THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN

- Final Report -

2007. 05

KOICA

In Egypt, 96% of the entire territory is desert, and most of the population is concentrated in the remaining 4%. However, rapid increase in population and urban concentration have caused imbalance between demand and supply of land development. Consequently, unplanned development has been spreading rapidly in the form of informal settlements through illegal land development and farmland conversion. Recognizing this problem, the Egyptian government asked Korea, which has an experience of successfully solving similar land problems in a short period in the recent past, for assistance regarding land policy, urban planning, and policy evaluation and observation capacity. Accordingly, under the control of the Korea International Cooperation Agency, the Korea Research Institute for Human Settlements launched a joint research project with the General Organization for Physical Planning (GOPP) of Egypt. The original project period was 18 months from July 2005 to January 2007 while it took a total of 20 months until March 2007; it was extended by two months with the request from the Egyptian counterpart. Throughout the research project, we endeavored to actively meet the requirements of the Egyptian government from the stage of prior investigation. The official title of the project is 'THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT'. Various methods were utilized for the research including literature review, onsite investigation of the project areas in Egypt, surveys, case studies of Korea and other countries, education for the GOPP officials in Korea, and meetings and workshops in Egypt. Most of all, we put high priority on close collaboration with the Egyptian counterpart throughout the project. According to the task instructions of the project, the objectives of the project and major contents of the research can be illustrated as follows; First of all, the study presents major policy implications by comparing systems of Korea with those of Egypt. Based on this, it reviews the current status of land development, and problems and issues of the two project areas, for which a development model of existing towns, and new towns will be suggested in the study. Then, it suggests a development model of existing towns, and new towns that Korean methods of land development are applied to. At the same time, it provides directions to improving general tools for urban management such as a monitoring system using relevant urban indicators, so that this development model can

Ⅰ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

be applied nationwide. Major policy implications and improvements to be provided in the research project can be described as follows: First of all, the comparison of systems of Korea and Egypt shows that Egypt is required to improve its system in the three sectors of spatial planning, development permit and land development. To be specific, the spatial planning system needs restructuring so that local governments can set up plans on their own. Efforts are required to reinforce their planning capacity. In regard of development permit, the central government should provide a set of national guidelines on development permit, and at the same time, it should establish regional guidelines by considering regional specialty in order to help local governments conduct the development permit task. The land development system of Egypt is divided into existing town development and new town development. In regard of existing town development, institutional tools are required to secure financial resources required for the development, and reduce opposition following resident relocation. In this respect, existing town development should be more actively promoted by applying the land readjustment project of Korea in place of current public development. In addition, in regard of new town development, measures are required to have the New Urban Communities Authority (NUCA) recapture development gains and use the resources to build area-wide transportation facilities and rental housing for low-income class. Models for each of the project areas have been suggested after applying Korea's methods for existing town development and new town development that are suited for Egyptian circumstances, based on the comparison of systems of Korea and Egypt. According to the results, for existing town development, it is recommendable to adopt methods for land titles conversion and compensation, and measures to relocate residents by introducing land development methods such as land exchange and land expropriation. This is expected to practically solve problems with existing town development in Egypt. For new town development, by applying a public-led project for land preparation, and through development gains recapturing based on high-rise high density development, the study suggests solutions to a vacancy factor and housing shortage problem. Lastly, a monitoring system based on urban indicators is an essential urban management system for developing countries like Egypt in which unplanned development is severe. The monitoring system and urban indicators are estimated to be utilized as a crucial set of criteria that will assess the setting up, implementation and achievements of urban and land policies

Ⅱ in the future. In this vein, the research has suggested several policy alternatives as follows: establishment of strategies for gradual operation of urban indicators taking into account urban development stages; land registration system operation, and organized data collection system construction; and integration of the concept of indicators related to unplanned development and unified urban indicator management authority operation.

Ⅲ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

1) Comparative study for urban planning and land development system between Korea and Egypt

□ Comparative analysis ◦ History of land development and concept of land ownership - The direction of land policies was changed to increase private land ownership and agricultural productivity - The Korean law is close to the Continental law(absolute land ownership), while the Egyptian law is close to the Anglo-American system(relative land ownership) because of Egypt’s colonial past and subsequent moves toward Socialism. Therefore, Egypt does not recognize private land ownership as an absolute right. ◦ Political and administrative framework for urban planning and land development - The political and administrative systems in Egypt are more centralized compared to Korea’s. As a result, the dual, top-down decision-making process is commonplace in Egyptian administration for its historical antecedents. - There are many institutions and organizations involved in land development and some government agencies that play an important role in land management in Egypt, but the complex organization of the land development system creates problems of ambiguity in the roles of each organization and poor cooperation among them. - Moreover, such central organizations that have authority modify local development projects in ways that are insensitive to local development demands. - Since Egypt has a tradition of a strong presidential system, the role of the public council is also limited. The central government makes decisions on major plans, budgets, and regulations, while local governments are in charge of public finance, district plans, and enforcement of the plans. This causes inconsistency between plans and implementation. ◦ System of urban planning and development - The urban planning system in Egypt is modeled after the English Town and Country Planning, a planning system composed of a structure plan, general plan, and detailed plan. - These plans were used to pursue the development of farmland, redevelop old urban areas, develop satellite cities, and construct corridors that connect new towns and cities.

Ⅳ - A strategic plan modeled after the growth management system of Western countries, integrated urban development has been set recently, but this system do not fit Egyptian urban conditions. ◦ Urban land supply system and land development methods - In Egypt, land for new development and housing is supplied by three sectors: public sector, private sector, and informal sector. - The first step in land supply by public organizations is the expropriation of land according to a development plan. After a land use plan is established, the land in the designated site is divided for sale. Local governments provide public services, such as water and sewerage, roads. - The private sector usually supplies lands in downtown or urban areas. Demolition, replacement, or change in the use of old buildings are examples of land supply by the private sector. - However, the private sector’s role in land supply is limited because subdivision of lands is strictly regulated and private companies do not have many opportunities for a major scale development project. Since the subdivision of lands is very complicated, most landlords do not observe the legally correct process. The illegal subdivision of lands is widely considered as the only reasonable choice. - Aspect of comparison analysis, The urban planning and development systems in Egypt can be explained by a development permit system and the method of land supply. However, due to complicate process and overcharge for permission, there are many limitations in projecting urban development.

□ Policy implications ◦ Improvement of spatial planning system - Generally speaking, the planning system in Egypt has evolved to keep up with the changes facing the country’s planning environment, but the establishment of urban planning at the local level still lacks efficiency because of the top-down approach. - Therefore, it is necessary to reform the system to allow local governments to plan for themselves and strengthen their planning abilities. ◦ Improvement of the development permit system - Local governments in Egypt give approval, disapproval, or conditional approval for any urban development project according to laws such as Urban Planning Act, Building Act, and other

Ⅴ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

general planning regulations. - Since the central government establishes the urban planning plan, while it is local governments who execute and enforce the plan, there exists a fundamental gap between planning and execution. Also, development control by local governments is not effective because of their limited abilities. - In order to enable local governments to issue development permits, the central government needs to provide general principles and criteria of land development, and governorates need to provide detailed regional guidelines reflecting the peculiarities of each region. ◦ Replacement of the land development method - Old town redevelopment suffers from the lack of financial resources and strong opposition from existing residents. It is difficult to procure adequate financial resources to afford the cost of land expropriation and related moving expenses, as well as the cost of constructing infrastructures, such as roads, water, sewerage, and waste disposal facilities. - Although the new town development supplies new housing, it is impossible to resolve housing problems of low income residents because the price of new housing remains unaffordable to them. - The main tasks for old town redevelopment are to secure financial resources and reduce residents’ opposition. For activating old town redevelopment, a new tool similar to the land substitution in Korea is needed instead of public sector land development. For the new town development, the NUCA should use reserved financial resources through development gain restitution to provide integrated transportation systems for large regions.

2) Development directions for study areas

◦ Problems - Tanta City has been suffered from housing deficiency because of the shortage of development land and high land price. And informal developments are widespread along the urban fringe areas. - Furthermore, lack of urban infrastructures such as roads, sewages cause a lot of urban problems like traffic congestions, environmental pollutions, and ete. But there is no effective urban management system for solving these problems. ◦ Development directions

Ⅵ - Inner city redevelopment can be one of the alternatives to mitigate many urban problems of Tanta city. - And also infill development for scattered vacant land inside the city can be another alternative.

□ Assiut ◦ Problems - Around the Assiut city many urban barriers like river, channel, and railways hinder urban growth. - There are a lot of urban problems, such as housing deficiency, informal development, traffic congestions, and environmental pollutions, but there is no effective urban management system to solve these problems. ◦ Development directions - To overcome urban growth limitation, it is needed to develop vacant dessert land for New Urban Community. - New Urban Community development can suggest the chance to establish regional infrastructure like mass transit system.

□ Suggestions for plan-based development ◦ Inner city development (Tal El Hadaddin) - Establish the Detailed District Planning System for plan-based development - Legislate the infrastructure linkage system which provides urban infrastructure based on the cost-sharing principles - Enhance the effectiveness of development permit system by suggesting National guideline for permit approval.

◦ New urban community development (New Assiut City) - Secure regional infrastructure by ensuring financial resource through compact development. - Recapture share value of land to subsidize low and middle income housing. - Legitimate supply system for these actually consumes housing services and legislate regulations to control speculation like heavy tax system for speculative multi-housing owners.

Ⅶ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

3) Development model for project areas.

□ lnner city development

Index Concept and summaries

∘ Largely privately-owned area: Land substitution Land acquisition ∘ Largely publicly-owned area: Expropriation

Development ∘ District - 1: Expropriation unit and ∘ District - 2: Expropriation land acquisition ∘ District - 3, 4: Combination of expropriation and Land Substitution ∘ Public: Expropriation, provision of public facilities, deregulation ∘ Private: Individual construction, full payment of the development costs by Development land substitution process ∘ Developer: Initial investment, payback of the development costs by selling the land secured for recompensation Measures for ∘ Complete Relocation: Providing relocation fee evictees ∘ Temporary Relocation: Providing affordable housing, financial aid ∘ Within a Project Site: Developer ∘ Outside a Project Site: Local government and service providers should take Infrastructure the responsibility for providing infrastructure. (Max. 50%) provision ∘ Financial Aid: Public developer-financial aid; private developer-loan provision ∘ Management: hand management responsibilities to local agencies in charge ∘ Recipients of land substitution: private contract at the land preparation cost ∘ Housing: lottery (economy housing: under the land preparation costs, middle-income housing: at land preparation costs, upper middle / luxury housing: above the land preparation costs) Land provision ∘ Public uses (public offices) and provision - Central / local government: at land preparation costs cost - Land owners: at land preparation costs (above the preparation costs for additional area) ∘ Other facilities: central/local gov.(at land preparation costs), other buyers(lottery, at land preparation costs)

∘ Developer: expected profit increase up to 53.6% in land sales and up to Land 543% in rent substitution ∘ Land owners: expected increase up to 134.9% in property value and up to 279.8% in rent ∘ Easing Construction Regulations : Lowered Max. Building Height - Commercial Area: Max. 50 m Architecture - Mixed-Use Area: Max. 40 m plan - Residential area: Max. 5 stories (except apartment housing) - Commercial, mixed-use, apartment housing: lowered height limits

Ⅷ □ New community development

Index Concept and summaries

∘ Largely privately-owned area: Land substitution Land acquisition ∘ Largely publicly-owned area: Expropriation

Development ∘ District - 1: Expropriation unit and ∘ District - 2: Expropriation land acquisition ∘ District - 3, 4: Combination of expropriation and Land Substitution

∘ Public: Expropriation, provision of public facilities, deregulation ∘ Private: Individual construction, full payment of the development costs by Development land substitution process ∘ Developer: Initial investment, payback of the development costs by selling the land secured for recompensation

Measures for ∘ Complete Relocation: Providing relocation fee evictees ∘ Temporary Relocation: Providing affordable housing, financial aid

∘ Within a Project Site: Developer ∘ Outside a Project Site: Local government and service providers should take Infrastructure the responsibility for providing infrastructure. (Max. 50%) provision ∘ Financial Aid: Public developer-financial aid; private developer-loan provision ∘ Management: hand management responsibilities to local agencies in charge ∘ Recipients of land substitution: private contract at the land preparation cost ∘ Housing: lottery (economy housing: under the land preparation costs, middle-income housing: at land preparation costs, upper middle / luxury housing: above the land preparation costs) Land provision ∘ Public uses (public offices) and provision - Central / local government: at land preparation costs cost - Land owners: at land preparation costs (above the preparation costs for additional area) ∘ Other facilities: central/local gov.(at land preparation costs), other buyers(lottery, at land preparation costs)

∘ Developer: expected profit increase up to 53.6% in land sales and up to Land 543% in rent substitution ∘ Land owners: expected increase up to 134.9% in property value and up to 279.8% in rent

∘ Easing Construction Regulations : Lowered Max. Building Height - Commercial Area: Max. 50 m Architecture - Mixed-Use Area: Max. 40 m plan - Residential area: Max. 5 stories (except apartment housing) - Commercial, mixed-use, apartment housing: lowered height limits

Ⅸ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

4) Urban indicators for plan-based development

□ Urban indicators and monitoring system in Egypt ◦ Monitoring mainly deals with the general process of necessary information to evaluate the execution and implementation of urban planning. Through the monitoring system, planned urban management can be possible. ◦ In specific, although monitoring is sometimes used to evaluate the project achievements at local level, there is no general format. ◦ Alghough monitoring is based upon diversity in terms of management and operation, it is usually composed of two main parts, problem detection and evaluation. ◦ Monitoring system is possbly constructed through the timely accumulation of related urban indicators, which is composed of indicators, statistics and indices.

□ Problems and current situation of Egyptian indicator system ◦ With the rapid urbanization, informal settlements and housing shortages become the most representative urban issues in Egypt. ◦ Currently Egyptian government tries to develop various related urban indicator system through the aid and support from international organizations such as U.N. ◦ However, due to the lack of basic data collection, establishiment of monitoring system is not available. - For example, only 4~5% of entire urban housing and land is officially registered. - Unclear ownership often sets back the development process.

□ Suggestions for the establishment of monitoring system ◦ Egyptian government should put the first priority on the reform of registration system for the sustainable basic data collection. ◦ It is required to integrate numerous definitions of informal settlements into practical one and set the specific policy goals and objects that can be achieved. ◦ It is also strongly recommended to choose and develop strategic urban indicator and monitoring system considering the current urban growth stages.

Ⅹ Table of Contents

Table of Contents

1. Introduction to project

1.1 Introduction ······················································································· 1

1.1.1 Background ····································································································· 1 1.1.2 Goals and purposes ······················································································· 1 1.1.3 Overview ········································································································· 1 1.1.4 Scope of study ······························································································· 2

1.2 Work plans ························································································ 4

1.2.1 Land development systems and policies of Egypt and future policy directions ············ 4 1.2.2 Directions to plan-based development of the study areas ························ 4 1.2.3 Development model for the project areas ·················································· 6 1.2.4 Urban indicators for plan-based land development ································· 6 1.2.5 Training program ··························································································· 6

1.3 Teams and schedules ······································································· 7

1.3.1 Participating organizations ············································································· 7 1.3.2 Major tasks of the consultants ····································································· 9

2. Land development system and policy in Egypt and policy directions

2.1 Land development system of Egypt ············································ 11

2.1.1 History of land and housing policy ·························································· 11 2.1.2 Land management and tenure systems ······················································ 13 2.1.3 Actors from the central government and policy alternatives ················· 16

Ⅺ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

2.1.4 The national administrative organization and planning system ·············· 18 2.1.5 Evaluation of the Egyptian planning system ············································ 22 2.1.6 Development of planning regulations ························································ 22 2.1.7 Recommendations ························································································· 24

2.2 Land policy of Korea ···································································· 26

2.2.1 Land use planning and policy ··································································· 26 2.2.2 Land development ························································································ 34 2.2.3 Implications ································································································· 47

2.3 Comparative analysis of land development policies ················ 52

2.3.1 The bases of comparison ············································································ 52 2.3.2 History of land development and concept of land ownership ··············· 52 2.3.3 Political and administrative framework for urban planning and land development ················································································· 54 2.3.4 System of urban planning and development ············································ 55 2.3.5 Policy implications ······················································································· 58

3. Development directions for the study areas

3.1 Tanta city ························································································ 61

3.1.1 ····················································································· 61 3.1.2 Tanta city ····································································································· 71 3.1.3 Supply and demand for land development ··············································· 81 3.1.4 Problems and opportunities ········································································· 83 3.1.5 Situation and problems of inner-city development ·································· 89

3.2 Assiut city ····················································································· 109

3.2.1 Assiut governorate ····················································································· 109

12Ⅻ Table of Contents

3.2.2 Assiut city ·································································································· 119 3.2.3 Supply and demand of land/urban development ·································· 131 3.2.4 Constraints and opportunities ··································································· 132 3.2.5 Situations and problems of new urban community development ········ 135

3.3 Land development system and plan-based management ·········· 156

3.3.1 Inner-city development ·············································································· 156 3.3.2 Suggestions for new urban community development ···························· 157

4. Development directions of the project areas

4.1 Inner-city development ······························································· 159

4.1.1 Concept plan for the project areas ·························································· 159 4.1.2 Review of the redevelopment procedures and cases of Korea ············ 172 4.1.3 Methods for promoting land development ············································ 185 4.1.4 Development planning ··············································································· 189 4.1.5 Management plan ····················································································· 211

4.2 New community development ····················································· 215

4.2.1 Development condition analysis ······························································· 215 4.2.2 Development method ················································································· 216 4.2.3 Land development plan ············································································· 225 4.2.4 Fundamental concept of the development planning ······························ 231

5. Urban indicators for plan-based development

5.1 Indicators and monitoring system ·············································· 247

5.1.1 Introduction to the monitoring system ···················································· 247

ⅩⅢ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

5.1.2 Monitoring system and indicators ···························································· 248

5.2 Land Management Information System (LMIS) in Korea ······ 269

5.2.1 Introduction ································································································· 269 5.2.2 Issues of land administration and LMIS ························································ 270 5.2.3 Strategies for developing LMIS ····························································· 278 5.2.4 Embodiment of LMIS ············································································· 281 5.2.5 A case for monitoring land speculation using LMIS ··························· 284

5.3 Conclusions and policy suggestions ··········································· 288

5.3.1 Evaluation of Egyptian indicators and the monitoring system ············ 288

References ···························································································· 297

List of Researcher ··············································································· 299

14ⅩⅣ Table of Contents

Table List

Input of Korean experts······································································································ 8
Roles and specialties of the researchers ············································································ 8

Average residential unit cost in urban Egypt 1960–1993 ············································· 15
Changing trends of the National Territorial Plans ························································· 27
Summary of land development schemes in Korea ······················································· 35
Achievements of land readjustment projects ··································································· 36
Achievements of public management development by projector ······························ 39
Public management development by location ······························································· 39
Achievement of housing site development ······································································ 40
Achievement of urban development project ································································ 41
Achievements of the 2 million-unit housing construction program ···························· 42
Sketch of the Five New Towns ·················································································· 43
Land use plan of the New Towns ············································································· 44
Criteria for the land prices supplied by the PMD projects ········································ 45
Achievement of the PEI Project ······················································································ 45
Achievement of urban regeneration ·············································································· 46
Achievement of housing re-construction ········································································ 46
Comparison of land ownership······················································································ 53
Comparison of land development systems···································································· 58

Delta region, 2005 ·············································································································· 62
Urban and rural population of Gharbia Governorate ···················································· 63
Population growth rate ······································································································ 63
Change in population density ·························································································· 64
Population of Tanta and Gharbia by gender, 2005 ························································ 64
Land use in Gharbia Governorate ·················································································· 64
Administrative district of Gharbia Governorate ···························································· 65
Local units and villages of each markaz ········································································ 65
Population of the Gharbia Governorate and Tanta ······················································ 66
GDP of the Gharbia Governorate in 2000/2001 ···························································· 66

ⅩⅤ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Labour and Unemployment ··························································································· 67
Roads of Gharbia············································································································· 68
Potable water and sanitation coverage in the , 1996 ·············· 69
Drinking water condition in Tanta and Gharbia ·························································· 69
Wastewater condition in Tanta and Gharbia ································································ 70
Population growth rate···································································································· 72
Trend in population and growth rate············································································ 72
Population of each shayakhai ························································································· 74
Land use··························································································································· 80
Main problem areas related to land use ······································································· 86
Conditions and potentials of each area needing some upgrading ······························ 88
Suitable area for sub-area and condition······································································· 89
Alternatives of the action plan······················································································· 93
Alternatives······················································································································· 94
Contents and regulations································································································· 95
Average monthly income ······························································································· 99
Comparison of the projects··························································································· 106
Average temperature and rainfall ··············································································· 110
Urban and rural population in Assiut Governorate–Markaz ·································· 111
Population by gender, 2000 ························································································· 111
Population index ············································································································· 112
Population growth rate·································································································· 112
Assiut Governorate areas, 2004 ··················································································· 112
Administrative subdivisions ························································································· 113
Labour and Unemployment, 2003 ················································································· 113
Population of the governorate stratified by economic activity, 1996 ······················ 114
GDP of the governorate of Assiut, 2000/2001 ·························································· 115
Road and paved ratio, 2003 ····················································································· 116
Potable water and sanitation coverage, 1996 ······························································· 117
Main polluting factories and the amount of liquid industrial wastes ······················ 117
Water supply, 2003 ····································································································· 117
Sewage stations ··············································································································· 118
Assiut's administrative conditions ··············································································· 119
Population and growth rate ························································································ 121
Spatial distribution of the population ·········································································· 121

16ⅩVI Table of Contents

Population distribution according to economic activities ········································ 121
Population of Assiut City stratified by Economic Activity, 1996 ·························· 122
Urban growth pattern of Assiut City··········································································· 124
Land use ························································································································ 130
Number of the housing units constructed by the private sector in new cities ······ 139
Total investment by the NUCA in developing new cities ······································· 140
Total number of housing units constructed by the NUCA ··································· 140
Population ······················································································································ 148
Land use plan ··············································································································· 148
Analysis of New Assiut City development process···················································· 150
Analysis of the land development process·································································· 154

Land use of the buildings in El Ganabeya··································································· 160
Urban Development Act ································································································ 176
Land substitution ·············································································································· 183
Effects ································································································································ 183
Expropriation ···················································································································· 184
Effects ································································································································ 184
Comparison of land substitution with expropriation ···················································· 185
Project districts ················································································································· 186
Directions and methods for land development····························································· 186
Land Provision Methods and Land Price ································································ 189
Land use plan ··············································································································· 192
Comparison between before and after the redevelopment ········································· 197
Criteria for land substitution ······················································································· 197
Land substitution ············································································································ 198
Expected profits·············································································································· 198
Expropriation area in each district··············································································· 207
Public share of the development costs········································································ 207
Private share of the development costs······································································· 207
Expected impacts ·········································································································· 208
Summary of the development process and the plan ················································· 209
Comparison between before and after the redevelopment ······································· 210
Cost and profit of the public sector············································································ 210
Cost and profit of the developer·················································································· 211

ⅩⅤ II THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Cost and profit of the land owner·············································································· 211
Planning items················································································································ 212
Housing site development promotion project ···························································· 219
The characteristics of the project method ·································································· 221
Supply method and supply price ············································································· 224
Management of land supply price ··············································································· 225
New Assiut City planning index ················································································ 226
Comparison of development density············································································ 226
Population capacity ······································································································· 227
Case study on Korean development density ······························································· 228
Adjustment of housing site scale ·················································································· 228
Case study of Korean housing site scale ····································································· 229
Current status of the public transportation in five New towns ······························· 229
Distribution standard of the number of household in each housing type ············· 232
Housing type·················································································································· 233
The number of planned households in each household type ································· 233
Distribution of housing site in each household type ················································· 233
Standard of each land use area ·················································································· 236
Volume of housing area ······························································································ 236
Land use concept ··········································································································· 236
Development costs ·········································································································· 237
Summary of fundamental concept for development plan ·········································· 244
Development density adjustment ·················································································· 245
Comparison of development density············································································ 246
Adjustment of the proportion of housing site supply ··············································· 246

ADB’s urban sector goals, strategies and targets, and indicators ······························· 252
Informal population of Tanta ·························································································· 290

18ⅩⅥII Table of Contents

Figure List

Research scheme and flow ································································································ 3
Participating organizations ································································································· 7
Role of consultants ············································································································· 9

Escalation of land prices in urban Egypt ······································································ 14
Average land prices supplied in the New Town and settlements ····························· 15
Average land prices supplied by the informal sector ·················································· 15
Administrative system of Egypt ······················································································ 21
Problem of the Egyptian planning legal system ··························································· 23
New National Land Utilization System ········································································· 28
Land readjustment projects by period ············································································ 36
Land readjustment by projector (on a site number basis) ··········································· 37
Land readjustment by projector (By project area) ······················································· 37
Achievements of public management development by period ·································· 39
Public-led development ································································································ 39
Public management development by location ···························································· 40

Regions in Egypt ·············································································································· 61
Delta region ······················································································································ 61
Administrative boundaries of Delta region ···································································· 62
Formation of the regional transportation system ·························································· 68
The Virgin’s Church ········································································································· 71
The mosque of Sheikh Ahmed El-Badawi ····································································· 71
Location of Tanta City and Markaz ··············································································· 72
Satellite image of Tanta ··································································································· 72
Location of each shayakhai ····························································································· 73
Road system in Tanta City ···························································································· 75
Water supply system ···································································································· 75
Urban expansion ············································································································· 77
Land use ·························································································································· 80
Building heights ·············································································································· 81
Building conditions ········································································································· 81

ⅩⅦ I THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Location of Assiut Governorate ················································································· 109
Administrative districts ································································································· 113
Person share from total quantity of water productivity ··········································· 117
Location of Assiut City ······························································································ 120
Assiut City spatial structure ······················································································ 123
Districts of Assiut City ······························································································· 123
Historical progress of urban mass ·············································································· 125
Assiut area in the city ······························································································· 129
Land use ······················································································································ 129
Urban development factors ·························································································· 130
Building status ············································································································· 131
Road network ············································································································ 131
Inadequacy of utilities services ···················································································· 134
Opportunities ··············································································································· 135
New communities development in Egypt ································································ 138
New Assiut City ··········································································································· 146
Land use plan of New Assiut City ······································································ 149

Location of El Ganabeya ······························································································ 159
Boundaries of El Ganabeya and Tal El Haddadin ····················································· 159
Land use of El Ganabeya ······························································································ 160
Road network ·················································································································· 161
Land ownership ·············································································································· 162
Project area location and boundaries············································································ 164
Land use ·························································································································· 165
Building conditions ········································································································· 166
Building heights ············································································································ 167
Land ownership ·········································································································· 168
Present conditions of Tal El Haddadin 1·································································· 169
Present conditions of Tal El Haddadin 2·································································· 170
Dongdaemun market in 1980 ······················································································ 173
Dongdaemun market in 2006 ······················································································ 173
Shogong-dong in 1970 ·································································································· 174
Shogong-dong in 2006 ·································································································· 174
Euljiro 2-ga in 2005 ······································································································ 175

20ⅩⅩ Table of Contents

Land substitution procedures ······················································································· 182
Concept ·························································································································· 190
Land use plan ··············································································································· 191
Details ···························································································································· 193
Land use ························································································································ 193
Methods ························································································································· 193
Land use ························································································································ 194
Details ···························································································································· 194
Methods ························································································································· 194
Details ···························································································································· 195
Land use ························································································································ 195
Methods ························································································································· 195
Land use ······················································································································ 196
Details ·························································································································· 196
Methods ························································································································· 196
Land substitution plan ································································································· 199
Main road network ······································································································· 200
Public facilities and parks ···························································································· 200
Density regulations ······································································································· 201
Massing ·························································································································· 202
Master Plan ··················································································································· 204
Perspective 1 ·················································································································· 205
Perspective 2 ·················································································································· 206
Guidelines ······················································································································ 214
Bundang New town ····································································································· 216
Development stages of Bundang New town ····························································· 216
Ilsan New town ·········································································································· 217
Development stages of Ilsan New town ···································································· 217
Pyoungchon New town ······························································································ 218
Development stages of Pyoungchon New town ························································ 218
Procedures of the Housing Site Development Promotion Project ·························· 222
Land expropriation ······································································································· 223
Land expropriation system ····················································································· 223
Comparison of residential areas ·············································································· 226
Korean New Town ····································································································· 228

ⅩⅩⅠ THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Location map of five New towns ··········································································· 230
Transportation system of five Korean New Towns ················································· 230
Population planning ······································································································ 231
Process of land use planning establishment ······························································ 234
Land use concept map ······························································································· 237
Land use plan ··············································································································· 238
Traffic line ··················································································································· 240
Park and public facility ································································································ 240
Height regulation ········································································································ 242
Massing ························································································································ 242
An example of Development Plan ············································································ 243

Relationship between data, statistics and indicator ····················································· 249
Procedures of land administrative operations ······························································ 271
Numerical geographic map (topographical map) ························································ 272
Cadastral map ················································································································· 272
National land use planning map ·················································································· 275
Urban planning map ······································································································ 275
Road preservation boundary map ················································································· 275
Forestland use map ········································································································ 275
Example of discrepancies on zones ·············································································· 277
Nationwide Constitution on LMIS ·············································································· 282
System architecture on LMIS ······················································································· 282
LMIS database creation ································································································ 283
System Architecture ···································································································· 286
Contour about Land transaction (Jeonju-si, Korea) ·················································· 286
Results of land speculation monitoring ······································································ 287
Vicious circle of condition for indicators ··································································· 289
Urbanization rate and urban management stage ····················································· 291
Comparison with population annual growth rate ····················································· 292

22ⅩⅩII 1. Introduction to the project

1.1 Introduction

1.2 Work plans

1.3 Teams and schedules 1. Introduction to the project

1.1 Introduction

1.1.1 Background

󰋪 Egypt is experiencing dramatic urbanization and population growth ∘ As of 2004, 67 million people live in only 4% of the urbanized areas. ∘ By 2017, it will increase up to 84 million (1.75% growth rate per annum).

󰋪 Squatter settlements and illegal land development are observed in the vicinities of major cities ∘ For example, lots of agricultural lands in Tanta city which is the center of Delta region with population of 340,000 are informally transformed into urban uses

󰋪 Plan-based land development and urban management system are required ∘ Egyptian government has been trying to solve three problems by establishing proper institutional and planning system in collaboration with foreign countries. ∘ As a country that has experienced similar rapid urbanization and related urban problems, Korea agreed to undertake the project to provide plan-based land development and urban management system ∘ On behalf of Korea government, KRIHS(Korea Research Institution for Human Settlements) will execute the project in collaboration with GOPP(General Organization Physical Planning) in Egypt

1.1.2 Goals and purposes

󰋪 Suggest effective policy measures for plan-based development and management of land

󰋪 Provide basic information required for establishing land development policies of the Egyptian government

󰋪 Contribute to the economic growth of Egypt through a plan-based urban management and land development system

1.1.3 Overview

1) Study area

󰋪 Tanta in Delta area, approximately 3,100 fd (13.02 ㎢)

1 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

󰋪 Assiut in Desert area, approximately 2,700 fd (11.34 ㎢)

2) Work period

󰋪 2005. 7. - 2007. 1. (18 months)

1.1.4 Scope of study

1) Evaluating the land development system of Egypt and policy directions

󰋪 Systems of planning and land development of Egypt ∘ Urban planning and development restrictions ∘ Related systems for land development

󰋪 Comparison with the Korean planning and land development system ∘ Comparison of the land development system between the two countries ∘ Lessons from the Korean system, and suggestions for improving land development policies in Egypt

2) Suggesting development directions for the study areas

󰋪 Current situation and problems ∘ Current situation of the study areas - Social, economic, and environmental conditions - Demand and supply for land development ∘ Conditions and problems for land development

󰋪 Plan-based management for land development ∘ Introduction to the plan-based development system ∘ Expansion of infrastructure facilities, and environmental protection ∘ Suggestions for the plan-based management methods for land development

3) Suggesting development models for the project areas

󰋪 Suggestions of proper development models (Inner-city areas vs. Suburban areas) ∘ Development methods for inner-city areas ∘ Development methods for new town development

󰋪 Directions for land development ∘ Implementation of land development policies

2 1. Introduction to the project

∘ Suggestions for project areas, development subject, land acquisition, establishment of a land development plan, construction of infrastructure, supply and allocation of developed land, etc.

4) Suggesting directions for the expansion of developed models

󰋪 Problems with the analysis of the study areas and policy solutions ∘ Policy directions for a plan-based land development and management ∘ Policy directions for the improvement of land development methods

󰋪 Development of urban indicators for Plan-based Land Development and Management (PLDM) ∘ Purpose and usage of urban indicators ∘ Development of urban indicators ∘ Directions for national application of the developed urban indicators

Research scheme and flow

3 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

1.2 Work plans

1.2.1 Land development systems and policies of Egypt, and future policy directions

󰋪 Literature review ∘ On issues and problems of the current urban and regional planning systems and land development regulations ∘ Investigate policies, laws and regulations, guidelines and principles related to the planning and permit approval process of land development project ∘ Interview survey on government officials, developers, planners, and other affiliated experts in urban development ∘ Identify the current condition and problems of land development policies, regulations and government supporting systems

󰋪 Comparative studies on urban planning and policies between Egypt and Korea ∘ Identify problems and issues on urban planning policies of Egypt ∘ Suggest policy alternatives and implications based on the experiences of Korea

1.2.2 Plan-based development directions of the study areas (Tanta and Assiut)

󰋪 Literature review ∘ On social, economic and environmental conditions and problems of land development (e.g. squatters and illegal land use)

󰋪 Cartographic analysis on geographic features of the study areas : ∘ Historical growth pattern of the areas ∘ Land use, transportation, water, sewer system, open space and public amenities ∘ Other important facilities in the study areas

󰋪 Field survey on ∘ Geographic and topographic features ∘ Natural preservation areas and historic preservation districts ∘ Economic situations and social activities of the residents

4 1. Introduction to the project

∘ Current land development patterns that cause squatter settlements and illegal land use

󰋪 Interview survey on local authorities, regional officers, developers, contractors and planning experts to identify ∘ Problems and issues of the urban planning system and land development policies from the social, economic and environmental perspectives. ∘ Suggestions and alternatives plan-based urban management and policy recommendations for the squatter issue and illegal land use ∘ Land demand profile, changes in real estate price and rent, policies and regulations for historic preservation, etc.

󰋪 Review on related plans for the study areas ∘ Problems and issues in land use, development regulations and laws ∘ Development plans and projects for supplying urban facilities ∘ Policy implications under the current land development policies and planning systems

󰋪 Statistical data survey on ∘ Population and housing census ∘ Economic census, business patterns and other related social statistics ∘ Land development and building permit ∘ Urban infrastructures (roads, water, sewerage, electricity, telecommunications, etc.)

󰋪 Case studies on land development projects ∘ Actors in development projects (e.g. public sector, private sector, private-public partnership, NGOs) ∘ Project purpose and development areas ∘ Project financing (e.g. bond and property fund) ∘ Land acquisition (e.g. land expropriation) ∘ Resident relocation programs and removal process of existing structures and materials ∘ Establishment of development plans and permit approval process ∘ Supply of urban infrastructures and burden-sharing systems ∘ System for supplying developed land ∘ Management system and property right of public infrastructures (road, water, sewerage, electricity, and park)

5 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

∘ Conditions for government subsidies (tax abatement and other technical and administrative support)

1.2.3 Development model for the project areas

󰋪 Defining development projects based on: ∘ Current situation of the study areas (urban renewal or new town development) ∘ Actors in the project (from public sector, private sector, public-private partnership, NGOs, etc.) ∘ Land acquisition (expropriation or re-adjustment)

󰋪 Development strategies for the project areas ∘ Selection of the project areas and developers ∘ Land acquisition ∘ Development plans ∘ Supply for urban infrastructure ∘ Sale or allocation of developed land

󰋪 Policy directions based on the proposed model for: ∘ Plan-based land development and management ∘ Widespread application of the proposed development and management plan

1.2.4 Urban indicators for plan-based land development

󰋪 Interview survey ∘ Purpose and use of urban indicators ∘ Existing indicators and statistical data ∘ Basic information for urban indicator development and data collection

󰋪 Policy directions for expanding the urban indicators nationwide ∘ Database management system for balanced land development ∘ Implementation of the Geographic Information System (GIS) for land management ∘ Land Management Information System (LMIS) of Korea to be introduced as an example

1.2.5 Training program

󰋪 Program objectives are to:

6 1. Introduction to the project

∘ Share Korean land development and policy implementation experiences with Egypt ∘ Provide policy directions for the systematic land development and management system to Egypt 󰋪 Program contents ∘ Land development policies and regulations of Korea ∘ Land development methods and land management information system of Korea

󰋫 Sites and institutions to visit ∘ New towns and local governments ∘ Korea Research Institute for Human settlements (KRIHS) ∘ Korea Land Corporation (KLC) ∘ Korea National Housing Corporation (KNHC) ∘ National Geographic Information Institute (NGII)

1.3 Teams and schedules

1.3.1 Participating organizations

∘ The execution agencies for the project are Korea International Cooperation Agency (KOICA) for Korea and General Organization for Physical Planing (GOPP) for Egypt. ∘ The project team of KRIHS will execute the project, on behalf of KOICA, in collaboration with the Egyptian supporting team comprising qualified experts of GOPP staff, regional planning office staff and local authorities.

Participating organizations

7 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

∘ Under contract and upon a timely request of KRIHS, consultants from Egypt and Korea will provide technical support for the project, and work closely with each other.

Input of Korean experts M/M Position No Field Home Total (Egypt) (Korea) Project manager 1 4 14 18 Physical planner 2 (1) 4 (14) 32 36 (14) Land market analyst 2 (1) 4 (14) 32 36 (14) Land policy analyst 1 (1) 2 (7) 16 18 (7) Statistician 1 (1) 4 (7) 14 18 (7) Housing expert 1 (1) 0.5 (7) 11.5 12 (7) Civil engineer 1 (1) 4 (7) 8 12 (7) Sociologist 1 (1) 0.5 (7) 11.5 12 (7) GIS & CAD expert 2 (1) 2 (7) 16 18 (7) Training specialist 1 0.5 1.5 2 Total 13 (8) 25.5 (70) 156.5 182 (70)

* The figures in the parentheses indicate the experts and M/M of the Egyptian consultants.

Roles and specialties of the researchers

Position Main role

Project manager -General management of the project -Analysis of the spatial plan system Physical planner -Study on the project areas -Drawing development plans for the project areas -Economic feasibility analysis of the development project Land market analyst -Problem analysis of land development methods -Developing urban indicators related to land policies -Study on issues and problems of land policies Land policy analyst -Evaluation of government policies -Analysis of housing policies Housing expert -Analysis of the demand for housing and housing lots Civil engineer -Planning the infrastructure of the project areas -Analysis of the characteristics in population and society Sociologist -Study on the characteristics of communities and utilities -Study on the information system for land management GIS & CAD expert -Map analysis of the project areas for the development plan -Developing programs for a training on land development Training specialist -Planning visits to development sites and relevant institutions

8 1. Introduction to the project

1.3.2 Major tasks of the consultants

Role of consultants

9 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

10 2. Land development system and policy of Egypt and future policy directions

2.1 Land development system of Egypt

2.1.1 History of land and housing policy

The rapid population growth and drastic urbanization resulted in the increase in population density and housing shortage, especially in urban areas, and the Egyptian government became more actively involved in land and housing issues. One of the radical government interventions in the land market was introduced during the 19th century when Mohamad Ali came to power. As the founder of modern Egypt, he adopted an ambitious program for a comprehensive land development through internal land reforms. In 1813, he abolished the tax system of rural administrations and, instead, established a direct and centralized system in order to assess and collect land tax.

Prior to Ali, in the 18th century the legal and administrative authority was decentralized. However, Ottoman and Islamic laws claimed their state ownership for the most cultivated land, and this principle was the legal basis for Ali’s abolition of the tax system, as well as imposition of state control over agriculture. In line with the principle, Ali reassigned much cultivated land as state-owned land and imposed taxes on it.

Top priority in the application of this centralized tax system was using a cadastral survey, and it became the basis of the modernized land regulation system. For a long time, however, the strong state under Ali's rule facilitated the development toward private ownership by granting land to his supporters with political purposes.

These supporters and their descendants had remained principal landowners of Egypt until 1952 when Nasser brought about social reform. The distribution of land tenure before the Nasser was extremely unbalanced; 94.2% of the total land owners held only 35.5% of the land while 5.8% of the owners held 64.5%. In addition, a significant number of farmers had no land at all but were renting it from landowners who set the terms of land lease. Most of the lease agreements were not written but made by word of mouth so that owners can terminate them anytime they want. The disparity in land distribution and ownership was one of the major factors that triggered the 1952 revolution of Nasser.

11 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

The first radical reform of Nasser was agrarian reform in 1952. It aimed to break the vested hold of powerful rural elites by allowing the state the power to seize privately held land which exceeded 200 feddan, and the ceiling reduced to 100 feddan in 1961. However, people could hold up to 300 feddan a family, and the amount a landlord could rent out was limited to 50 feddan. Exemptions were made to families with more than two children; they could have an additional 100 feddan. Exemptions were also given to Waqf land, desert land and land owned by industrial/scientific organizations.

The seized land was redistributed to agricultural laborers and tenant farmers who hold less than 5 feddan. The recipients were given 2.4 feddan on average and paid for the land in installments over a 40-year period. There were almost 2 million beneficiaries of the reform. People with less than 5 feddan increased by 13%, and the land they owned increased by 74%. The reform helped to improve income distribution and productivity.

Although these land reform measures aimed to improve the living conditions for the farmers which would contribute to the overall productivity and growth of the agricultural sector, the outcome was far beyond expectations. Between 1981 and 1992 the average rate of real growth in the agricultural sector was about 2% per annum. It was 2% less than that was thought to be necessary to sustain economic growth. In particular, 1.9% agricultural growth in 1980-1985, which was 2.8% down from 1965-1980, was less than estimated population growth (2.7% per annum), and government policies that had favored food imports led to an estimated annual net deficit of 3 billion in agricultural trade by the mid 1980s.

Increasing deficit in agricultural trade led to another radical reform in the mid 1980s. It had two main elements that promoted the withdrawal of the state from economic activities. One was liberalization of markets and input provision, and the other was promotion of production quality for high value-added products being exported, which were low-nutrition foodstuffs and cut flowers to Europe. The enactment of the Law 96 in 1992 provided a sound initiative for this reform.

The Law 96 revoked the former agrarian reform Law 178 of 1952 which had given tenants security of tenure and legalized the right to inherit tenancy agreements. The new law was fully enacted in October 1997, and after the enactment, all landowners could retrieve their land and charge tenants market-based rents, which was raised by

12 2. Land development system and policy of Egypt and future policy directions

up to 300-400% in some cases. While an owner could not sell his land until an agreement had been reached with the tenant before 1997, the landlord could do what he liked with the land that had previously been leased after the enactment of the new law. However, although the recent 1992 reform was meant to improve the land market, the market has not developed as expected due to the problem of land registration, which characterizes both rural and urban land markets in Egypt.

2.1.2 Land management and tenure systems

The land and housing policy of Egypt is strongly centralized and relatively diverse compared to those of other countries due to the country’s immemorial and intricate history. As a result, legislations regarding the ownership and control over land have been influenced by a variety of factors, including ancient customs and Islamic laws, as well as French and British law systems. Land in Egypt customarily belonged to the state, and only urban land and houses could remain as private properties (Mulk). This rigid state control over land was crucial for the country’s dependence on irrigation and strict regulations of land use. Thus, tenure in rural Egypt has always meant both land and water tenure, and the accessibility to water has been a crucial issue within rural areas in Egypt.

Land tenure defines various modes of land ownership and the right from it (Payne, 1997). In Egypt, five main types of land tenure can be identified as follows: ∘ Leased Land: This land is owned by the state and leased on a long-term basis to occupants. Squatters may be granted this type of tenure, if they make a request to governorate. Land that remains permanently under a leasehold status and cannot be sold is known as the Hekr land. Ownership of other leased land can be transferred from public to private following the end of the lease period. ∘ Trust or Wakf Land: It consists of a property set aside for charitable or religious purposes and is usually administered by the Ministry of Wakf. A patriarchal property is considered as Wakf, but is independent of the Wakf Ministry. ∘ Encroachment (Wad Al Ayad): The civil code makes it possible for the possessor or user of a plot of land to gain the ownership of that land if it is occupied continuously for 15 years and if the owner does not assert his rights. ∘ Private Ownership or Free Hold: This land is registered with the local district office of land registration division (Ministry of Justice) and owned by private persons or companies.

13 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

∘ Public Ownership: This land is registered as state property or land owned by the state which serves a public purpose. It includes governorate, Amlak land, land reform, antiquity and military properties (Payne, 1997). The land ownership by the government in its various forms (public, Wakf and leased land) is the prominent type of land ownership in Egypt, as the government owns all the desert land. Access to this land can be obtained by buying, leasing, or, most commonly, seizing it. The sale of government land is rather uncommon and, when it occurs, it often amounts to the recognition of an act of dispossession. The legislation of seizure finds its legal basis in the principle of Wad Al Ayad that legitimates the transfer of property to the user after 15 years of "absence" of the owner. This principle applies to both private and public land. However, in general, access to urban land is restricted by the law concerning land subdivision and building regulations.

The different tenure types and ownership over land, as mentioned above, result in a complex delivery system of urban land. One of the major problems with land supply in the housing market is the skyrocketing land prices due to the drastic urbanization and rapid population growth. The cost of land has risen from approximately 8% of the building construction costs in the 1950s to more than 100% today (Arandel and El Batran, 1996). In some cases, the cost of land reaches over 200% of the total costs, where the price of a square meter of land reachs as high as 18000 L.E in some areas in during 1997. The land price for low-income households was multiplied 50 times between 1960 and 1993, or from 4 to 2002 (according to the 1993 exchange rate of US$1=2.85 while the average unit building cost increased 12 times from 122 in 1960 to 160 L.E/㎡).

Escalation of land prices in urban Egypt Source: Araby 2003

14 2. Land development system and policy of Egypt and future policy directions

Average residential unit cost in urban Egypt 1960–1993 (L.E/㎡)

Year 1960 1965 1970 1975 1980 1983 1988 1993 Moderate location land 12 16 24 37 61 91 120 160 Good location land 16 22 30 48 73 106 200 280 Quality Distinguished land 22 29 38 58 85 128 310 420 (Prime locations)

Source: Araby 2003 (US$1=2.85 L.E)

Average land prices supplied in the New Town and settlements

Average land prices supplied by the informal sector

Interestingly, the increase in land price is attributable to land speculation as well; in the free land market during the process of subdividing of land and even in the state controlled market.

Due to the high rates of growth in urban land prices, and land speculation, the occupants of low-income settlements are very likely to be forced to move to more

15 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

peripheral sectors of a city, especially if such settlements are located close to the city centre. This sprawl of low income residences has been in progress within Cairo in such areas as Boulak and since the 1960s and it has become much faster during the last decade as urbanization rapidly accelerated.

2.1.3 Actors from the central government and policy alternatives

Two central ministries, Ministry of Agriculture (MOA) and Ministry of Housing, Utilities and New Communities (MOHUNC), are respectively responsible to a large extent for the protection of agricultural land and management of physical planning. In particular, the MOA is responsible for conserving agricultural land for the use of public projects, while it strictly prohibits private projects to join the development. Thus, the decrees of the MOA are one of the most important policy instruments that control the conflicts between urban development and agricultural land protection. The most important department within this ministry is the Central Organization for Agricultural Land Protection. This organization has branches at the governorate level. In theory, it acts as the main coordinating department between central and local governments. However, the MOA is often allowed to formally utilize peripheral lands by erecting governmental buildings such as public housing complexes and administrative buildings over agricultural land. This encourages building code violators and land brokers to buy land nearby, hence accelerating speculation and increase in the land value. While the MOA is responsible for the protection of agricultural land, the MOHUNC is mainly responsible for the physical planning. However, although the master plan is prepared by the MOHUNC, only little of it is implemented. Instead, it has accelerated development on agricultural land adjacent to the construction sites of big infrastructure projects. For plan-based land management and development, the General Organization of Physical Planning (GOPP) has studied thoroughly the negative impacts that the ring road could have on the areas adjacent to the path of it. Its recommended policy alternatives are summarized as follows: ∘ Building a green belt along the ring road and using a special planning policy because these new roads will attract building code violators ∘ Strict control over agricultural land of a 2km strip along the ring road, especially its path in peri-urban areas ∘ Inside the ring road, a preemptive right was recommended, in order to allow

16 2. Land development system and policy of Egypt and future policy directions

governorate to buy the right to build on agricultural lands from farmers, or even buy the lands from farmers, especially those put to sale. These lands could be preserved or used for building services or recreational areas, which are often hard to be found in these areas (GOPP, 1994).

However, none of these instruments were applied due to the ∘ Lack of political will ∘ Inability to make the right decision at the right time ∘ Lack of coordination with the respective governorates ∘ Lack of the capacity to implement any instrument from the common and control instruments, which the Egyptian government has been always implementing

This indirect public development has accelerated the change in the land use from agricultural to urban land, and integrated them into the city fabric. Various policy instruments were prepared by the Egyptian government in order to protect agricultural land from such activities. the Law 116 in 1983 is one of the representative policy involvements. Under this law, any buildings constructed over agricultural land or any community initiatives taken to divide agricultural land for the purpose of construction were strictly prohibited. However, since there are exceptions in this law, it often became the legal corridor for developing agricultural land. The exceptions are as follows: ∘ Land falling into the city boarders approved by 1/12/1981 (In reality, most of these lands were legally or illegally occupied.); ∘ Land areas demarcated according to the aerial photo of 1985 and approved by the MOA and MOHUNC joint decree; and, ∘ Land on which the government builds public utilities conditioned by the MOA approval. According to experts and officials interviews, those conditions opened illegal gates to arrive at what is called "Motkallilat"

While unplanned land control is the key issue, some argue that the real problem generally facing Egyptian villages, especially in Delta governorates villages, is the excessive land control, which prohibits the extension of planned urban development in villages outside the urban boarders of 1985. Due to this strict regulation, many villages in Delta governorates (Tanta governorate, for instance) are suffering from the lack of residential area and public space. As the alternatives, policy makers must keep in mind the following suggestions which have been proposed by the GOPP.

17 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

∘ Vertical expansion may be feasible and solve the problem partially. ∘ Identifying buffer areas to be included in the new boarders must be based on clear-cut criteria to decrease fraud and manipulation in this respect. ∘ Making buildings legal that are currently outside the 1985 boundaries and imposing legalization charges on their owners would not be feasible because such buildings have already been legalized through the acquittal judgments by the owners, according to which services and utilities have been provided to such buildings while not paying a reconciliation fee to the MOA. ∘ Regarding empty lands, governments may take them for public utilities, and either take over or sell them to those who want to use them for public use.

2.1.4 The national administrative organization and planning system

The Egyptian government is composed of three traditional authorities, which are legislative, executive and judicial, and decentralized in administration (local administrative system).

As common in other countries, legislation and economic and investment programs are subject to parliamentary approval and supported by central authorities. In other words, since critical land and urban planning only relies on the parliamentary decision-making, and should be supported by central organizations and authorities, it is possible for local governments to undertake, at most, a fiscal management, area planning and code enforcement.

At the central level, among various government bodies, the Ministry of Housing, Utility, and Urban Development (MHUUD) plays the most critical role in managing national development projects and planning decisions for the housing and utilities sectors. Various affiliated organizations, such as New Urban Communities Authority, GOPP, National Housing and Building Research Center, General Building and Housing Cooperative Authority and Building Technical Inspection Authority are under supervision of the MHUUD.

Not only the MHUUD, but also authorities that prepare development researches and studies support the decision-making process of national projects. The implementation of planned projects and researches are mainly performed and conducted by the following authorities: ∘ Greater Cairo Development Authority

18 2. Land development system and policy of Egypt and future policy directions

∘ North West Coast and North Middle Coast Development Authorities ∘ Red Sea Development Authority ∘ Sinnai Development Authority ∘ New Valley Development Authority

Since Egypt is based on both centralized and decentralized political systems, the decentralized decision-making process of local governments is critical in understanding the Egyptian planning process. The management authority of local governments, the authority of governorates, in particular, is much wider since the system of local administration was first introduced in 1960. Through the decentralized local administrations, the Egyptian government sought to promote local participation through the centralized planning and decentralized implementation.

The law of the Local Administration System was enacted for the first time in 1960 and, after several amendments, the Law no. 84/1996 was finally legislated in 1996. Among previous amendments before the Law no. 84/1996, the Law no. 43/1979 was the most critical because it changed the three local administration levels into five levels (governorate, markaz, city, district, and village). In line with this amendment, the physical boundaries for local administration have been drawn.

The commitment to the principle of local governments was reaffirmed in 1971 and codified in 1975. It created a dual hierarchy of executive committees and popular councils to provide more administrative flexibility to municipal authorities and encourage citizens' participation.

Later, the system was revised again in 1979 to allow greater latitude to governors and council chairmen in regard of local affairs, and strengthen the authority of governors, who are now considered to be the direct representatives of the President. Through governors, the executive authority of ministers with respect to public service functions, for which administrative responsibility has been transferred from the central to the local level. As a result, governors now have control over housing, public utilities, land development, slum upgrading, conservation, and most aspects of urban planning, design and project implementation.

The urban governorates have simply two levels, which are the governorate and the district. It is also stated that the republic should be divided into seven economic regions. Regional planning authorities and a supreme council for local administration, established for developing the administrative system of the country, lift the central

19 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

restrictions and authorize the municipal units with some powers to increase public participation in planning and administration. The law stipulates the formation of elected public councils in every municipality with at least half of their members being workers and farmers. The municipalities are governorate, markaz, city, district, and village. The law also stipulates the formation of executive councils in the municipalities that prepare projects and implement them accordingly.

In general, the governor, who is the representative of the executive authority in the governorate, oversees the implementation of the general policy of the state in relation to utilities of services, and production in his governorate. He also has the right to take all measures to guarantee the security in state public and private properties and remove all transgressions thereon through administrative means.

