U R B A N M ANAGEMENT akzente special 17

Low Cost Housing:

vised form, the new masterplan and urban develop-
ment strategy provide a basis for sustainable urban
development. The definition of strategic develop-
ment projects marks a break with the earlier plan-
ning instruments and regulations with their purely Major order for
restrictive and regulatory focus. GTZ advisers give
priority to ensuring that large parts of the population
and the private sector are participating. housing construction
The Mercato – a test case

In the Mercato the staff of the Ethiopian-German pro-

ject for sustainable urban development are currently
testing how a forward-looking city management
based on participation of the city population, private
sector and state institutions can function. GTZ advis-
ers act as intermediaries, bringing actors to a round
table which they would previously have avoided at
all costs: government agency staff, tradespeople,
inhabitants, NGOs and international institutions.
Together, they are seeking to overcome the mistrust
between them and guide the development of the
city district. To clear the way for the necessary infra-
structure and investment, titles and land use rights
are one of the major issues to clarify.
The “Mercato Millennium Development Task Force”,
created with GTZ assistance, is bring together all the
political, cultural and economic forces of the Merca-
to. Its goal is to preserve and develop the Mercato.
The Task Force members hold discussions on the
basis of a local development plan which the associa-
tions of merchants and inhabitants have formulated
jointly and which reflects the detail of the urban devel-
opment strategy. The Bauhausstiftung in Dessau
provided expert input to the plan. The dialogue be-
tween the actors has produced its first results. The
Mercato will have 250 security staff in future, and
cleaning staff will improve cleanliness. Every stall-
holder will pay a monthly contribution for these ser-
vices. Other priorities are refuse disposal and construc-
tion and maintenance of sanitary facilities and foot-
paths. Wherever possible, development partnerships
with the private sector will in future take over appro-
priate responsibilities. “The new developments in the
Mercato make it possible for all those involved to
accumulate experience and break down mistrust,”
Gerhard Mai notes, adding: “People here will gradually
recognise that the work of the new government is
increasing legal and planning security, that they are
participating in the change, and that transparency is
increasing.”
There is still much to be done for open and trans-
parent cooperation. The city administration must
deliver on its promises to speed up the expansion of
the infrastructure. New mechanisms for urban reha-
bilitation must be formulated, discussed and applied.
In some cases it will be necessary to rezone areas,
relocate people, compensate them and introduce
new forms of living and working. The process requires
patience and willingness on all sides to abandon out-
dated hierarchical behaviour patterns and adopt
forms based on dialogue, pluralism and democracy. t
The author writes for the Seegrund press agency in Kreuzlingen,
Switzerland.
he municipal administration of Addis Ababa has commissioned
T GTZ to build at least 10,000 homes a year. Over 8,000 apart-
ments are currently under construction or already completed at
19 building sites in the Ethiopian capital. Last year the Ethiopian premier
Meles Zenawi formally opened the first pilot project in the presence of
GTZ Managing Director Wolfgang Schmitt. The Ethiopian government is
now considering whether the GTZ low-cost housing technology is suit-
able for constructing all public buildings throughout the country.
The opening for the major order came from a regional technical co-
operation component using simple technology to promote housing con-
struction (low cost housing) in Tigray Province. Arkebe Oqubay, mayor
of Addis Ababa, was convinced by the concept. Ruth Erlbeck, head of
the GTZ team in the project: “We were able to offer construction prices
up to 50 per cent below usual rates.”
The major order from the city of Addis Ababa is supplementing the
simple technology housing construction project, which is assisted by
GTZ on behalf of the German Federal Ministry for Economic
Cooperation and Development (BMZ). The low cost housing project is
advising the municipal administration on planning and implementing
programmes for low cost housing. The project is also assisting basic train-
ing and upgrading for local personnel and promoting small and medium
sized construction companies. GTZ International Services, which is res-
ponsible for business with clients other than the German Federal
Government, is handling the technical and financial side of the construc-
tion projects in Addis Ababa. The main goal is to solve the extreme shor-
tage of housing, improve construction quality and at the same time
create jobs.
“Low cost housing technology is all about cheap, good quality and
sustainable construction,” is how Ralph Trosse, technical consultant on
the project, explains it, adding, “Anybody who wants to move in must
buy the home and make a down payment of 30 per cent of the con-
struction costs.” The rest is financed through housing loans with a term
of 15 years. The municipal administration provides prefinancing. Ruth
Erlbeck: “We are trying in this way to promote self-responsibility and
ownership among the occupants. Both have a positive impact on repairs,
maintenance and caring for the installations.” t