Slum Upgrading Using Participatory and Inclusive Land Readjustment (PILaR): Defining The Rules Of The Game - Expert Group Meeting Nairobi, 3rd and 4th of December, 2013

1. TITLE: Mr.
NAME: Erik Vergel-Tovar
POSITION: PhD Candidate in City and Regional Planning
University of North Carolina at Chapel Hill, US
EMAIL: evergel@live.unc.edu
‘SLUM UPGRADING USING PARTICIPATORY AND INCLUSIVE LAND READJUSTMENT:
DEFINING THE RULES OF THE GAME’
EXPERT GROUP MEETING (EGM)
Nairobi, 3rd and 4th of December, 2013.

2. Outline
• Land Readjustment LR in Colombia
• Policy Paper (CONPES) Slum upgrading
Colombia 2009
• LR Case Study: Chía (Colombia)
• Settlements upgrading and economic analysis:
experiences in Latin America
• LR – settlements upgrading propositions

3. 1900 1920 1940 1945 1955 1965 1980 1990 1997 2010 2019
Stage I - Experimentation Stage II - Implementation Stage III - Comprehensive
1917
Plan for the
“Future City”
1920
Influence from the City
Planning USA UK - Barcelona
1945
International Experts Consultancy
Le Corbusier, Sert Wiener
1950
International Agencies – The Development
Plan
1950 - 1997
“Urbanism Code” Effects
1947
Law 88
Regulator
Plan
1989
Urban
Reform
Law
1997
Territorial
Development
Law
POT
2005
Colombia
2019
Vision
Livable
Cities
2010 - 2014
Coordination
Water &
Sanitation
Transportation
2005
1978
Organic
Law 61
Urban
Developme
nt
Source: Adapted from Pinto (2009)
Land Readjustment Tool
Land Readjustment (LR) - Colombia

4. Land Readjustment (LR) - Colombia
Why?
What?
How?
POLICIES
OBJECTIVES
STRATEGIES
GENERAL
URBAN
RURAL
INSTRUMENTS
PROGRAMS
PROJECTS
LONG TERM
MEDIUM TERM
SHORT TERM
12 YEARS
8 YEARS
4 YEARS
Law 388 - 1997

5. Land Readjustment (LR) - Colombia
• Social function of the property
• Public (general) interest prevails (private interest)
• Fair distribution of loads (costs) and benefits
• Public function of the urbanism
• Democratic Participation
“In order to complement economic and social
planning with spatial realm”
Planning Principles – Law 388/97

6. Land Readjustment (LR) - Colombia
Law 388 /1997
Source: Ministry of Housing of Colombia and DNP (2009)
MASTER
PLAN
(POT)
Main city planning instrument
Land use planning at the local level – (Decentralization)
Land Use Planning Main Instrument - POT
LAND
URBAN LAND – density - infrastructure - public services
URBAN EXPANSION LAND – future urban growth
RURAL LAND – agriculture – protected areas - natural resources
SUB-URBAN LAND – rural land - urban and rural mixed use
PROTECTION LAND – urbanization is prohibited
CLASIFICATION

7. Land Readjustment (LR) - Colombia
Application of LR method (Law 388/97)
URBAN LAND
URBAN EXPANSION LAND
Partial Plan
PP Urban
Expansion
Land development type*:
Development
Land Treatment:
Renewal
Land Development type*: Redevelopment
• Partial Plans (land management instruments) in which LR method has been
applied (equal distribution of loads -costs and benefits).
• Land “development types”*: renewal, redevelopment and expansion
Partial Plan
PP Urban
Renewal
* “treatment” in the land use planning framework of Colombia

8. Land Readjustment (LR) - Colombia
Partial Plan PP Urban
Expansion
Partial Plan PP Urban
Renewal
CPIU 4
CPIU 1 CPIU 2
CPIU 3
CPIU 1
2
3
4
• Expansion, redevelopment and renewal within City Planning-
Intervention Units (CPIU).
• Slum upgrading?
Partial Plan PP Urban
Redevelopment
CPIU 1
LR – method for fair distribution of loads and benefits
Application of LR method (Law 388/97)