The governor has the right upon the agreement with the local public council within the limits set by the cabinet to determine the rules of disposing state local administration units-owned land that is prepared for building, in the governorate, and lands that are proper for cultivation, within the cordon or other bordered lands, up to two kilometers, which the governorate reclaims after consulting the Ministry of Reclamation.

While the governor plays the representative role for the governorate, the local administration is directly related to urban planning. Mainly, it supervises and manages the plans for the urban development process. Approving of general projects that satisfy housing and construction requirements, and proposing physical planning and development projects are another important realm of local administration.

In sum, the organizational level of planning in Egypt can be divided into two main bodies, central organizations and local organizations, and the major role of each organization can be summarized as follows:

The central body mostly identifies state general policies at all the fields and aspects (physical, industrial, agricultural and touristic) through authorities who specialize in each field and belong to the comprehensive national planning committee. The Ministry of Planning among other ministries of the central government is the representative organization that performs the task of preparing projects from general plans every five year, and annual plans.

On the other hand, at the regional level, organizations and authorities should satisfy the requirements and accept the recommendations of the comprehensive national

20 2. Land development system and policy of Egypt and future policy directions

planning authority for every region separately through the regional planning authority. Based on the decentralized political system, the local level planning is required as the sub-level regional planning. The local level gives attention to parts of a region (cities and villages) so as to make the optimal use of local community resources. It also seeks to develop a community from social, economic, and physical aspects through a comprehensive regional and national plan. This planning is carried out by local planning authorities of cities and villages.

President

Minister of local Minister of Planning Governor Minister of Interior administration

The general Organization for economic Local administration secretariat and regional planning

Governorate general administration

Governorate public council Governorate executive body

Head of Markas

Markas public council Markas executive body

Head of village local Head of the City administration

Village public council Village executive body

City public council City executive body

Head of district

District public council District executive body

Administrative system of Egypt

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2.1.5 Evaluation of the Egyptian planning system

Although the Egyptian planning system is diversified to concurrently satisfy local, regional and national demand, experts often criticize its planning hierarchy and system. In this context, the role of regional planning organizations should be carefully reviewed. In reality, the Ministry of Planning formed regional planning organizations and the organizations should have performed their assigned responsibilities such as examining regions' social and economic conditions and mapping out regional planning in addition to the implementation of the ratified plans.

Thirty years have passed since the inauguration of these organizations, and the results prove that their activities have not been satisfactory. In detail, they have failed to achieve the goals that they started with, due to administrative and technical obstacles such as unexpected gap between the theoretical organizational structure set and the actual structure of every region.

In the meantime, the regional planning organizations have confined themselves to short-term plans, and distanced themselves from investigating regional resources while their optimal use of the general comprehensive framework could achieve regional development for the long term. Consequently, the regional planning organizations are failing with their existing structures to prepare reports, and provide and implement a master plan for sectorial and spatial regional development.

Also it would be valuable to go over the problem of coordination between different authorities to implement planning proposals made by the GOPP. The organization prepared structural and general master plans for more than 90 out of the country's 165 cities. Rest of the cities' master plans are currently under preparation.

At the same time, it planned 2,000 out of the nation's 4,200 villages, but there has been no coordination of administration to implement these various and extensive physical plans. Moreover, administrative organizations have no experts capable of implementing these plans and rapidly changing urban situations make the plan harder to complete in a timely manner.

2.1.6 Development of planning regulations

Since the system of local administration was first introduced in 1960, an impressive

22 2. Land development system and policy of Egypt and future policy directions

body of laws, decrees and regulations has been enacted covering every aspect of urban development from master planning and land subdivision to building codes and standards for infrastructures. However, most instruments of legislative control were imitated from the western growth management models which may not properly fit for the conditions prevailing in cities of Egypt; likewise most of the large centers of developing countries, and Egypt, apparently, has gone through many difficulties in adopting them.

Before the 1960s, the administrative procedures were so cumbersome, time-consuming and costly, that they discouraged compliance among people except for the most compulsively law-abiding citizens. Especially during the 1950s, neglectful atmosphere with regard to observation of the regulatory measures among bureaucracy quickly spread over the country. Well over 60 percent of the structures in a city violated existing codes. Finally, pressures to regularize the uncontrollable situation ended up with pardoning the violations. It first occurred in 1956 and periodic legalizations (1966, 1981 and 1984) have undermined the power of legislative controls and credibility of the planning authorities. This might not have been so serious without the lack of physical sanctions. For more detailed discussion, the analysis of the Egyptian planning legal system is illustrated in

.

Lacking a legislative system Shortages of Physical legislations A lot of legislations are issued as a reaction to public cases not out of general policy pursued by the government

Strictness of legislations and tolerance in enforcement. The seriousness of violations leads to strict legislations, at the same time the enforcement of such legislations needs a great number of officials, and executive power personnel, in addition, political elements prevent the demolition of such violations which turned into a fait accompli threatens social peace. The various amendments of laws

Law no. 106/1976 is a clear example as it underwent amendments 11 times. Lacking harmony Local requirements Most acting building laws are extracted from western patterns

Law 106/1976 allows administrative authorities to set special conditions Inefficient local administrations consider beauty aspects and specialties in every area. However, local administrations lack technical efficient personnel aware of urban problems and seek to solve cooperating with consultative offices.

Legal exceptions Governors and premier can exempt some areas and lands from urban and architectural regulations.

The negligence of achieving For lacking local urban corrective bases or guiding standards and urban and architectural feature insufficient urban and architectural regulations.

Urban legislations ignored the special position of historical areas and relied on monuments law no.117/1982 which in turn failed to keep Ignoring the special position of populated historical cities and ancient building neighboring areas. All historical and ancient areas legislations failed to link the historical area to its cultural heritage and thus unawares contribute to its demolition.

Problem of the Egyptian planning legal system

23 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

The shortage of legislative sanctions leads to various problems from which local authorities might suffer. Even if both centralization and decentralization are fundamental principles of the Egyptian planning system, in reality, decentralization has not been enforced. The decentralization in administrative organizations does not affect regional / local administrative structure as governors are not ready to render their powers to a lower level. This makes cities, districts, and rural councils irrelevant to the development of local communities.

Rigid supervision upon local authorities has a great effect on effective decision-making in disposing state-owned lands and real estates. It empowers the central government which spends the budget in accordance with its own perspective but not the real needs of the governorate.

2.1.7 Recommendations

1) Administrative decentralization

Based on the problems and shortage of localities in the consideration of the planning and legislative system, our Egyptian consultants suggest the following recommendations. Since the suggestions are the opinion of our Egyptian consultants, they are subject to the revision after the mid-term report with Korean experiences.

Although the Egyptian political system is based on both centralization and decentralization, the planning system of local administration heavily depends on central authorities and government bodies such as the GOPP. In other words, appointed local governments' bureaucrats and elected council members are different from those who are appointed within the local government system. Even if citizen participation is legally guaranteed by the council system, intervention from the central government blocks the decentralized planning system and its implementation.

Thus, it is required to empower local senior officials to execute appropriate functions for urban management by separating them from the control and interference of central authorities. Most local governments are seriously suffering from the lack of financial resources that they can manage independently when they are involved in the massive development projects. It would be highly recommended to authorize the local government to impose or increase charges or add new financial resources such as investment projects and funds.

24 2. Land development system and policy of Egypt and future policy directions

The local councils, which are critical parts in the local administration, should be equipped with necessary leadership and legal power. Also, they should be treated as experts and specialists. In the planning system with unstable decentralization, a committee, which is served by specialists and experts, should be organized and operated in every governorate. Each council will mainly deal with the following tasks: - Ensuring access to an industrial complex - Formulating a plan with a timed project to preserve historic urban environment - Verifying the timed project's compatibility with development projects in the governorate - Raising people's awareness of the importance of preserving the historic urban environment from ancient times

The Egyptian urban planning should be examined with the socioeconomic perspective at the national, regional and local levels. This can be achieved through the establishment of a supreme committee for planning and urban development, which has all the related authorities at the regional and local levels. The committee should be able to conduct its researches independently and undertake initiatives of its own programs and plans, but it also has to have a connection with the legislative and executive powers within the framework of available and existing national potentials.

For this, it is necessary to have a solid link between the Physical Planning Law no. 3/1982 and local administration laws by establishing a technical committee.

A decentralized system has to be practically applied to planning and comprehensive development based upon an actual function assignment to the local levels. Based on such a system, local standards should be considered prior to the central standards for the environmental evaluation and development phase when the plans are implemented. A comprehensive master plan should be systematically supported and organized by the timely prepared short-, mid- and long-term action plans, and a detailed urban master plan.

For the organized and integrated planning system, local administrative structure for the urban planning and its implementation at the national, regional and local levels should be carefully reviewed. In other words, for the practical planning mechanism, local administrations should play a key role in urban planning and its implementation.

In addition, it is highly recommended to guarantee civic participation in the planning and urban areas management process.

25 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

2.2 Land policy of Korea

2.2.1 Land use planning and policy

In general, a land use policy, or land use system, can be used as the legal and administrative devices designed to guide individual land use in a socially productive way.

1) National Land Use Planning

(1) Overview of national land use planning The Comprehensive National Territorial Plan (CNTP) is the national-level general plan to utilize available resources with respect to national strategies and values. The CNTP contains sets of fundamental guidelines for the use, development, and preservation of the national territory as well as strategies for policies associated with land.

(2) History of the plans The goals and strategies of the national land use plans have changed along with the country’s changing socio-economic environment. The first CNTP (1972-1981) focused on infrastructure provision to create industrial clusters around the capital region and the coastal regions of the southeast to promote economic development. The main goals of the second CNTP (1982-1991) were to facilitate population dispersion and improve the quality of citizen's life by restricting growth in the capital region and encouraging growth of the metropolitan areas in other regions. The third CNTP, which was geared towards the development of west coast industrial complexes and its balanced development, focused on promoting public welfare and balancing between development and preservation. The table below illustrates each of the three CNTPs in detail.

(3) The Fourth Comprehensive National Territorial Plan (2000~2020) The main theme of the Fourth CNTP was the realization of "Integrated Land Use in the 21st Century". However, the Fourth CNTP has been subject to its revision due to numerous extenuating circumstance changes at home and abroad since it came into effect. The changes including the opening of the high speed railway, the Multi-functional Administrative City construction, the relocation of public agencies outside the capital region, the 40-hour work per week policy, and the rapid rise of China, have critically influenced on the form of national territory. The revision has been seeking ways to achieve win-win land use strategies for people from different backgrounds.

26 2. Land development system and policy of Egypt and future policy directions

Changing trends of the National Territorial Plans First CNTP (1972~1981) Second CNTP (1982~1991) Third CNTP (1992~2001)

GNP per $319 ('72) $1,824 ('82) $7,007 ('92) capita

- Improving quality of life - Expansion of SOC Back- - Buildup of national strength - Alleviation of overcrowding - Autonomous regional ground - Promoting industrialization in the capital region development

- To formulate a development-oriented structure toward provincial - To introduce population - To achieve efficient use regions dispersal to provincial areas and management of national - To construct a productive - To expand nationwide land and resource-saving land development potentials Goals - To expand infrastructures use system - To enhance the standard of - To balance development of - To improve public welfare national welfare resources and conservation and conserve natural - To protect natural of nature environment environment - To build a national territorial foundation in anticipation of reunification

- Promote regional growth while alleviating the concentration in capital region - Create a multi-nuclear - Create new industrial sites territorial structure and and enhance the industrial - Construct large-scale regional Lebensraums structure industrial bases - Contain and manage the - Construct comprehensive - Formation of transportation, growth of Seoul and Busan high-speed transportation Strategie communications, water - Expand infrastructures networks s and resource and energy supply including transportation and - Expand investment to policies networks communications to enhance the quality of life - Strengthen the functions of strengthen regional and environmental amenity depressed regions functions - Strengthen capability to - Promote the development of implement the plan and underdeveloped regions reformulate institutional bases for land use - Develop management policies for inter-Korean exchange zones

- Contain the growth in Seoul - Inadequate representation and Busan and push for a - Development approach of globalization, balanced territorial Features focused on growth poles liberalization and development by fostering and - Polarized development localization trends growth poles problems centered around the - Variables such as the - Lack of concrete means of Seoul-Busan axis advent of the WTO affecting implementation causing basic conditions of the plan ongoing regional disparities

Source: The Ministry of Construction and Transportation

27 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

2) The restructuring of National Land Use Management System

(1) Overview

Under the previous national land use management system, there were as many as, approximately, 90 Acts concerning the control of land use and granting development permission. These include the "Act on the Utilization and Management of the National Territory" and the "Urban Planning Act". Such a fragmented land use management system had been repeatedly criticized for its inefficiency and inability in managing unplanned land development.

Recurrent criticism on the old system led to the birth of the "Framework Act on National Territory (FANT)", which took the place of the "Act on Comprehensive Plans for Construction in the National Territory", and the FANT specified fundamental goals of national land use management such as balanced regional development, national competitiveness, and environmental friendliness.

Old System New System

Urban Area + Urban Area Non-Urban Area ⇒ Non-urban Area

Act on the Utilization and National Land Planning Urban Planning Act Management of the and Utilization Act National Territory National Territory City and County Urban Planning Utilization Plan Comprehensive Plans

New National Land Utilization System

Source: The Ministry of Construction and Transportation

The newly enacted FANT reorganized all the national and regional planning schemes to integrate them into a hierarchical system in the following way; the Comprehensive National Territorial Plan (CNTP) provides the basis for drawing up the Province Comprehensive Plans and the City and County Comprehensive Plans. Next, the Province Comprehensive Plan also provides the framework for creating City and County Comprehensive Plans; and all the Sectoral and Regional Plans should be in agreement with the CNTP. The City and County Comprehensive Plan can be substituted with the Urban General Plan and the Urban Management Plan.

28 2. Land development system and policy of Egypt and future policy directions

(2) Changes in the land use management system

① Integration of planning schemes for urban and rural areas

The new National Land Planning and Utilization Act (NLPU) combines the Act on the Utilization and Management of the National Territory (AUMNT) with the Urban Planning Act for the purpose of integrating dual planning systems for urban and rural areas. This integration of the planning schemes will be working as a deterrent to unplanned or sprawl-type development in rural areas. It also indicates that now there is a unified set of rules for all the real estate markets, whether urban or rural, within the national territory.

② Introduction of urban planning schemes to rural area land management

While the NLPU combines both the AUMNT and the Urban Planning Act, it actually implies that urban planning schemes are spatially extendable to cover rural areas. The old National Land Use Plan, which was solely contingent upon zoning administration, was not a comprehensive spatial/land use plan. It was not equipped with proper tools to enforce conformity of land use. The new NLPU is expected to resolve some of these issues by introducing urban planning schemes to rural area land management.

③ Integrated urban and rural growth management system

Beyond the integration of the National Land Use Plan and urban planning, the spatial planning and land use management system specified in the NLPU also aims at growth management in the urban fringes and peri-urban areas. This spatially integrated approach for routine urban land management is, largely, a response to the growing trends of suburbanization and metropolitanization.

④ Reorganization of the zoning system

The NLPU replaced the old five-zone system with a new four-zone system that covers urban areas, control areas, agricultural and forest areas, and natural environment conservation areas.

⑤ Introduction of the infrastructure linkage system

An important addition to the new land use management system is the infrastructure linkage system, which is principally a growth management tool to address the rising costs of urban

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development and infrastructure. This system was introduced with a broader and longer-term perspective, rather than merely focusing on the current issues of the sprawled development in formerly Quasi Agricultural Zoning areas. The infrastructure linkage system differentiates two types of development areas by its location; the ‘infrastructure cost-bearing area’ is designed for newly developing areas, mainly in ‘control areas,’ while the ‘development-density control area’ is for controlling development in already developed areas. The former approach ensures proper supply of infrastructures by making developers bear the costs, while the latter aims to set limits on development density to levels that can be met by the capacity of existing/supplied infrastructures.

⑥ The system of permission for development acts

The system of permission for development acts was first adopted in the Urban Planning Act by the amendment in 2000, and it was later replaced by the National Land Planning and Utilization Act in 2002. The system of granting development permits under the Urban Planning Act was a revised system of permission for alteration of the form and quality of a land. The new system reinforces preliminary examination of the administrative measures involved in granting permission for development acts. The development acts have provisions for the alteration of form and quality of land, construction of a building, installation of a structure, quarrying, and sub-division into lots.

Earlier, the permission system was applied only to urban areas under the Urban Planning Act, but now, under the National Land Planning and Utilization Act, the system has been extended to every region in the country. Therefore, it serves as a measure to arrest thoughtless development and its consequences for the environment in non-urban areas.

⑦ Introduction of the land aptitude evaluation system

The land aptitude evaluation system evaluates a piece of land by comprehensively considering its physical, locational, and socio-economic characteristics in order to enhance environment-friendly land use nationwide. The National Land Planning and Utilization Act underscores the legal basis for the system. The law states that the land aptitude evaluation is prescribed as a basic research to be conducted for establishing the Urban Management Plan. Land aptitude evaluation criteria categorize areas to be legally designated under the Control zoning-area that is subdivided into Production

30 2. Land development system and policy of Egypt and future policy directions

Control Zoning-areas, Conservation and Control Zoning-areas, and Planned Control Zoning-areas.

⑧ Information systems for national territory utilization

The Framework Act on Land Use Control has provisions to build information systems, for national territory utilization, which contain various urban planning data and information for an efficient execution of administrative and managerial tasks.

(3) Seoul Metropolitan Area Readjustment Planning Act

The Seoul Metropolitan Area Readjustment Planning Act provides essentials for establishing and enforcing the comprehensive plan for Seoul metropolitan area readjustment in order to appropriately rearrange over-concentrated populations and industries in the area, and steer future development in a balanced manner –both within the metropolitan area and the whole country.

For the optimal distribution of population and industries within the Seoul Metropolitan area, the area will be divided into three regions.

The Over-Concentration Control Region is the area in which population and industries are, or are likely to be, over-concentrated, and therefore, moving out or readjustment is deemed necessary. In this region, the installation or extension of facilities (schools, public office buildings, and in-service training facilities) that induces population concentration is restricted. Designated industrial zones are also subject to rigorous restrictions in this area.

The Growth Management Region is an area that population and industries moving out from the Over-Concentration Control Region go into. It will be intentionally solicited, and, therefore, requires proper management of industrial accommodations and urban development. Although restrictions in this area are fewer than the Over-Concentration Control Region, new installation or expansion of population-drawing facilities and new designations of industrial zones are still limited in the area. The Nature Preservation Region is an area earmarked for the preservation of the natural environment, such as the Han River water system and green belt areas. In this area, providing new population-drawing facilities and launching development projects, such as housing sites, industrial sites, tourist resort sites, or the expansion thereof, are restricted.

31 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

3) Zoning system

(1) Zoning-areas

For the use of the national land, the National Land Planning and Utilization Act, amended in 2003, categorizes the land into the following four zoning areas: Urban zoning-area, Control zoning-area, Agricultural zoning-area, and Natural environment conservation zoning-area. As development is rationally regulated by considering the characteristics of each zoning-area, efficiency of land use increases and a base for sustainable land use is provided under the system.

Landowners in a zoning-area have a duty to use their land in accordance with the zoning regulations for a particular designation, and government should guide land use by permitting appropriate development. ∘ Urban zoning-areas: These areas require systematic development, consolidation, management, and preservation as population and industries are concentrated in them, or such concentration is expected therein. ∘ Control zoning-areas: These are areas to be systematically controlled, corresponding to the urban area, in order to allow the population and industries of urban areas; or those requiring controls corresponding to the agricultural area, or the natural environment conservation area, in order to promote agricultural and forest industries, and preserve the natural environment or forests. ∘ Agricultural and forest zoning-areas: These areas require the promotion of agricultural and forest industries and preservation of forests. ∘ Natural environment conservation zoning-areas: These are areas requiring the preservation of the natural environment – water resources, coastal areas, ecosystem, water supply resources, and cultural elements, and the protection and augmentation of fishery resources.

(2) Zoning-district

The Minister of Construction and Transportation or the Mayor/Do (province) governor will make decisions on the designation or alteration of a zoning-district falling under one of the following categories. ∘ Scenery zoning-district: districts needed to protect and create sceneries/scenic vistas. ∘ Fine view zoning-district: districts needed to maintain fine views. ∘ Height zoning-district: districts needed to regulate the minimum or maximum

32 2. Land development system and policy of Egypt and future policy directions

height limits of buildings in order to create pleasant environments, and to accommodate the highest-level utilization of land and land improvements. ∘ Fire-prevention zoning-district: districts needed to avert the threat of fire. ∘ Disaster-prevention zoning-district: districts needed to prevent storm and flood damage, landslides, ground collapse, and other natural disasters. ∘ Conservation zoning-district: districts needed to protect and conserve cultural heritage, major installations, and areas of great conservation value both culturally and ecologically. ∘ Facility protection zoning-district: districts needed to protect schools and other public facilities, harbors, or airports to ensure flight safety, and enable businesses to function efficiently. ∘ Settlement zoning-district: districts for consolidating settlements within green areas, control areas, agricultural and forest areas, natural environment conservation areas, or the restricted development zone. ∘ Development promotion zoning-district: districts needed to develop or consolidate concentrically the functions of dwelling, commerce, industry, distribution, logistics, tourism, and recreation. ∘ Specific-use restricted zoning-district: districts needed to restrict the location of specific facilities such as those harmful to juveniles for the purpose of protecting juvenile populations and residential areas, in general. ∘ Apartment zoning-district: district needed for massive construction or management of apartments through projects defined by the Housing Construction Promotion Act. ∘ Amusement zoning-district: district needed for grouping amusement facilities to protect the environment of other areas. ∘ Remodeling zoning-district: district needed to improve residential conditions while maintaining the status quo.

(3) Zones

There are three special zones designated by the Minister of Construction and Transportation. ∘ Development-Restriction Zone: In cases where the Minister of Construction and Transportation considers it necessary to restrict urban development in order to secure sound living environment for urban residents by preventing disorderly urban expansion, conserve natural environment around cities, or restrict urban

33 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

development on the ground of national security upon request from the Minister of National Defense, the former Minister may determine under urban management planning any designation or alteration of a restricted development district. ∘ Urbanization-Coordination Zone: In cases where the Minister of Construction and Transportation considers that, either ex-officio or upon request from the heads of related administrative agencies, it is necessary to reserve urbanization during a specific period, set under the Presidential Decree, in order to prevent disorderly urbanization of the area, or its peripheral areas, and to ensure planned and phased development, the said Minister may determine under urban management planning any designation or alteration of the urbanization-coordination zone. ∘ Fishery-Resources Protection Zone: The Minister of Construction and Transportation may, either ex-officio or upon request from the heads of related administrative agencies, determine under urban management planning any designation or alteration of the fishery-resources protection zone, with regard to the public waters, necessary for the protection and augmentation of fishery resources or the land adjacent thereto.

2.2.2 Land development

1) Legal system for urban land development

Land development schemes can be classified variously; New development and re-development by characteristics of development, public and private development by originator, large and small development by project scale, etc.

Development schemes can be classified into two categories according to the need for purchasing land for a project. Usually the private sector does not need to purchase land, because the developer himself is the landowner or the cooperatives of landowners. Land readjustment or private owner's Residential Site Development pursuant to the Urban Development Act are the examples. The public land within a project boundary is usually given to the developer without charge during the project, while the land for public use within a project boundary is resumed to the state without charge after project completion. But if the developer is the public sector, it must purchase land from the owners with adequate compensation.

is the summary of land development schemes.

34 2. Land development system and policy of Egypt and future policy directions

Summary of land development schemes in Korea Date Type Laws Project title Main contents enacted ∘Public management project according to the Public 1980.12.3 Residential Site Promotion Law RSDP Law Management 1 -The third sector project (public-private joint project) Project is allowed 1999. 1. 25 ∘Three types of urban development methods are stipulated New Urban Urban ∘First, compulsory acquisition and development type develop Develop. 2000.1.28 Development ∘Second, land readjustment (land pooling) -ment Law Project development type ∘Third : combination of both types ∘Revision of the former Housing Construction Housing Housing Promotion Law of 2003.5.29 Construction Law ∘Private sector's housing construction project and Project housing site development project are stipulated. ∘Unifying the former Urban Redevelopment Law of Urban and Residential 1976, Measures for Improving Urban Poor's Re- Residential 2002.12.3 Environment Residential Areas of 1981, and Housing Construction develop Environment 0 Improving Promotion Law of 1977 -ment Improving Project ∘Urban re-development project Law ∘Housing re-construction project

2) Main mechanism for new development

(1) Land substitution

The traditional scheme for urban development is land readjustment (LR). The legal basis for the LR project dates back to the Joseon Urban Planning Law of 1934, which was the origin of the Urban Planning Law of 1962. From this law, the Land Readjustment Law was separately enacted in 1966, and then integrated into the Urban Development Law of 2000.

The LR project had been utilized very efficiently, particularly for reconstructing existing urban areas after the Korea War from 1950 to 1953. Most urban areas of the nation were destroyed during the War. In addition, after the War, most refugees from North Korea numbering several millions settled down around urban areas. But the state, liberalized just few years before, did not have enough financial capability to reconstruct the destroyed urban areas. The LR scheme was highly attractive to the state; land for public facilities and infrastructures (around 30% of the project areas) could be obtained free of charge, and also the state did not need to burden the construction costs. The cost was covered by selling the land for cost-equivalent (around 20% of project areas) after project completion.

35 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

After the state inaugurated economic development plans from 1962, the LR project was welcomed again, because of the similar reasons. Particularly during the 1960s and 1970s when migration from rural areas increased and thus urbanization precipitated, LR played almost monopolistic roles in developing urban areas. In fact, most of the existing big cities including Seoul had been developed through LR projects.

Achievements of land readjustment projects (Unit: 1,000㎡) Implemented Designated Planned Finished In progress Sites Areas Sites Areas Sites Areas Sites Areas Total 749 549,213 542 477,212 - - 86 28,804 Until '50s - - 9 13,801 - - - - 1960s - - 65 38,962 - - - - 1970s - - 163 175,524 - - - - 1980s - - 148 190,606 - - - - 1990s - - 137 52,762 - - - - 2000s - - 20 5,557 121 43,197 - -

Source : The Ministry of Construction & Transportation, Annual Report of National Land Use, 2004.

The private owner or the cooperatives of landowners can be the LR project originator. Nevertheless, most of the LR projects have been conducted by the public, including local governments and public enterprises. And thus 76.6% of the project sites or 87.8% of the project areas have been developed by the public sector. The remaining 23.4% of the sites or 12.2% of the areas have been implemented by the private sector, mostly the cooperatives of landowners. There was just one case of the LR project implemented by an individual owner (Seoul City, 1990).

LR projects by areas

180,000 160,000

s 140,000 120,000 100,000 80,000 60,000

000 saure meter 40,000 20,000 -

till 1950s 1960s 1970s 1980s 1990s 2000s

Land readjustment projects by period

36 2. Land development system and policy of Egypt and future policy directions

Readjustment by projectors (by site number basis)

23.3

localities 1.5 public enterprize private

75.2

Land readjustment by projector (on a site number basis)

Readjustment by projectos (by areas)

12.2 1.6

localities public enterprize private

86.2

Land readjustment by projector (By project area)

Gradually more attention had been paid to the negative effects rather than positive effects of the LR projects. Among others, enormous amount of the development gains created by the LR projects was solely returned to private landowners, mostly because of the lack of a relevant mechanism to collect capital gains. LR projects resulted in a severe inequality in allocating land value increments, not only between landowners and the landless, but also among different income groups and between first home buyers and tenants. It caused the rise in social conflicts. Finally, the state prohibited the utilization of LR within big cities including Seoul from 1984. And the so-called Public Management Development (PMD) projects have become prevalent since the early 1980s by enacting the Residential Site Development Promotion Law of 1980.

37 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

3) Public Management Development (PMD) projects

During the late 1970s, land speculation prevailed throughout the country, but on the other hand, it was realized that LR projects and other public development pursuant to the Urban Planning Act were not enough to supply urban land. To coordinate the need for urban land and controling land speculation, special measures were devised at need. The Residential Site Development Promotion Law was enacted in 1980, and its main contents in order can be summarized as follows: ∘ Developing Comprehensive Housing Construction Plan ∘ Consulting with the central and local governments regarding the Plan ∘ Designating Residential Site Development Planned Zone according to the Plan ∘ Choosing developers from the central government, local governments, and public enterprises (The private sector was not allowed to participate in the PMD project until 2000.) ∘ Implementing project plans financed with the developer's own funds ∘ Reselling the serviced land in the private market

Various favors have given to the PMD projects; yet other kinds of projects have gone through a much more complicated process. For instance, any urban development of public and private sector has to obtain prior approval, permit, decision, or agreement from the concerned department pursuant to concerning laws such as the Urban Planning Law, the Road Law, the Forest Law, etc. But after obtaining approval for the PMD projects from the Ministry of Construction and Transportation, other administrative approvals pursuant to a total of 33 development laws must be obtained.

Since the 1980s, the PMD projects have played a basic role of expanding urban land, mostly housing sites and infrastructure. During the last 20 years, the total amount of 489㎢ has been developed by the projects. All of them were carried out by public organizations; 42.7% by the Korea Land Corporation, 14.1% by the Korea Housing Corporation, 4.6% by the Korea Water Resources Corporation, and 38.5% by local governments. The projects have become very popular, particularly, in big cities. As a result, 48% of the total projects were carried out in the Seoul metropolitan area, and 18% in other special cities.

38 2. Land development system and policy of Egypt and future policy directions

Achievements of public management development by projector (Unit : 1,000㎡) Total 81-85 86-90 91-95 96-00 01-04 Total 612,540 73,800 120,913 158,027 136,438 123,362 Koland 261,958 30,250 59,310 65,255 54,254 52,889 KHC 101,293 10,946 18,982 20,378 18,789 32,198 KWRC 24,326 - - 11,905 10,731 1,690 Localities 224,963 32,604 42,621 60,489 52,664 36,585

Public management projects by periods Public management project by projectors

300000

s 250000

200000 36.7 Koland 42.8 150000 KHC KW RC 100000 Locality 000 square meter 50000 4.0 0 16.5 81-85 86-90 91-95 96-00 01-04

Achievements of public
Public-led development management development by period

Source : The Ministry of Construction & Transportation, Annual Report on National Land Use, 2005.

Public management development by location (Unit : 1,000㎡) Total 81-85 86-90 91-95 96-00 01-04

Total 612,540 73,800 120,913 194,027 100,438 123,362

Capital Region 299,822 41,422 61,503 73,251 61,237 62,399

Seoul 54,633 22,120 20,942 4,377 2,152 5,042

Inchon 29,862 4,538 7,180 6,774 5,825 5,545

Kyonggi 215,037 14,764 33,381 62,100 53,260 51,812

Special Cities 104,283 5,700 22,207 33,921 24,757 17,698

Local Provinces 208,445 26,678 37,203 86,855 14,444 43,265

39 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Public management projects by location

8.9 4.9

34.0 Seoul Inchon Kyonggi Special Cities 35.1 Provinces

17.0

Public management development by location

4) Other new development schemes

In addition to the LR and PMD projects, both public and private sector can implement urban development projects pursuant to other relevant laws.

One is the Housing Site Development (HSD) project pursuant to the Housing Construction Promotion Act of 1977, which was integrated into the Housing Law of 2003. The project was allowed both public and private sector to develop a housing site more than 10,000㎡. Nevertheless, the projects were not utilized widely and efficiently. Until 1998, only 18.9㎢ of land was developed under this scheme. Rather, it was more frequently used by private organizations (71%) in local areas (77%).

Achievement of housing site development (Unit: 1,000㎡) Total Completed Under Development Planned Location # of site Acreage # of site Acreage # of site Acreage # of site Acreage Total 1,054 18,911 842 13,905 170 3,963 42 1043 Gwangju 6 105 0 0 4 76 2 29 Gyeonggi 300 4,386 204 2,439 78 1,638 18 309 Gangwon 293 4,589 253 3,827 33 630 7 132 Chungbuk 66 783 59 633 7 150 0 0 Chungnam 347 5,588 293 4,304 43 988 11 296 Jeonbuk 4 202 3 176 0 0 1 26 Jeonnam 4 1,963 4 1,963 0 0 0 0 Gyeongnam 23 1,042 19 414 3 412 1 216 Geongbuk 3 44 0 0 1 9 2 35 Jenu 8 209 7 149 1 60 0 0

40 2. Land development system and policy of Egypt and future policy directions

The other is the Residential Site Development (RSD) project pursuant to the Urban Planning Act of 1962. The projects were basically implemented within urbanized areas according to the Urban Planning regulations of each locality. After the enactment of the Residential Site Development Promotion Law, the projects gradually disappeared. And then, its scheme was integrated into the Urban Development (UD) project under the Urban Development Law of 2000. The law emphasizes the importance of private sector's role in urban development.

Until now, 59 sites have been designated as UD project areas, which amount to a total of 23.5㎢, and the project seems not to have been utilized very well. However, we expect that the role of the project will be crucial in urban development in the near future. This is because privatization and de-regulation are being accepted by the society as inevitable trends. On the other hand, the central government's financial capacity has become a critical factor in continuing the Public Management Development (PMD) schemes. In the PMD projects, the central government has to purchase undeveloped land to build infrastructure on it, and re-sell the serviced land to the private sector - individuals and construction companies. However, most of the government's finance must be mobilized for economic re-structuring rather than urban development projects. These are what real situations have demanded in recent years.

Achievement of urban development project (Unit: ㎡) Year 2001 2002 2003 2004 Total Seoul 0 0 911,429 4,248,657 5,160,086 Capital Gyeonggi 753,085 0 1,575,098 3,538,882 5,867,065 Region Incheon 0 0 87,779 2,508,481 2,596,260 Sub-total 753,085 0 2,574,306 10,296,020 13,623,411 Daejeon 0 232,209 0 0 232,209 Chungnam 129,139 0 0 3,714,230 3,843,369 Gyeongnam 134,480 25,423 836,750 89,059 1,085,712 Geongbuk 0 0 42,150 548,350 590,500 Pusan 0 53,860 0 0 53,860 Local Ulsan 0 0 338,342 996,500 1,334,842 Areas Gwangju 16,067 15,829 116,935 0 148,831 Jeonnam 0 23,657 0 0 23,657 Jeonbuk 0 2,519,690 0 29,649 2,549,339 Gangwon 145,200 0 16,929 35,602 197,731 Jenu 0 430,000 945,522 401,014 1,776,536 Sub-total 424,886 3,300,668 2,296,628 5,814,404 11,836,586 Total 1,177,971 3,300,668 4,870,934 16,110,424 25,459,997

41 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Another scheme is New Town Construction. The Seoul (capital) metropolitan area has been too much concentrated and congested, and to decentralize it, new towns have been constructed.

One is the case of Banwol-Ansan site, which is located to the west of Seoul. Since 1977, the site area of 57.8 ㎢ had been developed to move out 1,000 factories from Seoul. As the first phase of the project was completed, 1,160 factories moved into the site and 560,000 residents have settled in there. After the completion of the second phase, additional 140,000 people are expected to moved into the site.

The other is the case of Shihwa site adjacent to the Banwol-Ansan site. This is the reclaimed land that occupies an area of 57.4㎢. The project began in 1986, and the first phase of it has been just completed. The main purpose of the project is to develop an industrial estate as well as agricultural zones in the site.

The most dramatic case is the Five New Towns Development in the Capital Metropolitan Area from 1989 to 1996. The project was a part of the 2 Million-unit Housing Construction Program in order to deal with hundreds and thousands of housing problems in a more comprehensive way. Housing shortage, land and housing speculation, and, particularly, shortage of developable land have made a large scale housing construction in the capital region extremely difficult.

Achievements of the 2 million-unit housing construction program (Unit: 1,000 unit) 1988 1989 1990 1991 1992 Total

Permit granted

Total 317 462 750 648 600 2,777 - Public 115 161 270 220 250 1,016 - Private 202 301 480 428 350 1,761

Total upon completion 287 353 572 695 631 2,538

The five new towns are located within a 25km radius from the center of Seoul. They were developed as complete living-and-working towns. The development project was carried out with an unprecedented scale in the planning history of Korea; over 300,000 residential units were to be supplied in five years, and a lot of private firms and public organizations were relocated during the period.

42 2. Land development system and policy of Egypt and future policy directions

Sketch of the Five New Towns Bundang Ilsan Jungdong Pyeongchon Sanbon Area (ha.) 1,984 1,573 544 495 419 Planned Population 390,000 276,000 170,000 170,000 170,000 No. of Housing Units 97,500 69,000 425,000 425,000 425,000 Buchon City Developer Koland Koland Koland Koland KHC KHC Construction Period 1989-93 1989-93 1989-93 1989-93 1989-93

The urgent need for increase in housing supply has forced the central government to make all its efforts to carry out the project as scheduled. To maintain the efficacy of the project, the government has emphasized the following three points: the role of the government as a coordinator of conflicting interests from various actors, flexibility in the process of housing construction closely observing the dynamics of the housing market, and maximizing of the private sector's potential.

For this purpose, the Housing Redemption Bond System was introduced. This system, which allows private developers to issue bonds that can be redeemed for houses, works smoothly but delinquent to the dual pricing system in the housing market, in spite of its very low rate of interest compared to that of other types of bonds and savings. Significantly low price of new homes compared to those of second-hand houses guarantee capital gains for bondholders. Another measure to induce private developers is substituting fixed price ceiling. In this new system, price ceiling is set to reflect change in land and housing construction costs based on the standardized criteria of labor wages and material prices.

On the other hand, different housing supply schemes were adopted for different income groups of people. Particularly, the bottom 10% of the households in income level were supposed to be provided with 190,000 units of low rent public rental housing. For this, the government spent 3.5 trillion Won (29 billion in US$), which was 85% of the total construction costs for the New Town project.

To popularize the rental and small-sized housing, land prices were differentiated into three categories; the price of land for medium-sized housing below the national standard (85 ㎡) constitutes the base price, and land for rental housing is priced at 90% of the base price. In addition to these, the price of land for housing larger than the standard size is calculated based on the equivalent market value.

43 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Land use plan of the New Towns (Unit: 1,000㎡ (%)) Bundang Ilsan Jungdong Pyeongchon Sanbon

Residential 614.1 (32.4) 528.3 (33.6) 180.4 (33.2) 193.6 (39.1) 191.2 (45.6)

Commercial 85.5 (4.5) 45.7 (2.9) 51.7 (9.5) 18.3 (3.7) 22.8 (5.4)

Business 72.5 (3.8) 106.3 (6.8) 20.7 (3.8) 4.1 (0.8) - ( - )

Schools 72.1 (3.8) 59.7 (3.8) 42.5 (7.8) 34.3 (6.9) 32.5 (7.8) Administrative 16.0 (0.9) 9.0 (0.5) 16.6 (3.1) 15.3 (3.1) 8.7 (2.1) Facilities Roads 380.4 (20.1) 304.7 (19.4) 115.1 (21.2) 112.7 (22.8) 54.5 (13.0) Parks and Open 365.5 (19.3) 372.9 (23.7) 66.3 (12.1) 70.2 (14.3) 63.6 (15.2) Space Other 287.9 (15.2) 146.4 (9.3) 50.6 (9.3) 46.2 (9.3) 45.6 (10.9) 1,894.0 1,573.0 543.9 494.7 418.9 Total (100.0) (100.0) (100.0) (100.0) (100.0)

- Enclosed numbers are differences in land preparation between public and private housing

There is no difference between the public and private developers in land preparation for housing. Usually the private sector-developed land was used for private housing, but there is one exception in the land readjustment project. Some portion of the available land within the LR project had to be reserved for appropriating the construction cost. This land had been used for public housing, even if the LR project was conducted by private parties.

Most of the land developed by the public sector had been sold to private developers to construct private housing, and the remaining land was used for public housing. In this context, the Public Management Development project has a unique characteristics Each serviced land had been differently priced according to their uses. For instance, if a land is developed for public(rental) housing, its selling price is decided upon at the 60-95% of the construction cost. If a land is developed for public facilities such as fire stations, the selling price is decided upon at its full construction cost. For other commercial uses, the selling price is decided upon either at the appraisal price or auction price.

44 2. Land development system and policy of Egypt and future policy directions

Criteria for the land prices supplied by the PMD projects (Unit: %) Location Purposes Seoul, Busan Big cities Others Rental housing under 60 ㎡ size 60 60 60 Rental housing of 60-85 ㎡ size 85 70 60

㎡ Seoul : 90 Public housing under 60 size Busan : 95 90 80 Public facilities 100% of the construction costs Residential site supplied to the land owner Detached housing site Other housing site Appraisal prices School Commercial Bidding prices

5) Main mechanism for re-development

(1) Residential Environmental Improving (REI) project

The REI project aims basically to improve living conditions for underprivileged urban areas, where public infrastructure is not sufficient and deteriorated buildings are clustered. The government has provided various beneficiaries to induce people to these areas. For instance, public land on the REI project site is delivered for free. During the last five years, the government invested 1,600 billion Won (about US$ 1,600 million) to install new urban infrastructure including roads, water and sewerage in the areas.

Achievement of the PEI Project Total Seoul Busan Daegu Incheon Gwangju Gyeonggi Honam Yeongnam Others # of site 815 105 141 64 55 47 61 119 79 144 # of housing 206 18 46 21 17 13 13 31 21 26 (000 units)

Source : The Ministry of Construction and Transportation, Housing Bureau, December 2004

(2) Urban regeneration

In addition to the REI Project, urban regeneration projects have been conducted mostly within Central Business Districts(CBDs) of large cities with more than one million population. At the end of the year 2003, the government designated 517 sites as Urban Regeneration (UR) areas, and 154 sites of them were completed and 57 sites were under development. As of 2003, 95% of the sites (489 out of 517) were located within Seoul.

45 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Achievement of urban regeneration (Unit: %) Designation Completed Under development Planned # of site Acreage # of site Acreage # of site Acreage # of site Acreage Total 517 2,357 154 715 57 383 306 1,259 Seoul 489 2,152 146 654 55 364 288 1,134 Busan 20 150 3 21 2 19 15 110 Daegu 8 55 5 40 - - 3 15

Note : The achievement is the sum of the projects conducted from 1962 to 2003. Source : The Ministry of Construction and Transportation, Housing Bureau

(3) Housing re-construction

When a house is too old and dangerous to live in, its reconstruction is allowed in accordance with the Urban and Residential Environment Improving Law of 2003. So far, a total of 2,663 cooperatives for housing reconstruction have been established, and 911 sites of them were completed. In other words, 932 sites are under construction.

Achievement of housing re-construction Total Complete Under construction Planned # of housing # of housing # of housing # of housing % % % % coops supplied coops supplied coops supplied coops supplied Total 2,663 100 321,026 911 100 118,206 932 100 100,188 820 100 102,632 91. Capital 2,374 89.1 243,094 834 91.5 96,275 848 76,990 692 84.4 69,829 0 Rural 289 10.9 77,932 77 8.5 21,931 84 9.0 23,198 128 15.6 32,803 69. Seoul 1,911 71.8 166,535 732 80.4 80,116 651 48,595 528 64.4 37,824 8 Busan 85 3.2 23,183 19 2.1 5,523 19 2.0 5,027 47 5.7 12,633 Daegu 68 2.6 13,878 23 2.5 4,975 14 1.5 3,088 31 3.8 5,815 Incheon 81 3.0 16,771 24 2.6 3,434 47 5.0 10,433 10 1.2 2,904 Gwangju 4 0.2 933 - - - 4 0.4 933 - - - Daejeon 12 0.5 4,803 5 0.5 2,415 4 0.4 1,491 3 0.4 897 Ulsan 20 0.8 7,702 3 0.3 3,466 9 1.0 3,079 8 1.0 1,157 Gyeonggi 382 14.3 59,788 78 8.6 12,725 150 16.1 17,962 154 18.8 29,101 Gangwon 23 0.9 8,736 6 0.7 1,807 5 0.5 825 12 1.5 6,104 Chungbuk 8 0.3 1,723 3 0.3 67 1 0.1 3 4 0.5 1,653 Chungnam 6 0.2 1,463 3 0.3 846 1 0.1 568 2 0.2 49 Jeonbuk 10 0.4 1,722 4 0.4 469 6 0.6 1,253 - - - Jeonnam 7 0.3 1,742 - - - 7 0.8 1,742 - - - Gyeongna 10 0.4 7,260 4 0.4 1,458 3 0.3 3,556 3 0.4 2246 m Gyeongbuk 36 1.4 4,787 7 0.8 905 11 1.2 1,633 18 2.2 2,249 Jeju ------

Source : The Ministry of Construction and Transportation, Housing Bureau

46 2. Land development system and policy of Egypt and future policy directions

2.2.3 Implications

Korea is a highly urbanized country with nearly 90 % of the nation’s population concentrated in urban areas (MOCT, 2002). Korea's marvelous progress in transportation and telecommunications technology has made it no longer meaningful to artificially delineate urban and rural areas. Nonetheless, the Korean government has gotten itself absorbed in the urban and rural dichotomous planning and land-use control system. However, there is an increased awareness that the plan-led spatial management system should be introduced to Korea mainly because of the changing circumstantial paradigms such as globalization, deregulation and decentralization.

Specifically, land-use deregulation brought about disordered small scale developments especially in urban fringe areas. Along with the world-wide trends- deregulation and globalization, the semi-agricultural zone that aims at both increasing land provision and stabilizing land price was introduced to Korea in 1993. As a result, a vast amount of undeveloped land was approved to be developed in the zone. However, since the emergence of the semi-agricultural zone, many urban problems such as lack of infrastructure and living facilities, and encroachment of good farm-land and environmental contamination have frequently occurred. Such careless developments were used as the primary justification for reforming the planning system.

In addition, land-use conflicts among local governments are now deepening who wish to develop their own land without consulting with neighboring local governments. The reinforcement of local autonomy makes local governments establish their own spatial plans and gives a birth to fragmented land-uses. Many local governments try to conduct development projects as many as possible exploiting natural resources as a way to secure local tax revenues. Within this context, the second justification for extending the role of city-wide land use planning was made.

Also, public's raised awareness about the importance of planned use and preservation of land is one of the key motivations to reform the planning system. So far, land policies in Korea have been considered as means of economic development and housing provision. However, voices demanding a plan-led land use system have been raised along with the awareness of the importance of environmental value and criticism against disordered land developments. In advanced countries, the functions of land use plan are recently changing from traditional ones focusing on the forecast and

47 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

allocation of land demand to growth management and environmental plans. Nowadays, a land use plan is regarded as a measure to control the timing and cost as well as intensity and density of land use. For these reasons, it is necessary to affirm such a gist that there is no development without a comprehensive plan, which is basically repositioning the function of spatial plans in Korea.

1) Low effectiveness of the planning system

Generally, it has proven that the Korean planning and land-use control system was not effective because it was complicated and duplicated, and had unclear linkage among plans among many other reasons. For example, many zones were designated under planning Acts and relevant individual laws in Namyangjoo-shi, located in the eastern part of the Seoul Metropolitan Region. The city had many plans based on individual laws (e.g. transportation master plan and environmental management plan), as well as plans aimed at conducting a special project (e.g. housing site development plan and industrial complex development plan). What made matters worse was that there was little linkage among these plans.

Low effectiveness of the planning system in Korea also arose from two separate legal frameworks : one led by the National Territorial Use and Management Act, and the other by the Urban Planning Act. Such a dual system of legal frameworks caused separation in the planning and land-use control system, which constrained efficient land use management at the local level. The Korean planning and land-use control system was dualistic by its area coverage : the city planning area and the non-city planning area. Most Korean planners recognize that such dualistic nature of the planning and land-use control system was the fundamental cause of failure in planning, particularly for the non-city planning area.

2) The detailed Contents

In this context, a new planning Act, named the National Territorial Use and Development Plan Act, combining the National Territorial Use and Management Act with the Urban Planning Act, has been enacted. According to the new planning system, local governments must prepare a city master plan and a city management plan for their area. However, they must conform generally to the provisions of any higher plans (e.g. national or regional plans). The idea of the new planning system, in practice, implies that urban planning tools can be applicable to non-city planning

48 2. Land development system and policy of Egypt and future policy directions

areas. In this way, the central government expects the new planning system to solve disordered developments, particularly in urban fringe areas. In this sense, the new system can be regarded as a growth management strategy.

The new planning system has four types of city plans : city-wide plan, city master plan, city management plan, and district plan. Of these, city-wide plan provides guidelines to city master plans and city management plans within the wide-area planning zone. The new planning system emphasizes the role of the city-wide plan. In doing so, some procedures are introduced into the new system. The governors of metropolitan cities and provinces can designate a city-wide planning zone. If the zone is designated, it cannot be changed in principle. In the same manner, once a city-wide plan has been established, it cannot be reviewed within the planning period. The principles of plan-making are comprehensiveness, close linkage among plans, and rationality of plan contents. The governors should listen to the mayors and hold a public hearing, in which, planning experts, citizen representatives, and relevant agencies can participate. At that time, a survey for collecting citizens’ opinions can be conducted. The draft would be submitted to the Minister of Construction and Transportation, and approved through due process.

The city master plan is redefined as a policy-oriented, comprehensive, and strategic plan, according to the new planning Act. However, the master plan includes not only physical and spatial aspects but also social and economic aspects of a city. Particularly, the scope of the plan covers almost all the physical aspects, such as spatial structure, distribution of population, land use and development, transportation, environment, infrastructure, skyline, park and green space. Such comprehensiveness and concreteness tend to impede the flexibility of a master plan, which guides a detailed management plan over a long period. In this context, the new planning system appears to be less flexible than the previous one.

The definition and position of the urban management plan is almost the same as the previous urban rearrangement plan defined as a mid-term physical plan. The plan lies between the master plan and the district plan. It means that the plan should conform to the master plan, and that it should provide district plans with detailed guidelines. Once the plan is established, it cannot be changed in principle within five years.

The district plan is one of the most important tools of the new planning system. According to the new planning Act, the scope of the district plan established at the

49 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

district level is extendable to non-city planning areas. The key aim of the plan is to promote ordered developments in undeveloped land located outside city-planning areas.

In addition, the new planning system includes planning tools such as specifications of a management zone by land suitability assessment, and introduction of the development permit system, development charge system similar to the British planning gains and American development impact fees, density management zone, etc. Of these, extension of the development permit system to non-city planning areas is notable. This means that the style of development control is partly changed from a zoning permit system to a development permit system. At the same time, it implies that planning officers have some discretionary power. Thus, local planning authorities can decide on the applications for development permission.

However, the new planning system has some limitations, along with its strengths. Low flexibility of a planning system, low planning officer’s specialty, and small social capital of the Korean society are some of them.

3) The frame of the process

One of the major papers in Korea, the Joong-Ang Daily, gave a prominent coverage of disordered developments in Young-In, located in the southern part of Seoul on the 19th of May, 2000. After that, major papers strove to be the first to report the issue. Since then, the central government has made an effort to check disordered developments particularly in urban fringe areas. Comprehensive policy measures for preventing disordered developments were announced, and consequently, the advisory committee and practical sub-committee, composed of private experts and relevant planning officers, were constituted. The first draft of the new planning system, written mainly by planning experts, was revised gradually by way of public hearings and a wide range of discussions with stakeholders. The new planning law was enacted on the 4th of February 2002. Detailed regulations for its practical use were decided upon via public hearings and other procedures. The new planning law will come into effect this year.

The proceedings show that planning experts played a dominant role in shaping the new land use management and planning system. They argued that a plan-led land management system was inevitable to reduce disordered small developments. However, there was a limitation because of the Korean planning system characterized

50 2. Land development system and policy of Egypt and future policy directions

by the very weak linkage with implementation. This was due to the absence of statements for both timing and sequencing of plan implementation and infrastructure provisions, which come with a plan except large-scale urban developments. Most planning experts thought that such a planning system and land use controls could not lead orderly development in the absence of concurrent provisions of infrastructures and public services. Therefore, one of the key agendas for reform was a concurrency issue. In other words, the most important concern of the discussants was how to provide public facilities and services that will support urban and rural developments.

4) Conclusion

In conclusion, the Korean planning system has been now changed from the dual urban and rural planning system to a unitary urban-rural continuum system of planning and developments. In addition to this, new planning instruments, such as special district plans, development permit systems, and development impact fee systems that proved to be excellent in Germany, England and U.S.A were introduced. However, one problem is that the introduction of such planning tools, in itself, does not ensure a good performance. No matter how good they may be, they can produce poor performance in a different context.

Also performance of the new planning system depends on the capacity of local governments. In a highly centralized country, like Korea, local governments are barely able to prepare their own city plans without constructive instructions by the central government. They also have been operating zoning regulations, which were uniformly applied across the country with very little local discretion. Now, they should prepare a city master plan, management plan and sometimes a few district plans for their area. And they must lay down for themselves detailed policies against which applications for permission will be judged. To do so, they should have high practical knowledge and experiences. Efforts for reform may be fruitless in the absence of these.

Finally, it appears that the new Korean planning and land-use control system depends heavily on the efficacy of planning in spite of lots of failures related to the planning. There is no recognition of the limitations of the planning in the new planning system. However, rapid urban change and developmental needs cannot be fully met by planning activities. Rather it tends to be largely determined by market mechanism and the behavioral pattern of people. In this context, planners in Korea should bear in mind that planning-exclusively can not achieve a great success.

51 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

2.3 Comparative analysis of land development policies

2.3.1 The bases of comparison

- Concept of land ownership: absolute land ownership vs. relative land ownership - Planning system: top-down approach vs. bottom-up approach - Land use control system: zoning vs. development permit system - Land development method: land substitution vs. expropriation by public sector

2.3.2 History of land development and concept of land ownership

The Ottoman law of 1858 prohibited private land ownership in Egypt, and all the farmland was owned by the State. This tradition continued until 1952, when the farmland reform was conducted. Nevertheless, in practice, private land ownership, though prohibited, was mostly allowed. Therefore, there was a serious problem of monopolistic and oligopolistic land ownership. 64.5% of all the land rested with just 5.8% of the landlords.

The primary goal of the farmland reform of 1952 in Egypt was to prevent excessive land ownership. An individual’s ownership of farmland was limited to only 200 feddan (1 feddan = 4,201 m2) and what exceeds this size was forfeited by the government. In 1961, the existing limit was further reduced to 100 feddan of farmland, and forfeited lands were redistributed among two-million tenant farmers.

