Technical Assistance Consultant’s Report

Project Number: 39298 December 2012

Bangladesh: Strengthening Regional Planning and Governance (Financed by the TA Special Fund)

Prepared by: Halcrow Group Limited, UKG

For Rajdhani Unnayan Kartripakkha (RAJUK)

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

Asian Development Bank Government of Bangladesh

TA 7641-BAN: Strengthening Regional Planning and Governance

Final Report Volume 1. Main Report December 2012

Halcrow Group Limited

in association with BCL Associates Ltd, Dhaka

Asian Development Bank Government of Bangladesh

TA 7641-BAN: Strengthening Regional Planning and Governance

Final Report Volume 1. Main report December 2012

Halcrow Group Limited

in association with BCL Associates Ltd, Dhaka

Halcrow Group Limited A CH2M HILL Company Vineyard House 44 Brook Green London W6 7BY Tel +44 (0)20 7602 7282 Fax +44 (0)20 7603 0095 www.halcrow.com

Halcrow has prepared this report in accordance with the instructions of its client, Asian Development Bank, for its sole and specific use. Any other persons who use any information contained herein may do so at their own risk.

© Halcrow 2012

Strengthening Regional Planning and Governance Knowledge Summary

TA7641-BAN: Strengthening Regional Planning and Governance (SRPG) Knowledge Summary

The overall aim of SRPG was to ‘streamline and strengthen the institutional frameworks of regional planning and governance’ and thereby address the institutional issues that currently contribute to making Dhaka one of the least liveable cities in the world and are seriously compromising the sustainability of its future development. It should be emphasized that SRPG is an institutional, and not a plan- or policy-making study. The study methodology was based around: (i) wide ranging consultations with key stakeholders including government, urban development experts, the legal profession, civil society, and the private sector; and document reviews; and (iii) international case studies (Delhi, Jakarta, London). Over 40 organisations and individual experts were consulted through one to one interviews, small group discussions, seminars, and workshops. Over 30 meetings were held with senior management, directors and deputy directors from all departments from RAJUK (Dhaka’s Capital Development Authority. A major stakeholder workshop was held in September 2012. This workshop, co-organised with RAJUK, was attended by the Minister of Housing and Public Works, RAJUK chairman and around 140 other stakeholders from government departments, academia, civil society and the private sector. Dhaka arguably faces the most extreme combination of urban problems of any mega-city – acute shortage of developable land, very high densities, high flood risk, rapidly decreasing groundwater levels, chaotic transportation, low levels of infrastructure and open space. And Dhaka is far less well placed to cope with the extreme weather events that have recently affected Bangkok, Japan and now New York. The need to tackle these issues emerged from virtually every consultation, including those with the private sector. Confronting these challenges will require urban institutions and metropolitan governance of the highest calibre. Yet Dhaka’s urban institutions are currently failing. The institutional challenges fall into three basic categories: i) those that relate primarily to RAJUK and the urban planning system; (ii) those involving sectoral issues – regional economic development, transportation and environmental management; and (iii) those that relate to the wider issue of overall metropolitan governance and inter- agency co-ordination. The importance of these issues was confirmed by RAJUK early in the study. They were also raised extensively during all the study’s consultations and are the subject of frequent media reports. The study generated proposals to address all these issues, as summarized overleaf. Although the study focused on Dhaka, many of the proposals and legislation will be applicable to other urban centres in Bangladesh; many would also be relevant to other large developing country cities. The bottom line is that if the development of large Asian cities is to become more economically, environmentally and socially sustainable, action has to be taken now to plan for the future, identify priority infrastructure projects, safeguard their rights of way and mobilize the necessary finance. This will require a combination of committed leadership, effective institutions and a climate of inter-agency co-ordination and co-operation. Key lessons learnt from the study are summarized overleaf.

SRPG Summary Proposals

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1. Strengthening urban planning through measures which include: increased flexibility, enhanced procedures for public consultation and participation, promotion of pro-active planning (including land readjustment), introduction of financial contributions for developers of major projects, measures to increase the provision of housing for the urban poor, strengthening development control and its enforcement. A new planning Act has been prepared to give legal force to these recommendations. 2. Strengthening RAJUK by; upgrading the status of its board and introducing measures to increase its decision-making and financial autonomy; substantial organizational development, staff capacity building and training measures. 3. Rebuilding public confidence and trust in RAJUK and its operations: increased transparency with greater public dissemination of information, tighter adherence to its own plans, policies and environmental legislation, greater concern for the needs of lower income groups, and more attention to the whole metropolitan area relative to its land development activities. 4. Measures to improve the co-ordination of agencies involved in land use, transportation and economic planning, project identification, implementation and budgeting; and the much closer integration of these with environmental management. 5. The phased introduction of comprehensive metropolitan governance including the transfer of local planning functions to local authorities and the gradual establishment of a Metropolitan Development Authority encompassing a full range of strategic land use, transportation, economic and environmental functions. SRPG: Summary of Lessons Learnt 1. Urban planning in developing country cities has a poor track record, yet it is crucial to addressing the issues which currently compromise the sustainable development of these cities. To be more effective, planning has to: become more flexible, be more strongly enforced, properly address the needs of the urban poor, and become more pro-active in the establishment of coherent spatial structures in fast-growing urban fringe areas. 2. Yet any planning system will fail if the institutional capacity to implement plans through a combination of strong development control and enforcement, and the creation of partnerships with sectoral agencies, developers, land owners and communities, is lacking. 3. Successful urban development does not result from good planning alone. It requires effective collaboration with key sectoral agencies (especially transportation) in the identification, planning, funding and implementation of priority infrastructure. Hence the SRPG proposals to establish inter- agency mechanisms to promote knowledge sharing, trust and co-operation. 4. Good planning and institutions are a necessary condition for sustainable urban development, yet without the necessary resources to invest in the required infrastructure little will be possible. Hence the importance of proposals to increase income from land sales, developers’ obligations and land sales. 5. Major institutional re-structuring, e.g. the establishment of Metropolitan Development Authorities, should generally be seen as a longer term objective. In the short term, such re-structuring is likely to be controversial and delay the introduction of other crucial, but more easily implementable, proposals. It is also unlikely to overcome existing weaknesses in current institutions or wider issues related to improper influence and inadequate finance. Hence SRPG’s emphasis on strengthening existing institutions and developing co-ordination mechanisms related to: annual infrastructure planning and budgeting, major development projects, planning enforcement activities, the integration of land use and environmental approval procedures, and right of way safe-guarding.

SRPG, Final Report Halcrow Group Limited/ BCL, December 2012. Strengthening Regional Planning and Governance Executive Summary

TA7641-BAN: Strengthening Regional Planning and Governance (SRPG) Executive Summary

1. Objectives and Approach 1. The overall aim of SRPG is to ‘streamline and strengthen the institutional frameworks of regional planning and governance’ and thereby address the institutional issues that currently contribute to making Dhaka one of the least liveable cities in the world and are seriously compromising the sustainability of its future development. SRPG is an institutional, and not a plan- or policy-making study1. 2. As set out in the TOR, the consultants’ technical proposal, and subsequently confirmed at the outset of the study, the study methodology has been based around: (i) wide ranging consultations with key stakeholders including government, urban development experts, the legal profession, civil society, and the private sector; (ii) document reviews; and (iii) international case studies. International members of the study team visited Dhaka in October/ November 2011, February/ March, May/June (when discussions were held with representatives in the cities of Chittagong, Khulna and Rajshahi) and September 2012 to work alongside their national counterparts who undertook many of the consultations. 3. In total over 40 organisations and individual experts were consulted through one to one and small group interviews. Multiple meetings were held with the most important stakeholders, particularly RAJUK2 where over 30 meetings were held with senior management, directors and deputy directors from all departments. In addition, seminars and group discussions were held with: (i) RAJUK; (ii) stakeholders from the transport and environmental sectors; (iii) Dhaka Chamber of Commerce and Industry (DCCI); (iv) legal experts; and (v) the planning fraternity. A major stakeholder workshop was held in September 2012. This workshop, co-organised with RAJUK, was attended by the Minister of Housing and Public Works, the chairman of RAJUK, assistant secretaries from this Ministry and the Ministry of Local Government and Rural Development and around 140 other stakeholders from government departments, academia, civil society and the private sector. The workshop received significant national press coverage. Final consultations were held with RAJUK, DTCA and the Planning Commission in late November/early December 2012. The Final Report takes account of these comments as well as the written response provided by RAJUK to the Consultants. 4. This Study deals primarily, as envisaged in the TOR, with RAJUK and the Dhaka Metropolitan Area3. Based on our research, many of the issues also occur in the other major cities of Bangladesh. In consequence, many of the proposals would also be applicable to the Development Authorities and City Corporations elsewhere in the country. 5. The SRPG Final Report consists of 3 volumes:

1 A comprehensive review of the current Dhaka Metropolitan Development Plan (DMDP) under the umbrella of the ADB City Region Development Project (CRDP) is expected to start imminently. It is expected that this study, which also includes institutional and capacity building components will be able to build upon the SRPG recommendations. 2 RAJUK: Rajdhani Unnayan Kartipakkha, the Capital Development Authority, which was the primary contact point for this study. 3 Numerous definitions, see Chapter 2. For the purposes of this study, the primary focus is on RAJUK’s jurisdictional area which covers around 1,530 km2 and includes several substantial municipal areas as well as the main urban core of Dhaka City. This area is identical to that covered by the existing Dhaka Metropolitan Development Plan (DMDP).

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• Volume 1. Main Report (this Volume) summarises Dhaka’s urban challenges and the planning, institutional, legislative and sectoral contexts that have contributed to these challenges. It contains the study’s proposals. • Volume 2 contains the proposed Town Improvement (Amendment) Act (component A of the ToR). • Volume 3 contains a detailed analysis of the issues related to organisational development, capacity building and training, and recommendations as to how these issues need to be addressed in order to facilitate the implementation of the study’s institutional proposals. 6. Dhaka’s urban challenges and the institutional issues which hamper action to make Dhaka’s current and future urban development more sustainable economically, environmentally and socially, are generally familiar to GOB officials, experts, developers and civil society4. Policy makers will therefore be mainly interested in the study’s proposals. Hence, and in order to keep it to a manageable length, this Executive Summary concentrates heavily on providing a summary of the study’s proposals contained in Chapters 11 to 18 of Volume 1. Readers less familiar with Dhaka should refer to Chapters 2 to 9 for more detail on the issues which this study has addressed.

2. Dhaka’s Urban Challenges (Chapter 2) 7. Table ES1 provides an overview of the most serious urban development challenges facing Dhaka. Dhaka is not the only large city facing these challenges, particularly those relating to high population growth, uncoordinated urban expansion, susceptibility to rising sea levels and traffic congestion. However, Dhaka arguably faces the most extreme combination of urban problems of any mega-city – acute shortage of developable land, very high densities, high flood risk, rapidly decreasing groundwater levels, chaotic transportation, low levels of infrastructure and open space. And Dhaka is far less well placed to cope with the extreme weather events that have recently affected New Orleans, Bangkok, Manila, Japan and now New York. 8. The need to tackle these issues emerged from virtually every consultation, including those with the private sector. In short, everyone considers that action is urgently needed if Dhaka is to be ‘saved’. Identifying the institutional measures needed to address these issues, and address them soon, is the over-arching objective of this study.

3. The Key Institutional Issues (Chapters 3 to 9) 9. Table ES2 summarises the key institutional issues identified in Chapters 3 to 9. The issues fall into three general categories: i) those that relate primarily to RAJUK and the urban planning system; (ii) those involving sectoral issues – regional economic development, transportation and environmental management; and (iii) those that relate to the wider issue of overall metropolitan governance and inter- agency co-ordination. The importance of these issues was confirmed by RAJUK early in the study. They were also raised extensively during all the study’s consultations. Many are the subject of frequent media reports. Most are not however new and have been mentioned in many urban institutional and infrastructure studies over the last 20 years. This does not however reduce their importance and the need to urgently address them if Dhaka’s development is to become more sustainable in the future. They thus form the basis for the study’s proposals.

4 Indeed many were identified in the TOR for the study.

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Table ES.1. Dhaka’s Urban Development Challenges

Sector/ Topic The Challenges ƒ Low lying and situated in the middle of one of the largest river deltas in the world, Geographic Dhaka is very vulnerable to severe flooding from upstream during the monsoon season. Location This vulnerability will be increased should sea levels rise as a result of climate change.

ƒ Currently around 15 million (DMDP area) and growing at 3-4% annually means that Population there are very high development pressures across the DMDP area. The resulting annual increase in households is in the order of 100,000. Even with reduced with migration, a population increase to around 25 million is quite possible over the next 20 years.

ƒ Dhaka’s economy has grown consistently in recent years such that the DCR, with Economy around 15% of the national population generates about 40% of GDP due especially to the continued expansion of the garment industry over the last 20 years. Another important contributory factor is the growth in remittances which has fuelled the real estate boom. Per capita incomes are over twice the national average.

ƒ Much of the DMDP area is still undeveloped, yet much is also low-lying making it hard Land use to develop. This is evidenced by rocketing land values and very high densities, averaging over 40,000 per km2 5, and much higher in the old city, slums and some new development areas where provision for non-residential uses is very low. Densities are also increasing in many areas with the replacement of detached houses by multi-storied apartments; very few single houses are being constructed. Simultaneously pressure on fringe areas is increasing resulting in the loss of flood retention areas;. Overall between 1988 and 2005, the built up area doubled in the DMA and now accounts for almost half the total land area.

ƒ 2005 estimates are that 30-40% of the city’s population live in slums in poor quality, Urban poverty overcrowded housing largely bereft of urban services and with little security of tenure. and slums Many are located in unsafe areas – along embankments, railway lines and above water bodies. Urban poverty is around 24% indicating that a significant proportion of slum residents are not poor, thereby under-scoring the severity of the housing situation.

ƒ Chronically overloaded network leading to congestion costs running into billions of Transport dollars annually resulting from rising car ownership and population, a poorly developed road network, lack of mass transit and inadequate management of rights of way. As in many cities, traffic is a major public concern.

ƒ Surrounding wet lands have a vital role as flood retention zones, yet they decreased by The almost 60% between 1988 and 2005 (almost certainly more since then). environment ƒ Water pollution caused by untreated domestic and industrial wastes entering water bodies untreated. The rivers are now largely biologically dead and the high levels of pollution present a major challenge to water treatment plants. ƒ Allied to the partial coverage of the piped water system, many households and industries are relying on groundwater; yet groundwater levels are dropping alarmingly. ƒ High levels of air pollution mostly arising from traffic and the brick kilns. ƒ A poor quality urban realm with little provision of open space, even in large new residential developments.

5 Recent estimates make Dhaka the world’s most densely populated city; see Cox, W. (2012) World Urban Areas Population and Density: A 2012 Update, New Geography, October 4, http://www.newgeography.com/content/002808-world-urban-areas- population-and-density-a-2012-update

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Table ES2. The Key Institutional Issues

Category Issue ƒ Lack of transparency, accountability and democratic oversight of RAJUK’s RAJUK and the operations. Urban Planning ƒ Outside pressures on RAJUK and its lack of decision-making and financial System autonomy. ƒ Overlapping planning mandates between RAJUK and LGUs. ƒ Inadequate enforcement of existing plans and regulations despite widespread contraventions by owners, developers and land grabbers. ƒ Outdated planning legislation. ƒ RAJUK’s over–concentration on land development to the detriment of the wider metropolitan area and its population. ƒ Neglect of poor and low income households. ƒ Organisational issues: outdated corporate management and budgeting systems, limited delegation to senior and middle management, inadequate technical resources, under-staffing, low staff morale, poor working environment. ƒ Absence of metropolitan economic development strategy. Sectoral – Regional ƒ Insufficient provsion of planned employment areas. Economic Lack of co-ordination in infrastructure planning, budgeting and implementation. Development ƒ ƒ Chronic under-provision of infrastructure. ƒ Lack of integration between land use and transportation planning. Sectoral - ƒ Absence of co-ordinated approach to identifying, financing and implementing Transportation transport projects. ƒ No safeguarding of ROWs for transportation corridors. ƒ Widespread non-adherence to environmental legislation by RAJUK and Sectoral – developers. Environmental ƒ Lack of enforcement of environmental legislation. Planning and No environmental representation on key committees. management ƒ ƒ Absence of environmental planning expertise within RAJUK. ƒ Disconnect between Land Use and Environmental Clearance Certification processes. ƒ Little co-ordination between key agencies involved with strategic metropolitan Metropolitan planning and management. Governance ƒ Absence of institution for overall metropolitan governance. NB. These issues recurred in other Bangladeshi cities although generally to a lesser extent (partly due to lower growth pressures). BUT there was generally greater concern for city-wide planning and less emphasis on major land developments; board structures were more widely-based; there was greater inter-agency co- ordination and there were some innovative approaches, e.g. a land re-structuring project in Rajshahi.

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4. The International Case Studies (Chapter 10) 10. Three international case studies were carried out as part of the study. The objectives were to examine different models of metropolitan region governance and planning institutions and to assess their applicability to metropolitan Dhaka. The three cities selected were: i) Delhi: a comparable South Asian mega-city with an established democratic system of government which is making progress in relation to establishing and following legally mandated planning frameworks; ii) Jakarta: a South-east Asian mega- city with a well-developed system of administration and an emerging democracy; and ii) London: a major city in a developed country with a sophisticated planning system. Box ES1 summarises the principal general lessons emerging from this review.

Box ES1. Summary of Lessons Learned from the International Case Studies

ƒ The need for much improved metropolitan management is increasingly seen by urban authorities and central governments as essential for sustainable development: making their cities more attractive to potential investors, improving quality of life, reducing the potential impacts from natural disasters, and promoting social inclusiveness. ƒ As a result, more and more cities are striving to establish more effective metropolitan systems and institutions to strengthen the formulation, enforcement and implementation of strategic and local plans. ƒ Generally speaking these institutions are becoming more democratic, more transparent, and with more devolution as lower tier authorities take over local service provision, including urban planning. ƒ Creating more flexible planning systems to enable them to adapt to changing circumstances, and more affordable so as to reduce transaction costs and non-compliance. ƒ Institution arrangements are being created to provide much greater integration between spatial planning, transportation planning and environmental management. ƒ Increasingly too, cities are trying to address resourcing issues so as to provide the funds for the necessary infrastructure. These include: (i) raising municipal revenues; (ii) increasing central government expenditure; and (iii) attracting private sector investment. ƒ Working with the private sector (developers and land owners, formal and informal) to achieve plan objectives, including developing mechanisms to increase private sector contributions, in cash or kind, for infrastructure, low income housing, open space and community facilities. ƒ The use of land development agencies for major or complex land development projects but which are functionally independent of the main planning system. The public sector concentrates on preparing the plans and providing major infrastructure but the private sector undertakes most of the land development.

5. The SRPG Proposals (Chapter 11) 11. Proposals to address the issues listed in Table ES2 are summarized below. They are presented in tabular format following a short recapitulation of the key issues that they seek to address6. The proposals have been formulated based around the following general principles:

• They should build upon recent efforts by RAJUK to improve its performance and operations. • They need to reflect the views of the numerous stakeholders consulted during the course of the study including the views expressed at the national stakeholder workshop in September 2012.

6 The Tables in the main text contain short rationales for their inclusion. These have been omitted from this summary.

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• They must involve the key agencies and organizations responsible for, or involved in, the future development of the Dhaka Metropolitan Region. • They should bring to bear appropriate international experience. • They need to have both short- and longer-term perspectives: - Short-term so that action can be taken quickly. - Longer-term so that they can be consistent with the vision of Bangladesh 2021- a country which is economically productive, socially inclusive and environmentally conscious.

6. Proposals: Strengthening the Urban Planning System and Increasing RAJUK’s Effectiveness and Accountability (Chapter 12) 6.1. Creating a Planning System Fit for a 21st Century Mega-City 12. Dhaka’s current planning system has changed little in the last 50 years. Unlike many other countries in the region, the system has not evolved to address emerging urban management challenges or to incorporate new thinking on and approaches to metropolitan planning. Unless these challenges are accepted, understood and addressed, setting metropolitan Dhaka on a path towards more sustainable development is likely to be difficult if not impossible. In short, strengthening the planning system is crucial to achieving more sustainable development path. In particular it needs to become: (i) more flexible; (ii) more geared to facilitate plan implementation through pro-active planning; and (iii) have a stronger compliance system. Proposals are presented in Table ES3.

Table ES3. Enhancing Plan Implementation and Development Control

Topic Proposal Plan-making ƒ Plan preparation should concentrate on key issues identified at the outset which should be studied at a level of detail appropriate for the type of plan being produced. ƒ Prepare phasing plans showing proposed priority development areas. ƒ Ensure that land use proposals are designed to take account of major ongoing and committed infrastructure, e.g. transit-oriented development. Pro-Active ƒ Introduction of special development areas (e.g. major growth areas, areas subject to high Planning and development/ re-development pressures restricted, cultural heritage areas, new transportation hubs, slum upgrading areas). Managed Urbanisation ƒ Develop and implement innovative approaches to land development: land sharing, land readjustment, land pooling, and private sector involvement. ƒ Formulate appropriate development control regimes for special development areas. Development ƒ Undertake a rigorous review of the need for planning approvals for small-scale developments so as to simplify planning regulations for small developments. Control ƒ Strict time limits should be imposed on the length of time any application should take to be determined. ƒ Building control regulations must be implemented as they are vital to public health and safety Introduce legal provision for sanctions (e.g. demolition/ removal of whole or part Enforcement ƒ structures) and fines to be imposed. and ƒ Establish new parking provision standards for all developments which are commensurate Compliance with established policy and forecast demand. ƒ Involve private sector and communities in inspections of planning, pollution and land grabbing issues.

13. Poor and low income households account for a substantial proportion of the urban population. Their living conditions are mostly extremely basic while lack of secure tenure restricts house

SRPG, Final Report ES6 Halcrow Group Limited/ BCL, December 2012. Strengthening Regional Planning and Governance Executive Summary improvements and self-financed upgrading. Government policy is firmly in favour of assisting these households and is part of RAJUK and NHA’s mandates; addressing this issue is also one of the key objectives of Bangladesh Vision 21. Yet, currently, very little is being done for them – a situation which needs to change if Dhaka’s development is to become socially inclusive. Proposals are presented in Table ES4.

Table ES4. Addressing the Housing Needs of Poor and Low Income Households

Proposals ƒ Implementing upgrading projects for slums on flood free land. ƒ Developing sites and service areas on government land with appropriate standards. ƒ Imposition of quotas on developers to: EITHER allocate some land or plots to low income households OR provide cash contributions OR land elsewhere.

ƒ Review building control regulations that restrict developers’ ability to provide for lower income households. ƒ Implementing upgrading projects for slums on flood free or near flood free land. ƒ Formulate appropriate planning and building controls for these areas. ƒ Developing sites and service areas on government land with appropriate standards. ƒ Imposition of quotas on developers to: EITHER allocate some land or plots to low income households OR provide cash contributions OR land elsewhere.

ƒ Review building control regulations that restrict developers’ ability to provide for lower income households.

14. The worldwide trend is for the planning process to become more democratic through increased public participation and extensive mandatory consultation procedures. The absence of such processes in Bangladesh is a major source of criticism from the public and the media and which, on occasion, leads to social unrest. Table ES5 contains our recommendations to remedy this situation.

Table ES5. Democratizing the Planning Process

Topic Proposals

ƒ Mandatory consultations during plan preparation. ƒ Provision should be made for wide publicity to be given to: - proposals to prepare a plan so as to stimulate citizen contribution to the plan - any draft plan and to the right of citizens to contribute their views to the draft plan. ƒ Formal public hearings should take place in the areas covered by any draft plan. ƒ RAJUK should have a duty to respond in writing to any representations made. Plan Preparation ƒ All RAJUK zonal offices and local authorities should have copies of plans for their areas on public display. ƒ Notification of planning applications in affected communities. Mandatory consultations with communities affected by major proposals. ƒ Residents affected by large scale redevelopment, relocation or upgrading programmes should be involved from the outset in the preparation and implementation of such schemes. ƒ Enable all concerned parties (e.g. developers, land owners, residents, civil society/ NGOs), to make representations on planning applications. ƒ Introduction of provision for appeals and arbitration procedures and hence reduce need for recourse to legal system. Development Control Development ƒ Publication of all appeal and arbitration decisions.

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6.2. Proposals: Strengthening RAJUK to Enable it to Better Fulfil its Mandate 15. A stronger planning system will only be effective if RAJUK (and other planning agencies7) have the resources, the structure and the authority necessary to implement its provisions. Despite recent efforts to improve its performance (e.g. the legal adoption of the DAP and more effective enforcement activity) as well as current proposals for a major increase in staffing and the establishment of 8 zonal offices across the DMDP area, further strengthening is essential.

Table ES6. Proposals: Strengthening RAJUK

Proposals

ƒ Upgraded status of office of Chairman to Secretary and RAJUK Board members to Additional Secretaries. ƒ Stronger and more effective management structure with greater delegation to senior management. ƒ Board members should have relevant technical expertise and where possible be promoted from within RAJUK. ƒ Preparation of a mission statement covering its entire mandate. ƒ Preparation of a full corporate plan and annual business plans to reflect the imminent restructuring of RAJUK. ƒ Increased autonomy in decision-making with respect to (i) reduced ‘improper’ involvement in land development decisions; (ii) recruitment; and (iii) general operational decisions. ƒ Increase financial autonomy to both raise and spend its income through some or all of the following: (i) residential plot sales by auction or at higher than the current cost-plus formula; (ii) fines for planning contraventions; (iii) developer contributions for off-site infrastructure (impact fees). ƒ Expand research department to include monitoring of planning applications, land values, land development trends and financial planning. ƒ Conduct and publicise inventory of land assets (starting with vacant areas); and complete computerization land records ƒ Organisational development, capacity building and training

6.3. Increasing the Accountability and Transparency of RAJUK’s Operations 16. A large proportion of the criticism leveled against RAJUK, by other government agencies, the media, private sector developers, NGOs and academics, relate to its lack of transparency and accountability. Specific criticisms relate to its absence of any outside representation on the RAJUK board, opaque decision-making, and a dearth of publicly available information. These are seen as a major reason for its poor performance, make it open to charges of corruption, and hamper the fulfillment of its mandate. 17. At the same time, RAJUK is seen as being ineffective as a planning agency with limited ambition. Critics point out its failure to carry out many aspects of its mandate, especially in relation to planning and providing for low-income households, low levels of planning enforcement, deviation from plan policies in its own developments. In other words, it is doing a poor job.

18. Unless RAJUK becomes more transparent and accountable it will be unable to regain the trust of its many critics; and if it does not do this, its task will be immeasurably harder. Moreover, proposals to give RAJUK more authority and autonomy over its decision-making and finances are likely to be unacceptable unless the agency is prepared to become more accountable and subject to a greater degree of outside oversight than is currently the case.

7 Whether Development Authorities, City Corporations or municipalities.

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19. The issue of the RAJUK Board structure proved to be one of the most controversial of the entire study. At present, the RAJUK Board, unlike those of the city corporations and municipalities, consists entirely of civil servants appointed by the MPHW with no outside members from sectoral agencies, local authorities, the private sector or civil society. This board structure is the subject of some of the most frequent criticisms from RAJUK’s critics. Reform is considered essential, especially if, as recommended, RAJUK is to be granted more autonomy in its decision-making.

20. The preferred short-term solution is to reconstitute the existing Town Development Committee as an Advisory Committee to oversee and provide guidance to the RAJUK board as currently constituted. Membership would include representatives from key sectoral agencies, constituent local authorities and civil society, e.g. NGOs, private sector. 21. In the longer term, Board membership should be increased by the addition of a representative from each of: DCCS or DCCN, another DMDP LGU, the private sector, a civil society NGO, a professional association and a key sectoral agency (e.g. DTCA, LGED). This would provide a reasonably compact board structure conducive to rapid decision-making. Outside members would be rotated every 2 years. 22. Other alternatives considered were: (i) adopting the model from other DAs, i.e. a broad based board of around 10 members working directly with senior DA management; and (ii) a very large board (30+ members) as per the DTCA. Option (i) could be seen as a retrograde step as it would essentially replicate the pre-1987 board structure and would leave no role for current RAJUK board members. The ‘DTCA’ option is considered to be too unwieldy for effective decision-making. 23. It has to be recognised that this is a difficult, and controversial issue. Further discussion on this issue will therefore be required. The bottom line however is that an element of outside oversight needs to be introduced into RAJUK’s current board structure and that this can best be done in the short-term through the establishment of an Advisory Committee. 24. Reforming the RAJUK board is key to restoring public confidence in RAJUK. Much however could be achieved if RAJUK takes pro-active steps to disseminate information on its operations (Table ES7). Table ES7. Increasing Public Awareness and Transparency

Proposals

ƒ RAJUK should be under a statutory obligation to produce and publish a full and informative annual report and accounts*. ƒ The Chairman of RAJUK should hold regular press conferences to explain what RAJUK is doing and answer questions on same. ƒ RAJUK should hold at least one meeting every year with coalitions of organisations concerned with urban development in Dhaka. ƒ RAJUK should regularly publish non-commercially sensitive minutes of board meetings, decisions on planning decisions, reports. ƒ Publication of details of planning applications received, approved and rejected. ƒ An office – the equivalent of an Ombudsman – should be established to deal with grievances complaints about RAJUK’s activities. An annual report should be prepared (complaints received and how dealt with).

ƒ Establish user friendly front office to direct people to appropriate departments. * Since the start SRPG, an annual report, the first for 15 years, has been published.

25. Other frequent criticisms of RAJUK relate to its inconsistent approach to existing plan policies, its failure to adopt a holistic approach in its own projects, the lack of transparency in its land transactions,

SRPG, Final Report ES9 Halcrow Group Limited/ BCL, December 2012. Strengthening Regional Planning and Governance Executive Summary and, despite recent improvements, the inadequacy of its enforcement operations. Public confidence, and that of other stakeholders, could be improved if it addressed these issues. Table ES8. Improving Confidence in RAJUK’s Planning and Development Operations

Proposals

ƒ Undertake more activities related to the DMDP area as a whole rather than concentrating on its land development operations. ƒ Similarly it should pay more regard to the needs of lower-income groups. ƒ Ensure that land development operations are more holistic and include adequate open space, employment areas, and do not contravene plan policies, especially related to the environment ƒ RAJUK land transactions by RAJUK connection with its development operations need to be put on a transparent and clear legal basis. ƒ A separate development control regime should be established to deal with RAJUK’s own land development projects so as to ensure adherence to plan policies. ƒ RAJUK should adhere to all applicable environmental legislation ƒ Establish a cell dedicated to enforcement against illegal land filling / land grabbing operations, AND publicise. ƒ Reduce delays in returning deposits to unsuccessful applicants.

6.4. Improving Integrity and Reducing Corruption 26. RAJUK has been subject to numerous accusations on this front and on several occasions RAJUK officers have been called to account by the High Court. The, largely anecdotal, evidence is that senior RAJUK staff are frequently subject to pressure from ‘influential’ persons to allocate plots in contravention of the eligibility rules or to approve planning applications which deviate from approved plans8. But it would be disingenuous to believe that this is an issue for RAJUK alone9. RAJUK could and should take action to curb low level corruption relating to development approvals and compliance issues. This could be achieved by establishing institutional models which: (i) minimise gate- keeping opportunities; (ii) support increased professionalism and job satisfaction within the ranks of operational personnel; and (iii) exclude access to ‘facilitators’ by introducing procedures which are sufficiently ’user-friendly’ as not to require them. Such measures are implicit in the options set out previously to streamline the development control system. 27. RAJUK can also adopt a stronger response to pressure from outside, e.g. by maintaining a register of all instances of attempts to influence its decision-making (all names would be kept confidential). But it is hard to see how such a stance can be effective unless there are stronger signals from higher levels of government that this behaviour will no longer be tolerated. 6.5. The Proposed Town Improvement (Amendment) Act (Chapter 13) Many of the proposals presented in the preceding Tables will require legislative changes. The proposed Urban and Regional Planning Act (URPA) addresses some of these issues, notably in providing for increased flexibility in the planning system and introducing greater public participation. However we would argue that the URPA does not go far enough. URPA is framed as an enabling Act to be supported by detailed rules and regulations that have yet to be written; RAJUK is largely excluded from its provisions. RAJUK management also considers that the existing TIA needs to be revised to address already acknowledged institutional and operational weaknesses. Accordingly, a Town Improvement

8 Susceptibility of decision-making staff to outside influence was also revealed in the Workplace Perception component of the SRPG Training Needs Analysis. 9 As has been well publicised, Bangladesh ranks very low on Transparency International’s Corruption Perception Index.

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(Amendment) Act has been prepared to provide the principal legal umbrella for the SRPG proposals. Table ES9 summarises the TI(A) A’s main provisions10.

Table ES9. Selected Contents of the Proposed TI(Amendment) Act

# Summary Chapter Contents II Composition of the RAJUK board; duties and responsibilities of board members and chief officers; requirements to hold public meetings, press conferences and produce annual reports; establishment of an Internal Supervision office to address grievances. III Types of plan; provisions for public consultation and participation; review of plans; responsibilities for making plans; supplementary planning statements. IV Comprehensive provisions related to development control – definition of development, statutory consultations, approval process and time limits; planning conditions; development obligations (contributions); provisions for declaration of Special Development Areas; procedures for large projects. V Land Readjustment: provisions, processes and regulations VI Provisions for upgrading and sites and service schemes for low income areas. VII Provisions for Town Development and Large and Specialised Project Committees VIII Compliance procedures, including provision for fines where contraventions have occurred. IX Provision for payment of compensation in certain cases where permission is refused X Appeals procedures; composition of appeals committee.

28. The TI(A)A is explicitly focussed on RAJUK. Nevertheless, many of its provisions could be relatively easily adapted to provide rules and regulations for the URPA or be made applicable to the Development Authorities in Chittagong, Khulna and Rajshahi.

7. Proposals to Address Sectoral Issues (Chapter 14) 29. RAJUK is not the only agency with responsibility for the development of the metropolitan region; nor can urban planning solve all of Dhaka problems. Of comparable importance are the development of Dhaka’s economy, its transportation network and an effective system of environmental planning and management. This section contains proposals to strengthen these sectors focussing on their interface with urban planning issues.

7.1 Economic Planning and Support to Business 30. Dhaka’s economy currently accounts for 30% of national GDP – it is the engine of the national economy. Yet its very success is under threat due to a lack of economic planning, chronic under- investment in infrastructure, and high externalities. The development of modern economies is very dependent on cities having competitive economies and efficiently managed public services. Yet Dhaka has no unifying authority with responsibility for overseeing or guiding the economic development of the city. The current Master Plan and other sector plans give very little consideration to economic development matters. There is little reliable data and information on the DMR’s economy – information which is necessary to assist enterprises to make business development plans for future investment and expansion. Table ES10 contains proposals to address these issues.

10 The TI(A)A is presented in full in Volume 2 together with a commentary describing the proposed changes and their rationale.

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Table ES10. Economic Planning and Support to Business

Topic Proposals ƒ Establish a regional economic development committee for the DMR, with government and private sector members, to provide an ongoing forum to facilitate mutually beneficial policy development and troubleshoot problems as they arise. ƒ Ensure that the upcoming DMDP review includes a thorough assessment of economic Economic development issues. Representatives from the real estate and industrial sectors should be Planning key consultees. ƒ Prepare an economic development plan.to provide the basis for shaping the form and location of investment for development projects in the DMR. ƒ Government should support a program of activities that will facilitate city cluster development for key DMR industries, e.g. garments, logistics and knowledge industries. Support ƒ Establish a one-stop shop economic development office for the DMR to provide advice to services investors and developers, and to facilitate the necessary permits. to ƒ Compile data on economic indicators and forecasts, spatial development trends, land and business rental values in the DMR. ƒ Establish a website to publicise this information.

7.2 Financial Management and Infrastructure 31. The integration of financial arrangements for the funding of development projects and recurrent expenditures is recognised as financial governance good practice. Yet, this is largely absent in the DMR. The result is unnecessary duplication, under-resourcing, waste, and poor leveraging of limited public funds to support the management and development of urban services in DMR. At the same time, there is an urgent need to increase the finance available for infrastructure development in Dhaka11. Without this finance, the proposed reforms to the planning system and governance institutions will only have a limited impact. Table ES11 contains the SRPG proposals on these topics. Table ES11. Financial Management and Infrastructure Development

Topic Proposals ƒ Establish an Annual Budget Development Forum at which draft annual development Financial budgets of the main development agencies would be presented and made available to all Planning and other agencies. Would be hosted by Planning Commission. Budgeting ƒ Preparation of Spatial Development Budget for DMR (and then other city regions). ƒ Integration of Annual Development and Revenue Budgets so as to ensure that funds are available to operate and maintain new projects. ƒ Preparation of costed Priority Infrastructure Plan identifying projects and potential financing. ƒ Develop 3-year budgets and rollover of funds into future financial years. Modernising RAJUK conduct an audit of assets and inventories (including land, infrastructure, and Accounting ƒ buildings). Practices ƒ Once completed, it should introduce an asset based accounting system whereby all recorded assets are depreciated/ inflated annually. Increasing ƒ The procedure for setting the sale price of residential plot should be revised so as to better finance for approximate the market price. Infrastructure ƒ Sale of residential land through auctions (as currently occurs with commercial plots). and other Introduction of development contributions and impact fees. services ƒ ƒ RAJUK to engage in PPP projects once an asset based accounting system is introduced.

11 SRPG estimates suggest that Dhaka has a backlog of over $20 billion in infrastructure investment to bring its urban infrastructure and transportation services to a level competitive with China.

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7.3 Transportation 32. Dhaka’s transportation system is chaotic, poorly managed and under-funded. It is failing to keep up with existing demand and conditions are worsening due to increasing population, economic growth and rising car ownership. To a large extent, cities develop in parallel to their transportation systems - where transportation facilities exist, development tends to follow. Transport networks are therefore crucial to the implementation of any land use plan. Urgent action needs to be taken if a more sustainable transportation system is to emerge, without which mobility and travel conditions across the metropolitan area will continue to deteriorate as development and rising car ownership continue unabated. Table ES12 contains proposals to address the following issues: • The inadequate funding for transportation - no transportation agency can provide facilities if it does not have the resources. • the lack of integration between land use and transportation planning, especially when major transport projects are being developed. • the division of responsibilities for building roads in the DMR: RHD, LGED, RAJUK and DCC all have road projects in the DMR yet each agency develops its own projects thus hampering an integrated approach to transport system development; there is little forward planning and budgeting. • increasing congestion due to illegal on-street parking resulting from inadequate consideration of traffic impact and parking issues in the planning approval process for large buildings. • the safeguarding of Rights of Way (ROWs) for primary and secondary roads and MRT alignments which would avoid expensive retro-fitting and high land acquisition costs. • the absence of investment in the secondary road network. Table ES12. Proposals: Transportation

Integration of Land Use and Transportation Planning ƒ Close involvement of DTCA with DMDP review ƒ Ensure that ongoing and committed projects are incorporated into revised DMDP. ƒ Preparation of Action Area plans for designated growth areas. ƒ Establishing road construction co-ordinating committee with RHD, LGED, RAJUK and DCC. Plan and Project Implementation ƒ Safeguarding of ROWs. ƒ Establishment of secondary road networks through land re-structuring measures and negotiations with land owners. ƒ Ongoing liaison between DTCA and RAJUK during planning application process. ƒ Preparation of traffic impact assessments (including parking issues) for major applications. ƒ Enforcement of parking standards. ƒ Review of parking standards. ƒ Obtain contributions from developers for off-site road and traffic management improvements. ƒ Stronger sanctions against ROW encroachments and parking provision contraventions. Strengthening Transportation Planning ƒ Reduce political intervention in transport planning. ƒ Preparation of rolling 3-5 year transport investment programmes consistent with land development projects and designated growth areas. ƒ Established single highway inventory and database for DMR. ƒ Produce consolidated manual on highway design standards. ƒ Preparation of STP implementation monitoring reports (DTCA).

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7.4 Environmental Planning and Management 33. The weakness of environmental planning and management is one of the main reasons why Dhaka’s environment is fast degrading: increasing water pollution resulting in biologically dead rivers (which is having a knock-on impact on future water supply); increasing flood risk due to loss of wetlands; worsening air pollution from brickworks and traffic; and a poor quality urban realm where there has been insufficient attention paid to the provision and safeguarding of open space. At present RAJUK has negligible environmental planning capability and has given little attention to environmental issues in its operations. On the other hand, the Department of Environment (DOE) is primarily concerned with overall policy, environmental monitoring and pollution control. If this situation is to be reversed, environmental planning and management issues need to be mainstreamed into RAJUK’s operations. Table ES13 sets out ways in which this could be done. Table ES13. Mainstreaming Environmental Planning and Management

Ensuring Compliance with Existing Environmental Laws and Regulations ƒ Pass an internal resolution or memorandum (from Chairman or MHPW) to compel RAJUK to comply with the requirements of the Environmental Conservation Act (ECA) regarding the conduct of environmental assessment (EA), preparation of EIAs and obtaining environmental clearance certificate (ECC) prior to project execution. ƒ DOE to have permanent representative on: (i) all key development committees; (ii) the Steering Group for the DMDP review; (iii) the DAP review process. Mainstreaming of Environmental Issues in Plan Preparation ƒ Prior to plan preparation undertake an Initial Environmental Examination (IEE) in full consultation with environmental agencies and relevant stakeholders. The IEE would identify the most important environmental issues which would then be subject to detailed analysis during plan formulation. ƒ At draft final stage, plan proponents should be obligated to demonstrate how the IEE issues have been addressed. ƒ Undertake SEA when deemed necessary but without a legal requirement. Mainstreaming of Environmental Issues in Plan Implementation ƒ A review of the current EEC/ LUC approval system should be undertaken to provide greater integration and to ensure that environmental issues are given due consideration in all applications for major projects. ƒ Requirements for EIA for major projects must be enforced. ƒ Inclusion of business/ economic cases in planning applications where these are controversial, e.g. have adverse environmental impacts. ƒ Promote engagement of stakeholders in during project environmental assessment, pollution prevention, environmental improvement activities thus raising awareness and encouraging environmental watch. ƒ RAJUK and DOE to develop a joint approach to enforcement with District Commissioners and BWDB Developing the Knowledge Base for Environmental Planning and Management

ƒ Establish cell within RAJUK to focus on environmental planning and management issues in the DMR. ƒ The system would provide data required for the revision of plans and policies, and the planning approval process. Data would come from RAJUK, DoE, BWDB and others. ƒ DOE should maintain and publish data on their activities regarding pollution monitoring and enforcement operations ƒ Create and maintain M&E database to monitor/ evaluate environmental performance across the DMR Key inputs will include data on contraventions, enforcement status, cases and reports, and outcomes. ƒ Formulate dissemination strategy with LGUs and others to disseminate this information and thus respond to the public’s increasing environmental concerns. ƒ Build the skills and capacity through staff training, e.g., seminars, courses and “learning-by-doing”; and by devising tools, setting up of systems & equipping with the needed software/ hardware.

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8. The Future Institutional Structure for Metropolitan Planning and Governance (Chapter 15) 34. Defining a future institutional framework for the future planning and management of Metropolitan Dhaka will necessitate decisions on the following largely discrete, albeit inter-linked, issues:

• Institutional Responsibilities for urban planning • The future role of RAJUK. • The institutional arrangements for metropolitan level strategic planning and governance. 35. Unlike many of the proposals contained in preceding sections, the above issues give rise to, sometimes very different, alternatives. Moreover these issues are complex and controversial. Throughout the study, they elicited more discussion and debate than most of the proposals presented earlier. What is abundantly clear is that these are difficult issues to resolve and that a consensus will not be easy to reach given the very differing viewpoints of many consultees. Intensive discussions will be required, much of it at the higher levels of the Government, but also with outside stakeholders. 36. Any institutional restructuring will require legislation, be politically contentious and lead to upheavals for many civil servants; it will also take time to implement and have financial implications. Any new institutional structures would also have to overcome the systemic problems which affect many GOB departments, not just RAJUK – weak technical resources, sub-optimal management, lack of funds, and pressure from outside.

37. It is therefore considered unrealistic for this study to make firm recommendations as to major institutional re-structuring related to metropolitan governance. But at the same time, institutional re-structuring will be necessary in coming years if Dhaka, and the country, is to rise to the challenges of continuing urbanisation and its effective management. 38. Accordingly, for each of these major institutional issues, the principal alternatives are presented along with summary assessments of the main advantages and disadvantages. It is hoped that these alternatives be further explored and refined by the institutional component of the upcoming DMDP review. 8.1. Institutional Responsibilities for Urban Planning 39. At present, legislation provides for both RAJUK and the DMDP LGUs (city corporations and pourshavas) to undertake plan-making and development control activities12. In practice however, the great majority of planning is undertaken by the DAs owing to their much greater expertise and resource levels built up over many years. DCC(N) and DCC(S) have limited involvement in planning services owing to RAJUK’s mandate; conversely, other DMDP LGUs, where RAJUK is far less involved, process applications, give approvals and undertake some enforcement. 40. The overlapping planning mandates creates a constant source of friction between the DAs and the LGUs who believe their democratic mandate should give them responsibility for local planning. RAJUK (and other DAs), on the other hand, notwithstanding their current very limited involvement outside the main CC areas, strongly believe that they should be the sole planning authority for their areas. In support of this argument, RAJUK highlight the lack of significant planning capacity in the LGUs13 and, more importantly, to the imminent establishment of eight zonal offices across the DMDP area. This is a very important step as it will make planning services more accessible to the local population.

12 This duplication also occurs in other cities where there are City Development Authorities, i.e. Chittagong, Khulna and Rajshahi. 13 Few LGUs have more than one planner, and many have none.

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41. Any short term transfer of planning responsibilities from RAJUK to the LGUs is infeasible because: (i) the LGUs do not have the capacity, and will not until they can increase their revenue base to fund these responsibilities; (ii) it would put into question the role of RAJUK’s zonal offices - which do represent an important decentralisation initiative; and (iii) it would risk creating an extended period of confusion and uncertainty. On the other hand, current GOB initiatives to strengthen local government, the Vision 2021 objective of increasing democratic involvement, and worldwide trends all suggest that the longer-term solution has to be for DMDP LGUs to assume responsibility for local planning services. 42. The issue therefore becomes one of achieving a smooth and gradual transition of local planning functions to the LGUs consistent with the increased capacity of these authorities to carry out these tasks. Table ES14 sets out how this gradual transfer could occur.RAJUK as the strategic planning authority would retain responsibility for: (i) structure plan preparation; (ii) large applications with a strategic impact; (iii) applications involving deviations from the structure plan; and (iv) the power to declare special development areas and the planning of these.

Table ES14. Proposed Phasing for Transfer of Local Planning Powers to Local Authorities

Institutional Change Phase Indicative Timings*

ƒ Creation of 8 RAJUK Local Planning Offices throughout the City staffed by By 2015 qualified and competent professionals 1

ƒ Local authorities to establish local area planning committees to oversee the 8 By 2017 RAJUK Local Planning Offices in relation to all planning and development 2 applications within each constituent area.

ƒ RAJUK to second planning staff from 8 Local Planning Offices to local By 2018 government while continuing to fund their salaries and operations. 3

ƒ RAJUK to surrender development control functions for small applications to 2019 local government but to maintain technical support and funding. 4

ƒ RAJUK to surrender local area plan preparation functions to local government. 5 2021

ƒ Urban districts to take over the staff and resources of RAJUK local offices. 6 2021 * Will depend on: (i) the time needed to fully establish the zonal offices; and (ii) LGUs having the necessary financial resources. 8.2. The Future Role of RAJUK 43. One of the most intense criticisms levelled at RAJUK is the conflict of interest involved in dual responsibilities for both land development and land use planning. RAJUK acts as both ‘system regulator’ and ‘system user’ - as regulatory plan-maker and regulatory plan-user, as arbitrator and applicant, as planner and developer. This dual responsibility is seen as:

• facilitating RAJUK’s contravention of its own planning policies - both for its own developments and in granting planning permission to others. Both points are frequently made in reports and the media as well as by developers. • increasing its susceptibility to corruption. • causing RAJUK to neglect its planning functions as it concentrates on more lucrative land development, to the detriment of Dhaka’s environment, traffic and housing all of which affect a much greater proportion of the population than do its developments.

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44. The principal alternatives are shown, along with their main advantages and disadvantages, in Table ES15.

Table ES15. Alternatives for the Future Role of RAJUK

Alternative Advantages Disadvantages 1. RAJUK retains both its Strategic Level Planning and Land Development Functions ƒ RAJUK to split into separate ƒ This addresses the key matter of ƒ Completely contingent upon ‘planning’ and ‘implementation’ separation of powers and could RAJUK being able to establish agencies; both to continue to improve operational policy and clear separation between its serve under MHPW. oversight. planning and land development activities. ƒ RAJUK board to become more ƒ Requires the least institutional re- broad-based. structuring and would thus have ƒ May be hard to properly ƒ Other safeguards to include: little impact on other ministries. establish separate planning and decentralized decision-making land development divisions with ƒ Minimises potential disruption to within RAJUK, a more broad- current operations. pressure to deviate from based board structure, special planning policies still likely. planning procedures for RAJUK ƒ Recognises current RAJUK efforts to improve its performance. ƒ Should reduce, but unlikely to developments. eliminate, distrust of public and other agencies. 2. RAJUK to shed the overall spatial planning function for Metro-Dhaka and become a Specialised Area Development Agency ƒ RAJUK would continue to be part ƒ Clearly separates planning and ƒ Need to establish new strategic of MHPW. land development functions and planning organization. reduces, compared to Alternative 1, ƒ RAJUK to manage the planning, ƒ Disruption to strategic planning design and construction of major potential for continuing conflicts of and development control while developments within the DMR interest. new organization is established. area as a specialised land RAJUK retains the functions that it ƒ ƒ Would divert attention away development agency. has carried out most effectively from implementing short-term over the years. No other agency ƒ RAJUK would no longer be proposals designed to start involved with planning outside the has this experience. addressing Dhaka’s problems. boundaries of these major land Allows RAJUK management to ƒ ƒ RAJUK, despite its manifest parcels. concentrate exclusively on land problems, has the best development providing greater resourced development control clarity to their mission and strategy. system in the DMR. Enables strategic planning ƒ ƒ Planning services currently functions to be ‘rejuvenated’ under subsidized by RAJUK’s land a new organization. development operations hence need for new funding source. 3. RAJUK to shed its land development role and deal solely with the strategic metropolitan planning ƒ RAJUK to manage structure ƒ Clearly separates planning and ƒ RAJUK has performed poorly planning, regional planning and land development functions. as a planning authority in recent urban development planning years. ƒ RAJUK has been the DMDP throughout the DMR. planning authority for many years ƒ Will need a major change ƒ RAJUK to be responsible for and has experience in managing amongst senior staff who are developing innovative plan preparation, development accustomed to the focus on mechanisms (land re-adjustment, control and enforcement. land development. land consolidation, land sharing) in ƒ Local authorities generally ƒ New institution/ arrangements partnership with land owners and recognise strategic planning will be required for land developers. mandate. Some are also beginning development activities but this ƒ RAJUK to be responsible for to apply the DAP. is likely to be easier than Alt. 2. upgrading and sites and services ƒ Easier than Alt. 2 to gradually schemes for low income devolve local planning powers. households. ƒ Local planning functions would be devolved.

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45. If the decision is taken to split RAJUK, new institutional arrangements will need to be made for either land development or planning functions. Alternatives are presented in Table ES16.

