.5 Principles of PPP in relation to Plot allocation The origin of PPPs is not clear, however, the UK Government made the first determined push for the use of private sector financing of its infrastructure projects under the Private Finance Initiative (PFI) which was embark on in the UK in 1992 (Lambert and Lapsley 2006). These include determining that a project proceeds because of community needs rather than because the assessment was favourable towards the partnership method of financing. Moreover, accounting admittance issues regarding debt are evaluated subsequent to rather than before the project is approved (Quiggin 2004). PPP are used worldwide and there use is ever-increasing. Watson (2003) spot out two main reasons for its increased use. The first is for government to reduce debt and the second is to attain value-for-money (VFM) from these large projects. Lilley and De Giorgio (2004) as well identify VfM and the timely delivery of new infrastructure as the main reasons for its increased use. In Australia, in the ten years to 2000, approximately $72 billion of public assets were transferred to the private sector. This represents 12% of
Australia’s infrastructure assets Earl and Regan (2003). PPP allow for greater expectedness of costs for the government and revenues for the private company since both of these are well spoken in the contract. However, it can also be reasoned that by locking itself into such a long-term agreement, the government faces 17 the risk of not being able to re-negotiate the contract if and when circumstances and needs change over time. There is a real need to comprehensively evaluate PPP projects, although there appears to be resistance because access to vital information must come from both partners; the government and the private sector unit (Spackman, 2002). PPPs are designed to enhance the mutual sharing of costs, risks and benefits of infrastructure projects between the public and the private sector by taking advantage of the strengths of either side while simultaneously overcoming their peculiar limitations. In a nutshell, a well thought out and adequately structured PPP arrangement should efficiently and effectively achieve superior results than the traditional public sector infrastructure financing approaches. The PPP approach is expected to eliminate the decision making and managerial bureaucracy associated with the public sector Perrot and Chatelus, (2000). It further positively draws from the good credit rating and general goodwill of the public sector to consolidate market based procurement of project
finances while ensuring less resistance from the general public. The private sector’s limitations in managing macro level public infrastructure risks as pointed out by Carnevale (2002) can be overcome through the backing by the government in policy formulation for implementation of PPP. Regardless of the theoretic grounding of the use of PPP in infrastructure, there is widespread documentation of the varied experiences of countries across the globe. In Europe, most PPP models are derivatives of the French concession model and the British Public Finance Initiative (PFI) model. Karisa and Dantas (2006) point toward that PPP were instrumental in the development of high-performance roads in France originating from the use of concessions and tolls for financing motorway construction by public companies from the mid 1950s. They document several major issues arising from
France’s experience with concession as a form PPP. These include the relative advantages and disadvantages of motorway financing through cross subsidies; relative 18 advantages and disadvantages of toll financing of highways; efficiency of private recognition for highways; dilemma of regulating toll rates of concessionaires; importance of guarding against potential conflicts of interest when construction companies participate in concessions and relative ability of public and private sector companies to take environmental considerations into account.
25.1 Application of PPP in Tanzania Developing states including Tanzania over the recent years has recognized the importance of involving Private Sector in the provision of the Public Services. This move has seen the recent enactment of the PPP Act in April 2010. The Act lays framework upon which the government and municipals may engage the procurement of private sector in the provision of the public based services and projects. Mostly PPPs in Tanzania are being undertaken through the private sector development programe, and have mainly involved direct service delivery (URT, 2009). New investments in physical infrastructure development using Public Private Partnership basis are low, a few exceptions are in the power and communications sectors. There has been a limited success. PPP implemented in Tanzania are concession agreements for running existing enterprises with limited provisions for rehabilitation and new investments. Following embracing of liberalization policies, there has been an increased involvement of the private sector in investment and provision of services which previously were being provided by the Government (URT, 2009). For example, in the case of services, PPP have been implemented successfully by Faith Based Organizations (FBOs) in education, health and water sectors for many years. In the case of other sectors, the performance has been mixed largely due to the complexity of such undertakings and lack of clear guidelines on the criteria for public and private sector partnership (Josephat, 2009) 19 Furthermore, the action plan included six strategies: decentralization, improvement of central health systems, health management, financing, human resources, and partnership (URT, 1998). In order to devolve more power to the local level, the Local Government Reform Programme (URT, 1998) was formulated as a policy instrument to facilitate decision making and accountability in municipalities and district councils on public health-related matters amongst others. These policy documents made it clear the
government’s intention to work closely with the private sector (for profit) and nongovernmental organizations (NGOs).