The farmland reform was effective in rooting out poverty of tenants, but it was not effective in raising the productivity of agriculture. Agriculture grew by less than two percent, which was even less than the population growth rate of three percent. Therefore, the direction of land policies was changed to increase private land ownership and agricultural productivity at the same time. The government pushed forward reclamation of desert areas and stimulated private land ownership by selling reclaimed lands cheap.

The Law of Farmland Reform, legislated in 1952, was abrogated in 1992. After the

52 2. Land development system and policy of Egypt and future policy directions

reform in 1992, most landlords retrieved their lands and imposed rents at market prices. Consequently, rents have risen at least seven times, and up to twenty-two times in some cases, after the reform. The government tried to improve the function of the land market via the policies, but its efforts fell short because of the problems surrounding the land registration and cadastral record systems.

The Korean and Egyptian land ownership systems are similar but different in some ways. Both countries have introduced farmland reform for modernization. Farmland reform was enforced in 1948 in Korea and in 1952 in Egypt. The objectives of the reforms of the two countries were also comparable – to increase the numbers of landed farmers by redistributing farmland, to improve productivity in agriculture, and to set up a basis for efficient agricultural management.

However, there are differences in land ownership between the two countries. Absolute land ownership is recognized in Korea, while Egypt recognizes relative land ownership with restrictions. Freehold and leasehold are the forms of relative land ownership in Egypt. The differences stem from distinct traditional legal systems. The Korean law is close to the Continental law, while the Egyptian law is close to the Anglo-American system because of Egypt’s colonial past and subsequent moves toward Socialism. Therefore, Egypt does not recognize private land ownership as an absolute right.

The systems of land ownership of a country are shaped by its history. In Egypt, laws related to land ownership and land use control have been heavily influenced by traditional customs, Islamic law, and English and French legal systems. Land is owned by the State, in practice. In urban areas, only the land and the house on it are recognized as private properties. This tradition reflects that most of the land is desert. Therefore, there are very strict regulations on land use.

Comparison of land ownership Bases of comparison Korea Egypt

Concept of ownership Absolute land ownership Relative land ownership

Relationship to the right of use Emphasis on land ownership Emphasis on land-use

Principle of freedom of building Yes No

53 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

2.3.3 Political and administrative framework for urban planning and land development

The political and administrative structures and organizations in Egypt are more centralized compared to Korea’s. The president heads a cabinet at the central government, and at the local level, there is a governor appointed by the president and a council formed by elected council members. The local administrative class is in the order of governorate, province (village), city, and district. In each council, there is an administrator and an executive committee.

There are many institutions and organizations involved in land development in Egypt. In the central government, the Ministry of Planning, the State Ministry of New Urban Communities, and the Ministry of Housing and Public Utilities are involved in land development. The State Ministry of New Urban Communities and the Ministry of Housing and Public Utilities are consolidated.

There are also some government agencies that play an important role in land management. The Central Authority for International Development, New Urban Communities Authority, and General Organization for Physical Planning are some of them. Other government agencies, such as the National Investment Bank, the Ministry of Development, and the Ministry of Local Government, have also influenced executing land development projects.

The complex organization of the land development system creates problems of ambiguity in the roles of each organization and poor cooperation among them. Moreover, such central organizations that have authority modify local development projects in ways that are insensitive to local development demands.

The political and administrative systems related to planning and development in Egypt are different from those in Korea. Because appointed officials and elected officials are mixed in the Egyptian system, local autonomy is limited, while Korean municipalities are autonomous. Especially, the dual, top-down decision-making process is commonplace in Egyptian administration for its historical antecedents. More cases are determined based on cultural and political considerations rather than administrative efficiency. Since Egypt has a tradition of a strong presidential system, the role of the

54 2. Land development system and policy of Egypt and future policy directions

public council is also limited. The central government makes decisions on major plans, budgets, and regulations, while local governments are in charge of public finance, district plans, and enforcement of the plans. This causes inconsistency between plans and implementation.

2.3.4 System of urban planning and development

1) System of urban planning and development control

In 1960, a new local administrative system was introduced in Egypt to expand the authority of local governments through a dual system of centralized planning and decentralized implementation. The dual system of the municipal decision-making process involves the administrative branch and the council. The administrative branch provides flexibility to the implementation of the policies, while the council allows citizen participation.

The urban planning system in Egypt is modeled after the English Town and Country Planning. In 1956, twenty-year long-term plans to guide and control development were introduced. Furthermore, a planning system composed of a structure plan, general plan, and detailed plan was also introduced. These plans were used to pursue the development of farmland, redevelop old urban areas, develop satellite cities, and construct corridors that connect new towns and cities.

The process of creating a general plan is as follows:

Setting up a planning goal → recognizing of issues → SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis → presenting alternatives → providing implementing programs →pre-analysis of the program → impact analysis → drawing policy implications and sensitivity analysis → selecting implementing program. Although this system is a rational planning process, it has never been implemented in reality.

A strategic plan for integrated urban development has been set recently. As an integrated strategy, comprehensive development planning has been set up at the provincial level and strategic plans drawn at the village level in urban areas. In desert areas, the State provides plans for new town development.

A New Urban Planning Act is being prepared for strategic planning. The central

55 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

government will establish an executive committee and a committee in which urban development-related organizations will participate. Local governments will establish regional centers to lead and supervise urban development in cities and districts being cooperated to Provinces (Urban Future in Egypt, 2004).

Urban development regulations closely monitor the subdivision of land. In Egypt, the subdivision of land, especially farmland, is only allowed in specific cases by law. However, subdivision is rare because the process is very complicated and often protracted. Therefore, illegal land subdivision is quite common when farmland near urban areas is transformed into urban areas. Subdivision of land other than farmland is possible, but it is again very complicated, drawn-out, and costly.

The development regulations, protected by law, are very strict, but their enforcement in practice is lax. Legal procedures to control development are modeled after the growth management system of Western countries, so they do not fit Egyptian urban conditions. Excessive regulations cause them to be disregarded. It is reported that more than 60 percent of the landlords who have developed their land do not abide by regulations.

2) Urban land supply system and land development methods

In Egypt, land is supplied by three sectors: public sector, private sector, and informal sector. The State Ministry of New Urban Communities is mainly in charge of land supply for new town development in the public sector. The minister determines the type and location of development according to a master plan, and also decides the amount of supply and price. The Ministry of Housing, Reconstruction and Public Utilities supplies land for public housing in existing urban areas. Local governments can supply land in their own jurisdictions.

The first step in land supply by public organizations is the expropriation of land according to a development plan. After a land use plan is established, the land in the designated site is divided for sale. Local governments provide public services, such as gas, water and sewerage, roads, parking spaces, and open spaces. Most land is owned by local governments to provide public facilities, and the rest is sold to developers and housing corporations. All areas under the land use plan are considered as a single accounting unit. The accounting unit includes the costs of land expropriation, compensation, construction of infrastructures, services, establishing

56 2. Land development system and policy of Egypt and future policy directions

plans, consulting, and interest. Earnings from developed tracts should be enough to cover the total development costs.

The private sector usually supplies lands in downtown or urban areas. Demolition, replacement, or change in the use of old buildings are examples of land supply by the private sector. However, the private sector’s role in land supply is limited because subdivision of lands is strictly regulated and private companies do not have many opportunities for a major scale development project. Since subdivision of lands is very complicated, most landlords do not observe the legally correct process. Illegal subdivision of lands is widely considered as the only reasonable choice (Araby, 2003: 445).

The informal sector supplies lands on the outskirt of cities and suburbs because the ownership of most parcels in slums is not obvious. Frequent changes and unclear provisions in policies related to subdivision of lands, land use, and land possession also encourage informal land supplies.

Urban planning and development systems in Egypt have some problems when compared with Korea's. First, while a zoning system for controlled land use is the main measure to steer land development in Korea, a development permit system is primarily used to control land development in Egypt. The development permit system in Egypt is modeled on the planning permit system used in England, but it creates some problems in practice. The process is unduly complicated, thereby making it prohibitive in time and cost-wise. Furthermore, the specialization and integrity of public officials which are essential for a development permit system, tend to be much below the desirable levels.

The second problem concerns the method of land supply. Urban development in Egypt is subject to almost complete land expropriation by the public sector. As a result, urban development by the private sector is insignificant. When the public sector purchases whole tracts of land in a designated area to develop it, it prevents the privatization of development gains, but then development costs, which are not shared by the private sector, burden the public sector. In Korea, the land subdivision, which allows the re-allocation and re-plotting of land, is also used for urban development. This method reduces resistance from landlords against the development because it respects the right of landlords to make profit. Moreover, urban development can be executed without financially burdening governments.

57 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Comparison of land development systems Bases of comparison Korea Egypt Power to develop Decentralized Centralized Characteristics of Bounded by law Less bounded by law development regulation Method of development Zoning system Development permit system regulation Officials in charge Non-specialist Non-specialist Rational and technical in Decision-making Cultural and political in nature nature Land subdivision project, and Land development by public Development method land development by public sector sector Citizen participation Active Passive/insufficient Restitution of development Incomplete restitution Complete restitution gains

2.3.5 Policy implications

1) Improvement of spatial planning system

Urban planning in Egypt had three systematic levels – structure plan, master plan, and detailed plan. However, the system has not worked well in practice since 1983 when a law prohibiting diversion of farmland was enacted. Due to rapid increase in housing demand, insufficient housing supply, increase in illegal land development, and increase in unplanned land development, new urban planning functions are required. To this end, a new type of planning, the City Development Strategic plan (CDS plan), has been introduced to replace old tools of planning. When a city needs urban development or urban rearrangement, the GOPP, a central government agency, makes a plan for the city with the assistance of governorates. Forty-two CDS plans have been developed so far.

After the establishment of the Urban Development Strategy Plan, the Detailed Plan and Action Area Plan are established at the district level for the issuing of a development permit. The planning system has been especially changed for the rearrangement of dilapidated areas in old urban districts or inferior housing. Generally speaking, the planning system in Egypt has evolved to keep up with the changes facing the country’s planning environment, but the establishment of urban planning at

58 2. Land development system and policy of Egypt and future policy directions

the local level still lacks efficiency because of the top-down approach. Therefore, it is necessary to reform the system to allow local governments to plan for themselves and strengthen their planning capacity.

2) Improvement of the development permit system

Local governments in Egypt give approval, disapproval, or conditional approval for any urban development project according to laws such as Urban Planning Act, Building Act, and other general planning regulations. Since the central government establishes the urban planning plan, while it is local governments who execute and enforce the plan, there exists a fundamental gap between planning and execution. Also, development control by local governments is not effective because of their limited abilities.

In order to enable local governments to issue development permits, the central government needs to provide general principles and criteria of land development, and governorates need to provide detailed regional guidelines reflecting the peculiarities of each region.

3) Replacement of the land development method

Land development in Egypt is mainly dependent on the public sector. Land development in old towns is led by Governorates, while new town development is led by the New Urban Communities Authority (NUCA), a central government organization. The key purpose of old town redevelopment is to resolve the problem of informal land development in urban areas, while that of new town development is to achieve a massive housing supply through construction of planned new towns.

Old town redevelopment suffers from lack of financial resources and strong opposition from existing residents, but new town development has progressed speedily. It is difficult to procure adequate financial resources to afford the cost of land expropriation and related moving expenses, as well as the cost of constructing infrastructures, such as roads, water, sewerage, and wastes disposal facilities. Although expropriated lands are compensated by the governorate in cash or in the form of apartments, whose price is determined by the Committee of Land Expropriation, residents resist land development because they do not receive any benefits. Although new town development has been expeditious, accessibility to existing major cities is in need due to poor transit systems.

59 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Although new town development supplies new housing, it is impossible to resolve housing problems of low income residents because the price of new housing remains unaffordable to them. Moreover, anyone with money can buy new housing units, without any limits, and, therefore, new housing constructed by new town development becomes increasingly the target of speculation. Since most land is developed by the public sector, development gains are mostly restituted, and the NUCA benefits hugely from new town development. There is a problem of land price differences between the lands supplied in brown land, led by governorates, and those supplied in green land, led by the NUCA. Land supplied in brown land is cheaper than that supplied in green land. This is because, in the case of the former, there is no need to construct an integrated transportation system across expanded areas.

In conclusion, the main tasks for old town redevelopment are to secure financial resources and reduce residents’ opposition. A new tool similar to land substitution in Korea is needed instead of public sector land development for activating old town redevelopment. For new town development, the NUCA should use reserved financial resources through development gain restitution to provide integrated transportation systems.

60 3. Development directions for the study areas

3.1 Tanta City

3.1.1 Gharbia Governorate

1) Overview

Egypt consists of 7 great regions; Greater Cairo region, region, Canal region, Delta region, North Upper Egypt region, South Upper Egypt region, and Assiut region. The Greater Cairo region is located near the Red Sea and faced to the Synai Peninsula. The Alexandria region includes north desert, and the City of Alexandria is located in this region. The Suez region has the Suez Canal which connects the Red Sea with the Mediterranean Sea, and the boundaries of the region are faced to the border of Israel and other Middle Eastern countries. The Delta region is located to the north of Greater Cairo region, and the second center of the great regions. Other regions are located along the Nile River, and especially the Assiut region has a lot of desert areas, and is located in the middle of the Nile.

Regions in Egypt
Delta region

The Nile River's western part is called “,” and its eastern part is called “Domiyat.” The Delta region is located between the branches of the Nile. 25% of the population in Egypt concentrated in the Delta region that occupies 35% of the high quality agricultural land of Egypt. The region ranks the second in population size. It consists of 5 governorates, 57 cities, and 1,400 villages.

61 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Delta region, 2005 Population Density Governorate Area (㎢) Number of cities (1,000 persons) (persons/㎢) Gharbia 1,943.3 3,901 2,007 8 3,466.7 2,625 757 10 Monofeya 2,499.0 3,254 1,302 10 El Domyat 910.3 1,095 1,203 11 El Dakaleheya 3,538.2 4,929 1,393 18 Delta region 12,357.4 15,804 1,279 57

Gharbia Governorate is located in the middle of the Delta region, and Tanta City is in the center of the governorate. The governorate borders with Kafr El Sheikh Governorate to the north, and the Gharbia Governorate's western part meets with El Beheyra Governorate. Its southern part borders with Monofeya Governorate, and its eastern part adjoins with El Dakaleheya Governorate. The total area of Gharbia Governorate is about 463,000 feddans (about 1943.27 ㎢, which occupies approximately 16% of the Delta region) and 0.19% of the total area of Egypt.

Gharbia Governorate consists of 8 administrative units (markaz) and 8 cities, and has two biggest industrial and commercial centers of Egypt: El Mahla El Kobra and Kafr El Zeyat. Gharbia is one of the governorates known for the migration of the governorate people to urban centers, particularly, Cairo, , Qalubia, and Alexandria.

Administrative boundaries of Delta region

62 3. Development directions for the study areas

2) Regional context

(1) Population

The total population was estimated at 3.90 million representing 5.6% of the total Egyptian population in 2005. It is considered as the second largest governorate in the Delta region.

① Distribution

The percentage of the rural population was 54.5% in Tanta Markaz, and 91.32% in Santa Markaz, as of 1996. The urban population is much less than the rural one, and the birth/death rate in urban areas is higher than rural areas.

Urban and rural population of Gharbia Governorate Total Rural Urban Year 2004 (1,000 persons) 3,859.4 2,648.0 1,211.9 Percent of females 49.4% 49.0% 49.3% Birth rate 24.0 23.5 25.2 (new-born/1,000 persons) Death rate 6.0 0.4 7.4 (death/1,000 persons) 2003 normal growth rate 18.0 18.1 17.8 (person/1,000 persons)

Source: Central Agency for Public Mobilization and Statistics (CAPMAS)

② Population growth pattern

The total population is expected to reach 5.068 million by the year 2022 (with an annual growth rate of 1.48%). The annual growth rate was 1.52% from 1996 to 2005, and it was lower than that of 1986-1996, and 1976-1986 period (1.67% and 2.32% respectively). There was a big gap in the population growth between urban and rural areas. Annual population growth rates during the 1986-1996 period for rural Gharbia was 1.92%, and for urban Gharbia, it was 1.15% (with a total of 1.68% for the governorate as a whole). The markazs with higher growth rates than average were , Bassion, Samanoud, and Kotour. Tanta Markaz grew 1.63% annually.

Population growth rate Annual growth Year Urban pop. Rural pop. Total pop. rate(%) 1976 - - 2.293 - 1986 0.944 1.941 2.885 2.32 1996 1.059 2.347 3.406 1.67 2005 1.212 2.688 3.901 1.52

63 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

③ Population density

The population density has increased gradually from 18.8 persons/ha in 2001 to 19.9 persons/ha in 2003.

Change in population density Year 2001 2002 2003 Density (person/ha) 18.8 19.2 19.9 Source: Central Agency for Public Mobilization and Statistics (CAPMAS), 2003

④ Gender

The population of Tanta City and Gharbia Governorate seems to be balanced in terms of gender distribution. The ratios of male to female in the city and the governorate are almost the same.

Population of Tanta and Gharbia by gender, 2005 Urban Rural Total Area Male Female Male Female Male Female Total

Tanta 213,868 207,149 259,143 251,852 473,011 459,001 932,012

Gharbia 625,255 607,311 1,358,911 1,333,677 1,984,167 1,940,987 1,232,566

(2) Area and administrative district

① Area

The area of Gharbia Governorate is 194,234 ㎢. About 86% of the total area is agricultural land, and the residential area occupies about 10% of the total area.

Land use in Gharbia Governorate Land use Area (㎢) Percentage (%)

Residential 191.65 10

Cemetery 61.60 3

Ponds 18.75 1

Agricultural area inside cordon 1,670.29 86

Agricultural area outside cordon 0 0

Total area 1,942.34 100

Source: Central Agency for Public Mobilization and Statistics (CAPMAS), 2003

64 3. Development directions for the study areas

② Administrative district

Gharbia Governorate consists of 8 markaz, 53 local units, and 317 villages. Each markaz has its own city.

Administrative district of Gharbia Governorate Villages do not enter Village Local unit City Markaz in the area of village local units

13175388 Source: Central Agency for Public Mobilization and Statistics (CAPMAS), 2003

Local units and villages of each markaz Markaz Local units Villages

Tanta 9 50

Mahala Kobra 10 54

Kafr el Zayat 6 37

Zefta 8 54

Basyoun 4 27

El Santa 6 44

Samanoud 5 21

Kotor 5 30

Total 53 317

(3) Regional economy

Most of the workers are engaged in social, public and personnel services, and agriculture. They constitute 56% of the total employees in Gharbia Governorate. The manufacturing sector accounts for 17.4% of the total employees, and trade, restaurants and hotels constitute 8.6% of the total. The service sector also possesses decent amount of employment in Tanta.

It is notable that people engaged in agricultural activities in the governorate of Gharbia represent 9% of the total agricultural labours in Egypt. Despite of this significant percentage, the share of agricultural production in the national GDP does not exceed 5.5%. In the mean time, the share of social services in the governorate's G에 represents almost 25.5%, and the share of trade and finance is 22.3%.

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Population (15 years and over) of the Gharbia Governorate and Tanta stratified by Economic activity, 1996 Gharbia (governorate) Tanta (city) Economic activity Employment % of % of % Employment % (thousands) Egypt Egypt Agriculture 259.7 27.8 9.0 2,227 1.9 0.9 Mining 1.7 0.2 3.3 462 0.4 26.5 Manufacturing 162.5 17.4 7.5 18.813 16.3 11.3 Electricity, water and gas 7.0 0.7 4.6 1260 1.1 18.0 Construction 58.2 6.2 4.6 8106 7.1 13.9 Trade, restaurants and hotels 80.4 8.6 5.0 17,875 15.5 22.2 Transportation and storage 49.1 5.3 5.5 7,766 6.7 15.8 Finance, insurance and real 46.3 5.0 6.6 8,754 7.6 18.9 estate Public and social services 263.2 28.2 7.1 49,207 42.7 18.7 Undefined 5.9 0.6 3.7 757 0.7 12.8 Total 934.0 100.0 6.9 115,227 100.0 12.1

GDP of the Gharbia Governorate in 2000/2001 GDP of the governorate % of the % of the national Economic sector (million L.E) governorate GDP (Egypt) GDP Agriculture 3,127.4 19.6 5.5 Manufacturing 1,832.3 11.5 2.8 Oil and petroleum products 1,467.6 9.2 5.7 Electricity 174.9 1.1 3.3 Construction and building 119.6 0.8 0.6 Total of commodity production 6,721.8 42.0 3.9 sectors Transportation and transit 1,605.7 10.0 5.4 Trade and finance 3,558.5 22.3 5.0 Tourism 37.5 0.2 0.7 Total of productive services sector 5,201.7 32.5 4.9 Total of social and personal services 4,064.9 25.5 6.8 Total GDP (million L.E) 15,988.4 100.0 4.7 Per capita share of GDP (L.E) 4,367.3 - -

① Agriculture

The major crops cultivated in the governorate are rice, wheat, corn, and cotton. These occupy 90% of the total cultivated area, and rice has been produced around

66 3. Development directions for the study areas

100,490 tons per year in Tanta. The governorate also holds a lead position with respect to poultry and animal production. These represent major inputs to other industries in the governorate, such as tanneries, egg production, and preparation of meat.

② Industry

Industrial activities in the governorate are mostly based on the agricultural production. In addition, there are several other manufacturing industries, such as weaving, fertilizer, pesticide, chemical, paper, soap, perfume, cotton, and grain grinder. The industries could provide more than 50,000 job opportunities. Additionally, the governorate has a number of small manufacturing factories and workshops. The industries are concentrated in Tanta, El Mahala el Kobra, and Kafr el Zayat.

③ Labour

Tanta and its neighbouring cities are located in the Nile Delta area. However, these urban areas cannot provide jobs for their residents or newcomers because these cities are surrounded by fertile agricultural land that has to be protected from development. Somehow, the governorate needs to solve this problem through regional planning such as redefining the boundaries. The governorate should have the accessibility to desert land. In the past, the boundaries of Menofia Governorate were redefined to include the , and the redefining gave new development opportunities that would diversify the local economy, and solve environmental problems.

Labour and Unemployment

Total Rural Urban

Laborer in 2004 (1,000persons) 1,350 927 423

Employee (1,000persons) 1,220 868 302

Person out of work (1,000persons) 130 59 71

Percent of unemployment (%) 9.6% 6.4% 16.8%

Source: Central Agency for Public Mobilization and Statistics (CAPMAS), 2003

④ GDP

Per capita GDP was approximately 4,367 L.E in 2001, which was lower than the national level (5,243 L.E). It was the 11th GDP in Egypt. The poverty problem is

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severe in this governorate. According to the "Egypt Human Development Report 2004", the GDP reached 5,511 L.E in 2002, and the indigent accounted for 6.63% of the total population of the governorate in 2001.

(4) Infrastructure

① Transportation

Tanta is the capital of the Gharbia Governorate. It is located at the centre of the Nile Delta area. It was a transport hub facilitating agricultural developments of the area in the early 1800s, and then grew to be one of the industrial centers of Egypt in the 1900s. The City of Tanta is a junction of the road to El-Mehalla El-Kubra, and a major centre of spinning and textile industries.

Highways and railways that connect Cairo, the capital of Egypt, and Alexandria, take a detour around the

Formation of the regional Tanta City, which are axis between east transportation system and west of the Delta region. Also, the highways and main roads, connected to the highways in the northeast of Tanta City, divide the Delta region into three parts, forming a triangular axis.

Roads of Gharbia

Length of paved roads (㎞) Region Length of unpaved Express Main Internal Regional roads (㎞) Tanta Urban 34 34.50 210.50 168.40 138.500 Markaz Rural 0 0 93.45 0 0 Gharbia 77.5 107.50 1,427.028 1,100.47 1,887.775

② Water supply and sewerage

The Damiattea and Rosetta branches of the Nile River are the main surface water resources in the governorate. Bahr Shebin, Terrat el Gafaria, Terrat el Kased, and

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Terrat el Bagouria have important canals. Gharbia Governorate and Tanta City suffer from the insufficient drinking water and wastewater management. Table <3-13> shows that the percentage of the potable water in Gharbia was higher than the national average, and the average of lower Egypt areas. In contrast, supply of wastewater treatment facilities in Gharbia was beyond the national average, and the average of lower Egypt areas.

Potable water and sanitation coverage in the governorate(s) of Egypt, 1996 Percent of population connected to public Population Region network (In thousands) Water Sanitation Gharbia 3.406 69.34 18.33 Total lower Egypt 25.819 62.52 23.50 Total Egypt 59.313 59.75 26.52 Source: Central Agency for Public Mobilization Statistics, Statistical Year Book, 1993-99 Computed based on the number of persons per room, number of rooms per residential building, number of residential buildings connected to public networks for delivery of drinking water and collecting to wastewater.

Groundwater is the major source of fresh drinking water in Gharbia (and Tanta as well). But if it is not treated properly, most groundwater is not suitable for drinking or irrigation. The groundwater quality of outside the priority areas in the Nile Basin often exceeds the critical values for iron and manganese. High concentrations of Total Dissolved Solids (TDS), sulphate and nitrate have been detected in the reclaimed areas towards the fringes of the basin. The central parts of the Nile Delta and Valley, and the deserts show better water quality.

Drinking water condition in Tanta and Gharbia

Quantity of Quantity of consumed Number of water treatment Lost produced drinking water plants drinking % of lost drinking (thousand ㎥/day) Region water drinking Flow water Compact Ground Residential (thousand water Sand (thousand Others Unit water uses ㎥/day Filter ㎥/day) Urban 2 0 15 93.82 50.00 9.12 34.70 37.0 Tanta Rural 0 0 34 39.63 20.00 5.00 14.63 36.0 Gharbia 7 20 181 461.52 300.82 67.67 101.85 254.1

The following table shows the available capacities of wastewater treatment plants and pump stations in both Tanta and Gharbia. The plants, like most of the wastewater treatment plants in Egypt, do not treat wastewater and sludge completely, which

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causes the inferior quality of drainage system in Lower Egypt and the northern lakes.

Wastewater condition in Tanta and Gharbia

Number of treatment Capacity for Number of plants Number of pump station wastewater Region wastewater treatment treatment plants Conventional Compact Main In-system (1000 ㎥/day)

Tanta Urban 13 1 0 6 6 90 Markaz Rural 6 1 1 2 2 13 Gharbia 61 7 3 26 25 313

③ Solid wastes

The Gharbia governorate has a serious solid wastes problem. In 1999, only 50% (estimated) of the solid wastes were collected. In 2004, solid wastes on the sidewalks of streets and highways, and the drains and canals, were estimated at 1,350 thousand ㎥. This amount constituted 5.3% of the total solid wastes in Egypt for that year. The governorate did not have a single sanitary landfill, and it was impossible to move municipal solid wastes outside the borders of the governorate. The solution is to develop a system of sorting, reusing, recovering, and recycling the wastes within each residential area, and access desert land to develop a sanitary landfill.

(6) Cultural heritage

The Gharbia governorate has several monuments of the Delta. One of them is the temple of Isis in Bahbeet and Samanoud, built during the ruling of the 30th Dynasty, and dedicated to worshiping the Holy Trio. The governorate also hosts Coptic monuments. Tanta has one of the oldest churches in Egypt; the Virgin's Church is one of the well-preserved monumental buildings, which sets an example of Coptic architecture. In addition to this, there are several well-known churches, such as, one in Sibat, built in 1463 A.D., and another Virgin’s Church at Samanoud where the Mayrter Abnoub is buried, and, lastly, one in Abiyar, erected in 1820.

In addition to the mosque and mausoleum of Shiekh Ahmed El-Badawi, Tanta and Gharbia have several Islamic buildings of religious and architectural importance. These include the drinking fountain of Ali Bek Al-Kabeer, and Al-Ahmadi drinking fountain next to the mosque of Sheikh Ahmed El-Badawi. About three million visitors from Egypt and abroad come to the City of Tanta each October to celebrate El-Badawi‘s

70 3. Development directions for the study areas

mawled, i.e., birthday.

Another superme Coptic Church is Mary Gergis Church in Mahala. The Garbia governorate has several ancient Egyptian and Roman historic sites, and some of them are not promoted effectively, like the city of Samnoud which embraces another couple of historic attractions. Religious tourism induces a large number of local tourists from both urban and rural areas. But the governorate is located in the middle of major touristic regions such as the Canal and Sinai Regions to the east, Alexandria to the west, and Cairo to the South, which gives the city a potential for one-day or transit tourism.

The Virgin’s Church
The mosque of Sheikh Ahmed El-Badawi

3.1.2 Tanta City

The population of Tanta City was 427,000 in 2004, and constituted 11% of the total population of Gharbia Governorate. 35% of the urban population in Gharbia lives in the city. As the capital of the governorate, Tanta serves as the commercial, administrative, and service center. And it is a nodal point of roads and railway networks in the center of Delta. The size of Tanta is about 3,100 fd (13.02 ㎢), and its main economic activity is city administration.

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Location of Tanta City and Markaz
Satellite image of Tanta

1) Regional context

(1) Population

The population of Tanta was 427,000 in 2004 with a population density of 167 persons/fd. The expected population of the city is about 500,000 in 2020. In 1960, the Tanta population was roughly 200,000, and the city had an over 2% annual population growth rate. The rate has decreased since the 1960s, but the total population has been increasing. Population growth rate of Tanta City is much higher than other cities in the governorate. The population density of Tanta was 135 persons/fd in 1976, and reached 160 persons/fd in 1986.

Population growth rate Annual population growth rate (%) Period Tanta City Tanta Markaz Gharbia Gorvernorate 1937-47 3.7 1.3 1.2 1947-60 2.1 1.0 2.1 1960-66 2.5 2.3 1.7

Trend in population and growth rate

Year Population Growth rate 1960 200,000 - 1966 230,000 2.48 1976 283,200 2.00 1986 336,000 1.74 2000 402,000 1.28 2010 448,000 1.08 2020 493,000 0.98

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(2) Administrative district

The first district consists of 7 shayakhai: Waboor El noor, El Saeia square, El Dawawin, El Borsa, El Mahata bridge, Kafr Seger, and Sldi Marzooq. The second district consists of 7 shayakhai: Kahata, El Magaa, Ali Agaa, El Salakhana, El omri-Kafr, and El Korsheya-Sabri.

Location of each shayakhai

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Population of each shayakhai

1997 1986 Districts and Shayakhai Area Area Density by Population Densit by Population feddan y feddan 1-1 Wabor El nor 130.0 331.2 43.1 272 306.0 83.3 1-2 Medan El saa 371.7 26.9 10.0 335 26.9 9.0 1-3 El Dawawyn 119.8 230.4 27.6 113 220.4 24.8 1st 1-4 El Borsa 185.3 80.4 14.9 168 80.0 13.4 district 1-5 Kobry El mahata 176.7 346.8 61.3 160 341.8 54.8 1-6 Kafr Seegr 91.9 344.8 31.7 85 332.8 28.4 1-7 Seidi Marzouk 240.2 30.8 7.4 214 30.8 6.6 Total 140.9 1391.3 196.0 131 1339.3 175.3 2-1 Kohafa 118.9 222.8 26.5 125 187.8 23.4 2-2 El Malgaa 106.6 363.8 38.8 98 348.8 34.1 2-3 Ali Agha 369.0 100.8 37.2 325 100.8 32.8 2nd 2-4 El salakhaha 107.5 256.8 27.6 106 229.8 24.4 district 2-5 El amry 107.8 326.4 35.2 106 291.4 30.9 2-6 El kafr Elsharkaya 244.4 36.0 8.8 214 36.0 7.7 2-7 Sabry 222.0 18.0 4.0 194 18.0 3.5 Total 134.4 1324.6 178.1 141 1112.9 157.1 Outside the cordon 18.6 268.8 5.0 17 258.8 4.1 Total of the city 127.0 2984.7 379.1 120 2810.0 336.5

(3) Regional Economy Major economic activities of Tanta are handcraft and light industries. The regional economy depends on commercial services such as paid daily visits to the El-Badawi shrine. The increasing population of Tanta city has brought about excessive supply of laborers. Therefore, creating new jobs and expanding industrial areas should be considered in order to stabilize the labour market of the Delta area.

(4) Infrastructure

① Transportation Tanta city has the biggest railway station in Egypt. Railway stations play an important role in the Egyptian economy, as they are considered as the door and main passage between cities for transporting agricultural and other products.

But, the railway lines divide the city of Tanta at least into four parts, and the interaction between the western and eastern parts of Tanta is hindered by insufficient railway crossing possibilities. The urban roads are very narrow except for some major arterial networks.

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Road system in Tanta City
Water supply system

② Water supply

The capacity of water production seems to be sufficient to satisfy the demand of existing population in Tanta, while old pipe lines and small capacity of water reservoirs remain problems.

The loss of water in the main water supply network constructed before 1930, is estimated up to 40% of the network's initial production. Although, the main resources of water supply are located at the El Khasid Canal, villages within the planning area have their own water supply systems from underground water.

③ Sewage system

Due to the insufficient capacity of existing four sewage plants, the sewage from Tanta is not treated properly. Regarding the main parts of the sewage network constructed before 1930, about 25% of the urban area is not connected to the sewage network. The existing sewage plant with a capacity of 150 L/sec is out of order. The new sewage plant with a capacity of 80,000 ㎥/day is under construction. Two additional pumping stations are now under construction.

④ Electricity and waste treatment

There are two transformer stations of 66 k.v-to-11 k.v with capacities of 60 mva

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in the east and 40 mva in the northwest. A new 40 mva capacity transformer station is now under construction in the north near the new university. There are two waste treatment plants that are capable of dealing 38 tons of waste per day.

2) Urban structure

(1) Process of urban growth

Tanta experienced a rapid, but unbalanced, urban growth during the second half of the 20th century that exceeds the city's capacity. The change is evident in the shortage of housing, deterioration of old buildings, expansion of informal settlements, urban encroachment and loss of agricultural land, shortage in infrastructures and service facilities, disordered use of land, traffic congestion, environmental pollution, and so on. The weather and topography played a major role in directing growth of the city. During most of the periods, the growth was northward rather than southward due to the effect of the prevalent north winds. Also, the roads and canals affected the northern extension of the city. The Cairo-Alexandria railroads in the south of the city presented a barrier against the extension to this direction because of the lack of tunnels connecting this part to the rest of the city. At the same time, the Tanta navigation channel to the southwest and the Kasid canal at the east of the city contributed to limiting extension in that direction.

The Cairo–Alexandria highway had formed the eastern and northern boundaries of the city until it was overpassed by buildings under the increasing pressure of population growth from the beginning of the 1990s, when buildings of the city were merged with Min Hebbish village to the east, Cebrabay village to the northeast, and Mahalla Marhoum village to the northwest.

The City of Tanta irregularly encroached agricultural land surrounding the city, and the encroachment was done by people squatting on the land owned by the state or individuals, and all these lands were deprived of services and infrastructures such as water, sewerage, electricity, paved roads, schools, health centers, fire brigades, police stations, and others; therefore, they were known as blighted areas.

Urban growth of Tanta City can be classified into several stages as follows: ∘ The first growth stage (before 1930) - It occupied an area of 909 fd representing approximately 30% of its current area. ∘ The second growth stage (1930~1950) - It occupied an area of 606 fd representing approximately 20% of its current

76 3. Development directions for the study areas

area. The annual increase in area is approximately 30.3 fd. ∘ The third growth stage (1950~1986) - It occupied an area of 1,295 fd representing approximately 42.75% of its current area. The annual increase in area is approximately 36 fd. ∘ The fourth growth stage (1986~1997) - It occupies an area of 220 fd representing approximately 7.25% of its current area. The annual increase in area is approximately 22 fd.

Urban expansion

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(2) Central Business District (CBD)

The CBD is located between the El moudirye street and the El moudirye station; there are main shopping facilities, various public and private services, gastronomic facilities, and the Said El-Badawi mosque, which is the heart of the town. Although considerably substandard building conditions in some part, and frequent traffic congestions, detract its reputation from the image of the historic center of Tanta, the CBD attracts visitors for shopping, and religious activities. The administrative spine is located along the El Geish street, including Tanta University and a high quality residential area.

(3) Old areas

① Gannabeya

The gannabeya area is a traditional inner-city residential area, and currently, one of the most problematic areas of the town with deteriorated buildings and poor infrastructure networks, and it also has problems with the accessibility and traffic conditions. On the other hand, with a large number of stores, workshops, various small industrial enterprises, and a couple of street stalls, the area seems to have strong economic potentials and dynamics.

② Ali Aga (subkism)

Ali Aga is a traditional low-middle-income community near a historic center, characterized by the extremely high population density, narrow streets, and buildings in various conditions.

(4) Northern area

The first expansion area characterized by broad urban layout was mainly designed as a residential area. Commercial and public service functions are increasingly spreading from the center, and have significantly influenced the characteristics of the entire area. Today the area is developed primarily for a mixed use of public facilities, commerce, handicraft, and housing. It includes some of the main shopping streets of the town, and strong concentration of schools and other educational facilities. The newly expanded area provides a wide range of housing types from economic to high- class residence. Streets are widely paved, and the supply of community facilities is sufficient compared to the other parts of the city.

78 3. Development directions for the study areas

(5) Industrial area

The industrial area is located along the Gala street. It takes a large share of the town’s job in the public and private sector. The adjacent residential areas have been informally developed, and expanded along with its fringes due to the absence of development plans and regulations.

(6) South of the Cairo-Alexandria railway area

The area, located at the south of the Cairo to Alexandria railway, is called Kafr Satuta, and has many problems; unplanned development, lack of open space, low accessibility due to extremely narrow roads, and lack of infrastructure supply and community facilities.

(7) Villages (countryside)

Tanta City is surrounded by a group of villages, and the major centers (Seberbay, Shoober, and Marhoom) in the northern direction. Former independent villages such as Oahafa, and Kafr Seigar, are already enclosed within the urban development, but not integrated yet into the urban structure. The village of Mit Hibeish has merely kept some of its rural characteristics. The industrial area along the highway and the road to El Santa determines the image of the village; the area could be considered as a type of industrial suburb in Tanta. The village of Sibirbai is changing to a new center of higher education in Tanta. The new branch of Al Azhar University, and the large area for Tanta University, will alter the village life thoroughly. The village of Mahallet Marhum is the most distant village from central Tanta, and at least affected by the growth and expansion of Tanta City, although the adjacent oil refinery and some minor enterprises are already connecting the village to the built-up area.

3) Land use and building conditions

(1) Land use

Housing and mixed housing are the predominant uses in the city; together, they occupy approximately 52.7% of the urban area (1597.3 fd). Small workshops and repair shops are at the city center, mixed with commercial and residential buildings.

There is a concentration of heavy industrial facilities at the axis of El Galla street with a facade overlooking the Cairo-Alexandria highway. Stores and grain mills are

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in the southwest of the city. Educational and health services are concentrated in El Bahr, Said, Butross, El Madaris, and Osman Mohamed streets. Public and administrative buildings are sparsely stood up on the Army Road. The agricultural lands surround the urban area, and some of them are inside the urban fabric in the form of agricultural pockets which hinder further growth of the city.

Land use
Land use

Land use Area (fd.) %

Residence 1,597 52.7

Urban 50 1.7 center

Industrial 345 11.4

Service 103 3.4

Administrativ 66 2.2 e activity

Green 40 1.3

Road 720 23.8

Public 109 3.5 infrastructure

Total 3,030 100.0

(2) Buildings

① Building heights

55% of the total buildings are less than three floors, and 30% are four or five floor buildings. Rest of the buildings (15%) are more than six floors.

② Building conditions

45% of the total buildings are in intermediate condition, and 35% are in good condition. Rest of the buildings (20%) are in critical condition.

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Building heights
Building conditions

3.1.3 Supply and demand for land development

1) The characteristics of land development demand

Most of the cities in Egypt are adjacent to the Nile Valley, surrounded by agricultural land. However, law prohibited land development in agricultural areas. Notably, land development was prohibited on the fertile agricultural land of the Delta region. Therefore, the supply of land is limited. Development density and migration to urban areas have continually increased the demand for land. As a result, land supply and demand have remained unbalanced in urban areas. Also, informal land development is widespread in urban areas and their neighborhood. Today, informal land development is becoming an urban sprawl. Current situations show that land demand promotes informal settlement development which has become the biggest problem in Egypt.

Informal inhabitants represent 24% of Egypt’s population in 1994, and 55% of the urban population. Gharbia Governorate has 47 informal settlements representing 74% of the total urban population. Also land demand and supply in Tanta City in the middle of the delta region is unbalanced, and informal settlements are continually

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appearing. These situations are closely related to the housing demand-supply. The housing supply-demand in Tanta City was balanced until the middle of the twentieth century. The housing supply-demand was complicated through the 1967 setback from the displacement of the canal cities’ residents. Moreover, after an oil price increase following the 1973 war, economic and social conditions changed. As a result, the demand for low-income housing rapidly increased informal settlements at the edges of the city.

During this period, new types of luxurious housing and ownership systems of expensive common housing and leases emerged. In addition, the increase in land prices, raw materials, and wages affected housing leases and people suffered from the unbalance between housing and income. Such new conditions contributed to the decrease in traditional housing supplies channeled to meet the needs of middle and popular classes.

2) Informal development in Tanta City

In 1996, 17.6% of the Tanta population resided in informal settlements. This number represents 7.6 % of the total informal settlements (Cabinet/IDSC). Informal settlements in Tanta’s districts are as follows: - The first district has three settlements in three shayakhai (Dawawin, Sigar, and Mahatta) and occupies 242 feddans representing 39.3% of the total area. - The second district has six settlements in shayakhai (El Omary, El Malga’, Quhafa, and Salakhana) and occupies 282 feddan representing 50.6% of the total area.

There is a notable conflict in the data related to the residents of the informal areas. Although all the data are issued from official government sources, there are no different points of view to comment about the seriousness of informal development. The informal areas in Tanta City can be classified into several different types depending on their temporal and spatial development phases as follows:

The first phase: deteriorated housing of the old city’s shayakhai occurred due to the housing and population overcrowding in the city’s small and old area. This state has continued despite replacement and renewal operations the city has undergone.

The second phase: shanties naturally follow the first phase. These shanties were the residence of poor migrants and other residents; economic and social reasons prevented

82 3. Development directions for the study areas

them from residing in the heart of the city. These shanties look ugly because of their proximity to: - El Ganabia area near Tanta/Mehalla railway. - Satuta area along the fence of Al Azhar Religious Institute. - El Korashy Bridge to the Secondary Azharian Institute. (Local authorities made great efforts until they were completely eradicated)

The third phase: informal areas in rural origin shayakhai that are newly growing at the edges of the urban blocks due to low land prices. This phase is in Sigger, El Mahatt, El Omary, El Salakhana, and El Dawawin.

The fourth phase: informal settlements outside the city cordon on the rural urban fringes appeared as a result of city growth and urban expansion. This phase includes Sebrbay in the northeast, Mahalet Marhoum in the northwest and Met Hebish in the east of the city.

Also, Tel El Haddadin is the informal settlement in the greatest need of development due to the badly deteriorated buildings. This area depends on handcraft activities and small industries which cause environmental pollution. These economic activities are very important and need consideration along with land development.

3.1.4 Problems and opportunities

1) Key problems

(1) Informal settlements and consumption of arable land

Informal land use along the fringes of the town and the surrounding areas have dramatically reduced high fertile soil. These are expected to damage the country's economy and affect the town's infrastructure.

(2) Housing deficiency

Housing deficiency is severe in Tanta, due to the scarcity of land and high prices for plots even in distant outskirts and a considerably large number of squatters are along the main railway lines occupying existing residential quarters.

(3) Decayed residential areas (Gannabeya-area)

Other serious problems with Tanta City are the inferior living conditions. The

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quarters like the Gannabeya-area, Kafr Oorashi, Oahafa or the Ali Aga area are much decayed, suffering from unfavorable housing conditions because the area only offers very low standard housing as a residential area due to the defective infrastructure networks and small scale industries.

(4) Water system deficiencies

There are many problems with water supply and sewage systems in Tanta City including; decentralized water production system, insufficient and weak distribution lines and old equipment (heavy loss up to 40% of the total production), unstable water pressure, frequent breakdowns, lack of quality control and water treatment.

(5) Traffic problem

The inner-urban road network connects only a few major roads. Traffic congestion on the Cairo-Alexandria Highway offers a starting point for traffic problems which developed into structural problems between north and south. These problems include a serious imbalance in development opportunities between both sections. The southern parts of the railway, connected only by narrow tunnels, are separated from the rest of the town. The informal settlement pattern causes insufficient accessibility.

(6) School deficiency

Primary and preparatory schools are unequally distributed in Tanta. For example there are no basic schools in the south; Kafr Seigar and Kubriel Mahatta. Similar situations can be seen in the northeastern parts of the town along El Khasid Canal, while a concentration of all kinds and levels of schools are found in the northern parts along El Geish streets and near the station.

2) Detailed problems

(1) Agricultural land

The Physical Planning Law and national policy claim protection of arable land and agricultural area surrounding the present built-up area. The best agricultural areas are found near the village of Khar-sit, eastwards along the road to Mahalla El Kubra and southeast of El Galaa street.

(2) Irrigation and drainage canals

The main canals serve as sources for potable water, sewage disposal and

84 3. Development directions for the study areas

recreational purposes, and are closely related to local agriculture. These canals form clear development thresholds for urban extension. The most important canals are Tanta canal and El Khasid canal, which is already partly included into the built-up area.

Nevertheless pollution from canal maintenance is problematic. Pollution is a key factor in deficiencies of physio graphic features. The El Khasid Canal is already heavily polluted by the uncontrolled waste disposal and introduction of untreated sewage. Pollution and the lack of maintenance are also threatening the function of minor canals like the irrigation canal near Kafr-Seigar. It can not be ignored that the waste disposal area pollutes air and water around the area because the location of the facilities are along the existing canals.

(3) Land use

① Areas and buildings of historical value

The Said El Badawi mosque and surrounding area are significant because many tourists visit there for religious purposes, and also are impressed by the daily life in Tanta City. These tourists bring large profits to its people. Also the area surrounding the mosque includes two public water-houses from the Ottoman Period as well as various ancient tombs and graves connected to the history of Said El Badawi.

② Informal land use changing the areas and buildings of historical value

Uncontrolled land use, transforming agricultural land to urban area is occurring almost everywhere in Tanta City's surrounding agricultural areas. The current informal developments are found near the Tanta Canal, along the Cairo-Alexandria Highway and towards the villages of Kharsit, Kafr Hisam and Sivirbai. Currently the development along the highway is already seriously affecting traffic flow and safety in the area.

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Main problem areas related to land use Area Main problems ∘ High residential density The southern - 537 person/ha expansion area ∘ Access problem around Kafr Satuta - At daytime food & vegetable market crowded along the main access road ∘ The concentration of workshop, small industries, bad building The neighborhood conditions, low plot ratios compared to the favorable location of of Midan Satouta the area ∘ The expanding from the railway crossing to Fafr Seigar ∘ The density, access ∘ The adjacent strong concentration of workshop and repair yards The Ali Aga area along the Shams El Din street ∘ High noise, and traffic out put to the residential population ∘ Conflicting uses The large part of - Shopping, small scale industries, residential area, street-markets city center - The bad building conditions in Gannabeya area and Said El Badawi mosque especially where whole blocks are in state of decay ∘ Located in the triangle between the railway and El Galaa Street that has grown around an old village nucleus ∘ An irregular urban layout with street widths and densities The neighborhood ∘ The mix of housing area and some small scale industrial area of Kafr El Oorashi ∘ Mainly the access problem can be stated for the triangle between El Galaa street and El Khasid Canal - As this area is not yet completely settled, density and access problems could aggravate in the future The villages of ∘ In danger to be completely surrounded by new urban Qahafa and Kafr development leaving a decaying urban structure inside the Sigar new urban environment

③ Location of important economic activities

Concentrations of economic activity form a strong commitment to planning as they represent an important base for the town's economic and physical development. The CBD comprises important shopping facilities along with public administration and private business services.

Notably in the Ganabeya area, the concentration of workshops, small scale industries and commercial enterprises provide a large amount of commerce while the area around Midan Satouta comprises a large number of workshops. Small industrial enterprises along the main street supply goods for the southern part of the town. It is significant that the market is located along the old agricultural road to the village of Kafr Hisam.

(4) Housing and community facilities

Traditional housing areas on both sides of El Geish Street are in good condition,

86 3. Development directions for the study areas

having wide paved streets, partly private gardens and good building conditions. New public housing areas in Kafr Seigar and both sides of Galaa Street are built according to the official standard. New private and formal development areas have relatively high building standards. An official subdivision plan (Tanzim) has been drawn up but development is not always carried out to plan, and there is an ongoing need to enforce control for environment.

(5) Industry

Industrial areas extension has been considered because of economic importance and investments. The industrial area as a source of pollution is a local environment problem. Though heavy pollution from industrial activities is limited in Tanta City, some industries affect living conditions: tanta oil and soap factory create noise and air pollution in the residential area. The factory's delivery traffic also causes constant traffic congestion, notably at the Cairo-Alexandria Highway while the cement pipe factory produces dust and smoke. In the future, these will give a negative effect on the whole surrounding area.

(6) Transportation

The railway lines are dividing the Tanta City into at least four parts and the connection between the western and eastern parts is hindered by the difficulty of the railway crossing.

The Cairo-Alexandria Highway is used as major road in Tanta City. Intersections between the highway and main urban roads are badly organized. Except for some principal axes, the urban road network is narrow and in unsuitable condition, with a maximum width of only 10 meters. In addition, the downtown area lacks parking space.

3) Opportunities

(1) Areas for intensive agricultural use

To contribute to the national goal of food security, agricultural areas should be preserved. There are a lot of needs to promote the introduction of new crops, improve cultivation techniques, and make farming more profitable to get more economic profits.

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(2) Areas for open space activities

The fringes of the town offer some possibilities for establishing public space and green space, because those areas are not clearly defined by agricultural or urban uses. Agricultural and green spaces are mainly found in the northeast; the agricultural area along El Oasid Canal, southeast in Kafr Oorashi and southwest along the Seigar street on the site is used for the yearly pilgrimage. Other potential areas are the existing canals which offer special opportunities for different activities like fishing.

(3) Land use

Areas with the capacity for fill-in development are located at the fringes of the built-up areas. The formal areas, in the northern part of Tanta City, Tanta Gelid or the area between the highway and Adel Modem Raid street, are following Tanzim plan.

The informal extension area, south of the town, needs more immediate action to make the best use of their capacity to implement and extend infrastructures, and establish new community facilities and services.

(4) Areas with improvement or upgrading potentials

Conditions and potentials of each area needing some upgrading Area Condition Potential - A large part of the area is owned - This large scale property could be The Gannabeya by the markaz itself. used as a starting point for a area - Mainly used for public garages, comprehensive upgrading or repair yard, etc. rehabilitation scheme. - The present building structure would allow further densification The area and fill-in of new buildings. south of - The favorable location of this area - The area is dominated by a large Said El Badawi could attract private investment. scale property of the Ministry of mosque Awkaf, which opens a chance for public action. The Kafr el - The area has a strong locational Oorashi area advantage. - The area could attract private (Particularly the - Vacant plots and relatively wide investment for an improvement part near El streets would allow structural scheme. Galaa street) improvement. - A process of restructuring the - The condition could be integrated In the village of village has already started and into a program for the whole Qahafa rural uses are step by step village environment. replaced by urban uses.

88 3. Development directions for the study areas

(5) Areas with special vocation for central uses

The importance of Tanta City as a regional center has grown so that the central area should extend because of increasing population and demand for jobs. Notably the area along El Geish Street can be seen as a potential expansion and agglomeration axis. The northern part of El Geish Street was developed on the high location and accessibility advantage of this axis. The northern expansion of the CBD along El Galaa Street and opposite the station are suitable for expansion or agglomeration, because they have a vocational advantage along inner urban roads and present development direction. However, the sub-center could trigger a balanced urban structure and avoid congestions and concentration of facilities.

Suitable area for sub-area and its condition

Area Condition The 3 surrounding villages of Mit - The areas can be considered as an extension of Hibeish, Sibirbai and Mahallet Marhum their present "central areas" serving the village. - The area has already served the southern part of the town The area around Midan Satouta - In the area, a agglomeration of public administration, market, shopping facilities, schools and other services has formed. - The area can serve as a shopping area between The area along street the two other southern railway branches. - Extension of the present shopping facilities could The area along Kafr el Hima street promote the formation of a sub-centre supplying the whole western part of the town. - The area has a similar chance for the creation of The area on both sides of El Galaa street another sub-centre.

3.1.5 Situations and problems of inner-city development

1) Land supply regulations for inner-city development

① Rule of public land sale In Egypt, inner-city development is contrary to new community development. Inner-city development is seen as the development in Zimam where land disposition and development is regulated by the Prime Minister’s decree No. 2903 for 1995. The rules for disposing land are prepared for building and development within the governorate boundaries and reclamation land inside the Zimam as well, according to

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the following points: a. Residents of the governorate have land priority. b. Cases should be organized where land is disposed free of charge for the purposes of reconstruction, housing, land reclamation or industrial development. c. These rules do not apply to real estate previously owned and abandoned by the Ministries of Defense and Interior. d. The price of disposed land should not be less than similar lands. e. The disposition contract should include a commitment by the buyer to using the land for the purpose it has been sold for. f. These rules should include the down payment, installment period and installments values.

② Planning criteria and procedures

There are no differences between public and private developers in inner-city development. Developments could be implemented regardless of the development scale. a. To develop the land, the investor prepares a detailed plan for his project. - According to Law 3, 1982 on urban planning, the local development units concerned should prepare detailed plans for undeveloped areas within its jurisdictions based on the master plan set for the city even if the master plan has not been prepared yet. The development district may allocate the boundary for inner-city development through the master plan. b. Submit it to the planning and/or engineering department within the governorate for review and approval of the governorate c. Issued in a form: - Decree stating the project boundaries, - Different buildings within the project, - Planning and building conditions, - Criteria concerning building densities and height, - New city development inside the Zimam by the governorate. d. From the urban cordon to city core, 1~12 FAR (floor area ratio) can be applicable. Another distinction here between projects carried out inside the Zimam through governorate and those within new cities, is that the former are usually built without specific planning criteria, meaning that buildings just follow the building

90 3. Development directions for the study areas

law in height. New cities have a set of strict planning criteria regulating densities and height through an overall vision for the whole city development. The result for real estate projects inside Zimam was establishing high-rise blocks increasing the pressure on infrastructure capacity and traffic problems where such projects are built.