Table ES16. Alternative Institutional Arrangements if RAJUK is split

Alternative Advantages Disadvantages Alternatives 2. RAJUK remains land development agency but is no longer planning authority DCC ƒ DCC is a large organization with extensive ƒ Recent split has almost certainly made urban management functions. this alternative unrealistic. ƒ Until its split, DCC was responsible for ƒ Would be strongly opposed by other around half the DMDP population. DMDP LGUs. MHPW ƒ Current supervising Ministry of RAJUK. ƒ Not directly involved in local government and little experience of ƒ Also responsible for UDD which has substantial urban plan preparation local government issues and experience. organizations. ƒ UDD is little involved in plan implementation. MLGRD ƒ Responsible for local government. ƒ Would require assent of MPHW. Inter- ministerial conflicts likely. ƒ Currently has projects to strengthen planning functions in municipalities an city ƒ Little experience of urban planning. organizations. A reconstituted ƒ DTCA already has a mandate to co-ordinate ƒ DTCA falls under MOC; hence inter- DTCA with transportation in the Dhaka region as well ministerial conflicts likely. planning as as some planning powers. ƒ DTCA has only just been established well as ƒ Responsibilities include implementation of and does not have a proven track transportation Sustainable Transport Plan which has been record. responsibilities officially adopted. . ƒ DTCA’s jurisdiction covers a much ƒ This alternative would facilitate greater larger area than RAJUK. This could integration of planning and transportation reduce resources in DMDP area where which would be beneficial. action is most needed. Planning Com- ƒ Already has physical planning cell. ƒ Not directly involved in local mission government. ƒ Used to co-ordinating between ministries and is well aware of issues having prepared ƒ Little experience of local government 6th FYP. issues and organizations or urban planning matters. Alternative 3. Establishment of New Land Development Agency; RAJUK remains planning authority

ƒ Easiest to achieve with few institutional ƒ No major disadvantage. Some repercussions. institutional reorganisation would be Could be combined with NHA which is also necessary but this would be within A new, ƒ in MHPW and has housing/ land same ministry and both agencies are separate land development responsibilities. already involved in land/ housing development development. agency ƒ Combination could therefore create one responsible to agency with greater access to land, finance MHPW with a greater pro-poor focus. . ƒ Could be cost savings due to rationalisation of operations. Located in ƒ None apart from possibly giving another ƒ Institutionally much more complex and another agency the chance to ‘do better’. no other agencies are obvious institution candidates.

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46. The decision as to which of the above alternatives, which have very different institutional consequences, should be adopted is not one that can be taken at this time. It will require high level discussions between RAJUK and the other concerned key government ministries, notably MHPW, MLGRD, MOC and the Planning Commission. This is however not considered problematic as any radical change in RAJUK’s role needs to be seen as a longer-term objective. 47. As previously mentioned, institutional re-structuring will be a protracted and often contentious process: it will need legislation; it is likely to have financial implications; and it will be disruptive to both staff and the services provided (most of whom would remain the same); a decisions as to who would responsible for the function split off from RAJUK would have to be taken. Moreover, the ‘new’ structure would still have to address the same generic institutional problems – lack of technical resources, inadequate funding, ‘outside’ pressures, weak legislation. Institutional reshuffling, however radical, will not, on its own, lead to the resolution of Dhaka’s urban development problems. Splitting RAJUK at this stage would almost certainly create a policy hiatus and would delay the introduction of the legislative changes, policy measures and other proposals described previously – and these are needed now. 48. On this basis, the SRPG team strongly believe that, in the short term, efforts should concentrate on strengthening RAJUK and support its recent efforts to improve its performance. 49. If however RAJUK fails to perform effectively in coming years, it will need to be split. In which case, Alternative 2, creating a new strategic planning agency under new management, appears preferable. RAJUK would retain its ‘core’ land development activities (possibly amalgamated with the NHA) and a new strategic planning authority could provide a reinvigoration of activities on this front. This alternative would make it easier to establish an effective overall Metropolitan Development Authority for Dhaka. 8.3. The Establishment of a Metropolitan Development Authority (MDA) 50. It has been evident throughout this report that urban planning, even with enhanced legislation and a greater commitment to its implementation and enforcement cannot be expected to ‘solve’ Dhaka’s problems on its own. Future development has to be guided more effectively towards those areas where growth is to be encouraged; and these growth areas need to be developed in a planned way. This can only realistically be done if transportation plans and projects are prepared and implemented in accordance with land use policies. Likewise, land use plans need to be formulated within a context of sound environmental planning whilst simultaneously addressing the needs of Dhaka’s economy. Similar levels of integration are required for plan implementation through development control and pro-active planning. 51. The absence of the required levels of integration and inter-agency co-operation is a major contributory factor to the problems that Dhaka is now facing. If Dhaka’s future development is to become more sustainable, mechanisms and institutional structures have to be established to ensure that this integration takes place. 52. Generally speaking, most developed country cities and many in developing countries have or are moving towards combining metropolitan planning and development functions within a single authority. Core to these reforms is a Metropolitan Development Authority (MDA) which will have overall responsibility for the planning and coordination of all metropolitan wide development activities. There seems to be no compelling reason why Dhaka should not also aim to establish such an authority: it is the capital city, it is a mega-city which continues to grow fast, it is the economic hub of the country, and many of its current problems need metropolitan solutions. The creation of an MDA for Dhaka is also entirely consistent with Bangladesh Vision 2021.

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53. Metropolitan governance reform is difficult and it can take many years for reforms to be bedded down and become normal routine. In Dhaka, this is likely to be particularly difficult due to the weakness of current institutions and the current low level of inter-agency co-ordination and co-operation. In these circumstances, the preferred approach is not one of ‘instant’ re-structuring but of a sequence of stages leading to the establishment of a full Metropolitan Development Authority (Table ES17). Figure ES17. Stages in the Establishment of a Metropolitan Development Authority

Stage Principal Responsibilities 1: Annual infrastructure ƒ Knowledge sharing between sectoral agencies. planning and budgeting forums ƒ Co-ordination of infrastructure ADPs for DMR. (Planning Commission) ƒ Identification of inter-agency co-ordination and implementation issues. ƒ Build greater trust between infrastructure service delivery agencies in the region. 2: Establish a DMR Development and Infrastructure ƒ Sharing information on ongoing and committed projects. Coordination Committee: ƒ Identify shared areas of concern and bottlenecks. RAJUK, DTCB, DOE, and ƒ Formulate procedures to streamline day to day operations, e.g. planning other key DMR service delivery approvals. agencies, e.g. RHD, LGED, ƒ Identify areas where actions by other agencies could: (i) facilitate plan/ WASA. project execution; (ii) enhance potential benefits. (Planning Commission) ƒ Prepare joint funding proposals for Planning Commission. ƒ Integrate planning and implementation of medium term major proposals. 3: Expand Committee ƒ Formulate investment priorities and prepare joint funding proposals. responsibilities to include ƒ Identify and resolve any conflicts between DMDP and STP. consideration of medium and ƒ Develop longer term vision of future metropolitan development policies longer term planning and and associated major infrastructure needs. economic development issues. ƒ Trust building and sharing information between public and private ‘New’ members would include sectors. private sector representatives. ƒ Promoting a range of economic development opportunities in the region by providing a single point of contact for potential investors. ƒ Formulate measures to: improve business administration services, streamlined planning applications, promotional and marketing activities. ƒ Develop options for greater private sector involvement in infrastructure provision, environmental management, and low income housing. ƒ Establish working group to review alternative MDA structures and recommend the preferred approach for the DMR. 4: Establish and gradually ƒ This is an institutional change. There would be no major increase in expand secretariat by technical responsibilities. transferring strategic planning ƒ Continues the gradualist strategy with timing dependent on functions of DTCA and RAJUK; effectiveness of operations at the time. strengthen by establishing ƒ Second stage transfer could include staff involved with handling major economic development and planning applications and who thus will need closer co-ordination with environmental units. other agencies. 5: Introduce direct democratic ƒ To provide guidance and oversight through membership which includes accountability by establishing local municipalities, private sector, civil society. governing board/ council ƒ To help resolve controversial issues through discussion, negotiation and mediation. 6: Establishment of ƒ Structure and transport planning. Metropolitan Development ƒ Implementation of major transportation and land development projects. Authority with full range of ƒ Higher level traffic management and public transport regulatory metropolitan planning and functions. development functions and full Economic development activities including promotional. transfer of staff to new ƒ authority. ƒ Regional services such as land fill sites. ƒ Research, monitoring and evaluation: planning, economic, environment.

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54. Table ES18 sets out alternatives for the administrative location of the MDA.

Table ES18. Alternatives for the Administrative Location of the MDA

Alternative Advantages Disadvantages 1: RAJUK under ƒ RAJUK is the current DMDP planning ƒ Current low credibility of RAJUK. MPHW authority. ƒ Unlikely to be acceptable to other ƒ RAJUK has mandate to co-ordinate ministries activities of sectoral agencies 2: DTCA under ƒ DTCA has the mandate to co-ordinate ƒ Only has mandate for transport and has MOC transportation planning and been set up with this in mind. implement the STP. ƒ Responsible for a much larger area ƒ DTCA executive reports to a large, (which might be an advantage in the broad-based, Board. future) but short-term emphasis has to be on DMDP area. ƒ Unlikely to be acceptable to other ministries 3: MLGRD ƒ Has responsibility for local ƒ Little experience of urban management government, including city and planning issues corporations and municipalities ƒ Unlikely to be acceptable to other ministries. 4: Planning ƒ Used to co-ordinating ministries ƒ Inexperienced in urban management. Commission during ADP process. ƒ Unlikely to be acceptable to other ƒ Already has a physical planning wing. ministries. ƒ May not have the authority to impose plan policies on ministries and LGUs. 5: A new Ministry ƒ MDA would be established at a high ƒ Inter-ministerial conflicts would be likely. for Dhaka government level. 6: ‘Dhaka’ cell ƒ MDA is established at the highest ƒ Could cause conflict with line ministries. within Prime possible level. Minister’s Office 7: Inter-Ministerial ƒ Would ensure joint and equal role for ƒ Would require high level consensus from Board of all key ministries. all ministries. Governors

55. Given the different agendas and interests of the main ministries involved (MHPW, MOC and MLGRD), it is considered that assigning over-arching responsibility to one of these will be resisted making the necessary co-ordination and commitment hard to achieve; alternatives 1, 2 and 3 are thus unlikely to be feasible. Establishing the MDA within the Ministry of Planning (alternative 4) has its attractions given the Planning Commission’s experience in dealing with line ministries and its involvement in the proposed MDICC. However this alternative would change its relative influence vis-a-vis the other ministries – which may also be resisted. Furthermore, the MDA needs to be established at a high level and not within a wing of the Planning Commission. 56. Of the other alternative, 5 and 6 are both proposed in the Draft National Urban Policy while 7 was suggested by DTCA. All three of these alternatives would be justified by Dhaka’s capital city status, its national economic importance and the urgent need to address its critical developmental problems. These alternatives would also confirm GOB’s determination to radically improve the quality of life of Dhaka’s residents. Likely criticisms of creating a Dhaka Ministry from the other large major urban areas could be countered by adding to its remit and naming it as a Ministry of Urban Development. This alternative could

SRPG, Final Report ES21 Halcrow Group Limited/ BCL, December 2012. Strengthening Regional Planning and Governance Executive Summary however lead to conflicts with other ministries. Creating a special department within the Prime Minister’s office would establish that the MDA at the highest possible level within GOB but several consultees suggested that this alternative might be susceptible to excessive political influence. Creating an inter- ministerial board of directors could overcome these objections but would need a commitment from each ministry to actively co-operate and participate fully in Dhaka’s governance. 57. This is another issue that cannot be resolved in this Report and needs to be the subject of high level discussions, over an extended period, within GOB. Instead, as with other major institutional issues, the short term emphasis needs to be on: (i) securing a high level commitment to tackling Dhaka’s problems; (ii) changing institutional and management cultures; (iii) promoting inter-agency co-operation; and (iv) initiating substantial HRD/ HRM programmes.

8.4. Enhancing Inter-Agency Co-ordination and Co-operation 58. Throughout the consultations undertaken for this study, whether with RAJUK, other ministries or outside organisations, and whether in individual interviews, seminars or at the September workshop, the most frequently recurring theme was the absence of co-ordination and co-operation between the agencies involved in metropolitan Dhaka’s governance. The absence of co-ordination manifests itself in several ways: no integration of land use and transportation planning, lack of knowledge about other agencies’ activities, a low level of information sharing (both within and between government departments), a piecemeal approach to project formulation and funding, and project implementation issues. Table ES19 presents six proposals which the team considers would do most to improve co-ordination.

Table ES19. Enhancing Inter-agency Co-ordination and Co-operation

Proposal Key Agencies Functions/ Comments Annual DMR ADP Planning ƒ Share information on large ongoing and upcoming development Planning and Commission, RAJUK, projects, identify co-ordination issues/ bottlenecks/ synergies with Budgeting Forum DTCA, DMDP LGUs, other agency activities. others responsible for ƒ Stage 1 of MDA establishment process. major DMR projects. Metropolitan Planning ƒ As above + but more emphasis on: Development and Commission, + as - Identification and prioritisation of future projects. Infrastructure above + DOE + private - Preparation of joint funding proposals. Committee (initially sector + civil society. annual, then biannual) - Formation of committees to deal with specific problems/ projects. ƒ Stage 2 of MDA establishment Transportation Co- DTCA, RAJUK, RHD, ƒ Information sharing, progress on projects, co-ordination issues, ordination Committee LGED, DCC bottlenecks for ongoing projects involving transportation. (quarterly) ƒ Formulate mechanisms to safeguard transport ROWs. Enforcement RAJUK, DOE, BIWTA. ƒ Enforcement issues. Committee and Task BWDB, LGU planners. ƒ Joint approach to planning contraventions and illegal land Force occupation. ƒ To send clear signal to developers and land grabbers that planning contraventions will not be allowed and will be punished. Working group to RAJUK, DOE ƒ Crucial to: (i) streamlining LUC/ECC procedures; (ii) ensuring integrate mainstreaming of environmental issues into this process; and (iii) environmental issues demonstrating RAJUK’s commitment to take proper account of into urban planning environmental issues. Working group to co- RAJUK, DCC and ƒ Would start with initial meeting with all LGU planners in DMR. ordinate RAJUK/ LGU other DMDP LGUs ƒ Planning activities in DMDP area need to be closely co-ordinated planning activities to make the most of limited resources.

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59. For the proposed committees and working groups to be effective, it is essential that: the following conditions are met: • clear statement of director-level support from each agency and a stated commitment to work together. • clearly-defined mandates and TOR. • membership is appropriate for the issues under discussion; often this will mean senior level membership, i.e. not top and not mid-level • the power to make decisions.

9. Organisational Development and Capacity Building (Chapter 16)

60. Acceptance of some or all of the proposals presented in preceding tables will be a major step forward. Yet it is clear that without an intense effort to improve RAJUK’s management performance, organizational development, human resource development and management (HRD and HRM), initiatives to improve Dhaka’s urban management will have little chance of success.

61. The Consultants have produced five Advice Notes which include both proposals as to how this can be achieved and guidelines as to how the required changes can be implemented. The five SRPG Advice Notes14 are:

• SRPG Advice Note No.1 Corporate Management: A corporate management system is proposed which: i) inspires trust and inspires confidence; ii) which satisfies the needs of city residents, businesses and investors; and iii) which provides for continuous monitoring and evaluation of performance. • SRPG Advice Note No.2 Human Resources Management: HRM is a key component of good governance and is especially crucial in those agencies involved in the delivery of metro-urban development programmes, facilities and infrastructure services. • SRPG Advice Note No.3 Human Resources Development: HRD provides employees with increased capabilities and increased capacities to perform to higher standards in the workplace; via attributes like leadership, delegation, task flexibility, lateral thinking, self-appraisal capacities, ability to prioritise, confidence to engage in unfamiliar tasks, receptiveness to change, and openness to alternative working styles and methods. • SRPG Advice Note No.4 ICT and Technology in the Workplace: high-quality ICT systems are required to meet increasing public information and process transparency obligations. We propose better integration; more generous operating budgets and optimised utility - in relation to access and action by operational staff and the public. • SRPG Advice Note No. 5 Community Outreach Strategy: A Community Outreach Strategy is proposed to increase public confidence in the independence, fairness and effectiveness of RAJUK as the principal urban planning and development authority.

14 The Advice Notes are presented in full in Volume 3 of this report.

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10. Implementation and Priorities (Chapter 17) 62. This study has made numerous proposals. It is evident that they cannot all be implemented at the same time. As a necessary first step, the following actions should be undertaken:

• RAJUK should proceed with its currently proposed RAJUK re-structuring proposals including establishment of zonal offices. This is a crucial to: (i) strengthen RAJUK and improve delivery of urban planning services across the entire DMDP area. • RAJUK and MPHW should review the SRPG proposals in order to identify those which are acceptable and where implementation can start with a minimum of delay. 63. Proposals have been grouped into three indicative time frames for implementation:

• Immediate (2013-2014): proposals which : (i) do not require legislation; (ii) could be introduced without too much difficulty; (iii) will have a demonstrable impact on some of Dhaka’s urban challenges; and (Iv) demonstrate RAJUK’s commitment to becoming a stronger and more open organisation. • Short-term (2015-2017): enactment of proposed TI(A)A; reconstitution of RAJUK’s board; formation of metropolitan development committee; initiation/ continuation of longer term programmes, e.g. organisational development/ capacity building; strengthening of LGU planning services,. • Medium-term (2018-2021): major institutional re-structuring; implementation of TI(A)A provisions; completion of organisational development activities. 64. The phasing of proposals between now and 2021 (to be consistent with Vision 2021) is shown in Table 17.1 of the main text. A substantial number have been identified for immediate implementation. This is an ambitious list and it is unrealistic to assume that they can all be implemented ‘in one go’. It is therefore important to identify what are considered to be the absolute priorities for early implementation. These are shown in Table ES20 and have been selected based on those presented at the stakeholder workshop.

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Table ES20. The SRPG Priorities

# Priority Rationale 1 Establish Advisory Committee to provide oversight ƒ Necessary first step to rebuilding confidence and for RAJUK activities public trust in RAJUK 2 Establish a timetable for implementation of TI(A)A ƒ The TI(A)A is crucial to strengthening the currently via an expert working group mandated to produce deficient urban planning system and giving RAJUK a report and recommendations within 3 months. the powers it needs to fulfill its mandate as planning authority for the entire Dhaka Metropolitan Region. 3 Enter into discussions with DOE to: (i) ensure ƒ Dhaka’s environment is a critical issue. compliance with environmental legislation; (ii) Environmental issues and legislation requirements integrate LUC and ECC approval procedures; and must be mainstreamed into RAJUK’s decision- (iii) develop co-ordinated approach to enforcement making process. operations. ƒ Integrated LUC and ECC procedures will provide a more effective development control process. ƒ Co-ordinated enforcement will: (i) strengthen the process and send a strong signal to potential contraveners. 4 Planning Commission to convene annual forum to ƒ Will lead to improved inter-agency co-ordination integrate and co-ordinate major proposals for and co-operation as well as build trust and DMR. knowledge-sharing. ƒ Will reduce implementation bottlenecks and facilitate . 5 Ensure that DMDP review includes assessment of ƒ Dhaka’s economy is crucial to its future economic development issues. sustainable development. 6 Commission feasibility study to: i) investigate ƒ Increasing finance for infrastructure and housing in options for increasing RAJUK income; and ii) the DMR is essential and RAJUK, unlike other potential for allocating funds from existing agencies has the potential to do this. resources to new infrastructure projects. 7 Establish arbitration committee to resolve backlog ƒ The backlog of court cases creates uncertainty for of over-hanging land development court cases developers, jeopardizes the integrity of planning processes, and overloads the judicial system. 8 Establish Action Team to revise DAP for Eastern ƒ The continuous illegal filling and development of Fringe through mediated resolution of major low lying areas in the eastern fringe is prejudicing planning contraventions, and safeguarding of road the area’s importance as a flood retention area for network ROWs and flood retention areas. the city. AND THEN: ƒ Safeguarded ROWs for primary and secondary In collaboration with DTCA, RHD, LGRD develop roads are vital if urban expansion is to be procedures for safeguarding of Right of Ways for managed in a sustainable way. roads (primary / secondary) and other trunk ƒ Developers and land owners need certainty over infrastructure, and implement. where they can and cannot develop. 9 Preparation, by inter-agency cell, of action plan for ƒ Important as they are, major integrated managed urbanisation for fast-growing development projects, e.g. Purbachal, cannot development area (land re-adjustment, road provide the sole answer to Dhaka’s future urban safeguarding, community involvement, financing growth. There has to be a process of managed plans, etc). urban growth in fast growing peripheral areas involving partnerships with developers and land owners. 10 Initiate organizational development/ capacity ƒ Strengthening of RAJUK’s management and building programme for RAJUK including technical capabilities is essential for secondments between RAJUK, DTCA, DOE. implementation of SRPG proposals and achieving a sustainable growth trajectory for Dhaka.

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11. Concluding Comments 65. Dhaka arguably faces the most extreme combination of urban problems of any mega-city – acute shortage of developable land, very high densities, high flooding risks, rapidly decreasing groundwater levels, chaotic transportation, low levels of infrastructure and open space. Dhaka is far less well placed to cope with climate change and the extreme weather events that have affected New Orleans, Bangkok, and Japan and now New York. 66. This Report has presented a wide range of proposals to address these problems through strengthened urban planning and metropolitan governance based around six key objectives:

st • Creating a planning system fit for a 21 century developing country mega-city. • Strengthening RAJUK so that it can better fulfil its mandate. • Increasing the accountability, transparency and oversight of RAJUK’s operations. • Increasing the finance available for infrastructure • Enhancing inter-agency co-ordination and co-operation. • Upgrading the technical and managerial capacities of RAJUK and sectoral agencies.

67. Major institutional re-structuring in the short term is highly unlikely to be the panacea that some might think. Redefining RAJUK’s role will be a lengthy and controversial process, not least because new institutional arrangements would need to be made for functions removed from RAJUK’s authority. The same would be true for the establishment of a full, integrated and democratically-governed Metropolitan Development Authority - although this will be essential in the longer term as Bangladesh seeks to achieve its Vision 2021. And, in both cases, the replacement institutions would be subject to the same problems that RAJUK, and other GOB agencies, now confront - susceptibility to ‘outside influence’, inadequate manpower resources, weak legislation. 68. In consequence, recommending either of these options for short term implementation would run a high risk of creating a policy vacuum and a protracted delay in implementing other SRPG proposals. Uncertainty and inaction are exactly what is not needed, Dhaka is vital to the future development of the country but its current situation is critical. Action has to be taken now. 69. Instead, the Study Team strongly believes that the emphasis should be on supporting and reinforcing RAJUK’s current efforts to increase the effectiveness of its operations through: (i) updated planning legislation; (ii) greater decision-making and financial autonomy; (iii) organisational development and capacity building programmes. At the same time, every effort needs to be made to creating a new climate of inter-agency co-operation and co-ordination – some proposals can be implemented by RAJUK acting on its own, but many will need the support and involvement of other government agencies. 70. But if RAJUK is to retain its position as the primary agency responsible for the development of Dhaka, it has to: (i) become more accountable in its operations; (ii) accept outside oversight of its policy- and decision-making; (iii) consult meaningfully with, and address the concerns of, those adversely by its projects and planning decisions; (iv) commit itself to making much greater effort to address the needs of the entire DMR population, rich and poor alike, and not just concentrate on its land development projects. Only if RAJUK takes action on these fronts, can it hope to reduce the level of criticism it currently receives and thereby regain the trust and confidence of the civil society, other agencies and the private sector. 71. No one doubts the immensity of the task ahead. But we strongly believe that the proposals contained in this report can form a basis for meaningful change and progress towards more sustainable

SRPG, Final Report ES26 Halcrow Group Limited/ BCL, December 2012. Strengthening Regional Planning and Governance Executive Summary urban development for Dhaka. But if this report is not to gather dust like so many others, there has to be a clear, strong and sustained commitment on the part of GOB to address Dhaka’s manifest problems. If this support is provided, along with strong leadership, we believe that much could be achieved within a relatively short time span to increase the sustainability of Dhaka’s urban growth.

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TA 7641-BAN: Strengthening Regional Planning and Governance

Volume 1. Main Report

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Contents

1. Introduction 1 1.1. Study Objectives and Approach ...... 1

1.2. The Draft Final Report (DFR) ...... 2

1.3. The Final Report ...... 2

PART A. FINDINGS AND ISSUES 5 2. Dhaka’s Urban Challenges 5 2.1. Geographic Definition ...... 5

2.2. Dhaka’s Urban Challenges ...... 5

3. The Planning Context 8 3.1. The Dhaka Master Development Plan (DMDP) ...... 8

3.2. The Detailed Area Plans (DAPs) ...... 8

3.3. SRPG Implications ...... 11

4. The Institutional Context 12 4.1. RAJUK ...... 12

4.2. Other Urban Management Organisations in Dhaka ...... 19

4.3. Coordination between Urban Management Institutions in Dhaka ...... 20

4.4. Other Cities ...... 21

4.5. The National Policy Context ...... 22

4.6. SRPG Implications ...... 23

5. The Legislative context 25 5.1. The Town Improvement Act (TIA), 1953 and Subsequent Amendments ...... 25

5.2. Review of the Proposed Urban and Regional Planning Act, 2012 (URPA) ...... 26

5.3. Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008 ...... 30

5.4. Enhancing the Planning Legislation ...... 32

6. Regional Economic Development 35 6.1. The Context ...... 35

6.2. Economic Governance ...... 37

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6.3. Improving Economic Development Planning and Governance ...... 38

7. Transportation 41 7.1. Sustainable Urban Transport ...... 41

7.2. The Policy Context ...... 42

7.3. Major Completed, Ongoing and Planned Projects ...... 45

7.4. The Institutional Context ...... 46

7.5. Transportation Planning in Dhaka – Key Issues ...... 49

8. Environmental Management in Dhaka 51 8.1. Dhaka’s Environment ...... 51

8.2. Environmental Policies and Legislation ...... 51

8.3. Institutions for Environmental Management ...... 55

8.4. Principal Issues with Environmental Management in Dhaka ...... 56

9. Organisational Development, Human Resource Development and Management 60 9.1. General ...... 60

9.2. RAJUK Programme Planning and Budgeting ...... 61

9.3. The RAJUK Business Model ...... 64

9.4. Proposed New Operational Units ...... 65

9.5. Training ...... 67

9.6. Information and Communications Technology (ICT) ...... 71

9.7. Community Outreach ...... 72

10. International Case Studies 73 10.1. General ...... 73

10.2. Lessons Learnt ...... 73

PART B. THE SRPG PROPOSALS 77 11. Introduction to The SRPG Proposals 77 11.1. The Key Issues ...... 77

11.2. Underlying Principles ...... 78

11.3. Presentation of Proposals ...... 78

12. Proposals: Strengthening the urban planning system and increasing rajuk’s effectiveness and accountability 80

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12.1. Creating a Planning System Fit for a 21st Century Mega-City ...... 80

12.2. Strengthening RAJUK so that it can better fulfil its Mandate ...... 83

12.3. Increasing the Accountability and Transparency of RAJUK’s operations ...... 85

13. The Proposed Town Improvement (Amendment) Act (TI(A)A) 91 13.1. General ...... 91

13.2. Differences between the Existing TIA and the TI(A)A ...... 91

13.3. A Brief Summary of the Proposed TI(A)A ...... 93

13.4. Requirements for Further Legislation ...... 99

14. Proposals to address Sectoral Issues 101 14.1. Regional Economic Development and Financial Planning ...... 101

14.2. Transportation ...... 104

14.3. Environmental Planning and Management ...... 106

15. The Future Institutional Structure for Metropolitan Planning and Governance 108 15.1. General ...... 108

15.2. Institutional Responsibilities for Urban Planning ...... 108

15.3. The Future Role of RAJUK ...... 110

15.4. The Establishment of a Metropolitan Development Authority (MDA) ...... 114

15.5. Enhancing Inter-Agency Co-ordination and Co-operation ...... 119

16. Organisational Development and Capacity Building 122 16.1. RAJUK Corporate Planning and Budgeting Systems (SPRG Advice Note 1) ...... 122

16.2. Human Resource Management and Development for RAJUK ...... 123

16.3. ICT and Technology in the Workplace (Advice Note 4) ...... 125

16.4. Community Outreach Strategy (Advice Note 5) ...... 126

17. Implementation and Priorities 128 18. Concluding Comments 131 Annex A: Consultations Held 133 Annex B: SRPG References 137

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To make things easier for the reader, the following colour coding scheme has been applied to Tables and boxes in the text:

Planning/ Urban Environment Economic (incl. RAJUK)

Transportation/ Organisation and Metropolitan Infrastructure Development governance

Implementation and Priorities

Boxes and Figures

Figure 2.1. Dhaka: Geographical Boundaries 6

Figure 3.1. Consolidated Detailed Area Plans for RAJUK Area 10

Box 4.1. RAJUK’s Mandate 13

Figure 4.1. RAJUK’s Financial Situation, 2005 to 2011 19

Box 4.2. Co-ordination Issues – Infrastructure Planning and Budgeting 21

Box 4.3. Summary of Findings: Other Cities 22

Box 7.1. SISCETRA: Institutional Recommendations for RAJUK 44

Box 7.2. Major Transport Projects in Preparation 46

Box 7.3. DTCA’s Mandate and Responsibilities 48

Figure 8.1. Loss of Wetlands in the DMDP Area, 1989, 1999 and 2005 52

Box 9.1. Training Priorities – Cross-sectoral Skills 70

Box 9.2. Training Priorities – RAJUK’s Technical Activities 71

Figure 10.1. Metropolitan Institutional Structures – Delhi and Bangkok 75

Box 12.1. Operation of Proposed RAJUK Advisory Committee (indicative) 87

Box 16.1: Proposed Reforms to RAJUK’s Corporate Planning and Budgeting Systems 123

Box 16.2. Proposed Training Modules and Competencies 125

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Tables

Table 2.1. Dhaka’s Urban Development Challenges 7

Table 4.1. Key Issues – the Criticisms Levelled at RAJUK 14

Table 4.2. Local Government Institutions: Implications for SRPG 20

Table 4.3. Bangladesh Vision 2021 – Selected Objectives 22

Table 6.1. Regional Economic Development – Key Issues 38

Table 7.1. Components of a Sustainable Transport Strategy 42

Table: 7.2. Agencies with Responsibilities for Transportation in Dhaka 47

Table 7.3. Key Issues: Transportation 50

Table 10.1. Summary of International Case Studies and Relevance to Dhaka 74

Table 11.1. Summary of Key Issues 77

Table 12.1. Proposals: Enhancing Plan Implementation and Development Control 81

Table 12.2. Proposals: Addressing the Housing Needs of Poor and Low Income Households 82

Table 12.3. Proposals: Democratizing the Planning Process 83

Table 12.4. Proposals: Strengthening RAJUK 84

Table 12.5. Alternatives: Reforming the RAJUK Board 86

Table 12.6. Proposals: Increasing Public Awareness and Transparency 88

Table 12.7. Proposals: Improving Confidence in RAJUK’s Planning and Development Operations 89

Table 13.1. Comparison between Town Improvement Act and a Bill for a Town Improvement (Amendment) Act 92

Table 14.1. Proposals: Regional Economic Development 102

Table 14.2. Proposals: Financial Management and Infrastructure Development 103

Table 14.3: Proposals: Transportation 105

Table 14.4. Proposals: Mainstreaming Environmental Planning and Management 106

Table 15.1. Proposed Phasing for Transfer of Local Planning Powers to Local Authorities 110

Table 15.2. Alternatives for the Future Role of RAJUK 112

Table 15.3. Alternative Institutional Arrangements if RAJUK is split 113

Table 15.4. Stages in the Establishment of a Metropolitan Development Authority 115

Table 15.5. Alternatives for the Administrative Location of the MDA 117

Table 15.6. Proposals: Enhancing Inter-agency Co-ordination and Co-operation 120

Table 17.1. Implementation of Proposals – Indicative Phasing 129

Table 17.2. SRPG Priority Actions 130

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Abbreviations and Acronyms ADB Asian Development Bank BBA Bangladesh Bridge Authority BELA Bangladesh Environmental Lawyers' Association BIDS Bangladesh Institute of Development Studies BIP Bangladesh Institute of Planners BIWTA Bangladesh Inland Water Transport Authority BRT Bus Rapid Transit BRTA(C) Bangladesh Road Transport Authority (Commission) BUET Bangladesh University of Engineering and Technology BWDB Bangladesh Water Development Board CC City Corporation CRDP City Region Development Project DA Development Authority DAP Detailed Area Plan DCC Dhaka City Corporation DCCI Dhaka Chamber of Commerce and Industry DCR Dhaka City Region DMA Dhaka Metropolitan Area DMDP Dhaka Metropolitan Development Plan DMR Dhaka Metropolitan Region DoE Department of Environment DRP Dhaka Regional Plan DTCB(A) Dhaka Transport Coordination Board (Authority) DUAP Dhaka Urban Area Plan DUTS Dhaka Urban Transport Network Development Study DWASA Dhaka Water and Sanitation Authority ECA Environmental Conservation Act ECC Environmental Clearance Certificate EIA Environmental (Impact) Assessment EMP Environmental Management Plan EPZ Export Processing Zone (S)FYP (Sixth) Five Year Plan GOB Government of Bangladesh HRD Human Resource Development HRM Human Resource Management ICT Information and Communications Technology IEE Initial Environmental Examination Katha c. 720 sq. ft.; c. 70 sq.m. L(G)ED Local Government (Engineering) Department LGU(I) Local Government Unit (Institution) LSP Large and Specialised Project LUC Land Use Clearance Certificate MDA Metropolitan Development Authority

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MDICC Metropolitan Development and Infrastructure Co-ordinating Committee MHPW Ministry of Housing and Public Works MLGRD Ministry of Local Government and Rural Development MOC Ministry of Communications MoEF Ministry of Environment and Forests MOF Ministry of Finance MOP Ministry of Planning (Planning Commission) MRT Mass Rapid Transit MSP Municipal Services Project (EC)NEC (Executive Committee) National Economic Council NGO Non-government Organisation NHA National Housing Authority NU(S)P National Urban (Sector) Policy RAJUK Rajdhani Unnayan Kartipakkha RDP Regional Development Planning (project) REHAB Real Estate and Housing Association of Bangladesh RHD Roads and Highway Department ROW Right of Way SEA Strategic Environmental Assessment SRPG Strengthening Regional Planning and Governance STP Strategic Transport Plan SUTP Sustainable Urban Development Project TDC Town Development Committee TI(A)A Town Improvement (Amendment) Act ToR Terms of Reference TRU Training and Research Unit UDD Urban Development Directorate UGIIP Urban Governance and Infrastructure Improvement Project UP Union Parishads URPA Urban and Regional and Land Management Act WB World Bank

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1. INTRODUCTION

1.1. Study Objectives and Approach

1. The overall aim of SRPG is to ‘streamline and strengthen the institutional frameworks of regional planning and governance’ and thereby address the institutional issues that currently contribute to making Dhaka one of the least liveable cities in the world1 and are seriously compromising the sustainability of its future development. It should be emphasised that SRPG is an institutional, and not a plan- or policy-making study2. The most important of these issues, most of which are well known, are considered to be3:

• Absence of inter-agency coordination between strategic development, transportation planning and environmental legislation

• Minimal regional economic planning • Inadequate legal framework for effective urban planning • Overlapping and conflicting responsibilities involved in urban planning and regional development functions

• Very low capacity of planning agencies in terms of personnel, skills and resources. • Lack of accountability in decisions related to development.

• Lack of enforcement of existing planning policy and regulation.

2. It should also be emphasised that this Study deals primarily, as envisaged by the TOR, with RAJUK and the Dhaka Metropolitan Area4. Based on our research, many of the issues also occur in the other major cities of Bangladesh. In consequence, many of the proposals would also be applicable to these cities and their Development Authorities and City Corporations.

3. As set out in the TOR, the consultants’ technical proposal, and subsequently confirmed in the Inception Report, the methodology of this study has been based around: (i) wide ranging consultations with key stakeholders including government5, urban development experts, the legal profession, civil society, and the private sector; (ii) document reviews; and (iii) international case studies for Delhi, Jakarta and London. International members of the study team visited Dhaka in October/ November 2011 and February/ March 2012 to work alongside their national counterparts who undertook many of the initial consultations and document reviews.

4. In total around 40 organisations and individual experts were consulted through one to one and small group interviews (see Appendix 1). Multiple meetings were held with the most important stakeholders, particularly RAJUK where over 30 meetings were held with senior management, directors

1 See S. H. Zahid, Financial Express, September 2011; http://www.thefinancialexpress-bd.com/more.php?news_id=148363 2 A comprehensive review of the current Dhaka Metropolitan Development Plan (DMDP) under the umbrella of the same ADB City Region Development Project (CRDP) is expected to start imminently. It is expected that this study, which also includes institutional and capacity building components will be able to build upon the SRPG recommendations. 3 All apart from the last were specifically mentioned in the TOR for SRPG. 4 For definition, see Chapter 2. 5 A large number of these consultations focussed on RAJUK, Dhaka’s metropolitan planning and development authority which is the primary focus of the study.

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and deputy directors from all departments. In addition, seminars and group discussions were held with: (i) RAJUK; (ii) stakeholders from the transport sector; (iii) stakeholders from the environment sector; (iv) the Bangladesh Institute of Planners; and (v) Dhaka Chamber of Commerce and Industry (DCCI)6. The two RAJUK seminars were attended by board members and departmental directors and served to confirm the team’s initial list of issues that needed to be addressed. The DCCI seminar was attended by 80-100 people including the Minister Housing and Public Works (HPW), the Chairman of RAJUK, senior management from DCCI and the Real Estate and Housing Association of Bangladesh (REHAB), the SRPG team and local media. This workshop provided a clear exposition of private sector concerns regarding RAJUK’s operations and, at the same time, an official response to these concerns. These consultations formed the basis for the Interim Report which was submitted in early April 2012.

1.2. The Draft Final Report (DFR)

5. In late May/ early June, consultations were held on the Interim Report with RAJUK and other key stakeholders. These included working seminars on environmental issues, the proposed contents of the Town Improvement (Amendment) Act (TI(A)A) and planning and governance in metropolitan Dhaka. The Team Leader and Deputy Team Leader also made fact-finding visits to the cities of Chittagong, Khulna and Rajshahi where they met with the City Corporations and Development Authorities. The objective of these visits was to assess the similarities and differences between the key Dhaka governance issues identified and those pertaining in these other cities7.

6. Subsequent to this visit the Deputy Team Leader held a number of often informal, consultations with RAJUK staff. These discussions continued during the Consultants’ visit to Dhaka in September 2012 during which a major stakeholder workshop, co-organised with RAJUK, was held. This workshop was attended by the Minister of Housing and Public Works, the chairman of RAJUK, assistant secretaries from this Ministry and the Ministry of Local Government and Rural Development RAJUK and over 130 other stakeholders from government departments, academia, civil society and the private sector. There was significant national press coverage of this workshop. In addition, a seminar was held to discuss the proposed Town Improvement (Amendment) Act; this seminar was attended by 6 members of the judiciary with experience of governance and planning issues (including the RAJUK magistrate) and the team’s national and international legal experts. Follow up discussions were also held with the Planning Commission and the Dhaka Transport Coordination authority (DTCA).

7. The DFR, submitted in late October 2012, was based on these consultations and had two primary objectives: firstly to provide a summary of the key institutional issues currently facing planning and urban governance in Dhaka8; and secondly to present the study’s proposals in more detail than had been the case with the Interim Report.

1.3. The Final Report

8. The Final Report follows the structure of the DFR and consists of three volumes:

6 This seminar was organised by DCCI. 7 A summary of the findings from these visits is contained in Chapter 4. 8 For a more detailed exposition of these issues, the interested reader is referred to Volume 2 of the interim Report which contains a much lengthier exposition.

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• Volume 1. Main Report (this volume) summarises Dhaka’s urban challenges and the planning, institutional, legislative and sectoral contexts that have contributed to these challenges, and contains the study\s proposals.

• Volume 2 contains the proposed Town Improvement (Amendment) Act (component A of the ToR).

• Volume 3 contains a detailed analysis of the issues related to organisational development, capacity building and training, and recommendations as to how these issues need to be addressed in order to facilitate the implementation of the study’s institutional proposals.

9. Volume 1 (this volume) consists of two parts. Part A summarises the study’s finding and key issues. Chapter 2 briefly describes the major urban challenges facing Dhaka. Chapters 3 to 5 respectively summarise the planning, institutional and legislative contexts. Chapter 6 examines the issues related to regional economic development. Chapters 7 and 8 describe the issues affecting transportation planning and delivery, and environmental management. Organisational development issues are summarised in Chapter 9. Chapter 10 contains a summary of the lessons learned from the international case studies undertaken as part of the study.

10. Part B contains the study’s proposals9 which cover the issues raised in Part A. Following a brief summary of the key issues that need to be addressed and the principles underlying the formulation of the proposals (Chapter 11), separate Chapters are devoted to strengthening the urban planning system and making RAJUK a more effective and accountable organisation (Chapter 12), a summary of proposed new legislation (Chapter 13), sectoral issues (Chapter 14), institutions for metropolitan governance (Chapter 15), organisational development and capacity building (Chapter 16), implementation and priorities (Chapter 16). Finally Chapter 17 provides some concluding comments.

11. The Final Report takes account of the written response prepared by a committee of RAJUK’s senior management appointed by the Chairman to review the DFR10. Comments were also received during several discussions involving the Deputy Team Leader11 and RAJUK personnel held between the second half of November and early December 2012 as well as final meetings with the Planning Commission and the DTCA; these too have been taken into account in preparing this report.

12. Throughout the study, the Study Team has worked closely with RAJUK to achieve a report which, as far as possible, represents a consensus view between RAJUK and the Study Team – something RAJUK very much wanted. Based on the relatively few revisions to the DFR, and our final discussions with RAJUK, we believe that agreement has been reached on the great majority of the proposals contained in this Report12. But, inevitably, agreement has not been achieved on every issue. This is not surprising given the complexity of many of these issues and the often wide divergence of views amongst the numerous stakeholders consulted. Most of these ‘divergences’ relate to the future institutional structure for urban governance in Metropolitan Dhaka. It is the study’s team’s firm view that now is not the time to embark on any major re-structuring as to do so would likely create a period of

9 Readers with limited time are recommended to proceed directly to Part B of the Report. 10 To facilitate this task, the consultants provided RAJUK with a Banlga translation of the Executive Summary. 11 The Team Leader attended some of these meetings during his final visit to Dhaka in late November. This visit coincided with ADB’s CRDP review mission which facilitated agreement on the time scale for the completion of the study. 12 See our detailed response to RAJUK’s written comments; these are included in the report submittal letter. Most of the consequent revisions to the DFR, including the TI(A), are minor in nature.

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uncertainty and confusion which would further delay the implementation of less controversial proposals urgently needed to address Dhaka’s urban challenges.

13. The Consultants wish to acknowledge the active participation of the RAJUK chairman and senior management from the outset of the study. Without this participation, which included exceptional access to RAJUK staff and information, the study would have been far less comprehensive. Our thanks are also due to the very wide range of other stakeholders from government departments, the academic community, NGOs and the private sector who contributed throughout the course of the study.

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PART A. FINDINGS AND ISSUES

2. DHAKA’S URBAN CHALLENGES

2.1. Geographic Definition

14. There are almost as many definitions of Dhaka City and its region as there are reports written about it. Of these, three are relevant to this study (see Figure 2.1). The first and smallest is often termed the Dhaka Metropolitan Area (DMA) which includes Dhaka City Corporation (DCC) and other Union Parishads (UPs) located between the Turag-Buriganga and Balu-Shitalakya rivers; it has an area of around 400 km2 and essentially constitutes the main urban area; it is frequently used as the study area for Dhaka-based research. The second is the area over which RAJUK13 has jurisdiction; this covers an area of around 1,530 km2, corresponds the DMDP area and, in addition, to the DMA includes the municipalities/ city corporations of Narayanganj, Gazipur-Tongi and Savar as well as outlying, largely rural areas. The third definition, often termed the Dhaka City Region (DCR), comprises 6 districts from the larger Dhaka division; the DCR has a much larger area, over 7,400 km2 and can be considered to represent the widest possible definition of Dhaka’s metropolitan region; the DCR was the study area for the Strategic Transport Plan (STP) and City Cluster Development (CCED) studies; it is also the legally defined jurisdiction of the recently established Dhaka Transport Coordinating Authority (DTCA); unlike the peripheral parts of the DMDP area which are already experiencing Dhaka-related growth pressures, the DCR has, to date, remained largely unaffected by these. The primary focus of SRPG is the DMDP area as it constitutes the current legally mandated Dhaka planning authority area14.

2.2. Dhaka’s Urban Challenges

15. Table 2.1 provides an overview of the most serious urban development challenges facing Dhaka. Together these have contributed to making Dhaka one of the least liveable cities in the world. Dhaka is not the only large city facing these challenges, particularly those relating to high population growth, uncoordinated urban expansion, susceptibility to rising sea levels and traffic congestion. Nevertheless, Dhaka arguably faces the most extreme combination of urban problems of any mega-city – acute shortage of developable land, very high densities, high flood risk, rapidly decreasing groundwater levels, chaotic transportation, low levels of infrastructure and open space. And Dhaka is far less well placed to cope with the extreme weather events that have recently affected New Orleans, Bangkok, Manila and Japan.

16. The need to tackle these issues emerged from virtually every consultation, including those with the private sector. In short, everyone considers that action is urgently needed if Dhaka is to be ‘saved’. Identifying the institutional measures needed to address these issues, and address them soon, is the over-arching objective of this study.

13 Rajdhani Unnayan Kartipakkha or Capital Development Authority. 14 Other definitions are mostly used in this SRPG for statistical purposes. Terms such as metropolitan Dhaka, metro-Dhaka, Greater Dhaka, Dhaka metropolitan region are used interchangeably.

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Figure 2.1. Dhaka: Geographical Boundaries

A. Dhaka City Region

B. Dhaka Master Development Plan Area (RAJUK)

Legend: 1 DCC 2 Union Parishads (UPs) 3 Other municipalities 4 Rural areas in DMDP area (west) 5 Rural areas in DMDP area (west)

Notes: 1. The DCC area includes the large military cantonment areas. 2. DMA: 1+2. 3. DMDP: 1+2+3+4+5. 4. The UPs administer all areas apart from those shown in pink and pale blue.

Source: CCED, 2010.

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Table 2.1. Dhaka’s Urban Development Challenges

Sector/ Topic The Challenge Geographic Location Low lying and situated in the middle of one of the largest river deltas in the world, Dhaka is very vulnerable to severe flooding from upstream during the monsoon season. This vulnerability will be increased should sea levels rise as a result of climate change. Population Currently around 15 million (DMDP area) and growing at 3-4% annually means that there are very high development pressures across the DMDP area. The resulting annual increase in households is in the order of 100,000. Even with reduced with migration, a population increase to around 25 million is quite possible over the next 20 years. Economy Dhaka’s economy has grown consistently in recent years such that the DCR, with around 15% of the national population generates about 40% of GDP due particularly to the continued expansion of the garment industry over the last 20 years. Another important contributory factor is the growth in remittances and which has fuelled the real estate boom. Per capita incomes are over twice the national average. Land use Much of the DMDP area is still undeveloped, yet much is also low-lying making it hard to develop. This is evidenced by in rocketing land values and very high densities, averaging over 40,000 per km2 15– and much higher in the old city, slums and some new development areas where provision for non-residential uses is very low. Densities are also increasing in many areas with the replacement of detached houses by multi-storied apartments; very few single houses are being constructed . Simultaneously pressure on fringe areas is increasing resulting in the loss of flood retention areas;. Overall between 1988 and 2005, the built up area doubled in the DMA and now accounts for almost half the total land area. Urban poverty and 2005 estimates are that 30-40% of the city’s population live in slums in poor quality, slums overcrowded housing largely bereft of urban services and with little security of tenure. Many are located in unsafe areas – along embankments, railway lines and above water bodies. Urban poverty is around 24% indicating that a significant proportion of slum residents are not poor, thereby under-scoring the severity of the housing situation. Transport Chronically overloaded entailing congestion costs running into billions of dollars annually resulting from rising car ownership and population, a poorly developed road network, lack of mass transit and inadequate management of rights of way. As in many cities, traffic is a major public concern. The environment Surrounding wet lands have a vital role as flood retention zones, yet they decreased by almost 60% between 1988 and 2005 (almost certainly more since then). Water pollution caused by untreated domestic and industrial wastes entering water bodies untreated. The rivers are now largely biologically dead and the high levels of pollution are present a major challenge to water treatment plants. Allied to the partial coverage of the piped water system, many households and industries are relying on groundwater; yet groundwater levels are dropping alarmingly. High levels of air pollution mostly arising from traffic and the brick kilns. A poor quality urban realm with little provision of open space, even in the large new residential developments.

15 Recent estimates make Dhaka the world’s most densely populated city; see Cox, W. (2012) World Urban Areas Population and Density: A 2012 Update, New Geography, October 4, http://www.newgeography.com/content/002808-world-urban-areas- population-and-density-a-2012-update

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3. THE PLANNING CONTEXT

3.1. The Dhaka Master Development Plan (DMDP)

17. The DMDP 1995-2015, covering the entire RAJUK area, completed in 1995 and legally approved in 1997, is the current structure plan. The DMDP study was an extensive exercise undertaken over 3 years which included a number of detailed investigations, incorporated the results of other existing major studies (notably the Flood Action Plans) and current thinking on urban development, notably the importance of working with and facilitating private sector activities with the public sector becoming an enabler rather than a provider. Considerable stress was given to the importance of infrastructure development, especially flood control works and road construction as a means of guiding the private sector and ensuring a coherent urban structure, particularly in fringe and new development areas. The plan also gives emphasis to providing for the needs of low income households but, conversely, pays little heed to the economic issues and the development of new employment areas – although at the time of preparation, few would have foreseen the rapid expansion of the garment sector.

18. The Dhaka Urban Action Plan (DUAP) was completed at the same time and provided a more detailed series of policies for the main urban area, approximately equivalent to the DCC/ DMA. The DUAP, which had a time horizon of 10 years (2005), was intended as an interim measure until the Detailed Area Plan (DAP) envisaged by the DMDP was completed.

19. In two ways, the DMDP can be seen as a success. Its population projections, around 14 million in 2011, are broadly in line with preliminary 2011 Census results16 while recent analysis of satellite imagery reveals that the overall spatial strategy of increased consolidation of the urban core, accelerated development in fringe areas and development of growth centres in the north (Gazipur- Tongi, west (Savar) and south west (Demra- Narayanganj) broadly reflects actual spatial development trends. A number of the identified infrastructure projects, e.g. roads and bridges, have also been built.

20. However in most other respects however the DMDP should be seen as a failure: (i) over- densification of previously low density residential areas (Dhanmondi, Gulshan, Banani); (ii) there has been little infrastructure-led development so fringe areas are developing very much on a piecemeal basis and in the absence of a demarcated, let alone established, secondary road network; (iii) the failure to protect the flood retention areas envisaged in both the DMDP and the DUAP; (iv) the absence of any initiatives to provide land for poor and low income housing17 thus perpetuating the extension of existing slums and the creation of new ones, notwithstanding RAJUK’s substantial land development activities in Uttara and Purbachal; (v) an absence of planned growth in the designated growth areas; (vi) a general failure to provide/ upgrade infrastructure, especially roads and water supply networks; and (vii) the absence of any new planned industrial/ employment areas.

3.2. The Detailed Area Plans (DAPs)

21. The DAP is designed to provide the primary tool for development control at the local level by providing both maps on a cadastral based and a written policy statement. DAP preparation started in

16 Unlike the 1959 plan which completely failed t predict the rapid urbanisation that was to follow. 17 Private sector developers also noted this shortcoming and said that there is now a trend to provide smaller flats for these groups.

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2004 and was completed in 2007. The major problem encountered by the Consultants preparing the DAP was that several years had elapsed since the completion of the DMDP during which little enforcement of DMDP policies had taken place; this had led to numerous deviations from DMDP policies18. Another difficulty was that the consultants had difficulty making more precise the indicative flood retention areas shown in the DUAP/ DMDP. The DAP consultants originally took the view that all deviations from permitted land uses should be taken as the ‘de facto’ situation and should be incorporated into the DAP as legitimate development. This view was however challenged by the DAP Review Committee. The DAP was also criticised in the SEA Report19 for failing to: (i) protect watershed areas from industrial pollution by not providing for zoned industrial areas; and (ii) have sufficient input from sectoral agencies including those have a statutory right to be consulted by RAJUK. As a result of these criticisms, the DAP was revised to show the majority of deviations as illegal development. In 2010, despite a legal challenge from developers, the revised DAPs were accepted by the government and gazetted as a single document.

22. The government however appointed another committee to examine, case by case, the identified deviations. At time of writing, RAJUK is in the process of commissioning consultants to revise the DAP with the specific brief to re-examine each deviation and to decide whether there are grounds to grant retrospective planning permission. The results of this exercise will be reviewed by RAJUK, who have the power to amend the DAP as they see fit. It is thus by no means certain that this review process will remain independent from outside influence or will strengthen the protection of wetlands from development.

23. There is however growing evidence that the DAP is beginning to have an impact. A number of court cases have been successfully filed by third parties directed at compelling RAJUK to take action against specific instances of plan deviation; press reports are also giving increased publicity to RAJUK enforcement actions. Within RAJUK, and some municipalities, the development control officers, while aware of DAP shortcomings, are willing to use them as an interim operational framework. At a meeting with major developers, there was clear concern that some of their developments would be illegalized but otherwise they said that they would abide by the DAP; they also expressed some explicit concern about the loss of wetlands and the potential increase in flood risk that continued unabated filling would entail. At the same meeting, the Minister of HPW announced that the DAP would be enforced.