2.6 Factors that may affect the effectiveness of PPP in Plots Allocation Effectiveness of PPP in plots allocation may be affected by many factors. Theoretical literature suggests that not all factors can be common in all countries or districts. That, is to say the factors affecting the project may differ from place to place. Among the factors that are suggested in the literature include: shortage in manpower, delays in approval of plans, delays in the processing of the Certificates of Occupancy, behaviour of land officers, double allocation, consent for transfer of rights, inefficient revocation process, illegal changes of use, allocation committees, undervaluation to evade tax, political interventions, ethical behaviour and employee discipline, resistance of residents who reside in the unsurveyed land to evacuate the place, lack of funds to compensate land owners to evacuate the places.
Shortage in manpower: Shortage of manpower and equipment is one of the factors that turndown the effectiveness of the PPP in plots allocation projects (Mohd Zin, 2008:124). Shortage of manpower, lack of modern equipment and outdated technology are main problems that affect land sector in most countries. Lack of base maps for example, may constrain preparation of layouts and hence plot production.
Delays in approval of plans: The approval process for town plans and survey plans takes a long time at the Ministry of Lands. Approvals are instantly granted when close 20 follow up and kickback offers are made by town planners and surveyors who brought the plans from the regions and districts. The kickback bills are pre-footed by clients in originating stations. It has been reported that the Director of Surveys and Mapping office has introduced a system where jobs brought by private surveyors are treated on fast track basis as opposed to jobs submitted by government surveyors. This was testified by Hai District officials who said a survey that belonged to one Member of Parliament and which was done by a private surveyor was at one time approved within a very short time whereas a survey plan submitted by a government surveyor within the same period and for the same town took three years to be approved without good cause. It seems an official fast track service has been established in the survey department for private surveyors only (Odgaard, 1999).
Delays in the Process of the Certificates of Occupancy: Procurement of certificates of occupancy takes too long. In pursuance of the aforesaid some dubious means of trying to expedite the process has been designed. In Kilimanjaro, it is said that to solve this problem people have adopted a system whereby they contribute between Tzs. 20,000/= to 30,000/= for each certificate holder and hand it over to an agent who takes the certificates to Dar es Salaam. The agent once in Dar es Salaam uses the proceeds at the office of the Commissioner for Lands to secure the certificates signed quickly (Odgaard, 1999). That way the process takes shorter time than when they are left to be processed through the normal procedure. Grassroots stakeholders said that the delays in the processing of certificate of occupancy are being fuelled by corrupt malpractices. Dar es Salaam was cited as an example where for one to get his certificate processed he/she should be ready to bribe (Odgaard, 1999).
Behaviour of land officers: It was reported that land officers are only interested in allocation of plots where they access bribes. They have cultivated a habit of forcing clients or landowners to appear in person in their offices rather than attending to the files. Land allocation is just a small part of the duties of the land management. Other 21 areas; such as enforcement of development conditions and processing title deeds are not
attended by land officers. Citizen’s efforts to regularize unplanned areas have received no support from the Ministry. The Makongo residents in Dar es Salaam, for instance tried to draw their regularization plan for the area, but the Ministry has declined to approve it. Individual plans prepared in unplanned areas are approved with kickbacks (The Gender Land Task Force, 1998).
Double allocation: Double allocation cases have been reported in all districts where the study was carried out. Incidences of having one plot allocated to more than one individual are mostly done by land officials deliberately for not following allocation procedures; and motivated by personal gains. For example, Plot No. 20 Them industrial areas in Arusha Municipality represent a case where a plot was allocated to Arusha Technical College before the revocation and paid compensation to the previous owner. As a result the previous owner refused to allow the Technical College to own and develop the plot (Shivji, 1998).