③ Land price

Lands have been offered through regular rules and procedures for land disposition whether through public auction or direct sale. Land price has been estimated based on the offer of the land with a nominal fee and charge for the cost of internal infrastructures. Land was offered with LE. 50 per square meter by late 1990s, when the land was offered to new urban communities at the average price of LE. 150-180 per square meter. The price was then modified by 2001 to LE. 100 per square meter.

The justification brought by the governorate for lower prices than new communities, was these prices cover the land with an external infrastructure hook-up to the land boundaries without costing regional infrastructures (sewage treatment plantation, water supply treatment plant, electricity plants, etc.

④ Financial share for regional infrastructure

Development of regional infrastructures is the responsibility of the General Organization for Water Supply and Sewage and other similar entities such as the holding company for electricity. Accordingly, the governorate does not incorporate the costs for these regional infrastructures into the overall price costing for selling land to investors. Meanwhile, the NUCA is an independent entity responsible for developing all infrastructures in new cities. It has to incorporate the costs for regional infrastructures into the overall price of the square meter to be sold for real estate development.

The result is that selling land for real estate in governorate costs less than the same land within new cities. This has created a situation that unhealthy competition between the two entities emerged, slowing down the pace of development in new cities at the expense of developing other areas inside the Zimam of . The mid to long-term impact of this is continuing uncontrolled growth of the existing built-up area of Cairo along with its related problems.

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⑤ Public subsidies

The government supports low-income people by providing 50% of the housing price. Without public subsidies people can't buy housing.

⑥ Expropriation

Private developers can't expropriate land. Although there are exceptions where they develop land for public benefits, they can't sell land they developed.

2) Case study : Tal El Haddadin

(1) Overview

The Tal El Haddadin area has two plans; one is the "Gannabeya area: the Tal El Haddadin action area plan" established by the GTZ in 1985, and the other is the "Tal El Haddadin detailed plan" established by the GOPP in 1996. The first plan suggested three alternatives (minimum-level change, maximum-level change, and medium-level change). The main targets of the plan are poor people and the workers in small handcraft enterprises. Therefore, the goal of the plan is housing supply and the improvement of living conditions.

The Tal El Haddadin detailed plan established in 1996 suggested more detailed alternatives than 1985 plan. The detailed plan was connected to the industrial area replacement plan. It means that the detailed plan suggested urban level alternatives.

Nevertheless, the actual development did not occur in the Tal El Haddadin area. Also, the plans have been criticized because they are considered as a blue print plan. Though there are no actual urban developments affected by the plans, the plans are worth reviewing as a case study.

The following is the contents of the Tal El Haddadin detailed plan.

92 3. Development directions for the study areas

Alternatives of the action plan

Alternative 1 Minimum change

- No relocation of workshops or small-scaled industries - No changes of present urban structure Main elements - No widening of streets in existing areas - Development of new housing facilities on public-owned plots - The current uncertainty about the area’s future development will be resolved. Advantages - The current status of employment will not be changed. - The present residential population will be maintained. - Minimal need for public investment - No major improvement in the urban environment - Widening of streets is only possible to a limited extent Disadvantages - Conflicts between residential use and small-scaled industries cannot be solved. Alternative 2 Maximum change - Comprehensive relocation of all workshops and small-scaled industrial enterprises - Relocation of public utilities Main elements - Redevelopment of industrial areas into residential areas - Comprehensive renewal of present residential areas - Widening of most streets to the legally defined minimum of 10m - Conflicts between residential and industrial use can be minimized. - A maximum number of new apartments can be provided. Advantages - Comprehensively widening street to cope with future traffic congestion is possible. - The demand of present population is considered the least. - Present job opportunities and economic structures are threatened. Disadvantages - Strong need for public investment - Improvement process will be rather slow due to the lack of public funds.

Alternative 3 Moderate change - Relocation only of disturbing and polluting small-scaled enterprises - Relocation of present public utilities - Stepwise renewal of present workshop areas towards a mixed land-use of housing, handcraft and commerce - Stepwise upgrading and renewal of exiting residential neighborhoods Main elements with only a careful street widening - Provision of extension areas for non-molesting economic activities on present public plots - Stepwise private development of public properties towards a predominantly residential area with commercial concentrations at favorable locations - Maximum mobilization of private investment - Maximum consideration of demanding population Advantages - Best development opportunities for job supply - Public investment can be limited. - Conflicts between workshops and residences Disadvantages - Limited extent of street pattern

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① Goals and strategies

The goal of the detailed plan is relocating handcraft activities to outside the zone, and easing traffic. Basically, the main strategies of the detailed plan are firstly using endowment land and governorate-owned land to resolve urban problems of Tanta City. The others are as follows: ∘ Using the El Baladeya area to establish temporary shops instead of the current ones, ∘ Implementation of the detailed plan by stages, ∘ Relocating non-polluting commercial facilities in the zone after completion.

② Alternatives

Alternatives

Alternative 1 Innovation

- Preserving new buildings - Substituting deteriorated buildings - Developing utility networks Strategy - Providing the area with services and entertainment - Transferring services of environmental pollution outside the area (sook el samak- Garbage – storage places)

Method of - Selecting alternative areas for substitution and development which can implementati absorb housing, shop, and polluted areas on - Dividing the Tal El Haddadin area into several areas

Period - 5 Years after the final approval on finance

Alternative 2 Removal and movement

- Removing all the ownerships and buildings in the El Darasa area - Establishing a development project that best suits the area’s location Strategy and its economic development potential - Updating the utilities network for the future situation of the area - Providing services

- Establishing a department to supervise the implementation, to estimate the compensations and to submit the project Method of - Removing the buildings and ownerships according to the timetable implementati - Preparing a financial and technical project to submit the projection in a on local and international contest - Submitting the projects to Investors

Period - 8 years after the Removal Procedures and submitting the contest

94 3. Development directions for the study areas

Contents and regulations Zone A Zone B Zone C Zone D Zone E

Location

- Area: 9096 ㎡ - Area: 7659 ㎡ - Area: 2445 ㎡ - Area: 31,221 ㎡ - Area: 33,698 ㎡ - Number of - Number of - Number of - 50 shops & - Number of units housing units: 24 housing units: housing units: markets in the area: 432 - 47 iron shops 153 215 - Number of - Number of shops and one store of - Number of shops - Number of shops housing units: 40 not available raw metals and stores: 78 and stores not - 206 current piece available which obliges to Conditions the approved organization lines

- Number of the - 35 pieces of - Zone of economic - Recommended - Division zone: 20 pieces in the Division Zone housing preparation pieces division: 32 - Number of units/buildings school in el - Number of - Number of housing units: added to a garage area housing units: housing units in 280 division part of - Recommended 100 the pieces: 192 - Number of shops: 14 pieces commercial - Number of stores 70 - Number of units center in the in the ground - Absorbing about in the division veteran unit’s and first floor: 1,400 people area: 70 (new location 128 (commercial housing units) - Number of pieces shops) and 108 (units in in the division: - Absorbing 1,000 the buildings) 32 Contents people of 192 - Absorbing 350 - Number of families people housing units: - The required 192 height was 5 - Number of times the commercial construction shops in the rate. ground and upper floor: 128 - Absorbing 9,100 people - Recommended mosque

- The piece’s area in the division should not be less than 125 ㎡. - Using the ground floor and first floor for handcraft-commercial activities - Using the rest of the floors for housing purpose Regulations - The permitted height is 5 times the construction rate. - The front repulsion is 3 meters. - The side and rear repulsion should be constructed without making a noise.

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(2) Situations for the urban development system

① Main actors

Although the detailed plan names the governorate as the main actor for the development, in reality, the governorate cannot lead the development of the Tal El Haddadin area. Notably, the government struggles to make a process related to land reclamation and financing to develop the Tal El Haddadin area. Therefore, it needs the private sector to ensure the process of land reclamation and buildings. It is necessary to obtain support from the national treasury and oversea economic aid. As a result, the governotate has to more actively participate in the development process and cooperate with other actors to motivate inner-city development.

② Project financing

There is no information about project financing in the detailed plan, and the content contains the calculated development costs. Yet, there are no details related to the development process, and the selling costs and building construction costs. Therefore, financial plans for inner-city development are ambiguous. Moreover, this means the plan is the blue print because the plan does not consider how it will make profits or redeem investment in the total development process. The governorate must receive aid for project financing from outside to give incentives to private developers. These incentives could interest private developers.

③ Land acquisition

In the case of inner-city development, land development and supply can be made by the local governorate. After land is developed, it is given to developers through public auction or direct selling. Tal El Haddadin's detailed plan has a strategy which preferentially develops publicly-owned land. Due to difficulties with land development processes, developing public land can be the most efficient way for development. Also, in reality, the portion of the public land is about 31% of the total area (the total area: 26 fd, governorate-owned: 4.6 fd, Awkf-owned: 3.5, private-owned: 14 fd). Awkf’s land is significant, because half of the public land was owned by Awkf. Yet, it is more difficult to develop the Awkf-owned land than individual land because of the complex process of the authority. Practically, the strategy can not be helpful enough for quick development progress.

96 3. Development directions for the study areas

④ Resettlement

The results of the survey show the inhabitants are extremely poor and concerned about resettlement because of insufficient information on compensation and land ownership. The detailed plan suggests a temporary settlement in the El Baladeya area, dividing the Tal El Haddadin area into 5 districts for an orderly development. At the same time, it suggested the strategies. However, the suggestions pose difficulties for the residents because of the compensation plan. Building ownership is not included in the plan. Though there is a 40 item criteria set for the compensation, it is impossible for it to be applied to the actual compensation process.

3) Case study : Ezbet Bekhit

(1) Current situation

① Background

Ezbet Bekhit is located in Manshiet Nasser, which is one of the largest informal settlements in Greater Cairo. Manshiet Nasser has a population of more than 400,000. As Cairo continues to expand, Manshiet Nasser's central location between the Central Business District and the new suburbs will become an obstacle to the further development of Cairo. The area is characterized by a surrounding street network, highways, and a new tunnel that connects the area with the center of Cairo and the surrounding new suburbs.

The area is located among the foothills and quarries east of the historic city (old Cairo) and near the Mokatam Mountain. In 1960, construction in Manshiet Nasser, which occupies state-owned land, was started by people relocated from informal settlements in the center of Cairo. The authorities permitted re-housing of these people in Manshiet Nasser, which was at that time far from Cairo's eastern border. At that time, Egyptian President Gamal Abdel-Nasser acknowledged the existence of this area and supplied Manshiet Nasser with water and electricity.

In 1972, the Cairo Governorate issued instructions to relocate the "Zabaleen Community" (garbage collectors) to Manshiet Nasser. By the end of the 1970s, the population was estimated at 100,000. The urban poor and rural-urban migrants considered this area to be an attractive place to settle in, especially because of its location -which makes it easy to look for a job, and the availability of land offering

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affordable accommodations. Poor people from other informal settlement areas and homeless persons from demolished or collapsing houses in Cairo found Manshiet Nasser an affordable area in which to live. The inhabitants are considered to be among the poorest and most underprivileged in Cairo, with more than two-thirds of the families under the poverty line.

In 1998, two upgrading approaches for Manshiet Nasser were introduced. These approaches represent two contradictory concepts in dealing with upgrading issues; one was proposed by the GTZ and the other by the authorities.

② Description and location

Ezbet Bekhit is a part of the informal settlement of Manshiet Nasser. It is strategically located at a crossroad. Over the last few decades, the development of the area has led to the creation of a dense population with unplanned patterns. The housing units comprise different types of buildings, which depend upon several factors, such as variations in the landscaping of the area, types of construction, and materials. These variations reflect the socioeconomic status of the residents.

On its northwest side lies the highway connecting downtown Cairo to Nasr City. Its northeast border is a dead-end street (Tayaran Street) terminating at a security forces camp. It is surrounded on the east and the south by other sections of Manshiet Nasser, the government emergency housing and slum areas, respectively.

On the other side of Tayaran Street, there is a large area (Exbet Al-Arab) bordered to the east with security forces camps and the north with the highway and some government buildings. On the northern side of the highway, there is a large cemetery area, which is also informally occupied. The main topographic features of the area are sharp edges and mountain cliffs. Ezbet Bekhit has no access from the southern and western sides, and the sharp cliffs constitute a potential risk from falling stones. Ezbet Bekhit is accessible by the main highway, but lacks traffic safety measures. The main highway isolates pedestrians from the other settlement areas in Cairo, as they are obliged to cross the dangerous highway.

③ Area and population

The Ezbet Bekhit area is estimated at 42 feddan (equivalent to 17.64 hectares). It has a population of 28,200. The average population density is 900 inhabitants/feddan (equivalent to 0.42 hectares). The number of the households is estimated at 6,494, with four to five persons in each household.

98 3. Development directions for the study areas

④ Main socioeconomic features

According to a report published by the Participatory Urban Upgrading Project "Manshiet Nasser," August 2002, the main features of the Manshiet Nasser community, including Ezbet Bekhit, are summarized as follows: - High percentage of youths - High illiteracy rate - Low educational standard, poorly equipped local schools - High level of poverty: more than two-thirds of the families under the poverty line - Numerous social problems (e.g. early marriage, domestic violence, drug abuse) - The location of Manshiet Nasser in the Great Cairo area offers good job opportunities to the inhabitants.

More than two-thirds of the population is working in their own workshops and more than 55% are working inside Manshiet Nasser. The residents have developed their own small-scale income-generating activities, which are mainly handicrafts. Their average monthly income is as stated below.

Average monthly income Less than 150 EGP Less than 200 EGP Less than 300 EGP (50 US$)/month (66.6 US$)/month (100 US$)/month 15.25% 50.05% 34.70%

⑤ Characteristics of the informal settlements

Roads with no specific plan or pattern have developed randomly, following the pattern of housing construction. The roads are very narrow, often cul-de-sacs, and do not allow fire fighting and emergency vehicles access to the area. In some cases, the width of a road is barely sufficient for three pedestrians to pass at a time, and there are almost no open spaces. Different types of activities have developed, such as small-scale industries (leather treatment, painting, etc.), workshops, and handicrafts, which increase the impact of pollution on the housing environment.

In general, the houses have been constructed in unplanned patterns and without considering basic health or hygienic conditions, such as ventilation or sun penetration. Joint walls attach the housing blocks, and each block covers almost the whole plot, which reduces the street's width. Usually, the first floor (or ground floor) is used as housing units, with shops or workshops in the rooms that face the streets. The roof is mainly used to dry laundry, and in some cases for raising chickens and as storage.

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Variations in the ground level inhibit access between different quarters. It is easy to distinguish the different types of buildings, according to the categorization proposed in the upgrading plan for Ezbet Bekhit. These vary from poor to reasonably acceptable. For example, parallel to the highway, there are multi-storied buildings of up to five floors built to acceptable construction conditions, while areas with more difficult topographic features and lacking basic infrastructure accommodate the worst type of housing, for the poorest residents.

This variation also reflects the dissimilarities in the socioeconomic status of the inhabitants. In other words, the inhabitants of Ezbet Bekhit belong to different socio-economic groups, with different needs. This has a significant impact on the selection of the representatives of the local community, which would later affect the selection of priorities at the planning stage of the project.

(2) Situations for the urban development system

① Main actors

In 1998, a joint team, called the "Ezbet Bekhit Team," prepared the Project Upgrading Plan. The Team was composed of representatives from the Cairo Governorate (Manshiet Nasser District), Ministry of Housing, Utilities and New Communities (GOPP), GTZ, and local community representatives.

② Participation at the implementation level

The general strategy stated in the Project Upgrading Plan is based on the establishment of effective cooperation between the Cairo Governorate as the counterpart and the District of Manshiet Nasser as the executive agency, in association with the local community in Ezbet Bekhit and GTZ. The representatives of the residents are responsible for identifying the community needs and ensuring participation of the inhabitants. GTZ provides technical assistance to the Project, and the German Bank for Reconstruction (KFW) finances basic infrastructure, such as potable water and sanitation. The Project - according to the Project Upgrading Plan - encourages the local residents to actively participate in the implementation process of upgrading by adopting the following two means of effectively promoting this participation and enhancing the community profile: capacity building and training. Active members who have gained considerable experience during the ongoing activities are able to get involved as trainers in the training and capacity building measures, in addition to the specialized trainers and professionals provided by the

100 3. Development directions for the study areas

Project Team.

③ Scope of the project

The Project Upgrading Plan constitutes the basis for the provision of the basic physical infrastructure, social services, and improvements in housing conditions and the surrounding environment, such as solutions for leveling the dangerous cliffs. The information describing the different sectors in this section, for further analysis, is based mainly on the "Project Upgrading Plan" for Ezbet Bekhit, which is considered by the Project Team to be the main source of upgrading activities in this area, in addition to other reports produced by the Project Team on the Project's accomplishments. This section deals with Ezbet Bekhit's actual situation, the proposed solutions contained in the upgrading plan, the implementation process - if carried out - and the author's observations during field investigations.

It will focus on aspects that explain the Project's approach to solving basic problems, such as housing conditions, different socioeconomic status of the local inhabitants, and their influence on the type of community, tenants' and owners' problems, the provision of a basic physical infrastructure, and social services. Above all, attention will be paid to the involvement of local inhabitants in the solutions at the planning and implementation levels. The field observations will guide the analysis of the Project components.

④ Project financing

This project is financed by a donation from the United Arab Emirates to the Egyptian Government. This was the plan of the Government for upgrading Manshiet Nasser (GOPP, Manshiet Nasser District & GTZ, 2001). - The local initiative funds: to co-finance local socioeconomic activities, which are initiated by community members. The project offers technical support during the planning and implementation of such activities. All local initiatives require substantial contributions from the community actors, including the private sector.

⑤ Resettlement

According to the Project Upgrading Plan, there are two proposals to solve the problem of relocating the affected families.

󰋪 The First Proposal

The first proposal suggests that the governorate rent out or sell new housing units in any public housing project for the affected families. This policy is expected to be

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carried out by the authorities.

󰋪 The Second Proposal

The second proposal involves offering new state-owned housing units in the EI- Emiedad "Turnkey Solution" to some of the affected families. According to the information gathered during the field investigations, a rough calculation has been made based on the available information to give a figure as to the affordability of the proposed re-housing solutions.

󰋪 Houses to be demolished

Under the Project Upgrading Plan, it is expected that 10% to 15% of the families will be affected by the improvement in Ezbet Bekhit's infrastructure, and that these will be relocated to a new housing area.

󰋪 Land tenure and construction regulation

Plot borders are identified according to the general guideline plans for the area so as to prepare land tenure transfer. The Project Team will establish a responsible office, which will consist of employees from the Government's property department and the district construction permissions department.

⑥ Establishment of the development plan and permit approval process

󰋪 Ezbet Bekhit field investigation

The field investigation was undertaken in Cairo in June and July of 2002 and in June 2003, during which meetings and interviews were held with the responsible authorities, in addition to several interviews and discussions with local representatives. In addition, there were visits to the project area of Manshiet Nasser, with repeated visits to Ezbet Bekhit. - Level of awareness of the upgrading project among the residents. - Response of the project to the residents' needs. - Participation in the upgrading activities.

󰋪 A strategy to improve housing conditions The Project Upgrading Plan proposed a strategy to improve housing conditions as shown below: - The provision of land tenure in a suitable legal framework, which will guarantee the improvement of housing conditions in terms of room size, accessibility and easier movement within the unit, better ventilation, and more natural light, as well as ensuring the existence of both toilets and kitchens through the connection

102 3. Development directions for the study areas

of the area to the main public network of potable water supply and sewage sanitation systems. - Construction Law No. 106, issued in 1976, should apply to the project's upgrading process. Some exceptions in applying this law might be considered, reflecting the experiences from the Nasriya Project.

The upgrading Project anticipates that the owners will improve their housing conditions once they have secured land tenure. Then, any improvements will be subject to the building laws and regulations. Certain cases where the owners permit the improvement of the tenants' living conditions will complicate the owner-tenant relationship.

󰋪 The first Upgrading Approach

The first Upgrading Approach, which is the participatory upgrading approach, was proposed by the GTZ under the "Participatory Upgrading Urban Program" of the Egyptian-German Cooperation agreement. It aims to alleviate poverty and improve the inhabitants' living conditions in a cost-effective manner, by local community participation at the decision-making, planning, and implementation levels. The Participatory Upgrading project is designed for a participatory building capacity through a process of productive dialogue between various actors, including the authorities. The GTZ provides the technical assistance, mainly for water and waste water installation. The KKW provides the financial support (The Project Team, 1988). The GTZ's general approach is to start 'slowly but surely'. According to the GTZ, this approach is explained as follows: - In term of staffing: each Project Team might consist of up to twenty staff members, preferably not more than twelve. - In terms of scale: Whereas the project may be called "Mounira" or "Manshiet Nasser," their activities will cover only part of the population of those quarters in Manshiet Nasser, where there are 150 thousand households residing" (Komer, 1995).

The start in a limited geographical area within an informal settlement, as with "Wxbet Bekhit," is considered to be a demonstration area within the informal settlement of "Manshiet Nasser," where implementation of the participatory approach could act as an effective catalyst to activate this approach in the surrounding areas, as well as in other informal urban areas. The implementation of the project will consider an integration of the upgrading approach based on physical, social, and economic development measures using the term "learn by doing" to increase the

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implementation efficiency and community involvement.

Currently there are two ongoing demonstration projects under the umbrella of cooperation between the Egyptian and German Governments; Ezbet Bekhit is one of these projects. The success of the "Participatory Urban Upgrading program" concept and its demonstration projects, according to the GTZ, depends on the contribution of the main actors, e.g. the Government, GTZ, and the active participation of the residents, who are supposed to play a significant role at both the planning and implementation levels (The Project Team, 1998).

󰋪 The second Upgrading Approach The second Upgrading Approach has been prepared by the GOPP of the Ministry of Housing, Utilities, and New Communities. It aims at applying a strategy for the rehabilitation and replacement of informal settlements with the concept of "Renewal and Replacement" through the development of a new, proximate, and vacant desert land to temporarily accommodate the first group of inhabitants of the existing community to be relocated from the area, as a first phase. Subsequently, along with planning for the evacuated area, it should be developed so as to be occupied by a second group from the existing community and the plan for the second evacuated area should be put into effect, along with other measures, until all of Manshiet Nasser is developed and upgraded. The implementation is divided into 7 phases. The first involves the "El-Emtedad" area - which has been partially implemented and consists of 6,000 housing units and public service buildings to be built in a 165 feddan (69.3 hectares) area. A photo taken during the field investigation shows the newly implemented housing area (the first phase).

A brochure presents a general site plan for all of Manshiet Nasser. This shows that the implementation in Manshiet Nasser would follow a whole new plan that differs from existing patterns. This means that Manshiet Nasser will be entirely re-designed, with the application of new luxury housing patterns together with road construction networks, social services, a green area, and a new commercial area opposite the highway. The implementing phase is proposed by the government to be the relocation solution for the families affected by the upgrading project. The Manshiet Nasser upgrading project proposed by the government is used in the Exbet Bekhit upgrading project as a "Turnkey" relocation solution for the families affected by the upgrading.

The first phase, which has been implemented, consists of 6,000 housing units and public service buildings. In 2001, around 2,000 turnkey units have been finished and,

104 3. Development directions for the study areas

according to the Ministry of Housing, Utilities, and Urban Communities, have been distributed to residents from the "Eywaa" area, meaning 'sheltering areas' in Arabic, in Manshiet Nasser. No information is available concerning the payment procedures for those units.

According to the Ministry of Housing, Utilities, and Urban Communities, the net cost for each unit is about 35,000 E.G.P. The project includes the following: - 6,000 housing units (53-60ㅡ2/unit). - Primary schools, kindergartens, and public libraries. - More than 1,000 handicraft units (25㎡ each). - Two main service centers and secondary service centers (commercial, security, health, social, communication, religious, etc.) - Green areas and playgrounds in the areas where buildings are not recommended according to the studies.

4) Comparison between Tal El Haddadin and Ezbet Bekhit

① Possibility of land development

In the Tal El Haddadin area, about 90% of the families are connected to the infrastructure (water supply, sewerage, etc.). And employment for each family is relatively stable. Moreover, 50% of the inhabitants show a positive response toward moving and resettlement. The main reasons are the better urban services, lower pollution, and improved living conditions. This means that more than 50% of the total inhabitants recognize the need for the development or improvement in living conditions because of the deteriorated building conditions and bad living conditions from mixed land use.

As a result, the Tal El Hadddin area has good conditions for land development compared to Ezbet Bekhit. However, recently, the inhabitants in Tal El Haddadin have tended to look forward to an increase in the price of land, and they are not willing to sell their land or buildings. Although there are several administrative authorities, they do not cooperate with each other. Also, in the Tal El Haddadin area, the portion of public land is less than that of Ezbet Bekhit. Therefore, there was a concern about complicated land development process and possible conflicts. The Tal El Haddadin area is located at the heart of Tanta City. If a desirable inner-city development occurs in the near future, the development will affect the overall Delta region. Because there are almost no cases of inner-city development, the development can be a good

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example and facilitate further land development projects.

Comparison of the projects Tal El Haddadin Ezbet Bekhit Location City core Outside Cairo City Area Approximately 11 hectare (ha) Approximately 18 hectare (ha) Population 4,519 persons 28,200 persons and 387/ha 1,567/ha density Public units (GOPP, GTZ) * In 1986, the GTZ established the detailed Public (GOPP, related public organization Actor plan and in 1996, the GOPP established and GTZ), local representatives the new detailed plan. Gradual rehabilitation through Gradual rehabilitation participatory programs - It develops each district one after Method - Improving infrastructures (electricity, another. water - Replacing the land use supply and sewerage) Financing Public Public and donor of local unit - Lost of function in urban core - Growth of Cairo City and expansion of - Urban growth, forming slum areas and Necessity informal areas urban sprawl of - Threatening living conditions through - Continuously making living condition development topographical factors deteriorate - Congregation of the poor - Need for reform in urban structure - Especially the poor come in block for - The city is growing and deteriorating. the job Characteristics - The physical and social frame is opportunity. of sticking. - Small handcrafts clustering the areas - The hand craft and light industry are - Two-thirds of the families under the concentrated. poverty line - Shortage of infrastructures - Improving physical conditions and - Improving living conditions, income by Goal replacing industries motivating handcrafts - Reformation of living conditions and - The first case of using donated land and implementing of education courses to Strategy public land support economic activities - Step by step development - Subsiding small businesses The removal, the alternatives of the Replacing the land use and supplying the replacement, the resettlement and Main content housing connected with the industrial area facilitating the settlers' participation in the plan in the south of Tanta City program in the area Actual Now the development is going on and There is no implementation of the development about 20~30% of the development development. Implementation process has been completed.

② Issues

The case study gives us some information on inner-city development.

Firstly, the areas suffer from mixed land use or dangerous natural feature. The residents, however, have no will to improve their living conditions. The fundamental reason of this is that land for informal settlers is insufficient and development

106 3. Development directions for the study areas

experiences are not enough. Secondly, the informal areas have the capacity to offer many job opportunities to informal settlers. A new replacement area is not as attractive as the old area. Lastly, the acquisition of public land is very difficult. In the case of the Ezbet Bekhit area, almost 100% of the inhabitants live illegally on public land. The government legalizes some of the informal areas by selling part of this public land to the settlers and authorizing the informal settlers' land ownership, which is part of the public ownership.

5) Problems

(1) Actors in development projects

Generally, the actor who actually develops the inner-city area is the governorate. However, the governorate does not have enough capacity to independently implement the land development. Therefore, the CBO, NGO, donors, and overseas aid are inevitably involved in the development process. Without their aid and cooperation, the land development process cannot be executed. Also it is hard to cooperate with the residents. Moreover, the private sector is not capable of participating in the inner-city development market, because the private sector and individuals are not permitted to use the right to expropriation related to land reclamation.

(2) Project financing

It is hard to get money from a private developer for land development, because the private sector market is not active. In addition, financial support from the central government is not available for project financing.

(3) Land acquisition

After land reclamation is completed by the local government, the land acquisition method for inner-city development can be completed by selling it to developers or individuals through public auctions or direct selling. This means that all the actors except the public sector can benefit from the construction. However, the low cost of the original land causes speculation, and the rising cost of land creat a hard condition in the construction market.

(4) Establishment of development plans and permit approval process

The development process is same whether the developer is public of private. To

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develop the land the developer should submit the detailed plan to the planning department for approval. But the permit approval process is time consuming one because of lack of related criteria and insufficient cooperation between approval authorities.

(5) Supply of urban infrastructure and burden-sharing system

The cost for inner-city development does not include the cost for the regional infrastructure. Although the development of the Tal El Haddadin area is expected to influence the overall urban area and the physical framework of Tanta City, the rules for urban infrastructures are not provided. There can cause the lack of infrastructure of all the city.

Basically, the government has to pay for urban infrastructures, but in some cases like Tal Haddadin, the government tends to reduce the related budget because of financial problem.

108 3. Development directions for the study areas

3.2 Assiut

3.2.1 Assiut Governorate

1) Overview

(1) Location

Assiut Governorate is located in the Assiut region which also includes the governorate of Al Wadi Al Gadid–the New Valley. Located in the middle of the Nile Valley, Assiut Governorate is bordered with Al Menya Governorate to the north, Governorate to the south, to the west, and it extends eastward to the eastern mountains of . The total area of Assiut is 25,926 ㎢, although only 1,574 ㎢ are inhabited areas.

Location of Assiut Governorate

(2) Water system

Assiut is largely benefited from the Nile River which provides most of water for Assiut's irrigation. The river helped irrigate a total of 308,455 feddans, representing 83% of the total cultivated area in 2004. Major canals within the governorate are Ibrahimia Canal, the Western Nagaa Hamady Canal, and the Eastern Nagaa Hamady Canal. The Ibrahimia Canal serves approximately 79.5 thousand feddans. The Western

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Nagaa Hamady Canal serves 141 thousand feddans, and the Eastern Nagaa Hamady Canal serves 88 thousand feddans.

Ground-water is the other source for the Assiut's need. The city has been struck by flash floods at an irregular interval. In November 1994, Assiut suffered a major natural disaster as a result of flash floods. There is a need to construct dams to transform this natural threat into a development opportunity.

(3) Climate

Assiut is characterized by its clear sky. The number of the days with clear sky is, in average, 26.8 days/month. Assiut lies in the north of Upper Egypt, and is said to have a desert climate. June, July, and August are the hottest months of the year while January is the coldest.

The rain is very rare as it has a dry climate. The average annual temperature is 22.6ºC (minimum 15.3ºC and maximum 29.8ºC). The average amount of annual precipitation is 0.18 mm.

Average temperature and rainfall Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Min 6.2 7.0 10.0 14.4 18.9 21.3 22.4 22.6 20.8 18.4 13.1 7.9 15.3 Max 20.2 22.1 26.4 31.4 35.3 37.0 37.1 36.5 33.7 30.6 26.5 21.5 29.8 Mean 13.2 14.6 18.2 22.9 27.2 29.2 29.8 29.6 27.3 24.5 19.8 14.7 22.6 (mm) 0.2 0.5 0 0.1 0.2 0 0 0 0 0 0.5 0.6 2.3

2) Regional context

(1) Population distribution

The total population of the governorate is 3,362,000 persons which accounts for 4.78% of the total Egyptian population in 2005. Approximately 73% of the people of the governorate live in rural areas, and the remaining 27% live in urban areas.

Assiut Markaz has the largest share of the total governorate population as of 2005 (23.7%), with 44.6% urban population and about 15.8% rural population. Dayrout Markaz has the second largest share of the total (13.0%), with 7.3% of urban population and 15.1% of rural population.

110 3. Development directions for the study areas

Urban and rural population in Assiut Governorate–Markaz Urban Rural Total Number Share of Number Share of Number Share of % urban % rural Markaz (000) Population (000) Population (000) Population Assiut 411.41 44.6 385.00 15.8 796.42 23.7 51.66 48.34 Dayrout 66.91 7.3 369.02 15.1 435.93 13.0 15.35 84.65 Kosia 66.99 7.3 279.96 11.5 346.94 10.3 19.31 80.69 Manflout 77.98 8.5 313.67 12.9 391.66 11.6 19.91 80.09 Abu Tieg 71.20 7.7 195.67 8.0 266.87 7.9 26.68 73.32 Sodfa 21.37 2.3 132.41 5.4 153.78 4.6 13.90 86.10 El Ghaniem 46.86 5.1 52.75 2.2 99.61 3.0 47.04 52.96 Anoub 67.61 7.3 228.73 9.4 296.98 8.8 22.77 77.02 El Fateh 12.42 1.3 216.92 8.9 229.34 6.8 5.42 94.58 El Sahel 28.87 3.1 102.95 4.2 131.82 3.9 21.90 78.10 El Badari 43.23 4.7 162.86 6.7 206.09 6.1 20.98 79.02 New Assiut City 7.20 0.8 0 0 7.20 0.2 100.00 0 Total govenrorate 922.10 100.0 2439.90 100.0 3362.00 100.0 27.43 72.57

① Gender distribution

The proportion of male population is 51.3%, and female is 48.7%, within Assiut Governorate.

Population by gender, 2000 Gender No Locality Male Ratio(%) Female Ratio(%) Total 1 Assiut 373,967 24.2 340,390 23.2 714,357 2 197,257 12.8 193,898 13.2 391,155 3 Alqusiya 155,844 10.1 155,550 10.6 311,394 4 182,622 11.8 168,508 11.5 351,130 5 Abutig 123,472 8.0 116,006 7.9 239,478 6 Sedfa 71,665 4.6 66,473 4.5 138,138 7 ALGhanyim 45,259 2.9 43,949 3.0 89,208 8 136,229 8.8 129,773 8.9 266,002 9 Alfateh 106,203 6.9 99,947 6.8 206,150 10 Sahil Saleam 58,803 3.8 59,555 4.1 118,358 11 Albadari 92,937 6.0 92,096 6.3 185,033 Total 1,544,258 100.0 1,466,145 100.0 3,010,403

source: http://www.asuit.gov.eg/eng/index.htm,

② Population growth rate

The total population is estimated at 3.362 million which represents 4.78% of the total Egyptial population as of 2005. It is considered the 11th largest populated governorate. The total population is expected to reach 4.301 million by 2022, but the annual growth rate is expected to decline (1.19%) as the natural growth rate declines.

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Population index Total Rural Urban 2004 (1,000 persons) 3,351 2,446 905 Ratio of female 48.7 48.9 48.1 Birth rate (new born/1,000persons) 28.5 28 29.9 Death rate (death/1,000persons) 7.3 7.3 7.2 2003 (person/1,000persons) 21.2 20.7 22.7

Assiut Governorate is a predominant rural area. The total urban population in 1996 was 0.764 million, 27.24% of the total population. The urban population grew at an annual growth rate of 2.15% during the 1996-2005 period, which was lower than the total growth rate (2.38%). Rural population constitutes 72.76% of the total population, and its annual growth rate during the 1986-1996 period was 2.46%.

Population growth rate Year Urban Rural Total Urban growth rate Rural growth rate Total growth rate 1960 0.3320 0.991 1.323 - - - 1976 0.4720 1.227 1.697 2.17 1.33 1.55 1986 0.6170 1.599 2.216 2.75 2.68 2.70 1996 0.7640 2.038 2.802 2.15 2.46 2.38 2005 0.9221 2.439 3.362 - - 2.04

(2) Area and administrative district

① Area

The area of Assiut Governorate is 25,926 ㎢ which takes up 2.6% of the entire Egyptian land. The total inhabited area within the governorate is 1,574 ㎢ that is just 6.1% of the total governorate area.

Assiut Governorate areas, 2004 Section Unit Total inhabited domain 1,574 ㎢ Inhabitancy and sparse 75.5 ㎢ Cemetery and utilities 106.3 ㎢ Puddle and wasteland 23.7 ㎢ Arable land within Assiut Governorate Property 1,340 ㎢ Arable land outside Assiut Governorate Property 28.5 ㎢ Percent of inhabited area/total area 6.1% Population density/total area 0.13 (1,000 person/㎢) Population density/inhabited area 2.13 (1,000 person/㎢) Total 25,926 ㎢

112 3. Development directions for the study areas

② Administrative district

The administrative hierarchy of Egypt is classified into five levels (governorate, markaz (kisms), cities, villages, and hai and shayakhai). The Assiut governorate has 11 administrative divisions (markaz), 12 cities - 11 capital cities for the 11 divisions (markaz) and New Assiut City, 56 local units, and 235 villages which include 884 ezab (hamlets) in their jurisdiction.

Administrative subdivisions
Administrative districts Markaz Local units Villages Assiut 8 29 Deyrout 7 41 El Kosia 4 31 Manfalot 7 24 Abu Tieg 4 12 Sudfa 4 17 El Ghaniem 2 7 Abnoub El Fath 10 39 El Sahel 3 16

El Badari 7 19 Total 56 235

(3) Regional economy

① Labour

In 1996, about 223,000 inhabitants left Assiut looking for job opportunities; 42% of them relocated to Cairo, with 27% and 13% relocating to Giza and Qalubia, respectively.

Labour and Unemployment, 2003 Rural Rate Urban Rate Total Workforce of 2004 (1,000persons) 548.8 66.7% 273.9 33.3% 822.7 Employee 499 69.8% 216 30.2% 715 Person out of work 49.8 46.2% 57.9 53.8% 107.7 Percentage of labour/Total population 22.4 30.3 24.6 Percentage of unemployment 9.1 21.1 13.1

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In 2003, the total labour force in Assiut was 822,700 persons, which amounted to 23.9% of the total population of the region. The employed workers at this time were estimated at 715,000 people. Of these individuals, 499,000 worked in rural areas, or 69% of the entire workforce, and 216, 000 worked in urban areas. Unemployed individuals amounted to about 114,826 persons, which corresponds to 13.89% of the labour force. This unemployment rate greatly exceeded the average unemployment rate of Egypt, which was 9.8% in 2003. This high unemployment rate was due to a high population growth rate in urban areas and is still recognized as one of the most serious economic problems of Egypt.

② Economic activity One of the most important economic sectors within Egypt is manufacturing, which includes refining oil, and producing cement and fertilizers. Nationally, micro establishments/workshops (warsha) amount to 6,326 entities. The private sector owns 96% of these small enterprises. According to

, agriculture is the major economic activity in the Assiut governorate, which employs about 52% of the labour force in that region. At the national level, agriculture accounts for 31% of the country's economic activity. The service industry comes in second, which accounts for 23% of the total employment. Manufacturing occupies only 6.4% of employees in Assiut, with 14% at the national level.

Population (15 years and over) of the governorate stratified by economic activity, 1996 Governorate Economic Activity Employment (1,000person) % % of Egypt Agriculture 324.5 51.5 31.2 Mining 1.6 0.2 0.4 Manufacturing 40.2 6.4 13.8 Electricity, Water and Gas 4.3 0.7 1.0 Construction 27.9 4.4 8.1 Trade, Restaurants and Hotels 35.7 5.7 10.0 Transportation and Storage 19.7 3.1 5.8 Finance, Insurance and Real Estate 23.1 3.7 4.5 Public and Social Services 143.3 22.7 24.1 Undefined 6.9 1.6 0.6 Total 630.2 100.0 100.0

③ Industrial facilities

Since the 1980s, industrial development has been Egypt's main development strategy. Several new industrial areas have been established to create jobs, increase

114 3. Development directions for the study areas

industrial production and expand the inhabited area. There are seven industrial zones in the Assiut governorate for industrial investment projects, along with several factories.

The major factories are the new Assiut electric power station, Assiut cement plants at Bani Ghalib, an oil refinery at the Gahdam/Mafalut Locality, a chemical industry development company (Sid drugs plant), Upper Egypt for textile and weaving (textile plant in Assiut), Nile Company for oil and soap, Bani Quarah plant-Sedfa plant. Others include the financial and industrial company (fertilizer plant in Assiut), a plastic pipes plant in Assiut, Abutig Eastern Company for tobacco and cigarettes, Abutig Locality Cotton Spinning and Weaving Company, and El-Nasir Company, a bottling plant known as the 'Assiut Coca-Cola plant.'

④ GDP In 2000-2001, the GDP of the Assiut Governorate was estimated at 8,426 million L.E., which represents about 2.5% of the GDP of Egypt. The agricultural sector of Assiut represents about 4.6% of the national agricultural product. The second sector is social and personal services, which occupies about 27% of the GDP of the governorate, with commodity production services representing approximately 25% of the GDP of the governorate. The table below shows that manufacturing and mining in Assiut occupies only 10.1% of the GDP of the governorate. The per capita GDP is about 3,158 L.E., which is lower than the average GDP of Egypt. The Assiut governorate ranks 19th among the governorates of Egypt in terms of GDP.

GDP of the governorate of Assiut, 2000/2001 GDP of the % of the % of the GDP Economic Sectors governorate governorate of Egypt (million L.E) Agriculture 2,615.6 31.0 4.6 Manufacturing and mining 850.7 10.1 1.3 Electricity 232.2 2.7 4.4 Construction and building 378.9 4.5 1.9 Total of the commodity production sectors 4,077.4 48.3 2.4 Transportation and transit 479.1 5.7 2.1 Trade and finance 1,565.7 18.6 2.2 Tourism 32.1 0.4 0.6 Total of the productive services sector 2,076.9 24.7 2.0 Total of social and personal services 2,271.6 27.0 2.8 Total GDP (million L.E) 8,425.9 100.0 2.5 Per capita of the GDP (L.E) 3,158.0 - -

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The governorate of Assiut is endowed with a multitude of natural resources including land and monuments. It has networks of roads and railways in addition to good soil and a climate suitable to cultivating high-quality crops. More attention should be paid to improving the physical and social infrastructures. The developed industrial zones will ensure the sustainability of these investments.

(4) Infrastructure ① Transportation and road networks The road networks are composed of highways, arterial roads, local highways and internal roads, all of which carry freight and transport passengers among regions. As of 2003, the total length of the area's paved roads was 2,521km, which amounted to 83.8% of all road networks.

Assiut governorate statistics regarding transportation and road networks show that the status of the connectivity among transportation and road networks is satisfactory, with the state roads connected to the networks of the neighboring regions. That is, the networks in Assiut are linked to the road networks of the surrounding regions: Cairo- agricultural road with a total length of 905km, and 590-km Cairo-Assiut desert road located on the west bank of the Nile. Moreover, the Cairo-Assiut railway passes through the Assiut station with another stop within Assiut Markaz. The Assiut airport, which is located 35km from the city center, is planned to serve as the international airport in the region. The Assiut governorate has also developed along the Nile Canal (Cairo-Aswan), and there are two public and three private marine ports in the region.

Road and paved ratio, 2003 Sector Length Rate Total length of paved roads 2,114.0 ㎞ 100.0 Highways 134.0 ㎞ 6.3 Arterial roads 401.0 ㎞ 19.0 Local highways 1,140.0 ㎞ 53.9 Internal roads 438.6 ㎞ 20.7 Total length of the unpaved roads 407 ㎞ Total population/paved roads 1,424 person

② Water & Sewage supply The potable water, which is supplied through the water supply system, has greatly increased from 58.4% in 1976 to 83.9% in 2002. The Assiut governorate is absolutely dependent on the Nile River and maintains 734 ground-water wells for drinking water. Some 76% of the drinking water is supplied using ground-water.

116 3. Development directions for the study areas

Potable water and sanitation coverage, 1996 % of the population connected to public Governorate Population thousands networks1) Water Sanitation Assiut 2,802 49.79 3.90 Upper Egypt 21,646 37.27 9.98 Nationwide 59,313 59.75 26.25

Source: Central Agency for Public Mobilization Statistics, Statistical Year Book, 1993-1999

Main polluting factories and the amount of liquid industrial wastes Ratio to the entire Sewerage amount Governorate Number of factories factories of the nation (㎥/day) Assiut 6 1.81 35,440.0 Nationwide 331 100.00 2,387,126.7

Source: Egyptian Environmental Affairs Agency (EEAA), General Organization for Industrialization (GOFI), Industrial Environmental Map, Progress Report, Part 1, pp.13-1991.

The capacity of the water supply facilities, or the total drinking water output, is 384,000㎥/day, with the supply amount, or the total water consumption, totaling 321,000㎥/day as of 2003.

Water supply, 2003

Classification Total Rural Urban Unit Total amount of water produced 384 192.0 192.0 1000 ㎥/day Total amount of water consumed 321 180.0 141.0 1000 ㎥/day Amount consumed / person 96 74 156 Liter per day/person Amount produced / person 115 78 212 Liter per day/person

Source: Central Agency for Public Mobilization and Statistics (CAPMAS), 2003.

Person share from total quantity of water productivity

115 120 98 100 76 80 60 40 20 0 2001 2002 2003

Person share from total quantity of water productivity Source: Central Agency for Public Mobilization and Statistics(CAPMAS), 2003.

1) Computed based on the number of persons per room, number of rooms per residential building, number of residential buildings connected to public networks for the delivery of drinking water and collecting wastewater.

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The amount of water supply per person, per day is 96 liters. The facility capacity assignment increased from 76 liters in 2001 to 115 liters in 2003. Despite this average increase of 39 liters, the region suffers from a serious shortage of water supply and facilities, necessitating continual future improvements. In the region, there are a total of 11 sewage stations with a per-day disposal capacity amounting to 51,000 QM. The average disposal amount per person is 17 liters per day.

Sewage stations Classification Unit Total number of sewage stations 11 Total capacity of sewage stations 51,000 QM/day Average disposal per person of the total sewage capacity 17 litre/day

Source: www.assiut.gov.eg

In Assiut, waste water is now treated in two ordinary water treatment plants, and a third plant is under construction. In other cities, there are seven treatment plants that use oxidization ponds to treat wastewater. In Assiut, sludge is dried in pools, which are directed to the sun. The treatment of sludge is extremely limited due to the limited capacity of the treatment ponds. As a result, sludge is often deposited directly to agricultural land as soil conditioner. This practice creates serious environmental hazards. The sludge often contains pathogens that infect those who handle the sludge and heavy metals that enter into the food chain.

③ Solid Wastes

Assiut generates about 977 tons of municipal solid wastes daily in cities and 737 tons in rural areas. The means of collecting and transporting the waste is limited, with only about 36% of the total urban waste collected. The capacity for collecting and transporting solid wastes can be increased to 72% when idle machines recover their capacity within two to four years. There is no proper, environment-friendly sanitary land fill in Assiut. All waste is dumped into poorly constructed dumps. There is a need, therefore, to develop a sanitary land fill, or at least a transit station, near the wastewater treatment plants where sludge and municipal solid waste can become the inputs of a co-composting process that transforms both wastes into organic fertilizers.

Health care facilities in all cities and districts of Assiut produce 16.7 tons of waste daily. Hazardous waste represents from 0.25% to 0.33% of the total waste collected

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from medical establishments. This equals between 4.2 to 5.6 tons per day. Plastic bags are not used and there is no system for classifying medical solid waste in medical establishments. There are a limited number of incinerators used for publicly-managed health establishments in Assiut City.

Assiut has a significant manufacturing base that contributes to water, land and air pollution. However, there is no proper information on industrial solid waste produced. In addition, no record of other sorts of solid waste exists, which includes such wastes as construction and demolition debris, sludge and dredged materials from drains and canals, and agricultural waste including manure. These wastes end up on the side of highways, and banks of canals and drains, where they become not only eye-sores, but worse, they contribute to air quality degradation on windy days, become a source of infection and habitat for rodents and other sorts of pests, and collectively pose serious threats to public heath. This problem negatively affects the economy.

3.2.2 Assiut city

1) Overview

Assiut City is one of the major cities in Upper Egypt due to its historical heritage. It is the capital of the Middle Upper Egypt Region, which also includes Al Wady Al Gadeed governorate (New Valley). Although Assiut City has a high population density, urban service facilities are mismatched to the population scale. The city is located about 125㎞ south of Menya City and about 95㎞ north of Sohag; 220㎞ east of the New Valley; 530㎞ from Aswan City; and 380㎞ from Cairo City.

Assiut's administrative conditions

Area Population Population density Notice ㎢ % 1,000 person % (person/㎢) Assiut Governorate 25,926 100.00 3,362 100.0 130 8 markaz Assiut City 11.34 0.04 796 23.7 70,194 50 villages

Assiut City is divided into two areas (Hai) where urban planning is progressing. The area of the Assiut City is about 2,780 feddan (11.34 km2) and the main economic activity is the administration service (57.4% of total population). Assiut City was the first area to be developed, with the northern and eastern regions developed later.

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Location of Assiut City

Source: http://earth.google.com

The GOPP and Assiut City especially want to conserve and develop the southern part of the Assiut City, which is called the "Kisareya" area. The Kisareya area consists of historic buildings. The urban infrastructure, including narrow paths, is very poor and building deterioration is very serious.

2) Regional context

(1) Population

① Population growth rate

In 1960, the population of Assiut City recorded 124,000 persons and has increased to 392,000 persons in 2002 (approximately 2.65% growth rate per annum). It is expected to increase up to 458,000 persons by 2017. The total population in the year 2002 was 329,000 people. The population growth rate of Assiut City in 1976 was 3.30%; however, population growth decreased by 2.69% from 1976 to 1986. Later, population growth reached 2.33% from 1986 to 1996. The population density is 145 persons per feddan.

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Population and growth rate Year Population Growth rate 1960 124,000 - 1976 209,000 3.30 1986 273,000 2.96 1996 343,000 2.33 2002 392,000 2.20 2012 440,000 1.20 2017 458,000 0.80

② Population density The population of Assiut is approximately 374,000 according to the 1999 census and the total area of the city is 2,780 feddan. This makes the total density of 132.4 persons per feddan. The spatial distribution of the population is as follows:

Spatial distribution of the population Population density Area Reference (person/feddan) City center zone 110 Garb El Balad area 300 West of the city Kelta zone 115 Feryal zone 105 Governorate zone 100 Kidwany zone 118 El Hamraa zone 130 El Sadat zone 125 Moolemeen zone 110 Teachers zone El Arbeen zone 112 300 Walidiya center El Walidiya and lawyers 260 Boarders of Walidiya 120 Lawyers Industrial zone 40 Residential area

(2) Economic base Assiut City is the capital of both the region and governorate. The number of people involved in economic activity is 93,000. The main economic activity is administration service, with 57.4% of the total population of the City engaged in the administrative sector.

Population distribution according to economic activities Sector Agri. Ind. Adm. Const. Comm. Trans. Unknown Total Number of employee 5.3 11 53.4 6.7 9.8 4.6 2.2 93 (1000) % of employee 5.7 11.8 57.4 7.2 10.6 4.9 2.4 100

The second largest economic activity of Assiut City is agriculture. Manufacturing comes in the third, employing 11.3% of the population.

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Population (15years and over) of Assiut City stratified by Economic Activity, 1996 Assiut City Economic Activity Employment Rate(%) (%)of Egypt Agriculture 5,301 5.7 1.6 Mining 407 0.4 25.7 Manufacturing 10,614 11.3 26.4 Electricity, Water and Gas 1,764 1.9 40.7 Construction 6,739 7.2 24.2 Trade, Restaurants and Hotels 9,897 10.6 27.7 Transportation and Storage 4,606 4.9 23.4 Finance, Insurance and Real Estate 5,779 6.2 25.0 Public and Social Services 46,222 49.4 27.8 Undefined 2,254 2.4 22.8 Total 93,583 100.0 14.8

It is worth pointing that Assiut City does not have a major petroleum sector despite the existence of Assiut Oil Refinery. Furthermore, although Assiut owns one of the major cement producing plants of the nation, the area's share of the manufacturing sector is not significant. One reason for this inconsistency is the quality of existing economic data. The new census is scheduled to be released in 2007, and it is expected to reveal changes in the employment structure of the city.

The government of Egypt has launched the development of New Assiut City to attract investments and population outside the congested Nile Valley. The government developed three industrial parks in Assiut, Abnoub and Abu Teeq. In 2002, 565 plants were developed in these three parks, with a total capital reaching about 657,044,000 L.E. and generating an estimated 22,462 job opportunities, most of them in the food and chemical industries.

(3) Urban structure

① Area analysis

Assiut City is surrounded by agricultural area, with the railway between Cairo and Aswan dividing the city into two sectors. The eastern part of the City features new residential areas, while the western part includes the oldest area of the City. Assiut City is surrounded by the Nile River to the east, Ibrahimia canal to the north, West Mountain and valley to the south and the New Valley governorate to the west.

East of the railway tracks is considered the more distinguished area (with many new

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buildings). West of the railway is the old part of the city, which is characterized by a deteriorating urban environment, mainly due to the surrounding informal areas.

Assiut City spatial structure
Districts of Assiut City

② Urban growth pattern

Four major phases distinguish the historical growth of Assiut City's urban form.

Before 1957: The urban block was modest, like all the cities in Upper Egypt. Nothing distinguished the City except its famous markets such as the Kisareya, and the many different forms of craftsmanship. Therefore, the City was basically comprised of the Western District (the original part of the City) located in the southwest, Walidiya district in the north, which was originally a separate small village adjacent to the city, and the El Hamra district, located facing the Nile River, which was also a separate urban community.

Between 1957 and 1973: Assiut University was constructed in the northwest part of the city. The new axes created a boom in construction. In addition to approximately 300 feddan allocated for the University, a Ferial district emerged in the east of the city, and the adjacent Qatlla district from the south. This was due to the residential requirements of the immigrating students, faculty, staff and administration. An electric

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power station and a religious institute were erected in the southeast part of the city.

Between 1973 and 1985: Al Azhar University was constructed at the west of Walidiya and north of Ibrahimia Channel. To the south was constructed the El Sadat district, Nazlit Abd Ilah houses, El Arbaeen houses and the Mualimin district.

After 1985: The city was affected by the open-door policy (Infitah) although the implementation was realized at a later time. With the easing of construction laws, incursions into most of the small buildings and demolishing of historical villas took place, and in their place, high-rise towers loomed over the city. This caused a vertical inflation of the City especially in the main streets like El Gomhoriya, the Nile, Ibrahimia Channel and downtown. In addition, the El Huqukieen district emerged west of El Walidiya and in the Ferial district all the vacant lands were built on.