18 Analysis of 2005 satellite imagery reveals an annual loss of over 1,900 hectares of wetlands between 1999 and 2005 – almost 4 times the rate for the preceding 10 years. 19 Dhaka-Strategic Environmental Assessment 34445 –Final – Aug 2007 5-4 SENES Consultants Limited

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Figure 3.1. Consolidated Detailed Area Plans for RAJUK Area

Source: http://www.google.co.uk/imgres?imgurl=http://changebangladesh.files.wordpress.com/2010/07/dap.jpg&imgrefurl=h ttp://changebangladesh.wordpress.com/2010/07/19/detailed-area-plan- dap/&h=5760&w=3840&sz=5863&tbnid=Z_935ZcJEcOX0M:&tbnh=84&tbnw=56&prev=/search%3Fq%3Drajuk%2B dap%2Bimage%26tbm%3Disch%26tbo%3Du&zoom=1&q=rajuk+dap+image&usg=__aWUE4JXRoAMQedBsCjR1p GL5FAg=&hl=en-GB&sa=X&ei=bP1uULiHK6XG0QXQ5YGgCQ&ved=0CBgQ9QEwAQ

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3.3. SRPG Implications 24. In summary, the overall spatial strategy of the DMDP has generally been followed and there is evidence that the DAP is beginning to restrict further illegal developments. In most other respect, the current planning system has failed: enforcement has been woeful resulting in major deviations from the DMDP in relation to both on-plot over-development and developments in wetland areas. There has also been negligible pro-active planning for the identified growth areas or provision of supporting infrastructure, planned industrial areas, shelter for low income groups, or open space in major new developments. Environmental planning is poorly integrated into either plan-making or development control procedures.

25. There are several reasons for these failures: (i) the inability of RAJUK to allocate funds to infrastructure development other than for its major projects; (ii) difficulties in mobilising funds from other agencies involved in road construction resulting both from financial scarcity and from difficulties in achieving co-ordination with their development activities; (iii) lack of enforcement against on-plot contraventions or illegal developments; (iv) RAJUK’s continuing emphasis on its land development operations.

26. In consequence, the current planning system needs to be strengthened in a number of ways:

• Much stronger enforcement mechanisms with, in particular, greater weight given to environmental considerations.

• A concerted effort to link land development and infrastructure provision (especially roads) in order to develop the satellite growth areas in an orderly manner before it is too late; this could include measures to develop partnerships with the private and mechanisms to obtain financial contributions towards off-site infrastructure.

• Powers to safeguard future road Rights of Way. • Providing provision for financial sanctions against developers/ owners in exchange for retrospective planning permission.

• Mechanisms to provide adequate shelter for low income households. • Looking further ahead, an expansion of the current DMDP boundary may become necessary as the capacity of the current DMDP area to accommodate further population diminishes.

27. The draft National Urban Policy20 also recognizes that urgent action is needed on a wide number of fronts - institutional, financial, planning, and sectoral - as does the recent declaration from the first Bangladesh Urban Forum held in late 201121. Although neither of these constitutes committed government policy, they do cover all facets of sustainable urban development and hence provide a broad policy context for the formulation of SRPG recommendations.

20 National Urban Sector Policy (Draft) Government of Bangladesh, Ministry of Local Government and Cooperatives, Local Government Division, Committee on Urban Local Governments, September 2006 21 High level speakers included the Minister HPW, Minister LGRD and Minister of Finance; over 2,500 people attended including around 200 municipality mayors; Daily Star, December 8, 2011.

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4. THE INSTITUTIONAL CONTEXT

4.1. RAJUK 4.1.1. Historical Evolution, Mandate and Achievements 28. RAJUK was established in 1956 within the Ministry of Housing and Public Works (MHPW) as the Dhaka Improvement Trust (DIT) under the provisions of the `Town Improvement Act’ (1953). DIT was conceived as a corporate body with power and resources to construct a new capital, together with planning and development control powers within its area of jurisdiction. DIT was superseded by RAJUK in April 1987. The principal effects of the change were to increase its area of jurisdiction and to replace the existing board of trustees with a 5-member appointed board. The justification at the time was that this would provide a more effective decision-making body. At the same time, it reduced the independence of RAJUK’s governing body and made it less open to scrutiny and more subservient to the requirements of the government of the day. Subsequently, the agency has enjoyed a substantially unchallenged authority to plan and regulate development. This inherited authority gives it a unique intermediary status (akin to provincial government) amongst urban development and planning agencies in the DMDP area. This position is maintained under the proposed new planning law currently awaiting Cabinet approval (see next section). In particular, RAJUK will remain the ‘planning authority’ for its currently demarcated region and its institutional arrangements are not affected. However, RAJUK will be expected to accept the technical provisions of the new Act which include increased public involvement in the planning process and could therefore be subject to more checks and balances.

29. RAJUK’s current mandate was recently reconfirmed as part of its proposed re-organisation and strengthening and consists of the very wide range responsibilities (Box 4.1).

30. Under the 6th Five Year Plan (SFYP), RAJUK is specifically charged with the following responsibilities, almost all of which relate to the development of the construction of serviced plots and buildings rather than plan implementation and enforcement: “Under the DAP, RAJUK will expand the city area to establish a planned capital city. At the same time, to manage the acute housing problem caused by population pressure and provide civic amenities to city dwellers including modern arrangements for car parking, RAJUK will take up different projects for the allocation of’: 45,200 residential plots, 114,000 residential flats, 2,547 commercial plots, 506 administrative plots, 41 diplomatic plots, 52,624 apartments for low and middle income group people, 520 car parking spaces, 200,000 sq ft of commercial space for offices. It will also connect central Dhaka to eastern bypass and ‘increase’ the east-west road network.”22

31. RAJUK is governed by its Chairman and five other full-time officials appointed by the Ministry of Housing and Public Works (MPHW). It is expected to implement national policy, as it concerns capital city development policies, strategies and investment programmes, directly and without sectoral bias or sectional interest.

22 Planning Commission/ GOB, Sixth 5 Year Plan.

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Box 4.1. RAJUK’s Mandate

ƒ To review of the structure plan and detailed area plans of Dhaka mega city at relevant periods. ƒ To prepare architectural and structural designs, together with implementation and maintenance of government buildings and other structures. ƒ To prepare and update: policies, laws, codes and rules to promote and develop planned residential development areas. ƒ To be responsible for planned urbanisation, proper use of land and development activities. To build and develop satellite towns for planned urbanisation. ƒ To carry out research and technology development relating to urbanisation, housing, structural development, construction materials use and technologies. ƒ Implementation of roads, culverts, bridges, fly-over, underpasses, multi-storied car parking facilities, lake development and improvement, and protection of water reservoir within RAJUK controlled areas of the metropolitan city as per the plan. ƒ Maintenance of RAJUK’s own structures and buildings. ƒ Creation of opportunities to solve the problems of urbanisation and housing by associating with the private sector. ƒ To adopt and prepare policies, guidelines and rules, and to carry out reforms and implementation works with respect to building construction. ƒ To control unplanned buildings and construction activities without approval which are in violation of the prevailing construction rules and codes, so as to ensure a satisfactory environment for planned housing in the city. ƒ To demolish and remove buildings without approval and those structures which deviate from approved plans through mobile courts. ƒ To maintain the allocation of plots and flats via the allocation of units in current and future projects, to confer title, make changes, and effect transfers, and to approve power of attorney as necessary and to collect service charges. .

32. Land development is arguably the part of its mandate that RAJUK carries out most successfully. Major areas of the city (Gulshan, Banani, Dhanmondi, Baridhara, Nikunja, Uttara and now Purbachal) have been developed by RAJUK. Since 1959, RAJUK has acquired about 4,260 acres (1,725 hectares) of land23. Most of the land has been used for residential purposes and these areas now accommodate a substantial proportion of the city’s population24. Plots are allocated to individuals, via lotteries, who then develop as they see fit, nowadays mostly for 5-7 storey apartments. This is a tremendous achievement and due to the revenue from land sales, RAJUK is essentially self-funding. As planning authority RAJUK has also overseen the preparation and legal approval of both the DMDP and the DAP.

4.1.2. Current Perceptions of RAJUK 33. The level of criticism directed against RAJUK during the team’s extensive consultations, which included many RAJUK staff past and present, and private sector representatives, is frankly alarming. These criticisms covered virtually every aspect of RAJUK’s operations; they replicated those seen in many documents and media reports. These criticisms are summarised in Table 4.1.

23 Excluding Purbachal, Jhilmil and Uttara phase 3, all of which are now in various stages of implementation. Uttara includes the construction of 20,000 apartments which represents a diversion from RAJUK’s previous practice of concentrating on the provision of serviced plots. 24 A crude estimate of the population living on RAJUK plots would be around 1.6 million; this assumes: (i) 65% net land for development, (ii) 4 katha (260m2 ) per plot, (iii) 10 units per plot , and (iv) 4 persons per unit).

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Table 4.1. Key Issues – the Criticisms Levelled at RAJUK

Topic Summary of Criticisms 25 ƒ No annual report or accounts – the minimum level of public accountability acceptable for a state-owned corporation –- are published. ƒ No annual general meeting is held. ƒ The decisions of the Board are not subject to any review process, technical audit, public scrutiny, or appeals process, especially where decisions are controversial. Transparency ƒ Board meetings are ‘closed door’ events. There are no press or public galleries in the Board and Room to provide access for the public to monitor the decision-making processes. accountability ƒ No comparative performance data is available to help assess its operational performance. ƒ The lack of an elected ‘supervisory board’ including appointed elected officials, means that urban management and development policies for Dhaka’s ‘apex’ urban management forum are not forged through public debate SRPG team comments: With an increasingly vocal urban electorate, RAJUK will be under increasing pressure to submit to such oversight. Indeed such oversight is increasingly being promulgated by MLGRD through its initiatives and projects to increase the transparency of municipalities and other local authorities.

Conflict of ƒ RAJUK has received strong and continued criticism concerning its dual roles. RAJUK acts as interest both ‘system regulator’ and ‘system user’ - as regulatory plan-maker and regulatory plan-user, between as arbitrator and applicant, as planner and developer. RAJUK’s land ƒ This gives rise to inconsistent decisions – RAJUK flouts its own planning policies yet refuses development developers’ proposals than contravene planning policy – and makes RAJUK open to t charges and planning of self-interest, double-standards and inconsistency. roles ƒ The dual roles have enabled RAJUK to concentrate on its land development projects and neglect its role as planning authority. SRPG Team Comments: The need for a clear separation of RAJUK’s roles as both developer and planning authority is one of the most consistent suggestions made during the team’s consultations. Unless this occurs, it will be difficult for it to regain the trust of Dhaka’s population, NGOs and some government agencies. At the least, there should be scrutiny of any decisions that relate to RAJUK’s own development decisions. ƒ Some RAJUK’s developments are deviations from the approved DMDP and include with insufficient provision for flood retention areas. ƒ Allocations for non-residential purposes (community facilities, employment, etc.) are low preventing the development of self-contained communities with a wide provision of ancillary facilities. RAJUK as ƒ By concentrating on these developments, usually located in low-lying areas, RAJUK is failing land to promote development in DMDP-identified in better located growth areas. developer ƒ Residential plots (unlike commercial ones) are sold well below market value. Windfall profits are thus made by plot recipients rather than by RAJUK (i.e. GoB). ƒ Most RAJUK plots go to higher income families, often at the behest of influential persons. Few poor, low income or even middle income households benefits. Eligibility criteria are not observed. The plot allocation procedure is thus seen as both unfair and inequitable. ƒ Substantial deposits are taken from all applicants yet these deposits are often kept for a long time (accruing interest for RAJUK) and then are returned after often protracted negotiations. SRPG Team Comments: These shortcomings in RAJUK’s performance clearly go against parts of its mandate. This situation has prevailed for many years and thus can be seen as: (i) a failure on RAJUK’s part; and (ii) a more general failure of GOB to insist on RAJUK operating according to its mandate, to ‘protect’ it from the power of influential individuals, and by insisting on a more transparent the plot allocation process.

Topic Summary of Criticisms

25 Available for many municipalities.

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ƒ Although the DMDP overall strategy has largely been followed, most other DMDP policies have not materialised (see previous section). ƒ Strategic planning capacity in RAJUK has not been strengthened over the years to deal with Dhaka’s manifest problems and the agency appears to have no credible strategy to deal with inter alia: urban infrastructure planning and upgrading for a megacity of 15-20 million; RAJUK as environmental degradation; shelter for poor and low income groups. Strategic ƒ RAJUK has failed to develop relationships with other key agencies in order to enable a co- Planning ordinated approach to DMDP implementation to be established. Authority ƒ RAJUK has not maximised its revenue from its land sales so as to provide funds for infrastructure development elsewhere in the metropolitan area26. Up till now, the planning function remains technically deficient and chronically understaffed. SRPG Team Comments: overall, there currently appears to be little vision in RAJUK’s operations or management in terms of a more sustainable Dhaka. Efforts are heavily concentrated on its land development operations. ƒ The lengthy consultation process means that it takes an average of 2 years to process a single application – representing a major cost to developers and a major incentive to both avoidance and corruption. ƒ The great majority of construction occurs without either planning permission or any building control inspections. Development ƒ Ineffective enforcement: (i) almost all developments approved by RAJUK prior to 2007 are in Control and gross violation of the planning permit conditions in terms of building heights, setbacks and Enforcement encroachments; (ii) this has led to unacceptably low planning standards in many private developments – minimal gaps between buildings, windows on side facades, lack of open space either on-plot or within the development. ƒ RAJUK’s enforcement operations mostly occur only when contraventions are brought to RAJUK’s notice by a third party, the press or a high court decision is made. There is little enforcement in inner lower income areas where construction standards are likely to be worse, in the non-DCC outer areas of its jurisdiction, or against illegal land–filling in lowland areas. ƒ Inspections and enforcement are hampered by lack of transport. ƒ Planning standards can be changed with little advance warning thus prejudicing developers’ project business plans. ƒ Staff shortages mean that despite there being laws and regulations for building control (the Bangladesh Building Construction Rules 2006, amended 2007 and 2008) this essential aspect of public health and safety is currently being waived. ƒ The lack of transport further reduces the potential for inspections, compliance or enforcement operations. SRPG Team Comments: there is little positive to say about the development control process. It is inefficient, only affects a minority of construction, arguably provides more incentives for corruption than it does for compliance, generates little in the way of on- or off-site social or environmental facilities, and does little to assist in DMDP/ DAP implementation. There is little in the way of enforcement and not infrequent examples of RAJUK deviating from their own plan, without any publicly available technical justification, thereby setting a poor example to developers, land owners and civil society alike.

Topic Summary of Criticisms ƒ There is a very low-level of delegated decision-making: the Chairman or his authorized RAJUK as representative presides over all meetings relating to development policy, development projects, an development control, land acquisition and sales and organizational matters. Organisation ƒ The top level positions in the organisation are filled by civil service cadres who serve on short- and its term delegation and may thus not have a high level of commitment to the organization. Human ƒ Corporate and financial planning are weak leading to lack of strategic direction and sound Resourcing financial management. ƒ RAJUK is chronically undermanned in key professional and technical positions, with more than 40% of posts vacant and a low ratio of ‘professional and technical’ to ‘support’ staff.

26 Chinese municipalities also derive a large part of their revenue (up to 50%) from large scale land developments; however the majority of the revenues are then used to develop infrastructure throughout their administrative areas.

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ƒ There is an acute lack of skilled adequate manpower in the key urban development professions, particularly urban planning. This acute staff shortage precludes adequate supervision of contractors, leads to sub-optimal use of state assets, entails low standards of construction, and leads to a high level of contraventions. ƒ There is an absence of job descriptions and clear levels of responsibility. ƒ Job satisfaction is low among some RAJUK professional staff: little responsibility or prospects for career advancement. Aditionally, the work environment is extremely poor by Government of Banglasesh standards.27 ƒ Few professionals ‘in post’ have benefited, in a systematic fashion, from advances in planning education. The profession is bureaucratic, techno-centric and poorly equipped to deal with social and environmental concerns. ƒ The RAJUK establishment will shortly incur additional unproductive staff. In the face of pressure from trade unions RAJUK will reabsorb 372 previously terminated employees through the new establishment in at a ratio of 25% of scheduled new posts. The former staff are lower division clerks, tracers, draftsmen, computer operators and data entry cum accounts officers.28 SRPG Team Comments: The low number of qualified urban planners, with sometimes limited experience, implies that both plan-making and development control systems need to be simplified and streamlined if they are to achieve an acceptable level of usefulness. Additionally, the lack of a national jobs market among government servants not only fails to make best use of the human resources available but also denies employees the prospect of a meaningful career path. There are also bureaucratic impediments to RAJUK’s operation, notably the need to seek Ministry approval for budget and staffing/ recruitment issues despite the agency being largely financially self- sufficient. ƒ Prior to 2007 RAJUK laboured under the burden of a very poor reputation for institutionalised corruption in the routine operations of the development control and estates functions. ƒ RAJUK has been forced to defend itself against accusations of impropriety on numerous Integrity occasions. 29 Issues ƒ The protracted planning application process provides numerous opportunities for corruption. ƒ Many, low level, on plot, contraventions are ‘resolved’ through illicit payments. ƒ Both senior management and development control staff are often under heavy pressure to approve proposals irrespective of their conformity with current plans or technical justification. SRPG Team Comments: since 2007, the development control process is said to have been ‘cleaned up’ but officials concede that corruption still exists. Corruption is a national problem and it is unrealistic to expect RAJUK to ‘solve’ it unaided, especially in terms of the outside pressure exerted to ensure favourable plot allocations and .planning approvals. Indeed, RAJUK personnel frequently made reference to the pressure that they are under to agree to such requests. More generally, they comment on their very limited ability to make decisions without getting approval from the Ministry30.

4.1.3. Recent Changes and Proposed Restructuring 34. RAJUK is aware of these criticisms and agreed that they needed to be addressed by this study31. They also emphasise that they had taken steps to address some of these issues since the appointment of the current Chairman in 200732. Many interviewees (from within and outside RAJUK, including RAJUK clients, and observers), often with major criticisms of RAJUK, also conceded that there were signs of RAJUK making significant efforts to improve its performance. Measures taken include:

27 Mainly due to the poor quality of assertively unionised cleansing and maintenance staff who have become virtually ‘unmanageable’. 28 RAJUK has paid salaries to suspended staff without designated work, under court order. 29 Bangladesh ranks 134 out of 178 in 2010 Transparency International Corruption Perception Index. 85% of firms in Bangladesh have to make unlawful payments to government officials; World Bank/ IFC, 2007, Enterprise Surveys: Bangladesh Country Profile, http://enterprisesurveys.org/Data/ExploreEconomies/2007/bangladesh. 30 Regarding RAJUK’s lack of decision-making autonomy, see New Age, 16 January, 2011; cited at http://www.defence.pk/forums/bangladesh-defence/89073-autonomy-rajuk-only-paper.html 31 Seminar with senior RAJUK staff, February 2012. 32 The current chairman is the first technical person (he is an engineer) to be appointed to this role and thus embodies many of the characteristics that rank and file staff want to see at executive level.

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• A new organizational structure with much increased staffing levels (from 1,081 to 1,980) and incorporated decentralization of key front-office functions. These proposals have been approved by GOB and are being implemented gradually. The new structure, as approved in 2012, moves the responsibility for Land to Estates, abolishes Finance as a separate department, and adds a new division for Development Control The existing 5 person board structure will be maintained but Development Control will have its own member; administration and land will be the combined responsibility of one member as will estates and land. 8 zonal offices (4 in Dhaka proper and 4 outside) will be established over a four year period.

• The publication of the 2010-2011 Annual Report, the first since 1994-95, with the 2011- 2012 also now in draft33.

• The gazetting of the DAP which now constitute legally approved planning documents. The DAP is also being used in some municipality offices, e.g. Tongi.

• Improvements to the development control process to increase its technical integrity. • Increased enforcement activities, even if these largely occur only when RAJUK is told of contraventions rather than through routine inspection activities34. In this context, RAJUK often uses powers under the Playfield, Open Space, Park and Natural Water Reservoir Conservation Act, 2000 and the Private Housing Development and Management Law, 2010 for enforcement purposes rather than the Town Improvement Act.

35. At the previously mentioned DCCI workshop, the Minister of HPW and the Chairman made the following points in respect of RAJUK’s performance:

• The Minister HPW said that they were committed to establish the rule of law and implement the DAP in cooperation from all concerned. He also said that there was no corruption during their tenure for allocating plots in Purbachal and Uttara Phase 3.

• The chairman observed that RAJUK was not exceptional in being prone to corruption but that they were committed to reducing it from the top.

• RAJUK’s operations are hampered by legislative inadequacies, especially the TIA and in terms of regenerating the old city; they are working on updating the TIA.

• Current planning documents are largely outdated but a full review of the DMDP is in preparation. This would pay particular attention to economic development issues and the loss of critical flood buffer-zone capacity and agricultural land.

• Reorganization of RAJUK is necessary to provide services to the people and a major expansion in personnel has been approved.

• RAJUK is working to reduce the Chairman’s concentration of power and to decentrailise activities to local level.

• Computerization of land records in RAJUK would be completed in 2012. • He said that RAJUK is changing from within and hopes will continue changing for better services to the people.

33 RAJUK, Annual Report, 2010-11, Dhaka. This report presents an excellent overview of RAJUK’s current activities. 34 RAJUK now has 4 magistrates who operate mobile courts. As a result removals of illegal structures are more frequent and fines for building control contraventions have increased from Tk. 6 ,million in 2009-10 to Tk. 205 million in 2011-12.

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4.1.4. The Crucial, and Difficult, Issues 36. The recent and proposed changes described in the preceding section are all seen as positive and are supported by the Study Team. If implemented with the necessary support from government and management, they will begin to address issues related to increased accountability, more effective development control and understaffing. They are however unlikely to significantly address other issues frequently raised during the consultations:

• Increased accountability: although the preparation of the 2010-2011 Annual Report is welcome, this alone is unlikely to satisfy critics unless it is used as a vehicle to establish a critical dialogue on RAJUK’s performance in carrying out its planning mandate and development programmes.

• Functional conflict of interest: this issue (the separation of planning and development functions in RAJUK; and consequently, processing RAJUK in-house development plans through the control system to ensure compliance) is regarded as crucial by local professionals and users of the system but will not currently be entertained by RAJUK in any form (e.g. separation of institutions, erection of an institutional ‘fire-wall’ etc.).

• Strategic planning functions and co-ordination with other agencies: there is little evidence of RAJUK achievement or commitment, e.g. through a vision for the future development of the metropolitan area. Similarly, there is little mention of shelter for low-income groups, increased weight given to environmental issues, or pro-active development of new growth centres. Little effort to integrate land use planning and transport network development.

• Improving institutional integrity: this is a nation-wide problem and is largely outside RAJUK’s control; it requires increased commitment and support from higher levels of government.

37. These issues are amongst those that induced the most unrelenting criticism from SRPG consultees and the media. Unless action is taken to address them, these criticisms will continue to hamper RAJUK’s attempts to improve its image and effectiveness.

38. More fundamentally most big cities have an elected Mayor and/or a representative council with an unequivocal democratic mandate to do the best job possible for city residents. Of course, this does not necessarily ensure that the best decisions are made, but the decision-making potential is there. Today, urban planning and management are rarely seen as being appropriate tasks for a civil service quango such as RAJUK. 39. However, in the case of metro-Dhaka, any substantial change to the current status of RAJUK as the pre-eminent urban planning and development authority may not be desirable in the short-term due to the disruption that would result from large-scale institutional re-structuring and the delays it would cause to implementing other, less controversial, proposals to address Dhaka’s urban challenges. Nevertheless, if the city is not to become completely unmanageable and RAJUK is to regain its lost credibility, it has to accept: (i) increased levels of accountability; and (ii) more substantive consultation and collaboration with city corporations and local governments. These elements of reform are discussed throughout this report.

4.1.5. RAJUK’s Finances 40. Since its establishment, RAJUK has been a very profitable organisation. Data gathered from recent annual reports indicate that the organisation has returned significant profits on both its revenue and development budget accounts over many years (Figure 4.1). This has enabled the RAJUK to accumulate considerable working capital reserves, which is nominally available for investment in new

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projects. The Annual 2010-2011 Annual Report indicates that RAJUK contributed less than 12% of its profits to the National Revenue Office, which is very low by international standards. RAJUK is therefore unusual amongst Bangladeshi public sector agencies in that it is largely self-financing due to the income derived from its land development operations.

Figure 4.1. RAJUK’s Financial Situation, 2005 to 2011

Source: RAJUK, Annual Report, 2010-2011; data for 2011-12 is unpublished. 41. RAJUK’s primary sources of income in 2011 were land transfer fees and interest on deposits which respectively contributed 62% and 19% of its total income. Also notable was the amount contributed by fines for unauthorised constructions – Tk. 85 million (5%); in 2011-12, this figure increased to over Tk. 200 million (11%) of revenue indicating both increased enforcement activities and a substantial new source of income35.

42. At the end of 2012, RAJUK’s net worth was in the order of US$89 million (Tk. 6.3 billion). This figure is based on the nominal worth of its land assets not the market value. There is no inventory of the current market value of land and property holdings of RAJUK. Based on the nominal value of its cash and financial assets, it returned over 25% on its working capital in both its revenue and development budget accounts. This figure is very high, indicating that the organisation is not using its capital particularly well.

43. Overall, RAJUK has the capacity to fund a much larger annual development budget works program by enhancing its revenue from developed land sales (it currently sells land well below market price and it obtains little in the way of contributions from developers) and expanding its development budget program of activities to help reduce the enormous backlog and demand for infrastructure, residential land and housing in the Metropolitan region, as it is mandated to do.

4.2. Other Urban Management Organisations in Dhaka 44. Table 4.2 summarises the findings from interviews carried out with other organisations involved in urban management in the DMR: (i) Dhaka City Corporation (DCC), now subdivided into DCC North and DCC South but not yet fully operational in this new configuration; (ii) Tongi, a fast-growing municipality in the north of the DMR; (iii) a lower level Union Parishads (UP) which are responsible for

35 In 2009-10, the income from fines was only Tk. 6 million.

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the non-municipal parts of the DMR; (iv) the MLGRD which has overall responsibility for municipalities and UPs and is currently implementing two major foreign-funded projects36 aimed at strengthening the capacity of local government to provide urban services (including town planning), enhance participation and transparency, and increase municipal revenue; (v) the Urban Development Directorate (UDD) and (vi) the National Housing Authority (NHA) - both come under MHPW (like RAJUK).

Table 4.2. Local Government Institutions: Implications for SRPG

Topic Summary Finding Relevance to study Institutional ƒ Dhaka City Corporation (DCC): recently split into ƒ Almost certainly the power of DCC within the Reform South and North divisions. metropolitan area as a whole will decrease ƒ Imminent creation of combined Tongi-Gazipur City following the split. Corporation. Long-running MLGRD projects ƒ New city corporation could facilitate pro-active (UGIIP, MSP) designed to upgrade governance and planning of whole area as per DMDP. service delivery. Clear national policy to enhance ƒ If the UPs remain independent, their local governance. administrations will need substantial upgrading. ƒ ‘Urban’ UPs have negligible reosurces. Incorporation into an existing municipality appears preferable. Financial ƒ Extremely limited: insufficient for basic functions ƒ Little potential to expand / enhance service resources and negligible potential for capital investment delivery without additional funding. (ALL) excluding specific projects implemented by other agencies (LGED, RHD, RAJUK). Urban ƒ DCC: Negligible at present due to lack of resources ƒ Effectiveness of planning activities could be planning and RAJUK mandate. increased and linked through RAJUK devolution ƒ Other municipalities (MUN): some capacity to proposals, e.g. by assimilation into MUN offices review planning applications and carry out thereby reinforcing MLGRD decentralisation enforcement activities; some use DAPs; largely policies. ignored by RAJUK. ƒ Overlapping of planning functions between ƒ In a few cases, plans prepared under MLGRD RAJUK and MUN, although in most cases, there projects may conflict with DAPs. is de facto separation, but not in the case of UPs ƒ No urban planning capacity in UPs. Applications within RAJUK area. will be routed through RAJUK but no enforcement. ƒ There is much greater expertise in plan ƒ UDD have substantial experience in plan preparation than plan implementation, hence preparation but little involvement in implementation. planning processes should be made consistent Increasing involvement with MLGRD projects likely. with available resources, i.e. simplified. The Urban ƒ NHA: responsible for housing policy; currently ƒ Like RAJUK, experienced in land and housing Poor preparing serviced plot schemes but recent projects development but not particularly involved in have not attempted to provide access to shelter for supporting access to essential low-cost and very- the urban poor. Little impact on housing demand. low-cost housing opportunities. Capacity ƒ DCC: no significant training programmes. ƒ Additional staffing and technical training, Building ƒ MUN: significant training programmes (UGIIP and especially in development control and MSP). enforcement, but also environmental issues. ƒ UDD has several trained urban planners; currently ƒ Capacity building programmes need to be longer second staff part-time to RAJUK to assist in DC. term if they are to achieve sustainable results. 4.3. Coordination between Urban Management Institutions in Dhaka 45. The issue of co-ordination between urban institutions ones is a perennial, and crucial, one; it was constantly raised during the team’s consultations. In 2005, a Committee for Urban Development chaired by the Principal Secretary to the Prime Minister was established to improve coordination between key urban sector institutions in Dhaka. Reportedly, the Committee rapidly became bogged down in day-to-day issues to the exclusion of policy issues and strategic, longer-term planning.

46. This Committee was replaced in 2007 by the Inter-Agency Urban Planning and Development Coordinating Committee. The DCC mayor is co-convener with the Minister MLGRD. This new forum is also said to be ineffective. The high-ranking executive level of the 17 nominated Committee members appears to present difficulties in relation to taking informed and objective technical decisions. Yet all

36 Urban Governance Infrastructure Improvement Project (UGIIP) (ADB loan) and Municipal Services Project (MSP) (World Bank).

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such committees need to be constituted at a senior level as decision-making authority is essential. But non-attendance is high with substitute staff with little decision-making authority. As a result the committee has met infrequently and there is little of the co-ordination needed to ensure that agreed/ approved development plans and strategies are followed wit parallel implementation of land development and infrastructure programmes. This is serious given that such co-ordination is essential and that RAJUK, DCC and the other DMDP municipalities have overlapping planning mandates and different agendas as do MHPW, MLGRD and MOC.

47. Issues of the lack of co-ordination and integration issues were also to the fore in a discussion with the Planning Commission in September 2012. Box 4.2 summarises the results of this discussion which concentrated on infrastructure planning and budgeting.

Box 4.2. Co-ordination Issues – Infrastructure Planning and Budgeting

ƒ The principal problem associated with budget coordination in Dhaka Metropolitan Area is that there is no formal process for development and utility agencies to coordinate their budgets and development programming efforts. ƒ While there are various sectoral and small-area development plans and development programmes for Dhaka, there are no global assessments of: a) required infrastructure investments within any given period; or b) financial resources that might potentially be mobilized during this time. Consequently, there is no spatially coordinated global programming process which matches priority investments - by all agencies, against optimized income generation – from all sources. ƒ RAJUK is subject to restrictions on the use of budget surpluses and cannot use profits to subsidise social infrastructure. RAJUK’s metro-scale mandate requires, at the very least, rolling sub-area investment programmes based on priority infrastructure and service needs and regular demand assessments. The present ‘project-based’ system marginalises the remaining 80% of the city. ƒ City corporations and local governments can provide very little support to the urban development process because they are denied essential operational income through the absence of a rational land and property tax base. In this sel-fulfilling context of minimal professional and financial resources, they are unreasonable marginalised. th ƒ The Planning Commission is required to evaluate annual development budgets within the context of the 6 Five- Year Development Plan and does this on a sector basis. As a result there is no integration of annual development budgets for the DMR, or revenue budgets for that matter. ƒ The economic/spatial priorities for investment in the DMR are made that much more difficult because there is no economic development plan for the region, to help guide the investment and development activities. If such a plan were prepared, the Planning Commission would be able to determine spatially which development projects should be given priority and to ensure the integration of annual development budgets. This would lead to more efficiency in the delivery of publicly funded projects and other development activities across the region.

48. The current situation does not mean that coordination committees are unfeasible37. Indeed they provide arguably the best short-term option for improving a more co-ordinated approach to development in Dhaka if provided with stronger mandates and greater decision-making powers. In the longer term, a more formal institutional is likely to be required.

4.4. Other Cities

49. Fact finding visits were made to the cities of Chittagong, Khulna and Rajshahi in May 201238. The objective of these visits was to assess the extent to which the institutional and planning issues identified in Dhaka also occurred in the other major cities of Bangladesh. The findings are summarised in Box 4.3.

37 The complex, multi-sectoral Hatir Jheel Integrated Development Project which is nearing completion required substantial inter- agency co-ordination. 38 A list of these meetings is contained in Annex A.

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50. In summary, other DAs and CCs are subject to many of the same problems as those identified in Dhaka, In general however these problems are less acute due to: (i) lower growth pressures; (ii) more widely constituted boards for the DAs which enable greater accountability and oversight; (iii) greater levels of DA/ CC co-ordination. In Rajshahi in particular, innovative approaches to land development and the collection of betterment levies are being implemented.

Box 4.3. Summary of Findings: Other Cities

ƒ lack of resources of Development Authorities (DAs) and City Corporations (CCs); Similarities ƒ lack of democratic oversight of DAs; ƒ lack of financial autonomy of DAs; (iv) conflict/ overlapping responsibilities between DAs and CCs; ƒ lack of resources for development control/ enforcement; ƒ lack of funds/ know how for pro-active planning. As a result all the cities are largely growing in an unplanned way.

ƒ Problems less acute due to lower growth pressures in these cities, although increasing in Chittagong. Dissimilarities ƒ Other DAs more concerned about development of city and not just land development as is the case in Dhaka. ƒ DA boards are more democratic as they include other agencies, civil society and private sector. ƒ Co-ordination generally greater (staff attend each other’s meetings) but distrust remains: DAs tend to criticise CCs and vice versa. ƒ In Rajshahi, relative strength of mayor and weakness of RDA means that he (mayor) is influencing RDA activities; he also is ensuring co-ordination with other agencies, e.g. RHD and WASA. ƒ Rajshahi, at the behest of the Mayor, are trying to promote a land re-structuring project which involves consultations with local communities and the provision of plots to those affected. They commented that it was difficult but that progress is being made – direct acquisition is both expensive and creates social disquiet. ƒ Rajshahi applies some land betterment levies where owners’ land development potential increases as a result of a new road.

4.5. The National Policy Context

51. Bangladesh Vision 202139 has the overall goal of transforming Bangladesh into a middle income in real terms as well as a high HDI country by 2021. Several components of this vision and associated objectives and targets relate directly to the issues raised in this Chapter. Table 4.3 summarises relevant Vision 2021 key objectives and policies.

Table 4.3. Bangladesh Vision 2021 – Selected Objectives

Sector Bangladesh Vision 2021 ƒ To reduce burdens on the urban environment and to make cities liveable through provision of Urbanisation better urban amenities. Transform slums into legitimate communities. Goals - ƒ ƒ To improve the lives of poor urban people and promote equity. General ƒ To strengthen urban governance.

39 GOB/ Planning Commission, 2010, Outline Perspective Plan of Bangladesh, 2010-2021: Making Vision 2021 a Reality.

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ƒ Institutions of the State and Administration will be freed from partisan influence. The basis of Governance - appointment and promotion will be performance, commitment, efficiency, honesty and loyalty. General ƒ Local government will be given due importance with a view to effecting radical change of the political system. Local government institutions will play a critical role in governance as well as in development programmes. ƒ Effective urban governance …. involves enhancing the capacity of city and local authorities Governance – to partner with the private sector and civil society in delivering services and promoting economic development……. Urban ƒ As lack of coordination among the activities of different organizations can create hindrance to proper urbanization, role of the relevant organizations need to be clarified and an effective mechanism developed to coordinate their activities. ƒ To improve the lives of poor urban people and promote equity. Poverty and ƒ To reduce the number of people below poverty line to 15 percent of the total population. Housing ƒ To transform slums into legitimate communities. ƒ To ensure living accommodation, supply of pure drinking water and sanitation for the entire population as soon as possible. ƒ Protection and enhancement of the environment, effectively meeting the challenges arising Environment from the intensifying climate change and addressing other environmental degradation issues. ƒ To reduce burdens on the urban environment and to make cities liveable through provision of better urban amenities. ƒ [Promote the] best utilization of the available land, arresting and reversing the land degradation process…Also, especially for urban areas, further unplanned growth needs to be stopped……. ƒ Sound infrastructure is essential to realizing the Vision. The efficient and safe movement of Infrastructure people and goods needs well-built, efficiently operated, and maintained physical infrastructure and transportation systems…. In addition to well-planned urbanization, attention will be given to multi-modal transport [systems]. NB. Some para-phrasing by the Consultants. Source: Bangladesh Vision 2021.

52. The objectives of greatest relevance to this study are:

• Strengthening local governance, i.e. the democratically elected local government units (LGUs). There is no mention of RAJUK or other development authorities in Vision 21.

• The need to address the needs of the poor, and to include them in all development planning and projects.

• The need to pro-actively, and urgently, tackle environmental issues. • The importance of infrastructure development and planned urbanisation.

53. The importance of local government involvement in the provision of local services, including planning, is also stressed in the 6th 5-Year Plan states: “Thus, a key institutional reform during the Sixth Plan is that the municipalities and city corporations will be organized to manage their functions on the basis of elected representatives. For the urban centres of Bangladesh to be dynamic growth centres, it is essential that they have elected and accountable municipalities and city corporations with clearly defined responsibilities. They must be able to attract private investment and mobilize public resources based on service delivery and the quality of the city environment.”

4.6. SRPG Implications

54. One of the most important implications for the study is the Vision 2021 policy that local authorities need to be granted increased powers and autonomy to provide the local services required by

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their electorates40. Yet this policy of strengthening the capacities of municipalities and city corporations runs counter to the powers given to the Development Authorities, of which RAJUK is the prime example, which have very little democratic control. It is also inconsistent with recent proposals for new development authorities in Barisal and Sylhet. The situation is further complicated by the overlapping planning mandates of local governments and development authorities.

55. Furthermore, SFYP comments on the Development Authorities indicate that their effectiveness is highly limited:

“Development Authorities: ……. separate planning and development organizations were created for the cities of Dhaka (RAJUK), Chittagong (CDA), Khulna (KDA) and Rajshahi (RDA). ……. The effectiveness of these authorities, however, is generally limited by such factors as inadequate management and financial systems, multiplicity of institutions with urban development function within their jurisdictions, uncoordinated development, lack of integration with other agencies, inadequate manpower and lack of public participation.”

56. Yet, municipalities presently do not have the financial or technical resources to effectively provide even basic services let alone generate the finance necessary to implement the infrastructure programmes needed to manage future growth. Again from the SFYP:

The key constraints to the effective functioning of the municipalities and city corporations are unclear mandate and service responsibilities; lack of accountability; weak finances and financial autonomy; poor coordination and control among service agencies and weak management. These problems call for a major rethinking and wholesale change in the management of these entities and their enabling environment.

57. RAJUK is therefore not alone in being unable to deliver an effective urban planning service. Nationally, plan-making (usually entrusted to consultants) is far greater than plan implementation and enforcement capabilities. Very few municipalities have more than one planner - grossly inadequate for large and often rapidly growing urban centres. Yet without this, the utility of legally approved plans is sharply reduced. This implies that plans and development control processes need to be tailored to the technical resources available, i.e. simplified.

58. RAJUK’s recent changes and current proposals are clearly steps in the right direction and will begin to address several of the critical issues. And RAJUK, through the revenue generated by its land development activities, does have the potential to deliver a more effective planning service41. However a combination of lack of willingness, restrictions on the use of funds, and the policy of selling plots at well below market value means that this potential has yet to be seen.

59. These changes are however likely to be insufficient to allay the doubts of its numerous critics, and especially those directed against RAJUK’s land development operations and the power it has to decide what land can and cannot be developed. Yet the weakness of municipalities and other urban development agencies clearly implies that simply shifting responsibilities to them will be unsuccessful. Similarly, considerable effort will be needed to enable RAJUK to become an effective planning authority but this will be no different from the effort needed to enable any new agency to assume this responsibility.

40 This policy of empowerment of local authorities is now found in almost all developed countries and many developing ones. 41 In 2010-11, RAJUK had a surplus of income over expenditure of Tk. ½ billion ($15 million).

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60. But increased adherence to plan policies, greater technical and financial resources, are insufficient to tackle the issues facing the Dhaka and the other rapidly growing urban centres of Bangladesh. For development to become more sustainable, there has to be an increased emphasis on pro-active planning, i.e. encouraging and enabling development to go where the plan wants it to go (as opposed to restricting it in areas that need to be protected). This requires not only a dramatic increase in inter-agency co-ordination but a more collaborative relationship with both land owners and the private sector (who will continue to produce the great majority of Bangladesh’s new housing) and the sustained allocation of financial resources.

61. There can therefore be no doubt that further major changes will be required. But to believe that these can be effected through institutional reshuffling appears highly unrealistic. And, given the often conflicting agendas of different government ministries and developers, such changes will require a high degree of political will. Political commitment will also be needed to curb the pernicious impact of ‘outside influence’42. Without higher level reform, it is difficult to see how these outside pressures would not simply be transferred to any agency taking on some or all of RAJUK’s current responsibilities.

62. In summary, the crucial issues that arise from this Chapter and which will need to be addressed in the Study’s proposals are deemed to be the following:

• Strengthening RAJUK to enable it to better fulfil its mandate. • Increasing RAJUK’s accountability through greater oversight and enhanced transparency of its operations.

• Addressing the issue of the overlapping responsibilities for the delivery of urban planning services between DAs and LGUs with a degree of devolution to the LGUs.

• Substantially improving inter-agency co-ordination.

63. And, if there is one over-riding lesson to be drawn from the current experience of Bangladesh’s other major cities, it is that there are already precedents for addressing some of these issues.

5. THE LEGISLATIVE CONTEXT

64. Component A of the TOR requires the preparation of new or amended town planning legislation together with either draft legislation for a Land Readjustment Act and/or regulations and guidelines for land readjustment. Accordingly this section contains a review of current legislation, identifies shortcomings in this legislation, and sets out the key issues should be addressed in new or amended legislation.

5.1. The Town Improvement Act (TIA), 1953 and Subsequent Amendments

65. The TIA has provided the legislative backing to RAJUK’s operations since its creation over 20 years ago. It has long been recognised that this Act requires substantial revisions43 to incorporate necessary changes to RAJUK’s modus operandi and to establish a planning system that capable of addressing Bangladesh’s urban problems of the late 20th and early 21st centuries. RAJUK too is aware

42 I.e. whereby current policies and decisions on priority projects are subverted by influential persons. 43 Drafts of new Planning Acts were prepared in the 1980s and 1990s but were never enacted.

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of the TIA’s shortcomings and, in all discussions, wit the SRPG team, have stressed that the TIA needs to be amended. 66. Criticisms of the TIA arising from the interviews undertaken by the SRPG team, are summarized below:

• the main provisions of the TIA are based on the Calcutta Improvement Act 1911, adapted for use for Dhaka in 1953. A law which was apt for the planning and management of a relatively small provincial city some sixty years ago is no longer adequate for the planning and management of a mega-city which is the capital of Bangladesh;

• there are no provisions in the law which would allow for the development of a regional economic planning context to urban plans, or for any kind of strategic overview to provide an appropriate context to detailed planning;

• there are no clear principles of urban planning or development set out in the law; for instance, no references to sustainability; to positive planning to stimulate and encourage economic growth and development; or to justice and equity in development;

• the law is very vague and general on the mechanics of the implementation and enforcement of a master plan. So it is by no means clear that the detailed arrangements and Interim Planning Rules set out in the Dhaka Metropolitan Development Plan 1995 – 2015 (DMDP) could be provided for under the provisions of ss. 74 and 102 TIA. (In the event, no legal arrangements have ever been made to bring the Interim Planning Rules into operation so that such attempts as are made to apply the provisions of the Plan may be found to have little or no legal backing);

• there are other laws, particularly the Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008 which contain powers that overlap with the TIA so that issues of who may do what impede coherent implementation of the law;

• there are no provisions for any citizen involvement or participation in the planning of the city. Where once there was the possibility of citizen input via elected local authorities, the substitution of RAJUK for the Dhaka City Council (and equivalent urban development authorities in three other cities in Bangladesh) has eliminated that avenue for citizen participation in plan preparation and implementation;

• the provisions of Chapter III of the TIA on Improvement and Rehousing Schemes are not adequate for the need to address the challenges of informal urban settlements in Dhaka;

• there are inadequate provisions for transparency in the operations of RAJUK and for the accountability of RAJUK to the citizenry;

• there are no effective provisions in the TIA on the land development and land transactions functions which RAJUK has assumed over the years.

5.2. Review of the Proposed Urban and Regional Planning Act, 2012 (URPA) 5.2.1. Background 67. This Act has been prepared by UDD and will provide a legal framework for urban planning throughout Bangladesh. It was first drafted in 2006; a revised version was prepared by UDD in 2011 and sent to Cabinet who requested some revisions. A ‘final’ version was made and then sent back to Cabinet. UDD are now awaiting cabinet approval before sending it to the Ministry of Law for final legal drafting after which it will be presented to parliament. The current draft URPA is much

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shortened from the 2006 version as it excludes any accompanying regulations. This is the version that has been reviewed by the SRPG team44. 5.2.2. URPA in Summary 68. The main provisions of the draft Act are contained in chapters 4 – 6 and schedules 1 and 2. With respect to planning the government may appoint a government agency or a local authority to be a planning agency for a specific area and Subject to any general or special direction of the Directorate issued with the approval of the Government in respect of the scope, nature, time frame, subjects and manner of planning, an area planning agency shall engage in a continuous process of physical planning in respect of the area within its jurisdiction, having regard to physical planning and development in surrounding areas.

69. These provisions are a major improvement to the current plan-making processes of RAJUK. Consultation and hearings are made a part of the law and an independent expert body is empowered to require more work and ‘substantial modifications’ to a plan if it considers that this is necssary. The law does not specify whether any hearings on the draft plan are to be in public but the matters on which rules made be made under the draft Act are wide enough to permit this. Plans are to be published and the public are to have access to them.

70. Development control is subject to the same legal regime. A development control agency will be appointed by the government and it will be the norm that the same body that has been appointed as a planning agency will be appointed as a development control agency – although this does not have to be the case.

71. A development control agency is to frame either general development controls45 for its area or special development controls. General development controls cover a wide range of matters set out in a schedule embracing both development and material changes of use of buildings and land. Both public and private development come within the scope of development control. Two development control functions are worth quoting:

A, Procedure for the administration of general development controls, including requirements of permission or sanction for development on any specified aspect of development with provision, where appropriate, for exemption from such requirement.

B. Conditions subject to which development permission may be granted, including conditions relation to – (a) compliance with certain features of plans approved for development; (b) the time for commencement and completion of development; (c) protective measures to minimize adverse impacts on the community or the neighbouring property; and (d) future operations and maintenance of development.

44 No English version of the current URPA exists; accordingly a translation of the Bengali version was prepared by the team. 45 It would be preferable if the law referred to a ‘scheme’ or ‘order’ of development control since as it stands the term is being used in two senses; the total set of rules and procedures of development control and the specific matters which add up to or ae examples of development control.

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72. The provisions for special development controls, it has to be said, are not very clear. They may be adopted either on the application of a person having an interest in the land or on the development control agency’s own initiative. To quote the provisions of the draft law, they may relate to a particular site or sites where- (a) the site or sites are not covered by any regulations specifying the purpose or purpose for which the land may be used; (b) the development has any feature which does not permit compliance with the general development controls; (c) the development requires the division of land into two or more plots; or (d) the development is allowed subject to special standards which may be applied only if the development meets certain conditions or criteria specified in applicable general development controls.

73. Potentially, special development controls could be a powerful tool to facilitate major developments on ‘green field’ sites, e.g. new industrial estates – where there would need to be special provisions covering environmental regulation and, possibly, the provision of accommodation and facilities for employees, i.e. almost a new town scenario. That this may be the aim of special development control is strengthened by the following provision that before making any special development controls, a development control agency shall on the basis of the information and analysis, make finding, as appropriate, relating to- (i) the economic impact of the proposed development on the owners of the site and of the affected lands; (ii) the suitability of the site in the light of its location, the nature of the proposed improvements, and the proposed use; (iii) any other features of the development which are likely to be affected by public development programmes or public facilities, or are likely to have adverse or beneficial effect on the safety health or welfare of the general public or of owners or occupiers of neighbouring land; and (iv) prepare a planning statement containing a summary of such finding and of the reasons for any departure…from plan objectives or guidelines.

74. Special development controls are a major and positive innovation and could have a significant input into developments within the RAJUK area.

5.2.3. The Substance of URPA 75. The general principles which should inform any law providing for land development are that any legal input into an urban land planning and development system should aim to encourage, strengthen or introduce a system which is: (i) equitable and socially responsive, (ii) flexible, (iii) environmentally conscious, (iv) participative, efficient, affordable and administratively fair46.

76. While these basic principles are applicable to any administrative and legal input into the urban land development process, the way that they are incorporated into the legislation will naturally differ

46 First published as Institutional and Legal Arrangements for the Improved Administration of Land Development, (1992) 13 Regional Development Dialogue, United Nations Centre for Regional Development, Nagoya, Japan, pp. 14 – 32. The consultant was the Land Management Adviser based in UN-Habitat to the UMP 1990 – 1993; and Co-ordinator of the Programme 1992 – 93.

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from society to society, depending on the circumstances of that society and its fundamental political philosophy or basic urban policies. The following paragrpahs assess how URPA measures up to these principles.

Equity and Social Responsiveness 77. It must be said that URPA concentrates on planning and development control at national level and with institutional arrangements. It is not concerned with the need to address the issues of the urban poor. They may be addressed in the plans prepared under the law and it may be that special development controls could be used to develop land for housing and livelihood development for the urban poor, e.g. through land readjustment schemes, but URPA as such does not deal with this issue.

Flexibility 78. On balance URPA scores quite well on this or at least it has the potential to score quite well. There is no requirement in the law that all the types of plans which may be prepared have to be prepared. Different planning authorities will prepare different sets of plans. The provisions on development control have a very welcome degree of flexibility built into them. While the matters that can be made the subject of development control are set out in Schedule 1, the actual rules which are made are left to the various development control authorities to determine and they are required to have regard to the circumstances of their area. Special development controls, as has been noted, have the potential to be a major breakthrough in using development control as a positive tool for development. Development control does not have to wait for a plethora of plans to be made; with a planning statement to justify it, development controls can be made in the absence of plans.

Environmental Consciousness

79. URPA is neutral to deficient on this. The law establishes planning agencies and empowers them to make a variety of plans. It does set out the very broad heads of the matters which plans should address but the environment does not specifically feature in those broad heads. The main thrust of the plans is to be growth and development. The law does not prevent planning authorities from having regard to environmental issues in preparing a plan but given the central importance of the environment particularly in Dhaka it would have provided a more rounded view of what plans should focus on if the environment had been specifically mentioned.

Participation and Ease of Management/ Operation 80. Compared to the TIA, this law is a major step forward. The private sector has to be consulted on the making of plans; there have to be hearings on draft plans and draft development controls ‘schemes’. It is clear too that private persons can come forward with proposals for special development controls. In theory therefore, a neighbourhood group could get together and propose a special development control regime for their area if they could bring the area within the four corners of the provisions of the law, a fortiori with a squatter settlement. As regards easily manageable, this will rather depend (a) on the number of plans different planning agencies decide to make and (b) the speed at which the NPPC and other sanctioning authorities undertake their part in the process. If plans stack up unsanctioned, then the system might break down. There is a safeguard however which could be used: development control can proceed in the absence of plans. On balance then this principle has been met

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though it remains to be seen how the new system will operate in practice.

Simplicity 81. It is not really possible to pass judgment on this. The law is well drafted and sets out a clear administrative system: planning agencies and development control agencies will be the same agency. If they are not, then the law provides for negotiations to sort things out which does suggest the potential for a lack of simplicity. If planning agencies take in into their heads to make plan after plan and development control agencies have complex systems of development control, then the system will be anything but simple. A great deal will depend on UDD and the NPPC to ensure by their policies that they rein in the agencies and ensure that they do not over plan and regulate.