9. Land Readjustment (LR) - Colombia
*Identification, formulation or implementation stages
Source: DNP (2011)
Bogota 7,243,698 384 18,849 36 35
Medellin 2,281,085 107 21,362 27 17
Cali 2,183,042 121 18,057 15 8
Barranquilla 1,174,971 86 13,717 2 2
Cartagena 888,012 78 11,399 1
Cucuta 591,530 59 9,987 2 3
Bucaramanga 516,005 49 10,557 2
Pereira 381,153 31 12,371 26 8
Manizales 360,020 35 10,292 2
Pasto 333,123 25 13,378 2 1
Neiva 307,508 45 6,870 1
Armenia 279,500 32 8,723 1 2
Popayan 235,785 27 8,653 2 1
Itagui 226,713 12 18,629 1
Barrancabermeja 172,384 24 7,138 4
Chia 83,710 76 1,046 1 0
Total 17,258,239 1,191 11,939 114 88
City
# Partial Plans
(approved 2010)
Urban Population
(2009)
Urban land area
(km2)
Density
(pop/km2)
## Partial Plans
Urban renewal* 2010
Partial Plans in Colombia
None for slum upgrading

10. Land Readjustment (LR) - Colombia
1. LR method and Partial Plans. Adaptation of LR method in
Colombia through City Planning Intervention Units (CPIU).
2. Slum upgrading and Partial Plans. There is not regulation
framework for slum upgrading measures in Partial Plans.
3. Funding. Japanese LR counts on national subsidies but this is not
the case in Colombia.
4. LR and land development types. LR has been a useful method
for development but more complex for renewal.
5. Self-financing. Japanese approach (reserve land); Colombian
approach (density bonuses, additional floor area ratio (FAR), land
value increments and provision of facilities).

11. Outline
• Land Readjustment LR in Colombia
• Policy Paper (CONPES) Slum upgrading
Colombia 2009
• LR Case Study: Chía (Colombia)
• Settlements upgrading and economic analysis:
experiences in Latin America
• LR – settlements upgrading propositions

12. International ContextColombia
1970s
1980s
1990s
2000s
Negligence
Eviction
Self-help “in situ”
Habitat Agenda 1996
Capacity Building Strategy
MDG Goal 7 Target 7D
Best practices: participatory upgrading
City Development Strategy – Cities Alliance
PRIMED Medellín
Ley 9 – Urban Reform
Law 388 /97 (Partial Plans – LR)
CONPES 3305 Urban Policy
MDG Report Colombia
Law 1151 PND 2006-2010
CONPES 2808 Urban Policy
CONPES 2729 Housing Policy
CONPES 2326 Human Settlements
CONPES 3604 Slum Upgrading
2010s
Source: Adapted from CONPES 3604 (2009)
CONPES 3604 Slum Upgrading
Strategy - Colombia
Impact evaluation Slum Upgrading
Redevelopment – Slum Upgrading
LR – PILaR – GLTN – UN_HABITAT

13. CONPES 3604 Slum Upgrading
Strategy - Colombia
Housing shortage – Colombia
Source: Census data, DANE (1993, 2005)
* Census data attributes: services, structure, overcrowding conditions, kitchen condition
Lack of urban
services* for
897,543
households
(81,4%).
1,341,730 1,185,607
1,093,077 1,031,256
2,940,183
5,993,484
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
1993 2005
54,7 %
20,3 %
25 %
73 %
12,6 %
14,4 %
8’210.347
5’374.990
13
Qualitative shortage Quantitative shortage

14. CONPES 3604 Policy Paper Slum
Upgrading Strategy - ColombiaMASTERPLAN-POT
LOCALDEVELOPMENTPLAN
PROGRAM
Type of
intervention
UPGRADING
High risk areas
No mitigation
RESETLEMEN
TS
Studies
•Public services
feasibility
•Public space
feasibility
•Legal procedures
ToolsIssues
•Partial Plan
•CPIU
•LR
•Slum
upgrading
•Action Plan
•Resettlement
Plan
•Norm
•Options
•Priority
•Financing
Agency
Slum
Upgrading
Program
Resettlement
Program
3. MANAGEMENT
2. PLANNING
Zoning (risks
and hazards)
Risk
and
hazards
Studies
Manager
Operators
4. IMPLEMENTATION
Socioeconomic
characteristics
Needs assessment
COMMUNITY PARTICIPATION
1. SELECTION
•Public services
feasibility and
housing supply
options
Areas suitable
for upgrading
Manager
Operators
•Norm
•Options
•Priority
•Financing
LR
Source: Adapted from CONPES 3604 (2009)