Urban growth pattern of Assiut City Before 1975 1957~1973

1973~1985 After 1985

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Historical progress of urban mass

③ Major areas of the city The city is divided into 12 major areas:

󰋪 City Center District

The City Center District is the central area where most of the commercial, administrative and entertainment activities take place. It is also the main commuting hub with the railway station, and bus and taxi stops. This district has a blend of old and new buildings, much like the rest of the city. Its boundary to the east is the Army Road adjacent to the railway. Its other boundaries are intertwined with the residential area; thus it is difficult to be precisely separated. The most distinguished streets in this area are 26 July and 23 July, and from these streets less important streets extend and are considered part of the City Center area. The most important landmarks of the area are the railway station, district bus and taxi stops, winter and summer cinema houses, Banks Square, big department stores like Sidnawy, Omar Effendy, Benzion, Cicurel and El Qisaria, the old commercial area. The area also has two bridges, one starting

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from the Station Square heading east towards El Hilali Street. The bridge helps solve the railway crossing problem. The other bridge goes through Army Street to alleviate the congestion in front of the tunnel known as "El Manfathe."

󰋪 Gharb El Balad District (West of the City district)

Gharb El Balad District (West of the City district) is the old area in the city, characterized by narrow, twisting and multi-leveled streets and poor conditions in general. This district is a mix of residential, commercial and crafts shops; however, it is mostly a residential district as evidenced by the high population and high rate of congestion. The most important landmarks of this area are El Megahidin Square, the old university hospital and the cattle market.

󰋪 Ferial District

Ferial District is an exclusive residential area with relatively new buildings. The majority of the residents are of the middle-income class and the district has some exclusive houses. It is characterized by low population density and straight streets, although the streets are narrow and have many intersections. This district is almost triangular-shaped. Its boundaries are from the north Ibrahimia Channel with Gomhoriya and Galaa Streets on its sides. The most important landmarks are the army draft area that occupies a big area in the center; entities seconded to the Ministry of Interior like the Police Hospital and others, and some private hospitals for the university professors. It also has a new branch of Omar Efendy department store.

󰋪 Qalta District

Qalta District is another exclusive area, but not as exclusive as Ferial area. This is because it is older. It used to have some classical villas. Located near the City Center, the district borders with Youssry Raghib Street to the south. This led to the infiltration of commercial and administrative activities to the southern part of the city. The District also borders with the Army Street parallel to the railway to the east, the Assiut University to the north, and Naila Khatun Area to the east.

󰋪 El Muhafza District (Governorate district)

El Muhafza District (Governorate district) is a relatively classy area and includes residential buildings that are above middle-class and some are exclusive. It is characterized by a low population density. Like the Feriel district, this area is almost triangular-shaped. Its boundaries are to the southeast El Nimise Street, the Nile River

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to the east and El Gomhoriya Street to the west. The Nile Street and El Muhafza Street go directly through this district. The most important landmark is the Governorate building, for which the area is named. The Local Authority Council Building (the old governorate), the Courts compound and Coca-Cola Factory are also in this district. It has several exclusive residential Towers overlooking El Gomhoriya Street, with the most famous being El Wataniya Tower, which is a four-star hotel and commercial center. This tower also has high-class villas and spacious apartments.

󰋪 Kidwany District

The area is somehow important due to its strategic location of being near El Muhafaza District; only El Nemis Street to its north separates the two. To the east the Nile renders its western front a special importance with the exclusive residential towers such as El Seoudiya Towers and Nile Tower. At the southern border, there is El Hilaly Street, and western border the Galla Street that is parallel to the railway. What characterizes the area is the private and public schools, the Education Authority and Water Station.

󰋪 El Hamra District

The Kidwany District is somewhat important due to its strategic location near El Muhafaza District; only El Nemis Street to its north separates the two areas. To the east, the Nile renders its western front with special importance to the exclusive residential towers such as El Seoudiya Towers and Nile Tower. At the southern border, there is El Hilaly Street, and western border the Galla Street, which runs parallel to the railway. What characterizes the area is the private and public schools, the Education Authority and Water Station.

El Hamra District has lower standards than the Kidwany district: most of its houses are for middle to low-class residents. Its boundaries are: to the east the Nile River, to the west the railway, to the north El Hilaly Street and to the south El Mallah Channel. Cutting through the district is El Riad Street, a low-quality commercial area with vendors exhibiting their products in the street. Landmarks of the district are the Security Authority and Police Station to the east. Also located in this district is the Housing Authority and Religious Institute.

󰋪 El Sadat District

The El Sadat District is similar in standard to EL Hamra District, but is

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characterized by the invasion of industrial and crafts shop areas. Its streets are full of car repair workshops and car accessory shops. The boundaries are: to the east the railway, to the north 23 July Street and Railway Station, to the west Gharb el Balad district and to the south El Mallah Channel.

󰋪 Al Walidiya and El Huqukine Al Walidiya

Al Walidiya and El Huqukine Al Walidiya District has an urbanized yet rural style; originally, it was a small village that slowly joined Assiut City and became one of its suburbs. It maintained its old style of narrow winding streets and alleys and mud dilapidated, low height houses in spite of the tremendous population density. In the 1980s, the El Huqukine area developed near it was characterized by its modern buildings for the medium and upper-medium income classes, adjacent to which some exclusive towers were erected for the medium, upper-medium and high-income classes. Both districts are, in fact, considered as one area due to their similar geographical location: to the east and north the River Nile, to the south Ibrahimia Channel and to the west El Azhar University constitutes the boundaries of these sections. What distinguishes the area is Assiut University's Central Administration Building, which is referred to as the old university. Most of the professional clubs are located in this district, including the engineers club, Assiut University faculty-staff club, the Governorate General Council staff club and the judges' club, to name a few. In addition, this district also houses the Assiut Prison, which occupies 40 feddan, the Chest Hospital and the Mental Hospital.

󰋪 El Mualimeen District (Teachers district)

El Mualimeen District (Teachers district) is a relatively new district, which was constructed in the 1980s. It did not receive proper attention, however, due to the incomplete essential infrastructure and road network. This rendered the area into a below middle class area. The boundaries of this district are: to the north the ring-road, which is a major highway that caused the isolation of the area; to the east the railroad and to the west and south agricultural land. There are no distinguishing landmarks in this district.

󰋪 El Arbaeen District

El Arbaeen District is considered as El Mualimeen's sister district, as it is located to its west of it and suffers from the same geographical isolation conditions. This district was constructed in the 1970s, and was financed by the Construction Bank as

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an example for nucleus houses. In time, these houses developed haphazardly and the area declined. In addition, some economic housing buildings emerged on peripheries of this district.

󰋪 Industrial District

The Industrial District has large industrial establishments such as the Weaving Factory, Assiut Electricity Power Station and the petrol storehouses. It is located in the southeast of the city; however, it is bizarre that the Industrial District occupies a strip parallel to the Nile River, and that all these establishments overlook the river directly. Although the prevalent activity of this area is industry, it constitutes low- to medium-range housing known as New Nazlit Abdella, which are buildings constructed by the government on agricultural land between the Nile and Assiut/Sohag Agricultural Road.

④ Land use The total area of the city is approximately 2,780 acres, and the land use reflects the major activities and functions of the city. The following table illustrates the land use in Assiut City. It is clear from the table that residential building areas dominate 35%, or 1,010 feddan, of the total area. The two universities account for approximately 23% of the city's total area, which is a very high percentage compared to other cities. The city has very little land (2.3%) suitable for future growth.

Assiut area in the city
Land use

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Land use Land use Area (fd) % Residential building 1010.0 36.00 Community, Residential building 194.0 6.90 Community, Recreation areas 14.0 0.50 Public building 8.0 0.30 Schools 26.4 0.90 Health services 13.4 0.50 Universities 734.0 25.80 Religious building 7.0 0.20 Recreation areas 50.0 1.80 Police area 41.7 1.40 Army area 34.7 1.25 Industrial uses 58.4 2.10 Roads 511.6 18.40 Railway 11.1 0.40 Water 8.3 0.30 Oters 66.1 2.30 Total 2,780.0 100.00

Urban development factors

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⑤ Buildings status

Assiut has a blend of building heights from high (6-12 floors) to medium (3-5 floors) to low (1-2 floors). The Central Business District (CBD) includes deteriorated buildings. The urban out-skirt has new development areas; however, in the area, buildings are in a good state, as well as in the nearby university district.

⑥ Road network

Assiut City is divided into northern and southern regions, which are separated by the railway between Cairo and Aswan. There is a 30m wide ring road connecting other cities and Assiut.

Building status
Road network

3.2.3 Supply and demand for land development

The urban area of Assiut City is located in the middle of agricultural land, which makes it impossible to implement urban development on any one of the four sides of the city. Some districts of the city have inadequate urban services and infrastructures because of high population density. This influences the residential areas, which are seriously compacted with no space between them. Such a high population and development density creates informal areas in Assiut City where an estimated 49,228 persons and about 94,674 families live. These informal areas number seven areas of Assiut district, another seven in Dayrout, four in Soudfa, five in El-Ghanaim, 13 in

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Quisya, six in Abnoub, six in Sahel Selim, seven in El-Badari and 11 in Manfalout. These areas require immediate attention and actions to improve the quality of the environment, especially in terms of securing land titles and tenure.

The land development market is insecure in supplying land because land registration is not defined. The governorate does not perform its role related to inner-city development and inner-city development methods are not proper, either. Land supply does not correspond to land demand, which arises from insufficient housing supply in Assiut City. Therefore, the New Urban Community Authority (NUCA) encourages people to gather outside the narrow strip of the Nile valley. It aims to redistribute the population to meet the present needs of the Assiut City region. It encourages development on desert land to preserve agricultural land, while also meeting the demands for proper housing.

There is a reason why the NUCA establishes new urban settlements to draw out the present and future population from Assiut, the mother city. The NUCA aims to reduce the burden and problems emanating from severe population density. This integrates the mother city with the new city in terms of industrial activities. This also provides work opportunities, services and general infrastructure, which, in turn, raises the standard of living and thus attracts the new inhabitants.

3.2.4 Constraints and Opportunities

1) Constraints

(1) Urban structure limitations and hindrances

The urban area is in the middle of agricultural land, and this affects the direction of the city's potential development. The most important natural and artificial limitations are as follows: - The Nile River (natural limitation) - Ibrahimiya Channel (artificial limitation) - Railway (artificial limitation)

The first two could be the strongest factors in delineating the city's boundaries to the east and the north. The railway divides the city into east and west. The eastern section is relatively new compared to the west, where informal settlements and old buildings are concentrated.

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(2) Informal growth on agricultural land

Because of the absence of a planning and monitoring system, the city has extended haphazardly in all directions. This expansion has been at the expense of agricultural land, which is of high quality and fertile thanks to its close proximity to the Nile River, Ibrahimia Channel and El Mallah Channel.

(3) Inefficient distribution of land uses

The city's unplanned growth has resulted in extremely mixed land use. For example, a Coca-Cola factory is located at the heart of the city on Gomhoriya Street, the city's most important road. Residential buildings surround Assiut Prison on all sides. The army recruiting area is in the heart of the city and occupies the bid area in Ferial district and Gomhoriya Street.

The General Security Authority and Police control most of the southern bank of Ibrahimiya Channel, which could have been an exclusive residential area. The police' barracks and buildings cause obstruction to area transportation, specifically, the connection to the highway road to Cairo. The Security Bureau and Second Police Station are on the Nile River, cutting off the road with roadblocks and thereby depriving the public from the enjoyment of the Cornish.

(4) Deteriorating urban environment in some districts.

Some districts suffer from inadequate urban infrastructures and related services because of high population density. Social diseases prevalent in Gharb El Balad and Walidiya districts present another serious problem.

(5) Traffic congestions

The roads are narrow and have many intersections at inappropriate locations. In general, the network of roads lacks functionality, organization or a clear and logical layout. The winding roads, especially in the old districts like Gharb El Balad and Walidiya districts, exemplify this problem. Also, the railroad transverses the city, dividing it into two districts.

(6) Inadequacy of utilities services in some residential areas

Many of the city's residential areas, especially those in Gharb El Bald, have no potable water networks. Moreover, sewer networks in some areas are deteriorated, and the sewerage leaks in many locations (50 percent loss). Some areas lack sanitary

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networks, a circumstance that threatens the general health of the people and pollutes the area.

Inadequacy of utilities services

2) Opportunities

(1) New settlements development

Although limitations hinder outward extension of Assiut's urban development, suitable areas for growth exist in the empty lands. Gharb Al Balad and Walidiya, two low population density areas within the city, also can be improved and upgraded. Furthermore, it is also possible to direct future population increase to a suggested urban compound in the northeast of Assiut (east of the Nile), on the fringes of the desert (the suggested compound at the Assiut valley), or to the suggested compound west of Assiut, after conducting planning and implementation studies.

(2) University city

Assuit's status as a university city has affected its urban growth. The city needs to encourage and strengthen its research and development businesses in order to form an industry cluster during future urban development. Because universities and educational

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facilities are converged, highly educated people are plentiful. This advantage should motivate job creation in Assuit City.

Opportunities

3.2.5 Situations and problems of new urban community development

1) Overview

As a developing country, Egypt faces many problems, some of the most important of which are rapid increase in urban population, high population density in general, and continued migration from rural areas to urban areas that encroach on agricultural land. People agree that the estimated population increase in the coming 30 years must be outside the Valley and Delta, in areas such as reclaimed desert land. This would require a development strategy of drawing up a new map of Egypt.

New cities in Egypt have been constructed within the framework of the following basic principles: - Redraw the residential map of Egypt by utilizing the resources of its desert land

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and coastal areas to attract people and alleviate pressure on old cities - Establish new cities and communities as part of a regional construction plan, within the framework of the general national plan to increase national income and provide work opportunities - Build industries in specific areas to create economic benefits from industrial projects - Create a suitable environment to attract capital to the new areas and cities by giving facilities and incentives to the projects, enabling them to perform their roles in industrial production and to provide necessary services.

(1) Development of New Communities Policies in Egypt (National Level)

In 1968, the Greater Cairo Regional Planning Committee delineated the government's plan to construct new cities in Egypt. It recommended constructing of four new cities in the desert land by 2000, with each city accommodating 25 million people to deal with the increase in population. - In the Work Paper prepared in 1973, the late President Anwar el Sadat stressed the need to find a solution to urban growth by allocating new areas for population settlements and economic activities. He also called for constructing new cities in the desert to protect agricultural land and push forward the process of distribution population from the narrow valley. - Early in 1975, planning began for Burg El Arab, and Sadat City, with expectations of 5 million inhabitants per city by 2000. - Early in 1979, plans were made for new satellite cities (, 15 May, El Ammal and El ) that would have smaller populations than those of the independent cities. Law No. 59 of 1979 created the New Urban Communities Authority (NUCA) to be the state authority responsible for planning and developing new communities until this task was handed over to the Local Units. - In 1984, officials made plans for the Greater Cairo Region through 2000. The strategic urban development section recommended distributing the 1984 population to sectors consisting of approximately 1-2 million inhabitants, providing that self-sufficiency was achieved in all sectors. The Greater Cairo Region was divided into 11 harmonious sectors. An additional five sectors were added subsequently, raising the total to 16.

Planners operated within the framework of a dual strategy based on:

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- Finding new settlements with a new level of construction situated between the new cities and the extension cities. A settlement's population should not exceed 250,000, and should be situated around or near the new cities, which would provide the major services. - Finding and invigorating special urban development axes between the major urban block in Greater Cairo and the distant new cities on the axes of Cairo/Ismailia-Cairo/SuezCairo/Ain Sukhna-Cairo/Helwan-Cairo/Alexandria desert road and achieve cohesion between the communities through a regional organization. That could provide levels of suitable services, steer the marketing and commercial affairs and harmonize living conditions in the region.

The new urban communities development strategy involves a two-pronged approach: - First: Satellite cities such as El Obur, 15 May and 6 October, which are 20-25 kilometers from Cairo, are meant to benefit from their close proximity to Cairo. The capital is to support the growth of new cities by providing high level services, thereby facilitating dispersion stages. - Second: Independent new cities, such as 10 Ramadan, Badr, El Amal and Sadat, which are 40-90 kilometers from the center of Cairo, function as core supports, fostering and steering urban growth on development axes. They also encourage stage two of disbursement.

(2) Type of new urban communities:

① First type: Satellite Cities

Cities less than 35 kilometers from the mother city, such as: - El Obur: 240,000 inhabitants - 15 May: 150,000 inhabitants - 6th October: 500,000 inhabitants

② Second type: Independent New Cities

Cities more than 45 kilometers from the mother city, such as: - Badr: 250,000 inhabitants - El Amal: 250,000 inhabitants - Sadat: 250,000 inhabitants - Ramadan: 500,000 inhabitants - : 500,000 inhabitants

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③ Third type: New Communities and Settlements

These 10 communities are within short distances of the Greater Cairo urban block and in numbers not exceeding 250,000 people: - First urban settlement: 5 kilometers from Greater Cairo - Fifth urban settlement: 8kilometers from Greater Cairo - Third urban settlement: 8kilometers from Greater Cairo - El Sherouk: 15 kilometers from Greater Cairo - El Sheik Zayed "A": 15 kilometers from Greater Cairo - El Sheik Zayed "B": 15 kilometers from Greater Cairo - El Zuhur: 15 kilometers from Greater Cairo

④ Fourth type: Twin Cities

Cities built south of the valley with populations of 80,000-150,000 inhabitants: - Bani Suef: 5 kilometers from City - New Menia: 12 kilometers from Menia City - New Tiba: 15 kilometers from Tiba City - New Assiut City: 12 kilometers from Assiut City

اﻟﺒﺤﺮ اﻟﻤﺘﻮﺳﻂ دﻣﻴﺎط اﻟﺠﺪﻳﺪة رﺷﻴﺪ اﻟﺠﺪﻳﺪة ﺟﻨﻮب ﺳﻴﺪى ﺑﺮاﻧﻰ ادآﻮ اﻟﺠﺪﻳﺪة رﻓﺢ اﻟﺠﺪﻳﺪة ﺑﺮج اﻟﻌﺮب اﻟﺠﺪﻳﺪة ﺟﻨﻮب اﻟﻀﺒﻌﺔ ﺟﻨﻮب ﻣﺮﺳﻰ ﻣﻄﺮوح اﻟﻨﻮﺑﺎرﻳﺔ اﻟﺠﺪﻳﺪة وادى اﻟﺘﻜﻨﻮﻟﻮﺟﻴﺎ اﻟﺼﺎﻟﺤﻴﺔ اﻟﺠﺪﻳﺪة رﻣﻀﺎن 10 ﺟﻨﻮب ﺳﻴﺪى ﻋﺒﺪ اﻟﺮﺣﻤﻦ اﻟﻌﺒﻮر اﻟﺴﺎدات ﺷﺮق اﻟﺒﺤﻴﺮات ﺑﺪر وادى اﻟﻨﻄﺮون / اﻟﻌﻠﻤﻴﻦ ﻧﺨﻞ اﻟﺠﺪﻳﺪة اﻟﺸﺮوق اﻟﻘﺎهﺮة اﻟﺠﺪﻳﺪة أآﺘﻮﺑـــﺮ 6 اﻟﺸﻴﺦ زاﻳﺪ ﺷﻤﺎل ﺳﻴﻮة ﻣﺎﻳﻮ 15 اﻷﻣــﻞ اﻟﻮاﺣﺎت اﻟﻌﻠﻤﻴﻦ

أﺑﻮ زﻧﻴﻤﺔ ﻏﺮب ﺑﺤﻴﺮة ﻗﺎرون اﻟﻜﺮﻳﻤﺎت /اﻟﺰﻋﻔﺮاﻧﺔ اﻟﻔﻴﻮم اﻟﺠﺪﻳﺪة ﺑﻨﻰ ﺳﻮﻳﻒ اﻟﺠﺪﻳﺪة وادى ﻋﺮﺑﺔ /ﻏﺮب اﻟﺰﻋﻔﺮاﻧﺔ اﻟﺒﻮﻳﻄﻰ / ﺳﻴﻮة ﺷﺮق ﺳﻴﻮة اﻟﻔﺸﻦ ﻃﺮﻳﻖ وادى ﻓﻴﺮان ﺑﻨﻰ ﻣﺰار /راس ﻏﺎرب ﺳﻤﺎﻟﻮط اﻟﺠﺪﻳﺪة ﺑﻨﻰ ﻣـــﺰار ﺷﺮق اﻟﻄﻮر / رأس ﻣﺤﻤﺪ اﻟﻤﻨﻴﺎ اﻟﺠﺪﻳﺪة ﻣﻠﻮى اﻟﺠﺪﻳﺪة اﻟﻮاﺣﺎت اﻟﺒﺤﺮﻳـﺔ دﻳــﺮوط

أﺳﻴﻮط اﻟﺠﺪﻳﺪة اﻟﻤﺪﻳﻨﺔ اﻟﻐﺮﺑﻴﺔ ﺑﺄﺳﻴﻮط ﺳﺎﻗﻠﺘﻪ اﻟﺠﺪﻳﺪة دﻳﺮوط / اﻟﻔﺮاﻓﺮة اﻟﻔـﺮاﻓـﺮة أﺧﻤﻴﻢ اﻟﺠﺪﻳﺪة ﺳﻮهﺎج اﻟﺠﺪﻳﺪة

ﺮ ﻗﻨــﺎ اﻟﺠﺪﻳﺪة ــ ﻤـ ﺣ ﻧﺠﻊ ﺣﻤﺎدى اﻟﺠﺪﻳﺪة ﻷ ا ﻃﻴﺒﺔ اﻟﺠﺪﻳﺪة ﺮ ﺤ اﻟﺪاﺧﻠـﺔ ﺒ اﻷﻗﺼﺮ اﻟﺠﺪﻳﺪة اﻟ

أدﻓــﻮ اﻟﺨﺎرﺟـﺔ

أﺳﻮان اﻟﺠﺪﻳﺪة وادى اﻟﻌﻼﻗﻰ آـﺮآـﺮ

ﺑﺌﺮ ﻣــﺮ ﺷﺮق اﻟﻌﻮﻳﻨﺎت

ﺗـﻮﺷـﻜﻰ

New Existing cities New Communities under planning New Communities under studying

New communities development in Egypt

138 3. Development directions for the study areas

(3) Housing Supply by the New Urban Community Authority (NUCA)

Some 450,894 housing units have been constructed within the 20 new cities and communities managed by NUCA since its establishment in 1979. NUCA constructed 251,061 (55.7 percent) of the units and the private sector constructed 199,833 (44.3 percent).

The housing units provided by the private sector were constructed by investors as well as individuals who built private residences, and housing cooperatives that built apartment complexes.

shows the breakdown of the housing units built by the private sector.

Number of the housing units constructed by the private sector in new cities according to the housing types and 5-year National Plans until 30-6-2005 Year Economy Middle Upper middle Luxurious Total From the start until 977 14,938 10,264 933 27,112 30-6-2005 1995-1996 194 6,092 2,438 404 9,128 1996-1997 920 1,051 1,331 44 3,346 From the start until 2,091 22,081 14,033 1,381 39,586 1996-1997 1997-1998 1,241 1,852 1,260 804 5157 1998-1999 1,317 1,668 663 1,041 4,689 1999-2000 640 1,215 1,949 463 4,267 2000-2001 711 4,969 2,150 774 8,604 2001-2002 1,501 17,371 18,775 15,267 52,914 1997-2002 5,410 27,075 24,797 18,349 75,631 2002-2003 933 24,501 26,363 8,838 60,635 2003-2004 649 8,004 3,128 206 11,987 2004-2005 976 4,577 6,116 325 11,994 2000-2005 2,558 37,082 35,607 9,369 84,616 From the start until 10,059 86,238 74,437 29,099 199,833 30-6-2005

Source: Ministry of Housing, Utilities and Urban Communities, 2005

It should be noted that from 1982 to June 30, 2004, NUCA invested more than 23.4 billion L.E to develop these new cities. Of that sum, more than 6 billion L.E. went toward constructing housing units. The majority of the housing units built by NUCA are in 17 of the 20 new cities because the remaining three cities were in the initiation phase, their infrastructure incomplete.

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Total investment by the NUCA in developing new cities First 5-year Second Third 5-year Fourth Fifth 5-year Investment Plan 5-year Plan Plan 5-year plan Plan Total 1982/1987 1988/1992 1993/1997 1998/2002 2003/2004 Water Supply 271.1 542.5 1,350.3 3,675.8 848.3 6,688.0 and Sewerage Housing 491.8 743.4 1,052.5 2,339.8 1,192.5 5,820.0 Roads 300.0 473.3 891.1 2,401.6 269.5 4,335.5 Services 243.2 901.5 1,851.7 2,922.9 677.0 6,596.3 Total 1,306.1 2,660.7 5,145.6 11,340.1 2,987.3 23,439.8

Source: Ministry of Housing, Utilities and Urban Communities, 2005

Total number of housing units constructed by the NUCA from 1982 until June 2004 Number of Housing Units New City Implemented On going Total 1 New Beni Swif 5,157 586 5,743 2 1,894 0 1,894 3 New Assiut 2,930 200 3,130 4 Tieba 1,579 200 1,779 5 32,657 0 32,657 6 El-Shorouk 25,078 390 25,468 7 El-Sheikh Zaied 11,045 20 11,065 8 New Menia 3,848 0 3,848 9 Badr 15,476 765 16,241 10 El_Ubour 19,467 407 19,874 11 New 11,140 378 11,518 12New Salehiya6260626 13 Borg El-Arab 8,941 840 9,781 14 Sadat 8,384 430 8,814 15 15th May 16,410 0 16,410 16 10th Ramadan 25,944 0 25,944 17 6th October 42,845 0 42,845 Total 233,421 4216 237,637

Source: Ministry of Housing, Utilities and Urban Communities, 2005

(4) Development framework

① Actors in development projects New cities or urban communities programs were launched in 1974 with the objective of creating independent communities that could attract increasing population outside the Nile Valley and help protect limited agricultural land from informal encroachment. Although the programs were adjusted several times to produce different types of urban communities, ranging from self-reliant to semi-autonomous or twin cities, the pattern of management, allocation of land and development conditions did not change significantly.

140 3. Development directions for the study areas

NUCA was established in 1979 to manage this ambitious program. It is the sole body responsible for formulating state policy regarding the establishment of new urban communities, choosing the concerned sites, and supervising and implementing all construction plans within new cities. To achieve the objectives mentioned above, the Ministry of Housing, Utilities and Urban Communities took the lead in: - Specifying building codes and regulations for the new areas in order to ensure the construction of more distinctive buildings than those in the old urban centers - Setting up wide-ranging plans to extend infrastructure networks to these new cities and establish land subdivision maps to be utilized according to development phases - Specifying clear environmental regulation for these new cities to ensure that all activities remain environment friendly.

󰋫 Law No. 59, 1979

The main governing law concerning disposition and development of land for real estate purpose is Law No. 59, 1979, which concerns establishment of new urban communities. The law gave NUCA the mandate to be the only governmental entity responsible for planning, establishing and managing new urban communities in Egypt. The law emphasized the following points:

First, NUCA is the responsible entity for choosing the locations for establishing these new communities and preparing general and detailed plans for these communities. This selection and preparation of plans can be through NUCA or other concerned agencies such as the GOPP, or consultancy firms.

Second, the law states that land with a distance that not exceeding 5 kilometers from the new urban community from all directions, defined by NUCA, is not to be disposed, used, subdivided or developed by any projects without approval of NUCA. In addition, land with a distance of 100 meters along the two sides of the public roads leading to NUCA is to be subject to the same conditions.

Third, a degree from the prime minister decree is to be issued disposing of the state-owned land that has been selected for establishing new urban communities and their roads and also the land mentioned in the previous clause free of charge. Such land is to be considered for building. After the issuance of this law, it is totally prohibited for any person or entity to own, hold or encroach upon any part of this land. In addition, it is totally prohibited to construct any buildings or occupations

141 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

without permission of NUCA.

② Project financing

󰋪 Land sale within new urban communities

The sale of land within new urban communities comes in the form of Takhsis (i.e. a transfer of ownership on the condition of satisfying certain criteria such as abiding by the land use and project type, and/or paying land price installments).

󰋪 Land evaluation

Land prices within each new city are determined by the main land evaluation committee within NUCA. This committee usually sets land prices according to the prevailing prices in the city or through updating old prices based on recent public auctions that took place in the city. However, this process has stopped recently since the demand for land within the city peaked.

󰋪 Transfer of assets (Naql Asoul)

The transfer of assets (Naql Asoul) usually applies to land that would be dedicated to another governmental organization without paying the land price. Through this mechanism, the land is evaluated and its value is deducted from the overall main assets belonging to NUCA and consequently from NUCA's overall debt toward the National Investment Bank. Usually, a prime ministerial decree is issued for such a transfer of assets. The land's new owner organization cannot develop the land without the approval of NUCA and must develop it according to the authority's planning and building requirements.

③ Establishment of development plan and permit approval process

󰋪 Institutional and regulatory framework

NUCA is allowed to make all kinds of disposals and procedures that could lead to the fulfillment of programs and set priorities. Its bylaws also allow it to enter into direct contracts with persons, firms, banks, and international and national organizations. Furthermore, it is permitted to grant concessions to infrastructures and projects in new urban communities, according to the following procedures: - The selection of the beneficiary should be within a framework of transparency and competition - The concession period should not exceed 40 years from the signing of the

142 3. Development directions for the study areas

contract - The net profit should not exceed 20 percent of the total allocated and permissible capital - The excess in net profit can be used as special reserves for years where the net profit is less than 20 percent. The excess can be also used to improve and extend the infrastructure or reduce prices - Should the allocated and permissible capital not exceed 10 million Egyptian pounds, then a decree concerning the concession would be issued by the cabinet based on a decision by NUCA's board. Apart from this case, a law should be issued in order to grant the concession or commitment - NUCA's board is allowed to exempt projects related to national economic development from the concession right based on a decree from the cabinet.

All agencies concerned with development projects or industries, whether governmental or non-governmental, should inform NUCA and seek opinions on establishing projects from new urban communities according to agreed plans. NUCA is to respond to these entities within a one-month period. The prime minister would resolve any disagreements between NUCA and concerned entities regarding the locations of these projects.

Until the new urban community is transferred to the local government unit (according to clause 50 of this law), NUCA and its related agencies or units have the full mandate and authorities of local units and the same financial resources. According to current laws, bylaws and decrees, NUCA is responsible for approving and issuing licenses required for establishing and operating all activities, projects, buildings, infrastructures and services.

NUCA's board is the only entity responsible for setting regulations and procedures for the concession of land and buildings located within new urban communities. In case of violation of these procedures, the board may cancel the concession if the developers do not remove the violation within the period set forth by NUCA in a formal letter. The cancellation is to be implemented under administrative order.

It is prohibited for anyone who owns land or buildings within a new urban community to sell, dispose or transfer ownership before paying the total price of land and all other costs mentioned in the contract. It is prohibited for any governmental organizations, local units, public sector companies or any entities holding state lands

143 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

to dispose of any desert and agricultural land outside the boundaries of existing cities for the purpose of subdivision or development without the permission of NUCA. Also, it is prohibited for any private entity or person who owns desert and agricultural land outside the boundaries of existing cities to build on such property without the permission of NUCA. NUCA's board is to set the rules organizing the development of such lands.

󰋪 Operational procedures

Locations of these cities have been proposed based on the overall development policy in addition to several technical criteria concerning site selection, soil suitability, topography and other related issues. The GOPP usually conducts the proper analysis for each new urban community and conveys the coordinates for the community to NUCA. A decree from the president or prime minister is then issued, allocating the selected land with its defined coordinates. This final step is taken after acquiring the approval of the minister of defense and Egyptian Antiquities Authority.

④ Supply system of developed land

󰋪 Allocation

NUCA is the sole body that determines which land in a new city goes to whom. Accordingly, an investor does not have the freedom to choose a precise parcel of land in a new city. Usually, investors in real estate development apply for acquisition of the land through NUCA's Technical Affairs Sector.

Some investors do not specify any preferred location within their applications. In such cases, NUCA directs the investor toward a specific new city or offers him options. Other applicants specify the new city and area they require. For these investors, NUCA makes a decision based on the following issues: - The availability of land for real estate development within the investor's preferred new city - The investor's past experiences in real estate development - The investor's financial capabilities - The type of real estate or development projects (i.e. villas, residential blocks, for high or middle class).

To encourage decentralization in the decision-making and management of these new cities, NUCA has emphasized the establishment of a Real Estate Committee within

144 3. Development directions for the study areas

each new city headed by the head of the New City Agency. This committee is to decide the allocation of land for real estate or residential or other development activities. However, NUCA's Technical Affairs Sector still makes the main decision for large parcels of land. The sub-committee within each new city is to assume several roles, which involve: - Distinguishing the needs of the new urban community from the different land uses in coordination with NUCA's Technical Affairs Sector, in liaison with the master plan and detailed plans of the new city - Distributing activates according to their types in coordination with NUCA's Technical AffairsSector, in accordance withthe master plan - Studying and proposingprivilege percentage of land parcels and residential units - Recommending the disposition of the suitable land according to land use and their specific location within the master plan - Following up the implementation of industrial, tourist, services and residential projects - Reviewing and approving the recommendation of defined land and real estate prices

󰋪 lease (Haq Intifaa)

Leasing mostly applies to land within the green belt around new urban communities and also along the northwestern coastal zone under the disposition of NUCA. Usually, a lease is used for land that is to be reclaimed. NUCA subdivides such land into parcels with an average area of five feddans, only 2 percent of which may be used for buildings that serve the reclamation purpose. The initial lease contract is for three years, after which the plans for developing the land are seriously reviewed. In the course of review, the lease could be extended to a 20- or 30-year period. Within each year, the lease would be around 5 percent of the total cost of the land. After 20 years, the land may be officially transferred to the beneficiary.

⑤ Conditions for government subsidy

All equipment required for projects within new urban communities are exempt from customs' fees or other related duties. Moreover, all loans and credits used for projects within new urban communities are exempt from taxes, fees and interests. The residents within new urban communities are exempt from any real estate or property taxes or duties for 10 years starting from the completion of the real estate.

145 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

All lands used for agricultural purpose within new urban communities are exempt from taxes starting with land suitability for agriculture. The profits of all projects within new urban communities are exempt from all taxes on commercial or industrial profits for 10 years starting from the production date.

2) Case study on New Assiut City

(1) Current situation

① Overview

New Assiut City might be the project area for suburban development as well as a new town development model for further study. New Assiut City is being built east of the Nile with 100,000 target residents. It is establishing a new urban society that has a strong economic base, playing an important role in designing goals on both regional and national levels. The presidential decree #194 for 2000 was issued to establish the city with an area of 33.5 thousand acres. The urban area is 2,470 acres.

New Assiut City

② Objectives

The objectives of the new urban community planning are divided into two groups; the first group objectives are national and regional, and the second group objectives are urban. These goals are as follows: - Attracting the population outside of the tight valley

146 3. Development directions for the study areas

- Redistributing the population inside of the region of Assiut - Preserving the agricultural lands by invading the desert - Increasing the living standards of the region's population - Providing new work opportunities that will encourage immigration to the city

Establishing new urban settlement is achieved by providing a healthy and safe environment, and integrating all necessary elements for its success such as work, housing and recreational services. The distribution of urban land usage in the city must meet the needs of the users and the investors. It is necessary to study the relationship between one usage and its neighboring activity in order to maximize utilization effectively. It is also important to balance the usage between the different plots of land, regarding availing sufficient plots for each activity and allocating an appropriate portion of the urban area for each activity. To achieve suitable population and building density for the functionality of the urban settlement, it is necessary to create a progressive pyramid in all open areas, public service spaces, and road networks on the side of the urban area that will be suitable for the planned units comprising the urban space.

Moreover, achieving proper design criteria and planning for the services and roads throughout the city must consider distributing the public and open areas geographically, with a walking distance suitable for the ages and use frequency of the inhabitants. To provide flexibility, it is important to reach a balance between supply and demand regarding the land, especially in the event of discrepancies between actual requirements and what was projected in the general plan.

Finally, studying the execution must work to achieve the comprehensive integration of the people, their activities, services, infrastructure and the required land.

(2) Areal distribution

① First area

The first area consists of two districts separated by main service axes as follows:

󰋪 First district includes: - Youth housing project area: 42 feddan - Future housing project area: 45 feddan - Residential land plots area: 85 feddan - Family residential housing project area: 45 feddan

147 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

󰋪 Second district includes: - Business area: 330 feddan - Unplanned zone: Separating the industrial activity from any other urban activities, this zone avoids any environmental, visual, and sound pollution for the society by being in the opposite direction of the wind. This allows for the possibility of future extension, and Green areas (green belt around the society, green belt around the industrial zone, seeding trees around the roads, green areas, central trees storage). - Services Axes: The city service center is 105 feddan.

② Second area - Future extension residential area: 950 feddan

③ Third area - Industrial area: 180 feddan

Population

Level Population Duration First 15,000 To 2005 Second 40,000 To 2010 Third 70,000 To 2015 Fourth 100,000 To 2020

(3) Land use plan

According to the table below, land use can be classified into housing, service facilities, industrial areas, green areas and unplanned areas. The unplanned area occupies 42.8% of the urban area. Housing and service areas account for 43.4%.

Land use plan

Number Sector Acre Percentage of the urban zone(%) 1Housing54221.9 2 Service 530 21.5 3 Industrial zone 180 7.3 4 Green zone 160 6.5 5 Unplanned zone 1,058 42.8 Total - 2,470 100.0

148 3. Development directions for the study areas

Land use plan of New Assiut City Source: New Assiut Cty General Plan (1996)

(4) Analysis of the new urban community development process

In the case of the New Assiut City development, the NUCA systematically cooperates with the private sector and non-governmental organization (NGO) for the achievement of wide activity and responsibility. The private sector plays a major role in housing construction. The percentage of privately owned buildings is 95.5%; on the other hand, 4.2% are owned by the public sector. In addition, the non-governmental sector is primarily targeting limited income groups and its efforts are evident through the construction in Assiut just they are evident in the rest of Egypt.

Therefore, it is very important not to neglect the capacity of these groups to finance and build their own houses when designing the residential areas in the new city. This

149 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

leads to minimizing the burden of the government and it is in accordance with the general objectives of housing policies, which allow for the role of the government investment for infrastructure, services, sub-division of land and supervision systems. Technical assistance allows development according to suggested plans and designs.

Analysis of New Assiut City development process

Process Contents -NUCA systematically cooperates with private sector and non Actors in development government organization (NOG) for a wide activity and projects responsibility achievement -The project financing of New Assiut City is complied with the Project financing regulations of New urban communities Law (Law No.59/1979) -Disposing the state-owned desert land that has been selected Land acquisition for new urban communities leading to the NUCA free of charge. Establish development plan -NUCA establishes development plans and approval process and permit approval which could lead to the fulfillment of new city developments. process Construction of -NUCA builds all the infrastructure. The margin profit of land infrastructure and sale also helps to improve and extend the infrastructure and to burden-sharing system support economy housing -The main decision for a large parcel of land lies on the hand of the NUCA's Technical Affaires Sector. A Real Estate Committee within each new city headed by the head of New Supply and allocation of City Agency decides the allocation of land. Leaving the developed land decision of allocating small parcels of land mainly for individual residential purpose to this Sub-Committee in the new city. -The responsibility for infrastructure operation and management is transferred to the local government after certain completion Management of public of development phase is satisfied. infrastructures -Consequently, the loan and interest of new community development are taken charge of by the local government. -All requirements for new urban community projects, and loans and credits are exempted from customs' fees or other related Conditions for government duties. The profits of all projects within new urban communities subsidies are exempted from all taxes on commercial or industrial profits for ten years starting from the production date.

3) Case study : New Fayoum city

(1) Overview New Fayoum City is about 1,300 feddans, and located on the Fayoum-Bani Suweif regional road at a distance of 12㎞ southeast from the existing Fayoum City, 2㎞ southwest of the Gabal Al-Na'loun desert. The existing Fayoum City suffers from overpopulation, and lacks services and public utilities. Because of this, the Fayoum governorates urban development strategy recommends searching for areas that are

150 3. Development directions for the study areas

proper for urban expansion, and they proposed the establishment of five new urban communities. According to development priorities, New Fayoum City was the start of this project.

① National and regional aims

The planning of the New Fayoum City project is based on monitoring aims while helping create a new community that can enjoy its potential and that has a clear strategy of the proposed development. These aims are as follows: - Urban growth on desert land to keep the agricultural plot - Creating a new urban community that is able to absorb and attract the current and expected overpopulation of Fayoum City to alleviate problems resulting from overpopulation, and act as the second city in Fayoum governorate next to the existing Fayoum City. - Creating job opportunities in new activities differing from the current ones inthe governorate while providing spaces for housing, public services and utilities necessary for an attractive development. - Elevating the standard of the region by providing regional services for the surrounding area and creating an integral link between New Fayoum City on the one hand, while simultaneously focusing on development scopes, promotion and improvement projects in the framework of the governorate as a whole and the city site in particular on the other hand.

② Objectives - Creating a distinguished urban environment in terms of health, services, and security where housing, work and services elements are integrated. - Exploiting land optimally and providing spaces necessary for every exploitation with relation to the total urban block and in agreement with natural and environmental elements, demographic constraints, and the proposed economic activities. - Building and population density that is appropriate for the community function and proper for all proposed housing levels. - Creating a hierarchy of services and roads that varies according to planning units and achieves appropriate planning standards and levels while considering the spatial distribution of services in a way that takes into account appropriate spaces for passages. - Observing flexibility during the various levels of city construction in a way that guarantees dividing it into phases and achieving integration among residents,

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activities, services, and basic infrastructure.

③ Development strategy

The New Fayoum City planning project is based on achieving the aims of the planning process and coping at the same time with the general strategy of the comprehensive development in the governorate and north Upper Egypt region as a whole. Thus, the elements of this strategy can be defined as follows: - Moving the urban development axes into desert land away from the agricultural plot suffers a more gradual decrease due to the urban expansion. - Dealing with the penetration of the regional road of Cairo- north of the site by separating the assigned exploitations at its sides in a way that allows for the distribution of the regional activities and road services (presented at its sides) and reduces housing areas overlooking it. - Selecting the site of the industrial area at the southwestern part of the city where few winds blow from this direction. In addition, the site allows the exploitation of the southern movement axis as an independent entrance for the industrial area. - Varying and graduating city entrances (the main entrance, the entertainment area and garden entrance, and the third assigned for the industrial area). - Linking the city to the reclaimable and reclaimed agricultural hinterland by creating kinds of industrial, economic, and educational activities to make use of the existence of that hinterland, which is more than 2000 feddans. - Achieving the standard in relation to distributing housing patterns, and the various kinds of the proposed services. - Having a site for the industrial area opposite of the wind direction, separated from the city by a wide green belt, and linked directly to the city center and the regional roads. - Concerning with open spaces and green areas in an organic form integrated with the various exploitations. - Achieving the flexibility of the master plan by dividing it into phases having executive priorities according to the governorate economy and the investment proprieties in its various projects.

(2) The Master plan

The proposed master plan is established on planning bases derived from the outcomes of the preceding studies. These bases can be summarized as follows: - Supporting regional links between the city and the region by assigning regional

152 3. Development directions for the study areas

services sites and its link to roads, regional movement axes, and city main entrances. - Assigning the residential size of the various district neighborhoods in the framework of every area of the proposed master plan of density, which can in no way exceed 100 persons per feddan. - Observing the nature of the land, and considering areas improper for construction during the planning phrases, strong constraints can be exploited and cultivated to act as the city vent. - Dividing the general master plan into districts, neighborhoods, and areas of clear borders and characteristics to achieve the qualitative, aerial, and service hierarchies in a way that allows all districts to link while visually and organically integrating with the main center. - Assigning sites of various exploitations in accordance with function, size and kind in a way that does not affect movement nor contradict the specialties of residential and service areas in the proposed master plan.

① City center

The target city population is 100,000 persons on a total plot of 1,300 feddans. The city center is located in the middle of the city on 70 feddans that includes central qualitative and specialized services like a hospital, technical secondary schools, and entertainment services such as a sports club. It also has commercial housing areas. The city center extends from the east (at the city entrance) to the south in a way that allows various areas of the city to link to it.

② Housing district

The city is divided into three districts linked directly to the city with a population averaging between thirty and forty thousand persons. The housing district area is about 120 to 160 feddans. The secondary school and the garden are considered the basic core of the district. The school is located in the middle of the district to provide its services all over the district on equal foot. The 17 to 21 feddans district center occupies about 13% of the total area of the district, representing the natural expansion of the city center, and is located on the collective roads.

③ Residential neighborhood

Neighborhoods areas vary; however, the total neighborhood centers are about 5 to 7 feddans. Basic (primary and preparatory) education schools and gardens are

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considered the core of the neighborhoods so that each meets the daily needs of the residents since the distance does not exceed 350 meters (about ten minutes on foot).

④ Residential group

Residential neighborhoods are divided into a number of residential groups varying in scale from one neighborhood to another, with each combining about 2,000 to 2,500 persons to gather around a core of joint services that include a pre-primary school or kindergarten next to spaces that are almost vacant in a distance that does not exceed 150 meters.

(3) Analysis of the development process level

The locations for this city have been proposed based on the overall development policy in addition to several technical criteria concerning site selection, soil suitability, topography and other related issues. Usually for each new urban community, after doing the proper analysis, GOPP provides the coordinates for the new urban community to the NUCA, which followed by a Presidential or Prime Minister Decree, allocates the selected land with its defined coordinates to the establishment of the new urban community. NUCA is responsible for dividing land and providing infrastructure so that it can be sold at the price equal to its actual cost, in addition to a margin profit for subsidizing low-income housing.

Analysis of the New Fayoum City development process New Fayoum City - NUCA is responsible for dividing land and providing it for utilities. Actors in development - The private sector (individuals and investors) assume the projects development of housing plots. - The project financing of New Assiut City should comply with the Project financing regulations of New Urban Communities Law (Law No.59/1979) - Disposing the state-owned desert land that has been selected for Land acquisition new urban communities is provided to the NUCA free of charge Establishing development plan - NUCA is responsible for approving and issuing licenses and and permit approval process operating all activities, buildings, and infrastructures. Construction of infrastructure - NUCA is responsible for providing infrastructures in addition to and burden-sharing system supporting low-income housing. Supply and allocation of - NUCA is the sole body that determines which land in a new city goes developed land to whom. - Responsibilities for operating and managing infrastructures and Management of public services are transferred to the local government after satisfying infrastructure certain completion of development phase. - All equipment required for projects, and loans and credits used for projects within new urban communities are exempted from customs' Conditions for government fees or other related duties. -The profits of project development are subsidies exempted from all taxes on commercial or industrial profits for ten years starting from the production date.

154 3. Development directions for the study areas

4) Problems of new urban community development

(1) Wide range of institutions and governmental entities

There is a wide range of institutions and governmental entities that are involved in land development. And in several cases conflicting interests between institutions negatively affect the overall development process. So the development approval system needs to be improved more effectively.

(2) Real estate taxation system

Adjusting and improving the real estate taxation system is another area of priority. The system needs radical reform in order to increase the financial stability of the government.

(3) High vacancy rate

The recent statistics have shown that more than 40% of the housing units within new settlements are vacant and huge amount of the land for residential development has not been developed for several years. This situation opens the debate regarding land speculation.

(4) Lack of Urban Infrastructure

Most of new communities do not provide workers with enough commuting tools like regional mass transportation system. So it is very difficult to attract target people within a target year.

(5) Expensive housing price

Because of expensive price low and middle income groups can't afford their housing in the new community, instead speculative demand substitute the real one.

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3.3 Plan-based management for land development

3.3.1 Inner-city development

1) Establishing a Detailed District Unit Planning System

In Egypt, land development within inner city often leads to illegal development. Therefore, there is a need for the improvement of the existing system that enables the systematic land development, by introducing the Detailed District Planning System.

This requires the establishment of plan based development system. This concept hinges on the systematic land use and development control. And in many cases, illegal development in urban areas are resulted from traced to the absence of plan-based management methods. For this reason, the introduction of the Detailed District Planning System is necessary to develop or manage urban areas systematically.

The purposes of the Detailed District Planning System are to rationalize land use in urban areas, improve the quality of environment, and manage the district systematically and strategically.

Within the district, land uses that do not allow can be permitted according to the Detailed District Plan. It is also possible to establish a Detailed District Plan by mitigating the building coverage ratio, floor area ratio, and height limit of buildings, when part of land is reserved for public services area, such as roads and parks.

2) The Legislating of the Infrastructure Linkage System

Downtown redevelopment in Egypt is not promoted efficiently due to the financial difficulties. In the case of inner city development, it is hard to provide urban infrastructure effectively because there are no rules for cost-sharing of infrastructure. Any development without providing infrastructure generates additional demand for infrastructure.

Thus, the infrastructure linkage system is necessary to ensure the rational supply of infrastructure based on the cost-sharing principles.

3) Enhancing the effectiveness of Development Permit System

The development permit system, which is a tool for controlling the development,

156 3. Development directions for the study areas

can play the important role to prevent informal development. But it seems ineffective in Egypt. To enhance the effectiveness of development permit system, central or governorate government should provide some guidelines.

3.3.2 Suggestions for new urban community development

1) Establishing regional infrastructures through ensuring financial resources

According to the case study, the public sector (NUCA) has difficulties in providing financial resource for regional infrastructures, like mass transit network. The share of profit margin is not reasonable to the public sector (NUCA) because most of the profit returns to private developers. Thus, it needs to raise development density to create more development profits for infrastructures. The government needs to reorganize the land sale system so that more development profits can be recaptured to public sectors. NUCA introduces a public housing development method that is able to recapture more profit.

2) Recapture share value of land development

Recently, NUCA adopted a new approach to promote real estate investment by public and private partnerships. Based on this partnership, NUCA agrees with investors on the value of land for the overall project cost including infrastructure. Accordingly, NUCA recaptures its share (the value of land and infrastructure) through acquiring certain percentages from the constructed units after development completed by investors. Usually, the constructed units recaptured by the NUCA do not exceed 110 ㎡. These recaptured units are then used for low income housing which is offered with small down payments and a soft loan for a forty- year duration with an annual interest rate of 5-6%.

3) Legislation of regulations to control speculation in real estate

Housing should supply for real housing consumers; however, some people purchase houses for speculative purposes. Moreover, a certain amount of housing units remain a vacant because of the strict rent control system, disturbing the community development.

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158 4. Development directions of the project areas

4.1 Inner-city development

4.1.1 Concept plan for the project areas

1) Overview

The project area is Tal El Haddadin in Ganabeya area. The area lies at the heart of Tanta City near El said Badawy mosques, one of the most famous mosques in Egypt. El Ganabeya is a deteriorated area. It is a residential area for low and mid-income people. The major problem is that its buildings are not suitable for quality living due to the lack of transportation and narrow streets. In spite of that, it is considered one of the most important areas of the city because of its functional activities in it such as commercial and tourism which depend on the religious areas. The area of Ganabeya is 78 acres (2.6% of Tanta).

Location of El Ganabeya
Boundaries of El Ganabeya and Tal El Haddadin

(1) Regional context of El Ganabeya

① Population In 2005, total population of this area was 16,756. The population density reached 531 persons/ha. The total number of households were 2,990 with 5 to 6 family members in each household.

The land for residential use occupies 36.3% of the total area, followed by roads (33.4%), commercial area (10.3%), and land for handcraft and industrial use (6.2%).

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② Land use and usage of buildings in El Ganabeya

Land use of the buildings in El Ganabeya

Land use % Area (acre) Number Residential 36.33 28.3 1,470 Commercial 10.26 8.0 243 Service 2.05 1.6 26 Administration 2.32 1.8 12 Handcraft and industrial 6.16 4.8 104 Store (Storage) 3.33 2.6 36 Vacant 3.17 4.8 63 Road 33.38 26.0 - Total 100.00 77.9 1,954

Land use of El Ganabeya

160 4. Development directions of the project areas

③ Road network

The area can be accessed via two main routes: El Galaa street in the north and El Ganabeya street in the east. The widths of the roads range from six to fourteen meters, which occupies 33.38% of the total area.

Road network

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④ Land ownership

The city council owns 5.2 acres of land (11% of the total area): El Blaboya park, veteran's hospital, Establa health utilities, station and storage places, local houses, and integrated cultural center. Endowments property is 7 acres (14% of the total) with private property of 36.2 acres (75% of the total).

Land ownership

162 4. Development directions of the project areas

(2) Problems

① Lack of cultural and social services

The area suffers from the lack of educational, health and social services as well as recreational outlets and green areas. Although the population is about 17,000, there are only two primary schools (39 classes), and no secondary schools at all in the area. Therefore, illiteracy rate is about 41%, much higher than that of Tanta that reaches 29%. As for health services, there is only one health bureau and its services are limited to the registration of births, deaths and inoculations. There is also a small hospital of 200㎡ size. Apart from the cultural entertainment center under construction at present to serve Tanta and its surrounding villages, the area does not have any recreational/entertaining facilities.

② Misuse of land

The area suffers from the spread of shacks and temporary houses on the public territories that are rented to its occupants at very low prices. The public areas are about 10 fd. This leads to the spread of informal settlements, especially on the land owned by the Al Awqaf Authority. Small workshops, industries, foundries, and deteriorated buildings, many of which are considered to be the source of environmental, air and noise pollution, are widespread along with the waste from industrial and craft activities.

③ Traffic congestions and lack of infrastructure

Although a 26 feddan of road network occupies 33.4% of the total urban area, for many reasons, the area suffers from the heavy traffic and multiple congestions caused by inappropriate lay out of roads, narrow streets in bad conditions; streets are occupied by shop owners and vendors, intersection of local and regional traffic, obscure major axes, multitude of warehouses necessitating stopping of big trucks to unload, resulting in complete paralysis of the traffic especially at peak hours and during feasts. The area is completely serviced by electricity and water but only 85% of the area has sanitary waste drainage. The area suffers from water overflow in many streets. According to the infrastructure study, it is obvious that the drainage network requires maintenance to elevate the debris and improve its efficiency; also, renovation

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is recommended for pumping stations.

2) Development conditions of Tal El Haddadin

Tal El Haddadin Area lies in the western part of the El Ganabeya area and has an ancient urban form. Tal el Haddadin is one of the informal settlements in dire need for development due to the extreme deterioration of its buildings. The settlements depend on vocational activities that easily pollute the area. But these vocations are of great importance to the area and need support, and thus, environment-friendly solutions to the existing industries must be conceived.

Project area location and boundaries

(1) Development conditions

The workshop area of Tal El Haddadin is the main concentration of small-scale industries, workshops and commercial enterprises in the centre of Tanta. The area of Tal El Haddadin is about 26 feddan, which is approximately one-third to the total Gannabeya area. The quarter has a total residential population of about 4,519 (1985). The residential density is about 387 inh/ha, which is considerably below the average of Tanta's other central areas (500 inh/ha, 1985).