Consent for transfer of rights: It was reported that some land officers receive bribes so as to issue consent for a transfer of certain right of occupancy. The issuance of consent for disposition is also said to be another area where incidences of corruption occur. This is due to the fact that there are no clear-cut criteria under which the land officers base their decision to deny or give the required consent. A case cited to justify corruption incidences that happen by way of transfer was a transfer by auction on properties where auctioneers colluded with the buyers to accept low auction prices of the properties. Live case cited here was an auction of a house on a plot where an auctioneer demanded a bribe from the owner of the house in order to sell it at a lower price than its actual market price (The National Land Forum, 1998)
Inefficient revocation process: Some of the interviewed pointed out that the revocation process of undeveloped plots takes too long to be cleared at the headquarters. Some 22 suggested that the Regional Commissioners be empowered to revoke titles on behalf of the President. The undeveloped plots attract corruption as capable developers use corrupt ways to obtain them, corrupt land officers utilize such occasions to acquire bribes and reallocate the plots without due process of the law (World Bank, 1992).
Illegal changes of uses: Cases of changes of use, particularly the creation of residential plots on public open spaces, violation of building lines, invasion of open space in the central areas, erection of business stalls and garages on road reserves, haphazard mushrooming of petrol stations etc, is a very common phenomena in towns. Such situations constitute a failure on the part of planners and land officers to enforce the plans and regulations guiding urban development. The survey revealed that some of
these contraventions had ‘permits’ from the authorities; and even for those not having
permits the council’s decision to collect taxes and other duties amounts to approval by implication. In Korogwe town, this was attributed to conflict of mandates between the District Council and Korogwe Township Authority. Illegal changes of use resulting from conflict of mandates were also reported in Moshi Municipality. The Regional Administrative Authority has allocated a piece of land on road reserve to a Dar es Salaam company for construction of Vodacom antenna contrary to urban regulations (World Bank, 1992).
Allocation Committees: Contrary to the popular belief that plot allocation committees are fair bodies of plot allocation practice, there have been raised issues that such committees have sometimes been used as instruments of unfair allocations and as a shield against being held responsible for the unfair allocations carried out by it. It was reported that at one sitting of a certain allocation committee each committee member was given a chance of producing before the committee four names of the persons he wanted to be given plots without any regard to the list of applicants that was tabled before the committee by the secretariat. That offer meant that a substantial number of genuine 23 applicants had to miss the plots and the plots were corruptly allocated to the illegal applicants (Abubakar, 1989),
Undervaluation to evade tax: In Moshi it was reported that in the year 2003 there were 3 cases of valuation exercises that were undervalued with intent to evade stamp duty and capital gain tax. It was also revealed that although it is difficult do get tangible evidence to prove it, circumstantial evidence showed that there is a practice of values to collude with clients who sell their properties to underestimate the value of the properties with an aim of evading or paying less tax than that which they are required to pay. This denies revenue to the government. Actually the value and the property owner share the difference at the expense of the government (Shivji, 1998).
Political interventions: It was reported that there are incidences where people do not conform to the permitted use of land as according to town planning regulations. When such incidences occur, government officials enforce the law by requiring those who have breached the law to demolish whatever they have illegally erected (Shivji, 1998). Political leaders however interfere with such orders by telling those concerned not to obey the government official orders. For example a certain Member of Parliament is said to have interfered with such orders when those who had squatted at the Machame junction in Hai District were ordered to demolish their ‘huts’. Complaints were received that some people were colluding with local leaderships to encroach public open spaces. One example was a businessman who colluded with the party local leaders of the area in Arusha Municipality to build on an open space (Wilson, 1997).
Ethical behaviour and employee discipline: For the purpose of achieving the objectives set by the local government on how to effectively utilize PPP on plot allocation, personnel should be informed or reminded about accepted standards of work ethics and conduct so as prevent any undisciplined behaviour that may discredit the local authorities’ services (World Bank, 1992). Even though disciplinary problems are among 24 of serious concern to local authorities, its increasing trend can have a negative impact on their efficiency and effectiveness. Recognizing the importance of discipline, high ethical standards and productivity, a number of approaches have been adopted by many government agencies including local authorities since the late seventies. Among others, these initiatives include the introduction of Code of Ethics in the Public Service, Manual of Office Procedure among others (Wilson, 1997).