Efficiency and Affordability 82. This principle is in a sense the counterpart of simplicity. A simple system will be affordable and probably efficient. The law allows for efficiency and affordability; it will be for UDD to ensure that in practice it is. One matter which is a worrying gap however is that nowhere in the provisions on planning is there any reference to the affordability of the content of the plans. The stress is on physical development plans of various kinds; how they can be implemented appears not to be on the agenda. If it is possible to rectify this in the draft law, it should be as a matter of urgency. For plans to have any relevancy they must connect up with the resources likely to be available for their implementation.

Administrative fairness 83. On balance URPA is a lot better than TIA here. Hearings, especially if they are in public; notice to be given before action is taken; the publication of official documents and their availability to the public are all plusses. Minuses however include the absence of any system of appeals (which were provided for in the 2006 version); no clear provisions for hearings being in public or for the public to be able to attend meetings of development control agencies to consider applications for development or for the opportunity to comment on propose developments. No specific provisions exist for a register of applications and decisions which would be a useful addition.

84. Overall URPA scores reasonably on when judged on the principles set out in this paper. Where it does not is on equity and fairness with respect to the urban poor. Other matters might be able to be provided for by rules made under the law or by ensuring that practice accords with the relevant principle.

5.3. Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008 85. Review of this document concentrated on the provisions for committees as these are important in the overall planning process and as a potential approach to providing outside oversight of the RAJUK board. In short, the Consultants have some considerable concerns about the two committees provided for in the Rules. The Building Construction Act 1952 provides by section 18 that: “18. (1) The Government may make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for al or any of the following matters:-(a) the constitution of a Building Construction Committee; (b) the tenure of office of members of the Committee; (c) the resignation and removal of members of the Committee; (d) the filling of casual vacancy and the tenure of office of the person filling such vacancy; (e) the regulation of functions of the Committee including the procedure and conduct of business at its

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meetings.” 86. It is difficult to see how the two committees referred to in the 2008 Rules – the Town Development Committee (TDC) and the Large Development Committee (LDC) - can be brought within the scope of the Building Construction Committee (BCC) which the Act permits to be established. Given that the Act is about building construction and its regulation, it must necessarily follow that any committee established under the Act must also deal with the same subject matter. But these two committees go way beyond just the regulation of building construction. In particular the Town Development Committee has the following functions:

“a. as a high powered committee it will recommend on future principles of all development and development control of the Dhaka Metro City b. Supervising the co-ordination of construction and development work with Building Construction Rules. c. Provide directions of such matters which are not covered by these Rules d. to secure the transparency, quality of all building construction activities. under the RAJUK master plan area. e. Implementing the rules maintain equality and justice f. disposing appeals.”

87. (a) and (f) certainly cannot be brought within the scope of building construction and regulation and (c) is also doubtful since it seems to be providing for the TDC to add to the regulations made under the Act which would contravene section 18 of the Act. It is principally for this reason that the two committees have been reconstituted under the draft TI(A)A and in doing so tidied up and in the case of (f) above greatly expanded the provisions since they did not provide any proper arrangements for appeals. A separate chapter has been written providing for appeals

88. More to the point however is how does the TDC fit into the structure of urban governance in the RAJUK area? It has been established under Rules which are specified as being applicable to the “planned area of Dhaka Metropolitan city”. It might be queried whether in these circumstances the Rules apply to the RAJUK area (despite paragraph (c) of Rule 35 which is probably itself ultra vires) so to the extent that they are being so applied and actions adverse to landowners and developers are being taken outside the limits of Dhaka Metropolitan City (whatever that is) by RAJUK, these actions are probably ultra vires the body that is taking the action.

89. The TDC seems to have been established as a kind of counterweight to RAJUK. But it may be more than an advisory committee to RAJUK. Paragraph (a) of Rule 35 does not refer to RAJUK; the DC is a “high powered committee [which] will recommend on future principles of all development and development control of the Dhaka Metro City” but there is no indication as to which body the TDC is to make its recommendations, nor what attention is required to be paid to such recommendations. It might also be noted that if the TDC is to make its recommendations to the Government, this does rather conflict with some of the functions of the Urban & Regional Planning Council under the proposed Urban and Regional Planning Act.

90. The TDC’s other principal function is the supervision and control of construction and development as to which Rule 37 states: “(1) a complaint or sue motto committee with competent professional may inspect the constructed or under construction building under this rule

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(2) during inspection if any discrepancy found in that event applicant/ planer/ architect/ engineer/ owner of land will [be] brought to the justice and the committee will recommend for punishment which will be mandatory for the authority to execute. (3) For discrepancy under sub rule-(2), any negligence by the supervising staff of the authority will also [be] brought to justice and the recommendation of the committee is binding upon Authority to take action.”

91. This is just about comprehensible but it is in no way realistic. The TDC itself can’t go round checking on constructions; its membership is not technically qualified to do this and they are not employed full-time. There is no provision in the Rules for the TDC to employ technical staff nor are there any provisions for linkages with e.g. RAJUK or Dhaka Metro City to use their staff to carry out the TDC functions on this. So the TDC has an important function but not it seems the wherewithal to implement it.

92. Establishing the TDC and the approval committee for LDCs in the TI(A)A will remove the taint of probable illegality from these two committees. The approval committee for LDCs is a good innovation and some slight amendments are made to the provisions to ensure that RAJUK is not approving its own Large Developments.

5.4. Enhancing the Planning Legislation 5.4.1. Relationship to Current Legislation 93. The question however arises as to how our proposals should be integrated into the existing legislation. The existence of URPA in its almost final guise renders unnecessary the preparation of a new Urban Planning Act (as suggested in the TOR). There are thus two basic options: Option A: Preparing rules and regulations for an enhanced planning system which are directly related to URPA (and will thus have national applicability) AND making changes to the TIA to improve RAJUK’s operations; OR Option B: Concentrating on a more comprehensive series of amendments to the TIA which cover both organisational and technical proposals.

94. Given that the TOR’s primary focus is on Dhaka (where the country’s urban problems are greatest) and RAJUK’s request for an improved TIA, we consider that Option B is preferable as it will provide a comprehensive and self-contained framework for urban planning for Dhaka. A TI (Amendment) A will also include proposals relating to land readjustment, also required by the TOR and specifically requested by RAJUK. This TI(A)A could also be applied in whole or in part fairly easily to the other development authorities (Chittagong, Khulna and Rajshahi). Furthermore, several of the proposals that will be contained in a TI(A)A could also, if so desired, be turned into rules and regulations linked to URPA with relatively little redrafting and would thus have national applicability. To have adopted Option A would in our view, result in a far less clear-cut situation (as the TIA would exclude the proposals directly related to the planning system) which would leave RAJUK (or its successor) having to deal with two pieces of legislation in order to operate – this is clearly undesirable.

95. The decision was also taken that proposals for land readjustment should be incorporated into the TI(A)A and not constitute a separate piece of legislation. In this way, the TI(A)A will constitute a comprehensive piece of legislation. Furthermore having three separate pieces of legislation (the URPA, the TI(A)A and the LRA) requiring finalisation and enactment would lead to delay. It would also be a

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relatively simple legislative matter to make the land readjustment proposals applicable nationwide if the Government should so wish.

5.4.2. The Key Issues 96. Any attempt to improve the legislation related to urban planning must not only incorporate the basic principles of substance described above but must also address the key planning issues (technical and institutional) which have been summarised in preceding sections of this report. These issues are summarised below:

• the structure and basic legal arrangements of RAJUK (as the current planning authority for metropolitan Dhaka) to increase its transparency and its accountability to the citizens of Dhaka, and its co-operation with constituent local authorities within its area of jurisdiction;

• a complete rethink on the nature of the planning process to provide for o specific reference to regional planning; o greater connection between resources available to implement a plan and the contents of a plan; o greater citizen input into the plan-making process; o greater involvement of local government bodies in the making and implementation of plans; o a more flexible approach to the content of plans – more matters which may be provided for in plans but greater freedom to determine whether they should be and at what level of detail;

• a revamp of the system of development control (application to develop land) to o speed up the process; o be much clearer on what is forbidden and what is permitted o reduce the need for obtaining permission to develop; o provide for arrangements for the delegation of powers to local elected bodies; o increase publicity for applications and transparency in decision-making; o widen the powers of the authorities (with appropriate safeguards) with respect to the making of agreements with developers with respect to development with special reference to private sector contributions to the public infrastructure costs of development – the use of impact fees;

• a more effective system of compliance with a greater range of procedures and powers to facilitate, encourage and compel compliance;

• provisions to provide for urban renewal, regeneration and transformation with respect to informal and ‘illegal’ settlements to improve the housing and livelihoods of the urban poor.

97. Only in respect of this last matter are there recent reports47 drawing attention to the need for new policies and setting out specific proposals for action based on those suggested policies. These proposals affect the whole urban planning system. Both reports stress the need for simplifying administrative systems, reducing costs of entry into the legal land system, and creating a more flexible and pro-user planning system.

47 J., 2007, Dhaka: Improving Living Conditions for the Urban Poor, , World Bank AND Salma A. Shafi and Geoffrey Payne (2007) Land Tenure Security and Land Administration in Bangladesh, Final Report, submitted to LGED, UNDP and UN-Habitat, Nairobi,

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5.4.3. The Content of the Proposed TI (Amendment) Act 98. Volume 2 of this report presents the proposed TI(Amendment) Act in full alongside a commentary summarising its provisions and the rationale for them. A shorter summary is contained in Chapter. The proposed legislation has two objectives: (i) to update and enhance the quality of Bangladesh’s urban planning legislation and secondly, to provide the legislative backing for SRPG proposals that require new legal provisions.

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6. REGIONAL ECONOMIC DEVELOPMENT

6.1. The Context

6.1.1. The Role of Government in Economic Development 99. Economic development is one of the pillars of sustainable development. It creates the jobs that enable households to cater for their basic needs and better themselves by obtaining the income necessary to provide their children with education, finance marriages and funerals, and look after their health. Of equal importance, economic development provides the government with the funds needed to provide infrastructure, education and health care, finance social protection programmes, maintain security, and develop disaster mitigation measures.

100. In the last 30 years, the role of governments in economic development has substantially changed. Whereas previously, governments sought to control and direct both the type and location of economic development, e.g. through subsidies and incentives, direct investments and strong regional policy, nowadays, in the great majority of countries, economic policy is now focussed on promoting, encouraging and supporting the private sector as the main engine of economic growth and development. This change reflected the increasing realisation that, in this increasingly globalised world, neither countries nor cities can determine the amount of economic growth that will arise, they have to compete for it by establishing the conditions most likely to encourage investment, whether from domestic or foreign sources. Bangladesh is no exception to these trends. It is integrated into global economy both directly through its garment and other industries, or indirectly through remittances sent home by its expatriate workers. Similarly, very few of the economic policies contained in the 6th FYP have significant interventionist elements. In short, economic planning is now is less about the planning of economic development, and more about planning for economic development.

101. Many aspects of government policy can be linked to the overall objective of creating the right enabling environment for continued investment. Examples are providing the security and environment necessary to attract foreign investors (or visitors in the case of tourism), developing an education system that provides new job seekers with the skills required by potential employers, reducing the red tape needed so that businesses can establish themselves quickly and operate efficiently. These are however not of direct relevance to this study where the focus is on the relationship between economic development on the one hand and land use/ spatial planning and its associated institutional framework on the other.

6.1.2. Spatial Planning and Economic Development 102. Good spatial plans, and their implementation, can encourage and support economic development in a number of ways:

• By fostering the development of agglomeration economies, spatial integration of production systems and supply chains, and industry clusters, e.g. through the development of industrial areas48.

• By providing the necessary infrastructure both locally and urban-wide in order to reduce operating costs, e.g. through good transport networks.

48 A point specifically made during interviews with private sector stakeholders.

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• By adopting flexible locational policies and efficient development control systems. • By creating stability to property markets through effective land delivery. • Being flexible enough to respond to new investment trends and changes in technology, consumer behaviour, social values and information/communications systems.

103. On the other hand, the failure to integrate spatial planning and economics results in significant inefficiencies in the design and operations of cities, leading to poor basic urban and regional services, high land development and operational costs, loss of competitiveness and wasted use of precious resources, such as land and water.

104. The economy of DMR is growing rapidly, but not sustainability. The lack of effective strategic planning and programming for the provision of basic economic infrastructure, land management and development has resulted in the development of a mega-city of some 12-15 million people struggling to manage its growth and increasing environmental and social problems. Like many mega cities, Dhaka is developing into a network of dispersed polycentric inadequately planned settlements which is resulting in spiraling costs of basic urban services and increasing transaction costs to key industries that are driving regional economic development and employment growth. If this situation continues, ultimately many of the utilities and functions of Dhaka region could experience systemic failure.

105. For cities to be dynamic, vibrant, clean and healthy places in which to live and do business, it is essential that government creates the enabling environments which enable people to invest and go about their business with ease and minimal disruption. The World Bank Cost of Doing Business Report, 2012 ranks Bangladesh well behind other South Asian countries on many of the indicators used to assess overall city competitiveness. Factors for which Bangladesh, and by implication Dhaka, rank poorly, include: provision of electricity, registration and property rights, and payment of taxes49. Several of these problems can be attributed to:

• Failures in the current urban governance and management system. • RAJUK’s failure to achieve the integration of planning, programming of development projects and funding arrangements crucial to develop the growth areas identified in the DMDP. • The inadequate attention paid to economic development issues in the DMDP and the DAP, most notably the failure to plan, and establish new industrial areas.

• Overly ambitious infrastructure proposals that concentrated on ‘big-ticket’ projects which were well beyond the capacity of the national, let alone regional government, to fund and the failure to establish the necessary secondary networks supporting trunk infrastructure services. • Low municipal revenues, linked to low tax rates and poor collection levels, severely limits the capacity of local authorities to finance and maintain necessary local infrastructure and other services.

49 In a just published analysis of global city competitiveness by the Economist Intelligence Unit Dhaka ranked 3rd last out of 120 world cities; http://en.wikipedia.org/wiki/Global_city .

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6.2. Economic Governance

106. Economic governance is a broad term. It is concerned with the interaction of the formal and informal rules that societies and communities use to manage and allocate the necessary resources for the purposes of production and delivery of public goods and services to support the development of national and sub-national economies. Economic governance is also concerned with providing incentives, enhancing business practices and changing people’s behaviour to shape local and national economic development outcomes. Economic governance involves the integration of economic policy, resource management, organizational arrangements and responsibilities needed to ensure the most effective and efficient delivery of public and private services to support economic development.

107. Institutions are central to the way a country and sub-national jurisdictions are governed. Institutions are responsible for setting the formal rules through laws and regulations for conducting business, enforcing codes of conduct and practices, service delivery and knowledge sharing, and determining the input from civil society so that the economic development goals of the planning process are shaped by residents’ aspirations rather than just political and technical considerations.

108. Bangladesh has many agencies involved directly in economic governance, e.g. the National Planning Commission (NPC), but their impact on local economic development is generally limited. The NPC, RAJUK and DCC are not involved directly in influencing local economic policies, development activities which respond to business and industry needs. Nor do they seem interested in engaging in inter-agency co-ordination and integrated planning necessary to solve serious urban development problems now confronting Dhaka. The failure of economic governance will significantly affect Dhaka’s and other larger cities in the country future, reducing economic growth prospects and competitiveness.

109. The same goes for local authorities. Thus RAJUK has not been able to establish an effective co-ordination mechanism with other agencies necessary to achieve the integration of planning, programming of development projects and funding arrangements crucial to enabling the sustainable expansion of Dhaka and its economy. Similarly, DCC (now split) and the transport authorities have been unable to deal with the traffic congestion which is costing billions of taka in lost logistics time and unnecessary fuel consumption.

110. Worldwide experience shows that the most successful cities generally have high levels of local autonomy. Local governance can only succeed in a non-command and liberal government environment. Sustainable human development requires people to act as participants as well as the beneficiaries in planning development. Transparency and accountability will contain (if not eliminate) corruption in local government. Development agencies seem indifferent to embracing changes that will introduce e-based systems which will ensure greater transparency in both financial, knowledge transfer and public policy development. As a result, the transaction costs of business and government are high and rising, further undermining the sustainability of the development of the metropolitan region.

111. GOB policy is entirely in line with this thinking. The current FYP promotes the devolution of power, function, and finance to local government. Major reforms are proposed for municipalities and city corporations in their responsibilities and the way they are organised. Municipalities and city corporations are expected to become more accountable with greater inputs from civil society. They will have clearly defined responsibilities which include the development of strategies and plans to attract private investment and mobilize public resources based on service delivery and improve the quality of the city environments. It is also expected that there will be greater integration of development functions

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at the local level in the programming of the activities of other central government agencies.

112. These are all steps in the right direction. The ability of city managers to coordinate fiscal, regulatory and administrative systems which influence the efficiency of cities is crucial to improving the welfare of urban citizens. Cities need to be managed as standalone economies where project investments are planned in the context of a coherent city strategy and better understanding of how urban markets perform overall. The Government’s role in this regard will be to support initiatives to combine local-level skills, resources and ideas to stimulate the local economy towards the goals of job creation, poverty alleviation and redistribution. However given the current weakness of most local authorities50, success will, for the foreseeable future, depend on sector wide policy support, legislative and executive actions, and measures to improve their finance and financial management51.

6.3. Improving Economic Development Planning and Governance

113. Over the past decades, the model of Dhaka’s development can be characterised as reflecting a laissez-faire approach whereby development has taken place without any significant impact from strategic land-use or economic planning. While this model has not prevented Dhaka from becoming the engine powering the growth of the national economy, this has come at a heavy environmental and social cost52. Unless a major, concerted and sustained effort is made to reverse these trends, the result could be disinvestment as the cost of doing business becomes prohibitively expensive. In this context, Table 6.1 summarises the main planning and institutional issues affecting regional economic development which need to be addressed by this study. It is noteworthy that several of these issues have been previously raised in this report.

Table 6.1. Regional Economic Development – Key Issues

Issues Sub Issue Comments

Coordination of Dhaka is suffering from a high infrastructure deficit gap running into billions of Infrastructure dollars. Although RAJUK is mandated to be the primary agency coordinating Planning and the delivery of regional infrastructure and services, it has neither the authority Delivery nor the capacity to undertake this role. Infrastructure development agencies plan and deliver infrastructure in isolation, with limited coordination or sharing of information taking place. There is no Infrastructure Coordination Group to plan, coordinate, mobilise funds, and structure investment delivery.

Planning and The failure to plan for adequate capacity and protect future infrastructure Protection of corridors, especially for roads and water, is adding substantially to Infrastructure development costs. In many cases, where infrastructure corridors have been Corridors provided they have been encroached upon, and compensation is required even if buildings are illegal, adding up to 40% to road construction costs. This results in less funding being available for new infrastructure and planned network improvements often becoming very difficult to implement.

Increasing There is a critical shortage of funds available to develop regional Finance for infrastructure, land and housing Yet: Development ƒ RAJUK is making very poor use of its financial assets, e.g. by not raising

Infrastructure Delivery and Finance money on its land holdings or investing its surplus funds into new projects or

infrastructure. ƒ RAJUK does not seek to obtain contributions from the development industry

50 See section 4. 51 The previously mentioned UGIIP and MSP projects have exactly these objectives. 52 Dhaka is by no means alone amongst large developing country cities; very few can be said to have effectively addressed the multiple challenges of sustainable urban growth – a fact which underscores the inherent complexity of the problem.

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Issues Sub Issue Comments to pay for the costs of extending infrastructure to new development areas. ƒ RAJUK is currently selling land below market value. Yet many plots are subsequently on-sold at much higher prices generating windfall profits for purchasers. As a result, government is losing substantial revenue which could be used for other development projects or infrastructure. Corporate There is no corporate plan for RAJUK yet corporate planning is an important Planning and vital business process to formulate policies and strategies for an organization and communicate them downward for implementation. The lack of a corporate plan for RAJUK makes it difficult for the organization to operate effectively; most staff do not know what the purpose of the business is, how it is supposed to serve its clients and the responsibilities of different operational areas of the organization. RAJUK has no Key Performance Indicators (KPI) or targets for its business activities.

Research and Trends in land development, planning approvals and land values are crucial Development factors in determining RAJUK’s programmes and projects yet there is currently no unit within RAJUK to undertake this function or to monitor economic trends.

Poor Land Poor land administration and management is a significant factor giving rise to Administration land disputes, compensation, and provision of service corridors in urban Practices areas, lack of security of tenure associated; weak land administration systems are a major impediment to business investment. RAJUK maintains a database of its property transactions but this is linked neither to the development control system nor to other land administration systems (e.g. district commissioners, Dept. of Land). The result is a dysfunctional system which facilitates illegal transfers of RAJUK plots and has created a backlog of Development legal hearings on the issue of title to property running into many years.

Project There is significant weakness within the organization in project management Management and annual plan development and implementation. As a result, RAJUK’s Capacity program delivery of land and services tends to fall well behind timelines, adding to costs which are passed on to land purchasers.

Outsourcing There is no outsourcing of RAJUK functions, e.g. design, construction, (Purchaser monitoring and evaluation, maintenance and in some cases project Provider Models) supervision and management, through competitive tendering designed to for Delivering recue costs and increase efficiencies. This leads to significant Efficient and underutilization and poor deployment of its staff and resources. Tendering is Cost-Effective not competitive or transparent. The merit of competitive tendering rests on its Urban Services. ability to force providers to continually seek to improve the efficiency of their

Organisational Management and Human and Resource productive processes. The more efficient contractors will seek to reduce waste and provide high quality services which give value for money.

Demand Side Inadequate attention has been paid to the planning of EPZ and industrial land. Planning The result is a very inefficient industry spatial development pattern, which is undermining business competitiveness, and is unresponsive to business demands – a point also made during discussions with industrialists. and

g Integrated There is no coordination of annual development or revenue plan budgets. As Development and a result, there are high level of duplication for approvals of projects, and no Revenue link with the revenue budgets, which are necessary to secure funds for Budgeting ongoing operation and maintenance of new infrastructure and facilities. There Plannin is need to identify processes where by information on budgets can be shared, Related to Spatial Related to Spatial so that all agencies are aware of what other agencies are planning on an District Level Issues annual and medium-term basis.

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Issues Sub Issue Comments

Spatial budgeting The National Planning Commission is responsible for the approval of all annual development budget plans. However, the Commission does not attempt to integrate spatially at division or district level, sector projects. As a result, opportunities to integrate project development and operational budgets which will results in savings, reduce duplications operating costs has been lost. Spatial/sectoral budgeting needs to be introduced into the Bangladesh Planning Commission, RAJUK and all other development agencies as a means of reducing duplication and making costs savings

Development RAJUK is responsible for releasing land through rezoning and development Planning control yet there is no effective planning and programming of land releases based on market demand. This failure to manage the delivery of infrastructure and land release has resulted in opportunism by the private sector leading to largely sporadic forms of urban development. Such growth gives little consideration to the need for environmental services, capacity of road and utility corridors, and essential sites required for community services.

Spatial Resilience Dhaka is one of the most vulnerable cities in Asia to natural disaster, yet planning system has largely ignored these issues. Dhaka is thus poorly equipped both logistically and spatially to respond to natural disasters.

Urban Logistics All network systems and services, including and IT services, governance and Management administration, transport, energy, water and waste management are at or above capacity. Intermodal facilities are weak and overloaded, essential and transport links have insufficient capacity with poor management of rights of way, even where they exist. The result is a network system that is Integrated Land substantially adding to the transaction costs to business as the time taken to Planning and travel to work, to move freight, and attend meetings increases every year. Development The DMDP provides a spatial framework for land-use activities across the DMR. However, the spatial planning demonstrates a very low level of integrated planning that reduce energy, natural resources, raw materials and human capital into supply chain production systems which can help reduce the need for travel and transaction costs to business. Many EPZs and industrial areas do not have access to essential supporting service industries, and must access these in the central business area. The overall result will be lower productivity and performance, and loss of international competitiveness.

114. Not all the above issues can be addressed simultaneously and over a short time scale. Many will require new legislation, high level discussions between the concerned ministries and major institutional capacity building. Nevertheless, the following priorities suggest themselves:

• Improving the planning and coordination of urban economic development projects. • Developing mechanisms to increase the funding available for infrastructure including innovatory measures to develop partnerships for land development and local infrastructure with developers and land owners.

• Enhancing the capacity of RAJUK and other local authorities to support local economic development.

• Enhancing the corporate planning capacity of RAJUK.

115. Recommendations to address these and other issues identified in this Chapter have been integrated into the study’s other proposals contained in Chapter 11.

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7. TRANSPORTATION

7.1. Sustainable Urban Transport

116. Dhaka will continue to increase its population over the next few decades. Rapid economic growth in areas under development will increase the demand for transport of both people and goods. Apart from the growth in private vehicles, the population growth and increased affluence will also result in strong growth and increase the demand for public and private transport. Dhaka like other cities is having difficulties accommodating this increased demand, leading to a decrease in the quality of services provided. At the same time, the anticipated growth in private motorization will overwhelm the road infrastructure in Dhaka, creating increased congestion and long commute times. Building more roads and flyovers will alleviate the problem in the short term but is unlikely to constitute a viable longer term strategy.

117. The urgency of introducing a sustainable urban transport policy (SUTP) for Dhaka is increased by the current unplanned and haphazard development in fringe and more peripheral areas which compromise the development of effective transport networks. SUTP is essential if its quality of life is to be improved. SUTP needs to focus on easing access and mobility for people to reach work, services, resources and each other in manner that is within the environmental carrying capacity of the region and is affordable to both providers and users of the transport system. Sustainability of transport is defined by it having a positive impact on the three pillars of sustainability, namely economic growth, environmental protection and social inclusiveness.

118. A sustainable urban transport strategy is about how to make desirable long terms outcomes achievable. There are many planning and policy instruments that should be adopted to develop public transport and prioritized road schemes. The key is to have supporting policies and institutions to ensure the application of these instruments in an integrated manner. The key emphasis of policy directions should be on the development of supporting institutions and institutional procedures that will facilitate RAJUK and the Dhaka Transport Coordinating Authority (DTCA) to make choices that will meet four criteria: i) economically supportive; (ii) financially feasible; iii) socially acceptable; and iv) environmentally sustainable (see Table 7.1).

119. But transport policy, once it begins looking at transportation development outside the main urban area, needs also to be linked to land use policy. The two should be self-supporting. This does not mean that one should precede the other; they should be formulated in unison. But at present in Dhaka this rarely happens as more often than not, land use and transportation studies are not carried out in parallel and are undertaken under the auspices of different ministries. Passenger transport growth projections show that the existing transport facilities in Dhaka are insufficient to keep pace with the growing demand.

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Table 7.1. Components of a Sustainable Transport Strategy

Sustainability Policy Issues Component

Economic ƒ Transport policy must support and enhance the economic prospects and policies whether they arise from government or private sector initiatives. Crucial in this respect, are the need to: (i) provide transport capacity to get people to and from work; (ii) contribute to the development of new growth areas by providing both primary and secondary access; (iii) facilitate the movement of goods; (iv) provide for integrated inter-modal passenger and goods trans-shipment interchanges. Financial ƒ Most public owned public transport systems require substantial subsidies. The seam goes for roads that need to be financed and maintained out of taxation. These subsidies are Sustainability necessary as cities are dependent on their transport systems. ƒ Above all is the need to mobilize the finance needed for implementation – if this is not available, no policy can succeed. At the same time transport policy must be formulated in relation to likely available funding; while this is less important when preparing long term plans, it is absolutely critical when setting short and medium term priorities. Social ƒ Transport policy must cater to the needs of the whole population and not just those who are car owners. This means good public transport, support for non-motorised and other Sustainability (semi)-informal public transport; better facilities for pedestrians (sidewalks and crossings), sometimes concessionary fares for the old, the poor and students, and enhanced road safety. ƒ Without social sustainability a transport system may fall apart through a combination of factors i) strikes and unrest amongst transport providers; ii) distress amongst those transported; and iii) social unrest by those who do not have access to safe, reliable and clean transport. Environmental ƒ At the macro-level, transport policy should be used to discourage development from going to environmental sensitive areas, e.g. through the construction of new roads to ‘open ‘up’ Sustainability new areas in less sensitive locations. ƒ Air and noise pollution in Dhaka is a major concern, particularly on the effects of long term health. It is also detrimental to the long term quality of life of residents. The introduction of CNG has been successfully implemented however there is a lack of motor vehicle emission standards. Here the need is for reducing air and noise pollution through better monitoring and enforcement of emissions and noise standards.

7.2. The Policy Context

120. Some elements of urban transport policy exist in Bangladesh, but there is little effective implementation effectively. This is despite numerous transport studies having been carried out since the early 1990s several of which subsequently led to implementation of physical projects, investment in public transport and institutional strengthening. By and large, the studies recommended policies that should aim at developing an integrated, balanced and environmentally sound urban transport system in which all modes (motorised and non-motorised) can play their roles efficiently. An analysis of all the five year plans adopted since the creation of Bangladesh reveals that some form of overall transport policies were outlined in the plan documents of the country. The different plans emphasized on the adoption of appropriate pricing policy (to achieve an acceptable level of cost recovery), capacity utilization, investment principle, development of rural and urban transport systems, efficient allocation of resources, improved services, fuel economy and identification of most cost-effective mode of transport.

121. Despite the consistency and coherence of the studies, few of their policies have been implemented. Fares and rates fixed for transport services in Dhaka are far below the cost of providing these services. This disproportionate fares structure and the lack of adequate subsidy, leads to

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deteriorating quality of services, lack of funding for maintenance and ability to provide the capacity needed for demand.

122. Road transport (as in many countries) has received a much greater share of resources over successive planning periods; and while number of major roads, bridges and flyovers have been built but there has been no consistent attempt to develop a more coherent net work. Nor has there been any sort of priority given to public transport, nor has road construction been used as a means to achieve planning objectives. In short, although components of the studies have been implemented, there has never been a serious attempt to implement an overall strategy. This has contributed to Dhaka’s congested traffic situation and set a trend of development which may not be sustainable in the longer term.

7.2.1. Strategic Transport Plan for Dhaka (STP) 123. This situation may be about to change. The Strategic Transport Plan (STP), covering the much larger DCR area, was prepared in 2004 and has since been adopted. Primary outputs were: i) the development of transportation strategies to cater for the demand of the future and to assist in the encouragement of preferred land use development; and ii) preparation of four 5-year phasing programs.

124. The STP recommended a balanced strategy of public and individual transport and offered the optimum flexibility for developing mass rapid transit as well as three major expressways. Alternative land use scenarios were evaluated with the preferred alternative not being dissimilar to the DMDP strategy in so much as it included the major growth areas to the west of the DMDP area and greater restrictions on further development of existing fringe areas. The implementation program has been divided into four periods of 5 years each beginning in 2005 and ending in 2024. Implementation was split into four 5 year programmes with each broadly involving a mix of MRT and expressway preparatory works and construction, Bus Rapid Transit (BRT), east-west link roads and comprehensive traffic management measures for major routes.

125. The most important achievements of the STP are considered to be: (i) that it provides a comprehensive strategy covering all aspects of aspects of transportation planning and development; (ii) it is generally consistent with the DMDP; (iii) it sets out a phased implementation programme; (iv) that it has been adopted and thus provides a road map for transportation investment in Dhaka for the next 15- 20 years; and (v) that it has resulted in the DTCA (see below) being granted a legal mandate to co- ordinate transport policy and development in the Dhaka region. Nevertheless doubts remain: (i) its potential over-ambition not only in terms the major projects but in terms of the smaller link roads (e.g. design and construction of 6 link roads in Phase 1); (ii) its cost which even assuming a high degree of private sector involvement is very high; and (iii) the absence of measures to safeguard Rights of Way.

7.2.2. Dhaka Urban Transport Network Development Study (DUTS) 126. In contrast to the STP which had a more regional focus, DUTS, carried out in 2010 by MOC, concentrated on the inner urban area, DCC and fringe areas; like STP it was premised on the DMDP spatial strategy. Recommendations were generally similar to the STP but with more detail for the secondary road network: 3 BRT lines and 3 MRT lines to be built by 2025 with full development of inter- modal facilities and overhaul of bus operations; road proposals were designed to provide Dhaka with a comprehensive road network to serve both existing and fringe areas; proposals were prioritised. Institutional recommendations focussed on implementing the MRT and strengthening DTCB to undertake this role. Stress is given to the need for intensive inter-agency co-ordination and stakeholder

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consultations.

7.2.3. Study for Institutional Strengthening and Capacity Enhancement of Transport related Agencies (SISCETRA) 127. This study is of interest as RAJUK was included in its TOR. To make RAJUK a fit and efficient organization, this study recommended separating RAJUK’s planning and land development functions. The study suggested that RAJUK should remain a planning, regulatory and development control organization and a new Rajdhani Development Company (RDC) should be created as a wholly government owned public development company to implement land development and other STP road construction proposals. In order to address the problem of over-development, especially on arterial roads, RAJUK should have a major role in (a) controlling densities and (b) development of road network systems. Other recommendations are summarised in Box 7.1.

Box 7.1. SISCETRA: Institutional Recommendations for RAJUK

ƒ Both RAJUK and RDC to report to the Minister of Housing and Public Works (MHPW); ƒ There would be separate boards for RAJUK and RDC; ƒ Both Board should be increased to include representatives from DTCA, DCC, BRTA, MOC, WASA and at least 4 members from outside, e.g. BUET, BIP, BELA (civil society members); ƒ The board should only include two RAJUK members, the Chairman and the Member Secretary; ƒ Senior RAJUK personnel should have clearly defined responsibilities and be technically qualified. Deputation of officers in key positions should be avoided if not altogether stopped; ƒ Staffing levels should be increased to around 3,000 people including at least 1,000 technical officials, such as planners, architects and engineers Recruitment of all technical and key positions should be merit based and through open competition; ƒ The inspection and monitoring division should have at least 200 inspectors trained in zoning control, building structural experiences and building code expertise; ƒ The DMDP area should be divided into zones for development and building control purposes. Zonal offices should be able to deal with simpler and smaller planning applications (e.g. under a certain maximum value or a square footage). More complex and larger plans will continue to be dealt with by RAJUK head office. ƒ Applicants should have a right of appeal to a National Appeals Board mandated by the high court to hear and pass judgments on appeals against planning decisions.

128. It is noted that the proposals related to increased staffing and establishment of zonal offices are currently being implemented by RAJUK while others address previously identified issues: (i) conflict of interest in RAJUK’s dual role; (ii) increased oversight; and (iii) current absence of redress mechanisms. Elements of these proposals are presented as potential options in Chapter 11.

7.2.4. Sixth Five Year Plan, FY2011 – FY2015 129. The SFYP devotes a whole section to Dhaka’s transportation. It recognizes that: (i) previous attempts to improve the situation, including the numerous studies, have only had a marginal effect on traffic conditions; (ii) institutional weaknesses, lack of technical resources and shortage of investment are the main causes; (iii) massive investment will be needed over the medium to long term to modernize and expand the Dhaka transport infrastructure; along with (iv) large-scale institutional strengthening. Proposals emphasise much enhanced network and traffic management. BRT, especially, and MRT are supported but the latter with less conviction than in the STP; expressways are explicitly not supported.

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7.3. Major Completed, Ongoing and Planned Projects

7.3.1. Completed Projects 130. Through funding from international lending agencies, several projects have been implemented leading to some significant achievements including: i) phasing out of two stroke three wheelers leading to an improvement in air quality; ii) the construction of pedestrian footbridges and sidewalks to make pedestrian movement safer and easier; iii) rehabilitation of flood damaged roads; iv) introduction of better traffic management on arterial corridors and at major junctions; v) construction of the Mohakhali flyover easing traffic congestion and delays; vi) improvement of public transport services along defined major corridors; vii) rehabilitation of three major inter district bus terminals (although only is currently operating effectively); viii) review of the regulatory framework for public transport, development of a policy for enforcing parking restrictions and pilot schemes for bus route-franchising; and ix) development of urban transport policy, a plan for institutional strengthening, capacity building and development of a strategic plan for improving transport services in Dhaka.

131. GOB has also been responsible for important projects – the second and third Buriganga bridges, the Dhaka outer eastern bypass, the Tejgaon link road and several flyovers.

7.3.2. On-Going Projects 132. The road network of Dhaka has historically suffered from the lack of good east-west links. Two East-West projects are currently under construction to improve this situation: (i) Mirpur – Airport Flyover and Banani Overpass; and (ii) Airport Road and Biswa Road Interchange and Kuril Link Road. The latter is of interest as it will provide a direct link to Purbachal New Town thereby accelerating its occupation. This road will cross a largely unbuilt part of the eastern fringe which could have one of two outcomes (if intermediate access roads are provided, which should be if it is to serve a wider public): (i) land development in this low land area could result in another example of unplanned development with continued loss of wetlands; or (ii) if a strong planning regime is imposed, it could provide a model for planned urban expansion with adequate provision for access roads and flood retention areas as well as providing the opportunity for piloting innovative partnerships between RAJUK, developers and land owners.

133. Other ongoing projects are: (i) programme to construct nine elevated u-loops and five underpasses in central areas; (ii) construction of 3 north-south bridges and roads as part of the Hatirjheel Begunbari Development Project; and (iii) major upgrading to the Dhaka – Chittagong Road.

7.3.3. Planned Projects 134. Three major projects are in an advanced state of planning. These are the BRT, the Dhaka Elevated Expressway and the MRT. Details are provided in Box 7.2. With the exception of the BRT scheme, there is little indication at present that potential land use implications are being taken into account.

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Box 7.2. Major Transport Projects in Preparation

BRT Pilot Project – Gazipur to Dhaka

ƒ This project is under development through the ADB funded Greater Dhaka Urban Transport Corridor Project and will restructure the main urban transport corridor from Gazipur to the Airport through i) a 20km partly elevated BRT route with 31 stations designed and built to international best practice and quality standards; ii) two mixed traffic lanes and one non motorized traffic lanes per direction and sidewalks; iii) improvement of 155 access feeder roads in favour of NMT; iv) a high capacity drainage system installed along the restructured corridor; and v) BRT terminals and depot near Gazipur railway station and the Airport railway station. ƒ Other components of this integrated project are: (i) organisational development to implement, manage and monitor the BRT; ii) an urban development strategy along the corridor through the revision of the DAP and thus integrate land use and transport planning; (iii) traffic management measures; and (iv) improved air quality through revised vehicle emission standards and enforcement thereof.

The Dhaka Elevated Expressway (DEE)

ƒ Public private finance initiative to construct a 28km elevated expressway from near the airport running mostly above the existing railway to Kamalapur Railway Station before connecting with the Dhaka – Chittagong highway. Much of the alignment is planned to be built over the existing railway track so as to reduce land acquisition and resettlement requirements. There will nonetheless be substantial acquisition and resettlement mostly associated with proposed interchanges and link roads. ƒ The severity of these issues in terms of cost and social disruption recently led the government to abandon some of the proposed link roads and the western section from Kamalapur to Jatrabari. These changes are likely to severely impact the financial viability of the scheme. As a result, the future of this project is, at present, highly uncertain.

The MRT

ƒ An extensive MRT network consisting of 8 lines is proposed in the STP including 3 to be upgraded from the BRT schemes. Preparatory work is currently proceeding for MRT line 6 starting on the West side of Uttara Phase 3, proceeding south before it swings east across the central area before terminating at Sayedabad. JICA, who are carrying out the design work, will provide a long term loan to GOB to finance 80% of the construction cost. Loan negotiations are expected to take place imminently following delays leading to a late change in the alignment. Land acquisition has started and construction is planned to start in late 2013.

7.4. The Institutional Context 7.4.1. General 135. Different ministries and government agencies are responsible for transport sector development in Dhaka (see Table 7.2). Most currently follow a sectoral approach where each agency designs and implements projects with little regard to implementing the overall STP strategy. The basic problems are: (i) the lack of coordination between agencies: (ii) the absence of a clear policy framework for transportation in Dhaka (notwithstanding the STP); (iii) lack of financial and technical resources; (iv) duplication of responsibilities; (iv) political considerations; (v) lack of enforcement of regulations relating to emissions, traffic control, parking and encroachment into the ROW. In the past, the Planning Commission used to play a major coordinating role in the allocation of resources for development based on detailed analysis of economic costs and externalities, but this has diminished over the years.

136. At present three ministries and a number of agencies are involved in planning, development, operation and management of Dhaka’s transport system, with little coordination or technical assessment as to whether another mode of transport could undertake a particular task more economically and with much less environment damage. This uncoordinated development has given rise to some of the

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problems such as sectoral bias, inappropriate modal mix, a largely un-integrated system, and little input from other stakeholders or the public. Enforcement of regulations (from vehicle emissions to on-street parking) is poor. The consequences are all too plain to see in Dhaka’s congestion, serious air pollution, lack of road discipline, precarious conditions for pedestrians, unlicensed rickshaws clogging the streets, and under-financed and poor quality buses. There has also been little attempt to use transport development as a means of directing or managing urban growth.

137. Development funds are allocated by the Planning Commission while funds allocated for maintenance are made by the Ministry of Finance as part of recurrent expenditure. There is little interaction between these agencies in determining the levels of funding.

Table: 7.2. Agencies with Responsibilities for Transportation in Dhaka

Agency Responsibilities Planning Commission ƒ Transport policy formulation Transport policy formulation and administration (through the Dhaka Ministry of Communication ƒ Transport Coordinating Authority (DTCA)) ƒ Preparation of structure plan and development control of Dhaka RAJUK Metropolitan area ƒ Development of roads in the Dhaka Metropolitan area ƒ Maintenance of roads in Dhaka City DCC ƒ Licensing of rickshaws in Dhaka City ƒ Development of roads within the Dhaka Metropolitan area ƒ Vehicle registration in Bangladesh Bangladesh Road Transport Authority Licensing of public transport in Bangladesh (excluding rickshaw) (BRTA) ƒ ƒ Issuance of ‘route permit’ to each bus in Bangladesh Bangladesh Road Transport Bus operation Corporation (BRTC) ƒ

Dhaka Metropolitan Police (DMP) ƒ Traffic control in Dhaka Metropolitan area Road and Transport Highways Construction and maintenance of major roads in Dhaka Department (RHD) ƒ

Local Government Engineering ƒ Construction of and maintenance of rural feeder roads; also Department (LGED) constructed the Gulshan Bridge

Bangladesh Railways ƒ National rail network Bangladesh Inland Waterways Inland waterways Transport Authority (BIWTA) ƒ

Department of Environment ƒ Development of environmental standards; e.g. air quality.

7.4.2. Dhaka Transport Coordination Authority (formerly Board) 138. The DTCA was established to replace the DTCB by Act of Parliament in 2011; it reports to the Ministry of Communication (MOC). Its geographic jurisdiction has been widened from the DMA area to encompass the much larger DCR consisting of 6 districts. The DTCA Board of the Authority consists of 27 members and Minister, Ministry of Communication shall be the Chairman and the Executive Director of DTCA shall be the Member Secretary. Box 7.3 sets out the objectives and functions of the DTCA.

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Box 7.3. DTCA’s Mandate and Responsibilities

Aims/ Objectives

ƒ To prepare strategic plan for Dhaka transport sector and inter-agency cooperation and coordination for reducing of traffic congestion; ƒ To give direction and advise for implementation of policy and plan for Dhaka City Public Transport; ƒ To coordinate the traffic, transportation and related infrastructure in the approved and published master plan envisaged in the Structure Plan (Town Improvement Act, 1953 section 74 (1)); and ƒ To advise and necessary management related to land user person or organization, service provider organization and transport as a whole for integrated transport system in Dhaka city. Functions/ Responsibilities

ƒ to formulate a transport policy, scheme, approval and preparation of master plan and supervision of its programme implementation improve transport congestion for Greater Dhaka; ƒ to formulate a policy on traffic and transport, road, footpath, road-space and parking based on Master plan, DAP, STP and other studies under Town Improvement Act, 1953 section 74 (1); ƒ to approve and supervise traffic circulation plan and entry and exit for multi-storeyed and residential building plan; ƒ to formulate Mass Rapid Transit projects and its implementation in a particular situation; ƒ to assist for preventing of pollution arising out of the use of faulty vehicles; ƒ to prepare policy and implementation of route and lane for smooth vehicle operation in Dhaka; ƒ to carry out contract with others to activate the objective of the Act; and ƒ approval and direction of Mass Rapid Transit, Bus Rapid Transit, Metro Rail, and route franchise bus or rail (metro/mono/circular/ commuter) or water ways for improved transport services under government/private or public-private ownership, determination of fare and related functions.

139. The DTCA is now a statutory body with comprehensive responsibilities for all aspects of transport. These include the formulation of traffic and transport related development control policies for multi-storeyed buildings of 10+ floors; close co-ordination with RAJUK will thus be essential. It also has authority to implement major non-road transportation projects in its area of jurisdiction which is greater than the current DMDP area. As DTCA has only recently been established, no assessment on its performance is currently possible. Potential difficulties relate to: (i) achieving the require level of co- ordination with other agencies in order to develop a single, co-ordinated and integrated road construction programme; (ii) mobilising the funds need to implement the STP; (iii) whether DTCA’s efforts will be dissipated by its wide geographic jurisdiction; and (iv) recruitment and retention of senior technical staff.

7.4.3. Other Agencies 140. There are many agencies responsible for transportation activities in Dhaka but the most important are RHD, LGED and RAJUK which all have responsibilities for road construction53. All are currently implementing projects, mostly with government finance. The important issues as far as these organisations are concerned are: (i) the extent of their current co-ordination; (ii) whether they are

53 Most of the other transport related agencies have primarily regulatory or operational functions.

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working to the STP; and (iii) how they will work with DTCA in order to achieve a more strategically integrated approach to the future development of the Dhaka transportation system, especially as an instrument to promote and manage development in currently largely undeveloped areas.

7.5. Transportation Planning in Dhaka – Key Issues

141. The urban transport problems that Dhaka is experiencing are not unique and are similar to those experienced in many developing country megacities. Several of these cities are now however beginning to address these issues through greater integration of transportation and urban planning activities and through greater co-ordination in project implementation – initiatives that are urgently needed in Dhaka if the existing situation is not to worsen in the future as the pace of development and rising car ownership both continue unabated. 142. Table 7.3 lists the major transportation related issues identified by the study. Several have come up earlier in this Report, notably the need to integrate land use and transportation planning and to better consider, and enforce, parking and traffic issues in the development control process. On the basis of the study’s findings, the priority issues are:

• Improving the co-ordination between agencies involved in the implementation of transportation projects.

• Developing a process for the financial resourcing of identified priority transportation projects.

• Achieving greater co-ordination between DTCA and RAJUK in determining and enforcing transport related issues (e.g. car parking) in the planning approval and development control process.

• Developing mechanisms to safeguard the Rights of Way (ROWs) for planned primary and secondary roads and MRT alignments.

• Establishing a strategic level institutional structure that can properly integrate land use and transportation planning.

143. In trying to resolve these issues several questions have to be answered; do agencies such as RAJUK and DTCA have the correct incentives to make strategic decisions that do not compromise the long term interests of Dhaka? Is the urban planning practice adequate for rapid urbanization and motorization of the population? Are there adequate checks and balances that would ensure the Strategic Transport Plan gets implemented? Are the financial means adequate and sustainable?

144. There is no easy answer to these questions but without a resolution there will continue to be serious consequences. The bottom line is that Dhaka’s transportation system is presently failing and that actions needs to be taken if a more sustainable transportation system is to emerge - without which urban mobility and travel conditions across the metropolitan area will continue to deteriorate.

145. Proposals to address these issues are presented in Section 11 where they have been dovetailed with those arising from other sections of the report.

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Table 7.3. Key Issues: Transportation

Issue/ Comments The Importance of Governance in Transport Planning and Implementation Governance is critical for sustainable urban transport; 4 necessary conditions are: ƒ a policy framework that is agreed by the various agencies; and ƒ an institutional framework that provides for the co-ordination without which policy implementation unfolds leading to disarray, inaction and failure. ƒ a meaningful and transparent stakeholder engagement process, including consultations and access to information, so that the often conflicting interests can be mediated and resolved. ƒ consistent political support. The Integration of Strategic Transportation and Land Use Planning ƒ A n integrated approach is required to develop new growth areas in an orderly and spatially efficient manner and provide them with an adequate transportation network. This will entail concerted joint action by RAJUK, DTCA and road building authorities: primary roads need to be built or improved, secondary road networks need to be demarcated with phased programmes for their construction. If this is not done, either expensive retro-fitting is necessary or these new areas remain badly under-serviced. ƒ STP proposals for new or widened roads have not been safeguarded by RAJUK, thus compromising their future construction. ƒ Development opportunities provide by new transport projects, e.g. the MRT, have to be assessed and planned for, as these can provide an immediate impetus to new development. Land use action plans need to be developed, approved and enforced if this development is to be properly managed. ƒ The lack of integration between RAJUK and DTCA is resulting in uncontrolled and unplanned development, with a poor mix of land use leading to an inefficient and overloaded transport system. ƒ Large new residential projects agreed through RAJUK are presently under construction with little transportation planning input or technical advice resulting in inadequate road widths. Overall it is critical for the future urban sustainability that the planning of transport and land use becomes properly integrated. This will require a commitment by all agencies on approved policies involving transportation and land use planning. The Incorporation of Traffic Planning Issues into Major Developments ƒ RAJUK ignores parking and traffic regulations by giving permission for large buildings without requiring adequate parking provision, nor does it check that parking spaces are provided in accordance with the planning permission. This increases curbside parking affecting which then reduces road space and affects the entire transport network. ƒ Granting permission for high density development increases traffic volume on adjacent roads yet traffic impact studies are not carried out. ƒ There is also little control of construction operations which disrupt traffic through the stockpiling of construction material and wastes on pavements and carriageways while the time taken to install utilities causes unnecessary disruption to traffic. ƒ RAJUK’s failure to prevent new developments encroaching onto the right of way. Sectoral Institutional Issues ƒ The current process, with overlapping responsibilities whereby individual agencies develop their own projects and then apply individually for finance hampers an integrated approach to transport system development. ƒ Transport planning and implementation is subject to political intervention which can delay implementation and lead to a re-prioritization of projects away from those identified in the overall strategy. ƒ Lack of monitoring of STP implementation. ƒ The failure to enforce regulations relating to the management of the road network, e.g. emissions standards, parking controls, sidewalk traders, traffic offences, etc. ƒ Insufficient technical and manpower resources. Finance ƒ Plans will not come to fruition if the finance to implement them is not available. GOB finance is limited; hence the importance of funding from international agencies or the private sector; yet these agencies may have priorities which do not match the overall transport strategy, e.g. a bias to ‘big ticket’ items rather than secondary roads or the existing, rather than the future, urban area. ƒ Alternative approaches to raising funding need to be explored, e.g. increasing RAJUK’s financial contribution to transport projects and negotiating with developers to obtain contributions for off-site transport facilities.

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8. ENVIRONMENTAL MANAGEMENT IN DHAKA

8.1. Dhaka’s Environment

146. The environment of Dhaka City Region is increasingly deteriorating. Loss of wetlands, caused by uncontrolled development, is increasing its already high flood risk. Most water bodies are biologically dead due to pollution from untreated discharges of industrial and domestic wastes. Groundwater levels are dropping rapidly which together with the very high costs of treating polluted river water are threatening the future water supply. Air pollution from traffic and brick kilns is putting residents’ health at risk. Open space is severely deficient – a situation made worse by the very high densities of many new developments. Dhaka’s fast growing population and concentration of services and industries translate to higher consumption of natural assets and resources, and increasing generation of wastes and gren house gases. Added to these is the threat of rising sea levels resulting from climate change54. The poor, many settled in unsafe areas, are contributing to this environmental degradation, but are also amongst those most vulnerable to flooding, now and increasingly in the future. These conditions, allied to inadequate capacity infrastructure and ineffective planning, and grossly insufficient enforcement, are amongst the greatest threats to Dhaka’s future sustainable development.

8.2. Environmental Policies and Legislation

8.2.1. National Environmental Policy, 1992

147. The National Environmental Policy, approved in 1992, represents the country’s first declaration to protect the environment by:

• maintaining ecological balance and ensuring sustainable development through protection and conservation of the environment; protecting the country against natural disasters;

• identifying and regulating activities that pollute and degrade the environment;

• ensuring environmentally sound development in all sectors; • ensuring sustainable and environmentally sound use of all national resources; and • staying actively associated with all international environmental initiatives, as far as possible.

54 A 2009 survey of 11 Asian coastal cities identified Dhaka as on e of the three most vulnerable to climate change impacts (the other two are Jakarta and Manila). See World Wide Fund for Nature, 2009, Mega-Stress for Mega-Cities, A Climate Vulnerability Ranking of Major Coastal Cities in Asia.

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Figure 8.1. Loss of Wetlands in the DMDP Area, 1989, 1999 and 2005

WETLANDS FILLED AREAS OTHER (e.g. built up and agriculture) Source: Analysis of Landsat TM/ETM Image of Years 1989, 1999 and IRS LISS Image of 2005; reproduced from BELA, 2011, Analysis of Land Use Deviations, unpublished Powerpoint presentation.