164 4. Development directions of the project areas

① Land use

Total number of buildings is estimated at 498, and the residential buildings account for 30.5% of the total buildings. - There are about 70 commercial shops taking up approximately 14% of the total buildings. - Number of buildings for the industrial and handcraft activities is estimated at 117 representing about 23.5% of the total buildings.

Land use

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② Building conditions

There are 97 buildings in good condition accounting for 20% of the total buildings. Buildings in intermediate condition are about 57 units, and they constitute 10% of the total.

There are about 344 units of deteriorated buildings taking up 70% of the total buildings. These significant figures imply that the area has been degenerated, and needs prompt improvement.

Building conditions

166 4. Development directions of the project areas

③ Building heights

There are about 250 units of one-storied buildings amounting to 50% of the total buildings. There are roughly 120 units of two-storied buildings accounting for 23% of the total buildings. Total units of buildings with more than three stories are about 128 (27% of the total).

Building heights

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④ Land ownership

The public land consists of 3.5 fd owned by Awkaf, and 4.6 fd owned by the gvernorate, and the individual land takes up about 14 fd.

Land ownership

168 4. Development directions of the project areas

⑤ Present conditions of Tal El Haddadin 1

Present conditions of Tal El Haddadin 1

① ⑤

② ⑥

③ ⑦

④ ⑧

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⑥ Present conditions of Tal El Haddadin 2

Present conditions of Tal El Haddadin 2

⑨ ⑬

⑩ ⑭

⑪ ⑮

⑫ ⑯

170 4. Development directions of the project areas

(2) Problems The inferior living conditions including poor building (housing, etc.) conditions are serious problems to this area. Precarious building conditions, and in addition to that, deficient infrastructure facilities mainly used by small scale industrial purposes aggravate the overall image of the area. The inferior living conditions are actually worsened by the lack of certainty about the areas' future development. The workshops in the metal processing sector often afflict the closely neighboring residential areas.

The concentration of workshops and small-scale activities is characterized by the low-rise buildings in precarious conditions. Squatting on streets or vacant land is one of the most concerning problems. Due to the critical housing situation in Tanta, squatting on unused public land along the main railway line, has become the only alternative shelter for the increasing number of people.

Deteriorated social and economic condition of the area makes crimes widespread, which can not be easily resolved. Economically deteriorated areas are El Samak and Rawiron shops. The flow of outside residents into the area, where, in average, more than one family stays in a unit, is massive. The area is unutilized, if it is situation is kept in to consideration. Another main problem is the concentration in sub-areas that have different characteristics with regard to land-use, building structure and land ownership.

(3) Opportunities The location in the center of Tanta and its proximity to the shrine of El Said Badawi give it great importance and stress the significance and priority in executing the development and improvement project for the area. The low population density and vacant buildings indicate the possibility to accommodate new residents, and partially solve the housing problem that Tanta suffers due to its locational disadvantage of being surrounded by agricultural land. The possibility of using the approximately 12 feddan public land owned by the city council and the Egyptian Awqaf authority makes it possible to intervene the planning, improve the area, and provide basic services.

The area is characterized by the spreading out of artisan industries, such as manufacturing of leather, shoes, saddles and other miscellaneous goods; these could be developed to increase job opportunities for the youth, and increase the income of poor families. This is considered the biggest commercial center on the level of Tanta and the neighboring centers in the region due to the diverse commercial goods and food products. No doubt developing the area will enhance this important commercial

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position and increase the flow of capital to the area as well as contribute to providing work opportunities and improve the socioeconomic standard of the inhabitants.

The comprehensive cultural center that is under construction presently is considered a beacon of light in the area and a nucleus for its development, which can be supported to have a major role in developing ascending the area. The economic value of the area is high, because it lies in the middle of the city. This area is very near to El said Badawy region, which is a very famous and well-known sign to the city and the Presence of Shoroaq center along with Nazl El Shabab Hotel, which are the nucleus of the area’s development. The possibility of starting the development is high because the area possesses endowments ownerships and a city council.

4.1.2 Review of the redevelopment procedures and cases of Korea

1) Redevelopment cases

(1) Dongdaemun market

① Summary ∘ Location: Bangsan-dong, Euljiro 5, 6, 7-dong, Parts of Shindang-dong ∘ Area: About 479,000 ㎡ ∘ Local Features

Historically, huge textile factories and traditional markets had moved into Dongdamun area. A great number of small-scale shops were concentrated and crammed in the area. Since the 1990's, some parts of this area have been redeveloped, and mega-fashion malls have been built, including Art Plaza, Designer's Club, apM, and Ellicium. After Gyupung Plaza was constructed, other 'commercial complexes' with shops, offices, and theaters emerged. Now, the 'Dongdaemun Fasion Town' is largely divided into the traditional markets and newly constructed mega shopping malls.

② Development process ∘ In 1905, the "Plaza Market Corporation," was established, the first form of mall that traded textiles and household goods. ∘ In 1961, the "Peace Market" was open, and textile products and clothes were produced and traded in the market. ∘ In 1990, modern fashion malls emerged, and it began to develop its own identity as a shopping that was capable of explosively attracting the younger generation. It was developed as a national textile wholesale market.

172 4. Development directions of the project areas

∘ In 1998, wholesale business and small-scale retail business were combined, and they produced and traded with all kinds of fashion items including accessories.

③ Development effects ∘ Boosting local economy - Annual export of $2 billion and increase in tourism revenue - Increase in visitors ∘ Creation of public space - Accommodating various kinds of public demand concerning both traditional markets and newly-created public space ∘ Korea's biggest textile industry district - Developing the 'one-stop' system in which all the processes from production, distribution, to sales, are carried out at one place - Enhancing international competitiveness through the combination of traditional markets and modern commercial complexes

Dongdaemun market in 1980

Dongdaemun market in 2006

(2) Shogong-dong

① Summary ∘ Area: Shogong-dong 31,400 ㎡ ∘ China Town: In the early 1880s, a China town was built in Shogong-dong which was representing the country's poverty and chaos after the Korean War. At that time, poverty-stricken shanty towns were crammed in this area. In 1966, once

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Korea was internationally shamed for its impoverished physical conditions on a TV show broadcasting the U.S. president Johnson's visit to Korea, there had been strong calls for the redevelopment of this area.

② Development background ∘ Many old houses got entangled together preventing the effective use of land. ∘ Public facilities such as roads, parking lots, and open spaces were insufficient to meet the demand, which impeded proper urban functions. ∘ There was an urgent need for sanitation.

③ Planning concept ∘ Keeping the eleven four-storied buildings, demolishing all the buildings of less than four stories, and constructing several fifteen-storied buildings

④ Development process ∘ If all land owners agree with the redevelopment, a development association can be formed, consisted of all land owners. ∘ If some of the property owners oppose the redevelopment, a development association can be formed, which is consisted of the pro-development land owners, and expropriation can be conducted for the others. ∘ Otherwise, expropriation will be conducted for the whole project site.

Shogong-dong in 1970
Shogong-dong in 2006

(3) Euljiro 2-ga

① Summary ∘ Location: Gwancheol-dong ∘ Area: 7,959㎡, 292 lots and 180 buildings

174 4. Development directions of the project areas

∘ History - In 1977, designated as a redevelopment area - In 1983, the 'Housing Corporation' was selected as the developer

② Development Process ∘ Revision of the Architecture Law to allow small-business owners to open print shops, which helped to move the existing retailers out to the 'Press District' in Inhyun-dong ∘ Provision of the right to sell a newly-constructed building to the existing renters that paid them the relocation cost. ∘ Provision of housing to the existing residents, which helped them to move out of the project site.

③ Features ∘ A building with 4 underground floors and 29 floors above the ground: department store (1-8th floor) and office (above 9th floor). ∘ Two buildings with 4 underground floors and 26 floors above the ground: Hanhwa headquarters. ∘ Two buildings with 5 underground floors and 20 floors above the ground: Korea Industrial Bank headquarters. ∘ Differentiated from the traditional reconstruction concept that provides only one building, by constructing three buildings with various uses. ∘ Open space between three buildings (7,045 ㎡), parking lots (49,220 ㎡).

Euljiro 2-ga in 2005

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2) Review of the institutional framework for redevelopment

(1) Urban Development Act

Urban Development Act

Classification Contents Article

∘ This Act is to facilitate planned and systematic urban development, create optimum Purpose urban environment and enhance public welfare by prescribing matters necessary for Article 1 the urban development.

∘ The Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do governor (hereinafter referred to as the "Mayor/Do governor") may, when deemed necessary for a planned urban development, designate an urban development zone. ∘ Where an area recognized as necessary for an urban development project extends over not less than two of the Special Metropolitan City, the Metropolitan Cities, and Dos (hereinafter referred to as the "City/Do"), Designation of ∘ The Minister of Construction and Transportation may, in the case falling under each Urban of the following subparagraphs, designate an urban development zone Article 3 Development - Where the State needs to undertake an urban development project; Zone - Where the head of a central administrative agency concerned makes a request - Where the head of a government-invested institution under Article 11 2 proposes a designation of the urban development zone in excess of the scale ∘ The head of Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) may ask the Mayor/Do governor for designating an urban development zone under the conditions

∘ Urban area - Residential area, commercial area: more than 10000㎡ Scale of Area - Industrial area : more than 30000㎡ Decree 2 - open space : more than 10000㎡, ∘ Unplanned area : not less than 300,000㎡

∘ When he intends to designate an urban development zone, work out an urban development project plan for such urban development zone (hereinafter referred to as the "development plan"): Provided, That where an urban development zone is designated in the area as prescribed by the Presidential Decree, a development plan may be formulated after the designation of an urban development zone Formulation ∘ The person entitled to designate may alter the development plan ex officio or upon and Alteration receiving a request from the head of a central administrative agency or the head of of Si/Gun/Gu Article 4 Development ∘ The person entitled to designate shall, where he shapes a development plan to Plan undertake an urban development project using a land substitution method, obtain consent of persons owning not less than two thirds of the land area in the zone, which is subject to the application of such land-substitution method and also consent of not less than a half of landowners in the district. The same shall also apply to the case where the person entitled to designate intends to change the development plan (excluding any change in minor matters prescribed by the Presidential Decree).

176 4. Development directions of the project areas

Classification Contents Article

∘The development plan shall contain matters falling under each of the following sub-paragraphs - Name, location and area of an urban development zone; - Purpose of designating an urban development zone and the period for undertaking an urban development project; - In the event that an urban development project is undertaken after dividing an urban development zone into not less than two districts, matters relating to the division of such district - Matters relating to the undertaker of an urban development projec - Method of undertaking an urban development project - Plan for admitting the population Contents of - Plan for utilizing lands Development - Plan for dealing with traffic Article 5 Plan - Plan for conserving environment - Plan for installing medical and health care institutions and welfare facilities - Plan for building a major infrastructure such as roads, tap water pipelines and sewerage system - Plan for raising financial resources - In the event that an infrastructure is built in an area outside an urban development zone, plan for bearing costs required to build such urban infrastructure - In the event that there exist rights, other than ownership, of lands and buildings or things attached thereto, mining concessions, fishing licenses and the right to use water (hereinafter referred to as the "land, etc."), which are subject to expropriation or use, their details

① Listening to Opinions of Residents ∘ When the Minister of Construction and Transportation or the Mayor/Do governor intends to designate the urban development zone or the head of Si/Gun/Gu intends to request a designation of the urban development zone, he shall hear the opinions from the residents and related experts, etc. through a public perusal or a public hearing, and when the opinions presented by such perusal or hearing are recognized as appropriate, he shall reflect them. ② Deliberation of Urban Planning Committee ∘ The person entitled to designate shall, when he designates an urban Designation development zone or formulates a development plan Process of Article ∘ Deliberation of the Central Urban Planning Committee under Article 106 of the Development 7-9 National Land Planning and Utilization Act or the City/Do Urban Planning Zone Committee ③ Publication of Designation of Urban Development Zone ∘ The person entitled to designate shall, when he has designated an urban development zone or has formulated a development plan ∘ publish his intention in the Official Gazette or public bulletins and forward the copies of related documents to the head of Si/Gun/Gu having jurisdiction over such urban development zone, and in this case, the head of Si/Gun/Gu shall, upon receiving such related documents, offer them for public perusal. The same shall also apply to the case of any alterations

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Classification Contents Article

∘ The State or local governments ∘ Government-invested institutions ∘ Local public corporations incorporated under the Local Public Enterprises Act ∘ Landowners within an urban development zone (referring to the person who owns more than 2/3 of the size of land excluding the State or public lands within the urban development zone in the case of the mode of expropriation and the person who has obtained a license Undertaker ∘ Corporations that meet requirements, such as the business period, etc. in the Article 11 overpopulation control area ∘ As capable of undertaking any urban development project in a manner consistent with a development plan with a licence granted for the civil engineering work business or the civil engineering construction work business under the Framework Act on the Construction Industry ∘ Corporations established by 2 or more persons who fall under subparagraphs 1 through 6 for the purpose of implementing an urban development project.

∘ When it is intended to establish a partnership, not less than 7 owners of land in an urban development zone shall make the articles of association that Authorization contains matters prescribed by the Presidential Decree and obtain authorization for for establishing such partnership from the person entitled to designate. Article 13 Establishing ∘ Consent of owners of land, the area of which exceeds two thirds of such land Partnership and consent of not less than a half of total number of landowners shall be obtained.

∘ Any undertaker may carry out an urban development project using the method of expropriating or using the land, etc. in an urban development zone, the Method of method of land substitution or the method of combining both methods. Undertaking ∘ Requirements for an urban development zone for which the method of Urban Article 20 expropriating or using the land, etc. Development ∘ The method of land substitution or the method of combining both methods can Project be used under paragraph (1) and other necessary matters shall be prescribed by the Presidential Decree.

∘ Every undertaker may expropriate or use the land, etc. necessary for his urban development project ∘ Purchase the land equivalent to not less than two thirds of the land area Expropriation subject to his urban development project and obtain consent of not less than or Use of Article 21 two thirds of total number of owners of such land Land ∘ Except as especially provided for in this Act with regard to the expropriation or use of lands, etc. under paragraph (1), the Act on the Acquisition of Land, etc. for Public Works and the Compensation

∘ Every undertaker may, if landowners want, issue bonds which are to be repaid with land and buildings created through undertaking an urban Issuance of development project to cover part of prices of the land Land Callable ∘ Any undertaker shall, when he intends to issue land callable bonds, work out Bonds a plan for issuing land callable bonds and obtain approval thereof from the person entitled to designate beforehand under the conditions

178 4. Development directions of the project areas

Classification Contents Article

∘ Every undertaker shall work out and implement the countermeasures for the Countermeas relocation of persons who come to lose their foundation to live due to their ures for offering of the land, etc. necessary for undertaking an urban development Article 23 Relocation of project as prescribed by the Act on the Acquisition of Land, etc. for Public Residents Works and the Compensation.

∘ Any undertaker (excluding the case where the person entitled to designate acts as an undertaker) shall, when he intends to supply the created land. work out or alter a plan for supplying such land, etc. and submit such plan to the Plan for person entitled to designate. In this case, the undertaker shall, where he is not Supply of an administrative agency, submit such plan through the head of Si/Gun/Gu. Article 25 Created Land ∘ Contents of the plan for supplying the created land, etc., procedures and standards for making the supply, and the appraisal of prices of the created land, etc. and other necessary matters shall be determined by the Presidential Decree.

① Any undertaker shall, where he intends to undertake his urban development project, in whole or part, using the land-substitution method, work out a land-substitution plan that contains what falls under each of the following subparagraphs: - A land-substitution design; - Details of land substitution by lot; - Details of a land subject to liquidation by lot and right; - Details of a land secured for the recompense of development outlay or a reserve land and Other matters prescribed by the Ordinance of the Ministry of Construction and Transportation. ② Any land-substitution plan shall be rationally worked out taking comprehensively into account the location, classification, area, soil, irrigation, Formulation current utilization, environment of the previous land and the substituted land of and other matters. Article 27 Land-Substit ③ Any undertaker shall, when he intends to appraise prices of the created ution Plan land, etc. in an urban development zone subject to the land substitution method, determine such prices after going through deliberation of the Land Appraisal Council. Prior to going through such process, however, he shall get such certified appraisal institutions as prescribed by the Presidential Decree to appraise the prices of the created land, etc. ④ Matters necessary for the composition and management of the Land Appraisal Council referred to in paragraph ③ shall be determined by the regulations, the articles of association and the enforcement rules. ⑤ Matters necessary for the standards for land-substitution plans following a formulation of the land substitution plans under paragraph ①, and the earmarking for the reserve land (the development recompense land and the public facility sites), may be set by the Ordinance of the Ministry of Construction and Transportation.

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Classification Contents Article

∘ When it is specially necessary for a smooth implementation of the urban development project, any undertaker may provide the landowner, by obtaining Provision of his consent, with the co-owned shares of a part of structures for which the Structures in undertaker holds an authority of disposal, and of the land on which the relevant Article 31 Substitution structures are located, in substitution for the land subject to a land substitution. for Land ∘ Matters necessary for a formulation of the plans for the provision of structures in substitution for land may be determined by the Minister of Construction and Transportation.

∘ Any undertaker may determine a certain land not as a land substitution, but Land as a land secured for the recompense of development outlay or a reserve land Secured for for the purpose of meeting costs necessary for a urban development project Recompense and attaining the objectives set by the regulations, the articles of association, Article 33 of the enforcement rules or an undertaking plan. Development ∘ The head of Si/Gun/Gu may, when he deems it necessary to facilitate the Outlay construction of an apartment house under the Housing Act, concentrate part of lands secured for the recompense of development outlay

∘ Where a land is designated as a planned land substitution, the landowners and the holders of the rights of lease, etc. may exercise their rights in the same manner as they have done in the past on the land designated as a planned land substitution from the date on which the designation of the land as a planned land substitution takes effect to the date on which a land-substitution disposition is published. The landowners and the holders of the rights of lease, Effect of etc. shall thereafter be prohibited from using the previous land or using it for Designation the purpose of earning profits. of Land as ∘ There are articles or special grounds that can be impediments to using the Article 35 Planned land concerned and earning profits, set separately the date on which the use Land of the planned land substitution or the business of earning profits using such Substitution planned land substitution will commence. ∘ Any undertaker may, when a land is designated as a planned land substitution for the purpose of using such planned land substitution as a land secured for the recompense of development outlay under Article 33, use such planned land substitution, let other persons use such planned land substitution for the purpose of earning profits or dispose of such planned land substitution in order to cover costs required for an urban development project.

∘ Any undertaker may order the landowners or the holders of the rights of Suspension lease, etc. of a land which he decides not to designate as a land substitution of Use and to suspend using such land or part of such land or running the business of Article 36 Profits earning profits using such land for a fixed period beginning the date on which such period is fixed.

∘ Any land which no person is in existence to use or run the business of making profits using it due to the designation of such land as a planned land Land substitution or a disposition taken to suspend using such land or running the Article 38 Management business of making profits using such land shall be managed by the undertaker beginning the date on which such grounds accrue to the date on which a land-substitution disposition is published.

180 4. Development directions of the project areas

Classification Contents Article

① Any undertaker shall, when he completes the work of an urban development project, promptly publish the completion of such work as prescribed by the Presidential Decree and offer work-related documents for public perusal. Land ② Landowners or any interested persons in an urban development zone may submit Substitution Article 3 their writter opinions to any undertaker within the period of public perusal referred to Disposition in paragraph ① and the undertaker shall, upon receiving their written opinions, take necessary measures after confirming whether results of the work are compatible with contents of an undertaking plan.

∘ Where a land substitution is determined or a land is excluded from being subject to a land substitution, the excess and deficiency therefrom shall be settled in cash taking collectively into account the locations, classifications, areas, soil, irrigations, current utilization, environment and other matters of both the previous land and the Settlement land substitution. Article 40 Payments ∘ The settlement payments of paragraph (1) shall be determined when a land-substitution disposition is taken: Provided, That the land, etc. which are excluded from being subject to a land substitution under Article 29 or Article 30, may be determined at the time that the settlement payments are made.

∘ Any undertaker shall, when a land-substitution disposition is published, serve a notice thereof on the competent registry office within 14 days from the date of publication and entrust the registration of land and buildings or file an application for registering them. Registration ∘ No other registration shall not be effected from the date on which a land-substitution Article 41 disposition is published to the date on which an registration is effected. That the same shall not apply to the case where a registration applicant proves that the cause of registration accrues, which is corroborated by fix-dated documents, prior to the date on which a land-substitution disposition is published

∘ Subsidies and loans may be provided from the National Treasury to cover costs, in whole or part, required to undertake every urban development project under the Subsidies and conditions as prescribed by the Presidential Decree: Provided, That where the Article 5 Loans undertaker is an administrative agency, the whole of such costs may be subsidized or loaned.

∘ Any public facilities installed in an urban development zone under an urban Management development project shall, after the installation work is completed, be managed by the of Public head of Si/Gun/Gu until they are reverted to a management office except as especially Article 6 Facilities provided for in this Act or other Acts.

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(2) Procedures (land substitution)

Stage Periods Procedures Notice

Establishment of development plan (undertaker) ∘ Preliminary survey 5mth. (5mth.) Proposes a designation of the urban Propose development zone ∘ Contents Project (undertaker ⇒ Head of Gu) 3mth. (8mth.) Accept designation of urban development From receiving a request within zone 3month (Head of Gu ⇒ undertaker)

Prepare proposed document for urban ∘ Including changed contents in the development zone urban plan 9mth. (17mth.) (Head of Gu) ∘ Gu Urban planning Committee/hearing opinion of local assembly Designate Public hearing/related organization Zone ∘ Request designation zone Request period (Head of Gu ⇒ Metropolitan City Mayor) ∘

3mth. (20mth.) Deliberate urban planning Committee (Seoul city)

Approval designation of urban development zone Zoning area, district, zone, etc (Metropolitan City Mayor)

Authorization for establishing partnership & 2mth. (22mth.) application for undertaker ∘ (Undertaker ⇒ Metropolitan City Mayor)

Authorization for establishing partnership & designate undertaker Undertake (Metropolitan City Mayor) Plan 3mth. (25mth.) Establish undertaking plan & Authorization ∘ District Unit Planning Included for application ∘ A Range of Impact Assessments (Undertaker ⇒ Metropolitan City Mayor) Included ∘ Discussions among Relevant 5mth. (30mth.) Agencies ∘ Agreement on the Agendas of Approvals and Permissions Confirmation o District Unit Planning Authorization for undertaking plan Addressing the Applied Agendas of (Metropolitan City Mayor) Approvals and Permissions Perusal of residents Project execute 3mth. (starting construction) (Substitutio (33mth.) n) Formulation of land-substitution plan (Undertake) ∘ Notice ∘ Public perusal of substitution plan

Application for authorization of land-substitution plan ∘ Consent 2mth. (Undertaker ⇒ Head of Gu) (Substitutio (35mth.) Substitution n) Plan & Authorization of land-substitution plan Project (Head of Gu) Execute

Designation of land as planned land substitution Public perusal / Notice

∘ Summit final report Completed construction - apply inspection 3mth. [Undertake ⇒ Metropolitan City Mayor] (Substitutio (38mth.) n) Inspection of completion (Metropolitan City Mayor)

Public announcement of completion (Metropolitan City Mayor)

Measure for land substitution

Substitution disposition ∘ After the permit on the completion Payment & (Undertaker) within 60days Registration 2mth. (40mth.) ∘ Registration within 14 days after the Payment & Registration substitution notice

Land substitution procedures

182 4. Development directions of the project areas

(3) Project methods

① Land Substitution

Developers take the land in the project site and proceed with the development. After the development is completed, developers will sell the newly-prepared land to pay the development costs, and the existing land owners will get new property rights.

Land substitution Main concept

Grant the new property rights to the Land existing land owners after development, Substitution with the consideration of the location, land use, and other conditions.

Developer Public

- The ratio of the land provided for the development cost payment and Allotment Rate urban infrastructure construction to the total owned land

- Developers provide land (including roads, parks, infrastructure, and Land Secured for construction), pay the development cost, and gain profits by selling the Recompense newly-prepared land.

Effects Comparison before and after

Allotment rate

Land secured for recompense Density 140% 40% 20% ➡ Public : Deregulation Density : 100% (Incentives) Value 70% 20% 10% of land 100% Owner Owner Developer Infra. - Land owners who take 30% of the allotment rate will participate as developers without further investment. - Increase in development density through deregulation and incentives offered for the infrastructure provision. - Increase in property value and rent by the development effects.

183 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

② Expropriation

The public sector or developers buy the land in the project site and sell the newly-prepared land after the development. By selling the newly-prepared land, developers will pay the development cost and gain profits. Since small number of the parties are participating as developers, more development profits are guaranteed; thus, more public facilities can be provided, include affordable housing.

Expropriation Main Concept

- Transfer of the property rights (from the existing Expropriation land owners to whom will buy the newly-prepared land after the development).

- The ratio of the land provided for urban infrastructure construction to the Allotment total prepared land Rate - More development profits are expected than in the land substitution; thus, developers should take a higher allotment rate.

Effects Comparison before and after

Allotment rate

Density 140% 60%

➡ Public : Deregulation Density : 100% (Incentives) Owner or Value of 70% 30% 100% Liquida land -tion Owner Liquidation Infrastructure

- Increase in development density through deregulation and incentives offered for the infrastructure provision - Increase in property value and rent by the development effects

184 4. Development directions of the project areas

③ Comprehensive Analysis

Comparison of land substitution with expropriation Land substitution Expropriation Developer ∘ Land owners ∘ Public and private developers

Requirement ∘ Agreement of land owners ∘ Land purchase

Distribution of development ∘ Land owners ∘ Developers profits

Measures ∘ Provision of affordable public ∘ None for renters housing

∘ Land acquisition and land Development cost ∘ Land preparation cost preparation cost

∘ Ensuring smooth and swift ∘ Residents' voluntary participation development Advantage and less complaints ∘ Planned development and public ∘ Guaranteed initial investment cost Benefits

∘ Land owners' complaints about ∘ Land owners' resistance against the allotment rate expropriation Restriction ∘ Prolonged negotiation period over ∘ Increase in condemnation cost residents' agreement and due to the soaring property value allotment rate ∘ Huge initial investment cost ⇩

Select land acquisition method in accordance with the current land ownership - Conduct expropriation, where the public sector owns a large part of the land, to shorten the development period - Conduct land substitution, where the private sector (individuals) owns most of the land - Conduct the combination of expropriation and land substitution, where the form of land ownership is mixed

4.1.3 Methods for promoting land development

1) Development units and land development directions

∘ Developing the northern site which already has huge commercial functions, as a key location. ∘ Promoting development feasibility by dividing the site into small development units (district 1-4).

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∘ Preventing de-urbanization and inner-city deterioration by executing the phased development - Development process of each phase will be determined by the given conditions.

Project districts District Conditions Location and boundaries ∘ Publicly-owned (72.5%) land ∘ Public offices and public District-1 facilities are located. ∘ Commercial areas are developed around the district.

∘ Privately-owned (100%) land District-2 ∘ Commercial and residential areas are mixed.

∘ Publicly-owned (13.7%) land District-3 ∘ Small industrial facilities are located.

∘ Publicly-owned (49.1%) land District-4 ∘ Large and small size lots are mixed.

Directions and methods for land development District Directions Methods -Starting with the northern area, -Expropriation: Mostly District-1 developing this area as a strategic publicly-owned land, public location for further growth sector-driven expropriation -Development driven by the private -Land Substitution: For District-2 sector privately-owned areas -Combination of expropriation and -Expropriation: For small industrial land substitution in land acquisition districts District-3 -Developing alternative industrial - districts and transferring them to Land substitution: For current retailers privately-owned areas -Combination of expropriation and -Expropriation: For the areas where District-4 land substitution in land acquisition large and small lots are mixed due to various lot sizes and land -Land Substitution: For ownership forms privately-owned areas

2) Methods

(1) Developers ∘ Public sector: In the site where the proportion of publicly-owned land is high, the public sector will be the developer, and proceed with the development promptly

186 4. Development directions of the project areas

and smoothly. The public sector will be able to conduct expropriation for the privately-owned land. ∘ Private land owners: In the site where the proportion of privately-owned land is high, land owners will be the developers, and proceed with the development through the land substitution method.

(2) Development Process

① Public sector ∘ Expropriation: For the quick and smooth development procedure ∘ Provision of affordable housing: To accommodate the temporary residents who are displaced from the other development districts, and by newly-settled residents ∘ Land sales for Profits: It is easy for the public sector to prepare for the necessary development cost, and suggest a successful development model that has a further impact on other sites. ∘ Deregulation: Easing the restrictions on development density, construction standards, and permitted uses to support development and promote the project feasibility ∘ Support from the government: Central government's supports for constructing infrastructure to reduce the initial development cost

② Private land owners ∘ Land provision: Providing land to developers and the public sector in accordance with the allotment rate; increased property values and improved living condition are expected.

③ Other developers ∘ Offsetting the development expense by developing and selling the secured land for the recompense of development outlay ∘ Fund raising: Requesting a loan or cooperation with financial agencies

(3) Measures for evictees

Different measures will be taken for those who will move out of the site and those who will resettle in the site after the development.

① Complete relocation ∘ Current residents who will move out of the site ∘ Providing relocation fees considering the average urban household expenses and

187 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

number of household members

② Temporary relocation ∘ Providing housing/rental subsidies during the development period - Providing resettlers with affordable apartment housing in both rent and sales forms

(4) Infrastructure provision, the cost and management

① Provision of infrastructure

Developers should provide infrastructure not only for the project site but also for the surrounding areas if additional facilities or infrastructure extension are required. ∘ Roads, communication cables, water supply system, sewerage system, utility, and energy supply facilities: Provision ∘ Parking lots, schools, public offices, community facilities: Land preparation and provision ∘ Parks and open spaces: Creation

② Share of the expenses ∘ Within the project area: Full responsibility for providing infrastructure within the project area is on the developers. ∘ Outside the project area: Local governments and service providers should share the expense for the infrastructure provision (Max. 50%). - Roads, water and sewage: Local government - Utility and energy facilities: Provider - Communication facilities: Service provider

③ Financial aid or request for loan ∘ Financial aid for the provision of roads, parks, water and sewerage system, and energy supply facilities - In case the public sector is the developer: Financial aid - In case the private sector individuals are the cooperative developer: Loan provision

④ Infrastructure management ∘ Provision of infrastructure: Developer ∘ Management and maintenance: Local agencies in charge - Developers need to hand over the management responsibilities to local agencies in charge.

188 4. Development directions of the project areas

(5) Provision of prepared land ∘ Determination of land price by the appraised value before and after the development.

Land Provision Methods and Land Price Use Target Method Land price ∘ Recipients of substituted Land Private contract ∘ Land preparation cost

∘ Apartment Sales Lottery ∘ Land preparation cost + Profits housing Public rental Lottery ∘ Land preparation cost Housing ∘ Economy housing Lottery ∘ Land preparation cost ∘ Middle-class housing Lottery ∘ Land preparation cost + Profits ∘ Upper middle-class housing Lottery ∘ Land preparation cost + Profits ∘ Luxury housing Lottery ∘ Land preparation cost + Profits Commercial ∘ Recipients of substituted land Private contract ∘ Land preparation cost (Mixed-use) ∘ Other users Public tender ∘ Land preparation cost + Profits ∘ Original area: Land preparation cost ∘ Land owners Private contract Religious Additional area: Land preparation cost + Profits ∘ Other users Lottery ∘ Land preparation cost + Profits ∘ Central and local government Private contract ∘ Land preparation cost ∘ Original area: Land preparation Social and cost cultural ∘ Land owners Private contract additional area: facilities Land preparation cost + Profits ∘ Other users Lottery ∘ Land preparation cost + Profits Public office ∘ Central and local government Private contract ∘ Land preparation cost ∘ Central and local government Private contract ∘ Land preparation cost Parking Lot ∘ Other users Public tender ∘ Land preparation cost + Profits ∘ Central and local government Private contract ∘ Land preparation cost ∘ Original area: Land preparation cost Others ∘ Land owners Private contract Additional area: Land preparation cost + Profits ∘ Other users Lottery ∘ Land preparation cost + Profits

4.1.4 Development planning

1) Planning concept

(1) Goals ∘ Creating the center of Tanta - Creating an urban center with buildings for mixed use including commercial, business, and residential services

189 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

∘ Creating urban amenities - Creating pedestrian-friendly environment by constructing pedestrian networks, while maintaining the existing street context - Creating urban amenities with sufficient open spaces ∘ Systematic land use planning - Setting out various functions in consideration of the connectivity with the adjacent areas - Promoting complementary land use

(2) Concept

Concept

∘ Locating commercial, office, and public uses while considering with the existing commercial areas and the main development axis

190 4. Development directions of the project areas

∘ Creating a local center by concentrating public facilities (public office, library, and community facilities) and cultural facilities in the center of the site ∘ Placing small businesses, as a buffer between residential areas and areas for other uses, one block apart from the main development axis and the local center ∘ Creating pedestrian-oriented environment by networking various facilities with sidewalks.

2) Land use plan

∘ Creating functional and spatial hierarchies by placing various functions - Promoting iconic characteristics using the existing street context - Enhancing systematic and complementary land use

Land use plan

191 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Land use plan Type of usage Area (㎡) % Low 10,762 10.2 Residential High 13,351 12.7 Mixed residential 9,869 9.4 Commercial 13,639 13.0 Public facility 4,466 4.2 Educational 2,200 2.1 Community core 3,523 3.3 Park 4,357 4.1

Parking 1,691 1.6 Road 41,402 39.3 Total 105,260 100.0

① Commercial ∘ Locating commercial-use buildings along the central street, and connecting them with the existing commercial areas in the north ∘ Placing commercial facilities in lower floors of the buildings, which would easily attract pedestrians and tourists ∘ Inviting various shops and small businesses to boost urban vitality and enhance urban competitiveness

② Office ∘ Placing offices in upper floors of the buildings on the central business street, highlighting visual and symbolic features of the buildings

③ Residential ∘ Residential facilities are essential for preventing ‘deurbanization’; they should be placed around the central business street. ∘ Securing residential amenities by developing various types of housing including town houses and mixed-use buildings ∘ Developing the northeastern part of the site, located adjacent to the existing residential areas, as a residential-exclusive zone

④ Community use (social and cultural facilities) ∘ Placing mosques, libraries, and other social and cultural facilities in connection with the urban center and pedestrian routes

⑤ Public ∘ Locating public administration facilities at the center for better recognition and symbolicity ∘ Distributing parks and education facilities considering accessibility and pedestrian routes

192 4. Development directions of the project areas

3) District development plan ① District - 1 ∘ Land acquisition: expropriation ∘ Developer: public sector - Large part of the land in this district is owned by the public sector, so the public sector will proceed with the development through expropriation. ∘ Use(s): commercial, residential (apartment-economic housing), public (public facilities) - Attracting shopping centers, retailers, and various shops, positioning this district as the key location of the site, and promoting land sale for the payback of the development cost - Developing apartment housing to accommodate evictees from other redevelopment sites and use it as rental housing after the development - Placing retail facilities in lower floors of the apartment housing along the street to invite the thriving businesses in the north - Locating public facilities at the street nodes to enhance centrality and symbolicity ∘ Recommending tower-type buildings to secure visual openness

Land use

Details
Methods

193 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

② District - 2 ∘ Land acquisition: land substitution ∘ Developer: private (property owners) - Most properties are owned by private individuals, so it is applicable to the land substitution by the private sector. ∘ Land acquisition procedures: requiring agreements from the property owners - Renters need to negotiate with the property owners. ∘ Uses: commercial, residential and mixed-use - Land for commercial use is designed for the land secured for re-compensation, to assure development feasibility and profitability. - The targets for the land substitution are mixed-use buildings and housings, distributed by the property locations before redevelopment. - Minimizing development impact fees to promote private development ∘ Measures for evictees: using the apartment housing in the district-1 as temporary housing for evictees during the development, and compensating those who will move out of the site with relocation fees ∘ Recommending tower-type buildings for commercial uses, mixed-uses, and continuity

Land use

Methods
Details

194 4. Development directions of the project areas

③ District - 3 ∘ Land acquisition: combination of expropriation and land substitution - Expropriation: retail renters’ resistance against the change is anticipated in the small business-concentrated area, so expropriation by the public sector will smooth the development process. - Land substitution: areas where land is owned by private individuals ∘ Use(s): commercial, mixed-use, community facilities, housing (including economy housing) - Due to the huge initial cost for the land acquisition, land for commercial uses and community facilities are designed for sale and payback. - Accommodating new population by providing affordable housing - Creating centrality and symbolism by attracting offices, hotels, and exhibition halls on the land for commercial use ∘ Measures for evictees: using the apartment housing of the district-1 as temporary housing for evictees during the development, and compensating those who will move out of the site with relocation fees ∘ Recommending tower-type buildings for commercial uses, mixed-uses, and continuity

Land use

Details
Methods

195 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

④ District - 4 ∘ Land acquisition: combination of expropriation and land substitution - Expropriation: areas where small lots are concentrated or illegal buildings are crammed. - Land substitution: areas where land is owned by private individuals ∘ Uses: commercial, mixed-use, community facilities, housing (including economy housing) - Constructing affordable housing in the area where a condemnation is issued, and providing residential preferentially units to the renters who have lived within the district preferentially ∘ Measures for evictees: using the apartment housing in the district-1 and district-3 as temporary housing for evictees during the development, compensating those who will move out of the site with relocation cost support ∘ Locating libraries and public facilities at street nodes to enhance centrality and symbolism ∘ Recommending tower-type buildings to secure visual openness

Land use

Methods
Details

196 4. Development directions of the project areas

4) Land substitution plan

① Estimations

󰋪 Changes in property value and rent

Comparison between before and after the redevelopment (estimations) After Redevelopment Before Index Commercial Redevelopment Housing (Mixed-Use) Land Price 2,000 6,000 3,000 (L.E/㎡) Rent 4/3/2 8/6/3 8/4 (L.E/㎡) 1f/2f/3f~

󰋪 Construction cost and allotment rate ∘ Construction cost: 250 L.E/㎡ ∘ Allotment rate - Allotment rate for the provision of public facilities: 10% - Land secured for the recompense of development outlay: 20%

󰋪 Development incentives ∘ Lowered building height limits - Maximum building height: 40m, 50m - Lower height limits are applied to commercial, mixed-use, and apartment housing buildings

② Land substitution

If shortage of minimum substituted areas happens, structures in substitution for land or liquidate land2) are provided. In the district-2 and district-3, commercial and mixed-use buildings are needed for the provision of structures in substitution for land or land liquidation.

Criteria for land substitution Land for Average Minimum Minimum Site Area Number of District Substitution Area Substituted Area Required Area (㎡) Lots (㎡) (㎡) (㎡) (㎡) D-2 24,965 16,820 149 112,9 D-3 25,463 7,372 55 134.0 60 85 D-4 31,760 4,056 22 184.4

2) Provision of structures in substitution for land: With the agreement of a land owner, structures (part of buildings) and part of property rights, in substitution for land, are provided.

197 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Land substitution

Substituted Area (㎡) Land secured Land for Index Site Area (㎡) Commercial for re-compensation Substitution (㎡) Residential (Mixed-Use) (㎡) 5,032 6,742 D-2 24,965 16,820 3,364 (24) (35) 5,160 D-3 25,463 7,372 - 1,474 (24) 594 2,245 D-4 31,760 4,056 811 (3) (12) 5,626 12,236 Total 82,188 28,248 5,649 17,862

③ Development feasibility ∘ For developers, the expected profit increase is up to 64.9% in land sale and up to 543% in rent. ∘ For land owners, the expected profit increase is up to 134.9% in property value and up to 279.8% in rent.

Expected profits Area Unit Amount Index Note (㎡) (L.E/㎡) (L.E) Cost Land Preparation Cost 82,188 250 20,547,000 Profit Lowered building height limits 6,000 33,894,000 Commercial Developers Comp Before 4/3/2 39,543 2-storied Monthly Rent 5,649 aris (1f/2f/3f~) on After 8/6/3 214,662 10-storied

Land Price 2,000 56,496,000 Before Monthly Rent 28,248 2-storied 4/3/2 197,736 (1f/2f/3f~) Land Price 6,000 33,756,000 Land owners Commercial Monthly Rent 5,626 10-storied 8/6/3 213,788 (1f/2f/3f~) After Land Price 3,000 42,441,000 Residential Monthly Rent 14,147 5-storied 8/4 339,528 (1f/2f/3f~)

198 4. Development directions of the project areas

Land substitution plan

5) Urban infrastructure

① Transportation routes

󰋪 Roads ∘ Minimizing accesses and exits to curb traffic congestions at intersections with arterial roads ∘ Guiding accesses to individual lots on local roads rather than boulevards ∘ Systematically networking local collector roads to mitigate transportation impact

󰋪 Streets ∘ Creating a circular pedestrian-exclusive street at the center, and networking it with other pedestrian routes ∘ Securing pedestrian accesses between the central business street and the northern residential areas, with streets prior to pedestrians

199 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Main road network
Public facilities and parks

② Parks and public facilities

󰋪 Parks ∘ Distributing parks in connection with public offices, schools, and community facilities, considering accessibility and use frequencies ∘ Placing parks close to pedestrian routes

󰋪 Public facilities ∘ Enhancing convenience by locating public offices, schools, and community facilities closely with each other, and connecting them with pedestrian routes

③ Others

󰋪 Water supply ∘ Calculating the amount of water supply with the consideration of land uses and the number of users (residents, etc.) ∘ Establishing a maintenance plan based on the existing water supply system

󰋪 Sewerage system ∘ Systemic designing streets to channel rainwater into harvesting points ∘ Improving the existing sewerage system

󰋪 Energy supply ∘ Specific plans for energy supply are needed to accommodate new residents and visitors

󰋪 Electricity

200 4. Development directions of the project areas

∘ Laying electric cables underground along with streets for the access to individual households

󰋪 Communications ∘ Establishing broadband lines as well as phone wires to prepare for the change in the business environment in the future

6) Outdoor space plan

① Density ∘ Relaxing building height restrictions around the central business street to attract tower-type buildings for visual openness - Maximum building height in commercial areas: 50m - Maximum building height in mixed-use areas: 40m - Mixed-use/apartment building: Lowered height limits ∘ In low density residential areas, attracting five-storied buildings for friendly street landscape

Density regulations

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② Massing

󰋪 Lower levels ∘ Creating 5-storied decks in commercial areas and 3-storied decks in mixed-use zones ∘ Promoting interactions between buildings and people hanging around the streets with their interesting exterior designs ∘ Creating small gardens and event places on top of the decks

󰋪 Upper levels ∘ Attracting tower-type buildings to secure visual openness and create a symbolic skyline

󰋪 Facade ∘ Lower floors : Human scale to attract various activities, dynamic designs for bustling streetscape ∘ Upper floors : New and advanced image creation

Massing

202 4. Development directions of the project areas

③ Outdoor spaces

󰋪 Open spaces ∘ In case of large-scale buildings, providing open spaces and gardens within the buildings ∘ Creating underground parking spaces to use the ground level as green spaces

󰋪 Street landscape ∘ Harmonious streetscape in which each of the buildings and streets are well-organized ∘ Pavement design to improve the image of the streetscape ∘ Street plantation to provide shelters and enhance the street image ∘ Providing guidelines for the facade design of individual buildings ∘ Putting utility lines underground - Due to the huge cost to implement, it is recommendable to do it after checking the financial conditions

7) Architecture plan

① Architecture plan concept

󰋪 Recommending tower-type buildings ∘ Attracting tower-type buildings to secure visual openness and create a symbolic skyline

󰋪 Lower floor designs for a pedestrian-friendly environment ∘ Drawing dynamic low-floor designs to boost pedestrian activities

󰋪 Ground plans for profitability ∘ Maximizing the profitable ground level areas of each building

② Site Layout ∘ Drawing united and harmonized streetscape in building size and form through lot line arrangement and lot merger ∘ Providing broader pedestrian spaces by 1~3m building setbacks as well as preventing conflicts between street furnitures and pedestrians ∘ Architectural design considering pedestrian routes that would enhance accessibility and connectivity among facilities ∘ Drawing continuous commercial streets by the connected building forefront on the ground level that would vitalize the streetscape

∘ Drawing high-rise buildings to secure visual openness and differentiated skyline

203 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

③ Images after the redevelopment

Master Plan

204 4. Development directions of the project areas

③ Images after the redevelopment

Perspective 1

205 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

④ Images after the redevelopment

Perspectives 2

206 4. Development directions of the project areas

8) Development costs and further impacts

① Development costs

󰋪 Areas for expropriation

Expropriation area in each district Index District - 1 District - 2 District - 3 District - 4 Total

Expropriation area (㎡) 1,338 - 6,743 1,548 9,629

󰋪 Estimated development costs ∘ Public sector

Public share of the development costs Cost per unit Development cost Index Unit Scale Note (L.E) (L.E) Land acquisition 2,000 ㎡ 9,629 ㎡ 19,258,000 (expropriation) 120% of Land preparation develop- 250 ㎡ 23,072 ㎡ 6,922,000 (District-1) ment costs Sub Total 26,180,000 Public offices 1,000,000 Number 3 3,000,000 Educational facilities 1,500,000 Number 2 3,000,000 Medical facilities 500,000 Number - - Cultural facilities 500,000 Number 2 1,000,000 Sub total 7,000,000 Total 33,180,000

∘ Private sector

Private share of the development costs Development costs Index Cost per unit (L.E) Unit Scale Note (L.E) Land Preparation 250 ㎡ 105,260 ㎡ 26,315,000 Developer Park/Community 60 ㎡ 4,357 ㎡ 261,420 Developer Center Sub Total 26,576,420 Residential 500 ㎡ 22,839 ㎡ 11,419,500 Land Owner Commercial 300 ㎡ 23,508 ㎡ 7,052,400 Land Owner Sub Total 18,471,900 Total 45,048,320

207 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

② Further impacts

Expected impacts

Index Effects of the development

Diversity of the developers ⊙

Convenience in acquiring resources for the development ×

Convenience in land acquisition △

Flexibility in accepting various demands for the development ○ (required facilities and uses)

Opportunities for re-settlement of current residents ⊙

Convenience in land provision ○

Convenience in infrastructure procurement ⊙

Increase in property value ⊙ (land price increase, increased density)

Development profits of the public sector ⊙

Minimizing conflicts and resistance ○

Convenience in providing affordable housing ○

Urban revitalization effects ⊙

Adaptability in spatial change ○

Great: ⊙, Good: ○, Normal: △, Bad: ×

208 4. Development directions of the project areas

9) Summary

Summary of the development process and the plan Index Concept and summaries Development ∘ Integrated development for the whole target site unit ∘ Largely privately-owned area: Land substitution Land acquisition ∘ Largely publicly-owned area: Expropriation

Development ∘ District - 1: Expropriation unit and ∘ District - 2: Expropriation land acquisition ∘ District - 3, 4: Combination of expropriation and Land Substitution ∘ Public: Expropriation, provision of public facilities, deregulation ∘ Private: Individual construction, full payment of the development costs by Development land substitution process ∘ Developer: Initial investment, payback of the development costs by selling the land secured for recompensation Measures for ∘ Complete Relocation: Providing relocation fee evictees ∘ Temporary Relocation: Providing affordable housing, financial aid ∘ Within a Project Site: Developer ∘ Outside a Project Site: Local government and service providers should take Infrastructure the responsibility for providing infrastructure. (Max. 50%) provision ∘ Financial Aid: Public developer-financial aid; private developer-loan provision ∘ Management: hand management responsibilities to local agencies in charge ∘ Recipients of land substitution: private contract at the land preparation cost ∘ Housing: lottery (economy housing: under the land preparation costs, middle-income housing: at land preparation costs, upper middle / luxury housing: above the land preparation costs) Land provision ∘ Public uses (public offices) and provision - Central / local government: at land preparation costs cost - Land owners: at land preparation costs (above the preparation costs for additional area) ∘ Other facilities: central/local gov.(at land preparation costs), other buyers(lottery, at land preparation costs)

∘ Developer: expected profit increase up to 53.6% in land sales and up to Land 543% in rent substitution ∘ Land owners: expected increase up to 134.9% in property value and up to 279.8% in rent ∘ Easing Construction Regulations : Lowered Max. Building Height - Commercial Area: Max. 50 m Architecture - Mixed-Use Area: Max. 40 m plan - Residential area: Max. 5 stories (except apartment housing) - Commercial, mixed-use, apartment housing: lowered height limits

Estimated ∘ Public sector: 33,180,000 L.E (Cost of expropriation 19,258,000 L.E) development ∘ Developer: 26,576,420 L.E costs ∘ Land owner: 19,773,000 L.E

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(1) Changes in land ownership

Comparison between before and after the redevelopment Before After Private Private Public (㎡) Land owners Area Land for (Publicly-owned Secured land for Land District Public Land for (㎡) (㎡) expropri + expropriation + Recompense (㎡) acquisition (㎡) substitution (Land for a-tion allotment rate (Land for (㎡) substitution x (㎡) 10%) substitution x 20%) 70%)

District-1 23,072 21,734 1,338 - 23,072 - - Expropriation

Land District-2 24,965 8,145 - 16,820 9,827 11,774 3,364 Substitution

Land District-3 25,463 11,348 6,743 7,372 20,740 5,160 1,474 Substitution

Land District-4 31,760 26,156 1,548 4,056 28,110 2,839 811 Substitution

19,773 5,649 Total 105,260 67,383 9,629 28,248 81,749 25,422

∘ 121% increase in publicly-owned land

(2) Cost-profit analysis

󰋪 Public ∘ Sale of the increased publicly-owned land except roads to pay the development costs (Increased area: 14,366 ㎡, Increased road area: 8,345 ㎡, land for sale: 6,021 ㎡) ∘ In district-1 : Expropriation, Land = 12% of the land construction (The costs for land preparation of the project site, which has been developed using the land expropriation method, are 120% of the original costs for the preparation.)

Cost and profit of the public sector Cost Revenue Expropriation Facilities Land Sales District Area Land Return (㎡) Area Amount Amount Preparation Amount (1,000 L.E) ㎡ (1,000 Item (1,000 (1,000 L.E) Sales (㎡) ( ) L.E) L.E) (1,000 L.E) Public District-1 23,072 1,338 2,676 Office 2 3,500 6,922 Commercial 24,762 11,664 School 1 4,127 District-2 24,965 ------Public District-3 25,463 6,743 13,486 Office 1 2,500 - Commercial 11,364 -4,622 School 1 1,894 Cultural District-4 31,760 1,548 3,096 Facilities 2 1,000 - - - -4,096 19,258 7,000 6,922 Total 105,260 9,629 36,126 2,946 33,180 (12.8%)

210 4. Development directions of the project areas

󰋪 Developer

Cost and profit of the developer Cost (250 LE/㎡) Revenue (Land Sale) Sale of the secured Return Area Land (250 LE/㎡) Facility (60 LE/㎡) Cash land for District (1,000 (㎡) (1,000 recompensation L.E) Area Amount Park Amount L.E) Area Amount (㎡) (1,000 L.E) (㎡) (1,000 L.E) (㎡) (1,000 L.E)

District-1 23,072 23,072 5,768 1,068 6408 6,922 - - 1,08992

District- 24,965 24,965 6,24125 601 3606 3,364 20,184 13,90669 2 District- 25,463 25,463 6,36575 1,602 9612 1,474 8,844 2,38213 3 District- 31,760 31,760 7,940 1,086 6516 811 4,866 -3,13916 4

26,315 4,357 26142 6,922 5,649 33,894 14,23958 Total 105,260 105,260 (53.6%) 26,576,420 40,816

󰋪 Land owners

Cost and profit of the land owner Cost (Allotment 30%) Revenue (Land Price/ Rent) Return (%) Substitution Before After Land Distric Area Land Land Substitution Rent Rent Note t (㎡) Commercial Residential Price Price Land Area (1,000 (1,000 Rent (㎡) (㎡) (1,000 (1,000 Price (㎡) L.E) L.E) L.E) L.E)

Distric 23,072------Expropriation t-1

Distric 24,965 16,820 5,032 6,742 33,640 117,740 50,418 353,024 149.9 299.8 t-2

Distric 25,463 7,372 - 5,160 14,744 51,604 15,480 123,840 105.0 240.0 t-3

Distric 31,760 4,056 594 2,245 8,112 28,392 10,299 76,425 127.0 269.2 t-4

5,626 14,147 Total 105,260 28,248 56,496 197,736 76,197 553,316 134.9 279.8 19,773

4.1.5 Management plan

1) Background and purpose

① Background The development plan, which is for land preparation and infrastructure provision, will lose its legal efficacy after the development is finished. Therefore, a long-term management plan is needed to prevent the deterioration of urban functions by reckless

211 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

construction practices.

