IMPROVING THE ROLE OF INFORMAL LAND DEVELOPERS IN URBAN DEVELOPMENT OF GREATER KATHMANDU

Abstract

Kathmandu Valley is a rapidly urbanizing capital region. The urban population 1 million in 200 I is growing at the rate of 5.81 % per year. As a result land plot demand in the valley is increasing. Main causes of demand pressure are migrants from outside, household member numbers decreasing in valley, and people living in rent. ie 54%. These rent living people are the most potential buyer of informal land transaction. Huge money from remittance is invested in land. Formal private companies and government has supplied only less than 380 ha lands in more than one decade. It is very less significant quantity compared to the demand of l 80ha per year (table 8). This means it is obvious that the rest of the demands are fulfilled by the informal sector. However there is lack of adequate knowledge about their performance. This study has made an attempt to study informal land developers. This study was based on checklist interview with the land developers at the sites and their document review. During discussion they have mentioned the procedure, difficulties and suggestion to improve the work. In procedure, location choosing, document verification, rate negotiation, advance payment. subdivision and selling advertisement are main steps. Risk of advance payment without legal status is the main procedural problem. There has some technical weakness in subdivision quality. Plots without basic infrastructure demands more investment to rectify the problems. The work is more profit motive in short period. There exist financial and legal problems in the business. Some legal problems in land development are, impracticable land ceiling, private sector have no right to. land acquisition, no public private partnership land development approach, no legal encouragement to real state business and no legal status of advance payment and agreement before transferring ownership. No institutional financial support to developers. Data recording, filing and map updating is poor. Weak coordination between line agencies, complicated land administration and registration, vacant land issues, encouragement and facility not provided to the land developers. Improvement of informal land development can achieve through clear government policy, simplification of land administration, institutional finance support, training, awareness and regular monitoring. Periodic land market survey and dissemination of information is necessary to minimize the speculation. Engineer's input in subdivision planning and accountability helps' to improve the product. So, timely monitoring mechanism is essential.