15. CONPES 3604 Policy Paper Slum
Upgrading Strategy - Colombia
Upgrading measures public space
(built environment)
Upgrading measures private
space (Housing)
Socioeconomic dimension (across dimensions)
1. Risk areas
2. Regularization (legal procedures)
3. Public services (W&S)
4. Environmentally protected areas
mitigation
5. Accessibility and transportation
6. Public spaces and facilities
1. Land titling
2. Housing improvements
3. Redevelopment (new housing units):
• Terraces (if feasible)
• Open areas
• Land Readjustment
1. Community participation
2. Institutional strengthening
3. Public safety
4. Income generation activities 15
Land Readjustment
Source: Adapted from CONPES 3604 (2009)

16. CONPES 3604 Policy Paper Slum
Upgrading Strategy - Colombia
$3,400.00
$3,600.00
$3,800.00
$4,000.00
$4,200.00
$4,400.00
$4,600.00
Leticia Florencia Buenaventura Barrancabermeja Apartadó Cúcuta
US$ per Household
US$3,700
192
HH
338
HH
400
HH
500
HH
338
HH
114
HH
Source: Adapted from CONPES 3604 (2009)
6 Slum upgrading projects (IADB – Ministry of Housing)

17. Outline
• Land Readjustment LR in Colombia
• Policy Paper (CONPES) Slum upgrading
Colombia 2009
• LR Case Study: Chía (Colombia)
• Settlements upgrading and economic analysis:
experiences in Latin America
• LR – settlements upgrading propositions

18. LR case study – Chía (Colombia)
Municipality of Chia (at the north of Bogota)
Partial Plan Mercedes de Calahorra (MC)
Urban expansion LR project
Source: Google Earth (2013) City planning department of Chia (2012)

19. LR case study – Chía (Colombia)
LR project (2007) LR Project (2010)
Source: Google Earth (2013) City planning department of Chia (2012)
• Issue to be addressed: housing shortage and scarcity of serviced land
• LR type: urban expansion (sprawl prevention) planned urban growth

20. 2000 2003 2005 2007 2009 20132011
LR case study – Chía (Colombia)
• 57 Land parcels with a total area of
152,508 square meters (15 hectares)
• 51 landowners (before LR)
• 89% of landowners have participated in
the project
• 39% of land contribution for roads and
public spaces
7 Years (approximately)
Formulation and Negotiation with landowners
$26.32
$71.05
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
Before After
Average land price
(before-after LR - USD$ per sq. meter)
Source: Partial Plan MC technical documents, city planning department of Chia and interviews (2009, 2012)
5 Years + (on going)
Implementation: Roads-infrastructure-facilities
Land development
Replotting
2020
LR Completion
20 years urban expansion project

21. LR Case Study – Chía (Colombia)
Source: DNP (2013)
Project General Data
Implementation agency: Municipality of Chia
Built-up area (after LR): 0.36
Floor area ratio FAR (LR): 1.27 (“self-financing”)
Population density: 374 hab./ha (before LR
14inhab/ha)
No reserved land (for self-financing)
Development intensity (after LR): 116,300 m²
Public space index: 9,12 m²/hab.
Estimated project cost: USD$ 50 million
Municipality investment: USD$ 1,66 million
Source: Partial Plan MC technical documents, city planning department of Chia and interviews (2009, 2012)

22. LR Case Study – Chía (Colombia)
Public space & Facilities LR Land use
Land
Development
(Blocks)
Public space
axis
New roads
Facilities
Commercial
Residential
Mixed
Source: Partial Plan MC technical documents, city planning department of Chia and interviews (2009, 2012)

23. LR Case Study – Chía (Colombia)
Distribution of costs and benefits
* Assumption: approximately 20% of the costs will be paid by all inhabitants of the municipality.
Source: Partial Plan MC technical documents, city planning department of Chia and interviews (2009, 2012)
General costs (City)
- Water and sanitation infrastructure
- Main roads
Local costs (LR project)
- Water and sanitation piped connections for land developments
- Public services connections for land developments
- Secondary roads (including pedestrians streets and access to facilities)
Approximately 50% of additional square meters are for Affordable Housing developments
Item USD$
Estimated selling price (real estate property) 49,256,227.09
Estimated selling price serviced land 8,357,209.91
Urban development costs* 3,433,999.96
Land with higher development intensity (benefits) 74.56
Cost per square meter 24.24
Benefits per square meter (without costs) 59.00
Benefits per square meter (discounting the costs) 33.99

24. Outline
• Land Readjustment LR in Colombia
• Policy Paper (CONPES) Slum upgrading
Colombia 2009
• LR Case Study: Chía (Colombia)
• Settlements upgrading and economic
analysis: experiences in Latin America
• LR – settlements upgrading propositions