② Purpose ∘ Reasonable accommodation in land use - Reasonable accommodation in land use by regulating development scale and density, given the physical and spatial conditions ∘ Promoting land functions - Regulating uses and sizes with the consideration of the development purpose and spatial structures ∘ Creating favorable urban landscapes - Preventing landscape deterioration by reckless construction practices, and creating favorable urban landscapes ∘ Planned and systematic management - Continued management of the development area after the project completion to maintain the initial planning concept

2) Plan description

∘ Typology: urban planning ∘ Establishment timing: simultaneously with the development plan - To maintain the management plan even after the development ∘ Planning directions - Establishing specific plans that regulate land use and individual building constructions - Establishing three-dimensional plans including lot lines, land use and density, building form/color/layout, car traffic routes and pedestrian routes, and distribution of public facilities

Planning items Index Planning Items ∘ Lot size Lot Line Arrangement Plan ∘ Lot merger (Recommend/Regulate) ∘ Use ∘ Size: Floor Area Ratio Building Coverage, Height Architecture Regulation Plan ∘ Layout: Designation of architecture line ∘ Site: Open space within a site Public walkway ∘ Streetscape: Building form, facade, color Landscape Plan ∘ Landscape plan and green space plan

212 4. Development directions of the project areas

3) Establishment of the management plan

① Lot arrangement plan ∘ Lot merger and joint development - Strongly recommending lot merger and joint development for commercial and mixed-use buildings

② Architecture regulations plan ∘ Setback - Sidewalk more than 15m: 3m - Sidewalk 10~15m: 2m - Sidewalk of pedestrian-only streets: 1m ∘ Tower-type at upper levels - Commercial: above 5 floors - Mixed-Use: above 3 floors ∘ Maximum height - Commercial: 50m - Mixed-Use: 40m - Residential ∘ Apartment Housing: lowered height limits ∘ Other residential typology: under six floors

③ Landscape plan ∘ Public open space - Creating public open space at the coner of the lots on the sidewalk of streets more than 15 m width - Minimum area more than 45 ㎡, minimum 5 m width around a rotary ∘ Pedestrian route - If guidelines represent pedestrian routes, pedestrian routes are created within a park. ∘ Public walkway - If guidelines represent public walkways, a public walkway is created in an architecture plan of each lot. ∘ Pedestrian-Exclusive Streets - Restricting car traffic on boulevards, and differentiating pavements to secure the safety of pedestrians ∘ Pedestrian-first streets - Lower vehicle speed through differentiated pavements to secure the safety of pedestrians

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④ Planning guidelines

- Recommending lot merger - Tower-type at upper levels (above 6th A C- Maximum five stories floor) - Maximum height: 50m - Recommending lot merger - Tower-type at upper levels (above 4th B D- Maximum height: 36m floor) - Maximum height: 40m

Guidelines

214 4. Development directions of the project areas

4.2 New community development

4.2.1 Development condition analysis

1) New Assiut City General Plan (2002)

(1) Development density ∘ Net density : 456 person/㏊, Total density : 230 person/㏊ - The ratio of the housing site to the entire area of the new town is high. ∘ The high cost for the preparation of a housing site, and low-density development, increase the development costs, which leads to the increase in the land value.

(2) Housing supply methods ∘ The development is not active since the land was divided into a number of small lots and sold for people to develop them individually, instead of developing a large scale housing complex of multi-family housing.

(3) Development conditions ∘ The vacancy ratio of the new town is high, and the development of the land-sold is not active. This has led to the failure in accommodating the due population in the new town. ∘ The owners of the land-sold prefer land ownership to the development. ∘ The prolonged development that has been resulted from a step-wise development has slowed the move-ins of the people. This has prevented the installation of service facilities in the town, and thus the residential environment has remained incomplete. This has caused a vicious cycle of the slow move-ins of the people.

(4) Lack of transportation plan ∘ The new town is connected to its mother city by means of road transportation exclusively. ∘ The accessibility to the new town with public transportation is low with only single bus route provided at a 30-minute interval.

2) Solution to the problems ∘ Enhancing the efficiency of land use by reducing the ratio of a housing site and promoting a high-density development ∘ By increasing the supply of large scale multi-family housing to a site, the development period should be reduced, and the move-in should be promoted by

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locating social and cultural facilities in the neighborhood of the residental area. ∘ By enhancing the area-wide transportation system and public transportation both in number and in quality, the accessibility to its mother city should be increased.

4.2.2 Development method

1) New community development in Korea (1) Bundang

Bundang New town ∘ Location : Seongnam-city, Jungwon-gu, Bundan-dong with 15 other Dongs (25 ㎞ from Seoul) ∘ Area : 1,963.9 ㏊ ∘ Target population : 390,320 people ∘ Planned household : 97,580 households ∘ Objectives - Solving the housing problem of the metropolitan area - Suggesting a development model of Korean New town - Constructing a self-sufficient economic base by creating job opportunities

Development stages of Bundang New town

216 4. Development directions of the project areas

(2) Ilsan

Ilsan New town ∘ Location : An area encompassing Paeksok-dong, Mado-dong, Ilsan-dong and Changhang-dong (20 ㎞ from Seoul) ∘ Area : 1,573.5 ㏊ ∘ Target population : 276,000 people ∘ Planned household : 69,000 households ∘ Objectives and characteristics The total land area of Ilsan New Town is 15,736,000 ㎡. Of the total area, 33.5% is for housing with 7.8% for commercial and business setups, and 58.7% for public facilities. The green area ratio is 23.1%, which makes Ilsan a top-level green city in Korea. In order to provide a pleasant and comfortable living environment, 26.0% of the total residential area is allocated for detached houses so as to record the lowest population density of the five new towns in the Metropolitan Area.

Ilsan New Town will be equipped with various convenient facilities for living such as farm and fishery product distribution center (1), general hospital (3), educational institutions (52), public offices (46), libraries (4), and religious establishments (32), in addition to social welfare facilities, and large shopping facilities. All of these are intended for the convenient and comfortable daily life of all the residents.

Development stages of Ilsan New town

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(3) Pyoungchon

Pyoungchon New town

∘ Location : 20 km south of central Seoul (Anyang-si of Gyeonggi-do) ∘ Area : 510.6 ㏊ ∘ Target population : 168,188 people ∘ Planned household : 42,047 households ∘ Objectives and characteristic - A New Town accommodating different levels of social classes - Linked to the existing urban structure while complementing it - Pleasant living environment

Development stages of Pyoungchon New town

218 4. Development directions of the project areas

2) Regulations and process

(1) The contents of the housing site development promotion project

Housing site development promotion project Classification Contents Article Act ∘Housing Site Development Promotion Project ∘The purpose of this Act is to contribute to the stability of national housing and the promotion of welfare by providing the special cases of the Purpose acquisition, development, supply and management, etc. of housing sites necessary for housing construction in order to solve the urgent deficit in housing sites in urban areas ∘"Housing site" means land for housing construction and public facilities developed and supplied pursuant to this Act ∘"Land for public facilities" means land for the installation of infrastructure as prescribed in the National Land Planning and Utilization Act, and for the Definitions installation of facilities as prescribed by the Presidential Decree Article 2 ∘"Area prearranged for housing site development" means an area designated and notified by the Minister of Construction and Transportation or the Special Metropolitan City Mayor ∘"Arterial facilities" means the facilities as provided in the Housing Act. ∘Designate an area necessary for collectively developing the housing sites as referred to in the demand-supply plan of housing sites under the provisions of the Housing Act as a prearranged area(In case where the Designation of Minister of Construction and Transportation desires to designate the prearranged prearranged area) Article 3 area ∘Where the approval of the housing site development plan has not been applied within two years after the designation of the prearranged area ∘Where the approval of an execution plan of the housing site development business has not been applied within three years after the approval ∘State/local government/Korea land cooperation/korea national housing cooperation may propose that the Minister of Construction and Transportation designate a prearranged area ∘Document(Decree4-2) Proposal for -Examination of prearranged area designation of Article -1/25,000 Location map prearranged 3-2 -1/50,000 topographical map area -Current urban conditions -Fields status -Wide-range transportation network(over 100㎡) -Environment assessment ∘Where the Minister of Construction and Transportation desires to designate Hearing of a prearranged area, he shall hear opinions from the residents and related Article opinions from experts under the conditions prescribed by the Presidential Decree 3-2 residents -14 day public announcement ∘A person who desires to perform the acts prescribed by the Presidential Decree such as an alteration to the form and nature of land, construction of a building, installation of a structure, or gathering, etc. of earth, stones, Restriction on Article sand, or gravel in a prearranged area, shall obtain permission from the conduct 6 head of the competent Si/Gun. ∘The head of Si/Gun may order the person who has violated the area restore the original condition. ∘State or local government ∘Korea Land Corporation or Korea National Housing Corporation; ∘Local government-invested public corporation under the Local Public Executor Enterprises Act Article 7 ∘Joint contributions for the purpose of conducting the housing site development business (limited to where the rate of contribution by the housing constructor conforms to the rate as prescribed by the Presidential Decree)

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∘In case where an executor of the housing site development business desires to execute the business, he shall draw up a housing site development plan (hereinafter referred to as the "development plan") and Approval obtain the approval of the Minister of Construction and Transportation. The of housing site same shall apply where he desires to modify the approved development Article 8 development plan plan ∘In case where the Minister of Construction and Transportation has approved the development plan, he shall make public notice of it, and send its particulars to the head of the competent Si/Gun in order to have the public inspect it ∘Establishment of development plan -People and housing plan Outline of -Mass energy supply plan housing -Transportation plan Article 8 development -Development steps plan -Project financing plan -Opinions of the head of the competent Si/Gun ∘Topographical map of 1/500 or 1/1,500 includes land use plan Plan figure Article 8 (Rule 9) ∘In case where the executor has obtained the approval of an execution plan, it shall be considered that he has obtained a decision, authorization, permission, consultation, consent, license, approval, disposal, dissolution, order or designation (hereinafter referred to as "authorization and Relations with permission, etc.") Article 11 other Acts ∘In case where the Minister of Construction and Transportation has publicly announced the approval of an execution plan, it shall be considered that there has been the bulletin, or the public notification of authorization and permission. ∘In case where it is necessary for the execution of the housing site development business in a prearranged area, the executor may Land expropriate or use (hereinafter referred to as the "expropriation") the land, Article 12 expropriation articles or rights, under Article 3 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation ∘In case where the whole or part of the expropriated land, etc. has become unnecessary due to the dissolution or the modification of the designation of a prearranged area, the cancellation or the modification of approval on the development plan or execution plan, and other causes, the owner of Redemptive land, etc. or his general successor at the time of expropriation (hereinafter Article 13 right referred to as the "person with a redemptive right") may pay the amount of the indemnity received at the time of the expropriation of land etc. with the sum as prescribed by the Presidential Decree to the executor, and redeem it within one year from the date on which it becomes unnecessary. ∘Installation of Arterial Facilities by housing act ∘Not less than 100 house and 16,500㎡ area -Local governments: Roads, waterworks and sewage systems; Installation of -Person who supplies electricity, communications, gas or heating to the Article 14 arterial facilities relevant area: Electric facilities, communications facilities, gas facilities or local heating facilities. -State: Mailboxes. Inspection on ∘In case where the executor has completed the housing site development Article 16 completion business, he shall make it inspected on completion without delay ∘An executor who is not a local government, may consign the land purchase affairs and the compensation affairs for the housing site development Consignment of business to the competent Do governor or the head of Si/Gun as land purchase prescribed by the Presidential Decree. Article 17 affairs ∘An executor shall pay the consignment fee corresponding to the rate as prescribed by the Presidential Decree within the scope of 3% of the amount of the land purchase and compensation. Supply of ∘A person who desires to supply housing sites, shall obtain the approval of Article 18 housing site the Minister of Construction and Transportation as prescribed by the

220 4. Development directions of the project areas

Presidential Decree ∘The use of a housing site, the supply procedure and method, the persons falling under the targets and other matters concerning the supply conditions under the Presidential Decree. ∘Used as the construction site for national housing under the Housing Act, the executor may decide upon a price not more than the prime cost of the housing site formation ∘In case where the executor has installed new public facilities (excluding facilities prescribed by the Presidential Decree such as parking lots and playgrounds; hereinafter in this Article the same shall apply) or installed facilities in lieu of existing public facilities by the execution of the housing site development business, in connection with its attribution, the provisions of Articles 65 and 99 of the National Land Planning and Utilization Act ※ NATIONAL LAND PLANNING AND UTILIZATION ACT article 65 -In case where any person subjected to permission for development acts is an administrative agency, when the said person newly installs a public facility, or installs a public facility substituting for an existing public facility, the new public facility shall revert free of charge to the management Attribution of agency to manage the said facility notwithstanding the provisions of the Article 25 public facilities State Properties Act and the Local Finance Act, and the existing public facility shall revert free of charge to the person subjected to permission for development acts. -In case where any person subjected to permission for development acts is not an administrative agency, a public facility newly installed by the said person shall revert free of charge to the management agency to manage the said facility, a public facility whose use is discontinued due to development acts may be transferred free of charge to the person subjected to permission for development acts within the scope equivalent to the installation costs for the new public facility, notwithstanding the provisions of the State Properties Act and the Local Finance Act. Support of ∘The State or local government may support or loan the whole or part of the Article 28 funds necessary funds to the executor

(2) The characteristics of the project method

The characteristics of the project method

Sector Housing site development promotion project

∘State or local government ∘Korea Land Corporation or Korea National Housing Corporation; ∘Local government-invested public corporation under the Local Public Enterprises Act Actors ∘Corporation established by a person(hereinafter referred to as a "public executor") and a registered manager(hereinafter referred to as a "housing constructor") through joint contributions for the purpose of conducting the housing site development business

Land aquisition ∘Land expropriation Private ∘Not allow participation Right division ∘Constructed land supply :bidding, parcelling-out ∘Recapture project finance by the land sale through land expropriation Finance -The State or local government may support or loan the whole or part of the necessary funds to the executor

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(3) Process of the housing site development promotion project

Formulation of supply plan for housing site

Survey for Prearranged Area and formulation of development plan

Proposal for Prearranged Area (Undertaker) Public announcement and hearing(Si/Gun/Gu) (Including development plan)

Consultation with the head of the central Designation of Prearranged Area and executor administrative agency, and hearing from the and approval of development plan head of the local government (The Minister of Construction and Desig- Transportation) nation of Consultation with the House & Environment area Consultation Committee and plan Deliberation of the Central Urban Plan Deliberation Committee

Formulation of the execution plan of Housing Population & transportation influence assesment Development Project deliberation, (District Unit Plan formulation) Energy use plan consultation, (Executor) Environment influence assesment consultation, Laid underground consultation

Approval of Execution Plan of Housing Site Development (Designation & determination of District Unit Plan area) (The Minister of Construction and Formulation of housing site supply plan Transportation)

Undertaking construction (Executor)

(Executor) Housing site supply approval (City mayor ․ Do governor) Completion of construction and completion Inspection Execution (Executor) Housing site supply Project completion and reporting (Executor) (Article 16, Enforcement Article 18)

Use of housing site (Demander)

Complete area management (Mayor ․ Head of Gun) (Specific plan)

Procedures of the Housing Site Development Promotion Project

222 4. Development directions of the project areas

3) Development methods

(1) Land Expropriation (Public Development Method)

This is a method that national and local governments or public enterprises, as project executor, recover the cost of the project by expropriating the land in the prearranged development area and then selling it to the private end-user. ∘ The public sector expropriates and develops land in an undeveloped area and sell it to the private end-user. ∘ The public sector takes part in land development projects, lightens or amends development restrictions in project areas, and soundly develops urban environment through acquiring more space for urban

Land infrastructure than before the development. expropriation

Density 100% 100% ➡ Density : 100% Public : Development 50% 50% Value 100% of land Owner Disposal Infrastructure

Land expropriation system

(2) Installation, cost and management of urban infrastructure

① Infrastructure installation

Installing infrastructure not only within the project areas but also in the areas surrounding them in the case the need for the interlock of infrastructure arises ∘ Road, communication facility, water supply and drainage, and electricity & energy supply facility : Infrastructure installation ∘ Parking space, school, public buildings, and community facility: Site preparation ∘ Park, green space, and public vacant land: Infrastructure installation and site preparation

② Responsibility for the cost of urban infrastructure

Project executors are charged with the responsibility for the cost of installation and preparation of infrastructure in and around the project areas.

223 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

③ Subsidy and finance

The central or local governments provide subsidies or finance project executors in fully or partially.

④ Infrastructure management ∘ Infrastructure installation and preparation: project executor ∘ Management: Intendances charged with the management of specific infrastructure ∘ Project executers shift the responsibility for infrastructure management to intendances.

(3) Prepared land supply

① Land supply method and supply price ∘ Project executor: site preparation ∘ Public sector: Purchase of land for infrastructure and infrastructure installation ∘ Private sector: Development after purchasing land

Supply method and supply price

Use Demander Supply method Supply price ∘ Public housing(public lease, sale) Prime cost of the ∘ Economy housing Lottery housing site formation Housing ∘ Middle-income housing ″ Over the prime cost ∘ Upper-middle-income housing ″″ ∘ Luxury housing ″″ ∘ Detached housing Lottery Over the prime cost Commercial facility ∘ Other end user Competitive tender Over the prime cost (mix-used) Religious ∘ Other end user Lottery Over the prime cost facility Social ∘ Central and local governments Non-competitive tender Prime cost welfare and ∘ cultural Other end user Lottery Over the prime cost facility Public ∘ Central and local governments Non-competitive tenderr Prime cost building Public facility ∘ Facility administrator and manager Non-competitive tender Prime cost Parking ∘ Central and local governments Non-competitive tender Prime cost space ∘ Other end user Competitive tender Over the prime cost

Industrial ∘ Central and local governments Non-competitive tender Prime cost facility ∘ Other end user Non-competitive tender Prime cost ∘ Central and local governments Non-competitive tender Prime cost Others ∘ Other end user Lottery Over the prime cost

224 4. Development directions of the project areas

The price of land supplied is determined according to the officially appraised land price. Increment of the land supply price is adjusted by assigning upper land price based on the prime cost of the housing site formation. Land use with high development profits such as commercial and parking place is determined according to competitive tender without upper price.

Management of land supply price

Land use Proportion of upper supply price to prime cost Luxurious housing 190% Middle-income housing 170% Upper-middle-income housing 130% Other public area 110% (Including school area) Commercial, parking space -

② Restriction of landowner

󰋫 Restriction of land trade ∘ The first land purchaser restricts the land trade until the completion of a development project. ∘ Making the penalty that a land purchaser should complete the development project within 5 year after the purchase (Allowed to resell the project area to other project executors for lower price than that of the first purchased land in the case the development project is not complete)

󰋫 Restriction of the number of land purchased in person ∘ Restricting the number of land purchased in person through lottery for the land for detached and public housing ∘ Inducing the development for making benefits by charging owner fee in order to restrict using other people's name for land purchase

󰋫 Upper sale price restriction ∘ The private sector develops public housing and limits the proportion of housing land supply price to the prime cost of housing site, by 150%.

4.2.3 Land development plan

1) Development density strategy

(1) New Assiut's planning index

225 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

New Assiut City planning index Sector Development content Reference Planning population 100,000 person Net density of Development density 456.0 person/㏊ residential areas Land use planing areas (㎡)percent (%) Total 4,338,000 100.0 1,072 acre Residental 2,193,000 50.5 542 acre Service 1,864,000 43.0 530 acre Green area 281,000 6.5

(2) Comparison and review of Korean New Town and New Assiut's development density ∘ Comparison among Bundang, Sanbon, and Assiut, which are similar in terms of development density and residential area

Comparison of development density between Korean New Town and New Assiut's development density

Sector New Assuit Bundang Sanbon Reference 456.0 614.8 900.5 Net density of Development Density person/㏊ person/㏊ person/㏊ residential areas Proportion of Residential Residential Areas 50.5% 32.3% 43.1% percent

Residential Areas / ㏊ ㏊ ㏊ 1 Million Planning Person 219.3 162.7 111.1 area Proportion of Residential Area to Total Assiut Areas - 74.2% 50.7%

If New Assiut's planning population is assigned according to the development density of the new towns of Korea, Assiut's residential areas are large enough to accommodate 50.7% and 74.2% of the total residential areas in New Assiut Development Planning.

300 area 250 percent

200

150 219. 3 162.7 100 111. 1

50 50.5 32.3 43.1 0 Assiut Bundang Sanbon

Comparison of residential areas

226 4. Development directions of the project areas

(3) Review of population capacity in the case of application of Korean New town's development density

The review conditions are as follows: ∘ Except for road areas from New Assiut's service areas applying 20% road ratio ∘ Service areas are estimated using New Assiut's development area and the unit of service areas per one person. (New Assiut service areas - road areas= 1,085,000 ㎡, service areas per one person= 10.8 ㎡) ∘ Facilities including service areas: Commercial facility, public facility (Neighborhood park, religious facility, and cultural facility)

Population capacity (application of Korean New Town's development density)

New Assuit Sector Review_1 (Bundang) Review_2 (Sanbon)

456.0 persons/㏊ Development Density 614.8 persons/㏊ 900.5 persons/㏊

100,000 Planning Population (person) 121,100 149,600

2,193,000 50.5 Residential areas 1,970,000 45.4 1,661,000 38.3

1,085,000 25.0 Service areas 1,308,000 31.1 1,617,000 37.2

779,000 18.0 Road 779,000 18.0 779,000 18.0

281,000 6.5 Green Area 281,000 6.5 281,000 6.5

4,338,000 (%) Total Areas (㎡) 4,338,000 (%) 4,338,000 (%)

∘ In the case of applying Korean New Town's development density, there are enough areas to accommodate more population (20,000~50,000) than already planned population. ∘ Applying the development case of Korean New town to New Assiut, service areas are increased because of reduction in residential areas.

(4) Development density review (Korean cases)

① Upper development density adjustment ∘ Population density : over 600 persons/㏊

② Effect on development density adjustment ∘ If the development density is upper adjusted, the population capacity per unit area increases so that it is easy to obtain enough planning area. ∘ Because of the decrease in housing area, it is possible to develop more service area so that it has advantage in retrievability of development costs and benefit creation. ∘ Decreasing and stabilizing housing price by high density development

227 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Case study on Korean development density

Planning Total Developmen Housing proportion Net density Sector population density t areas (㏊) to total area (%) (person/㏊) (person) (person/㏊) Bundang 1,964 390,000 32.3 198.6 614.8 Ilsan 1,574 276,000 33.4 175.4 525.0 Pyungcho 511 170,000 37.8 332.7 880.1 n Sanbon 420 163,000 43.1 388.1 900.5 Jungdong 545 170,000 34.4 311.9 917.4 Average 1,002 233,800 36.2 281.3 767.5

Korean New Town

2) Adjustment of housing site scale

(1) Upper adjustment

① Upper adjustment of housing site scale ∘ Individual development in person causes the problems such as individual charge on the cost of development, and long-term duration of development.

② Upper adjustment of the proportion of public housing areas to total housing areas ∘ Inducing vitality of new town development through proper adjustment of the proportion between old small-scale housing site already built and a large scale housing site newly-built on

Adjustment of housing site scale Sector Site scale Site proportion Economy housing Public housing Middle-income housing Over 10,000㎡ 80% Upper-middle-income housing Detached housing Luxury housing 300~500㎡ 20%

228 4. Development directions of the project areas

(2) Case study of Korean housing site scale

Case study of Korean housing site scale

Sector Public housing areas (㎡) Detached housing areas (㎡)

Dajeon-Kao 255,081 88.0% 34,850 12.0%

Dajeon-Nowoon 457,048 74.7% 154,750 25.3%

Uijeongbu-Nockyang 95,845 88.7% 12,163 11.3%

Incheon-Samsan 58,369 88.8% 7,374 11.2%

Gwangju-Hyochun 222,895 94.3% 13,397 5.7%

Cheongju-Sunghwa 155,485 80.0% 38,859 20.0%

Total 1,244,723 82.6% 261,393 17.4%

3) Improvement of the transportation system

(1) Improvement of the public transportation system ∘ Rearranging the bus intervals: Rearranging from a current half-hour to minimum ten-minute interval ∘ Preparing diverse routes in order to increase the proportion of transportation assignment ∘ Introducing a mass transportation system such as Bus Rapid Transit (B.R.T) and Rail Rapid Transit (R.R.T)

(2) Case study of the public transportation system in Korea

Current status of the public transportation in five New towns

Bus Sector Electric railway Route number Bus intervals (minute)

Bundang 6 15~20 ○

Ilsan 8 15~20 ○

Pyungchon, Sanbon 4 10~20 ○

Jungdong 2 25~30 ○

229 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Location map of five New towns

Transportation system of five Korean New Towns

230 4. Development directions of the project areas

4.2.4 Fundamental concept of the development planning

1) Population and housing

(1) Process of the planning establishment

Field survey ① Superordinate plan review

ㆍUrban index survey ㆍPopulation density and distribution plan ㆍDevelopment conditions and future plan

② Distribution standard for housing development area

③ Distributing land use for housing

④ Estimating each land use area

⑤ Estimating building gross area

⑥ Applying average area in each housing type

⑦ Estimating the number of household capacity

Number of person per household in target year

⑧ Estimating planning population

YES ⑨ Reviewing development goals and characteristics NO of the project area

Confirming planning population

Population planning

231 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

(2) Standard of planning establishment

① Planning directions ∘ Reflecting the analysis on the population and housing index of superordinate plan ∘ Appropriate estimation of population capacity and reasonable distribution standard of each housing type ∘ Appropriate distribution of public and detached housing development area

② Population plan ∘ Reflecting the analysis in the characteristics of housing demand and population movement to the plan in the large scale view ∘ Reflecting the characteristics of population structure such as household and age structure and income to the plan ∘ Considering the future development plan and development conditions of the plan for the surrounding areas of the project area

③ Housing plan ∘ Creating the basic course of the action for housing and housing site according to the population distribution plan and the characteristics of population moving in the project area - The number of supplying housing and proportion of housing distribution - Scale of housing site and housing - Scale of housing density ∘ Distribution plan for housing type and housing development site - Distributing public and detached housing site according to the standard of population and area estimated in each block - Distributing the types of public housing considering local housing demand and house owner proportion

Distribution standard of the number of household in each housing type

Economy housing Over 20% Over 60% Middle-income housing

Upper-middle-income housing Under 40% Luxury housing Under10%

232 4. Development directions of the project areas

(3) Planning population and housing

① Planning population ∘ 100,000 persons (New Assiut's planned population)

② Housing planning ∘ Public and Detached Housing ∘ The number of household within a detached housing site ∘ Allowing Neighborhood Facility only in first story of detached housing

Housing type

Reference Sector House area (㎡) (New Assiut) Economy housing 60 30~66 Public housing Middle-income housing 75 75~110 Upper-middle-income housing 110 110~160 Detached Luxury housing 140 140~190 housing

The number of planned households in each household type (Population per household: 4 persons)

Sector Planning housing number Proportion

Economy housing 5,000 20%

Apartment housing Middle-income housing 10,000 40% Upper-middle-income housing 7,750 31% Detached Luxury housing 2,250 9% housing Total 25,000

Distribution of housing site in each household type

Section Proportion

Economy housing

Apartment housing Middle-income housing 80%

Upper-middle-income housing

Detached housing Luxury housing 20%

233 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

2) Land Use

(1) Process of planning establishment

Status survey and data collection ㆍNatural environment and human environment survey ㆍOther relevant data collection Survey data analysis and synthesis ㆍCollected status data analysis Forecasting ㆍProblem and potential analysis ㆍDemand forecast in each land use Setting in Planning Object ㆍPlanning population and the number of household ㆍSphere of life ㆍMain facility index ㆍDevelopment density

Setting in appropriate Status analysis and development density synthesis

Estimating appropriate requirement area Suitability analysis in each Estimation in each land land use use

Fundamental concept of land use plan ㆍPlanning condition and standard ㆍLand use planning ㆍRouting system design ㆍConvenience facility Land Use Alternative ㆍDetermination of zone of life ㆍLand use plan ㆍRoad system design ㆍSetting park and green area system ㆍLocating public convenience facility Alternative assesment, appointment and amendment ㆍComparison and review of alternative and planning goal ㆍAssesment of degree of goal achievement Master plan

Process of land use planning establishment

234 4. Development directions of the project areas

(2) Standard of Planning Establishment

① Planning concept ∘ Reflecting regional development concept and land use change to plan ∘ Maintaining the connectivity among each land use by dividing the conflict function and concentrating complete function

② Land use plan

󰋪 Housing area ∘ Limiting housing density to appropriate volume of infrastructure in the project area in the consideration of the condition of project area ∘ Community Plan for interrelationship between neighbors

󰋪 Commercial site ∘ Collectively locating commercial site ∘ Organically locating convenience and business facilities considering the connectivity between residential areas

󰋪 Social welfare and cultural facility site ∘ Locating on nodes of main load or main pedestrian load in residential areas ∘ Collectively locating convenience facilities and maintaining complementariness between them

󰋪 School site ∘ Locating it on each sphere of life considering service areas ∘ Locating it on the area that has a good condition in terms of sunshine, lighting and ventilation ∘ Excluding the area where the educational environment is poor

󰋪 Public building site ∘ Locating it considering transportation convenience and connection to public transportation ∘ Locating it considering the service area

③ Standard of each land use area ∘ Commercial Site and Road (Average ratio of 5 Korean New Towns)

235 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Standard of each land use area

Sector The number of using household Area (㎡) Elementary school 2,500 12,500 School Middle school 5,000 13,500 High school 6,000 15,500 Village office 3,000 700 Police office 5,000 700 Public facility Fire station 7,000 800 Post office 7,000 700 Cultural facility Library 10,000 5,000 General hospital - 28,000 Medical facility Hospital 5,000 500 Religious facility Buddhist temple 2,500 1,000 Commercial site 5.2% of the total project area Children park 0.6㎡ per person Park Neighborhood park 3㎡ per person Parking space 0.6% of the total project area Road 21.4% of the total project area

(3) Development density plan ∘ Total density : 370.3 person/㏊ ∘ Net density : 801.6 person/㏊

Volume of housing area Building-to-land Ratio Sector Planning Volume (㎡) (%) Economy housing 220 30% Middle-income housing 200 20% Apartment housing Upper-middle-income 180 20% housing Detached housing Luxury housing 120 60%

(4) Land use concept

① Goals

󰋪 Creating urban amenities ∘ Creating a pedestrian-friendly environment by generating pedestrian networks ∘ Creating urban amenities with sufficient open spaces

󰋪 Systematic land use planning ∘ Placing various functions while considering the connectivity with its adjacent areas ∘ Promoting complementary land use

236 4. Development directions of the project areas

② Concept ∘ Locating a cluster of public facilities such as public agencies, a library, and welfare facilities, and industrial facilities in the center of the project site ∘ The downtown is created on the living-sphere basis by formulating a cluster of facilities supporting the living sphere such as schools, public facilities and welfare facilities in the center of each individual living-sphere of the town. ∘ Pedestrian-oriented urban environment with pedestrian networks between different facilities

Land use concept

Type of usage Area (㎡) % low 163,000 5.29 Residential high 1,455,000 47.19 Commercial 150,000 4.86 Green area 360,000 11.68 Public facility 47,200 1.53 Educational 257,100 8.34 Public services Community core 53,000 1.72 Parking 18,000 0.58 Roads 580,000 18.81 Total 30,83,300 100.00

Land use concept map

237 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Land use plan

3) Urban Infrastructure

(1) Standard of plan establishment

① Planning direction ∘ Regional scale review and plan: Considering the connectivity to the neighboring area and capacity

② Transportation

󰋪 Vehicle route ∘ Securing ratio and extension of road considering urban scale, land use plan and future transportation demand ∘ Designing the route properly enough to achieve the overall proximity to a city

󰋪 Pedestrian route ∘ Designing pedestrian route considering the division between vehicles and pedestrians, and the connectivity and the security of pedestrians ∘ Planning the route considering the interconnected system for various needs of pedestrians

238 4. Development directions of the project areas

③ Park

󰋪 Green network establishment ∘ Increasing the proximity and usability of park systemized with a main pedestrian route and park's main route

󰋪 Increasing green proportion ∘ Increasing green proportion by establishing the standard of minimum area per person

④ Supply and treatment facility ∘ Supply and Treatment Facilities for water supply and drainage, electricity, energy supply and communications ∘ Planning through the cooperation between urban planners and facility maintenance managers while considering planning population, planning capacity and supply and treatment method

(2) Transportation routes

① Road ∘ Guiding accesses to individual lots on local roads rather than boulevards ∘ Systematically networking local collector roads to mitigate transportation impact

② Street ∘ Networking it with open space and public facility

(3) Park and public facility

① Parks ∘ Distributing parks in connection with public offices, schools, and community facilities, considering accessibility and use frequencies ∘ Placing parks close to pedestrian routes

② Public facilities ∘ Promoting convenience by locating public offices, schools, and community facilities closely with each other and connected with pedestrian routes

239 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

Traffic line

Park and public facility

240 4. Development directions of the project areas

4) Outdoor Spaces plan (1) Development density ∘ Applying compact development for land economic efficiency ∘ Mitigating building hight limits of around the apartment housing area street for visual openness - Economic Housing: under 25story - Middle Housing: under 20story - Upper Middle Housing : under 15story ∘ In low density residential areas, attracting four-story buildings for friendly street landscape ∘ Mitigating building height limits of around the central business street to plan under 15story building

(2) Massing ∘ Lower levels - Creating 5-story decks in commercial areas and 3-story decks in public services facilities zones - Designing lively enterprise area for attracting pedestrians ∘ Upper levels - Attracting tower-type buildings to secure visual openness and create a rhythmical skyline

(3) Outdoor Spaces ∘ Lower levels spaces - Applying human scale design for attractive streetscape ∘ Upper levels spaces - Creating various and future oriented plan to express new inner-city development image

(4) Architecture Plan Concept ∘ Planning tower-type buildings to secure visual openness and create a rhythmical skyline ∘ Drawing dynamic lower floor designs of a central business area to boost pedestrians' amenities and activities ∘ Maximizing the profitable ground level areas of each building ∘ Establishing large scale plan for collaborated development with adjacent areas

(5) Site Layout ∘ United and harmonized streetscapes and building size and form through collaborated development

241 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

∘ Creating a right angle block for reducing bad influence of regional environment and protecting privacy of area ∘ Considering pedestrian routes for site layout that would enhance accessibility and connectivity among facilities ∘ Designing continuous commercial streets by the connected building forefront at the ground level that would vitalize streetscapes

Height Regulation

Massing

242 4. Development directions of the project areas

An example of Development Plan

243 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

5) Financial resources and management

(1) Financial resource procurement ∘ Site fee: Financial resources for site fee are not required because it is the government-owned property that is developed. ∘ Development fee: Central or local governments offer the project executor subsidies or loans.

Development costs Price Sector Content Reference (1,000 L.E) Site fee - ∘ Government-owned property ∘ Infrastructure Land 160,331 (Load, electricity, communications, etc) 52 L.E/㎡ Development preparing fee ∘ Land development costs Facility ∘ Public, medical, religious, social, 3,573 10 L.E/㎡ construction fee cultural, and administrative facilities Total 163,904 Sale benefit 173,858

(2) Maintenance and management

① The central maintainment body ∘ Executing the project using the subsidies offered by the central and local governments

② Project execution area ∘ The project executor is in charge of site preparation, road construction, pavement and park/green area formation ∘ Supply and treatment facilities are built in collaboration with the facility maintenance manager. ∘ After the project executor prepare and provide the commercial and housing site, the private sector gets involved in the development.

③ Management Plan ∘ The project executor is in charge of land purchase and compensation. ∘ The project executor sells public buildings, schools and parking spaces to end users. ∘ Infrastructure facilities such as roads, open space, parks, green areas and water supply and drainage are reverted to the intendance free of charge.

244 4. Development directions of the project areas

6) Fundamental concept synthesis for the development plan

Summary of fundamental concept for development plan

Division Fundamental concept

∘ Rational land use by decreasing housing site and realizing high density development ∘ Decreasing total development period by upper adjusted apartment housing supply Problem and and inducement of high movement ratio through a neighborhood-oriented improvement development ∘ Improving traffic proximity by installing an extended transportation system and improving public transportation Adjustment of ∘ Population density : Net density - Over 600 persons/㏊ develop density ∘ Rearranging bus intervals (Rearranging from the current half an hour to a maximum ten-minute interval) Improvement of ∘ Creating a range of routes in order to increase the proportion of transportation transportation assignment system ∘ Introducing a mass transportation system such as Bus Rapid Transit (B.R.T) and Rail Rapid Transit (R.R.T) ∘ Upper adjustment of housing site scale ∘ Upper adjustment of the proportion of apartment housing areas to total housing areas Sector Site scale Site ratio Economy housing Adjustment of Apartment Middle-income housing housing site scale Over 10,000㎡ 80% housing Upper-middle-income housing Detached Luxury housing 300~500㎡ 20% housing

∘ Infrastructure installation and preparation : Project executor Installation and ∘ Subsidies and finance : Central or local governments get subsidies or are financed responsibility for by the project executor totally or partially. the cost for urban ∘ Maintenance and management : The project executer shifts the responsibility for infrastructure infrastructure management to the intendance.

∘ Site fee : Financial resources to meet the site fee are not required because it is Financial resource the government-owned property that is developed. procurement ∘ Development fee : The central or local governments provide the project executor subsidies or loans totally or partially. Price Sector Content Reference (1,000 L.E) Site fee - ∘ Government-owned property Land ∘ Infrastructure (road, electricity, preparative 160,331 communications, etc) 52 L.E/㎡ Development costs Develo Fee ∘ Land development and expected pment benefits fee Facility ∘ Public, medical, religious, social, construction 3,573 cultural, and administrative 10 L.E/㎡ fee facilities Total 160,904 Sale benefit 173,858

245 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

(1) Development plan comparison by development density adjustment ∘ In the case of upper development density adjustment, the proportion of the project area to the already planned area is 801.6 persons/ha or 62.3%. ∘ Owning to the decrease in the area for housing site, it is easy to secure the housing area securement for housing supply.

Development density adjustment Sector Alternative Already planned alternative Reference Development Net density 618.0 person/㏊ 456.0 person/㏊ density Total density 324.3 person/㏊ 230.5 person/㏊ Project area 3,083,300㎡ 4,338,000㎡ 71.1% Proportion of housing area 52.5% 50.5% +2.0% Development cost 160,331,600 274,460,000

(2) Comparison of development density of housing site and house supply price ∘ Thanks to the upper adjustment of development density in housing site and decrease in the land purchase fee, the housing supply price has decreased, and the price has been finally stabilized.

Comparison of development density Sector Alternative Already planned Reference alternative Economy housing 1,197 person/㏊ 500 person/㏊ Middle-income housing 802 person/㏊ 405 person/㏊ Density Upper-middle-income ㏊ ㏊ housing 436 person/ 321 person/ Luxury housing 343 person/㏊ 214 person/㏊ Housing site 1,618,000㎡ 2,193,000㎡ site fee, Proportion of house supply price 1 1.35 construction fee

(3) Adjustment of the proportion of the housing site supply ∘ It is expected to facilitate the project to adjust the proportion of housing site to the total project area to 80%. - Thanks to the fact that the project executor has changed from individual land owner to professional developer, the project has become more reliable.

Adjustment of the proportion of housing site supply Site Sector Standard Number of lot proportion Economy housing Apartment Middle-income housing 2,000~2,500 12~15 90% housing Upper-middle-income households housing Detached housing Luxury housing 467㎡ 349 10%

246 5. Indicators

5.1 Indicators and monitoring system

5.1.1 Introduction to the monitoring system

Due to the rapid urbanization in most developing countries, urban planners often face a formidable challenge developing and controlling infrastructures to provide necessary services for urban population. In many countries, these tasks have been made more difficult with the lack of political and economic stability; in addition, the proliferation of agencies for planning and program implementation at the metropolitan level created confusion and obstacles within the system. Under these circumstances, it can be argued that the monitoring and evaluation of urban planning efforts should be more emphasized.

In general, monitoring is primarily concerned with devising procedures to facilitate information feedback that is needed to evaluate the progress of plan implementation. Such procedures also enable those involved to review the assumptions that underlie strategic planning at the regional level and revise them if necessary. At the individual program or project level, monitoring mainly involves performance review. However, in the development process, broader questions, which must be dealt with, are often raised by the agency itself or noticed by other agencies. Unfortunately, there is no one best way to develop monitoring systems for individual urban and regional planning agencies. Although experiences of developed countries might be helpful for developing countries, monitoring systems must be tailored to the individual needs of each urban areas and regions of different countries.

Under these circumstances, in which there is no identical monitoring system, an individual country relies upon the customized planning system. In general, the planning system involves an exhaustive preparation leading up to the formal adoption of the structure plan. After the adoption, the progress achieved is continuously monitored and major reviews are also regularly carried out. In both cases, the monitoring function is interpreted in broad rather than narrow terms, to include an evaluation of the underlying assumptions as well as an assessment of progress towards the implementation of specific policies (progress estimation). Thus, one may assert that regardless of the structural differences in the planning system, a monitoring system

247 THE PROJECT FOR THE ESTABLISHMENT OF NATIONAL AND LOCAL MONITORING SYSTEMS TO OBSERVE AND EVALUATE LAND DEVELOPMENT POLICIES IN EGYPT

consists of problem detecting and progress estimation. Research team or planning agency, moreover, must put the priority on the monitoring system rather than implementing the practical urban planning.

A monitoring system is composed of various related indicators, which are designated for specific policy purposes. Thus, urban indicators should simultaneously be developed with the monitoring system. Although the proper role of urban indicators with the monitoring system is controversial, it is commonly argued that urban indicators are tools for communicating with the public and other stake-holders, as well as measuring the quality of life and the nature of development of an urban area. In addition, they can be used to make comparisons over time and space to form the basis of urban development policies. It requires local authorities to use indicators both for compiling their integrated development plans as well as for setting up management systems.

Integrated development plans and management systems, particularly urban areas, are often addressed in a master plan or urban agenda, which declares the future development strategies. Among various indicator systems, there are three distinctive approaches.

󰋪 A policy-related approach ∘ Stems from government or community concern ∘ Related to the process of establishing urban strategies and policies ∘ Begins with developing a comprehensive inventory of major social goals or norms and then devising indicators to measure the progress towards these goals.

󰋪 A thematic/index approach used by the UNDP ∘ Broad themes, livability, sustainability, or good governance are concerned ∘ Either multidimensional, involving different aspects which have different indicators.

A systematic approach of the organization for economic cooperation and development, is now used to support the Agenda 21 and other environmental sustainability agendas.

5.1.2 Monitoring system and indicators

The most appropriate example for the Egyptian urban indicator system, especially for planned urban management is the policy-based approaches of the UNCHS Urban Indicators Program and World Bank/ UNCHS Housing indicators Program because

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monitoring system is based on the indicator system and the most important purpose of the monitoring system is estimating the policy progress. They provide a more comprehensive set of indicators directly related to the policy concerns; furthermore, the program was developed in full consultation than any other indicators system. In addition, it has been shown that they have the capability of producing a large collection of indicators at an affordable cost since they are specially devised for developing countries in Africa and Asia.

The monitoring system is composed of various indicators and, in Arabic, the word for indicator means pointer, which describes how an indicator is intended to point towards some desirable state or course of action. Each indicator is actually a kind of small model, implying elements of cause and effect, of social norms that constitute progress, and of policy actions and outcomes.

Sometimes the difference among index, indicator, statistics and data is not clearly distinguished. However, the major difference among indicators and other data and statistics is that the connection with policy is, or should be, explicit. Indicators are about interaction between policy and data. More time is usually spent in working out to determine the type of data to collect and why during the indicator activities than in purely statistical exercises.

The relationship between data, statistics, and indicators is shown in the next figure.

Relationship between data, statistics and indicator

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Various definitions can be used and data collected according to the specified strategies and policies. However, the strategies and policies are, even they are associated with the same urban sector, different in each country due to their unique situations. Thus, one should keep in mind that there has been no one solution to defining indicators and establishing a monitoring system in different countries, and even in different region in the same country. Accordingly, it is highly recommendable to identify the national strategy and policy priority that are the most significantly considered in the country.

Before we suggest the best indicator structure for Egyptian urban issues, it is strongly required to review the previous policy-based indicators system of the UNCHS and other related indicator systems.

① CDB (City Data Book) of Asia Development Bank

One of the examples of the most extensive indicator system is the City Data Book (CDB), which is developed by the Asian Development Bank (ADB). In developing the indicators for the CDB, ADB considered a number of objectives. Specifically, ADB addressed ADB’s major strategic objectives, as expressed in its current Urban Sector Strategy, and indicators have been developed after the consultation process. Thus, the ADB indicator system provides a comprehensive set of indicators, directly related to policy concerns. Another beauty of this indicator is that it has shown the capability of producing a large collection of indicators at an affordable cost.

In particular, the ADB indicators system, which is called CDB (City Data Book), has 140 indicators which are grouped into 13 main divisions and each of which includes a variety of indicators measured in different ways.

The 13 main divisions are the same as the followings. 1. Population, migration, and urbanization

2. Income disparity, unemployment and poverty

3. Health and education

4. Urban productivity and competitiveness

5. Technology and connectivity

6. Housing 7. Urban land

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8. Municipal services

9. Urban environment 10. Urban transport

11. Culture

12. Local government finance 13. Urban governance and management

The divisions above are all associated with the specified policy objectives and the linkage among affiliated strategies, the target and indicators are well described in Table 1 as a example for the urban sector.

In table 1, once the specified urban strategies are clarified first, associated targets and indicators that estimate the progress of how the strategies are achieved, are suggested in depth.

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ADB’s urban sector goals, strategies and targets, and indicators

Strategy Target Indicators

- Assist market to reduce the cost of serviced land to no more than 3 -Land development multiplier times the cost of unserviced land - Cost of m2 of land in prime -Reduce public sector housing commercial location expenditures in favor of - No. of business permits granted infrastructure spending per year -Assist market to stabilize the cost - Cost of business overnight stay of prime land through planning, - Total net expenditure on controls, etc, as for the prime Provide adequate land to help housing by the public sector rental commercial space improve the economic - Prime land cost -Ensure minimum 2-year supply of efficiency and quality of life in - Prime rentals vacant land with planning the city - Amount of vacant land with permission planning permission -Reduce the amount of unused - Amount of vacant land held by public sector land by 50% over 3 the public sector years - Level of developer’s -Maximize the share of contribution infrastructure costs to be paid by Proportion of public open space the developer to built-up areas, per year -Ensure the minimum ratio of open space to build-up areas of the city

Improve systems for land regulation, land transfer, -Establish maximum time for land Time for obtaining planning structure planning, and transfer, approval of subdivisions permission planning/building controls

Establish or improve Level of involvement of all -Degree of access to city procedures for public stakeholders at the each stage of information participation planning process -Public meetings

-Distribution by dwelling and tenure type - Distribution by tenure type Increased share of legal and Support innovative housing - House price to income ratio affordable housing available for schemes and owner/builder - House rent to income ratio low-income households; better construction which incorporate - Level of compliance with balance between housing by incremental standards and modified planning and building dwelling/tenure type and better compliance codes affordability - Floor area per person - Dwelling construction and investment

Recognize informal housing Legalize all informal - Informal housing, squatters, and areas as legitimate parts of the housing(except those in dangerous dwellings in compliance city locations) over the next 3 years - No. of homeless people

-Ratio of the total mortgage credit Establish lending programs for to all the credit, per year Leverage financial resources, housing in community-based - Proportion of houses with minimizing use of subsidies financial institutions over the next mortgages 3 years - New loans - Housing subsidies

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These indicator structures along with the specific strategy and policy targets are the same in other indicator studies such as in the UNCHS.

② UNCHS

In terms of the latest database, GUI database II, the UNCHS (Habitat) has developed an indicators system that contains a set of 23 key indicators and nine qualitative data. These are the minimum data required for reporting shelter and urban development consistent with the twenty key areas of commitment in the Habitat Agenda universal reporting format. Since indicators are supposed to measure performances and trends in the 20 selected key areas, and to measure the progress in the implementation of the Habitat Agenda, they provide a comprehensive picture of cities, which, with other indicators which may be chosen by countries, will provide a quantitative, comparative base for the conditions of cities, and show the progress towards achieving urban objectives.

Two different types of data are included in the database: key indicators and qualitative data. ∘ Key indicators are either number, percentages or ratios; ∘ Qualitative data vive an assessment of areas which cannot easily be measured quantitatively. They are audit questions generally accompanied by check-boxes for yes or no answers.

The summarized results are presented in Appendix 1, and the UNCHS urban indicators are condensed into Appendix 2.

󰋫 A gradual change in the UNCHS Urban Indicators

Indicators first figured on the agenda of the Commission on Human Settlements in 1989 when it asked the Executive Director of the Habitat Centre to draft a set of indicators which could be used for monitoring the implementation of the Global Strategy for Shelter to the Year 2000 which had been adopted in the previous year. During the period 1989 to 1993, a joint working group of the World Bank and Habitat elaborated the first phase of the Housing Indicators Programme. In 1993, it was decided to extend this set with indicators on other urban concerns: poverty, unemployment, productivity, social development, infrastructure and governance.

This programme produced two main databases in 1996 and 2001 (Global Urban Indicators Databases I and II), presented at the Habitat Conference and the Istanbul

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+5 which helped establish regional trends in key urban issues. The next Global Urban Indicators Database will continue to address the Habitat Agenda key issues, with a specific focus on the Millennium Development Goals, particularly, its Target 11 on the improvement of slum dwellers.

󰋫 Developing process of the UNCHS indicator programme

For the first database in preparation of the Habitat Conference (1996), the year of reference for data collection was 1993. For the Istanbul +5 Conference, the year of reference was 1998, 5 years later. The year of reference for this third round is 2003 in order to report to the Habitat Conference, 30 years after Habitat I, to be held in Vancouver in May 2006. ∘ Initial Urban Indicator (1989-1993)

UN-HABITAT has been a pioneer organization in the collection of urban indicators. In 1991, it initiated the Housing Indicators Programme, focusing on monitoring shelter performances. It then turned into the Urban Indicators Programme (UIP) in 1993 in order to focus on a larger range of urban issues.

It contains some 50 indicators, which the working group submitted in 1995 and it was not so much focused on the implementation of the Global Strategy. It made a general plea for the use of indicators at every level of government as well as by NGOs. It emphasized that indicators often have to be adapted to local circumstances and it encouraged national and local authorities to do so and, if necessary, define their own indicators. A series of information and training activities for the use of indicators was there-upon launched by Habitat and other international and regional agencies. ∘ Habitat (1996)

The Habitat Agenda came out of the Habitat ?conference. Habitat ?, the second United Nations Conference on Human Settlements, which was held in Istanbul in June 1996 and 151 governments agreed on the course of action to be undertaken during the next decades to provide adequate housing for all and for the development of sustainable human settlements. Adopted by 171 countries, at what was called the City Summit, it contains over 100 commitments and 600 recommendations on human settlements issues.

The Habitat Agenda contains commitments in the following areas: adequate shelter for all; sustainable human settlements; enablement and participation; gender equality; financing shelter and human settlements; international cooperation; and assessing

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progress.

In the Habitat Agenda results of the 1996 Habitat II Conference, Member States and the Habitat Agenda Partners have requested that UN-HABITAT continue monitoring urban conditions worldwide. They have also committed themselves to monitoring their own urban conditions overtime and report on their trends regularly. ∘ Istanbul +5 (2001)

UN Habitat has responded by engaging itself in a review of the existing indicators system. For Istanbul+5, UN Habitat recommended 20 Key Indicators, 9 Checklists and 13 Extensive Indicators to monitor performances and trends in selected key areas in the implementation of the UN Habitat Agenda. Key indicators will be applied at the city level. City results will be incorporated into country reports for Istanbul+5. ∘ MDG (Millennium Development Goals, 2006)

The Millennium Development Goals came out of the commitments made in the Millennium Declaration, which was adopted unanimously in by United Nations member states in September 2000. The Millennium Development Goal (MDG) Targets most relevant to human settlements development are under Goal 7, which aims to ensure environmental sustainability.

For this new phase, data will be collected through different mechanisms. For the Africa Region, workshops will be held in order to gather experts to agree on key results for the region using a sample of urban agglomerations. Data experts will be selected from the National Statistics Offices, Ministries responsible for urban issues at the National level, Municipal and Metropolitan authorities representing urban agglomerations.

1) Brief summary

As we discussed in ADB and UNCHS cases, the indicator system heavily relies on the unique situation of each country in which the indicator system attempts to target. In other words, every country which requires the indicators system needs unique strategic approach, i.e. policy objective, to solve its problem. To achieve specific policy objectives, the country should first identify each policy objective. Then, the related indicators may be chosen, and thereby regularly collected and monitored. Therefore, developing and constructing an indicator system should be accompanied with the policy identification. If specific policy objectives are not identified, indicators

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are nothing but simple data description.

Thus, identifying representative policy objectives, especially in terms of urban sector, should be the first priority before establishing indicators and a monitoring system.

2) Major urban issues and policies of Egypt

As mentioned in the previous chapter, Egypt has experienced a rapid urbanization in the 20th century as other Islamic countries. Although the annual population growth rate declined from 2.8% in 1986 to 2.29% in 1996, the percentage is still very high compared to other developed countries (Kim 2001).

Rapid urbanization inevitably leads to a shortage of affordable housing and increasing informality. With around 60% of the population under the age of 25 and the average rate of population growth at roughly 2%, the expected population by 2020 is 93 million. Therefore, the high demand for new housing is expected to continue for many years; nevertheless, the housing industry did not properly respond to the increasing demand. There was serious bottlenecks both within the housing industry and government intervention that have discouraged new housing constructions, especially for rental purposes.

Major issues and related problems in terms of housing market can be summarized as follows: ∘ Low level of housing production for low and middle-income households ∘ Low housing investment ∘ Sky rocketing housing price and rent ∘ Lack of rental housing supply

With the above-mentioned housing problems, policy alternatives have been suggested as follows through the joint study between KRIHS and consultants. ∘ Comprehensive housing survey (housing conditions, demand, etc.) as mentioned in the previous KRIHS housing reports ∘ Along with the comprehensive housing survey, it is highly recommended to relax government regulations - The old housing policies adopted by the government in the 1950s until the 1979s have led to housing shortage, withdrawal of the private sector from the housing market, the exacerbation of informal housing, land speculation in urban areas

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combined with lack of access to the state land by different low-income segments, reluctance to register real estate or housing properties, and lack of financial resources for housing development. ∘ Towards decentralized housing supply - The finance of housing in the governorate level comes mainly within their local budget supported by central transfer or through the mobilization of their local financial resources. Through these mechanisms, the governorate has managed to construct 553,776 units within the period (1982-2005) which represents almost 44% of the total public sector's contribution in this period and 16% of the total housing stock built within this period. The majority of these housing units targeted the low and middle-income class households. This figure indicates the capacity of local governments to perform such an important task if more initiatives for decentralization would be adopted to empower local governments to increase its local financial resources and enable the urban poor to access housing and land within their jurisdictions. ∘ The current land development process is highly complicated and time-consuming. It is therefore essential to devise an efficient process as well. ∘ A wide range of institutions and governmental entities which are involved in any decision related to land development with hardly any coordination among them and in several cases with conflicting interests which negatively affect the overall process of development. This area needs an urgent adjustment towards simplifying and lowering the number of the approvals from these bodies.

Housing shortage in formal areas leads to informal settlements. Accordingly, the problem of informal settlements is another critical urban issue. The term informal housing generally refers to a housing which is constructed in violation of both urban planning and building legislations related to planning regulations, land subdivision, construction, registration of property, and preservation of agricultural resources. A large number of households and new migrant population had to settle in either temporary, or informal, and unauthorized shelters. Egypt is a typical example of developing country where the rapid urbanization process has taken place within the last four decades mostly in an informal manner. Today, the informal settlements in Egypt represent almost 40% of the urban population of the country, which is around 12 million inhabitants, in addition to another 8 million in rural areas. Major problems regarding informal settlements are as follows.