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148. The Policy sets out guidelines for a number of related sectors. The following guidelines are applicable to environmental management, and relevant to Dhaka’s major environmental problems:

• corrective measures for industries, environmental impact assessment (EIA) for new industries, ban of new polluting industries, and development of environmentally sound technology for sustainable use of natural resources;

• promotion of healthy environment in the urban areas, and prevention of activities, which are harmful to public health and healthy workplaces for workers;

• environmentally sound use and development of water resources, instituting measures against river pollution;

• compatible land use systems for different ecosystems and environmentally sound management of newly accreted land;

• prevention of activities that diminish the wetlands; • road, rail, air and water transport systems to operate without polluting the environment, EIA required prior to undertaking projects in these sectors;

• environmentally sound planning and development of housing and urban centres, and existence of water bodies in the cities to sustain environmental and ecosystem balance in the urban areas; and

• public participation for environmentally sound development activities. • conservation of wetlands, prevention of activities that diminish the wetlands.

149. The policy specifies that EIA and IEEs (Initial Environmental Examination) should be conducted prior to project execution.

8.2.2. Environmental Conservation Act, 1995 150. The Environmental Conservation Act (ECA) provides for the conservation of the environment, improvement of environmental standards and control and mitigation of environmental pollution. Its main proposals include:

• authorizing Government to declare those areas with ecosystems appearing to be under serious threats of degradation or are degraded as ecologically critical areas;

• restricting the continued operation of vehicles emitting smoke harmful to the environment;

• requiring environmental clearance certificate prior to the establishment of an industrial operation or undertaking of a project;

• authorizing Government to formulate environmental guidelines relating to the control and mitigation of environmental pollution, conservation and improvement of the environment; and

• authorizing Government to set out, among others, the standards of air, water, noise and soil quality for different areas for different purposes; the permissible limits for effluent and discharge; and procedures for environmental assessment and review for obtaining environmental clearance certificate.

151. This Act has been amended in 2000, 2002 and lately in 2010. Under the 2010 amendment,

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the Act has expanded the scope of its provisions to cover more major environmental issues and strengthened its powers, especially in relation to the protection of wetlands:

• includes definition for water bodies, hazardous waste, hill, and ecologically critical area; • stipulates the demarcation of declared ecologically critical areas and the preparation of management plans for their conservation, further deterioration or regeneration;

• prohibits cutting or razing of hills and filling up of water bodies changing their nature; • specifies the control of production, processing, import, export, transport, storing, disposal of hazardous wastes;

• stipulates more stringent action against the violators of the Act; • provides for aggrieved persons to file suit against violators in the Environment Court (established in each Division under the Environment Court Act, 2000).

8.2.3. The Environment Conservation Rules, 1997 152. These rules were amended in 2002 and 2003 and are currently undergoing further revision to accommodate the 2010 amendments to the Act. These rules provide the implementing procedures and guidelines. The main features of the Rules are:

• factors to consider when declaring areas as environmentally critical; • procedures for issuing/requirements for obtaining environmental clearance certificate

• schedule of classification of industrial units or projects based on its location and impact on environment;

• national quality/level standards for ambient air, inland surface water, drinking water, noise, emissions from industries and vehicles, odour, sewage discharge, and industrial wastes and effluents; and

• procedure for appeal by affected persons.

8.2.4. Playfield, Open Space, Park and Natural Water Reservoir Conservation Act, 2000 153. This Act, created for the conservation, regulation, protection and reduction of the abuse of resources to make them sustainable for future, applies to all Metropolitan, divisional and district areas. It stipulates, amongst others, that:

• Unless meeting the conditions and changed according to the procedures specified in this Act, playfields, open spaces, parks and natural water bodies that are marked and indicated as such in the officially gazetted Master Plan, could not be used in another way, leased out, or handed over for other uses.

• Applications for change of the state of lands covered in this Act are considered against the following conditions: - Change is necessary. - Change applied for will not get in the way of the goals of the Master Plan. - Change will not have adverse impact on the ambient air quality and residents.

• Penalties will be imposed on violators.

154. Due to poor implementation, this Act has been violated many times as evidenced by the

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rampant encroachment onto, and filling of, wetlands. This Act is however now being used by RAJUK to take action against some illegal developers.

8.3. Institutions for Environmental Management

155. The Ministry of Environment and Forests (MoEF) is directed to coordinate the implementation of the National Environmental Policy. A National Environmental Committee with the Prime Minister as the Chairperson gives overall direction. The Department of Environment (DoE) under the MoEF is primarily responsible for carrying out the purposes of the Environmental Conservation Act. It is the technical arm of the MoEF for environmental planning, management, monitoring and enforcement. In each Division, a Divisional Environment Committee with representations from component local government units and chaired by a Commissioner, is meant to deal with environmental issues at the local level. Other institutions with environmental management functions relevant to SRPG are Bangladesh Water Development Board (BWDB), and RAJUK. Various public and private institutions and civil society groups also seek to inform and monitor the work of these agencies.

156. Broadly, the DoE is charged with ensuring conservation of the environment, and improving environmental standards and control and mitigation of environmental pollution. Among its specific tasks, the following are most relevant to reverse the current state of environmental degradation:

• contribute to the efforts of other government agencies in promoting sustainable use of land, water and other natural resources;

• formulate guidelines for line agencies involved in activities affecting air quality, soil and water conservation and concerning other natural resource issues;

• reviewing environmental impact assessments and managing the environmental clearance process;

• monitor the environmental performance of projects issued environmental clearance certificates;

• promote environmental awareness through public information program; and • monitor environmental quality.

157. In addition, the DoE coordinates the implementation of international environmental conventions to which Bangladesh is a signatory. The DoE is vested with an extensive range of responsibilities. Yet, it is understaffed and its operations are inadequately funded. The processing of applications for Environmental Clearance Certificates (ECCs) constitutes a big bulk of the workload of the DoE, sparing little capacity for overseeing the implementation of Environmental Monitoring Plans (EMPs) issued with ECCs or for the general monitoring of environmental quality. The lack of inter-agency cooperation and coordination in environmental management further constrains the DoE from carrying out its tasks fully. The DoE discharges its environmental management responsibilities for metropolitan Dhaka through its Dhaka Divisional Office.

158. Bangladesh Water Development Board (BWDB) is the implementing arm of the Ministry of Water Resources. The more strategically relevant functions of BWDB are the management of water resources and protection of the Dhaka from flooding through the construction of embankments and other flood control/ regulating structures. It also undertakes re-excavation/ desiltation activities to improve river flows and is responsible for flood forecasting and warning. While it discovers examples of

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encroachment into waterways (often publicised through the media), it has little enforcement capability.

159. RAJUK is the authority for planning, development and control of the metropolitan Dhaka. RAJUK thus has responsibility for maintaining for Dhaka’s for healthy environment along with ensuring its planned and sustainable growth. It is the authority through which applications for the change in the state of lands covered in the Playfield, Open Space, Park and Natural Water Reservoir Conservation Act, 2000, are made. The uncontrolled sprawl of the urban area and the rampant conversion of wetlands and agricultural areas manifestly show RAJUK’s weakness in carrying out its mandate effectively.

8.4. Principal Issues with Environmental Management in Dhaka

160. In its totality, existing environmental legislation provides strong measures to both reduce environmental degradation and take action against contraventions. This underscores the fact that it is the institutions rather than the legislation that have failed.

161. There are however some features of environmental safeguard policies from other countries that could be appropriate and applicable in the Bangladesh context to further strengthen the effectiveness of environmental protection and management. These are: (i) informed participation of affected communities in environmental assessment; (ii) the formation of community-based multi-sectoral monitoring team (MMT) to monitor EMP implementation, compliance with ECC conditions and applicable legislation; and (iii) establishment of environmental guarantee fund by proponents of Category Red projects to cover MMT’s expenses, any repair or rehabilitation works, and compensation for project-attributable damages.

162. The principal issues relating to environmental planning and management identified in this section are set out below.

8.4.1. Relating to RAJUK and Environmental Planning in General

163. In principle, environmental management in RAJUK is carried out through:

• land use planning and the planning permission, both of which are intended for the efficient use of land resources and protection of the environmentally sensitive areas; and

• the required environmental assessment (IEE and/or EIA) of its projects, for protection of the overall environment.

164. Yet RAJUK has no clearly stated environmental mission, goal, and target outcomes in its plans and programs; hence essentially does little in the way of environmental planning, i.e. the integration of environmental, social, economic, institutional concerns to achieve sustainable development. It is basically unconcerned with environmental planning. This has had serious consequences for Dhaka’s environment.

165. It does not have an integrated urban infrastructure development plan that addresses the cross- cutting environmental issues and that features “promoting environmental management” as one of the building blocks of sustainable development. Therefore, there is no common framework for infrastructure development in the DMDP area within which all other agencies prepare their plans, programs and projects. The result is haphazard and unsustainable urban growth, wherein infrastructure provision is reactive, fragmented and rendered inadequate and/or inefficient. Similarly it does not use integrated land use and transport planning as means to channel development to more environmentally sustainable

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locations.

166. It has done little to tackle the issue of slums. In consequence, the adverse environmental impacts associated with slums remain unchecked while the exposure of the slum population to environmental hazards continues to blight their lives.

167. It does not have an environmental planning framework to follow as it develops projects. Project environmental assessment, mandated under the Environmental Conservation Act, is focused on identifying project impacts and recommending mitigation measures prior to execution. RAJUK has reportedly undertaken environmental assessment of some of its projects but there is little evidence that these have been in any way effective adequately in planning and designing mitigating the loss of environmental assets/ ecological services, e.g. through the recovery of the storm water retention capacity lost in the filling of wetlands. It is also necessary to obtain an Environmental Clearance Certificate (ECC) prior to the grant of planning permission, yet this is requirement is often ignored. The ECA’s environmental safeguard mechanisms have therefore been ineffective in reversing the trend of increasing environmental deterioration in Dhaka.

168. At the same time, there is a disconnect between the grant of Land Use Clearance Certificates (LUCs) by RAJUK and ECC’s by the DOE. LUCs are granted based on general compliance with the relevant DAP by RAJUK but with no DOE input. On being granted an LUC, the applicant then submits a detailed planning application which then also forms the basis for the ECC application. The LUC procedure thus does not involve explicit consideration of environmental legislation (particularly that related to not affecting open spaces or water bodies) while the ECC application is primarily concerned with site specific environmental requirements, e.g. on site waste treatment, EMP requirements. Reviewing the LUC/ECC approval process so that the two become fully integrated would enable a more comprehensive assessment of proposed development to be undertaken.

169. These issues are compounded for large development projects by the absence of significant consultation and collaboration between RAJUK and environmental authorities, especially DoE and BWDB. This situation has to be redressed.

8.4.2. Relating to RAJUK and Development Control at the Macro (Strategic) Level 170. The status of current plans has been described in Chapter 3. For the purpose of this Chapter, the main point is that there is currently an approved Detailed Area Plan (DAP) which, following lengthy delays, came into force in 2010. The approved version, following acceptance of the recommendations of the DAP review committee, includes: (i) restoration of filled flood flow zones; (ii) 50-meter setbacks from riverbanks; and (iii) exclusion of 17 existing developments in designated flood flow zones. However with all the delays, coupled with little or no previous enforcement by RAJUK, the DMDP has been superseded by the realities on the ground of continuing unplanned growth, deviations from the Plan, and conversion of wetlands and agricultural lands to urban uses.

171. The lack of enforcement has been exacerbated by RAJUK’s role as developer prevailing over its role as development agency; wherein its economic interests has far outweighed environmental concerns, without providing due trade-offs for the lost ecological service of storm water retention and groundwater recharge. Furthermore, as RAJUK violates its own plans and national laws, it cannot expect others to comply and or to effectively enforce against such contraventions. The result has been a

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continued, dramatic, loss of wetlands55 which has generally degraded Dhaka’s environment and has the potential to considerably increase the damage from future severe flooding.

8.4.3. Relating to RAJUK and Planning at the Micro (Plot) Level 172. Through its failure to properly monitor and enforce approved planning applications, RAJUK is party to the widespread contraventions in building heights, setbacks and right of way encroachments that are all contributing to the incremental degradation of Dhaka’s environment.

173. Building permits do not necessarily guarantee environmental management practices by contractors, unless strictly stated in the permit as an obligation of the contractor and the fulfillment of which shall be monitored. A common sight in the vicinities of most construction sites in Dhaka is stockpiles of construction aggregates and debris on sidewalks and spilling onto road carriageways, causing traffic, safety hazard and filling of urban drains. The high level of particulate matter in the air, partly attributable to construction activities, also proves that poor environmental management practices from building contractors are neither strictly imposed nor monitored. What RAJUK (and other responsible agencies such as DCC) has failed to see is the opportunity to use building permits and construction site monitoring to forge a partnership with contractors for environmental stewardship to ensure that construction activities are implemented in an environmentally sustainable manner.

8.4.4. Other Issues Relating to Environmental Management 174. Other issues relating specifically to environmental management are:

• There is no regional version of the National Environmental Management Action Plan to guide RAJUK, DCC and other Dhaka agencies.

• Weak pursuance (and enforcement) for the use of clean technologies by industries, especially the brick manufacturers

• Lack of public disclosure of environmental data, particularly that resulting from monitoring activities. The public deserves to know the state of the environment as it affects the quality of life.

• It is hoped that the on-going update of the Environmental Conservation Rules will provide effective implementing rules and guidelines, particularly on the application of the 50-m setback from rivers; these should include their on-site physical demarcation.

175. Other issues essentially replicate those that have arisen elsewhere in this Report:

• Inter-agency co-ordination and collaboration has been very weak and partnerships with stakeholders, especially local government units and communities have not been pursued. The result has been very poor environmental management in terms of compliance, enforcement, monitoring and the development of pro-active initiatives.

• RAJUK, DoE and BWDB, as well as other relevant institutions are confronted with limited funds and shortage of trained/qualified human resources. Hence, they are unable to effectively carry out compliance monitoring, enforcement and monitoring and evaluation of environmental performance.

55 More detail is included in Sections 2 and 3.

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• Infrastructure provision has been reactive, not pro-active, and has thus not sought to prevent environmental problems from arising.

• Implementation of sector projects is un-coordinated and fragmented and, therefore, does not effectively address the cross-cutting environmental issues. • Above all the absence of an environmental cell, or indeed any environmental planning capacity within RAJUK, prevents it from properly addressing environmental issues in the design and implementation of its projects.

176. Options for addressing these issues are presented in Chapter 11 where they are integrated with those arising from other sections of this Report.

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9. ORGANISATIONAL DEVELOPMENT, HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT

9.1. General

177. This section provides a summary of the main organizational development, human resource development and management issues identified during the study. Considerably more detail is provided in Volume 3 of the report which contains the following 5 advice notes:

• SRPG Advice Note No.1 Corporate Management. • SRPG Advice Note No.2 Human Resources Management. • SRPG Advice Note No.3 Human Resources Development. • SRPG Advice Note No.4 ICT and Technology in the Workplace. • SRPG Advice Note No. 5 Community Outreach Strategy.

178. Bangladesh, and Metro-Dhaka in particular, have been undergoing a far-reaching socio-political and physical transformation. However, up till now, while there has been significant organizational restructuring among the agencies charged with city governance and development, the challenge of radically refocusing the resources available through a coherent ‘change management strategy’ has not been attempted.

179. Dhaka’s urban planning and governance agencies must embrace change. In the case of RAJUK, the agency is duty-bound to adopt a strategic corporate management plan that is relevant, agile and is able to be implemented by the management and the staff of and ultimately successful for the city residents as clients. The overriding priority is to establish a system which: a) inspires trust and inspires confidence; b) which satisfies the basic needs of city residents, businesses and investors; and c) which provides for continuous monitoring and evaluation of performance. Institutional reorganisation, rationalisation and reform are at the heart of a transparent corporate management process. 180. Organisational development covers two lines of ‘development’: Development as ‘bigger’ and development as ‘better’. Bigger – where overall institutional capacity is extended and reinforced to meet the demands arising through new and additional responsibilities; and better – where individual institutional responses and processes are deconstructed, reviewed and reengineered for greater efficiency. So organisational development can be a progression – where the responsibilities and functions of the organisation change, almost always expanding to meet new and/or evolving challenges; but it can and should always also be concerned with improvement – where existing processes are realigned and/or reinforced to meet new and existing challenges more effectively.

181. In relation to RAJUK, while the transition of modern Dhaka over the past 40 years from a new capital for a new nation to an international mega-city might suggest that institutional priorities will be concerned with making the organisation ‘bigger’, the SPRG analyses indicates that, conversely, all the immediate and short and priorities concern making it ‘better’. There are two reasons for this:

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• There has been some organisational development and an ambitious establishment expansion under the current RAJUK management team with 8 fully staffed district offices56, but: a) resource targeting and mobilisation; and b) institutional performance are still major issues. 57 • In order to use the structure and personnel of an existing organisation as model to generate or ‘clone’ additional capacity to meet increased demands the ‘parent’ institutions should first be brought up to agreed minimum standards of operational efficiency.58 Expanding existing organisations - without addressing current structural and operational inefficiencies - will simply exacerbate these existing problems and complicate reform.59

182. The Government has recently reaffirmed RAJUK’s mandate via the new establishment, so now RAJUK needs clear policy guidance, support and freedom of operation to move beyond its core business and address metro-scale planning and development challenges more effectively.

183. Dhaka’s extraordinary growth certainly justifies the decision to make RAJUK ‘bigger’, to gain the full benefits of this expansion, it is still necessary to review and refine RAJUK’s business model – i.e. make it ‘better’. RAJUK needs access to the resources it has been allocated to carry out this mandate; and RAJUK needs clear performance targets for each aspect of the metro-urban mandate.

9.2. RAJUK Programme Planning and Budgeting

184. The viability of strategic corporate management approaches hinges on the potential to introduce a coherent process of programming and budgeting to support appropriate action and investment across the full spectrum of RAJUK’s operational mandate. And it is also our view that there are very considerable obstacles blocking the introduction of such a process, as will be seen below. RAJUK, in common with all Bangladesh government agencies engaged in major physical development, is subject to close control by its parent ministry and occasional intervention by the Country’s elected leadership. Control is exercised via:

• Direct operational instructions delivered through the Ministry, which may include both mandatory requirements for specific policy action and an obligation to prioritise nominated physical development projects; and • the dual budget system, whereby close control on operational spending and recruitment of professional expertise under the Revenue Budget imposes arbitrary limits on the agency’s development projects (and associated professional expertise) which are funded via a separate Capital Budget.

185. The RAJUK budgets cover both income and expenditure; with income derived from, inter alia: land and property sales, fee income and bank interest on deposits. For the most part, RAJUK is not funded directly by the national exchequer; in this respect it is different from substantially ‘administrative’

56 The new workforce structure includes 2 urban planners with 13 deputy urban planners and 26 assistant urban planners and 2 architects with 5 deputies and 10 assistants. The number of authorised officers, who deal with planning and building applications, will increase to 24 from existing five. 57 The consultants acknowledge that there have been recent improvements in urban management under the current RAJUK management; however this is limited and many aspects of metro-governance have yet to be addressed. 58 By ‘clone’ we mean building capacity in an operational unit till it is ‘over-strength’, then splitting it to form two such units. This is as opposed to splitting before building up which results in two weakened entities which may never recover the desired operational strength. 59 This is also the case with DCC dividing to provide resources for DCC (N) and DCC(S).

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government departments which surrender any minor income to the Ministry of Finance and in return receive a block grant. In most years, RAJUK is allowed to bank its entire direct income and also gathers interest on returnable deposits lodged in respect of land and property acquisition applications. Ironically, while RAJUK is generally permitted to retain its entire operational surplus, there are severe constraints on the use of the surplus, particularly in relation to urban investments that might be construed as effecting a cross-subsidy.

186. The modest percentage of this accumulating surplus represented by administrative fees and levies is tapped to cover the costs of the agency’s operation – this is channelled through the Revenue Budget. RAJUK’s operational expenditure (personnel, buildings, equipment, travel and supplies) is currently in the order of US$7 million per annum (3% of the development budget) escalated at 10% to 15% per annum to cover inflation.

187. The separate Development Budget is primarily funded by RAJUK’s land and property sales, but there is also an annual allocation from Ministry of Finance to cover Annual Development Project (ADP) programmes allocated to RAJUK as a government implementation agency. The current combined development budget is about US$233 of which US$58 million or 25% is ADP. RAJUK projects include their own development sites – within which they may be obliged to fund essential infrastructure provision by utility and service agencies – and priority urban infrastructure projects. The latter are generally off- site infrastructure components functionally associated with RAJUK development sites.

188. RAJUK’s project planning encompasses both a three-year rolling programme (which can accommodate multi-year projects extending beyond this time-scale) and the annual investment programme. The annual budgeting process for RAJUK comprises the following steps: 1. Chief Engineer, sitting in conference with an ad-hoc development committee, establishes project priority from among RAJUK’s in-house project proposals (including variously spatial plans, building designs and construction) 2. RAJUK nominations are finalised by the Board and forwarded to the Ministry of Housing and Public Works via Project Pro-forma and given PP numbers.

3. The Ministry reviews this list and endorses (or may on occasion, modify or delete) each PP, at the same time adding any Prime Minister’s Priority Projects falling within the RAJUK area and any additional projects they may propose themselves.

4. Projects under US$3 million60 are approved by the Ministry; above that level, they are forwarded to the Planning Commission.

189. The composite list of projects coming in at more than US$3 million is reviewed by the National Planning Commission against the current National 5-year Plan and the development plan and priorities; and is also coordinated with projects put forward by other ministries. Own-funded RAJUK proposals are generally straightforward, but projects funded by the national treasury can be more difficult to finalise and implement on schedule.

190. There is a half-yearly budget review. This is important since, on average, less than 50% of the development budget is disbursed due to chronic processing delays and structural inefficiencies in the construction sector. There are no incentives or penalties applied to support more efficient project implementation – neither in the case of responsible RAJUK project officers, nor in the case of RAJUK’s

60 The actual cut-off is 250 million Taka, which is US$3.055 million at current rates.

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contractors. Indeed, within Bangladesh, such penalties are seldom applied, even when clear contractual liability can be established.61

9.2.1 A new approach to Programme Planning and Budgeting

191. The Bangladesh planning and budgeting system is not unique or even uncommon, but it does feature three critical characteristics which severely limit RAJUK’s ability to address metro-scale planning and development issues in a coherent way through sound corporate management.

• Firstly, there is no spatial element in the system. While the building and development control system is nominally city-wide, it is underfunded, underutilised and struggling to remain relevant. Virtually all other investment is concentrated in and around RAJUK’s site development initiatives. Note, these are developments which are ambitious, but relatively small in metropolitan terms. • Secondly, the RAJUK’s scope for independent action is severely limited, despite the autonomy enshrined in the Town Improvement Act, the agency’s enabling legislation. Almost all key decisions are effectively made by the Ministry at central government level. • Thirdly, RAJUK staff employed under the development budget are not civil servants and cannot be managed as part of a common pool of human resources. This issue affects all government-sector implementation agencies in Bangladesh. Where there is a robust pipeline of new projects to provide continuity of employment, this is may not be a material issue for the staff involved; though it does have HR implications, as it virtually precludes lateral transfers and optimum utilisation of labour. But, when there is a hiatus or reduction of the flow of new projects coming on-stream, long serving and valuable staff may be lost. The invidious discrepancy in employment terms and conditions between revenue budget staff and development budget staff is obviously undesirable in relation to ‘institutional memory’, work continuity and matching potential expertise with assigned tasks.

192. RAJUK’s project list is deliberately limited by the Board to match the implementation capacity of the agency, i.e. the number and scale of contracts RAJUK can commission, put out to tender, let and supervise with the professional staff resources available via the Revenue Budget. RAJUK’s metro-scale mandate requires, at the very least, rolling sub-area investment programmes based on priority infrastructure and service needs and regular demand assessments. The present system marginalises perhaps 80% of the city.

193. The prescribed process of staff transfer from the development budget to the revenue budget is inevitably protracted and seldom successful. Up till recently, RAJUK had not attempted to secure Public Service Commission / Ministry of Finance approval for large-scale absorption of contract staff into the Revenue Budget. Nevertheless, when new posts are open for recruitment contract staff can apply and generally up to 30% of new professional staff cross the budget line. Overall, the situation means that experienced professionals must frequently be let go and rookie civil servants brought in.

194. We may note here that the process of transfer is a particular ‘minefield’ for RAJUK. In the face of pressure from trade unions RAJUK now proposes to reabsorb 372 development budget employees previously terminated in 2003 into ongoing construction schemes. A proposal, currently awaiting approval by the Ministry of Public Administration since August, will reabsorb terminated employees at a

61 Government of Bangladesh Public Procurement Rule 2008.

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ratio of 25% of scheduled new posts. The recalcitrant former staff are lower division clerks, tracers, draftsmen, computer operators and data entry cum accounts officers.62

9.2.2 Corporate Planning and Budgeting Systems

195. While RAJUK direct investment comprises 90% of the Ministry’s urban investment programme, this does not mean that the ministry concentrates on the efficient management of Dhaka. The crucial aspect of ‘regional planning and governance’ for the capital city is effectively in the hands of a diffuse, loosely linked decision-making apparatus extending from the RAJUK Board all the way up to the Prime- Minister’s Office. Metro-Dhaka accounts for 10% of the population and 38% of National GDP, so there may be some justification in maintaining central control of the capital city; but using this multi-modal decision-making model, Dhaka has become ‘unmanaged’ and unmanageable.

196. SRPG has considered a number of alternative management models for metro-Dhaka based on a thorough analysis of the current situation and consideration of selected ‘International Case Studies’. The short-term solution suggested by SRPG is as currently advocated by RAJUK; and that is to elevate the post of Chairman from the status of Additional Secretary to full Secretary. This will help, but it only removes two levels and one node in the decision-making process. A fully empowered CEO, whether via elected or appointed office, remains the longer-term goal from the perspective of efficient corporate management.

197. In relation to budgets, RAJUK appears to be profitable and well-managed only because agency limits its role to tasks that can be carried out by the available staff and within the generous framework of a guaranteed income from the sales of land and property both acquired and disposed of at sub-market rates. A more aggressive business plan which maximises income to address the infrastructure and low- cost housing backlogs and optimise city-wide benefits is required.

9.3. The RAJUK Business Model

198. The RAJUK business model is based on ‘contracting out’ all substantive plans, designs and physical works. Contracting out requires a small expert staff with high-level technical, professional, management and communications skills to deal with consultants and contractors. This concerns both qualified professional with university degrees and survey and inspection staff at the semi-professional level.

199. RAJUK has about 35 major physical works projects currently in progress in the field. In addition, there are frequent design contracts and periodic plan preparation contracts to define, specify and supervise. Thus the cadre of expert staff must be skilled in the realm of ‘multi-tasking’ and adequately trained and equipped to operate effectively both in the office and in the field. Accepted good practice is that contracting out is best served via a substantially horizontal management structure as opposed to the conventional hierarchical pyramid structure of traditional large bureaucracies.

200. The recently approved RAJUK establishment contains elements of both management structures. There are, for example, a substantial number of qualified engineers, but there are also large

62 RAJUK has paid salaries to suspended staff without designated work, under court order. Under aggressive direct action by former employees and acute political pressure RAJUK has created new posts to accommodate staff along with programmed new recruitment. The staff concerned are not regarded as an asset and would in any case be regarded as surplus to requirements under the SRPG restructuring proposals which seek to develop multi-tasking and shed sub-professional ‘support’ staff.

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numbers of clerical and manual support staff under the supervision of the 23 Executive Engineers.63 During the consultation process, while the issue of understaffing in technical and professional position was a constant theme, the question of support staff shortage did not arise.64

201. The balance between professional and unskilled staff in the RAJUK central office, both existing ‘in-post’ and as set out in the new establishment should be reviewed prior to major recruitment. On the other hand, the design (structure and staffing) of the 8 new regional offices is appropriate, although there may be a case to add qualified staff or perhaps specialist cells in relation to ‘community outreach’ and public relations.65

9.4. Proposed New Operational Units

202. This section reviews RAJUK’s the changes that will take place when RAJUK’s new institutional structure is implemented. A number of additions and minor restructuring are suggested; more detail is provided in SRPG Advice Note No.1 Corporate Management.

9.4.1 Department of the Chief Town Planner 203. RAJUK’s emerging metro-urban planning and development mandate suggests a need for additional professional skills in the fields of environment, land readjustment and slum upgrading.

• Environment: Enhancement of the environmental management capacity of RAJUK via the creation of an environmental cell within the Planning Section • Land readjustment and slum upgrading: The consultants propose that RAJUK takes a lead in promoting this priority area of the urban agenda by establishing multidisciplinary task forces or sells to engage in a programme of: a) land readjustment and b) informal settlement upgrading (these techniques are set out in detail in the proposed new Town Improvement Act).

9.4.2 Department of the Chief Engineer (Project and Design)

204. RAJUK’s new institutional structure will create an additional Chief Engineer post. However the associated project design department is currently seen as being potentially under-employed due to the essentially cyclical nature of project design work. Additionally, unnecessary spare capacity is created because ‘Development’ and ‘Project and Design’ are arranged in symmetrical, hierarchical pyramids. However, RAJUK is responsible for a wide range of activities. Those which specifically require the attention of the Project and Design department are as follows: 1. Architectural and structural Design preparation, implementation and maintenance of Government Buildings and other structures. 2. Research and technology concerning urbanization and urban development, housing construction, construction, materials use and technologies. 3. Design of roads, culverts, bridges, fly-over, underpasses, multi-storey car parking facilities, development, improvement and protection of water bodies and reservoirs. 4. To adopt and prepare policies, guidelines, rules, reform and implementation regarding building construction.

63 While there are around 140 engineers at all levels in the establishment, there are substantially fewer ‘in post’. 64 e.g. in Development Control there are currently 11 out of 51 surveyors in-post – just 21%. 65 Two new offices in DCCN, two in DCCS plus one each in Gazipur, Savar, Keraniganj and Narayanganj.

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205. Of these, the most important concern transportation planning. It is vital that: (i) key transport projects are identified through systematic transport planning and investment coordination with DTCA; and (ii) new land development projects managed and approved by RAJUK incorporate essential, associated transport infrastructure.66 These continuous and periodic tasks necessitate the recruitment of specialist professional staff in both RAJUK and DTCA and the formation of a dedicated transport planning cell in RAJUK working in collaboration with the Development Control directorates 1 and 2.

206. Additionally, increased capacity is required in relation to achieving acceptable standards of building construction. Since this work involves developing, testing, monitoring and applying standards activities should be based in the ‘Design’ department and there should be close coordination with the Implementation Directorate (under the same Member) which supervises RAJUK’s construction projects and the Development Control directorates 1 and 2 under Member – Development Control which constitute the public interface for building construction.

• Transport planning: Enhancement of the transportation management capacity of RAJUK via the creation of a multidisciplinary Transport Planning cell (comprising engineers and planners) within the Engineering Section. • Construction standards: Enhancement of the building design and control capacity of RAJUK via the creation of a multidisciplinary Construction cell (comprising engineers and architects) within the Engineering Section.

9.4.3 Department of the Chief Engineer (Implementation)

207. Physical works are under the supervision of the Chief Engineer – ‘Project Preparation and Design’. This assignment was made because, unlike the parallel department headed by Chief Engineer ‘Implementation’ - which is projected to enjoy a continuous steady workload, ‘design’ is a periodic activity with a variable peak-load. So the direct works unit was slotted in there to take advantage of spare capacity. However, the justification is weak and the assignment should be reviewed and reorganised within the Implementation Directorate as suggested here.

208. The role of RAJUK should be clarified in relation to carrying out physical and site works by defining the resources available for: a) maintenance; b) demolitions; c) contractor support; d) emergency response; and e) other physical works. If these functions are legitimate and appropriate, they should be articulated within the RAJUK institutional structure.

• Maintenance: The consultants understand that RAJUK plans to retain selective jurisdiction over future development sites (e.g. Uttara, Purbachal) to maintain acceptable urban environmental standards. The city corporations have limited maintenance funds and public assets inevitably deteriorate67. In the longer term, the consultants would argue that this issue would be better resolved by empowering the city corporations via a rational and appropriate land and property tax system which would raise sufficient revenue to provide these services.

• Demolitions: RAJUK carries out enforcement action and necessary demolitions using in- house and other resources under the supervision and coordination of the Chief Magistrate.

66 The essential prerequisite is an agreed policy framework; this is outside the scope of organizational development, but it is critical. 67 The current situation, where the responsibility for all municipal services is handed over to the city corporation within 6 months of contractor hand-over, while logical, legal and administratively correct has reportedly been unpopular with residents.

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It is argued, reasonably, that the use of private contractors in this sensitive and difficult task complicates enforcement action.68 The task is indeed important and thus a special unit or task force should be designated within the organisational structure.69 • Contractor support: The consultants are advised that RAJUK provides on-site support to its contractors by ‘lending’ plant and operators for use when working on RAJUK projects. This support is provided without charge as ‘plant hire’ cannot be conducted within the scope of GOB civil service regulations. The consultants are concerned that such arrangements encourage ‘briefcase contractors’. These are small firms without permanent head office infrastructure, professional staff, or access to necessary plant and equipment to carry out public works contracts. Moreover, the value of this assistance, when calculated in respect of the ‘whole-life cost’ of heavy plant such as a D8 Bulldozer is very substantial.70 This service therefore appears to constitute an inappropriate public subsidy and should be reviewed and regularised as necessary before incorporation in the institutional structure.

• Emergency response: RAJUK is party to the implementation of the Dhaka disaster management plan. The agency has commitments to support emergency response with technical expertise, heavy plant and equipment. RAJUK takes these responsibilities very seriously. As standby operation, this function does not need a permanent institutional structure but rather a rapid response mobilisation plan. The potential needs of the resources tagged as available for this function vis-à-vis various disaster scenarios should be reviewed annually. • Other physical works: The demand and need for a physical works capacity should be assessed annually, budgets reviewed and incorporated where necessary in the institutional structure.

9.5. Training

9.5.1. Existing Training Programmes 209. Analysis of RAJUK staffing confirms that they are clearly understaffed and generally under- resourced in the context of current obligations, particularly concerning urban and regional planning and development management functions. In effect, decades of chronic understaffing have created a situation where professional positions have been rendered into substantially administrative functions.71 Thus, when considering RAJUK’s institutional expansion, there is a clear need to return the agency’s key human resources to their professional roots. The consultant’s assessment of current training activities revealed a number of concerns:

68 The consultants were invited to observe RAJUK carrying out demolitions in the field. The intervention was required to clear a designated road reserve prior to road construction. On the basis of the observed action, the consultants judged the enforcement action to be a well-run process. 69 It appears that RAJUK is serious about removing unauthorised development and moving ahead with essential infrastructure provision. It may be noted from the RAJUK Annual Reports that the fines received for ‘unauthorised construction’ have increased from Taka 5,882,849 (US$72,000) in 2009-10 through Taka 84,842,075 (US$ 1 million) in 2010-11 and Taka 204,646,376 (US$2.5 million) in 2011-12. This impressive growth coincides with the appointment of a full-time Chief Magistrate in RAJUK under the Director of Law in the department of the Member for Administration and Finance 70 Whole life cycle running costs for a D8 Bulldozer are very substantial, about US$100/hour. A JCB Backhoe Loader can be rented from $15 per hour to US$175 per day in India. Larger and smaller machines incur pro-rata costs. 71 The same shortfalls are evident in city corporations and pourashavas, in respect of their governance and local service delivery obligations. However, this is not the complete picture. Urban management institutions are further curtailed in their ability to deliver routine functions efficiently because operational modalities do not make the most of available skills.

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• Training is poorly correlated with responsibilities - often the wrong people are trained and the training they receive may be under-utilised and not support RAJUK’s operations. • Over emphasis on technical and professional mid-career training when the operational priorities of the organisation are best served by in-house training on the broadly based subjects of administration, management of accounts and data management. • Providing training for short-term contract staff, given their lack of project ownership and institutional loyalty to RAJUK. Similarly, for new and recently qualified graduates who are likely to comprise the bulk of the staff specially recruited to ‘counterpart’ the Dhaka Regional Plan (DRP) plan generation process.

210. The consultants also question the value of providing training to staff with little ambition to practice their skills in house or are not interested in working as counterparts in the unrivalled learning environment of the plan-preparation offices set up by consultants contracted to prepare plans for RAJUK. Immediate training priorities therefore concern: i) development control, monitoring and enforcement for the new RAJUK area offices and ii) networking of problems, issues and best practice solutions among local government planners.

9.5.2. RAJUK Training and Research Unit (TRU) 211. Proposals have been mooted for a RAJUK Training and Research Unit (TRU). This is still “just an idea”, although there are plans to construct a facility at some point in the future and a site has been identified in Kamrangir Char. In this regard, the consultants note that the Dhaka Regional Plan (DRP) TOR include the following: “RAJUK’s Training and Research Unit will lead the design and implementation of the three RDP capacity building and training modules. The programme also supports RAJUK in establishing the Training and Research Unit through additional curriculum development, so that ‘the training modules can be institutionalised and will be provided in a sustainable manner’.72 The SPRG Consultants recommend a revision of this prescription. It is clear that the TRU will not be operation in time to provide any effective support to the DRP study.

9.5.3. Staffing the Zonal Offices 212. It is vital that new staff assigned to the zonal offices arrive in-post with: i) an adequate knowledge of RAJUK administration and procedures; ii) a good working knowledge of planning law, specifically the combined Planning and Building Regulations of 200773; and iii) the urban geography, statistical profile and socio-economic characteristics of the area which they will administer. In consequence, mission-specific training should be developed in association with RAJUK staff, dealing not just with the well-proven RAJUK in-house short-course and training modules, but also focussed on detailed operational guidance related to the new recruits’ mission.

213. Ideally, new staff should be mentored by experienced RAJUK development control staff. However, since ‘significant buildings’ and ‘major construction projects’ will still be dealt with by the existing unit in the RAJUK Headquarters, this unit will continue to have a substantial residual work-load which will restrict mentoring activities in the zonal offices. It is already seriously understaffed, overworked and relies on seconded staff from UDD. Hence, this alternative may not be feasible.

72 Project Administration Manual (PAM), Project Number: 39298 Bangladesh: City Region Development Project (CRDP), Asian Development Bank, October 2010 and Dhaka Regional Development Plan 2016-2035, Plan Preparation, Terms of Reference, Asian Development Bank, issued September 2011. 73 Dhaka Metropolitan Building Construction Rules (2007)

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214. Consequently, the consultants recommend a composite approach: RAJUK should begin recruitment immediately, to the point of ‘over-staffing’ with a ‘heavy crew’ to man the existing, central development control unit. The agency can then use the reverse process of ‘work experience’ to seed the first 2 zonal offices with nuclei of experienced staff before moving on to the next offices that open.

9.5.4. RAJUK Training Needs Analysis (TNA) Self-assessment 215. The Consultants conducted a Training Needs Self-assessment of RAJUK staff through June 2012.74 The survey combined questions on: i) training types and formats; and ii) perceptions and job- satisfaction of senior RAJUK staff to find out how these key individuals view the mission and future direction of the organisation.

216. Thirty pro-forma questionnaires were issued to senior professional staff with management responsibilities and this produced 24 returns (80%), most of which represented full, usable responses. Respondents offered their views on the workplace and training options via a simple five-point scale. This ‘agree/disagree’ format was maintained to facilitate completion of the pro-forma through its various lines of enquiry. Respondents clearly considered their answers carefully and gave the matter some thought, as the completed forms show numerous changes and corrections. The exercise successfully opened a dialogue on how the agency’s technical horizons might be expanded through the latent ambitions and attributes of the existing staff.

217. Key findings from the TNA are

• If RAJUK can broaden the agency’s training perspective (from the existing focus on internal processes and procedures) to embrace: a) crosscutting management skills; and b) key professional skills, it is apparent that these new opportunities will be welcomed. • By and large, there is significantly more interest in HRD (training) support infrastructure as opposed to (non-training) HRM support. There is a very clear preference for longer, more substantive training events and enthusiasm for ‘alternative’ training modalities, with ‘traditional’ lecture-based instruction being the least favoured. • There is very strong support for ‘on-the-job’ training - an extremely effective and, moreover, cost-efficient approach. • On a more detailed level, it seems that basic ‘academic’ skills (summarising, note taking, report writing, etc) are poorly developed among junior staff, but there is also cross- confirmation that young professionals are generally trusted, reliable and keen to learn. • HRM and HRD priorities highlight inter alia: i) the need for more training and better targeted training, including language and ICT skills; and ii) a need to promote professionalism and impartiality in providing services to the public. • There is an understandable concern about low salaries and enthusiasm for ‘reward-based’ overseas study, but this is balanced by more considered responses on training methods and duration. • Overall, the SPRG Training Needs Analysis reveals an appetite and enthusiasm for both general and specialist training, which goes beyond current day-to-day needs. So existing staff capabilities give RAJUK the potential to both grow and increase operational reach and efficiency, to meet the agency’s emerging metro-planning and development responsibilities.

74Basic framework derived and developed from various sources, principally: Council of Europe Capacity Building Toolkit 2005, and Manual for Training Needs Assessment in Human Settlements Organizations, UNCHS /114/87/e ISBN 92-1-131038-5.

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218. More detailed results of the TNA are presented in Boxes 9.1 and 9.275. Box 9.1 summarises the priorities for cross-sectoral skills. These concern those aspects of institutional capability that are required in line management responsibilities, as opposed to specific specialist capacities and skills. The survey results suggest a lack of exposure to the concept of ‘corporate management’.

Box 9.1. Training Priorities – Cross-sectoral Skills

ƒ RAJUK Operations Planning and Organisational Management: The value of operational skills is acknowledged. However, there is a lack of enthusiasm for training in the essential communications skills-sets; and, significantly, a wariness concerning ‘administrative transparency’ and ‘public disclosure’. ƒ General Administration and Legal Affairs: Some respondents are comfortable with their level of expertise, but others would appreciate help. The need for specific new skills to operate branch offices and develop the public user interface is recognised. ƒ Public Services Delivered by RAJUK – Overall Management and Quality Control: Staff a recognise the value of specifically targeted management and quality ‘control skills to meet the day-to-day needs of RAJUK operations. ƒ Project-cycle Management: Respondents appreciate that ‘project-cycle management’ skills are required to meet the day-to-day needs of RAJUK operations, though ‘project cycle management’ itself is unfortunately seen as less crucial. ƒ Public Works Contracting and Public Sector Procurement: Training to support contracting and procurement skills to service day-to-day RAJUK operations is supported; however, there is some resistance in relation to guarding against ‘conflict of interest’. ƒ Information technologies (ICT) and ‘Digital Bangladesh': There is broad agreement on the agency’s responsibility to provide better and more targeted training in the use of ICT. ƒ Public Relations: In contrast to the response concerning RAJUK operations, transparency in the context of maintaining good PR is seen as important. However, respondents are perhaps less convinced of the importance of basic PR tools, e.g: ‘lobbying and advocacy’, ‘presentation’ and ‘social surveys’. ƒ Local Democracy: A significant percentage ‘strongly agree’ on the need for training and, by implication, subsequent involvement and action in this area of concern.

219. Box 9.2 summarises the training priorities of RAJUK in relation to the operation of the detailed area plan (DAP) system and development control, two of the main technical responsibilities of RAJUK. However, the core issues of ‘finance’ and ‘economics’ seem to challenge the ambitions of a significant number of respondents.

75 The full results are provided in Volume 3, Advice Note No.3 Human Resources Development.

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Box 9.2. Training Priorities – RAJUK’s Technical Activities

ƒ RAJUK Budget and Finance: Many more officers ‘agree’ than ‘strongly agree’ on all the necessary elements of training in this crucial discipline; and there is some dissent on the need for training in the use of financial instruments and the sensitive subject of user charges and fees levied on land and other transactions. ƒ Support for Economic Activity through a Business-enabling Environment: There is recognition of the value of these instruments viv-a-vis ‘land banking and assembly’, reflecting RAJUK aspirations. There is little enthusiasm for ‘small business support’ which is seen as marginal to RAJUK’s core business. ƒ Environmental Safeguards and Protection: There is a general pattern of agreement concerning the importance of environmental issues, with particular interest in ‘local environmental action plans’. However, ‘inspection’ and ‘supervision’ are significantly less popular, reflecting RAJUK’s long-standing reluctance to engage in this difficult task. It is clear that awareness is low in relation to ‘sustainability’ and ‘energy efficiency’. ƒ Engineering and Construction: This type of training is supported but the lack of enthusiasm in relation to ‘inspections’ and ‘contractor relations’ is of particular concern in light of increasing structural failures in the city. ƒ Urban Planning and Programming: ‘Environmental management’, ‘traffic planning’ and to a lesser extent ‘GIS’ stand out as areas of special interest. Environment at the strategic level is clearly a more attractive than ‘on- site monitoring’ as a professional responsibility. ‘Infrastructure’ and ‘pro-poor planning’ are perceived as ‘worthy’ but not crucial. ƒ Planning and Implementation of DAP Development Plans and Policies: Detailed area planning’ is clearly a subject of great interest; however, the management of the process is undervalued. A low level of interest in ‘implementation’ illustrates a general bias towards ‘office’ over ‘field’ work. The low interest in ‘optimising benefits from counter-parting arrangements’ reflects the fact that revenue staff (as opposed to contract staff) do not ‘counterpart’ consultants on a technical level. ƒ Development Control functions of RAJUK: There is a high level of enthusiasm for additional and specialist training in this field which may be expected given the current understaffing and pressures involved in carrying out the job. ƒ Public Utilities and Services Provision functions of RAJUK: This topic attracts the least favourable response of all the technical specialisms. There is thus only limited recognition of the need for RAJUK to address this specifically-mandated development task, let alone promote additional training on the subject. ƒ Role and function of RAJUK in Metro-Dhaka land management: RAJUK staff are aware of the importance of the land market, if not exactly enthused by the prospect of training on this topic. A small number of respondents with a strong aversion to providing ‘access to land for the urban poor’ appear unaware of the agency’s responsibilities in this matter. ƒ Role and function of RAJUK in Metro-Dhaka housing provision: There is a solid awareness of the value of specialist training in relation to this function. Perhaps significantly, there are reservations concerning ‘housing management’ and ‘housing for special purposes’. Objections to possible training in ‘housing management’, ‘low income housing’ and ‘special purposes housing’ are understandable in the light of the agency’s position, but the reservations concerning ‘housing policy’ are less easy to understand.

9.6. Information and Communications Technology (ICT)

220. There is a common misperception that only rich countries can afford the latest technology and mainstream technological innovation in governance. This is true only in relation to the gap between a) ‘cutting-edge technology’ which is burdened with development costs and can be unreliable; as opposed to b) “appropriate technology” is tried, tested and cost optimised. Intelligent use of appropriate technology allows rapidly developing countries like Bangladesh, to optimise the capacity and the reach of scarce and expensive resources, i.e. to do more with less.

221. All SPRG target government departments have web-sites, access to personal computers and computerised management systems of various types; but none are making the most of opportunities offered by new technologies. RAJUK, DCCN and DCCS and to a lesser extent the corporations and Pourashavas, have existing ICT systems which are generally utilised to improve the dissemination of

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government programmes and benefits to the general public. A brief review of the installations systems and web-interfaces of the various organisations we have visited, confirms that these are:

• chronically under-resourced with regard to both annual funding and personnel; b) poorly integrated with operational responsibilities (e-government applications); • limited in their perspective concerning the operational possibilities and efficiency gains available; • underutilised in relation to e-learning demands and possibilities (e-learning applications); and • system administrators have unrealistic life-cycle expectations in respect of both hardware and software.

222. RAJUK’s metro-scale mandate requires high-quality ICT systems; not just for processing efficiency, but also to meet increasing public information and process transparency obligations. In addition, the value of the current ICT systems can be improved through better integration; more generous operating budgets and optimised utility - in relation to access and action by operational staff and the public. Accordingly, SPRG Advice Note 4 describes the steps that are necessary to create an upgraded and open ICT system for RAJUK.

9.7. Community Outreach

223. Community outreach is a key element in effective urban planning and governance; and it becomes essential as democratic systems develop and an increasingly aware population emerges to demand a say in how their city is run. The challenge is to manage the process of ‘community outreach’ in a way that responds to and serves the needs of the whole urban community, not just the newly empowered and voluble. At present, RAJUK is almost completely lacking in this respect. There is negligible provision for consultations and participation in plan-preparation and land development decisions and little information is provided on many aspects of RAJUK’s activities. The result is intense media criticism and, on occasion, social unrest, sometimes violent.

224. A substantial number of the SRPG proposals will cover these aspects. It is however considered essential that they should not be seen as a series of disconnected and uncoordinated activities responding to particular problems or pressure groups but should form part of a comprehensive community outreach strategy with the following over-arching objective¨

to Increase public confidence in the independence, fairness and effectiveness of RAJUK as the principal urban planning and development authority.

225. Specifically this strategy should have the following objectives:

• Increase Dhaka communities’ awareness and understanding of the role, responsibilities and obligations of RAJUK in urban planning and development. • Help inform the community generally about urban planning, development processes and responsible agencies. • Provide information about the operation of planning laws and regulations, development opportunities, housing and investment options. • Assist with developing the various diverse Dhaka communities’ understanding of alternatives and options in addressing their needs as urban residents and key stakeholders in the future of Dhaka.

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10. INTERNATIONAL CASE STUDIES

10.1. General

226. Mega-cities, due both to their size and their administrative complexity, are a challenge to both manage effectively and maintain on a path of sustainable development. Yet as economic, social and cultural entities, they need to be planned and managed in an integrated way. Above all, international experience demonstrates the axiom that ‘there is no one perfect system of government’ and, moreover, that while preferred outcomes may be clear, the options to achieve these ends can hinge on the application of a wide range of alternative models and systems, often in combination.

227. Three international case studies were carried out as part of the research for this study. The objective was to examine different models of metropolitan region governance and planning institutions and to assess their applicability to the development of options for the future governance of metropolitan Dhaka. The three cities selected were: i) Delhi: a comparable South Asian mega-city with an established democratic system of government which is making progress in relation to establishing and following legally mandated planning frameworks; ii) Jakarta: a South-east Asian mega-city with a well- developed system of administration and an emerging democracy; and ii) London: a major city in a developed country with sophisticated planning system.

228. Each case study provided: i) a brief summary of key geographic, population and economic situation of each city; ii) responsibilities for strategic land use, transportation and economic planning; iii) organisation and financing of regional institutions; iv) division of planning functions between different levels of government; and v) strengths and weaknesses of governance and regional planning institutions, and their applicability to the Dhaka situation. The results are presented in full in Chapter 10 of the Main Report.

10.2. Lessons Learnt

229. The international case studies generated a number of potential implications for Dhaka’s future metropolitan governance and planning system. Before summarizing the key points, it is worth pointing out that very few large developing country cities can be said to have achieved anything approaching sustainable growth and effective urban management across the entire metropolitan region. In most cities76, planning systems are weak with the result that urban expansion, almost entirely undertaken by the private sector, is generally unplanned leading to sprawl characterised by poorly developed road and utility networks and poor environmental management. Dhaka’s current predicament is therefore by no means exceptional. Summary findings from the case studies are presented in Table 10.1 while Figure 10.1 presents the recently established institutional structure for Delhi National Capital Territory. The Figure also includes the organization chart for the Bangkok Metropolitan Administration (BMA) which was mentioned during the final discussions with RAJUK. The BMA is of interest for two principal reasons: (i) the comprehensive nature of the services it provides, which include local service delivery as well as strategic/ city-wide departments; and (ii) democratic involvement provided by the upper level Bangkok Metropolitan Council and the lower tier district councils.

76 China is the obvious exception but their highly centralist, top down and all-embracing governance system is not applicable to more democratic and pluralist societies.

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Table 10.1. Summary of International Case Studies and Relevance to Dhaka

Topic/ Issue Findings/ Lessons Learnt Metropolitan / ƒ Two tier systems are the norm. In most cases, the upper tier is not directly elected Strategic but consists of supervisory councils, boards or committees with elected representatives from constituent local authorities. Governance ƒ Increasing importance given to metropolitan planning. ƒ London’s Green Belt is example of long standing ‘zero-tolerance’ policy. ƒ Dhaka is ‘better off’ that some cities as RAJUK already has mandated metropolitan functions and covers an area much greater than the main urban core. Devolution of ƒ Proposed RAJUK zonal offices almost certainly need to be eventually subsumed into planning system local authorities and should not remain separate. This will reduce overlapping mandates and increase the democratization of the planning process. Integrated Planning ƒ To reduce duplications and create opportunities for resource leveraging, and Budgeting metropolitan development authorities are introducing integrated cross-sector spatial planning and budgeting, which undergo a review process before implementing agency budgets are approved by the over-riding government for a region. Public participation ƒ Incorporation of public consultation and participation processes into planning is becoming the ‘norm’. Development control ƒ Enforcement of planning regulations is crucial; otherwise there is no point in and enforcement preparing plans.