2.6 Empirical literature review Empirical literature on the effectiveness of local government financing to improve public land and plots management is available. One of the popular studies in this area is by Angus and Mohamed (2011). They found that internal local government funds are important in plots allocation and land management. They further argue that the funds can effectively mitigate fraud and fraudulent activities in the Public land if it is adequately provided and used for the purpose in which it is provided for; that is for land survey and allocation. Adequate equipment and competent staff are paramount for effective land survey and allocation projects. Angus and Mohamed (2011) in their study recommended that Government should provide an adequate equipment and staff for land survey and allocation projects. This suggests that inadequate equipment and lack of competent staff for that purpose may embed the land survey and allocation projects. Davis (1999) studied on the relationship between plots allocation and financial activities of local authorities. The study revealed that local government plots allocation is heavily influenced by financial activities and mandatory compliance requirements. In many cases, non-compliance could result in fines for the local authority, and in some cases criminal prosecution of staff involved. 25 Regulatory framework in planned land in urban areas has also an impact on the effectiveness of land survey and allocation projects Mwiga (2011). It is argued that regulatory framework may be supportive for cadastral works, but not so related to provision of basic infrastructures and land development. In the study conducted by PCB (2005) on the incidences of corruption in the land Sector plot allocation. The study adopted survey research design prior to fieldwork; available literature of the subject matter were studied, in order to understand aspects of corruption on land planning, management, surveying and allocation of property rights that encompassed the following Fieldwork visits to 8 Municipalities (Ilala, Kinondoni, Temeke, Morogoro, Iringa, Moshi, Tanga and Arusha), 4 towns (Songea, Mafinga, Korogwe and Hai), and 5 Villages (Kambala, Msolwa, Msindo, Lumecha and Namwawala) was made to collect relevant information regarding land disputes and conflicts that had clear features of corruption. Semi-structured questionnaire and checklists to interview and get information from stakeholders was administered. A participatory reflection appraisal approach was used to enable stakeholders identify issues of corruption and provide proposals to combat corruption in the land sector. Interviews with experts at the Ministry of Lands; Regional Secretariats, District and Municipal Offices, together with various political leaders and individuals concerning problems on land administration revealed the issues that have a bearing on corruption such as ways on how to obtain building permit. Mwiga (2011) conducted a study on evaluating the effectiveness of the regulatory framework in planned land in urban areas the case study of Dar es Salaam city 20,000 plots projects. With the view of the study it intended to investigate the effectiveness of regulatory framework in facilitating the process of availing planned urban residential plots and development for land seekers in the context of the 20,000 plots projects. The study adopted case study design to collect primary and secondary data were harnessed 26 by purposive sampling techniques where questionnaires, interviews and focus group discussion were used. The study findings indicate that the current regulatory framework is supportive for cadastral works, but not so related to provision of basic infrastructures and land development. Also there are so many problems associated with the respective project such as bureaucratic issues in getting building permits, too short plot and the regulatory framework has failed to prevent the development of informal settlements.
2.7 Conceptual Framework A conceptual framework is described as a set of broad ideas and principles taken from relevant fields of enquiry and used to structure a subsequent presentation (Rachel and Ramey, 2007). When clearly articulated, a conceptual framework has potential usefulness as a tool to scaffold research and, therefore, to assist a researcher to make meaning of subsequent findings. Such a framework should be intended as a starting point for reflection about the research and its context. The framework is a research tool intended to assist a researcher to develop awareness and understanding of the situation under scrutiny and to communicate this. As with all investigation in the social world, the framework itself forms part of the
agenda for negotiation to be scrutinized and tested, reviewed and reformed as a result of investigation (Guba and Lincoln, 2009). The conceptual model for this study has been built by integrating together the reviewed literature on the concept of effectiveness of PPP in the plots allocation project. For the case of this study conceptual framework links the relationship between independent variables and dependent variable. The general idea of this research is to make an examination of the effectiveness of PPP in plots allocation as currently being implemented at Mvomero district for urban planned residential land delivery and development as shown in the figure bellow 27 Figure 2.1: Conceptual framework
Source: Developed by researcher (2013) 28