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󰋫 Lack of clear definition and credible data

Although the increasing informal settlements are one of the most critical issues in Egypt, quantitative figures are very difficult to obtain and requires a complicated process. This is mainly due to the lack of credible data about those informal settlements; such areas have not only suffered for a long period of abandonment by the government in terms of data collection, but also several methods of defining them exist today on the ground. Those definitions are coming from multiple governmental organizations involved in dealing with such settlements and non-governmental organizations and donors as well. For example, even if the Ministry of Local Development(MOLD) collects various data regarding informality, they are not directly associated with socio-economic factors, which should first be considered vis-a-vis informality development. Rather, the MOLD definition of informality is strongly accompanied with the physical infrastructure. The Egyptian government realized this problem and started the 1993 National Upgrading Program for informal settlements in Egypt titled "Providing Infrastructure."

This program defines two types of informal settlements totaling 1,221. However, since the designated areas are only included in agricultural land and state desert land, other issues have been raised. ∘ In addition, focus on physical improvement rather than socio-economic development of the MOLD may give rise to the following policy alternatives. - It is required to be done with the socio-economic informal sector identification rather than physical aspect. - The private sector and non-governmental sectors are not considered for development. - Infrastructure installments are not beneficial to local informal residents. (planning law prohibited illegal housing connect to the formal infrastructure)= land registration system - The informal area is regarded as "Dead Capital" and cannot be utilized through the formal economic activity because of its illegality.

3) Concluding remarks

Rapid urbanization is primarily responsible for major Egyptian land management problems. Increasing urban population due to the urbanization inevitably created housing shortage and the vicious circle of informal settlements.

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Poor people without housing started to move to urban fringes and formed informal settlements, even in the inner city. Skyrocketing housing prices and strict rent control laws force the poor to move out of city or encourage them to settle down in an inner-city informal settlements. Therefore, it is reasonable to suggest following policy alternatives: first, in the long term, the Egyptian government should decentralize political system, especially the land supply system. Decentralization is the first step to mitigate the increasing urban population. especially in the metropolitan area. Second, in the short term, the government must endeavor to: ∘ Reform of the land and housing registration system. ∘ Supply rental housing provision. ∘ Establish socio-economic informal sector development strategies (Legalizing informal sector could be considered). ∘ Establish the urban monitoring system of the Egyptian government

4) National Urban Observatory of Egypt

Although significant Egyptian urban problems are based on the housing and informal sector, various and extensive indicator systems have been developed. The Egyptian government’s effort to build this set of indicators system, such as urban observatory within the framework of the UNCHS/WORLD BANK Set of Indicators, is summarized as the followings.

󰋫 Housing performance indicators

The Housing Performance Indicators (HPI), a joint WB-UNCHS (now UN Habitat) programme, were launched in 1989-1990 and developed for countries with different income levels. The HPIs were developed as tools to facilitate national governments in reviewing housing activities and assessing its performance in the housing sector "in a comparative, consistent and policy oriented environment"; formulating and implementing national shelter policies and appraisal of new housing loans offered by international agencies. The HPIs created a framework for comparing the housing sector performance between cities and countries over time.

Initially, the WB team prepared an exhaustive list of indicators on the basis of literature review. At the second stage, the HPIs were developed for cities in 53 countries by an international team of experts. One major city, generally the national capital, was selected in each country. The HPI package included 35 quantitative and

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20 regulatory and qualitative indicators in 6 modules: housing production, housing quality, housing finance, housing affordability, housing subsidy, and housing regulatory audit.

󰋫 Housing and Urban Indicators for Habitat II

The UN HABITAT developed a housing and urban indicators package in 1993-94 for assessing the performance in the urban domain in terms of respective policy goals. It recommended the national governments develop these indicators for a few cities in their country and include them in their national report for a Habitat II conference.

The Housing and Urban Indicators package included 46 key indicators and 129 extensive indicators in 6 specialized modules including socio-economic development, infrastructure, transport, environmental management, local government and housing besides background module. The package was developed for 237 cities across 110 countries.

󰋫 Istanbul + 5

Based on the UN habitat agenda 1996, and Resolutions 15/6 and 17/1 of the UN Habitat, UN Habitat through its global Urban Observatory (GUO) developed an urban indicators system that contains a set of Istanbul +5 indicators. These were the minimum data set suggested by the UN HABITAT for reporting on shelter and urban development, consistent with the twenty key areas of commitment in the UN Habitat Agenda universal reporting format. The package includes 23 quantitative and 9 qualitative indicators.

The GUO programme of the UN HABITAT aims at developing a worldwide information and capacity building network to help implement both the UN Habitat Agenda and UN Agenda 21 at national and local levels. The purpose is to help governments, local authorities and civil societies to : ∘ Improve the collection, management, analyses and use of information when formulating more effective urban policies ∘ Understand how cities work as social and economic systems and to use that knowledge for more effective national and local action planning.

The objectives of the GUO programme are: ∘ To stimulate broad-based consultative processes to help identify and integrate urban information needs ∘ To help build capacity for the collection, management and policy applications of

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urban information, focusing on urban indicators and best practices ∘ To provide information and analyses to all stakeholders for more effective participation in urban decision-making and ∘ To share information, knowledge and expertise using modern information technology and infrastructure.

A global network of local, national and regional urban observatories and partner institutions that provide training and other capacity building expertise will be imperative in achieving these objectives.

The Millennium Declaration Goals (2006) were subsequently included and became a critical component.

5) The Establishment of the NUO, Mandate, Organization Setup & Activities

The HABITAT II emphasized two themes in 1996: 1) adequate shelter for all and 2) sustainable human settlements in an urbanizing world. These two themes are interrelated, and thus, must be approached simultaneously. The Egyptian government expressed its commitment to the HABITAT Agenda II, which was reflected in its major policy shifts in the housing and urban development sectors during the last two decades.

However, at present, there is no system for obtaining feedbacks for the activities in the housing sector undertaken by actors outside the government monitoring systems are inadequate to monitor the effective-reach-out of public housing programs on a regular basis; and available data are inadequate to reflect the reach of the housing products to various segments of the market, particularly to vulnerable groups. There is also no system for obtaining a regular feedback on other aspects of housing activities, such as investment, capital formation, house completion rate, vacancy rate, rental and ownership units, infrastructure, etc.

(1) Historical Development of the NUO

Decision makers for setting urban development policies must have the capacity to quickly adapt to the rapid change and new challenges brought about by political, economic and technological transformations. Recognizing the importance of urban observatories in ensuring the sustainability of development efforts, the Ministry of Housing, Utilities and Urban Development established the Egyptian National Urban

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Observatory (NUO) within the General Organization for Physical Planning (GOPP).

In 1999, the Ministery of Housing, Utilities, and Urban Communities started to prepare the urban indicators at both national and regional levels, and the GOPP. As the highest authority responsible for setting national urban policy, GOPP was entrusted to take the responsibility for establishing and operating the NUO. Moreover, the GOPP is responsible for supervising the implementation of such plans through its close cooperation and coordination with competent administrative authorities at the local level (i.e., housing and utilities).

The work on urban indicators was planned as the first step towards establishing the NUO. Currently, the development of urban indicators as well as the preposition of new indicators that are suitable for the Egyptian context are among the main activities of the GOPP/ NUO.

The NUO is closely linked to the National Committee on Human Settlements consisting of representatives of concerned agencies. This committee is responsible for following up on the activities of the NUO and facilitating the access to various data banks and sources necessary for the development of the indicators. Accordingly, all NUO activities related to data collection and development of indicators will be monitored and utilized by the National Committee on Human Settlements to assist other agencies involved in the formulation of policies at various levels.

(2) Egypt's National Report to Istanbout +5

Several training workshops in the area of urban indicators have been provided by the United Nations Center for Human Settlement (Habitat)/Society for Development Studies (SDS) in cooperation with the GOPP/NUO between 2000-2001. As part of the preparatory work for the United Nations General Assembly at its June 2001 special session (Istanbul +5), the GOPP/NUO prepared national and local urban indicators for Tanta and Ismailia. These indicators were included in the national report presented at Istanbul +5 in June 2001. The main objective of this report is to assess the progress achieved by the GOE in implementing the Habitat Agenda.

The responsibility for preparing this National Report was assigned to a National Committee, which has been specifically formed by the GOE. The committee is composed of representatives from various ministries and governmental agencies with equal gender representation. Moreover, several subsidiary committees were formed to

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collect and analyze data pertaining to indicators, best practices, good policies and legislations, supervised by the national committee. The preparation of the National Report involved organizing several workshops to review national and local action plans and progress achieved since the City Summit in 1996.

In various chapters, the national report addresses the numerous items selected from the commitments and strategy sections of the Habitat Agenda - as specified in the universal reporting format - to indicate progress achieved while implementing the Habitat Agenda since the City Summit in 1996.

Based on the Habitat Model, NUO prepared urban indicators at the national and local levels (17 indicators at the national level, 19 indicators for Ismailia city – 17 indicators for Tanta city) which were included in the National Report presented at the Istanbul +5 Conference.

(3) Housing in Egypt: problems, issues and suggestions for solution

Preparation of this report entitled "Housing in Egypt" was one of the major activities carried out by the GOPP/NUO. The Korea International Cooperation Agency (KOICA) provided technical support to the GOPP to develop housing indicators. This report proposed a set of housing indicators at both the national and regional levels, specifically for Cairo, El Gharbia and Ismailia.

The report is composed of six chapters. Chapter 1 presents the background information on housing problems in Egypt. Chapter 2 specifically focuses on the problems related to the housing needs, supply and price. Chapter 3 discusses the housing conditions and standards in informal and temporary housing, which provides the basis for developing housing indicators. Government polices and programs are presented in Chapter 4. Chapter 5 presents achievements and some caveats, and provides an assessment of the housing policies and programs. Finally, Chapter 6 presents recommendations and suggestions for improving the housing policy formulation and implementation processes. Annex 1 includes a set of indicators covering the following six aspects: demographic profile, economic profile, housing conditions/housing quality, housing market, housing industry, housing finance and government polices/programs. The indicators were developed by the GOPP/NUO with technical support provided by the KOICA’s expert, Prof. Kim Jeong-Ho.

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Main recommendations

∘ Update and prepare realistic urban and regional development strategies at a local level; ∘ Emphasize local initiatives when dealing with urban problems; what seems to be missing is local capacity building; local leadership, organizational and managerial skills of local officials, and professional experts of various disciplines. In this vein, it is recommendable to gradually transform the role of the GOPP from direct planning agency to that of "an enabler" or "a facilitator" to assist and promote local governments’ capacity building; ∘ Relax government regulations and restrictions gradually with respect to building codes, height and bulk control, rent control and high rate of fees for building permits and licenses; ∘ Promote private sector’s participation in housing and infrastructure development, which will help the housing market more competitive in the long run; ∘ Revise the new town development scheme; conceive new towns as an accelerated growth pole to serve as a counter magnet against the existing urban centers; ∘ Develop a housing finance scheme in such way that savings can match home loans, e.g. contractual savings scheme; ∘ Increase residential investment to absorb the unemployed and the underemployed population, and the trade-off between employment generation and inflationary effects should be taken into account; ∘ Conduct a comprehensive study to help better understand the housing market and develop better plans for cities for growth management. Such a study presupposes various surveys and field researches, including housing market survey, housing inventory/conditions survey, neighborhood conditions and amenities survey.

Following is the summary of the two recommendations that are directly related to the NUO activities:

󰋪 Update and prepare more realistic urban and regional development strategies at the local level:

The study proposes a bottom-up approach to regional development in Egypt to complement the national efforts. For each region, to come up with more realistic development plans, some base studies must be conducted, intensively examining such key elements as population, land uses, local economies, transportation/circulation system, and utilities. GIS technologies must map out pertinent information at the planning and program development stage. The detailed description of the required studies are as follows:

󰋪 Population study ∘ Population characteristics ∘ Change in population; birth and death rate, in and out-migration, fertility, etc. ∘ Cohort-survival projections or forecasting

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∘ Projections of other population parameters ∘ Population qualities: education level and health

󰋪 Study on the local and regional economy ∘ Local industries and competitiveness ∘ Basic vs. non-basic industrial activities ∘ Employment profile and level of wages and salaries ∘ Potentials and drawbacks for growth; export-based or import-based ∘ Labor force; skills, quality and productivity ∘ Investment and its multiplier effects on income and employment ∘ Forecasting the local economy

󰋪 Land use study ∘ Evaluation of the current use patterns ∘ Appropriate mix of various uses: residential, manufacturing, transportation / circulation, utilities, rec. and parks, open space, etc. ∘ Environmental problems and standards ∘ Land reserved/preserved for archeological and historical sites ∘ Forecasting land use based on the population and economic projections

󰋪 Transportation and circulation study ∘ Inventory of transportation facilities: streets, highways, mass transits, etc. ∘ Users’ behavior: trip purposes, trip length, mode and distribution of travels ∘ Quality of the circulation system and its consistency with land uses ∘ Vehicle subsystem: costs, speed, etc. ∘ Terminals and parking spaces ∘ Integration with the inter-city transportation network: air-borne, sea-borne, railroad or any other surface transportation systems

󰋪 Utilities and infrastructure ∘ Portable/sanitary water ∘ Electricity and gas ∘ Sewerage and waste water/solid waste collection and treatments ∘ Holding capacities of various infrastructure facilities

󰋪 Quality of living environment ∘ Air and water pollution ∘ Soil pollution

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∘ Ways and means to abate pollutants ∘ Strategies for environmental improvement: laws, decrees, regulations, etc.

󰋪 Conduct a Comprehensive Housing Study

The study proposed to carry out a comprehensive housing study that includes the following three main studies : housing market study, housing inventory/conditions survey, and neighborhood conditions survey.

The housing market is basically a local market that is very complex and diverse in terms of consumption, investment, tenure systems, occupants (renters and owners), socio-economic status of residents, etc. Therefore, the market analysis should address the following issues: 1) delineation of the market area; 2) economic trends of the area; and 3) an outline of the demand factors; in particular, employment, disposable income, household characteristics, economic and social make-up of the neighborhood, vacancy rate and tenure structure. On the supply side, the study must examine current residential construction activities, inventory of the existing stock under various categories, current sales volume, and other market conditions; e.g. unsold units, marketability, sales, rents, mortgage defaults and foreclosures. In addition, the study incorporates price analysis-e.g. floor price vs. ceiling price. The gap between the two represents the nature of the market; e.g. demand-driven or supply-oriented. Moreover, market studies must be conducted on a regular basis–possibly once every few years if the market changes rather dynamically and about five years if it is considered relatively stable. Market studies should be directed to at least four agents of the market: consumers, developers, real estate brokers and mortgage lenders. In addition, market study can be performed less costly, if survey instruments (samples, and field surveys for informal areas) are carefully designed.

󰋪 Housing Inventory/Conditions Survey:

The existing housing stock inventory constitutes the largest housing supply for a given area at any one time. Planners should know the age and conditions of the existing housing stock, price ranges, location and materials being used; the quality of the housing stock itself and the neighborhood environment, and changes in stock over time. This information can be used to promote efficient housing management and conservation program.

󰋪 Neighborhood Conditions Survey

The neighborhood study must investigate what changes have been taking place in

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certain neighborhoods and determine how such changes would affect them currently. If the changes are considered negative - deterioration of the neighborhood, for instance, the study must come up with contingency plans to reverse the trend.

The timing is important as much as the consensus among the residents of the neighborhood on what to do about their community. Moreover, the neighborhood condition survey should focus on the quality of neighborhood environment and various community services provided, including utilities, transportation and other social services. It should be noted that the value of the residential property depends significantly on the neighborhood conditions. What should also be examined is the mix of land use. Incompatible uses often cause the home value to decline. The neighborhood survey helps establish a community development/ neighborhood conservation plan.

(4) Defining housing needs in Egypt using indicators

In 2005, the NUO prepared a report entitled "Defining Housing Needs in Egypt Using Indicators." This study was submitted to the Ministery of Housing Committee at the Arab League. The main objective of this study was to actualize the study consisting of 4 sections, which include an introduction and recommendations. The introduction sets out the housing strategies of Egypt and the study's main objectives. Section 2 addresses existing housing conditions at the governorate level (rural and urban) in Egypt, using indicators. The main indicators include: ∘ Population size, population growth rates and expected population in 2017 ∘ Number of households and change between 1986-1996 ∘ Rate of family formation ∘ Change in average family size ∘ Crowding : persons/room ∘ Size of the existing housing stock ∘ Production of new housing units during the 1986-1996 period ∘ The relationship between households and number of housing units. ∘ Unused housing units at the governorate level and in the greater Cairo and Alexandria region ∘ Distribution of households by dwelling type ∘ Distribution of households by type of tenure ∘ Distribution of HHs by the availability of potable water

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Section 3 presents the analysis of various approaches to define housing requirements in Egypt up to the year 2017. Three studies that prepared estimates of Egypt's housing needs were examined and compared. These studies include: ∘ Housing Study in Arab States: needs – demand – supply – gaps ∘ Annual plan defining required housing units (rural and urban) 2002-2017 prepared by the Housing & Utilities Sector/MHUUC ∘ Housing requirements between 2002-2017 prepared by the GOPP

The review shows a large variation in housing requirements estimates and the need to conduct a comparison between various estimates of housing requirements and estimated population growth.

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5.2 Land Management Information System in Korea

5.2.1 Introduction

The master plan for the land management information system development is administered by the Ministry of Construction and Transportation, which has been carrying out the establishment of land policy, appraisal, transactions and use since 1997. That administration, however, is not without problems. For example, the information contained in many of the maps and land registry books managed by land administration are inaccurate and discordant. Data from the maps and books often overlaps since various government organizations are involved in information production and management. Additionally, people must travel great distances to visit a city hall, county office or district office in order to obtain the land-related information they seek. Even after their arrival, citizens frequently wait for extended periods of time before they receive the answers they seek. Interestingly, it usually takes several months before the information produced by municipalities can be utilized in the establishment of land policy. This delay is detrimental to timely policy establishment.

To solve these problems, this project has three primary objectives. First, it makes land-related information available to citizens at any time and at any place. Second, it will help to improve land administration productivity by automating repetitive operations. Third, it will quickly collect accurate information necessary for the establishment of timely and effective land policy. Topographical, cadastral, and zoning maps are included in the land database in order to achieve each of these objectives. The application systems that accomplish land-related operations, such as land appraisal, transactions, and use plans, have been developed and fielded in all Korean municipalities. Additionally, the fielding plans for these systems benefit from scientific studies to simplify institutional adjustment, revised guidelines, standardization, etc.

The master plan for the land management information system development was established in 1997, and a demonstration of the project was conducted in Nam-gu, Daegu Metropolis in 1998. By the end of 2006, sixteen metropolitan areas and provinces encompassing 234 cities, counties and districts had adopted the land management information system.

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5.2.2 Issues of land administration and land management information system

1) Present Status

(1) Operational Procedures

Land administration operations are governed by various laws and ordinances, and they utilize a hierarchical structure that separates the responsibilities of land management and the operations of land policy. Land management operations include land transactions, publicly announced land pricing information, development charges, land acquisition by foreigners, management of real estate brokers, and advocacy of land information provided to citizens who visit various city halls, county district offices.

Metropolitan areas play an important role as an intermediary link between central organizations and city, county and district representatives. These areas also aggregate the land information produced by smaller districts and provide that data to the central office for its use in developing large-scale land use plans such as national and urban land planning. Land policy operations, administered by the Ministry of Construction and Transportation, include national-level oversight to maximize the use of limited land resources and to equitably distribute land profits. Additionally, policy operations address ownership and land use policies, as well as guidelines that organize profit redemption as well as general land management policy.

To assist in the establishment of land policy the Ministry of Construction and Transportation has conducted statistical analyses on data related to the execution of land management operations by city and metropolitan areas (figure 5-2).

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Special Request for land Ministry of governing appraisal Government object 토지정책수립Land policy Appraisers Administration and Status of (managed(건설교통부) by MCT) Home Affairs land Evaluation of ownership land appraisal Operatio Land Corporation Land policy Transaction nal data statistic Transaction data Land use plans National Tax Service (by Metropolises-

Land Corporation Operational data provinces) Data for land appraisal branches Transaction data Land policy Request of land appraisal confirmation Real estate transaction Land Civilians transaction Land appraisal Civilians Transaction of seal of Issue of land appraisal confirmation Levy of approval develop ment Land Registration The charges Administration management of Development 지자체and Civilians real estate Land-brokers charges management토지업무 Transaction (City-county- brokers district)

Request for Request of land use plan acquisition report Foreigners’ Zoning- confirmation Foreigners land Civilians management Deliver permission of the report acquisition Issue of land use plan confirmation

Procedures of land administrative operations

(2) Data

Data produced in the process of land administration operations necessary data can be divided into spatial and attribute (non-spatial) data. Spatial data includes topographical, cadastral, and zoning maps, and utilize different types and scales depending on the purpose of the maps.

Topographical maps, produced and distributed by the National Geographic Information Institute, are approved and printed by a director within the institute (Art. 23 of Surveying Law). These maps, available in scales including 1:1,000, 1:2,500, 1:5,000, 1:10,000, 1:25,000, 1:50,000, and they are utilized in the establishment of land use plans, zone selections, facility location planning, and land use-present conditions.

The National Geographic Information Institute made numerical geographic maps available nationwide for four years, from 1995 to 1998, and the maps were rendered in several reduced scales. For example, 1:1,000 is a reduced scale for 78 downtown areas requiring facilities management offices, 1:25,000 for mountainous areas, and 1:5,000 for other areas. The numerical geographic map (figure 2) is composed of three

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basic components. These layers are consistent with the hierarchical structure categories of small, medium and large categories. There are nine large-category layers, including railroads, rivers, roads, buildings, tributaries, facilities, topography, administration, etc. Current numerical geographic maps contain enormous amounts of information that can be tailored to the needs of specific fields. However, they also include a good deal of superfluous information such as spatial data in land management information systems. This unnecessary information causes difficulties in database construction, maintenance, and management of the maps. Additionally, numerical geographic maps lack topological structures that are required by the land management information system. Likewise, the available topologic attribute data originates from paper maps. As a result, the database must be built during the editing process in which numerical geographic maps are converted into topological data.

Numerical geographic map
Cadastral map (topographical map)

Another type of chart, the cadastral map, specifies the location, lot number, land category, and boundary of a land parcels. These maps support land management as well as protection of land ownerships (Articles 1 and 10 of the Cadastral Law). These cadastral maps are available in scales of 1:500, 1:600, 1:1,000, 1:1,200, 1:3,000, and 1:6,000 (Article 11 of the Cadastral Law). Additionally, boundary-coordinate registers may be included according to needs of competent authorities. Boundary-coordinate registers were produced after the introduction of numerical surveying, and they are card type-cadastral registers in which record boundary points are recorded as coordinates. The information found in cadastral map-based land legers include the

272 5. Indicators

location, lot number, land category, overall area, and the owner's name and address. These maps are controlled by responsible offices since (per Article 8 of the Cadastral Law) cadastral maps may not be made without the approval of a minister within the Ministry of Government Administration and Home Affairs). They are partially offered to the public for the express purpose of confirming property ownership. Cadastral maps are utilized not only for land register-management operations, but also for civil affairs such as issues of land-use plan confirmation, zone selection, land appraisal, and price. The Ministry of Government Administration and Home Affairs began computerizing cadastral maps in 1999 and completed the work in 2003.

Cadastral maps are useful tools in representing property rights, but they are somewhat problematic. First, coordinates in cadastral maps are not standardized. Second, joining points on separate cadastral maps are discordant since they do not match each other. Computerized cadastral maps perpetuate the problems of paper cadastral maps, such as differences in coordinates, since resolution of the inaccuracies had not been completed before the digitization process was begun.

More than 80 different laws and regulations govern the efficient use and preservation of land in some 270 separate zones. These zones were assigned by government organizations, which are also responsible for the management, production, and utilization of those zones. Applicable laws and regulations regarding zone management stipulate the types and scales of maps to be used for specific purposes.

The scales of maps vary from 1:500 to 1:50,000 and the types of maps used (topographical, cadastral, and zoning) vary as well. The relevant laws and regulations do not yet stipulate map sizes; however, the National Geographic Information Institute has been producing and referring to commonly-sized maps with the intent of standardizing the topographical or cadastral map as basic maps. These maps are generally produced on paper, but some civil services require them to be film-based.

Some municipalities have begun the process of digitizing the zoning maps to be utilized by civil services. At present, no laws or regulations have been enacted to govern the computerization of zoning maps. As a result, the formats and types of maps produced by individual municipalities vary greatly. Municipality directors are currently responsible for the production of zoning maps. The actual production of information is accomplished by private organizations that establish land-related plans

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and manage the selection and modification of zoning maps.

Each organization in a municipality inspects the locally-produced maps to ensure accuracy. As mentioned previously, each municipal organization administers the modification of boundary zones and updates the information included in the land registers. These municipalities do not manage changes to topographic maps; rather, changes are accomplished by existing aerial surveys. Thus, the management of zoning maps requires a great deal of cooperation and collaboration between organizations. In practice, zone-boundaries require the cooperation of zone-related organizations; additionally, cadastral boundaries necessitate collaboration between land register-related organizations. Additionally, cooperation between zone-related organizations and civil service-related organizations should occur early and often to maintain the accuracy and consistency of maps for legal and civil services. Maps that express zone boundaries also must be accurate since the selection of zoning maps is directly connected with individual property rights.

Unfortunately, the topographical and cadastral maps that form the basis for zoning maps are fundamentally inaccurate. Unless these problems are solved, the zoning maps ultimately derived will perpetuate these inaccuracies. Zones are specified on many different kinds of maps using various methods according to applicable legal precedents and relevant laws. This process results in boundary discrepancies zoning maps. Also, the logical relationships between zones vary greatly between scales and types of maps.

Attribute data with consistent figures and numbers exists within land register books. The data related to land use plans is obtained from cities and other metropolitan areas whereas attribute data associated with land appraisals and transactions are produced at city, county and district levels. Whether the data is produced at the city-county-district or at the metropolis-city levels, it is utilized for statistical analysis. The data held in the Ministry of Construction and Transportation or at metropolis-city levels support land-policy establishment. Unfortunately, the connections between relevant land register books are insufficient. In particular, most land-related services utilizing spatial data experience problems while conducting operations since overlaps in data management occur primarily because land register books and spatial data are only loosely connected. Provisions in the laws that manage similar land register books have become the primary reason for overlaps in land data management.

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National land use planning map
Urban planning map

Road preservation boundary map
Forestland use map

(3) Organizations

The institutions relevant to land administrative operations are the Ministry of Construction and Transportation, the Ministry of Government Administration and Home Affairs, and the Supreme Court. The Ministry of Construction and Transportation is responsible for land policy operations related to land transactions, public announcements of land prices, the management of real estate brokers, and zoning maps. The Ministry of Government Administration and Home Affairs is responsible for administering a taxation system such as cadastral management. Lastly, the Supreme Court manages real estate registrations related to land ownership. Most land-related administrative operations other than ownership registration are entrusted to metropolis-city and municipalities (city-county-district). In municipalities, urban planning and land register-related posts are responsible for managing the operations of land administration.

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In addition, organizations that produce and manage various types of spatial data for of land administration operations are also separated. For example, The National Geographic Institute is responsible for managing topographical maps, land register posts in municipalities for cadastral maps, and zoning maps for urban planning posts within municipalities. These organizations do not produce maps, but exert authority in evaluating their contents., In the case of cadastral maps, however, municipalities directly manage map production and verify the data contained therein.

Other than managers within the Ministry of Government Administration and Home Affairs and land register posts within municipalities, most land-related administrative organizations are organized under a rotational appointment system. Operational managers in municipalities are normally hired into computer-related posts rather than working in assignments directly related to land administrative operations.

2) Problems

The most important factor in vertical and horizontal relationships within land administrative operations is that data production activities, utilization, distribution, and management must be logically organized. However, there are many problems related to poor data organization.

First, as has already been mentioned, more than 80 different laws and regulations govern the efficient use and preservation of land in some 270 separate zones. This situation leads to discrepancies among the various maps and land register books. Such errors include the issuance of civil affairs documents by a municipality which mistakenly considered the land as being quasi-agricultural despite the fact that such land was unsuitable for building projects referenced in the land use plans. These kinds of errors can cause land owners to suffer the loss of their properties and their well-being. Because of this situation, investigations were conducted in all municipalities. The results indicated that these problems are not associated with particular areas since more than five similar cases have occurred annually in each municipality. These situations demonstrate the seriousness of the problems. Figure 5-8 is an example of discrepancies within National land use zones referenced in planning and forest use base maps. The points indicated by arrows are areas that cannot exist either spatially or logically. In other words, sub-preservation areas of forest use are zones that cannot exist in agricultural areas specified within national land use plans.

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Sub-preservation areas

Agricultural areas

Urban areas

Environment preservation

ÁØareasº Àü ÀÓ Áö ³ó ¸² Áö¿ ª µµSub-agricultural½Ã Áö ¿ ª areas ÀÚ¿ ¬È ¯° æº ÀüÁö¿ª ÁØ³ó ² Áö¿ ª Source: National land use planning map (1/5,000) ÁØSuburbanµµ ½Ã Áö ¿areas ª 자료: 국토이용계획도(1/5000) 산림이용기본도(1/25000)

Example of discrepancies on zones

Second, investment overlaps frequently occur when various government organizations are involved in land information production and management, thus leading to discrepancies in relevant information. In most cases, organizations that regulate land use plans take the leading role in limiting such use for particular purposes., Civil services also provide information concerning the synthesis of land use plans, production, and management of similar land information.

Third, government employees must routinely accomplish many tasks that are dependent upon statistics, ledgers and written applications. They are responsible for accomplishing an especially large number of cases that must be documented and recorded. Further, they must notify civil affairs officials upon receiving documents in the ledger and investigating appropriate laws and regulations.

Fourth, people must sometimes travel great distances in order to visit a city hall or a county or district office to obtain land information. It is not uncommon for waiting periods to exceed 20-30 minutes.

Finally, it is quite difficult to combine information produced by several different offices within basic level-municipalities. Several months must pass before information is properly combined since it must first pass through many steps that frustrate the timely publication of land policy.

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5.2.3 Strategies for developing Land Management Information System

1) Purposes of the Land Information-oriented System

The land information-oriented system assists in distributing profits generated from limited land resources by solving the problems inherent in land administration. The project has several objectives that are intended to solve these problems. First, it establishes a scientific method by which land policy can be published in a timely manner, and it creates a network for rapidly collecting accurate information. Further, it also enables the Land Policy Decision-Making Support System to analyze data in various ways. Second, it provides land-related information to citizens at any time or place. To minimize the inconvenience associated with visiting government organizations to obtain land information, confirmations for land use plans and publicly announced land prices can be obtained through the remote system and the Internet without contacting city-county-district that manages information on individual lands. Third, it helps reduce the workload of government employees when searching for land information. It will also assist in constructing a system that executes simple, repetitive duplicated operations automatically, and helps obtain relevant information in behalf of those employees. Fourth, it will fill the requirement for land database spatial information infrastructure in each municipality.

Demands for land information are enormous because that information is utilized not only for the operation of land administration, but also for other organizations with various purposes. Therefore, overlaps in production and management often occur since many organizations are involved in land information. Furthermore, this situation causes discrepancies and redundant investments based on that information. To eliminate these problems, an information infrastructure should be constructed that will allow users to share accurate, standardized land information.

2) Promotion Strategies of the Land Information-oriented System

It is expected that the objectives of the future land management information system mentioned above will not easily achieved through the application of simple information technologies. The difficulties stem from the radical change in working

278 5. Indicators

environment from analogue to digital, which may be challenging for some employees unaccustomed to automated information systems and the incongruity of applied technologies. Therefore, comprehensive promotion strategies must be devised to adapt the operations of analogue land administration to a digital environment. The associated objectives include: solving the problems related to land administration operations, eliminating obstacles that may impede the land information-oriented system, and achieving the final land management information system.

(1) System arrangement to convert from the analogue to the digital environment

At present, the systems associated with the production, utilization, management and dissemination of land information are based on analogue technologies. Interestingly, those systems may hinder the fielding of an efficient land information-oriented system since future land administration technologies will be digital. Therefore, a set of rules governing the production, utilization, management and dissemination of land information should be converted from the analogue environment to a digital one.

(2) Opening and dispersing types of system development applying component GIS technologies

Computing environments that consist of software and hardware platforms, and operating systems and networks are heterogeneous, since each municipality has already been operating several information systems. That heterogeneous nature will become a more serious issue in the future as the level of information-oriented systems increases. Adopting standards for useful information technologies and inducing opening component GIS technologies will make the system synthesis easier. Additionally, developing the land management information system, which will reduce maintenance costs and effort, can be achieved through the support of reusability and interoperability in binary codes.

(3) Synthesized database construction as a spatial information infrastructure in municipalities

Land information is fairly significant in social life since it has enormous impacts on people concerned with land use plans, appraisals and transactions. Additionally, this information system will become one of the most basic and important systems in the

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fields of industry, economy, culture, and society. Therefore, it enacts a municipality-centered spatial information infrastructure that will share land information with anyone who needs the information.

(4) Organization and administration of cooperative promotion system for the business promotion

The operations of land administration are divided into vertical and horizontal relationships depending upon task characteristics, and are carried out by several organizations. While municipalities are responsible for producing and managing land information, many operations such as land management, land register, land use plans, and computerization are accomplished by each government organization within a given municipality. The Ministry of Construction and Transportation plays the leading role in promoting the land management information system development project. Additionally, municipality-based officials who execute the operations mentioned previously must be active partners in constructing the land management information system. However, a considerable portion of that work has been outsourced to expert groups. Therefore, concrete agreement on the land management information system must be accomplished through building close cooperation between the Ministry of Construction and Transportation, municipalities, and outsourcing expert groups.

(5) Public relations and education for rearing information-oriented pioneers intending the innovative changes

Bureaucratic organizations are generally guided by regulations, hierarchies, and technical specialization. Unfortunately, this rigid and systematic culture is endemic in most public institutions; therefore, uncooperativeness between related organizations within municipalities is widespread. However, the land information-oriented system promises innovative changes rather than uncooperative cultures, but these changes demand more time and effort than we expected. As a result, it will be fairly difficult to achieve the objectives of a land information-oriented system unless the officials in charge extricate themselves from their respective bureaucracies and participate actively in solving the problems before us. Once those officials gain confidence in the results of information-oriented system as opposed to remaining deniers on the system, they will become innovative pioneers in the overall project.

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5.2.4 Embodiment of Land Management Information System

1) Structures of Land Management Information System

(1) General structures

Land information users were categorized into either government organizations or civilians according to the established hierarchical characteristics of the operations of land administration in ministerial, city-provincial, city-county-district, and civilians. The server system that executes each function has been constructed so that the contents and properties of the information demanded by each user are fairly different each other.

The network that will share information between the systems is composed of the National Administration Information Network and the Internet within an environment of land databases. For example, the Land Information Service System provides land information to civilians via the Internet. Systems other than the Land Information Service System are interconnected with a high-speed national information communication network which was constructed to maintain efficient sharing and consistency of data between the Ministry of Construction and Transportation and municipalities (figure 5-9).

(2) Basic system architecture

In the land management information system, an open architecture that emphasizes development of information technologies, architectural efficiency and extensibility was designed to support heterogeneous dispersion between municipalities. Korea has adopted a three-tiered client server architecture (Clients-Application Server-Database Server) that applies the standard specifications of CORBA (Common Object Request Broker Architecture), and the server can be divided into data provider, edit agent, and map agent (figure 5-10).

The map provider basically searches for spatial data from a GIS engine and transmits that data to map agents and clients, whereas the edit agent edits the data (input, revision, and deletion). The map agent creates map images by using the spatial

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data received by the data provider and carries out a function to transmit those images to the clients. The map agent utilizes Java-based architecture that achieves operability regardless of platform type. Lastly, a web server provides various kinds of spatial data to relevant organizations via an intranet while it also inquires spatial data through the Internet in behalf of civilians.

Nationwide Constitution on LMIS

System architecture on LMIS

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(3) Land Database

The land database is built as a unit of basic level-municipalities, and it will provide spatial data such as topographical, cadastral, continuous-cadastral, rubber sheeted-cadastral, and zoning maps, as well as non-spatial data (attribute data) such as publicly announced land prices, land use plan, land transactions, and real estate brokers (figure 17). As for the topographical database, major data layers concerned with land management operations such as roads, buildings, and railroads produced in the National GIS project 22) The Korean government proceeded with the first phase construction of National Geographical Information System in 1995. With this project, a large portion of the nation was mapped in scales of 1:1,000 and 1:5,000.). Continuous-cadastral and rubber sheeted-cadastral databases used computerized files produced during the automation of cadastral maps sponsored by the Ministry of Government Administration and Home Affairs. The zoning database was built into the system using national land use plans, urban plans, and cultural assets kept by municipalities.

LMIS database creation

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Other than for spatial and non-spatial data, more than 80 different laws and regulations have been built as a database. These include land use-planning regulations and urban planning regulations. This information uses a spatial data infrastructure, which is the most widely used application for the administration of municipalities and civil affairs. The data model and contents of databases are standardized for the sharing of land information between different information systems to ensure that land databases can be used as spatial data infrastructures in municipalities.

5.2.5 A case for monitoring land speculation using LMIS

1) Introduction

Land speculation involves the buying, holding, and selling of real estate with the intent to profit from fluctuations in the price as opposed to buying the land for use or income (rent). Speculation or agoitage represents one of three market roles in western financial markets, which is distinct from hedging and arbitrage. In Korea, it happens frequently in undeveloped areas near large cities with new development plans, or in deteriorating industrial areas with redevelopment plans. This speculation occurs in specific areas and in relatively short periods of time because of the limited elasticity of the land supply market which is normally inflexible, and whose real and pseudo-demand are very high.

The problems with land speculation vary. The speculator holds the land until the price increases, which helps to cause land-wasting urban sprawl since developers often skip such areas thereby pushing the improvements farther away from the city. As American economist Henry George discovered nearly 140 years ago, land speculation has been the cause of almost every major business-cycle depression. Such downward trends begin when buyers pay too much for a parcel of land and cannot make a profit. As a result, the developers cannot repay their loans and the banks fail, thus sending the economy into a deep spiral. As it pertains to sustainable development, land speculation has been a hot issue especially in suburban areas of large Korean cities. Its negative effects impact not only the local and national economies, but also overall sustainable development.

The Korean government has a number of anti-speculative measures intended to stabilize land prices. A land and residential speculation zone is designated when prices

284 5. Indicators

in a given area rise significantly above the national average for two to three months. Land transactions in those areas are subject to higher capital gains taxes and stringent government regulations.

In fact, many years ago the Korean government developed three indices for designating land speculation zones. These include a land price index, a land transaction index and a sensitivity index. The central government has been trying to monitor and control land speculation using these three indices; however, slow data gathering systems and analogue business process have rendered these efforts inefficient. As a result, the central government has been using a land management information system to cope with issues including land speculation since 1998. Now, it is time to introduce a new method to efficiently and effectively detect land speculation within in real-time digital business environment, utilizing the land management information system. Such timely information will help decision makers take purposeful steps based on speedy and reliable information.

2) Land speculation phenomenon in Korea

Before discussing a spatial analysis methodology, we need to understand the land speculation phenomenon in terms of its correlation among spatial-temporal processes and patterns. Firstly, issuing frequent written confirmations of land use plans for interesting parcels increases since buyers need to know what kinds of zoning are being designated on the lot. Secondly, if the number of partition parcels increases, a speculator will realize its sales potential. Thirdly, the frequency of land transactions increases and the price is driven higher. These processes do not occur sequentially, but in temporally overlapping fashions, despite the fact that this event triggers other processes.

3) Data

Local governments regularly use automated record and land transaction management systems for taxation. Such data includes the land address, its intended use, and the full price. The data was joined with parcel maps and polygon shape files before the centroids of the parcels were created. Finally the data is rebuilt based on the number of observations by region and time interval (week).

4) System architecture

Land speculation monitoring systems consist of management, speculation, analytic,

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and backup systems. The management system is comprised of an analytic cycle, an analytic index, and the complete analytic area. Central Gov. MonitoringMonitoring Client Client Surveillance Constructing Policy in real time SDW Regional Gov. LandLand Management Management System System Business process Integrating Supporting Policy DB Collecting statistic data Alarm information Web server Application server

Local Gov. Local Real time&periodic backup LandLand administration administration SystemSystem Business Land administration process LMIS DB Civil service (Indicator)

System Architecture

Contour about Land transaction (Jeonju-si, Korea)

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Results of land speculation monitoring

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5.3 Final Conclusions and Policy Suggestions

5.3.1 Evaluation of Egyptian indicators and the monitoring system

Although numerous indicators have been developed by different institutes and government agencies, the basic indicator system has not properly worked yet, especially the one designed for housing and informal areas.

Consequently, it is very doubtful if the development of another extensive indicator system will be beneficial under the current circumstances, because most of the urban indicators are already suggested according to the international standards such as UNDP, World Bank and UNCHS, KRIHS housing report. Various indicators such as economic indicators or housing indicators are treated by numerous researchers and international organizations.

It is time to put the top priority of the Egyptian indicator system on implementing the practical data collection system at a regular interval through the legitimate official bodies. Implementing and collecting practical data should be precede devising customized indicator systems and specified indicators and indexes.

As an indication, Egypt is still experiencing a rapid urbanization. Even if progress of the urbanization starts to become slower than ever before, it is still faster than any other developed countries. The situation is worse in the rural cities, such as Tanta and Assuit, because these cities are surrounded by agricultural area, in which development activity in any matter is strongly prohibited. Rapid urbanization and strict administrative intervention lead to illegal land transaction, usually performed without proper registration. Some remarks that more than 90% of the urban land is not registered. Though this high rate is not an official record, it still has a significant importance compared to other indicators, which have been developed by different consultants at present, because, without a proper registration system, none of the indicators system and urban development project can be implemented.

1) Evaluation of Egyptian urban indicator system

󰋫 On going efforts to establish urban observatories with international cooperation As discussed before, the Egyptian government makes an unceasing effort to develop and advance the indicators and monitoring system. UNDP, World Bank and KRIHS

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already produced a notable outcome in terms of identifying and developing an indicators system. Based on the previous suggestions and policy alternatives, various successive efforts are being undertaken to develop a more efficient urban indicator system. Among these efforts, there is a recent joint project between GOPP and Canada Mortgage and Housing Corporation (CMHC). There is no need to mention that various international projects and political efforts are underway in order to detect critical urban issues and problems in more efficient ways. ∘ Basic data insufficient for developing an indicator system

However, although there has been a continuous effort to establish an efficient monitoring system by well-known international consultant groups and organizations and, as a result, a very extensive indicators system including housing indicators have been suggested, unfortunately, Egypt still lacks the very basic data which is the fundamental source for developing the indicators.

Based on several in-depth interviews with experts and consultants, we noticed that more than 90% of the land is not registered, and property tax for ‘unregistered land’ reaches even 20 ~ 30 percent of the land price. This unreasonably high property tax rate results in lowering the land registration rate. Again, the absence of proper registration system brings about unplanned informal settlements, difficult land access for urban redevelopment and shelter provision for low-income urban residents.

Deficient land registration system

Unclear land tenure Avoiding registration

Land access Increasing property tax rate

Development delay Decreasing Local property tax

Rigidity of Housing market Taking place of Informal settlements

Increasing land price and rent

Vicious circle of condition for indicators

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∘ Unclear indicator definition

Various data and statistics have been collected, however, since the definition of indicator is not clear, there is a discordance between identifying problems and measuring the progress of a certain policy implementation. For example, the range of informal population of Tanta City varies widely from 65,000 to 510,000 depending on different informal definitions.

Informal population of Tanta

Division Population Population according to according to Population Human the book the according to Developme "Informal Informal residential area Governorate cabinet -nt Guide Urban Information /IDSC Settlements Center in Egypt" 23,982 8,412 West "Mua'ahada" old road West and east Arida canal "Teraat alArida" in 35,440 8,412 Sigar

59,888 13,113 Kafr ElEgezi, Seket Tala, and sekat Sanaded First 208,400 Bahari area, highway, ElGeish expansion to District 29,378 40,278 petrol companies Seket ElNahal area to the north, and Kornish 36,732 7,683 Street east oils and soap company 27,669 2,669 Fateh, Ghandoor, Ghazal, and AlGalaa Antar Bin Shaddad expansion to Kornish, 20,418 750 Azhar St. Second 201,800 An area lying between Kornish, Sad ElAli, District 28,920 7,121 Abo Zahra, Galaa Sts. 27,620 5,809 East Saf canal, AlGhofran mosque 410,200 65,860 580,094 101,930 Total

2) Policy alternatives

(1) Strategic indicator management considering urban growth stages

The urbanization of Egypt has become stable, but it is still rapidly progressing compared to advanced countries. Based on the experience of European countries, the urban growth can be divided into three stages; urbanization, stabilization, and suburbanization. One may assert that Egyptian urban growth falls under the suburbanization stage with the increasing population in rural areas that are close to

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major cities. However, this type of population increase is rather a frog-leaping development due to the development restrictions inside the urban area than suburbanization. Korea went through similar situations. During 1972 and the late 1990s, the green belt surrounding the Seoul metropolitan area caused a serious frog-leaping development outside the Seoul metropolitan area.

One may assert that Egyptian cities are at the urbanization and stable stages rather than suburbanization stage since increasing rural population heavily relies upon development regulations to protect agricultural areas, which surround major cities.

In general, the urbanization stage is characterized by skyrocketing land price and rent. If an efficient 'problem detecting and rational planning system' is not accompanied with urban growth at the development stage, the growth results in informal settlements.

Urbanization rate and urban management stage

Egypt enters the urban growth stage after the urbanization stage, however urban growth is taking place at urban fringes through informal development because of rigorous land regulations. This occurs even in the inner city. Housing shortage, increasing rent and vacancy rate, disequilibrium of the housing market and increasing informal settlements, which are the typical characteristics of the urbanization stage, are still observed. However, considering the urban population increase, the total population increase will be mitigated and actual suburbanization will be taking place.

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Comparison with population annual growth rate

Decreasing urban population ultimately affects urban land demand and plays the key role in solving urban informality. However, if Egyptian cities enters the suburbanization stage without taking proper actions regarding the urban informal sector, major cities will suffer from inner-city informality such as ghetto. Thus, at this stage of urbanization, it is highly required to establish a proper indicator system and plan-based management especially for development activities and informal management. Later, urban management and quality of life and distribution should not be mainly ignored during the growth and stable stage respectively.

Indicators, which should be emphasized at this stage, are especially associated with securing housing and informal settlements monitoring. The housing indicator should be the first priority because, as collective goods, it provides the very basic service to urban residents. On the other hand, indicators for informal settlements are associated with the informal urban development and it is strongly recommendable to give a clear definition and collect data at regular intervals. Critical indicators at this stage for housing and informal settlements are the same as follows.

Durable structure proportion of permanent structures Housing price and rent-to-income Secure tenure Authorized housing Housing sector Tenure types Housing right Vacancy ratio Residential mobility Informal settlements Prime rental and occupancy costs Illegal, unauthorized and informal sector housing access to improved sanitation Informal sector Provision of sanitary Connection to services Access to electricity and gas

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(2) Improvement in the land registration system

The most serious urban problems of Egypt are housing and informal settlements. These two sectors are strongly related to the registration system. Without an innovative improvement in the registration system, land access for housing development and informal development is not possible. Moreover, for the future GIS-based information, the improvement of the land registration system should be emphasized most.

The three major land registration systems which have been developed are the deeds registration system, title registration system and private conveyance system. In the deeds registration system, the transfer document (the deed) itself is registered. The deed does not prove the ownership and the chain of ownership has to be traced back either by lawyers or land registration authority.

In the title registration system the certificate itself is the proof of ownership. This system was developed in the United Kingdom and exists in many Anglo-Saxon countries and countries under the influence. In many countries with this system, the land registration system is not complete either because it is not compulsory to register transfers or because it is only necessary to register when land is sold or subject to a long lease (e.g. England and Wales). The Torrens system is a variant of the title registration system developed in Australia. The advantage is that there are two certificates for each parcel and the original is kept at the land registry. An ownership transfer is merely endorsed on the back of both the original and duplicate. Variations of this system have been adopted in countries such as Thailand, Malaysia and Kenya.

The private conveyance system is the most common system in developing countries. It is based on the system that registers deeds. However, only about 10 to 20 per cent of the transactions are registered in Bangladesh and Pakistan, for example, with the remaining transactions conveyed either formally or informally with or without a person of legal training getting involved (Farvacque and McAuslan, 1992). A practice has been gradually developed in most societies whereby the land transaction should be written and that there should be a witness.

Like other developing countries, the process of registering deeds is often very time-consuming in Egypt. According to our interviews, most Egyptians are not in favorable of registration because it is highly time-consuming and there is no incentives.

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Thus, the mixed Egyptian registration system should be improved to become the "Title registration system" and the Egyptian government should legally protect the ownership, which is registered.

As 50 percent of all World Bank urbans between 1972 and 1982 have encountered additional costs and/or been delayed due to the inadequate cadastral and property tax systems, the first priority of the plan-based urban management should be the improvement of the modernized registration system.

What are then the benefits of a juridical cadastre (land registration system)? The juridical cadastre normally consists of two parts: one is a written record or register with information on each parcel, such as owner and the rights of the land, and the other includes a detailed description of the parcel in the form of a map or survey measurements. The latter is normally cross-referenced with the former (Dale and McLaughlin, 1988). When the records and descriptions are prepared, the land registration system should provide the following major benefits: ∘ Security of ownership and tenure rights. This is the most important impact. It reduces the number of land disputes which currently are a major problem in developing countries. The security of ownership also stimulates land development ∘ More efficient land transfers. The costs of delay in permit approval process is a serious constraint in most developing countries, and an efficient registration system makes transfers easier, less expensive and more secure ∘ Security of credit. The land title can be used as collateral for loans. This has a positive impact on the productivity of the land due to the release of major financial resources for investment inland ∘ Public control of land markets and intervention. Policies such as land redistribution and control over foreign land ownership are difficult to implement without a functioning land registration system ∘ Support for the land taxation system. The expenses for improving the cadastral system would be, in reality, quickly recovered by increased property tax revenues ∘ Improved land use and management. It can directly provide better information on land ownership and rights required for physical planning as well as the development of other planning tools such as information banks covering land use, land values, population, etc. It can also provide a tool to restrict certain land uses with a negative environmental impact

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∘ A land registration system based on parcels could lead to a more advanced land information system (see below).

As in Egypt, the problems which governments are faced with in developing countries can be divided into institutional, technical and economic problems, and lack of motivation. Institutional problems include shortage of skilled staff and lack of inter-organizational and inter-departmental coordination. Technical problems include the inefficiency and inflexibility of the existing system and the high standards regulated for surveys. Financial problems are incurred by high costs for the system. It has proven in many countries that the costs for improving the registration system can be recovered within a very short time span with revenues from land transfers (for example, in Thailand) and/or property taxes (Farvacque and McAuslan, 1992). Motivation problems often stem from the fact that registration of such a scarce and valuable commodity is a politically sensitive matter.

It might be recommendable that Egypt should use progressive systems. This is because, when a new cadastral/land registration system is introduced, or an old one is improved, it should be such that can be upgraded easily and readily adaptable although technically simple. Larsson (1991) suggests different types of simplifications which are available in a progressive system: ∘ Reduce the functions ∘ Establish the cadastre on a higher scale initially such as, for example, the block or ward unit. This would not include the registration of each parcel owner ∘ Use simpler methods of delimitation and demarcation. There exists even an example of a successful system where dwellings were identified on aerial photos; ∘ Reduce the standard of accuracy for land registration surveys ∘ Minimize field work. Use existing maps and records as much as possible; ∘ Establish provisional registers ∘ Selectivity. Selection of land units can be based either on registration of individual landowners or an area. The system may or may not include a compulsory registration.

However, before setting up a progressive system, it is necessary to assess the existing system and define the objectives of the improvement. It is very often necessary to improve the institutional arrangements and strengthen the technical skills of the staff. It may be also worthwhile to consider introducing some incentives for

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individuals to register their land. The incentives may include, for example, inexpensive registration fees, introduction of grace periods from property taxation and legal assistance to low-income groups. It could be also desirable that the national control board for banks provides stricter rules so that a mortgage could be provided only for the land which is registered.

In this study, there has been an extensive discussion on the responsibilities of the central, and municipal governments. The land registration system is normally the responsibility of either the central or regional governments. The major arguments for this approach, an island registration system, normally, is very cost-intensive and that there are major cost savings to be gained by operating it on a larger scale. However, certain issues such as data collection and data/record management could be decentralized.

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Project Manager Park, Eun Gwan Research Fellow Kim, Hyun Sik Senior Research F. Researcher Chae, Mie Oak Senior Research F. Kim, Geun Yong Research Fellow Jung, Hee Nam Research Fellow Min, Beum Sik Research Fellow Jung, IL Hoon Research Fellow Lee, Seung IL Research Fellow Kim, Mi Jeong Associate Researcher Kang, Ho Je Associate Researcher Lee, Jae Won Associate Researcher Ahn, Yong Jin Assistant Researcher Lee, Jae Suck Assistant Researcher Song, Ha Seung Assistant Researcher Lee, Jeong Soo Assistant Researcher Cho, Song Chan Assistant Researcher Kim, Hyung Jin Assistant Researcher Han, Jae IL Assistant Researcher Choi, Young Mi Associate Specialist Research Advisor Jin, Young Hwan Senior Research F. Park, Jae Gil Senior Research F. Moon, Jeong Ho Research Fellow Lee, Jong Yeol Research Fellow

G&S

Project Manager Shin, Geun Chang President Researcher Kim, Hyung Mook Engineer

Egyptian Consultants

Project Manager Sawsan Bakr Faculty of Cairo University

Researcher Abd El Wahab Helmy Institutional Regulatory Hassanin Abou Zeid Informal Area Development Sawsan Bakr Urban Indicators Samy Amer GIS & Statistical Analysis Wafaa Amer New Community Development Mostafa Madbouli Housing and Finance Ahmed El Kholei Environmental Management

General Organization Physical Planning

Head Quarter Hazem EL Kouedi Chairman Fahima EL Shahed General Director

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