Land development ƒ Land development functions are separated from planning functions and only agencies established for major projects requiring major infrastructure investment.

Private sector role ƒ Increasing efforts to manage and guide, not control and direct, the private sector who are responsible for the vast majority of urban development. ƒ Innovative and varied mechanisms being introduced to obtain developer and land owner contributions, in cash or kind, to the costs of off site infrastructure. Municipal finance ƒ As with enforcement, finance is crucial to plan implementation. ƒ Increasing efforts to raise local revenue generation and develop a stable system of government transfers. Low income housing ƒ Indonesia has had a long term slum upgrading programme while London had, and Manila has, quotas for the provision of social housing in all major developments. The private sector is implementing land sharing deals in Mumbai; also tried in Cambodia. Although forced evictions continue, these can cause social unrest so many cities are now looking at innovative alternatives. Transportation ƒ Major investment in public transportation needed. ƒ Road standards need to be enforced and traffic issues should be included in all major planning applications. Environmental ƒ Environmental planning and management increasingly being mainstreamed into Management metropolitan planning and urban management. Particularly crucial if cities are at risk to natural disasters. ƒ Need for strong mechanisms to mediate between often conflicting social, economic and environmental aspects of sustainable development. In London, environmental issues are fully incorporated into the planning system.

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Figure 10.1. Metropolitan Institutional Structures – Delhi and Bangkok

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230. The most important general lessons from this review of international experience are:

• The need for much improved metropolitan management is increasingly seen by urban authorities and central governments as essential for sustainable development: making their cities more attractive and competitive to potential investors, improving quality of life and crucial, reducing risk of natural disasters and promoting social inclusiveness.

• As a result, more and more cities are striving to establish more effective metropolitan systems and institutions to strengthen the formulation, enforcement and implementation of strategic and local plans.

• Generally speaking these institutions are becoming more democratic, more transparent, and with more devolution as lower tier authorities take over local service provision, including urban planning.

• Creating more flexible planning systems to enable them to adapt to changing circumstances, and more affordable so as to reduce operating costs and non-compliance.

• Institution arrangements are being created to provide much greater integration between spatial planning, transportation planning and environmental management.

• Increasingly too these are trying to address resourcing issues so as to provide the funds for the necessary infrastructure. These include: (i) raising municipal revenues; (ii) increasing central government expenditure; and (iii) attracting private sector investment.

• Working with the private sector (developers and land owners, formal and informal) to achieve plan objectives, including developing mechanisms to increase private sector contributions, in cash or kind, for infrastructure, low income housing, open space and community facilities.

• The use of land development agencies for major or complex land development projects but which are functionally independent of the main planning system. The public sector concentrates on preparing the plans and providing major infrastructure but the private sector undertakes most of the land development.

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PART B. THE SRPG PROPOSALS

11. INTRODUCTION TO THE SRPG PROPOSALS

11.1. The Key Issues

231. Table 11.1 summarises the key issues identified in preceding Chapters and will thus form the basis for the Study’s proposals. The issues fall into three general categories: i) those that relate primarily to RAJUK and the urban planning system; (ii) those involving sectoral issues – regional economic development, transportation and environmental management; and (iii) those that relate to the wider issue of overall metropolitan governance and inter-agency co-ordination.

Table 11.1. Summary of Key Issues

Category Issue ƒ Lack of transparency, accountability and democratic oversight of RAJUK’s operations. RAJUK and the ƒ Outside pressures on RAJUK and its lack of decision-making and financial autonomy. Urban Planning ƒ Overlapping planning mandates between RAJUK and LGUs. System ƒ Inadequate enforcement of existing plans and regulations despite widespread contraventions by developers and land grabbers. ƒ Outdated planning legislation. ƒ RAJUK’s over–concentration on land development to the detriment of the wider metropolitan area and its entire population. ƒ Neglect of poor and low income households. ƒ Organisational issues: outdated corporate management and budgeting systems, limited delegation to senior and middle management, inadequate technical resources, under-staffing, low staff morale, poor working environment. ƒ Absence of metropolitan economic development strategy. Sectoral – Regional ƒ Insufficient allocation of planned employment areas. Economic ƒ Lack of co-ordination in infrastructure planning, budgeting and implementation. Development ƒ Chronic under-provision of infrastructure. ƒ Lack of integration between land use and transportation planning. Sectoral - ƒ Absence of co-ordinated approach to identifying, financing and implementing transport Transportation projects. ƒ No safeguarding of ROWs for transportation corridors. ƒ Widespread non-adherence to environmental legislation by RAJUK and developers. Sectoral – ƒ Lack of enforcement of environmental legislation. Environmental ƒ No environmental representation on key committees. Planning and management ƒ Absence of environmental planning expertise within RAJUK. ƒ Disconnect between Land Use and Environmental Clearance Certification processes. ƒ Little co-ordination between key agencies involved with strategic metropolitan planning Metropolitan and management. Governance ƒ Absence of institution for overall metropolitan governance.

232. The importance of these issues was confirmed by RAJUK early in the study. They were also raised extensively during the study’s consultations, both before and after the submission of the Interim Report. Many are the subject of frequent media reports. Most are not however new and have been

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mentioned in most urban institutional and infrastructure studies over the last 20 years. This does not however reduce their importance and the need to urgently address them if Dhaka’s development is to become more sustainable in the future.

11.2. Underlying Principles

233. Proposals to address the issues listed in Table 11.1 have been prepared by the SRPG study team. The proposals have been formulated based around the following general principles:

• They should build upon recent efforts by RAJUK to improve its performance and operations.

• They need to reflect the views of the numerous stakeholders consulted during the course of the study including the views expressed at the national stakeholder workshop in September 2012.

• They need to involve the key agencies and organizations responsible for, or involved in, the future development of the Dhaka Metropolitan Region.

• They should bring to bear appropriate international experience.

• They need to have both short- and longer-term perspectives: ‐ Short-term so that action can be taken quickly. - Longer-term so that they can be consistent with the vision of Bangladesh 2021- a country which is economically productive, socially inclusive and environmentally conscious77.

11.3. Presentation of Proposals

234. The proposals have been grouped as follows: Chapter 12. Strengthening the urban planning and increasing the effectiveness and accountability of RAJUK Chapter 13. A summary of the proposed Town Improvement (Amendment) Act78 Chapter 14. Sectoral issues - regional economic development, transportation planning, and environmental planning and management. Chapter 15. The future institutional structure for planning and governance in the DMR Chapter 16. Organisational development and capacity building79 Chapter 17. Implementation and Priorities Chapter 18. Concluding Comments.

235. All proposals are presented in tabular format following a short recapitulation of the key issues. It should be noted that the issues related to the future institutional arrangements for urban governance in the DMR are complex and often elicited conflicting, sometimes very conflicting, views from stakeholders. In these cases, alternatives are presented whose resolution will require high level discussions within GoB. This will inevitably be a lengthy process which cannot be accomplished within

77 Other relevant forward looking policy documents are draft national housing and urban policies and the policy documents are the 15-point declaration inaugural Bangladesh Urban Forum which was attended by the Minister HPW, Minister LGRD and Minister of Finance; over 2,500 people attended including around 200 municipality mayors (Daily Star, December 8, 2011). 78 The draft Act is presented in full, together with a longer commentary, in Volume 2 of this report. 79 Summary of proposals presented in full in Volume 3.

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the time frame of this study. This is not however seen as problematic as major institutional re-structuring is seen as a longer term objective.

236. It is team’s firm belief that major institutional re-structuring at this stage would be counterproductive. Firstly, it would compromise RAJUK’s recent efforts to improve its performance. Secondly, it is apparent that many of the agency’s institutional problems are not unique to RAJUK but affect other urban sector agencies – simply changing the institutional structure for urban governance will not address these problems. Thirdly, the magnitude of Dhaka’s current urban challenges is such that immediate action is needed. Proposals for radical change will not easily be agreed and implemented. Such proposals would therefore risk creating a policy vacuum leading to inaction on other SRPG proposals – this is exactly what Dhaka does not need. Hence in relation to our key proposals, the preferred approach is for a transitional approach which, over the course of the next 10 years, will lead to the major institutional changes needed for the achievement of Bangladesh 2021’s vision for the urban sector.

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12. PROPOSALS: STRENGTHENING THE URBAN PLANNING SYSTEM AND INCREASING RAJUK’S EFFECTIVENESS AND ACCOUNTABILITY

237. Proposals in this Chapter have three key objectives:

st • To create an urban planning system fit for a 21 Century Mega-City (section 12.1). • To strengthen RAJUK so that it can better fulfill its mandate for the entire DMDP area (section 12.2). • To increase the accountability and transparency of RAJUK’s operations so that it can regain the trust and confidence of Dhaka’s residents, private sector enterprises and civil society NGOs (Section 12.3).

12.1. Creating a Planning System Fit for a 21st Century Mega-City

238. Dhaka’s current planning system has changed little in the last 50 years. Unlike many other countries in the region, the system has not evolved to address emerging urban management challenges or to incorporate new thinking on and approaches to metropolitan planning. Unless these challenges are accepted, understood and addressed, setting metropolitan Dhaka on a path towards a trajectory of more sustainable development is likely to be difficult if not impossible. In short, strengthening the planning system is crucial to a more sustainable development path.

239. Proposals to radically transform Dhaka’s urban planning system have been grouped as follows: (i) Strengthening Plan Implementation and Development Control; (ii) Addressing the Needs of Poor and Low Income households; and (iii) Democratizing the Planning Process. It should be noted that many of the proposals build on those contained in the proposed Urban and Regional Planning Act (URPA). Many will also require new or revised legislation and a summary of the proposed legislation is contained in the next Chapter. The proposals are presented in Tables 12.1 to 12.3.

12.1.1. Proposals: Enhancing Plan Implementation and Development Control 240. In common with other Asian mega-cities, the growth and development of Dhaka is dynamic and unpredictable. Professionals cannot accurately predict how spatial and economic trends will evolve in the future. Plans and the planning process need to acknowledge this by through flexible and responsive operational systems. Current thinking is also that planning systems should be ‘pragmatic’ rather than ‘utopian’, i.e. they should seek to guide and manage rather than implement and direct. Plans also need to be formulated in a context of funding realism and then backed up by this finance.

241. Plan implementation is not just about stopping unwanted development; t is also about encouraging desirable development in favoured locations. This so-called pro-active planning approach will become increasingly important as the capacity of the existing main urban area reaches its effective limits. If steps are not taken to pro-actively manage new development areas, there will be further rapid growth of unplanned satellite areas, e.g. Keraniganj and Savar leading to the poor urban environments and acute infrastructure and servicing deficits found in Dhaka today. A more pro-active approach to achieving the development of new growth areas needs to be developed80. This will require the adoption

80 RAJUK already does this in its development areas but not elsewhere in the DMDP area.

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and implementation of a raft of new urban management mechanisms, e.g. land re-adjustment, to enable these objectives to be met.

242. Plans will also be of little relevance if development control processes are excessively protracted and enforcement is weak The current system of development control system whereby applications can take two years to process is clearly ineffective and unnecessarily adds to development costs; it is also unaffordable to most informal developers thereby further reducing compliance. In short, the development control system needs to be commensurate with resources able for its implementation.

Table 12.1. Proposals: Enhancing Plan Implementation and Development Control

Topic Proposal Rationale ƒ Plan preparation should concentrate on key ƒ Should reduce plan preparation time, especially for issues identified at the outset which should be structure plans and make plans more relevant. studied at a level of detail appropriate for the type of plan being produced. ƒ Provide a guide to private sector developers as to ƒ Prepare phasing plans showing proposed where infrastructure investment will be prioritised. priority development areas.

ƒ Ensure that land use proposals are designed Plan-making to take account of major ongoing and ƒ Land use plans that ignore ongoing infrastructure committed infrastructure, e.g. transit-oriented projects are likely to fail. development. ƒ Introduction of special development areas ƒ Implicit in DUAP zonal guidelines and in final draft (e.g. major growth areas, areas subject to high URPA. development/ re-development pressures ƒ Can be used to restrict development in environmentally restricted, cultural heritage areas, new sensitive areas. transportation hubs, slum upgrading areas). ƒ Will provide a framework for pro-active planning. ƒ Develop and implement innovative ƒ Essential if development in new growth areas is to be approaches to land development: land managed. sharing, land readjustment, land pooling, and ƒ Would increase contributions (in cash or kind) to private sector involvement. Managed Urbanisation Urbanisation Managed facilitate infrastructure provision. Pro-Active Planning and and Planning Pro-Active

ƒ Formulate appropriate development control ƒ Development/ building control procedures need to (i) be regimes for special development areas. commensurate with available resources and (ii) reflect specific issues in different types of urban area. ƒ Undertake a rigorous review of the need for ƒ At present, most development occurs without planning planning approvals for small-scale permission. developments so as to simplify planning ƒ This measure will encourage small developers to regulations for small developments. comply with basic planning requirements and will thus increase overall compliance. ƒ Strict time limits should be imposed on the ƒ Current processing times are excessive and increase length of time any application should take to be development costs. determined. Development Control Control Development ƒ Building control regulations must be ƒ At present, applications may be approved without implemented as they are vital to public health adequate consideration due to shortage of qualified and safety staff ƒ Introduce legal provision for sanctions (e.g. ƒ Provides deterrent against contraventions which are demolition/ removal of whole or part structures) widespread in terms of plan deviations and violations of and fines to be imposed. planning consents. ƒ Establish new parking provision standards for ƒ Inadequate off street car parking provision leads to all developments which are commensurate illegal parking on pavements and roads. with established policy and demand. ƒ Will provide funds for re-investment in urban services. Compliance ƒ Involve private sector and communities in ƒ Reduce workload on planners. Enforcement and inspections of planning, pollution and land ƒ Will also contribute to democratization of planning. grabbing issues.

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12.1.2. Proposals: Addressing the Needs of Poor and Low Income Households 243. Poor and low income households account for a substantial proportion of the urban population. Their living conditions are mostly extremely basic while lack of secure tenure restricts house improvements and self-financed upgrading. Government policy is firmly in favour of assisting these households and is part of RAJUK and NHA’s mandates; addressing this issue is also one of the key objectives of Bangladesh Vision 21. Yet, currently, very little is being done for them. While it would be ingenuous to believe that changes to the planning system could solve these problems on their own, there are potential interventions that could initiate this process.

Table 12.2. Proposals: Addressing the Housing Needs of Poor and Low Income Households

Proposal Rationale ƒ Implementing upgrading projects for slums on ƒ Upgrading and regularisation projects being flood free or near flood free land as special implemented in many cities. development areas. ƒ Costs of relocation likely to be far greater. ƒ Formulate appropriate planning and building controls for these areas. ƒ Developing sites and service areas on ƒ Providing housing for low income households has government land with appropriate standards. previously been costly and unsuccessful. ƒ Imposition of quotas on developers to: ƒ Policy adopted in other developing countries. EITHER allocate some land or plots to low Involvement of private sector would be beneficial to all. income households OR provide cash ƒ contributions OR land elsewhere. ƒ Review building control regulations that restrict ƒ Will address needs of lower, but not lowest, income developers’ ability to provide for lower income households. households.

12.1.3. Democratizing the Planning Process 244. The worldwide trend is for the planning process to incorporate increased public participation with extensive consultation procedures, especially where residents and communities are directly affected by major proposals. Where these are absent, the potential for increased social unrest is much greater81. Currently in Bangladesh, while there are some opportunities for consultation in the plan making process, this is limited; there is also little public information or consultation on major projects which involve land acquisition and relocation. This is a major source of criticisms, especially from civil society, academia and the media, who consider that this encourages corruption and plan contraventions. GOB policy is heavily geared to promoting public involvement in local decision-making and the forthcoming URPA includes provisions for increased participation and consultation. Increasing public involvement in the planning process and promoting greater transparency are thus seen as both essential and inevitable.

245. The proposals presented in Table 12.4 relate primarily to increasing public awareness and participation through consultations, especially in affected communities. Other proposals which will also contribute to democratising the planning process are contained in Table 12.7 while the division of responsibilities for planning services between RAJUK and the DMDP LGUs is examined in Chapter 15.

81 In China, a few years ago, there were 85,000 documented protests against land development decisions!

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Table 12.3. Proposals: Democratizing the Planning Process

Topic Proposal Rationale

ƒ Mandatory consultations during plan ƒ An essential component of any modern planning preparation. system. ƒ Provision should be made for wide publicity to ƒ Vital to introduce more democratic participation in land be given to : development decisions. - proposals to prepare a plan so as to stimulate ƒ Will generally increase openness and provide citizen contribution to the plan opportunities for residents, communities and interest - any draft plan and to the right of citizens to groups to comment and have meaningful inputs into the contribute their views to the draft plan. plan-making process. ƒ Formal public hearings should take place in ƒ Will reduce plan deviations by enabling stakeholders to the areas covered by any draft plan. have a say in land development proposals. Plan Preparation ƒ RAJUK should have a duty to respond in writing to any representations made. ƒ All RAJUK zonal offices and local authorities ƒ Plans should be a public source and should not be kept should have copies of plans applicable to their ‘behind closed doors’. areas and should put them on public display. ƒ Notification of planning applications in affected ƒ Local communities should be aware of development communities. Mandatory consultations with proposals. At present, little information is provided. communities affected by major proposals. ƒ Providing more information promotes transparency and ƒ Residents affected by large scale accountability, and reduces potential social discontent. redevelopment, relocation or upgrading ƒ Such schemes are rarely successful if there is not programmes should be involved from the intensive community involvement. outset in the preparation and implementation of such schemes. ƒ Enable all concerned parties (e.g. developers, land owners, residents, civil society NGOs) to make representations on planning applications.

Development Control Control Development ƒ Introduction of provision for appeals and ƒ Need to provide applicants with redress against adverse arbitration procedures and hence reduce need decisions. for recourse to legal system. ƒ Can be used to address issue of backlog of legal ƒ Publication of all appeal and arbitration challenges to land development decisions. decisions.

12.2. Strengthening RAJUK so that it can better fulfil its Mandate 246. A stronger planning system will only be effective if RAJUK (and other planning agencies82) have the resources, the structure and the authority necessary to implement its provisions. Despite recent efforts to improve its performance (e.g. the legal adoption of the DAPs and more effective enforcement activity) as well as current proposals for a major increase in staffing and the establishment of 8 zonal offices across the DMDP area, it is evident that further strengthening is essential.

247. The study’s consultations gave rise to three specific areas where action needs to be taken: (i) a stronger management structure with increased authority for the Chairman and greater delegation to senior management; (ii) increased autonomy in decision-making and finance; and (iii) a concentrated programme of organizational development, capacity building and training.

248. Proposals to address these issues are contained in Table 12.4. Those that will require legislative changes have been incorporated into the proposed TI(A)A. It is also recognized that others

82 Whether Development Authorities, City Corporations or municipalities.

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will require ministerial assent. However the bottom line is that unless RAJUK is given the authority and independence that it needs to fulfill its mandate, it is difficult to see how Dhaka’s multiple urban challenges can be effectively tackled. Table 12.4. Proposals: Strengthening RAJUK

Proposal Rationale / Comments ƒ Upgraded status of office of Chairman from additional ƒ RAJUK is an organisation with an income approaching Tk2 secretary to full secretary. billion ($25 million) and is responsible for the development of ƒ Upgraded status of RAJUK board members from joint a mega-city facing acute urban problems. As head of to additional secretaries. RAJUK, the chairman needs to have the authority consistent with these responsibilities. Yet at present, he is

disadvantaged by his status in the GOB bureaucracy which reduces his scope for independent decision-making83. The ƒ Staff in the legal department involved in enforcement same goes for the RAJUK Board members. and development related litigation should be re- ƒ This proposal would strengthen the upgraded Development deployed to the proposed department for Control department by providing it with the legal expertise Development Control. necessary for enforcement operations. ƒ Stronger and more effective management structure ƒ At present, most decision-making authority rests with the with greater delegation to senior management, i.e. Chairman. This is inefficient, detracts from his concentration from the Chairman and board members to divisional on the most important issues and reduces the role and directors. relevance of other board members and department heads. ƒ Technical Board members, e.g. planning, ƒ Lack of technical expertise of board members is a frequent development, development control, should have source of criticism. relevant technical expertise and, where possible, be promoted from within RAJUK. ƒ Preparation of a mission statement covering its entire ƒ Will provide a clear statement of RAJUK’s intent to fulfil its mandate. mandate. ƒ Preparation of a full corporate plan and annual ƒ Will assist RAJUK to be more focused in its operations and business plans to reflect the imminent restructuring of management, ensure better coordination of these and more RAJUK. effective utilization of resources. ƒ Will provide basis for improved short term financial planning. ƒ Increased autonomy in decision-making with respect ƒ Although it is the legal planning authority, RAJUK is often to (i) reduced ‘improper’ involvement in land subject to pressure from outside to approve contentious land development decisions; (ii) recruitment; and (iii) development projects. This undermines the effectiveness of general operational decisions. the urban planning system, makes RAJUK open to accusations of corruption and is a major source of criticisms. ƒ Despite being largely self-financing, it is unable to appoint new staff as it sees fit and remains subject to protracted Bangladesh Civil Service procedures. ƒ Increase financial autonomy to both raise and spend ƒ RAJUK is currently largely self-financing and generates an its income through some or all of the following: (i) annual surplus of around Tk. 1.1 billion (c. $14 million) yet residential plot sales by auction or at higher than the it has limited ability to spend this surplus money which current cost-plus formula; (ii) fines for planning could be used for further investment in infrastructure – contraventions; (iii) developer contributions for off-site which Dhaka desperately needs. infrastructure (impact fees). ƒ Expand research department to include monitoring of ƒ Good up to date information is crucial to effective plan planning applications, land values, land development making and monitoring so that new trends can be identified trends and financial planning. and policies and regulations modified. ƒ Conduct and publicise inventory of land assets ƒ Will facilitate plan preparation and project planning. (starting with vacant areas); and complete ƒ Will increase transparency of operations. computerization land records ƒ Organisational development, capacity building and ƒ Detailed proposals are contained in Volume 3 while and a training summary is presented in Chapter 16. 249. Consideration was also given to increasing the number of RAJUK Board members. However RAJUK’s long proposed organisational re-structuring is now under way. It is therefore considered

83 In central government there are 28 cabinet ministers and 18 ministers of state. MPHW is a state ministry. The Minister is served by a Secretary, the Additional Secretary and three joint secretaries. There are senior secretaries in the cabinet ministries.

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premature to propose further changes before this re-organisation has been implemented and additional posts and staff fully assimilated into the agency’s operations. In the future, it may indeed be desirable to increase the number of RAJUK members, e.g. through the creation of a legal member who would become responsible for all litigation issues, including addressing the backlog of pending cases – but this decision should not be made now.

12.3. Increasing the Accountability and Transparency of RAJUK’s operations 12.3.1. The Issues

250. A large proportion of the criticism leveled against RAJUK, by other government agencies, the media, private sector developers, NGOs and academics, relate to its lack of transparency and accountability. Specific criticisms relate to its absence of any outside representation on the RAJUK board, opaque decision-making, and a dearth of publicly available information. These are seen as a major reason for its poor performance, make it open to charges of corruption, and hamper the fulfillment of its mandate.

251. At the same time, RAJUK is seen as being ineffective as a planning agency with limited ambition. Critics point out its failure to carry out many aspects of its mandate, especially in relation to planning and providing for low-income households, low levels of planning enforcement, deviation from plan policies in its own developments. In other words, it is doing a poor job.

252. Unless RAJUK becomes more transparent and accountable it will be unable to regain the trust of its many critics; and if it does not do this, its task will be immeasurably harder. Moreover, proposals to give RAJUK more authority and autonomy over its decision-making and finances are likely to be unacceptable unless the agency is prepared to become more accountable and subject to a greater degree of outside oversight than is currently the case.

12.3.2. Reforming the RAJUK Board 253. This issue proved to be one of the most controversial of the entire study. At present, the RAJUK Board, unlike those of the city corporations and municipalities, consists entirely of civil servants appointed by the MPHW with no outside members from sectoral agencies, local authorities, the private sector or civil society. The current board composition, which is the subject of some of the most frequent criticisms from RAJUK’s critics, is considered to be untenable if (i) RAJUK is to rebuild public trust and confidence; and (ii) if it is to be granted the increased autonomy over its decision-making and finances recommended in the section and already enshrined in its mandate.

254. Table 12.5 presents the principal alternatives developed by the SRPG Study Team in consultation with RAJUK staff, local experts and professionals in the field, together with their main salient advantages and disadvantages.

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Table 12.5. Alternatives: Reforming the RAJUK Board

Alternative Advantages Disadvantages 1 ƒ Creation of an Advisory Committee ƒ Probably the easiest to ƒ As an advisory committee, the to oversee and provide guidance to establish in the short term. RAJUK board would not be the RAJUK board as currently under any obligation to accept ƒ Would require no re- constituted. structuring of the current the advice/ guidance provided. ƒ Membership would include board. ƒ Likely to be considered too weak representatives from key sectoral Could be established by some critics. agencies, constituent local ƒ through a redefinition of the ƒ Might still require some authorities and civil society, e.g. existing Town Development legislation. NGOs, private sector. Committee. ƒ To be chaired by RAJUK chairman. 2 ƒ Supplementing existing board with ƒ Current RAJUK board would ƒ Would definitely need legislation. the addition of 5 members from e.g. be preserved. Restricted membership could be local authorities, NGO, professional ƒ ƒ Would provide relatively seen as limiting oversight and institution, sectoral agency, private compact structure which excluding other key agencies. sector. would facilitate decision- ƒ Existing civil service based ƒ Non-RAJUK board positions would making and discussion. RAJUK board would remain rotate within a pool of stakeholder ƒ Outside oversight will be restricting responsibility and organisations every 2 years. introduced into RAJUK Board. authority of technical department ƒ Current RAJUK board would operate heads. as executive committee overseeing activities of heads of department (as at present). 3 ƒ Adopting the model of the other DAs, ƒ Precedent exists in other ƒ Would definitely need legislation. i.e. a broad based board of around DAs. Could be seen as retrograde 10 members working directly with ƒ ƒ Wider representation of step as would restore pre-1987 senior DA management/ stakeholders than option 2. board structure. departmental heads. ƒ Board recommendations ƒ Existing RAJUK board members would be mandatory. could become superfluous which is likely to be controversial. 4 ƒ Creation of a large DTCA- type ƒ Board would have very wide ƒ Would definitely need legislation. board with 30+ members. representation from all ƒ Due to its size (c. 30 members) sectors. likely to become unwieldy due to ƒ Board recommendations wide range of views. would be mandatory. ƒ Status of current board members would need to be reviewed.

255. Opting immediately for a new structure for the RAJUK board will be controversial and will be hard to implement in the short-term. In consequence, Alternative 1, an Advisory Committee, is seen as the best short term solution as it could relatively easily be constituted from the existing Town Development Committee which currently has an oversight remit but has little voice and no effective powers. There would need to be some changes in its membership to provide a wider range of views, e.g. through the addition of a representative from the Department of Environment, an NGO and a private sector representative. To facilitate discussion and decision-making, this committee should have a membership not exceeding 15 persons, excluding RAJUK personnel. The Advisory Committee would be headed by the RAJUK chairman with one of the committee members with a wide knowledge of Dhaka’s urban development issues being the Vice-Chairman. Box 12.1 provides an indicative outline of how the Advisory Committee would operate.

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Box 12.1. Operation of Proposed RAJUK Advisory Committee (indicative)

1. The mandate and TOR for the Advisory Committee would need to be prepared. Meetings would be attended by RAJUK board members and departmental heads as required. Meetings would be quarterly. 2. The Chairman will present a report (previously circulated to committee members) summarising principal activities in the previous quarter which covers, inter alia: ‐ Progress on major projects, including bottlenecks requiring resolution. ‐ Summary information on development control and enforcement activities. ‐ Major new activities planned for next quarter. ‐ Matters where the Chairman wishes to seek the advice or assistance of Committee members. ‐ Other matters, including (anonymised) instances of ‘outside pressure’ being applied on RAJUK. 3. Committee members shall have the right to raise any matters of relevance to RAJUK’s operations, including those raised in the media or subject to litigation. 4. Minutes of the meeting, excluding commercially sensitive information, but including responses to matters raised by Committee members, decisions taken and actions agreed, but excluding commercially sensitive information, will be made public within 2 weeks of each meeting.

256. An Advisory Committee can however only be considered to be a temporary solution as by definition it would have no power for its views to be considered, thus likely reducing its effectiveness. Of the longer term options, 4 – an extended DTCA type board is seen as being unwieldy and too large for effective, and rapid, decision-making. Alternative 3 has its attractions, particularly as it is the structure used for other DAs but it could be seen as a retrograde step. The existing RAJUK members would also become superfluous as department heads would report directly to the board. This is likely to be highly controversial thereby delaying its implementation.

257. On balance therefore, alternative 2 is seen as the best longer term solution – a small compact board working consisting of members from outside working alongside the existing board84. A possible composition of the additional (non-RAJUK) board members would be: (i) DCCN or DCCS; (ii) another DMDP CC or municipality; (iii) private sector (DCCI/ REHAB); (iv) an NGO or academic with expertise in urban issues, e.g. low income housing, environment; and (v) transport sector agency, e.g. DTCA, RHD, LGED. Within each of these categories, membership would rotate between ‘qualifying’ institutions on a two-yearly basis. The number of external members should be limited to 5, i.e. equal to the number of existing RAJUK board members, excluding the Chairman.

258. Any proposals to reform the RAJUK board will be controversial and further deliberation by Government and discussion among key stakeholders on this issue will be essential. The bottom line however is that outside oversight needs to be introduced into RAJUK’s current board structure and that this can best be done in the short-term through the establishment of an Advisory Committee.

12.3.3. Increasing the Openness, Transparency and Range of RAJUK’s Operations 259. Reforming the RAJUK board will be a vital step to restoring public confidence in RAJUK. Much however could be achieved if RAJUK takes pro-active steps to disseminate information on its operations

84 The Kolkata Metropolitan Development Authority has a similar sized board consisting of 5 appointed bureaucrats and 5 elected representatives; see http://www.tenderwizard.com/ROOTAPP/build.jsp?htmName=aboutkmda&company=KMDA

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and thus make stakeholders aware of its activities and, also, the problems it faces. A range of proposals designed achieve this objective are contained in Table 12.6. Taken together these would provide a major departure from the current opacity of its decision-making by radically increasing transparency. While several of these proposals are included in the provisions of the TI(A)Act there are no obvious reasons why several could not be implemented by RAJUK in the short-term. These proposals should also be seen as supporting and reinforcing those relating to increasing public participation (Table 12.3).

Table 12.6. Proposals: Increasing Public Awareness and Transparency

Proposal Rationale / Comments

ƒ RAJUK should be under a statutory obligation to ƒ All aimed at improving public oversight and RAJUK’s produce and publish a full and informative annual accountability and transparency in its operations. report and accounts*. Several of the recommendations are started practice ƒ The Chairman of RAJUK should hold regular press ƒ conferences to explain what RAJUK is doing and elsewhere, including in some GOB agencies. answer questions on same. ƒ Preparation and publication of annual report is ƒ RAJUK should hold at least one meeting every year minimum requirement to increase accountability. with coalitions of organisations concerned with urban development in Dhaka. ƒ RAJUK should be more pro-active in publicizing what it is doing, and more willing to answer questions on ƒ RAJUK should regularly publish non-commercially sensitive minutes of board meetings, decisions on the same. planning decisions, reports. ƒ Where possible, meetings should be open to the ƒ Publication of details of planning applications received, public. approved and rejected.

ƒ An office – the equivalent of an Ombudsman – should ƒ Preferable to deal with grievances other than through be established to deal with grievances complaints the legal system, via an outside agency or by direct about RAJUK’s activities. An annual report should be action. prepared (complaints received and how dealt with). ƒ Establish user friendly front office to direct people to ƒ Customers need to be assisted in finding their way to appropriate departments. the right department.

* Since the start SRPG, an annual report, the first for 15 years, has been published.

260. Other frequent criticisms of RAJUK relate to its inconsistent approach to existing plan policies, its failure to adopt a holistic approach to its own projects, the lack of transparency in its land transactions, and, despite recent improvements, the inadequacy of its enforcement operations. Public confidence, and that of other stakeholders, could be improved if it addressed these issues. Table 12.7 contains a series of proposals to do just this. Again, several could be implemented without recourse to new legislation.

261. The SRPG team strongly believe that if RAJUK adopts some of the proposals contained in Tables 12.6 and 12.7 as well as those related to increased consultations with affected people (Table 12.3), and shows more urgency in addressing the needs of low-income groups (Table 12.2), not only will it be able to restore public confidence but the potential for Dhaka’s future development to become more sustainable will be considerably enhanced.

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Table 12.7. Proposals: Improving Confidence in RAJUK’s Planning and Development Operations

Proposal Rationale / Comments

ƒ Undertake more activities related to the DMDP ƒ Would counter the criticism that RAJUK is only interested area as a whole rather than concentrating on its in land development. land development operations.

ƒ Similarly it should pay more regard to the needs of ƒ Another frequent criticism – that RAJUK only assists lower-income groups. higher-income groups.

ƒ Ensure that land development operations are more ƒ Dhaka clearly has a deficit in open space, and social/ holistic and include adequate open space, community facilities. Yet many of RAJUK’s developments employment areas, and do not contravene plan pay inadequate regard to these facilities. policies, especially related to the environment

ƒ RAJUK land transactions by RAJUK connection ƒ There is currently little information on RAJUK’s land with its development operations need to be put on holdings or land transactions. This fuels criticisms and a transparent and clear legal basis. lays it open to charges of corruption.

ƒ A separate development control regime should be ƒ RAJUK is criticised (especially by the private sector) for established to deal with RAJUK’s own land enforcing regulations which it does not always abide by development projects. with in its own developments.

ƒ RAJUK’s credibility will be improved if it doesn’t violate its own rules without good reason (and these reasons must be published).

ƒ RAJUK should adhere to all applicable ƒ Another frequent criticism fueled by its filling of wet lands environmental legislation for some major projects.

ƒ Establish a cell dedicated to enforcement against ƒ Arguably these illegal operations constitute one of the illegal land filling / land grabbing operations AND major threats to Dhaka’s survival by reducing flood publicise. retention zones thereby increasing potential flood risks.

ƒ Reduce delays in returning deposits to ƒ Another frequent source of complaint that could be fairly unsuccessful applicants. easily resolved. RAJUK should not profit from retaining deposits longer than is necessary.

12.3.4. Improving Integrity and Reducing Corruption 262. An issue not so far addressed is that of integrity and corruption. RAJUK has been subject to numerous accusations on this front and on several occasions RAJUK officers have been called to account by the High Court. But it would be disingenuous to believe that this is an issue for RAJUK alone85; as has been well publicised, Bangladesh ranks very low on Transparency International’s Corruption Perception Index. The largely anecdotal evidence is that senior RAJUK staff are all too frequently subject to pressure from ‘influential’ persons to allocate plots in contravention of the eligibility rules or to approve planning applications which deviate from approved plans. Susceptibility of decision- making staff to outside influence was also revealed in the Workplace Perception component of the SRPG Training Needs Analysis.

263. RAJUK could and should take action to curb low level corruption relating to development approvals and compliance issues – a task that would be facilitated if more transparent development

85 As the RAJUK Chairman noted in his comments at the DCCI seminar held for the benefit of this project (see Annex 3 of Main Report).

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control and enforcement processes were implemented. This could be achieved by establishing institutional models which: (i) minimise gate-keeping opportunities; (ii) support increased professionalism and job satisfaction within the ranks of operational personnel; and (iii) exclude access to ‘facilitators’ - and support this with procedures which are sufficiently ’user-friendly’ as not to require them. Such measures are implicit in the options set out previously to streamline the development control system.

264. RAJUK can also adopt a stronger response to pressure from outside, e.g. by maintaining an ‘access on demand’ register86 of all instances of attempts to influence its decision-making. Such a register which could then be made public (with the names of those involved omitted) as a demonstration of the pressures that RAJUK is subject to. But it is hard to see how such a stance can be effective unless there are stronger signals from higher levels of government that this behaviour will no longer be tolerated. And, unless such anti-corruption measures are taken, it is hard to see how such pressures will not simply be transferred to any new agencies established to undertake land development and manage the planning system.

86 E.g. Date of request, type/ subject / reason of request, department concerned. Details of person receiving request and persons making the request would remain beyond the public domain but be accessible when required by the Board in order reduce possible adverse consequences.

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13. THE PROPOSED TOWN IMPROVEMENT (AMENDMENT) ACT (TI(A)A)

13.1. General

265. Many of the proposals presented in the preceding Tables will require legislative changes. The proposed Urban and Regional Planning Act (URPA) addresses some of these issues, notably in providing for increased flexibility in the planning system and introducing greater public participation. However we would argue that the URPA does not go far enough and it is framed as an enabling Act to be supported by detailed rules and regulations that have yet to be written. At the same time, the focus of SRPG is very much on RAJUK – which is largely excluded from the provision of URPA. Furthermore, RAJUK management consider that the existing TIA needs to be revised in order to address already acknowledged institutional and operational weaknesses.

266. Given the above, a Town Improvement (Amendment) Act has been prepared to provide the principal legal umbrella for the SRPG proposals. The TI(A)A 87 is presented in full in Volume 2 of this report together with a commentary describing the proposed changes and their rationale. This section contains a shorter summary of the contents of the proposed Act for those readers wishing to gain an understanding of the proposal legislative changes but not wishing to review the Act in its entirety.

267. The proposed TI(A)A closely follows the framework presented in the Interim Report amended based on consultations held since the submission of this report in March and in particular comments received at the September 2012 stakeholder workshop.

268. The TI(A)A is explicitly focussed on RAJUK. Many of its provisions could however be relatively easily adapted to provide rules and regulations for the URPA or be made applicable to the Development Authorities in Chittagong, Khulna and Rajshahi.

13.2. Differences between the Existing TIA and the TI(A)A

Table 13.1 shows how the proposed TI(A)A relates to the existing TIA: which sections of the TIA will remain in force, which have been amended, where new provisions have been added. This Table also constitutes a table of contents for the TI(A)A.

87 The TI(A)A constitutes Component A of the SRPG TOR. However as legislation needs to follow policy, not precede it, it is not presented as a separate component in this Volume.

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Table 13.1. Comparison between Town Improvement Act and a Bill for a Town Improvement (Amendment) Act

Sections of existing Town Sections of Town Comment on how TI(A)A differs from, Improvement Act Improvement (Amendment) adds to or deletes sections of TIA Bill 1 1 similar 2 2 additional definitions 3 Establishment of RAJUK 3 RAJUK to carry out Act no change 4 Composition of RAJUK 4 - 27 Board and functions of new; old sections 4 and 5 repealed, 21 RAJUK remains 5, 21 Meetings of RAJUK ditto new 26 – 31 Contracts - no change 28 – 34: regulation and new supervision of RAJUK 32 - 37 employees of RAJUK 35 – 46: employees of RAJUK New; old ss.32 - 37 left in place Chapter III: Improvement Chapter VI: Improvement and New; old chapter III proposed for deletion Schemes; 38 – 72 Upgrading of Informal but some sections will be saved Settlements; ss. 94 – 106 73 – 75: preparation of Master Chapter III: Planning New: old sections deleted Plan Processes; ss 47 – 64 Chapter IV: ss. 78 – 101; Chapter IV: Management of Existing sections remain but ss. 94 – 98 Acquisition and Disposal of Land; Development; s. 73: could be deleted especially if impact fees betterment fee development obligation introduced Chapters V and VII: s.102, 151: s. 136: Rules Additional powers of Government to Government power to make Rules make Rules Chapter VI: Finance; ss. 103 – s. 29: internal audit No change 150 Chapter VII: ss. 152 – 158: - No change RAJUK empowered to make rules Chapter VIII: Supplementary Chapter XI: Supplementary; No change but an additional power in cl. Provisions: ss. 159 – 193 ss. 135 – 138 136 Chapter V: Land New Readjustment, ss. 76 – 93 Chapter VII: Specialist New Committees; ss. 107 - 114 Chapter VIII: Compliance; ss. New 115 - 123 s.76: No compensation payable Chapter IX: Compensation; New; s.76 deleted ss.124-127 Chapter X: Appeals: ss. 128 – New 134* * This section replaces Rules 35f and 36 of Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008.

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13.3. A Brief Summary of the Proposed TI(A)A

Chapter I: Preliminary 269. This chapter follows the structure and most of the content of chapter I of the TIA. The main difference is in the definitions which refer to the words used in the TI(A)A. With respect to the definitions of “area planning agency” and “development control agency”, these are taken from the draft Urban and Regional Planning Act 2012. Some other definitions are taken from the Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008.

Chapter II: The Kartripakkha 270. This Chapter contains very fundamental changes to the organisation and functions of Kartripakkha in order to increase its accountability and transparency. Reference has been made to the legislation on the organisation of the other three development authorities, Chittagong, Khulna and Rajshahi, all of which provide for greater oversight in their management and decision-making. The principal changes to the organisation and management of Kartripakkha provided for in this draft law are:

• A clear distinction between policy making and major decisions on development which is for the Board of Kartripahkkha and execution and implementation of policy and day-to-day development which is for the officers • An expanded Board of Kartripakkha is established which allows for a wider representation of interests on the Board and so opens up decision-making to a more participative and rounded approach. In accordance with Table 12.5, alternative 2, five non-RAJUK members will be appointed to the Board. • The appointment of an Advisory Committee to assist the Board in its work and to provide a degree of outside oversight of RAJUK’s activities. • The functions of the Chairman are spelt out and include the duty to keep the public informed of the operations of Kartripakkha. A Vice-chairman is established and Board members may be allocated specific tasks by the Chairman. All this will facilitate holding the members of the Board to account for their actions. • The functions of Kartripakkha are set out in detail; most of these are functions which the authority already performs but the important duties of openness and participation with respect to its activities are added. • Meeting of the Board are to be held in public with the proviso that personnel and disciplinary matters will be dealt with in closed session. • The basic rules on meetings of the Board are set out in the Act. • Codes of conduct, a register of interests, the declaration of interests and non-participation in meetings where matters before the Board conflict with interests of members. This is a clear public statement that the Board recognises its duties of fairness, openness and right conduct. • An annual report must be published • An Office of Internal Supervision is created providing for internal regulation and supervision of the Board and of Kartripakkha. This consists of an Internal Auditor checking on the management of the finances of Kartripakkha and an Independent Adjudicator which deals with complaints about failure of administrative justice and abuse of power by persons in Kartripakkha. The IA is an internal Ombudsman. If there were a national Ombudsman, such a position might not be necessary, but although an Ombudsman Act was

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enacted in 1980, it is not in operation. An Internal Auditor will keep a constant check on the management of the finances of Kartripakkha. There will still be a need for a regular external audit of the accounts. • Specific provisions are set out on the officers of Kartripakkha; the Chief Executive Office and the other Chief Officers have specific functions allocated to them by the Act. All officers and employees are under a series of general duties to perform their functions honestly and with due regard to the rights of the citizenry. Appointment of the Chief Officers will be in accordance with the general rules and procedures for appointing public officers.

Chapter III: Planning Processes 271. A major deficiency of the TIA is the paucity of the provisions on plan-making and the management of development (this latter as opposed to the management of construction). This and the next chapter set out to rectify this deficiency in the law. It concentrates on processes and procedures, establishing a legal framework for an open and participative approach to the making of plans. It provides for;

• The types of plans that may be made; these are taken from the draft Urban and Regional Planning Act 2012; • The broad content, purpose and objectives of plans; • The principles of public participation and the rights of the citizenry to participate in the making of plans; • The duties of area planning agencies (defined specifically to include Katripakkha) to develop processes of public participation and to encourage and facilitate public participation in the making of plans; • Procedures for a Review Panel to hold public hearings into draft plans and for the area planning agency and the Government to give proper consideration to the report of the Review Panel; • Procedures for decision-making on draft plans taking account of all likely possibilities with respect to acceptance, approval, rejection, or review of plans by different levels of government; • A provision for area planning agencies to prepare ‘supplementary planning statements’ in lieu of or as a way of updating and revising plans; • Provisions for the delegation of plan making powers by Kartripakkha; either at the request of a local authority (a “delegated area planning agency”); or at the direction of the Government • The planning functions of Kartripakkha where its planning powers have been delegated; it has the power to review and comment on plans prepared by delegated area planning agencies.

Chapter IV: The Management of Development 272. This chapter seeks to provide a clear framework for handling applications for development and confers important new powers on Kartripakkha and other development control agencies with respect to the management of development. The chapter provides for

• A very comprehensive definition of “development” to provide the foundation for the management of development; • Clear limitations on the meaning of development to enable much relatively

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minor development of land to proceed without the need to obtain development permission, thus simplifying processes and reducing bureaucracy; • Clear and comprehensive arrangements for processes of consultation by development control agencies with other public sector agencies that might be expected to desire an input into the consideration of an application for development permission; • Clear and comprehensive arrangements for publicity for development applications and for the proper consideration of any comments received from the public on any such applications; • Provisions that development control agencies are to meet in public when considering applications for development permission; • Comprehensive provisions on decision-making by development control agencies on applications for development permission. These include: o requirements to approve certain types and classes of applications, so limiting discretion and speeding up decision-making; o setting out the criteria that may be taken into account in determining an application, so reducing open-ended and potentially liable-to-abuse discretion; o setting out time limits within which decisions on applications must be reached and when development for which approval has been granted must commence; o allowing for some flexibility in permitting approval to be given to a ‘departure application’ which does not accord with a plan;

• setting out a comprehensive list of matters on which conditions may be attached to a development permission and the criteria that must be taken into account in deciding whether to attach conditions to a permission; • Providing for an important new power to development control agencies to require an applicant for development permission to enter into a ‘development obligation’ – a binding contract which attaches to the land the subject of the application requiring the applicant- developer and any successor in title to that person or organisation to provide certain additional developments or facilities or services to the applied-for development in recognition that that development will impose costs on society which it is reasonable to require the developer to shoulder at least in part. The scope of a development obligation is provided for in the definition section of the draft Bill. Development obligations are strongly preferred to measures to obtain betterment levies. Although the principle of betterment – that those persons whose land increases in value due to public works or from the effect of planned development should be required to pay some of that increased value to the public purse – is broadly accepted in many societies, it has proved very difficult to establish an effective system for collecting such levies.88 • Providing for the creation of special development area schemes which are areas where there may be relaxed and flexible arrangements of development management to facilitate development; • Provisions for special systems of approval for large and specialised project (LSP) taken from the Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008 and inserted into this chapter;

88 See para. 15 of Volume 2 TI(A)A commentary for a more detailed discussion of issues related to betterment.

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• Provisions to exclude members and officers of Kartripakkha from voting on an application from Kartripakkha for a large and specialised project (LSP); • Provisions for consultation on LSP; • Meetings of the approval committee for LSP must be held in public.

Chapter V: Land Readjustment 273. Provisions on land readjustment have been specifically requested by Kartripakkha. The World Bank provides a succinct summary of land pooling (the term is interchangeable with land readjustment) in its Project Appraisal Document for a loan for the Second Urban Development to the Kingdom of Bhutan in 2010 which was to make extensive use of the technique:

Land Pooling (LP) is a technique for managing the planned development of urban-fringe lands, whereby a public agency consolidates a selected group of land parcels, subdivides them into a layout of streets, open spaces and serviced building plots, and then distributes the remaining plots back to the landowners to develop or to sell for development. Each landowner must contribute a portion of their previous land holding to provide space for public infrastructure systems such as roads and parks but also social facilities like a school. The original landowners retain title to the majority of their land, and LP is considered to be less disruptive to the existing community than the large scale land expropriations and development. In the process, irregular shaped plots become regularized, making them more suitable for development. LP is essentially a long process, requiring strong commitment from a public agency in charge and extensive stakeholder consultations. (Underline added)

274. The principal provisions of chapter V are

• Readjustment may be carried out by the residents on an area themselves, forming themselves into an association for that purpose or by a development control agency which for this purpose will be known as a readjustment agency. The Government may direct a development control agency to carry out a readjustment project; • Readjustment must be preceded by a feasibility study which must involve the participation of the residents of the proposed readjustment area. The feasibility study must include preliminary costings of the project; • Where a readjustment agency is minded to proceed with a readjustment scheme, it must undertake an extensive programme of public consultation before it can proceed to declare a readjustment area and may only proceed if not less than 75% of the landowners of the area concerned sign up to the scheme; • The readjustment agency must negotiate with those landowners who did not agree to the scheme for at least six months to try and bring them on board but may after that period of six months has elapsed, use powers of compulsory acquisition of land to buy out those landowners; • Provision is made for transactions that may and may not be taken within a readjustment area once the area has been declared as such; • A Land Readjustment Consultative Committee consisting of 50% of landowners in the area must be established for the land readjustment area which will have important duties of consultation and recommendation- making with respect to the implementation of a land readjustment plan

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• A land readjustment plan must be prepared with extensive public involvement from the landowner and residents of the area. This plan must include a layout plan which sets out the new proposed layout of the readjusted plots; • The ‘indicative contribution ratio’ which is the proposed amount of land needed for infrastructure and the likely contribution which landowners will be required to make from their land for that purpose and its method of calculation is provided for; • The principles which must be used in the reconfiguration of plots are set out; • Provision is made for the resolution of grievances which may be generated by a scheme. • A power to make these provisions applicable to local authorities throughout the country.

Chapter VI: Improvement and Upgrading of Informal Settlements

275. This chapter replaces most of chapter III of the TIA which has long passed its use-by date. Current thinking on informal settlements concentrates on granting tenure and upgrading the living conditions of residents rather than demolition and resettlement – which are always more expensive and socially disruptive. A number of international and national NGOs are active in Bangladesh’ slums but there are few official GOB programmes. A notable exception is the Local Partnerships for Urban Poverty Alleviation Project (LPUPAP), executed by the Ministry of Local Government, Rural Development & Cooperatives and implemented by the Local Government Engineering Division (LGED) with funding from UN-Habitat. This programme has been drawn on in drafting this chapter of the TI(A)A.

276. In summary, chapter VI provides for:

• Its application only to Kartripakkha and within the designated area • A statement of the objectives of upgrading • Provisions for the declaration of an improvement area including a reworking of sections 43 and 44 of the TIA to create a duty on Kartripakkha to respond positively to a request from residents in a potential improvement area or an NGO concerned with urban poverty to consider declaring the area to be an improvement area; • The criteria to be considered in determining whether to declare an area to be an improvement area; basically that the people in the area are a well-settled community who are making efforts to better themselves and are willing to co-operate in a scheme of improvement; • A process of public involvement and participation modelled on the processes provided for in chapter V for land readjustment schemes to be undertaken both in considering whether to proceed to declare an improvement area and in the preparation of an improvement scheme for the area so declared; • The contents of an improvement scheme. These include arrangements for the involvement of local authorities, of the people in the area; assessment and payment of compensation to any persons or families who might have to move; land readjustment; and a budget for the scheme; • The establishment of an improvement area committee consisting of local authority councillors, residents from the area and representatives from relevant NGOs which will be involved in working with officers in the implementation of the improvement scheme; • The roles and duties of officers in implementing an improvement scheme; • Provision is made for the resolution of grievances which may be generated by a scheme

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Chapter VII: Specialist Committees 277. This chapter gives clear legal authorisation to the two committees established under chapter 3 Rules 30 – 40 of the Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008. The opportunity is taken to introduce some small amendments into the composition and functions of the committees. Most of the existing Rules have been retained in the draft Act so only the proposed changes and the reasoning behind them are noted below:

• Provisions to exclude members and officers of Kartripakkha from voting on an application from Kartripakkha for a large and specialised project (LSP) have been introduced into the law • Provisions for consultation on large and specialised projects have been written into the law. • Meetings of the approval committee for large and specialised must be held in public • Te composition of the Town Development Committee (TDC) has been increased by the addition of members from civil society organisations with expertise in the areas of urban planning, the environment and poverty • Meetings of the TDC must be held in public • The role of the TDC in dealing with appeals is deleted. Appeals are provided for in chapter IX • The TDC is given a specific function of reviewing and reporting at regular intervals on the performance of Kartripakkha. • The TDC shall act as the Advisory Committee referred to in Chapter 2 until such time as this Committee has been appointed (see section 11).