25. Settlements Upgrading and Economic
Analysis – Latin America
Interamerican Development Bank (IADB) applying
economic analysis to slum upgrading projects
(Colombia and Ecuador)
• Assumption: slum upgrading implies higher costs
than new affordable housing developments
• Economic analysis: costs of slum upgrading
should not be higher than the benefits they bring
to society
Source: Foundations of Sustainability in Building Cities, Rojas, IADB (2010)

26. Settlements Upgrading and Economic
Analysis – Latin America
Four techniques to estimate the alternatives for
slum upgrading interventions (goal: most
efficient):
1. Minimum cost
2. Cost-effectiveness
3. Weighted cost effectiveness
4. Cost benefit analysis (CBA)
Source: Foundations of Sustainability in Building Cities, Rojas, IADB (2010)

27. Settlements Upgrading and Economic
Analysis – Latin America
Costs Benefits
• Factors:
- Incremental costs (construction,
operation, maintenance)
- Negative externalities
- Sunken costs (excluded)
• Shadow prices (market prices)
•
• Opportunity cost
• Government interventions
• Economic ≠ Financial (property
tax)
• Good and services provided by
the project (privately consumed)
• More complex valuation
techniques (public and
semi=public goods)
• Hedonic price models, surveys,
willingness to pay
Source: Foundations of Sustainability in Building Cities, Rojas, IADB (2010)

28. Settlements Upgrading and Economic
Analysis – Latin America
Monitoring indicators – settlements upgrading programs
Source: Foundations of Sustainability in Building Cities, Rojas, IADB (2010)
Economic benefits Logical framework indicators Description
Incidence of diarrhoeic illnesses Reduced by 15% at the end of the
project
Effective utilisationof basic
services
80% of households in the
intervention area are connected to the
sewerage network and using it
Service provision 15 months of implementation:
- 9,800m drinking water
- 10,200m of sewage connection
- 1,504 water, sanitation and
eletricicty connections
Avoided costs from the reduced
incidence of diarrhoeic illness
Economic benefits Logical framework indicators Description
Change in behavior 80% of the population agrees that the
parks are a good place for recreation
and make regular use of them
Acceptance of the service 80% of the population finds that the
parks are a good recreation option
Provision pf the service or good After 15 months of implementation:
one multi-purpose park has been
Reduced costs of accesing
recreation areas and reduced
expenses in pest control in
community areas
Colombia
Quito
(Ecuador)

29. Outline
• Land Readjustment LR in Colombia
• Policy Paper (CONPES) Slum upgrading
Colombia 2009
• LR Case Study: Chía (Colombia)
• Settlements upgrading and economic analysis:
experiences in Latin America
• LR – settlements upgrading propositions

30. LR settlements upgrading propositions
Propositions for the EGM Workshop:
1. Legal framework: LR for slum upgrading
requires the support from land use planning
regulations.
2. Landownership – property rights issues:
LR could be applied in slum upgrading
projects in order to facilitate regularization
processes (public land).

31. LR settlements upgrading propositions
Propositions for the EGM Workshop:
3. Upgrading and resettlement: LR method
could reduce vulnerability (environmental
risks and hazards) through replotting
measures
4. Public and private realms: LR can provide
the framework for interventions on public and
private areas (after regularization measures)

32. LR settlements upgrading propositions
Propositions for the EGM Workshop:
5. Economic analysis: LR method may provide
a framework to define the costs and benefits
at different levels (city – neighborhood)
6. Costs and benefits: LR method may be a
useful approach to estimate costs and benefits
of upgrading measures (private and public
realms)

33. LR settlements upgrading propositions
Propositions for the EGM Workshop:
7. Self-financings: LR method in settlements upgrading may provide
opportunities for self-financing but there are issues that need to be
addressed:
- Reserved land (location – property rights – market forces)
- Redevelopment & Affordable Housing (multifamily
developments vs. single family attached – density – land use
mixed)
- Cross subsidies (national and local government subsidies –
upfront costs)
- Value capture (legal framework – property rights – market
forces)
8. Development and redevelopment: LR method may provide the
framework needed for redevelopment processes in settlements
upgrading (Mumbai, India)

34. Thank you!
Looking forward to working with all of
you in this Workshop
Erik Vergel-Tovar
PhD Candidate in City and Regional Planning
University of North Carolina at Chapel Hill
EE.UU.
evergel@live.unc.edu