Chapter VIII: Compliance 278. This chapter sets out the basic framework for the process of compliance, a term which is preferred to ‘enforcement’ of ‘planning control’. Key provisions are:

• The provision of time limits for taking compliance action. It is unreasonable that such action can be taken at any time after an infringement has occurred; • The provision of a warning notice which must precede any compliance action. It is always preferable to seek compliance from the person breaching the law before taking compliance action; • The criteria that must be considered before a compliance notice is served are set out. Not every breach of the law should automatically trigger compliance action; some braches can be rectified without such action; some minor ones can be overlooked; • The powers that a development control agency may use to compel compliance with a compliance notice are set out. Not all powers are enforcement powers; even after a notice has been served, there should still be scope for consensual compliance; • A stop development notice is provided for in the law. This is needed where serious non- compliance with the law is occurring with possible grave economic, environmental or social damage. Such a notice requires immediate cessation of illegal development. The notice is not to be used for minor infringements of the law or against informal settlements; • Provision is made for a development control agency to have the power to require a person who appears to be in breach of the law with an illegal or non-conforming development to apply for a grant of development permission. Such a grant would have retrospective effect

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and may be accompanied by a levy or ‘fine’ in recognition of the prior illegality.

Chapter IX: Compensation 279. Most modern planning systems allow a very restricted range of claims for compensation to be made and this approach is provided for by this chapter. In sum, it provides for:

• A claim to be made where the refusal of a development permission results in a loss of value of the land concerned; • A comprehensive list of matters and reasons for a refusal of development permission when compensation may not be claimed; • Procedures and processes for making a claim and the determination of it.

Chapter X: Appeals 280. The provisions on appeals in Rule 36 of the Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008 do not comply with the fundamental principles of administrative law. They are replaced by this chapter which provides for

• An Appeals Authority (AA) consisting of two senior lawyers as chairman and vice-chairman and up to six persons with experience and knowledge of planning and urban affairs, together with a small staff to operate the Committee; • The decisions from which an appeal may be made to the AA; • The powers of the AA on hearing an appeal; basically all the powers of the body from whose decision an appeal is made; • The right of an aggrieved person to appeal to the AA; • The procedures to be adopted by the AA in any hearing. The Chair or Vice-Chair must preside; one or two other members will make up a panel. Rulings on law are given by the Chair or Vice-Chair. The principles of natural justice must be observed in any hearing. No undue formality in the hearings; • Appeals from the AA may be made to the District Court.

Chapter XI: Supplementary 281. Most of the supplementary provisions of the TIA are adequate and can be retained. One gap is filled: the power of agencies to call for information from any landowner or occupier with provision for this to be obtained either in writing or orally. The power of the Government to make rules is strengthened.

13.4. Requirements for Further Legislation 282. The TI(A)A will provide a major enhancement of Bangladesh’s planning legislation. There is however likely to be a need for further legislation in respect of the following:

• Additional legislation will be required if it is decided that proposals contained in the TI(A)A should be made applicable to other urban centres in Bangladesh or indeed the entire country. This could be done by either: (i) passing short amendments to the Acts setting up city corporations which make provisions in the TI(A)A; (ii) drafting rules and regulations for the URPA which make TI(A)A provisions applicable; (iii) if URPA has not been enacted, including sections (e.g. those related to land readjustment) of the TI(A)A into the URPA. • On the assumption that the TI(A)A or substantial parts of it are enacted in the medium term, there will be a strong case for the consolidation of the TIA and the TI(A)A

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into one law. This cannot however be undertaken until after the enactment of the TI(A)A. • The leading commentator on town planning in Bangladesh Professor Golam Rahman considers that the Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules 2008 are a “comprehensive act which should be modified for adoption in all other towns and cities in Bangladesh”89. The consultant is less sanguine. They are not well drafted and it seems that they apply to all buildings which is somewhat unrealistic. There are also doubts about the legality of the TDC. However the rules are the product of a long period of negotiation and compromise and in the circumstances it would seem sensible to leave them as they are rather than start a new round of revising them. The opportunity is taken in the draft TI(A)A to give proper legal backing to the two committees provided for in the Rules. In the longer term however, they will require revision. • For the record, the project assumes that within the foreseeable future the Urban and Regional Planning Act will be enacted. This, as commented on in Chapter 5 is a sound draft law and will provide the basis for the development of a national and coherent system of urban and regional planning. It will need a substantial amount of secondary legislation to enable it to be effective but this must be left to the UDD to develop in the light of the Act as it is eventually enacted. • New legislation will also be required if it is decided to proceed with any fundamental institutional re-structuring related to the creation of a comprehensive metropolitan governance system90.

89 Town Planning and the Political Culture of Planning in Bangladesh, 2008, p.298. 90 See Chapter 15.

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14. PROPOSALS TO ADDRESS SECTORAL ISSUES

283. RAJUK is not the only agency with responsibility for the development of the metropolitan region; nor can urban planning solve all of Dhaka problems. Of comparable importance are the development of Dhaka’s economy, its transportation network and an effective system of environmental planning and management. This section contains proposals designed to strengthen these sectors focussing on their interface with urban planning issues.

14.1. Regional Economic Development and Financial Planning

14.1.1. Economic Planning and Support to Business

284. Dhaka’s economy currently accounts for 30% of national GDP – it is the engine of the national economy. Yet its very success is under threat due to a lack of economic planning, chronic under- investment in infrastructure, and high externalities. The development of modern economies is very dependent on cities having competitive economies and efficiently managed public services. Yet Dhaka has no unifying authority with responsibility for overseeing or guiding the economic development of the city. The current Master Plan and other sector plans give very little consideration to economic development matters. Currently there is little reliable data and information on the DMR’s economy – information which is necessary to assist enterprises to make business development plans for future investment and expansion.

285. Table 14.1 presents proposals to address these issues. The preparation of an economic development plan for the DMR and a committee to oversee its implementation would create a strong platform for building a demand-driven economy and attract investment to the Metropolitan region. This may however prove infeasible in the short term. In which case, the establishment of a Regional Economic Development Committee could play an invaluable role in overseeing a range of activities to enhance the capacity of the enabling environment, and advise government on the need for policies which will attract investment and development to the region. Above all, it is essential that the imminent DMDP review addresses economic development issues in considerably greater depth than was the case when the current DMDP was prepared.

14.1.2. Finance and Infrastructure

286. Efficient and adequate infrastructure is crucial for sustainable development. At present, Dhaka has a backlog of over $20 billion in infrastructure investment to bring its urban infrastructure and transportation services to a level competitive with China91. It is also estimated that the GDP of Dhaka could be lifted by more than 2% annually by paying attention to restoring many public utilities to working order and maintaining essential assets.

287. There are two inter-related issues: (i) proper financial planning and budgeting for infrastructure; and (ii) increasing the amount of finance available. The integration of financial arrangements for the funding of development projects and recurrent expenditures is recognised as financial governance good practice. Yet, currently, very little coordination of capital and recurrent development budgets occurs

91 Consultants’ estimates.

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within the DMR. The result is unnecessary duplication, under-resourcing, waste and poor leveraging of limited public funds to support the management and development of urban services in DMR.

288. At the same time, there is an urgent need to increase the finance available for infrastructure development in Dhaka so as to: (i) reduce the current infrastructure backlog; (ii) provide the infrastructure necessary for Dhaka to develop sustainably in the future. Table 14.2 contains the study’s proposals to tackle these issues. Without this finance, the proposed reforms to the planning system and governance institutions will only have a limited impact.

289. In this context, the position of RAJUK is crucial as, unlike most other agencies, it is both self- financing and generates a significant surplus each year. Furthermore, it has the potential to significantly increase revenues through selling land nearer the market price and introducing developers’ contributions for major developments – proposals which have been earlier in this Chapter and will be legally permitted under the TI(A) Act. In contrast, DMDP local authorities need all the money they can get just to maintain existing services. It would also be unwise to assume increased subventions from central government given its responsibilities for the rest of the country and crucial sectors such as health and education. Finally, discussions with the Planning Commission revealed that funds are only available for a small proportion of approved annual development programmes. This underscores the importance of the earlier proposals to grant RAJUK greater financial autonomy.

Table 14.1. Proposals: Regional Economic Development Topic Proposal Rationale / Comments ƒ Establish a regional economic development ƒ There is no agency responsible for coordinating committee for the DMR with government economic development in DMR. Organizations like and private sector members to provide an DCCI play their part in facilitating development and ongoing forum to facilitate mutually investment in the region, however more coordinated beneficial policy development and effort is required to streamline many of the processes troubleshoot problems as they arise. and to better align government actions to the needs Economic of the business sector. Planning and ƒ Ensure that the upcoming DMDP review ƒ The previous DMDP gave insufficient attention to Development includes a thorough assessment of key economic/ employment issues, especially the economic development issues. provision of employment areas. ƒ Representatives from the real estate and ƒ The current review provides an opportunity to ensure industrial sectors should be key consultees. that this situation does not re-occur. ƒ Prepare an economic development plan.to ƒ There is an urgent need for an economic provide the basis for shaping the form and development plan for the DMR to provide the basis location of investment for development for investment in key infrastructure to support projects in the DMR. economic growth ƒ Government should support a program of ƒ There is little understanding of the integration of activities that will facilitate city cluster supply chains to support economic activities and the development for key DMR industries, e.g. role government agencies can play in providing and garments, food and beverage; transport and maintaining these. Yet these are crucial to enhancing logistics; leather; construction, and specialization, reducing transaction costs and knowledge industries. stimulating competition to drive greater efficiencies in industries which underpin the DMR economy. ƒ Establish a one-stop shop (OSS) economic ƒ Contributes strongly to the creation of a business development office for the DMR to provide environment conducive to future expansion and Support advice to investors and developers, and to investment by reducing the transaction costs for services to facilitate and coordinate the approvals of potential, especially foreign, investors. business necessary permits and approvals. ƒ Compile data on economic indicators and ƒ Information is crucial to enable sound business forecasts, spatial development trends and planning by existing and potential investors and land and rental values in the DMR. enterprises. ƒ Establish a website to publicise this ƒ Task could be sub-contracted by RAJUK’s research information. cell to an established economic research centre.

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Table 14.2. Proposals: Financial Management and Infrastructure Development

Topic Proposal Rationale / Comments ƒ Establish an Annual Budget Development ƒ See as crucial to introducing a more Forum at which draft annual development integrated and collaborative approach to budgets of the main development agencies infrastructure development: (i) building (e.g. RAJUK, DTCA, DCC, RHD, LGRD, trust; (ii) information sharing; (iii) reducing NHA, MHPW) would be presented and implementation obstacles. made available to all other agencies. Would Financial be hosted by Planning Commission. Planning and ƒ Preparation of Spatial Development Budget ƒ The next step as it would promote greater Budgeting for DMR (and then other city regions). project integration and subsequently a collaborative approach to project identification and funding. ƒ The spatial identification of projects would improve project delivery and monitoring of the performance of the SFYP. ƒ Integration of Annual Development and ƒ At present there is no integration of annual Revenue Budgets so as to ensure that funds development and revenue budgets, leaving are available to operate and maintain new many projects in agencies without funds for projects. continuous O & M – resulting in high rates of deterioration of assets and less than efficient delivery of urban services. ƒ Preparation of costed priority Infrastructure ƒ Crucial to provide realistic and integrated Plan (PIP) identifying projects and potential infrastructure development programs. financing. ƒ Develop 3-year budgets and rollover of ƒ Agencies involved with major development funds into future financial years. projects need to budget over a longer time Modernising horizon. Accounting ƒ RAJUK conduct an audit of assets and ƒ Modern public sector accounting practice Practices inventories (including land, infrastructure, uses accrual based accounting, which and buildings). would provide a better indication of RAJUK’s financial position and balance ƒ Once completed, it should introduce an asset based accounting system whereby all sheet. recorded assets are depreciated/ inflated ƒ Asset inventories and asset based annually. accounting can reveal opportunities to raise finance through the disposal of unwanted assets or as collateral in public private sector partnerships. ƒ The procedure for setting the sale price of ƒ Standard practice in China and other residential plot should be revised so as to countries. Increasing better approximate the market price. ‘Gains’ could be used to subsidise low finance for Sale of residential land through auctions (as ƒ ƒ income shelter provision. Infrastructure currently occurs with commercial plots). and other ƒ Introduction of development contributions ƒ Common practice in developed country services and impact fees. cities as means of reducing costs of off-site infrastructure and providing social/ community facilities. ƒ RAJUK engage in PPP projects after ƒ Private Partnerships (PPP) are used widely completing the introduction of an asset by land development agencies to reduce based accounting system. development costs.

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14.2. Transportation

290. To a large extent, cities develop in parallel to their transportation systems - where transportation facilities exist, development tends to follow. It follows that the provision of transport is crucial to the implementation of any land use plan. Dhaka’s transportation system is chaotic, poorly managed and under-funded. It is failing to keep up with existing demand and conditions are worsening due to increasing population, economic growth and rising car ownership. Urgent action needs to be taken if a more sustainable transportation system is to emerge, without which urban mobility and travel conditions across the metropolitan area will continue to deteriorate as the pace of development and rising car ownership continue unabated.

291. Dhaka’s urban transport problems are not unique and are similar to those experienced in many developing country mega-cities. Several of these cities are now however beginning to address these issues through greater integration of transportation and urban planning activities and through greater co- ordination in project implementation – initiatives that are urgently needed in Dhaka.

292. Dhaka has a Strategic Transport Plan (STP) for Dhaka which is broadly consistent with the current DMDP, and an agency, the DTCA, to co-ordinate transportation activities and implement the STP. The DTCA has only recently been established so its capabilities are as yet unproven. It is nevertheless evident that it will face major difficulties in achieving its objectives.

293. The major issue is funding, or rather lack of it – no transportation provider can provide facilities if it does not have the resources. This reinforces the proposals in the previous section for RAJUK to increase its income to provide an increased level of potential funding. By the same token, the land- restructuring proposals are designed to facilitate the development of local road networks – without which managed urbanisation is very unlikely to occur.

294. Funding issues aside, there are institutional barriers which are contributing to Dhaka’s worsening traffic situation. These are:

• the lack of integration between land use and transportation planning, especially when major transport projects are being developed. • the division of responsibilities for building roads in the DMR: RHD, LGED, RAJUK and DCC all have road projects in the DMR yet each agency develops its own projects which hampers an integrated approach to transport system development. Similarly, there is an absence of forward planning and budgeting. • the failure to properly address traffic impact and parking issues in the approval process for large buildings leading to increasing congestion due to illegal on-street parking. • the safeguarding of Rights of Way (ROWs) for planned primary and secondary roads and MRT alignments leading to expensive retro-fitting and high land acquisition costs. In this context, the need to establish a comprehensive road network in the Eastern fringe is of paramount importance. • the absence of investment in the secondary road network

295. Table 14.3 contains the team’s proposals to address these issues.

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Table 14.3: Proposals: Transportation

Course of action Rationale / Comments Integration of Land Use and Transportation Planning ƒ Close involvement of DTCA with current ƒ Will enable and ensure integration between transportation RAJUK’s DMDP review (under CRDP) and land use planning. ƒ Ensure that ongoing and committed projects are incorporated into revised DMDP. ƒ Preparation of Action Area plans for areas ƒ Facilitate planned urbanisation in areas currently, or likely to affected by major new transport projects, e.g. be, subject to rapid growth. MRT and designated growth areas. ƒ If not done, development is likely to be unplanned, chaotic and hard to service. ƒ Establishing road construction co-ordinating ƒ Crucial to developing an integrated and co-ordinated committee with DTCA, RHD, LGED, RAJUK approach to the identification of road construction and and DCC. improvement projects and their funding. Plan and Project Implementation ƒ Safeguarding of ROWs. ƒ Unless ROWs are safeguarded, implementation of STP will be compromised. ƒ Establishment of secondary road networks through land re-structuring measures and ƒ Without good secondary road networks, primary roads negotiations with land owners. become over-loaded and planned urbanisation is well nigh impossible. ƒ Ongoing liaison between DTCA and RAJUK ƒ RAJUK currently has little traffic impact assessment during planning application process. capability. ƒ Formulation of rules and regulations for ƒ Large new buildings in already built up areas have Traffic Impact Assessments (RAJUK with significant traffic impacts which should be assessed prior to DTCA) granting permissions. ƒ Review of parking standards (with RAJUK) ƒ Inadequate parking provision and contraventions lead to illegal parking on streets and pavements that further ƒ Enforcement of parking standards (with RAJUK). increase traffic congestion. Costs associated with increased traffic should be obtained ƒ Obtain contributions from developers for off- ƒ site road and traffic management from developers. improvements. ƒ Tougher sanctions for contraventions will act as a deterrent and provide finance for other services. ƒ Stronger sanctions against ROW encroachments and parking provision contraventions. Strengthening Transportation Planning ƒ Reduce political intervention in transport ƒ Political intervention increases delays, leads to re-appraisals planning. and affects strategy implementation. ƒ Preparation of rolling 3-5 year transport ƒ Essential for planned urbanisation and co-ordination of land investment programmes consistent with land use and transportation plan implementation. development projects and designated growth areas. ƒ Established single highway inventory and ƒ Will facilitate highway maintenance, improvement and database for DMR. design activities. ƒ Produce consolidated manual on highway design standards. ƒ Preparation of STP implementation ƒ Crucial to assess progress and provide basis for amended monitoring reports (DTCA). programmes.

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14.3. Environmental Planning and Management

296. The weakness of environmental planning and management is one of the main reasons why Dhaka’s environment is fast degrading: increasing water pollution resulting in biologically dead rivers and which is having a knock-on effect in future water supply); increasing flood risk due to loss of wetlands; worsening air pollution from brickworks and traffic; and a poor quality urban realm where there has been insufficient attention paid to the provision and safeguarding of open space. At present RAJUK has negligible environmental planning capability and has paid little attention to environmental issues in its operations. The Department of Environment (DOE) on the other hand is primarily concerned with overall policy, environmental monitoring and pollution control; DOE is not, however, directly involved in plan preparation. If this situation is to be reversed, environmental planning and management issues need to be mainstreamed into RAJUK’s operations.

297. Table 14.4 sets out ways in which this could be done. Proposals have been grouped under four sub-headings:

• Ensuring Compliance with Existing Environmental Laws and Regulations. • Mainstreaming Environmental Issues in Plan Preparation (proposals represent alternative approaches). • Mainstreaming Environmental Issues in Plan Implementation. • Developing the Knowledge Base for Environmental Planning and Management.

Table 14.4. Proposals: Mainstreaming Environmental Planning and Management

Proposal Rationale / Comments Ensuring Compliance with Existing Environmental Laws and Regulations ƒ Pass an internal resolution or memorandum (from ƒ RAJUK, as well as all government agencies, is not Chairman or MHPW) to compel RAJUK to comply exempt from the requirement of the EC Act. with the requirements of the Environmental ƒ Dhaka’s environmental situation is such that all Conservation Act (ECA) regarding the conduct of significant development projects need to take close environmental assessment (EA), preparation of EIAs account of environmental issues. and obtaining environmental clearance certificate (ECC) prior to project execution. ƒ RAJUK shows its commitment to the environment. ƒ DOE to have permanent representative on: (i) all key ƒ Will encourage developers to take greater account development committees; (ii) the Steering Group for of environmental issues. the DMDP review; (iii) the DAP review process. Mainstreaming of Environmental Issues in Plan Preparation (options) ƒ Prior to plan preparation undertake an Initial ƒ The proposals presented under this heading Environmental Examination (IEE) in full consultation represent alternative approaches. All are designed to with environmental agencies and relevant ensure that environmental issues receive a higher stakeholders. The IEE would identify key degree of priority in plan preparation that is currently environmental issues which would then be subject to the case. detailed analysis during plan formulation. ƒ The options presented however involve: (i) different ƒ At draft final stage, plan proponents would have an levels of detail in the work required; and (ii) weaker or obligation to demonstrate how the IEE issues have stronger legal obligations. been addressed. ƒ The appropriateness of these options will vary with: ƒ Undertake Comprehensive Environmental Analysis (i) the types of plan being prepared (whether strategic covering all environmental issues (similar to above or local); (ii) the environmental sensitivity of the plan but more detailed in scope and ambitious in purpose). area; (iii) the resources available; and (iv) legal requirements. ƒ Undertake SEA when deemed necessary but without a legal requirement. ƒ Over time, it may be preferable to move towards the

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Proposal Rationale / Comments ƒ Make SEA a legal requirement for all urban plans. stronger system (e.g. mandatory SEA). In the short term, this is unrealistic as technical capacity is low and SEA is not legally required (although it was undertaken for the DAPs). Hence IEE option is considered preferable in the short-term. Mainstreaming of Environmental Issues in Plan Implementation ƒ A review of the current EEC/ LUC approval system ƒ At present, LUCs are granted based on the DAPs should be undertaken to provide greater integration but they should also take account of environmental and to allow all major applications to consider legislation in regard to water bodies and proximity to environmental, demarcated rivers. ƒ At present, ECC process only starts after LUC has been granted. ƒ Inclusion of business/ economic cases in planning ƒ Dhaka’s environment is in a precarious state. Where applications where these are controversial, e.g. proposals contradict current environmental policy, have adverse environmental impacts. they should be accompanied by a strong justification as to why the development should go ahead. ƒ Developers need to appreciate importance of environmental issues. ƒ Promote engagement of a broad representation of ƒ Entirely consistent with overall objectives of stakeholders in consultations, during project increasing participation in planning and environmental assessment, pollution prevention, transparency throughout RAJUK’s operations. environmental improvement activities, raising Involvement of community groups would ease awareness and/or environmental watch or vigilance. ƒ current shortage of qualified staff. ƒ Could be done hand in hand with other proposals, e.g. for planning compliance monitoring. ƒ Develop a joint approach to enforcement between ƒ Would provide a stronger enforcement system than RAJUK and DOE. if agencies act independently.

Developing the Knowledge Base for Environmental Planning and Management

ƒ Establish cell within RAJUK to focus on ƒ Planning agencies often have established environmental planning and management issues in environmental units to deal with environmental the DMR. The system would provide data required issues. for the revision of plans and policies, and the Necessary to: (i) ensure RAJUK compliance with planning approval process. Data would come from ƒ ECA and other legal requirements; (ii) undertake RAJUK, DoE, BWDB and others. assigned environmental planning and management ƒ DOE should maintain and publish data on their functions; and (iii) would reinforce commitment to activities regarding pollution monitoring and environmental management. enforcement operations ƒ M&E is essential for environmental planning and ƒ Create and maintain M&E database to monitor/ management. Yet at present no agency is evaluate environmental performance across the responsible for compiling environmental data for DMR Key inputs will include data on contraventions, DMR. enforcement status, cases and reports, and RAJUK has existing MIS & GIS units which would outcomes. ƒ provide basis for developing the system. Formulate dissemination strategy with LGUs and ƒ To elicit active public participation, the public needs others to disseminate this information and thus ƒ to know what is going on. Hence, publicity on respond to the public’s increasing environmental environmental issues is important. concerns. ƒ Build the skills and capacity through staff training, ƒ Essential given current near total absence of e.g., seminars, courses and “learning-by-doing”; and environmental planning capacity within RAJUK. by devising tools, setting up of systems & equipping Building of skills and capacity needs to be sustained with the needed software/ hardware. ƒ over several years. External assistance likely to be needed initially.

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15. THE FUTURE INSTITUTIONAL STRUCTURE FOR METROPOLITAN PLANNING AND GOVERNANCE

15.1. General

298. Defining a future institutional framework for the future planning and management of Metropolitan Dhaka will necessitate decisions on the following largely discrete, albeit inter-linked, issues:

• Institutional Responsibilities for urban planning • The future role of RAJUK. • The institutional arrangements for metropolitan level strategic planning and governance.

299. Unlike many of the proposals contained in preceding sections, the above issues give rise to sometimes very different alternatives. Furthermore these issues are both complex and controversial. Throughout the study, they elicited more discussion and debate than most of the proposals presented earlier in this Chapter. Accordingly, for each of these major institutional issues, the principal alternatives are presented along with summary assessments of the advantages, disadvantages and potential implications.

300. What is abundantly clear is that these are difficult issues to resolve and that a consensus will be hard to reach given the very differing viewpoints of many consultees. Intensive discussions will be required, much of it at the higher levels of the Government, but also with outside stakeholders.

301. Any institutional restructuring will require legislation, be politically contentious and lead to upheavals for many civil servants; it will also take time to implement and have financial implications. Any new institutional structures would also have to overcome the systemic problems which affect many GOB departments, not just RAJUK – weak technical resources, sub-optimal management, lack of funds, and pressure from outside.

302. It is therefore considered unrealistic for this study to make firm recommendations as to major institutional re-structuring related to metropolitan governance. But at the same time, institutional re- structuring will be necessary in coming years if Dhaka, and the country, is to rise to the challenge of continuing urbanisation and its management. This study therefore confines itself to identifying the types of changes that will be required and what we consider to be the most promising alternatives, which it is hoped will be further explored and refined by the institutional component of the upcoming DMDP review.

15.2. Institutional Responsibilities for Urban Planning

303. At present, legislation provides for both RAJUK and the DMDP LGUs (city corporations and pourashavas) to undertake plan-making and development control activities92. In practice however, the great majority of planning is undertaken by the DAs owing to their much greater expertise and resource levels built up over many years. DCCN and DCCS have limited involvement in planning services owing to RAJUK’s mandate; conversely, Tongi and Narayanganj, where RAJUK is far less involved, process applications, give approvals and undertake some enforcement.

92 This duplication occurs in all cities where there are City Development Authority– Dhaka, Chittagong, Khulna and Rajshahi.

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304. Current GoB policy, as is being currently implemented by MLGRD with considerable support from the ADB and the World Bank93, is that plan-making and development control functions be carried out by the municipalities and city corporations as they, unlike RAJUK and the other DAs, have a much stronger democratic mandate. On the other hand, few LGUs have more than one planner, and many have none94; their ability to provide an adequate planning service is thus highly constrained.

305. The overlapping planning mandates creates a constant source of friction between the DAs and the LGUs who believe their democratic mandate should give them responsibility for local planning. RAJUK (and other DAs), on the other hand, notwithstanding their current very limited involvement outside the main CC areas, strongly believe that they should be the sole planning authority for their areas. In support of this argument, RAJUK highlight the lack of significant planning capacity in the LGUs and, more importantly, to the imminent establishment of eight zonal offices across the DMDP area

306. This is a very important step as it will make planning services more accessible to the local population. We understand that, among other functions, these offices will process routine planning applications (larger applications or those involving plan deviations will continue to be handled by the central office). These offices will also manage consultation and access requirements in respect of planning applications. Each office will have a duty officer responsible for answering questions and providing information to the public on planning issues. The zonal offices will provide the first step in establishing a two-tier planning system, which is very much the international norm.

307. Any short term transfer of planning responsibilities from RAJUK to the LGUs is thus infeasible because: (i) the LGUs do not have the capacity and will not until they can increase their revenue base to fund these responsibilities; (ii) it would put into question the role of RAJUK’s zonal offices - which do represent an important decentralisation initiative; and (iii) it would risk creating an extended period of confusion and uncertainty.

308. On the other hand, current GOB initiatives to strengthen local government, the Vision 2021 objective of increasing democratic involvement, and worldwide trends all suggest that the longer-term solution has to be for DMDP LGUs to assume responsibility for local planning services95. RAJUK as the strategic planning authority would retain responsibility for: (i) structure plan preparation; (ii) large applications with a strategic impact; (iii) applications involving deviations from the structure plan; and (iv) the power to declare special development areas and the planning of these96.

309. The issue therefore becomes one of achieving a smooth and gradual transition of local planning functions to the local authorities consistent with the increased capability of these authorities to carry out these tasks. Table 15.1 therefore sets out how this gradual transfer could occur. Assuming that there is agreement that this gradual transfer of local planning responsibilities should take place, the key determinants of the timing will be: (i) the time needed to fully establish the zonal offices; and (ii) LGUs having the necessary financial resources. The timings shown in Table 15.1 should there be seen as indicative. In the early stages, it is considered essential that RAJUK fully involve LGU planners (and

93 E.g, through the long-running UGIIP and MSP projects as well as the Municipal Capacity Development (MCD) component of CRDP. 94 In these LGUs, the Chief Engineer assumes responsibility for building and planning control applications and, on occasion, enforcement. 95 In Kolkata, the greta majority of development control activities have been delegated to the LGUs; see http://www.kmdaonline.org/pdf/aar11/planning_activities_kmda.pdf . 96 These provisions are included in the proposed TI(A)A.

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others responsible for planning) in development and building control so as to improve their technical ability, and increase both the co-ordination and geographical coverage of these activities97.

Table 15.1. Proposed Phasing for Transfer of Local Planning Powers to Local Authorities

Institutional Change Phase Year* Comments

Creation of 8 RAJUK Local Planning Offices ƒ Implementation imminent but offices will throughout the City staffed by qualified and become operational over an extended time- By competent professionals. period. 1 2015 Co-ordination with activities of LGU planners. ƒ Will increase totality of development control resources and increase technical capabilities of LGU planners.

Local authorities to establish local area planning By ƒ Essential first step towards LGU oversight of committees to oversee the 8 RAJUK Local 2017 local planning activities. Planning Offices in relation to all planning and 2 development applications within each ƒ Timing dependent on opening of zonal constituent area.** offices.

RAJUK to second planning staff from 8 Local By ƒ RAJUK is currently better resourced to do Planning Offices to local government while 2018 this than municipalities. continuing to fund their salaries and operations. 3 ƒ Timing dependent on opening of zonal offices.

RAJUK to surrender development control 2019 ƒ Transfer of decision-making to local functions for small applications to local authorities. government but to maintain technical support 4 and funding.

RAJUK to surrender local area plan preparation 2021 ƒ Should be timed for the first review of soon functions to local government. to be revised DMDP and associated DAPs. 5 ƒ RAJUK would retain responsibility for special development areas and major applications.

Urban districts to take over the staff and 2021 ƒ Requires municipalities to have required resources of RAJUK local offices. 6 funding.

* Indicative. ** Technical advice could be provided by planners seconded from UDD.

15.3. The Future Role of RAJUK

310. One of the most intense criticisms levelled at RAJUK is the conflict of interest involved in dual responsibilities for both land development and land use planning. RAJUK acts as both ‘system regulator’ and ‘system user’ - as regulatory plan-maker and regulatory plan-user, as arbitrator and applicant, as planner and developer. This dual responsibility is seen as:

• facilitating RAJUK’s contravention of its own planning policies - both for its own developments and in granting planning permission to others. Both points are frequently made in reports and the media as well as by developers. • Increases its susceptibility to corruption. • causing RAJUK to neglect its planning functions as it concentrates on more lucrative land development, to the detriment of Dhaka’s environment, traffic and housing all of which affect a much greater proportion of the population than do its developments.

97 At present, RAJUK provides very limited development control coverage outside the main DCC area.

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311. There are three basic alternatives which are set out in Table 15.2 along with their principal advantages and disadvantages: 1. RAJUK continues with both land development and planning functions but with much enhanced safeguards to reduce potential conflicts of interest. 2. RAJUK continues as a land development agency but delegates or relinquishes its planning functions. 3. RAJUK continues as metropolitan Dhaka’s planning agencies but delegates or relinquishes its land development functions. This option is included in the Draft National Urban Policy with the added recommendation that the NHA assumes responsibility for land development activities98. 312. When considering these alternatives, the following should be noted:

• Whichever alternative is chosen, it should involve a gradual transfer of local planning functions to DCC(N), DCC(S) and other local authorities in the DMDP area (see above). • Whichever alternative is chosen, the new institutions proposals related to: (i) becoming more accountable and transparent in their operations; (ii) embracing revised planning procedures, including increased public participation, stronger enforcement and pro-active planning initiatives; and (iii) making greater efforts to provide for low income households.

• Whichever alternative is adopted, major change management and training programmes will be necessary.

• If Alternative 1 is adopted, safeguards will need to be introduced to overcome the demonstrable shortcomings of the current situation. Its main advantage is that it would involve little change from the current situation; on the other hand, it would probably not satisfy many of RAJUK’s current critics. • If either Alternatives 2 or 3 are preferred, new institutional arrangements will need to be made for either land development or planning functions (Table 15.3).

313. The decision as to which of the above alternatives, which have very different institutional consequences, should be adopted is not one that can be taken at this time. It will require high level discussions between RAJUK and the other concerned key government ministries, notably MHPW, MLGRD, MOC and the Planning Commission. Nevertheless some conclusions emerge.

314. Institutional re-structuring will take time. It will need legislation, it is likely to have financial implications, and it will be disruptive to both staff (although many would remain the same) and the services provided. Moreover, the ‘new’ structure would still have to address the same generic institutional problems – lack of technical resources, inadequate funding, ‘outside’ pressures, weak legislation. Decisions would also need to be taken on who would become responsible for functions split off from RAJUK – this too would be involve a protracted and often contentious process. This both underscores the need for intensive capacity building and implies that institutional reshuffling, however radical, will not, on its own, lead to the resolution of Dhaka’s urban development problems.

98 National Urban Sector Policy (Draft), Ministry of Local Government and Cooperatives, Local Government Division, Committee on Urban Local Governments, September 2006.

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Table 15.2. Alternatives for the Future Role of RAJUK

Alternative Advantages Disadvantages 1. RAJUK retains both its Strategic Level Planning and Land Development Functions ƒ RAJUK to split into separate ƒ This addresses the key matter of ƒ May be hard to properly establish ‘planning’ and ‘implementation’ separation of powers and could separate planning and land agencies; both to continue to serve improve operational policy and development divisions with pressure under MHPW. oversight. to deviate from planning policies still likely. ƒ RAJUK board to become more ƒ Requires the least institutional re- broad-based. structuring and thus has little ƒ Completely contingent upon RAJUK ƒ Other safeguards to include: impact on other ministries and being able to establish clear decentralized decision-making within agencies. separation between its planning and RAJUK, a more broad-based board land development activities. ƒ Minimises potential disruption to structure, system of appeals, a current operations. ƒ May reduce but is unlikely to eliminate special regime for planning distrust of public and other agencies, applications involving RAJUK land, ƒ Recognises current RAJUK efforts to improve its performance. hence reducing its ability to fulfil its dissemination of information. mandate. 2. RAJUK to shed the overall spatial planning function for Metro-Dhaka and become a Specialised Area Development Agency ƒ RAJUK would continue to be part of ƒ Clearly separates planning and ƒ Need to establish new strategic MHPW. land development functions and planning organization. reduces, compared to Alternative ƒ RAJUK to manage the planning, ƒ Disruption to strategic planning and design and construction of major A, potential for continuing conflicts development control while new developments within the DMR area of interest. organization is established. as a specialised land development RAJUK retains the functions that it ƒ ƒ Could divert attention away from agency. has carried out most effectively implementing short-term proposals over the years. No other agency ƒ RAJUK would no longer be involved designed to start addressing Dhaka’s with planning outside the boundaries has this experience. problems. of these major land parcels. Allows RAJUK management to ƒ ƒ RAJUK, despite its manifest problems, concentrate exclusively on land has the most extensive and best development providing greater resourced development control clarity to their mission and strategy. system. Enables strategic planning ƒ ƒ Planning services currently subsidized functions to be ‘rejuvenated’ under by RAJUK’s land development a new organization (see below). operations hence need for new funding source. 3. RAJUK to shed its land development role and deal solely with the strategic metropolitan planning ƒ RAJUK to manage structure ƒ Clearly separates planning and ƒ RAJUK has performed poorly as a planning, regional planning and land development functions. planning authority in recent years. urban development planning ƒ RAJUK has been the DMDP ƒ Will need a major change amongst throughout the DMR. planning authority for many years senior staff who are accustomed to ƒ RAJUK to be responsible for and has experience in managing the focus on land development. developing innovative mechanisms plan preparation and undertaking ƒ New institution/ arrangements will be (land re-adjustment, land development control and required for land development consolidation, land sharing) in compliance. activities but this is likely to be easier partnership with land owners and ƒ Local authorities generally than Alt. 2. developers. recognise RAJUK’s mandate and ƒ RAJUK to be responsible for some are willing to apply the DAPs. upgrading and sites and services ƒ Easier than Alt. 2 to gradually schemes for low income households. devolve local planning powers. ƒ Local planning functions would be devolved.

315. On this basis, the SRPG team strongly believe that, in the short term, efforts should concentrate on strengthening RAJUK and support its recent efforts to improve its performance. Splitting RAJUK at this stage would almost certainly create a policy hiatus and would delay the introduction of the legislative changes, policy measures and other proposals described above –

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and Dhaka needs action now. Finally, it would be premature to take a decision on the future role of RAJUK without addressing the over-arching, and more complex issue of overall metropolitan governance (see next section).

316. On the other hand, RAJUK has been subject to so much criticism, and from virtually every quarter, that only major institutional change may assuage RAJUK’s critics and restore public confidence. However to a large extent, the ‘need’ to split RAJUK will depend on its performance over the next few years. If this is generally deemed to be good, the impetus to remove either its planning mandate or its land development activities may diminish markedly. If its performance is considered unsatisfactory, the pressure for re-structuring may well become unanswerable.

Table 15.3. Alternative Institutional Arrangements if RAJUK is split

Alternative Advantages Disadvantages

Alternatives 2. RAJUK remains land development agency but is no longer planning authority DCC ƒ DCC is a large organization with extensive ƒ Recent split has almost certainly made this urban management functions. alternative unrealistic. ƒ Until its split, DCC was responsible for around ƒ Would be strongly opposed by other DMDP half the DMDP population. LGUs. MHPW ƒ Current supervising Ministry of RAJUK. ƒ Not directly involved in local government. ƒ Also responsible for UDD which contains ƒ Little experience of local government issues substantial urban planning experience. and organizations. MLGRD ƒ Responsible for local government. ƒ Would require assent of MPHW. ƒ Currently has projects to strengthen planning ƒ Little experience of urban planning. functions in municipalities an city organizations. A reconstituted ƒ DTCA already has a mandate to co-ordinate ƒ DTCA falls under MOC; hence inter- DTCA with transportation in the Dhaka region as well as ministerial conflicts likely. planning as well some planning powers. ƒ DTCA has only just been established and as transportation ƒ Responsibilities include implementation of does not have a proven track record. responsibilities. Strategic Transport Plan. ƒ DTCA’s jurisdiction currently covers a much ƒ This alternative would facilitate greater larger area than RAJUK. This could reduce integration of planning and transportation which resources in DMDP area where action is would be beneficial. most needed. Planning Com- ƒ Already has physical planning cell. ƒ Not directly involved in local government. mission ƒ Used to co-ordinating between ministries and is ƒ Little experience of local government issues well aware of issues having prepared 6th FYP. and organizations or urban planning matters. Alternative 3. Establishment of New Land Development Agency; RAJUK remains planning authority Easiest to achieve with few institutional ƒ ƒ No major disadvantage although some repercussions. institutional reorganisation would be Could be combined with NHA which is also in A new, separate ƒ necessary but this would be within same MHPW and has housing/ land development land development ministry and both agencies are already responsibilities. agency involved in land/ housing development. responsible to ƒ Combination could therefore create one agency MHPW with greater access to land, finance with a greater pro-poor focus. . ƒ Could be cost savings due to rationalisation of operations.

Located in , or ƒ None apart from possibly giving another agency ƒ Institutionally much more complex and no under the the chance to ‘do better’. other agencies are obvious candidates. authority of, another institution

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317. If RAJUK is to be split, Alternative 2, which leaves the current land development activities with RAJUK, appears preferable. Creating a new strategic planning agency under new management could also provide a reinvigoration of activities on this front that would be hard for existing RAJUK management to match. Furthermore this alternative could make it easier to establish an effective overall Metropolitan Development Authority for Dhaka (see below).

318. On the other hand, Alternative 3 would require a major change management exercise to make it an effective strategic planning authority, if this were to become its prime function. Combining RAJUK and NHA’s land development activities has its attractions as both agencies undertake land development functions and both are located within the same MHPW – although this could also be done under Alternative 2.

319. We should however reiterate that the study team is convinced that in the short term, there should be no attempt to make RAJUK relinquish either its planning or land development roles.

15.4. The Establishment of a Metropolitan Development Authority (MDA)

15.4.1. A Phased Approach to Establishing an MDA for Dhaka

320. It has been evident throughout this report that urban planning, even with enhanced legislation and a greater commitment to its implementation and enforcement cannot be expected to ‘solve’ Dhaka’s problems on its own. Future development has to be guided more effectively towards those areas where growth is to be encouraged; and these growth areas need to be developed in a planned way. This can only realistically be done if transportation plans and projects are prepared and implemented in accordance with land use policies. Likewise, land use proposals need to be formulated that maximise the benefits from major transport projects by planning, promoting and implementing associated land development. Furthermore, both land use and transportation planning need to address the needs of Dhaka’s economy without which the city will lose its competitive edge to better managed cities with more conducive environments to operating, expanding and establishing new businesses.

321. The absence of the required level of integration and co-operation is a major contributory factor to the problems that Dhaka is now facing. If Dhaka’s future development is to become more sustainable, mechanisms and institutional structures have to be established to ensure that this integration takes place.

322. Core to the reform is a Metropolitan Development Authority (MDA) which will have overall responsibility for the planning and coordination of all Metropolitan wide development activities in the region. Such and Authority must be given the adequate powers and delegated functions to carry out its responsibilities. It must be fully accountable to national government and the community, and represent the wide interests of a diverse group of stakeholders engaged in the planning and development of the region.

323. Generally speaking, most developed country cities and many in developing countries have or are moving towards combining metropolitan planning and development functions within a single authority although some may only have jurisdiction over the urban core99. There seem to be no compelling reason why Dhaka should not also aim to establish such an authority: it is the capital city, it is

99 This is not an issue in Dhaka as both RAJUK and DTCB have city region jurisdictions.

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a mega-city which continues to grow fast, it is the economic hub of the country, and many of its current problems need metropolitan solutions. The creation of an MDA for Dhaka is also entirely consistent with Bangladesh Vision 2021.

324. Metropolitan governance reform is difficult and it can take many years for reforms to be bedded down and become normal routine. It also requires management and staff in every department or ministry responsible for the development and delivery of urban services to commit to change in organizational structure and operations. In Dhaka, this is likely to be particularly difficult due to both the weakness of current institutions and the current low level of inter-agency co-ordination and co-operation.

325. In these circumstances, the preferred approach is not one of ‘instant’ re-structuring but of a sequence of stages leading to the establishment of a full Metropolitan Development Authority. Table 15.4 shows how such an approach could work. The six stage process would start with the establishment of an annual planning and budgeting forum (St.1), continue with a Metropolitan Development and Infrastructure Co-ordinating Committee (MDICC) (St.2), both of which could be established fairly quickly as they would not require either legislative or institutional changes. Also by concentrating on project based and short term issues, it would generate some results without much delay. Thereafter the process sees this committee increasing its functions (St.3), establishing a secretariat (St.4), becoming subject to outside oversight and supervision (St.5) before a full MDA is established (St.6) with a full range of metropolitan responsibilities and subject to democratic control and oversight.

326. Stages 1 to 4 would be undertaken and co-ordinated by the Planning Commission (Infrastructure wing) - the agency already charged with co-ordinating and approving infrastructure projects. A possible structure for the Stage 2 MDICC would be a Chairman, a Vice-chairman and other members from different line agencies, e.g. RAJUK, DTCA, RHD, DESA, WASA. DMR LGUs, etc. To maximize the authority of this committee, the Chairman should be the Ministry of Planning with the Member (Infrastructure) of Planning Commission as Vice-Chairman and Chairman, RAJUK as the Member Secretary.

Table 15.4. Stages in the Establishment of a Metropolitan Development Authority

Stage Principal Responsibilities Implications 1: Annual ƒ Knowledge sharing between sectoral agencies. ƒ An important and necessary first step. infrastructure ƒ Co-ordination of infrastructure ADPs for DMR. ƒ Easily integrated with annual planning and budgeting process. budgeting forums ƒ Identification of inter-agency co-ordination and implementation issues. ƒ Will promote more integrated (headed by Planning approach to infrastructure and major Commission) land development projects. 2: Establish a Dhaka ƒ Build greater trust between infrastructure service ƒ Co-ordination committees have been Metropolitan Region delivery agencies in the region. tried before and have generally Development and proved ineffective. To guard against Sharing of information on ongoing and committed Infrastructure Co- ƒ this, there needs to be: projects. ordination C’ttee: Clear statement of support from RAJUK, DTCA, Identify shared areas of concern and bottlenecks. ƒ ƒ director level of each agency. DOE, sectoral Formulate procedures to streamline day to day ƒ Senior level membership, i.e. not top delivery agencies operations, e.g. planning approvals. ƒ and LGUs. and not mid-level, with significant ƒ Identify areas where actions by other agencies decision-making power. ( headed by the could: (i) facilitate plan/ project execution; (ii) Need for defined mandates and TOR. Planning enhance potential benefits. ƒ Commission) ƒ Prepare joint funding proposals to Planning Commission.

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Stage Principal Responsibilities Implications 3a: Expand ƒ Integrate planning and implementation of medium ƒ Objective here is to increase the Committee term major proposals. committee’s responsibilities by giving responsibilities to it a longer term focus and more multi- Formulate investment priorities and prepare joint include consideration ƒ sectoral mandate. funding proposals. of medium and Could be formed from the technical longer term planning Identify and resolve any conflicts between DMDP ƒ ƒ committee formed to direct and and economic and STP. manage the DMDP review. development issues. Develop longer term vision of future metropolitan ƒ Would enable government and private - ‘New’ members development policies and associated major ƒ sector interests to engage in the would include private infrastructure needs. development of ideas, initiatives and sector Trust building and sharing information between events that would promote the representatives. ƒ public and private sectors. development of the region. ƒ Promoting a range of economic development ƒ Discussions with private sector opportunities in the region by providing a single suggest that there is interest in: (i) Stage 3b: As above point of contact for potential investors. coordinated marketing and economic but with additional promotion activities; and (ii) helping to responsibilities. Formulate measures to: improve business ƒ address Dhaka’s chronic urban administration services, streamlined planning problems. applications, promotional and marketing activities. ƒ Develop options for greater private sector involvement in infrastructure provision, environmental management, and low income housing. ƒ Establish working group to review alternatives MDA structures and recommend the preferred approach for the DMR. 4: Establish and ƒ This is an institutional change. There would be no ƒ The next step in developing a more gradually expand major increase in technical responsibilities. formalized system of metropolitan secretariat by governance by establishing a Continues the gradualist strategy with timing transferring strategic ƒ secretariat with transportation dependent on effectiveness of operations at the planning functions of planning, urban planning, economic time. DTCA and RAJUK; development and environmental strengthen by ƒ Second stage transfer could include staff involved management responsibilities. establishing with handling major planning applications and Staff would initially be seconded from economic who thus will need closer co-ordination with other ƒ participating agencies and individual development and agencies. departments would be ‘offshoots’ of environmental these agencies. management units. 5: Introduce direct ƒ To provide guidance and oversight through ƒ Essential to reflect with overall policies democratic membership which includes local municipalities, of increasing accountability and civil accountability by private sector, civil society. society inputs into the planning and establishing development of the DMR. To help resolve controversial issues through governing board/ ƒ discussion, negotiation and mediation. council 6: Establishment of Would include inter alia: ƒ The most complex and involved step Metropolitan as staff would no longer be seconded ƒ Structure and transport planning. Development and all functions would be transferred. Authority with full ƒ Implementation of major transportation and land development projects. ƒ Legislation will be required covering range of institutional structure, mandate, job metropolitan ƒ Higher level traffic management and public descriptions and full transfer of staff, planning and transport regulatory functions. etc. development Economic development activities including ƒ ƒ Likely to be politically contentious due functions and full promotional. transfer of staff to to number of ministries involved Environmental monitoring. new authority. ƒ ƒ Sound revenue base essential. Regional services such as land fill sites. ƒ ƒ Could also involve transfer of ƒ Research, monitoring and evaluation. responsibilities from other ministries, e.g. DOE for monitoring.

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15.4.2. The Administrative Location of the MDA

327. There remains the question of the administrative location for the MDA. Table 15.5 sets out the principal alternatives identified by the Consultants.

Table 15.5. Alternatives for the Administrative Location of the MDA

Alternative Advantages Disadvantages ƒ RAJUK is the current DMDP planning ƒ Current low credibility of RAJUK. 1 RAJUK under MPHW authority. ƒ Unlikely to be acceptable to other ƒ RAJUK has mandate to co-ordinate ministries activities of sectoral agencies ƒ DTCA has the mandate to co-ordinate ƒ Only has mandate for transport and has 2 DTCA under MOC transportation planning and been set up with this in mind. implement the STP. ƒ Responsible for a much larger area (the ƒ DTCA executive reports to a large, DCR) which might be an advantage in the broad-based, Board. long term but emphasis in coming years has to be on DMDP area. ƒ Unlikely to be acceptable to other ministries ƒ Has responsibility for local ƒ Little experience of urban management 3 MLGRD government, including city and planning issues corporations and municipalities ƒ Unlikely to be acceptable to other ministries. ƒ Used to co-ordinating ministries ƒ Inexperienced in urban management. 4 Planning Commission during ADP process. ƒ May not be acceptable to other ministries. Already has physical planning and ƒ Needs to be established at high level and infrastructure wings. ƒ not as wing or department of ministry. ƒ Responsible for establishing annual budget forums and MDICC (Table 15.4) 5 A new Miinistry for ƒ MDA would be established at a high ƒ Inter-ministerial conflicts would be likely. Dhaka/ Urban government level. Development 6 ‘Dhaka’ cell within ƒ MDA is established at the highest ƒ Could cause conflict with line ministries. Prime Minister’s possible level. Could be most susceptible to political Office ƒ influence. ƒ Not supported by several key consultees. 7 Ministerial Board of ƒ Would ensure joint and equal role for ƒ Inter ministerial collaboration could Governors – all key ministries. remain problematic. Secretaries of MoC, Would provide high level authority Would require high level consensus from MHPW, MLGRD, ƒ ƒ all ministries. MoEF and MoP

328. Given the different agendas and interests of the main ministries involved (MHPW, MOC and MLGRD), it is considered that assigning over-arching responsibility to one of these will be resisted making the necessary co-ordination and commitment hard to achieve; alternatives 1, 2 and 3 are thus unlikely to be feasible. Establishing the MDA within the Ministry of Planning (alternative 4) has its attractions given the Planning Commission’s experience in dealing with line ministries and its involvement in the proposed MDICC. However this alternative would change its relative influence vis-a- vis the other ministries – which may also be resisted. Furthermore, the MDA needs to be established at a high level and not within a wing of the Planning Commission.

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329. The preferable options therefore are either establishing a Ministry for Dhaka (5) or a dedicated unit within the Prime Minister’s office (6) or appointing an inter-ministerial board (7); alternatives 5 and 6 are both proposed in the Draft National Urban Policy while 7 was suggested by DTCA. All three of these alternatives would be justified by Dhaka’s capital city status, its national economic importance and the urgent need to address its critical developmental problems. These alternatives would also confirm GOB’s determination to radically improve the quality of life of Dhaka’s residents. Likely criticisms of creating a Dhaka Ministry from the other large major urban areas could be countered by adding to its remit and naming it as a Ministry of Urban Development. This alternative could however lead to conflicts with other ministries. Creating a special department within the Prime Minister’s office would mean that the MDA is established at the highest possible level within GOB but several consultees suggested that this alternative might be susceptible to excessive political influence. Creating an inter-ministerial board of directors (7) represents a way in which these objections could be overcome but it would need a firm commitment from each ministry to co-operate with each other and to participate fully in the governance of the MDA.

330. Clearly this is an issue that cannot be resolved in this Report and needs to be the subject of high level discussions, over an extended period, within GOB. This lack of resolution is not seen as problematic as the creation of an MDA is seen as a long term objective. In the shorter term, the emphasis needs to be on changing institutional and management cultures, a high level commitment to tackling Dhaka’s problems, and substantial HRD/ HRM programmes. Changing institutional structures is unlikely to be sufficient, especially given that many of the same staff, senior and junior, will remain the same.

15.4.3. The Geographic Jurisdiction of the MDA

331. The current DMDP jurisdiction covers a large area which includes not only the existing built area DCC(N) and DCC(S)) but most of its immediate hinterland (including planned growth areas such as Narayanganj and Gazipur)100. Despite rapid urbanisation, the DMDP area still includes substantial undeveloped, yet developable areas. Allied to further densification of fringe areas, there is thus a strong likelihood that the DMDP area has the potential to accommodate most of the forecast population growth for the next 10 years. In consequence, and bearing in mind the upcoming DMDP review, we consider it premature to recommend any enlargement of the DMDP area. This conclusion is reinforced by the difficulties RAJUK is facing in providing services outside the urban core and its own development areas; it would seem illogical to extend its area of operation when it has limited impact in much of the existing DMDP area.

332. It is however considered desirable that the Union Parishads currently lying within the DMDP area, currently outside the jurisdiction of any urban LGU should be absorbed into one or other of these – as has recently been the case for some UPs in the Tongi-Gazipur area.

333. In the longer term, enlargement of the MDA area will become necessary, as, development increasingly spills over into adjacent areas. When this occurs, the logical solution would be to extend the jurisdiction of the MDA area to cover the entire Dhaka City Region (see Figure 2.1), which now falls under the responsibility of DTCA for transportation planning purposes.

100 Dhaka is lucky in this respect as many urban authorities do not have control over their hinterlands.

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15.4.4. In Summary 334. This section has looked at alternatives for the re-structuring of Dhaka’s urban governance system. What is evident is that major institutional changes will be required if Dhaka’s urban challenges are to be confronted and the Vision of Bangladesh 2021 is to be achieved. However such changes must be seen as objectives to be achieved over the next 10 years. They are neither feasible nor desirable in the short term: not feasible because most institutions have neither the management nor technical capacity nor financial resources to implement the changes required; and not desirable as the organisational arrangements and financial implications would almost certainly create a policy hiatus and period of uncertainty that would further delay the concerted action needed to tackle Dhaka’s urban problems.

335. In consequence, the SRPG team strongly believe that the way forward in the short term is not through a precipitate institutional re-structuring but for a wide-ranging series of proposals designed to: (i) enhance inter-agency co-ordination and co-operation; and (ii) upgrade technical and managerial capacities of RAJUK and other key sectoral agencies. The next section presents our proposals as to how co-ordination could be improved while Chapter 16 addresses the issue of organizational development.

336. Having said that, the eventual establishment of an effective MDA for Dhaka is seen as vital if Bangladesh is to achieve its Vision 2021 and Dhaka’s development is to become more sustainable in the longer term. Numerous MDA models exist in terms of responsibilities, organisational structure and governance. In most cases, they have the following attributes: (i) a strong mandate; (ii) democratic accountability, (iii) responsibility for strategic land use and transportation planning; (iv) economic development and promotion functions; and (v) devolution of local service delivery to directly elected lower tier authorities. Once the proposed MDICC becomes established, a thorough evaluation needs to be undertaken so as to identify the MDA institutional structure, responsibilities and governance most suited to the Dhaka context.

15.5. Enhancing Inter-Agency Co-ordination and Co-operation

337. Throughout the consultations undertaken for this study, whether with RAJUK, other ministries or outside organisations, and whether in individual interviews, seminars or at the September workshop, the most frequently recurring theme was the absence of co-ordination and co-operation between the agencies involved in metropolitan Dhaka’s governance. This absence of co-ordination manifests itself in several ways: absence of integrated land use and transportation planning, lack of knowledge about other agencies’ activities, a low level of information sharing (both within and between government departments), a piecemeal approach to project formulation and funding, and project implementation issues.

338. Table 15.6 presents six proposals which the team considers would do most to improve co- ordination. Taken together these proposals will contribute to the following:

• Building inter-agency trust and information sharing. • Co-ordinating annual project budgeting and implementation (e.g. removing construction and consent-related bottlenecks. • Generally improving: (i) the technical quality of decision-making for construction and development projects; (ii) approval processes. • Improving the integration of ongoing and planned projects; identifying

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potential synergies, e.g. where action by another agency could lead to enhanced benefits. • Preparation of joint funding proposals (for ECNEC or foreign lenders), especially for multi- sectoral projects. • The implementation of multi-sectoral projects. • The co-ordination of monitoring and enforcement activities against illegal developments, land-filling, planning approval contraventions.

Table 15.6. Proposals: Enhancing Inter-agency Co-ordination and Co-operation

Proposal Key Agencies Functions/ Comments

Annual ADP Planning Commission, ƒ Share information on large ongoing and upcoming Planning and RAJUK, DTCA, RHD, LGED, development projects, identify co-ordination issues/ Budgeting Forum DCC, other DMDP LGUs, bottlenecks/ synergies with other agency activities. others responsible for major (annual meetings) Stage1 of MDA establishment (Table 15.4) DMR development projects. ƒ Metropolitan Planning Commission, + as ƒ As above + but more emphasis on: Development and above + DOE and eventually - Identification and prioritisation of future projects. Infrastructure representatives from private Committee (initially sector and civil society. - Preparation of joint funding proposals. annual, then - Formation of ad hoc committees to deal with particular biannual) problems/ projects. ƒ Stage 2 of MDA establishment (Table 15.4) Transportation Co- DTCA, RAJUK, RHD, LGED, ƒ Information sharing, progress on projects, co-ordination ordination DCC issues, bottlenecks for ongoing projects involving Committee transportation. (quarterly) ƒ Formulate mechanisms to safeguard transport ROWs. Enforcement RAJUK, DOE, BIWTA. ƒ Enforcement issues. Committee and BWDB, LGU planners. Joint (area-based?) approach to planning contraventions Task Force ƒ and illegal land occupation. ƒ To send clear signal to developers and land grabbers that planning contraventions will not be allowed and will be severely punished. ƒ To co-ordinate the enforcement activities of RAJUK and LGU planners. Working group to RAJUK, DOE, ƒ Crucial to: (i) streamlining planning application/ approval review and process; (ii) ensuring mainstreaming of environmental streamline issues into this process; and (iiii) demonstrating RAJUK’s LUC/ECC commitment to taking full account of environmental procedures considerations. Working group to RAJUK, DCC and other ƒ Would start with initial meeting with all LGU planners (and establish co- DMDP LGUs others involved in planning approval processes) in DMDP ordination of area. RAJUK and LGU Co-ordination of all planning activities within DMDP area. planning activities ƒ Resources are limited so activities need to be integrated. ƒ Development RAJUK, DCCI, DOE, NGOs ƒ Operation of development control system. control forum ƒ Revisions to rules. (biannual or Formulation of streamlined procedures. quarterly) ƒ ƒ General trouble-shooting.

•

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339. In addition to the proposals shown in the Table:

• every effort should be made to promote day to day contacts between officials from different agencies working on allied projects or requiring information/ assistance. Where appropriate secondments should be arranged. • existing committees (e.g. development control, TDC, LSP) would continue as before but with renewed and revised mandates.

340. Inevitably, the above recommendations will require the establishment of a number of committees - some large, some small; some permanent, some ad hoc; some will require the presence of high level officials while others will need less senior staff. Dhaka has a history of co-ordinating committees, most of which have been ineffective. But this is not always the case. Recently, the Hatir Jheel project is a multi-sectoral project involving a wide range of works and several implementing agencies whose imminent completion could not have been achieved without a high degree of inter- agency co-ordination - so it is possible. To maximise the effectiveness of the committees and working groups it is essential that: the following conditions are met:

• clear statement of support from director level of each agency with a stated willingness to work together to achieve an agreed set of objectives. • clearly defined mandates and TOR. • membership is appropriate for the issues under discussion; often this will mean senior level membership, i.e. not top and not mid-level. • they have decision-making power.

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16. ORGANISATIONAL DEVELOPMENT AND CAPACITY BUILDING

341. Acceptance of some or all of the proposals presented in preceding tables will be a major step forward. Yet it is clear that without an intense effort to improve RAJUK’s management performance, organizational development, human resource development and management (HRD and HRM), initiatives to improve Dhaka’s urban management will have little chance of success.

342. The Consultants have produced five Advice Notes which include both proposals as to how this can be achieved and guidelines as to how the required changes can be implemented. The five SRPG Advice Notes are:

• SRPG Advice Note No.1 Corporate Management: A corporate management system is proposed which: a) inspires trust and inspires confidence; b) which satisfies the needs of city residents, businesses and investors; and c) which provides for continuous monitoring and evaluation of performance. • SRPG Advice Note No.2 Human Resources Management: HRM is a key component of good governance and is especially crucial in those agencies involved in the delivery of metro-urban development programmes, facilities and infrastructure services. • SRPG Advice Note No.3 Human Resources Development: HRD provides employees with increased capabilities and increased capacities to perform to higher standards in the workplace; via attributes like leadership, delegation, task flexibility, lateral thinking, self- appraisal capacities, ability to prioritise, confidence to engage in unfamiliar tasks, receptiveness to change, and openness to alternative working styles and methods. • SRPG Advice Note No.4 ICT and Technology in the Workplace: high-quality ICT systems are required to meet increasing public information and process transparency obligations. We propose better integration; more generous operating budgets and optimised utility - in relation to access and action by operational staff and the public. • SRPG Advice Note No. 5 Community Outreach Strategy: A Community Outreach Strategy is proposed to increase public confidence in the independence, fairness and effectiveness of RAJUK as the principal urban planning and development authority.

343. The Advice Notes are contained in Volume 3 of this Report. This section provides a summary of their main points.

16.1. RAJUK Corporate Planning and Budgeting Systems (SPRG Advice Note 1)

344. SRPG has considered a number of alternative management models for metro-Dhaka based on a thorough analysis of the current situation and consideration of selected ‘International Case Studies’. An empowered CEO, whether via elected or appointed office, remains the longer-term goal from the perspective of efficient corporate management. In relation to budgets, a more aggressive business plan which maximises income to address the infrastructure and low-cost housing backlogs and optimises city-wide benefits is required. The required reforms are summarized in Box 16.1.

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Box 16.1: Proposed Reforms to RAJUK’s Corporate Planning and Budgeting Systems

Management Structure Empower the Chairman and the Board via one of a number of options (e.g. inclusion of non-executive members in a higher status forum or addition of a higher-level supervisory structure over the current executive board) to increase the status, accountability and profile of RAJUK management. Management Culture SRPG provides an opportunity to initiate a ‘change management approach’ and consider new and emerging demands on Dhaka city governments and development agencies in a coherent and systematic way. The key processes will involve: (i) Define the mission of all the principal city government agencies and identify the ‘core businesses’ of each authority in relation to new development projects, delivering essential public infrastructure, services and facilities; promoting local economic growth and alleviating urban poverty; (ii) review what crucial deficits exist in each element of the city government apparatus and the resources available to address key functions; then identify why deficiencies exist; (iii) review the types of action that can be taken an executive level to address problems identified - using established Government of Bangladesh ‘Good Governance’ principles, as contained in the 6th Five-Year Plan. Fulfilling RAJUK’s Mandate RAJUK needs clear policy guidance, support and freedom of operation to move beyond its core business and address metro-scale planning and development challenges more effectively. RAJUK needs clear performance targets for each aspect of the metro-urban mandate. The first priority is a shift toward more efficient corporate management systems in order to marshal available resources to meet institutional challenges effectively and efficiently. Institutional re-design, starting with the establishment of a clear hierarchy of decision-making levels and incorporating restructuring at the departmental and ‘cell’ level to meet emerging demands, is also critical. Resourcing and Budgeting The full range of responsibilities within the RAJUK mandate should be translated into a 5-year rolling programme and costed. Targets to address the very substantial backlog and achieve a balanced needs-driven programme in 10 to 15 years should be adopted. Targets should be established for all sub-areas of the DMDP area and not just RAJUK’s land development projects. Likewise targets should be introduced for increasing revenue and thus making more finance available for investment in housing and infrastructure. RAJUK’s Business Model The RAJUK business model is based on ‘contracting out’ all substantive works. Contracting out requires a small expert staff with high level technical, professional, management and communications skills. Contracting out is thus best served via a horizontal management structure not a pyramid structure. The balance between professional and unskilled staff, as set out in the new establishment, should be reviewed prior to major recruitment.

16.2. Human Resource Management and Development for RAJUK

16.2.1. Human Resource Management (HRM) (Advice Note 2) 345. Capacity building in HRM/ HRD will constitute a major challenge as the SPRG investigations make it evident that human resources in RAJUK have been badly neglected giving rise to poor organisational performance and low organisational credibility. Major concerns are:

• Chronic understaffing: currently around 700 as there is a 40% vacancy rate; this represents a ratio of one person per 2 km2 of DMDP area and one per 21,000 population; most of these are non-professional and unskilled. • Lack of task-specific ‘job descriptions’ below member level with staff responsibilities being inferred from the parent unit’s operations. • Low staff morale especially among mid-level and junior planners due to lack decision- making responsibility, the routine nature of the work which provides offer little in respect of ‘challenge and reward’, and perceived lack of corporate social and environmental

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responsibility101. • The over-hanging law suits blocking appointments to several hundred positions. • Poor physical working environment.

346. Professional capacity and staff numbers should be derived from the scale of the task in prospect over a 5-year rolling programme of tasks and works needed to fulfil RAJUK’s based on the full gamut of responsibilities and duties under RAJUK ‘s its mandate. There is a need to add professional skills in the fields of: a) environment; b) transport planning; c) land readjustment and slum upgrading via new cells within the remit of the Chief Town Planner; and (v) ‘community outreach’ and public relations. Clarification is also needed of RAJUK’s role in carrying out physical and site works by defining the resources available for: a) maintenance; b) demolitions; c) contractor support; d) emergency response; and e) other physical works.

347. The invidious discrepancy in employment terms and conditions between revenue budget staff and development budget staff is obviously undesirable in relation to ‘institutional memory’, work continuity and matching potential expertise with assigned tasks. In order to maintain a core complement of reliable field officers, the balance between ‘permanent’ and ‘contract’ staff should be altered to accommodate this. Similarly the issue of the large number of ‘blocked’ and unfilled vacancies limits promotion prospects. This issue needs to be resolved at the earliest possible opportunity.

348. The Policy Note describes the steps needed to formulate a Capacity Building Strategy for HRM based around five key ‘functions’ and associated institutional elements identified as vital to sustainable capacity building systems in city governments. These are: i) oversight function; ii) performance monitoring and evaluation function; iii) clearinghouse function; iv) training management function; and v) training provider function.

349. The Advice Note also provides guidelines and tools for: (i) the preparation of Gender Action Plans; (ii) optimizing the contribution of human resources where there are clear mismatches identified between the task analysis and the person analysis; and (iii) developing job specifications and job descriptions.

16.2.2. Towards a Sustainable Training Programme (Advice Note 3) 350. The range of mandatory training and training opportunities is considered normal and for the tasks officers undertake in their day to day duties. However, transformational change proposed in relation to the mission and operations of RAJUK will require significant training investment.

351. An ambitious training initiative is proposed in the form of a ‘training menu’ rather than a prescribed training programme. The consultants appreciate constraints on implementation. Not all potential beneficiaries can receive training in the first three years of the programme. The menu format anticipates that department heads will select priorities and nominate specific staff to receive training.

352. In view of the very small numbers of urban sector professionals in the Dhaka local governments (both city corporations and pourashavas) and the very limited recruitment anticipated in such agencies in the short- to medium-term future, it is proposed that 15 to 30% of places on all RAJUK courses dealing with generic Dhaka metro-city planning and governance issues are made available to the local

101 The comparison between what exists in RAJUK at present and what is possible is represented by LGED which has 1288 professional engineering posts all which are filled.

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governments. This will enable: a) more specialised courses to be run on a viable basis – thus benefiting RAJUK; and b) access to specialised training for local government employees. The numbers eligible for such training in the local governments is such that the only way they might have access to such training is by joining a significantly larger pool of potential students.

353. A total of 74 separate course modules are proposed comprising complementary training modules in two main training categories. There are 8 courses to address ‘cross-cutting competencies’ with 32 modules and 10 courses 42 modules to address key ‘specialist competencies’ (Box 16.2).

Box 16.2. Proposed Training Modules and Competencies

Cross-cutting’ competencies Training Priorities within RAJUK technical competencies ƒ RAJUK operations planning and organisational ƒ RAJUK Budget and finance management ƒ Support for economic activity through a business- ƒ General administration and legal affairs enabling environment ƒ Human resources management and human ƒ Environmental safeguards and protection resources development ƒ Engineering and construction ƒ Public services delivered by RAJUK – ƒ Urban planning and programming management and quality control ƒ Planning and implementation of DAP development ƒ Public works contracting and public sector plans and policies procurement ƒ Development control functions of RAJUK ƒ Information technologies (ICT) and e-cities ƒ Public utilities and services provision functions of ƒ Public relations RAJUK ƒ Local democracy. ƒ Role and function of RAJUK in Metro-Dhaka Land management.

Training Costs

354. The approximate cost of this programme, based on menu selection and limited by the capacity of the single lecture room available is US$137,000 per annum in the initial years of implementation while a backlog is being addressed. Training provided in RAJUK training suite with in-house and visiting experts costs from Taka 2,000 to Taka 3,000 per person per day. The consultants also note that additional, essential expenditure is required to create an acceptable learning environment. The immediate priority is installation of efficient silent running split-unit air conditioners. Longer-term an annual facilities and equipment budget of, say US$10,000 is necessary to support the programme; this assumes that all lecturers and participants supply their own laptop computers.

16.3. ICT and Technology in the Workplace (Advice Note 4)

355. The value of RAJUK’s current ICT systems is compromised by a lack of integration; low operating budgets and limited utility in relation to access and action by operational staff. The urban management and planning challenges of Metro-Dhaka in the 21st Century can only be met by incorporating smart, lean and open technologies in the task specifications of each and every operational unit in the responsible government agencies. SPRG recommends a short-term strategy to create an ‘enabling environment’, to strengthen the ICT facilities and related infrastructure of the SPRG target agencies, consisting of the following priority actions:

• Develop the ICT applications, data-base systems and networks of all concerned

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government agencies to incorporate specific modules for each multi-component task and in particular the multi-stakeholder consultative tasks managed by relevant offices.102 Application systems should: o Enable complex multi-year, multi-sectoral planning and programming tasks that are difficult and time-consuming to carry out manually and to enable interaction and options testing within the context of such activities. o Support necessary access for all consultees in a multi-stakeholder planning governance environment to enable them: ƒ to interact with the Option Action Consequence (OAC) process for the purposes of decision-making (rejection, conditions, requirements and observations); and ƒ to inform collaborative agency action (decision making and regular operations). o Provide information access at a monitoring level for public services to maintain process integrity, accountability and transparency. o Incorporate task-based learning and correlated, co-temporal HR and ICT process upgrading through ‘learning process’ that continually improve to maintain efficient systems with relevance and currency. Further incorporate ad-hoc and periodic learning ‘events’ and forums.

• More generally, develop administrative and support staff capacity, by improving their knowledge and skills through ICT specific training, and promote ICT literacy and life-long learning using e-learning and awareness programmes.

16.4. Community Outreach Strategy (Advice Note 5)

356. Most effective metro-city planning and development strategies in emerging mega-cities today incorporate: participation and involvement of communities and key stakeholders; ‘ownership’ of plans and development programmes by city residents; engagement with economic drivers, domestic and international investment opportunities; policies and plans which are credible and able to influence behaviour; coherent messages for different audience: vision, plan, prospectus, marketing, urban growth.

357. The objectives of the proposed Community Outreach Strategy is to increase public confidence in the independence, fairness and effectiveness of RAJUK as the principal urban planning and development authority; and: a) increase Dhaka communities’ awareness and understanding of the role, responsibilities and obligations of RAJUK in urban planning and development; b) help inform the community generally about urban planning, development processes and responsible agencies; c) provide information about the operation of planning laws and regulations, development opportunities, housing and investment options; and d) assist with developing the various diverse Dhaka communities’ understanding of alternatives and options in addressing their needs as residents and stakeholders in the future of Dhaka.

358. The Community Outreach Strategy would involve a comprehensive programme of outreach mechanisms and events. In the context of a corporate management structure, it should be incorporated in two ways:

102 For example, inter alia: building and planning control, environmental impact clearance, transport impact clearance, land consolidation, subdivision and title transfers, etc.

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Firstly, as an intrinsic element of strategy, programming and tasking in all departments where the ultimate responsibility lies. Each board member and departmental head must also assume responsibility for the incorporation of outreach in all ‘front office’ functions and development programmes. Secondly, the RAJUK Secretary’s small Public Relations section in the department of the Deputy Director (Board, Public Relations and Protocol) should be rebranded as the ‘Community Outreach and PR Department’. The department would carry on with the PR function, but this role would be subordinated to and contextualised by the outreach function. A small competent staff should suffice on the understanding that this is a coordination function and that the bulk of the outreach work will be carried out by the sectoral departments concerned. The new RAJUK local area offices can provide the perfect platform to deliver this new service to city residents. A small unit should be incorporated in each area office to coordinate the activity.

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.

17. IMPLEMENTATION AND PRIORITIES

17.1.1. Implementation of Proposals 359. This study has made numerous proposals. It is evident that they cannot all be implemented at the same time. Table 17.1 therefore includes a broad grouping of the proposals into three indicative time frames for implementation:

• Immediate: 2013-2014. • Short-term: 2015-2017. • Medium-term: 2018-2021 (selected as end date for consistency with Vision 2021.

360. The following should be noted:

• Only the most important proposals are listed; some have also been grouped. • Proposals have been allocated to time frames based on: o the Study Team’s assessment of how easy they will be to implement o their importance in contributing significantly to rapidly to tackling Dhaka’s problems o Whether or not they require legislation. o Whether or not they will require new legislation.

• Although proposals have been discussed with RAJUK and relevant departments, many will require GOB ministerial concurrence. It is thus considered unrealistic to propose a more detailed implementation programme at this stage.

17.1.2. SRPG Priorities 361. Table 17.1 contains a substantial number of proposals identified for immediate implementation. This is an ambitious list and it is unrealistic to assume that they can all be implemented ‘in one go’. It is therefore important to identify what are considered to be the absolute priorities for early implementation.

362. As a necessary first step, the following actions should be undertaken:

• RAJUK should proceed with its currently proposed RAJUK re-structuring proposals including establishment of zonal offices. This is a crucial to: (i) strengthen RAJUK and improve delivery of urban planning services across the entire DMDP area. • RAJUK and MPHW should review the SRPG proposals in order to identify those which are acceptable and where implementation can start with a minimum of delay.

363. In identifying the priority actions which should be implemented as soon as possible, the priorities shown in Table 17.2 should be given the most urgent consideration. They have been selected based on the following criteria;

• They will demonstrate RAJUk’s commitment to: (i) increasing the accountability and transparency of its operations; and (ii) its commitment to fulfilling its mandate in terms of the entire DMDP area and not just its land development projects. • They will make a demonstrable contribution to addressing some of Dhaka’s urban challenges.

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• They will promote inter-agency co-ordination and co-operation. • They do not require new legislation and thus, given the necessary political commitment, they could be implemented in a short space of time. • They do not have significant financial implications.

Table 17.1. Implementation of Proposals – Indicative Phasing

Time Frame Proposals ƒ Upgrading of position of RAJUK chairman. Immediate: ƒ RAJUK issues commitment to: (i) put renewed effort into fulfilling its mandate for the 2013-2014 DMDP area as a whole; (ii) to become more transparent in its operations and decision-making; (iii) to adhere to existing DAPs; (iv) to adhere to provisions of environmental legislation (Tables 12.7, 12.8, 14.3) ƒ Introduction of measures to improve RAJUK’s openness and accountability (Table 12.7). ƒ Reconstitution of TDC to act as oversight committee for RAJUK’s board (Chapter 13). ƒ Introduction of effective consultation procedures for proposals involving compulsory land acquisition (Table 12.4). ƒ Establishment of committees/ working groups referred to in Table 15.6. ƒ Initiation of organisational development and capacity building activities including reform of accounting practices (Chapter 14.2). ƒ Inclusion of allocations for poor and low income households in all new RAJUK schemes. ƒ Other priority actions listed in Table 17.2 below. ƒ Initiation of process to transfer local planning services to LGUs (Table 15.1). Short-term: ƒ Enactment of TI(A)A (Chapter 13) 2015-2017 ƒ Reconstitution of RAJUK’s Board (Table 12.6). ƒ Preparation of regional economic development plan (Table 14.1). ƒ Preparation of rolling 3-5 year transport development programmes and budgets by DTCA in conjunction with agencies involved in transport development in DMR. ƒ Introduction of democratic oversight to Metropolitan Development Committee (Table 15.4). ƒ Appointment of committee to review options for MDA and propose implementation time-scale. ƒ Continuation of organisational development and capacity building activities. ƒ Completion of transfer of local planning services to LGU (Table 15.1). Medium- ƒ Implementation of legislative provisions contained in TI(A)A , especially those relating term: 2018- to slum areas and poor households (Table 12.3, Chapter 13). 2021 ƒ Establishment of MDA and other institutional restructuring (Chapter 15). ƒ Completion of organisational development and capacity building activities. NB. Where Table references are provided, proposals will generally need to be implemented in stages.

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Table 17.2. SRPG Priority Actions

# Priority Rationale 1 Establish Advisory Committee to provide oversight ƒ Necessary first step to rebuilding confidence and public for RAJUK activities trust in RAJUK 2 Establish a timetable for implementation of TI(A)A ƒ The TI(A)A is crucial to strengthening the currently deficient via an expert working group mandated to produce urban planning system and giving RAJUK the powers it a report and recommendations within 3 months. needs to fulfill its mandate as planning authority for the entire Dhaka Metropolitan Region. 3 Enter into discussions with DOE to: (i) ensure ƒ Dhaka’s environment is a critical issue. Environmental compliance with environmental legislation; (ii) issues and legislation requirements must be mainstreamed integrate LUC and ECC approval procedures; and into RAJUK’s decision-making process. (iii) develop co-ordinated approach to enforcement ƒ Integrated LUC and ECC procedures will provide a more operations. effective development control process. ƒ Co-ordinated enforcement will: (i) strengthen the process and send a strong signal to potential contraveners. 4 Planning Commission to convene annual forum to ƒ Will lead to improved inter-agency co-ordination and co- integrate and co-ordinate major proposals for operation as well as build trust and knowledge-sharing. DMR. ƒ Will reduce implementation bottlenecks and facilitate . 5 Ensure that DMDP review includes assessment of ƒ Dhaka’s economy is crucial to its future sustainable economic development issues. development. 6 Commission feasibility study to: i) investigate ƒ Increasing finance for infrastructure and housing in the options for increasing RAJUK income; and ii) DMR is essential and RAJUK, unlike other agencies has potential for allocating funds from existing the potential to do this. resources to new infrastructure projects. 7 Establish arbitration committee to resolve backlog ƒ The backlog of court cases creates uncertainty for of over-hanging land development court cases developers, jeopardizes the integrity of planning processes, and overloads the judicial system. 8 Establish Action Team to revise DAP for Eastern ƒ The continuous illegal filling and development of low lying Fringe through mediated resolution of major areas in the eastern fringe is prejudicing the area’s planning contraventions, and safeguarding of road importance as a flood retention area for the city. network ROWs and flood retention areas. ƒ Safeguarded ROWs for primary and secondary roads are AND THEN: vital if urban expansion is to be managed in a sustainable

In collaboration with DTCA, RHD, LGRD develop way. procedures for safeguarding of Right of Ways for ƒ Developers and land owners need certainty over where roads (primary / secondary) and other trunk they can and cannot develop. infrastructure, and implement.

9 Preparation, by inter-agency cell, of action plan for ƒ Important as they are, major integrated development managed urbanisation for fast-growing projects, e.g. Purbachal, cannot provide the sole answer to development area (land re-adjustment, road Dhaka’s future urban growth. There has to be a process of safeguarding, community involvement, financing managed urban growth in fast growing peripheral areas plans, etc). involving partnerships with developers and land owners. 10 Initiate organizational development/ capacity ƒ Strengthening of RAJUK’s management and technical building programme for RAJUK including capabilities is essential for implementation of SRPG secondments between RAJUK, DTCA, and DOE . proposals and achieving a sustainable growth trajectory for Dhaka.

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18. CONCLUDING COMMENTS

364. Dhaka arguably faces the most extreme combination of urban problems of any mega-city – acute shortage of developable land, very high densities, high flooding risks, rapidly decreasing groundwater levels, chaotic transportation, low levels of infrastructure and open space. Dhaka is far less well placed to cope with climate change and the extreme weather events that have affected New Orleans, Bangkok and Japan.

365. This Report has presented a wide range of proposals to address these problems through strengthened regional planning and governance based around five key objectives:

st • Creating a planning system fit for a 21 century developing country mega-city. • Strengthening RAJUK so that it can better fulfil its mandate. • Increasing the accountability, transparency and oversight of RAJUK’s operations. • Increasing the finance available for infrastructure • Enhancing inter-agency co-ordination and c-operation. • Upgrading the technical and managerial capacities of RAJUK and sectoral agencies.

366. Major institutional re-structuring in the short term is highly unlikely to be the panacea that some might think. Redefining RAJUK’s role will be a lengthy and controversial process, not least because new institutional arrangements would need to be made for functions removed from RAJUK’s authority. The same would be true for the establishment of a full, integrated and democratically-governed Metropolitan Development Authority - although this will be essential in the longer term as Bangladesh seeks to achieve its Vision 2021. And, in both cases, the replacement institutions would be subject to the same problems that RAJUK, and other GOB agencies, now confront - susceptibility to ‘outside influence’, inadequate manpower resources, weak legislation.

367. In consequence, recommending either of these options for short term implementation would run a high risk of creating a policy vacuum and a protracted delay in implementing other SRPG proposals. Uncertainty and inaction are exactly what is not needed. Dhaka is vital to the future development of the country but its current situation is critical. Action must be taken now.

368. Instead, the Study Team strongly believes that the emphasis should be on supporting and reinforcing RAJUK’s current efforts to increase the effectiveness of its operations through: (i) updated planning legislation; (ii) greater decision-making and financial autonomy; (iii) organisational development and capacity building programmes. At the same time, every effort needs to be made to creating a new climate of inter-agency co-operation and co-ordination – some proposals can be implemented by RAJUK acting on its own, but many will need the support and involvement of other government agencies.

369. But if RAJUK is to retain its position as the primary agency responsible for the development of Dhaka, it has to: (i) become more accountable in its operations; (ii) accept outside oversight of its policy- and decision-making; (iii) consult meaningfully with, and address the concerns of, those adversely by its projects and planning decisions; (iv) commit itself to making much greater effort to address the needs of the entire DMR population, rich and poor alike, and not just concentrate on its land development projects. Only if RAJUK takes action on these fronts, can it hope to reduce the level of criticism directed

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against and thereby regain the trust and confidence of the civil society, other agencies and the private sector.

370. No one doubts the immensity of the task ahead. But we strongly believe that the proposals contained in this report can form a basis for meaningful change and progress towards more sustainable urban development for Dhaka. But if this report is not to gather dust like so many others, there has to be a clear, strong and sustained commitment on the part of GOB to address Dhaka’s manifest problems. If this support is provided, along with strong leadership, we believe that much could be achieved within a relatively short time span to increase the sustainability of Dhaka’s urban growth.

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ANNEX A: CONSULTATIONS HELD

Dhaka Consultations Nb. This table excludes consultees attending workshops and group discussions.

Institution Persons Met/ Positions Asian Development Bank Ms. T Kho, Bangladesh Country Representative. Mr Rafiqul Islam, Project Officer. Bangladesh Bridge Authority (BBA) Meeting held Bangladesh Environmental Ms. Rezwana Hasan, Chief Executive of BELA Lawyers’ Association (BELA) Bangladesh Garments Meeting held Manufacturers Organisation Bangladesh Inland Water Transport Mahmud Hassan Salim, Director (Planning) Authority (BIWTA)/ Ministry of Shipping Bangladesh Railways Md. Ferdous Alam, Additional Director General, M&CP Bangladesh University of Ms. Ishrat Islam, Associate Professor of BUET Engineering and Technology Dr Sarwar, Professor, Urban and Regional Planning Institute (BUET)* Bangladesh Water Development Mr. Salim Bhuiya, Chief of Planning Cell of Bangladesh Water Board Development Board(BWDB). Board of Investment Meeting held Consultants involved with DAP Several who attended group discussion with Bangladesh Institute of Planners. Also members of DAP Review Committee. Centre for Urban Studies Professor Nazrul Islam Dr S.A. Shafie Professor Dr. Amirul Islam Chowdhury, former Vice Chancellor, Jahangirnagar University (CUS council member) Mr. Shaukot Ali khan, Urban Planner, Member CUS (former RAJUK, chief planner and Project Director DMDP). Dhaka City Corporation (DCC)* Mr. Shirajul Islam, Chief Town Planner Mr Mohammad Shamsuzzaman, Joint Secretary Mr Dilbahar Ahmed, Town Planner Dr. Tarique Bin Yousuf, Executive Engineer Planning and Design Dhaka Chamber of Commerce and Asif Ibrahim - President Industry (DCCI) Khairul Mahumd - Director and Managing Director, Caldwell Development Haider Khan - senior vice president Salim Khan Chairman and president of Asset Developments Ferdaus Begum - Research Director Dhaka Transport Coordination Dr. S M Salehuddin, Executive Director Board (DTCA) Dhashkin Khan Union Council Mr Mohammed Tofazzul Hussain, Chairman and a number of Members of the Council including Women Members

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Institution Persons Met/ Positions Department of the Environment Md. Shahjahan, Director-Environment Clearance, Department of (DoE) Environment (DoE) Dr. Sultan Ahmed, Director, Natural Resources Management. Mr. Showpon Kumar, Air Quality Management Officer Mr. Solaiman Haider, Deputy Director Mr. Mahbubur Rahman, Consultant, Sustainable Land Management Project (SLMP), Dr. Sohrab Ali, Deputy Director, DOE. Journalists specialising in land and Mr. Shahjahan Mojumder News Editor the Daily New Nation (writes environmental issues on urban issues). Iqbal Sobahan Chowdhury, Senior Journalist and Columnist, President, Bangladesh Federal Journalist Union Mr. Shohiduzzaman Khan (Specializes in Urban Development), News Editor, Financial Express. Law Commission Meeting held Local Government Engineering Director. Department(LGED)* Chief Engineer Project Director, Municipal Services Project Ministry of Commerce: Export Meeting held Processing Zones (EPZs) Ministry of Finance Director, Monitoring Cell Ministry of Housing and Public Secretary Works (MHPW) Mr Zillar Rahman, Additional Secretary (involved in RAJUK plot and apartment allocations) Ministry of Industries: Bangladesh Joint secretary Small and Cottage Industries SME Department, Dept. of Industry Corporation Ministry of Law and Justice Mr. Abdul Majid District & Sessions Judge, Dhaka Advocate Fakir Delwar Hossain, Government Pleader, Ministry of Law and Justice. Mr. Mizaur Rahman, Addl. Public Prosecutor Municipal Services Project (World Ian Munt, consultant Bank) National Housing Authority, MHPW Director Planning Commission Meetings held. Private individuals RAJUK plot purchaser: Muhammed Zafor, Pro Vice Chancellor’ Royal University (former D.G., Ministry of Foreign Affairs Eminent businessman and transport activist: Mr. Abdul Haque, former president of Japan Bangladesh Chamber of Commerce. Concerned private citizen: Mrs. Kiswar Sultana, Rtd. senior Scientific Officer, Jute Research Institute Architect Planner Abdus Salam, Former Chief Architect, GOB Syed Mokaddas Ali ,Chief Editor ‘Lawyers & Jurists. Mr. K.M Zabir Secretary General, Association of Professionals Syed Mahbubar Rahman Advocate on Record ,Appellate Div.

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Institution Persons Met/ Positions RAJUK (Senior Management and Eng. M. Nurul Huda, Chairman. (Additional Secretary) Planning) Mr Mohammad Mustafa, Secretary Mr Nazmul Hai, Member (Administration and Land), (Joint Secretary) Mr Akhtar Hussain Bhuiyan, Member (Estate). (Joint Secretary) Mr. M A Mannan, Member (Planning and Joint Secretary) Dr. Zahirul Huq, Chief Town Planner, Development Control Mr Sirajul Islam, Deputy Town Planner Mr. Mohammed Golam Mustafa Director, Development Control ( Deputy Secretary) Mr Kamrul Hasan Suhag, Asst Town Planner Mr Mohammed Hasibul Kabir, Asstt. Town Planner Mr. Hasibul Kabir, Assistant Town Planner Mr. Shahnewaz Khan Chandan, Asstt Town Planner (Plan Preparation) Mr. Ashraf Ali Akahnd, Deputy Director Mr. Feroz Hossain, Senior Building Inspector RAJUK Engineering, Architecture Mr. Khondakar Salauddin, Chief Engineer, Development Wing and Other Relevant Technical Engr. Mohammed Muzaffar Uddin, Executive Engineer and Project Support Manager, Uttara Apartment Project Mr. M Emdadul Islam, Chief Engineer and Project Director Uttara Apartment Project Raihanul Ferdous, Superintending Engineer, Project and Design RAJUK Finance (including Mr Anwarul Islam Sikdar, Member (Finance). (Joint Secretary) establishment) Mr. Md Abu Kauser Mallik, Deputy Director (Accounts) Ms Eva Nahar, Director, Finance and Budget Mr Nadimul Alam, Asstt Director, Audit Internal Kazi M Mahbubul Huq, Head MIS Director Audit Mr Prasantha Kumar Das. RAJUK Legal Md. Rokon ud Doula Deputy Secterary GoB & RAJUK Magistrate Md. Shohidul Islam Bhuiyan, RAJUK magistrate Advocate Hafizul Islam, RAJUK Panel Lawyer Real Estate and Housing Md Shamsul Islam, administrative officer, Association of Bangladesh EngAnisuzzmanBhuijanRana (ABR), member of the Executive (REHAB) Council and developer. REHAB lawyer Mr. Ehtashamul Haque, Managing Director Tajmohal Abashan Limited and REHAB member Roads and Highways Department Syed Shahidun Nabi, Superintending Engineer (RHD), MOC Small and Medium Enterprise Meeting held (SME) Industry Foundation Tongi Pourashava (Tongi Mr Mohammed Ismail, Chief Executive Officer Municipality) Mr Mohammed Khairul Islam, Superintending Engineer Mr. Moinul Islam, Town Planner Dhaka Electricity Company Mr. Shajahan Siddique Chairman DESCO (DESCO) Urban Development Directorate, Mr Abul Hasnath Fuad, Director MHPW Dr Engg. K Z Hussain Taufique Deputy Director + several other professional staff.

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Consultations in Other Cities

City Consultees Main Topics Discussed

- Khulna Development Authority (KDA). - Key issues/ problems facing DAs and CCs.

Khulna ‐ Khulna Chamber of Commerce and - Current activities Industry (KCCI). - Co-ordination/ co-operation between ‐ Khulna City Corporation (KCC). agencies.

‐ Rajshahi Development Authority (RDA).

Rajshahi ‐ Rajshahi City Corporation (RCC): discussions with Chief Engineer and senior staff; meeting with Mayor. As for Khulna

- Department of Environment: - Current activities and perceptions of CDA operations and concern for the environment. Interview with Director. - Urban governance and planning issues. - Evening discussion with NGOs and academics. Chittagong ‐ Chittagong Development Authority (director and senior staff)

‐ Chittagong CCI, senior vice president.

‐ City Corporation: Chief Engineer and planning department. As for Khulna

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ANNEX B: SRPG REFERENCES

Reference Materials – Metropolitan Dhaka

1. City Cluster Economic Development in Bangladesh: Dhaka Capital Region, Centre for Urban Studies (CUS) Dhaka in association with Strategic Planning and Management Services (Australia), Asian Development Bank, 2010 2. C.L. Coguill (2009) Building for a Better Dhaka: Policies for Housing and Infrastructure Development in S.U. Ahmed, Dhaka, Past, Present and Future, Dhaka, Asiatic Society of Bangladesh 3. Dhaka City Management Reform Pilot Project, Bangladesh Centre for Advanced Studies and the Bangladesh Rural Advancement Committee, Asian Development Bank, Report on Final Workshop, 1998 4. Dhaka Regional Development Plan 2016-2035, Plan Preparation, Terms of Reference, Asian Development Bank, issued September 2011 5. Dhaka, Improving Living Conditions for the Urban Poor, Report No. 35824 – BD, June 2007 6. Gender Equality Results - Case Studies: Bangladesh - Urban Governance and Infrastructure Improvement (Sector) Project (UGIIP), Asian Development Bank, 2010 7. Getting Governance to Work, newspaper article, Mahmudur Rahman, University of Dhakar, undated circa 2009 8. Making Dhaka Livable (through improved city governance), Sadiq Ahmed, Forum Daily Star Volume 3 Issue 3, 2010 9. Managing Megacities: A Case Study of Metropolitan Regional Governance for Dhaka, PhD thesis ISDP Murdoch University, Sirajul Haq Talukder, January 2006 10. Preparation of Detailed Area Plan, Kamrangirchar Area (Location–2), Final Plan Report, Government of the People’s Republic of Bangladesh, Ministry of Housing and Public Works, Rajdhani Unnayan Kartripakkha (RAJUK), May 2010 11. Project Administration Manual (PAM), Project Number: 39298 Bangladesh: City Region Development Project, Asian Development Bank, October 2010 12. Proposed Loan People’s Republic of Bangladesh: Second Urban Governance and Infrastructure Improvement (Sector) Project, RRP, Asian Development Bank, October 2008 13. RAJUK, 2012, Annual Report, 2010-2011 14. RAJUK's litany of failures, A Question of Governance, Editorial, Daily Star, November 11, 2010 15. Second Local Governance Support Project (LGSP-II), Management and Information System for Bangladesh Local Governments, Call for Expressions of Interest, World Bank, 2011 16. Strategic Transport Plan for Dhaka. Lewis Berger Group/ Bangladesh Consultants Ltd., 2005 for DTCB, Government of Bangladesh 17. Study for Institutional Strengthening and Capacity Enhancement of Transport Related Agencies (SISCETRA) Final Report Volume 2, DTCA, June 2011. 18. Sustainable Urban Transport, Dhaka and Kathmandu Case Studies, ADB TA6350-REG, Urban Development Specialist Back to Office Report (Dhaka), September 2007 19. Ibid., Final Report, Executive Summary, Presentations. 20. Terms of Reference for Consultancy Services, TA 7641 – BAN: Strengthening Regional Planning and Governance, (SRPG), Asian Development Bank and Government of Bangladesh, Final Draft- Full TOR-SRPG January 2011 21. Town Planning for Bangladesh: Vision 2020, World Town Planning Day, Md. Musleh Uddin Hasan, 2008 22. Town Planning and the Political Culture in Bangladesh, G. Rahman 23. Transparency and redistributive urban politics in Dhaka, Academic Paper, Saleh Ahmed, 2011

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Laws and Regulations

24. Chittagong Development Authority Ordinance 1959 25. Dhaka Metropolitan Building Construction Rules 2007 26. Environmental Conservation Act 1995 27. Khulna Development Authority Ordinance 1961 28. Proposed Bangladesh Development Planning Management Act 1997, Md. Shaukot Ali Khan (1996), Nagario Prokoton. 29. Rajshahi Development Authority Ordinance 1976 30. Town Improvement Act 1953 as amended 31. Urban and Regional Planning and Management Act, 2012 (draft)

Other Legislation-related Documents

32. Dr. Mohsin Uddin Ahmed (nd) Law of Urban Development in Bangladesh: a critical study with special reference to Khulna Master Plan, Khulna University, Khulna 33. A.K.M Kamaluddin Choudhury (2008) (Rev 2nd Ed) Land Use Planning in Bangladesh, Dhaka, AH Development Publishing House 34. Adil Mohammed Khan and Md. Akter Mahmud (2008) FAR as a Development Control Tool: A New Growth Management Technique for Dhaka City, 6 Jahangirnagar Planning Review, 49 – 56 35. Golam Rahman (2008) Town Planning and the Political Culture of Planning in Bangladesh, Dhaka, A H Development Publishing House 36. Hon. Justice Mainur Reza Chowdhury Chief Justice of Bangladesh (nd, prob 2003) Legal and Institutional Framework Promoting Environmental Management in Bangladesh 37. Kasphia Nahrin (2008) Violation of Land Use Plan and Its Impact on Community Life in Dhaka City 6 Jahangirnagar Planning Review 39 – 47 38. Mahbubur Rahman (nd) Building Construction Rules – Search for an Accountable, Sustainable and Participatory Environment 39. Corruption in Plan Permission Process in RAJUK: A Study of Violations and Proposals, Md. Akter Mahmud, Department of URP Jahangirnagar University, Transparency International, August 2007 40. Patrick McAuslan (2003) Land tenure, the urban poor and the law in Bangladesh: implementing the Habitat Agenda in Bringing the Law Back In: Land, Law and Development, Chap. 11, Aldershot, Ashgate. 41. Patrick McAuslan, 1992, Legal Arrangements for the Improved Administration of Land Development, (1992) 13 Regional Development Dialogue, United Nations Centre for Regional Development, Nagoya, Japan 42. Salma A. Shafi, (2010) Keynote Paper on National Building Code and Its Implementation Round Table Discussion on Implementation of National Building Code 43. Salma Shafi and Geoff Payne (2007) Land Tenure Security and Land Administration in Bangladesh, Final Report, Local Partnerships for Urban Poverty Alleviation, LGED, UNDP and UN-Habitat, Project BGD/98/006 44. Baker J., 2007, Dhaka: Improving Living Conditions for the Urban Poor, Washington, World Bank 45. A.K.M Kamaluddin Choudhury (2008) (Rev 2nd Ed) Land Use Planning in Bangladesh, Dhaka, AH Development Publishing House 46. Shirley Ballaney (2008), The Town Planning Mechanism in Gujarat, India, Washington DC, The World Bank Institute

Other Reference Materials – Bangladesh excluding Dhaka

47. Adapting to Climate Change - Strengthening the Climate Resilience of the Water Sector Infrastructure in Khulna, Bangladesh, Asian Development Bank, 2011

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48. ADB Country Operations Business Plan, Bangladesh 2011–2013, Asian Development Bank, July 2010 49. ADB, 2007, UGIIP, Project Performance Report (PPR), Manila 50. Asian Development Bank and Bangladesh Fact Sheet, Asian Development Bank, December 2010 51. Asian Development Bank Outlook, 2011 Update, Preparing for Demographic Transition, Mohammad Zahid Hossain, Shamsur Rahman, Md. GolamMortaza, and Barun K. Dey of the Bangladesh Resident Mission, Dhaka, Asian Development Bank, 2011 52. Bangladesh Bureau of Statistics (BBS), Statistical Yearbook of Bangladesh, various years, Dhaka 53. Ibid., 2007, Register of Establishment, Size: TPE 10+, (Updated Up to December, 2005), Sector: Manufacturing Dhaka 54. Ibid., 2005, Economic Census 2001 & 2003, Dhaka 55. Centre for Urban Studies et al., 2006, Bastees (slums) in Bangladesh Cities - A Mapping Study of Slums In Six City Corporations, Dhaka 56. Dewan, A. M., Yamaguchi & Yasushi. 2009. Land use and land cover change in Greater Dhaka, Bangladesh: Using remote sensing to promote sustainable urbanization; Applied Geography, 29: 390-401 57. Ibid., 2010, Dynamics of Land Use/Cover Change and Analysis of Landscape Fragmentation in Dhaka Metropolitan, Bangladesh, .GeoJournal 58. GOB, 2008, Bangladesh Economic Review 2007. Dhaka: Ministry of Finance 59. GOB, 2008, The National Strategy for Accelerated Poverty Reduction - 2 (NSAPR-2) and Budgeting 60. GOB/ Planning Commission, 2010, Outline Perspective Plan of Bangladesh, 2010-2021: Making Vision 2021 a Reality 61. National Urban Sector Policy (Draft) Government of Bangladesh, Ministry of Local Government and Cooperatives, Local Government Division, Committee on Urban Local Governments, September 2006 62. Country Assistance Strategy for the People’s Republic of Bangladesh for the Period FY11-14, Report No. 54615- BD, World Bank, July 2010 63. Development Role of the Local Governance Institutions in Bangladesh, Nepalese Journal of Public Policy and Governance, Vol. xxiv No.1, Mohammed Asaduzzaman, July 2009 64. Enterprise Surveys: Bangladesh Country Profile, IFC/ World Bank, 2007 65. Gender Action Plans and Gender Equality Results, Rapid Gender Assessments of ADB Projects, Synthesis Report, Juliet Hunt, Shireen Lateef, Helen T. Thomas, Gender, Social Development, and Civil Society Division, Regional and Sustainable Development Department, Asian Development Bank, September 2007 66. Gender Mainstreaming at the Bangladesh Resident Mission: Why Has It Worked, ADB Web-site News Feature, Asian Development Bank, March 2009 67. Impact Stories from Bangladesh, a Portrait of Development, Asian Development Bank, Undated, circa 2010 68. Institutionalizing Gender Equality at ADB: The Experience of the Bangladesh Resident Mission Knowledge Showcases, Francesco Tornieri, Asian Development Bank, March 2009 69. International Finance Corporation, 2007, Enterprise Surveys: Bangladesh Country Profile, http://enterprisesurveys.org/Data/ExploreEconomies/2007/bangladesh 70. Mujeri, M. K. (2004) Change in Policy Framework and Total Factor Productivity Growth in Bangladesh The Bangladesh Development Studies. Dhaka: The Bangladesh Institute of Development Studies. 71. Mahmud A. for Transparency International, 2007, Corruption in Planning Permission Process of RAJUK hindered Planned Development of Dhaka City, Dhaka 72. Policy Research Working Paper 4404, Changing Norms about Gender Inequality in Education: Evidence from Bangladesh, Niels-Hugo Blunch Maitreyi Bordia Das for the World Bank South Asia Region, Sustainable Development Department, November 2007

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73. Fahria Masum, (2010) Improving governance for fringe land development and management, 46th ISOCARP Congress Nairobi, Kenya 74. N Banks, M. Roy, and D. Hulme (2011) Neglecting the urban poor in Bangladesh: research, policy and action in the context of climate change, University of Manchester Brooks World Poverty Institute BWPI Working Paper 144 75. Kh. Md. Nahiduzzaman, Axel Baudouin and Md. Musleh Uddin Hasan (2006) The Myth and Reality of Housing the Poor through Public Participation in Dhaka, 45th Annual Meeting of the Western Regional Science Association, Santa Fé (USA) Acta Geographica - Trondheim 76. Golam Rahman, Deanna Alam and Sirajul Islam (2008), City Growth with Urban Sprawl and Problems of Management, 44th ISOCARP Congress 77. Rahman H. Z, ed./ Power and Participation Research Centre (PPRC), 2009, Urban Bangladesh: Challenges of Transition, Dhaka 78. N. Islam and Md Mohabbat Khan (eds) (1997) Urban Governance in Bangladesh and Pakistan, Dhaka, CUS 79. Impact of Climate Change on the Livelihood of the Urban Poor: A case of Dhaka City, Abu Nayeem Md. Maruf Khan. 2010 80. World Bank. (2007). Bangladesh: Strategy for Sustained Growth. Dhaka: World Bank

Organisational Development – Supporting Technical Documents

81. A Guide for Designing Effective Human Settlements Training Programmes, UNCHS, 1992 82. A Review of Strategic Management in Local Government, Technology One, White Paper for UK Government, June 2010 83. Accreditation and Certification, SCBD HRM/HRD Guideline 6, ODS for ADB and Government of Indonesia, 2004 84. Capacity Building Action Plan (CB-AP) Manual, ODS for ADB and Government of Indonesia, 2003 85. Capacity building for better cities, DPU News, Journal of the Development Planning Unit, University College London Patrick Wakely, University College London, 1997 86. Capacity Building for Better Cities, World Urban Forum, UN Habitat, Capacity Building for Case Study Outline concerning ADB Loan No.1964-INO ‘Sustainable Capacity Building for Decentralization’ (SCBD), ODS for ADB and Government of Indonesia, 2006 87. Capacity Building in Urban Infrastructure Management, Final Report Career Mapping System (CMS) Project, ODS for ADB and Government of Indonesia, April 1998 88. Capacity Development / Capacity Assessment: a Training Guide, UNDP, 2011 89. Capacity Development in South Asia, Occasional Paper No. 1, Martin Evans, Asian Development Bank, 2007 90. Council of Europe – Capacity Building Toolkit, Directorate of Co-operation for Local and Regional Democracy, 2005 91. Defining and Measuring Capacity Development Results, UNDP, July 2010 92. Delivering through people, The Local Government Workforce Strategy, LGA Group for UK Government, 2010 93. Designing Human Settlements, Training in Asian Countries, Volume 2: Trainer's Tool Kit, UNCHS, 1992 94. Facilitated Self-assessments to establish Local Governments’ Capacity Building Needs, SCBD Technical Working Paper No.1, ODS for ADB and Government of Indonesia, 2003 95. Faster, Fitter, More Flexible: Chief Executives’ Developing Councils of The Future, Improvement and Development Agency For Local Government, 20O8 96. From Management Ideas to Practice: Why and How New Versions of Management Practices Emerge: Research Agenda, Aminu Mamman, University of Manchester, Institute for Development Policy and Management, May 2007 97. Gender Action Plan (GAP) Introduction and Guidelines, SCBD Technical Working Paper No.3, ODS for ADB and Government of Indonesia, 2004

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