Pillars

Notes

1. MSE Development is part of an overall GOE policy target that aims to raise manufacturing as a percentage of GDP from the current 4%. The main implementing agency is Ministry of Trade and Industry. MUDHCo’s responsibility for urban based MSE development is implemented partly through Federal Micro and Small Enterprise Development Agency (FeMSEDA) which falls under the Ministry’s authority and partly through the urban local governments (ULGs) who register MSEs and provide serviced land and buildings to support MSEs.
2. It is proposed to link MSE, small and medium enterprise development more clearly with Ministry of Trade and Industry in order to gain benefits from linkages with the larger industrial sectors (leather, etc.).
3. Pillar 2 is the only pillar for which the main federal implementing organ is not MUDHCo. It is the FeMSEDA which has regional and local operating and organizational capacity.

Background: The launch of the urban based MSE initiative took place in the second national plan[1] (2005/06-2009/10) through the Ministry’s Urban Development Package that integrated five initiatives: Pillar 1: Micro and Small Enterprise Development Programme; Pillar 2: Integrated Housing Development Programme; Pillar 3: Youth Development Programme, Pillar 4: Development of Land, Infrastructure and Services; and Pillar 5: Rural-Urban and Urban-Urban Linkages. The Urban Development Package was implemented in parallel with the Urban Good Governance Package that contained seven sub-programs. The MSE pillar was further developed and extended during GTP I and integrated with many other initiatives to strengthen, fund, support and transition successful MSEs into small, medium and larger enterprises. This process now moves into a third phase in GTP2 as a substantial contribution to economic transformation.

The Vision for Micro and Small Enterprise Development is to create “a competitive and effective foundation for industrial development.”

The main objectives of MSE development are:

• Through the creation of job opportunities, to bring equal opportunities for development, improving incomes and reducing poverty within society;
• To enable the MSE sector to achieve competence, facilitate economic growth and lay the foundation for development of industry; and
• To expand MSE development in urban areas by creating and enabling investment in MSE development.

Linkages: Pillar 2 is closely linked to: Pillar 1: Transformational Leadership Development and Pillar 3 Urban Development Good Governance and Capacity Building that will provide the policies, laws, regulations, resources, systems and human resource capacities to support MSE development. These include the M&E and MIS systems to monitor, evaluate and report on performance and achievement of benchmarked targets. Pillar 4. Urban Planning, Land Development and Management is critical in providing the spatial planning framework – at national, regional and city levels – and the serviced land to meet demand for micro, small, medium and large industry including associated housing, commercial, recreational and primary infrastructure.

[1]             Plan for Accelerated and Sustained Development to End Poverty

Background: The current regional and federal proclamations for city governments, including Addis Ababa and Dire Dawa, were enacted more than 10 years ago. Some improvements to the legal frameworks are identified and needed. The effective legal frameworks for management of urban centers cannot succeed without: a) standards for delivery of services that are linked to achievement of middle income country status and which are adopted and implemented by cities; and b) the capacity to produce university graduates and TVET technicians that build and maintain the quantity and quality of human resources involved in urban development, housing and the construction industry. Current quality and quantity[1] are identified as weaknesses in PASDEP and GTP I implementation.

Objective: An effective and efficient policy, legal and regulatory framework for good governance of cities and town together with the quality and quantity of human resources, provided on a sustainable basis, to ensure prosperous urban centers that achieve citizens’ satisfaction, good governance and economic and social development targets.

Goals:

• All cities with populations of 20,000+ adopt and implement service delivery standards linked to benchmarked performance targets for urban development and housing services;
• Current and future demand for all categories and levels of (federal, regional and local) ULG, housing and construction industry human resources is met by a consistent and sustainable supply of professionals and technicians (university graduate (BSc, Masters & PhD) and vocational (TVET)), plus continuous professional development.
• Cities have the legal frameworks and organizational structure that are fully effective and efficient in ensuring citizens’ satisfaction, good governance and growth (economic and social development).
• Benchmarked performance indicators are identified that support a Prosperity Index based on identifying citizens’ satisfaction, good governance and economic / social development linked to achievement of middle income country status.

Linkages: Pillar 3, Project 3.1.2 which is implemented by the MUDHCo Policy and Program Bureau will incorporate the services standards developed in Project 3.1.1 and the benchmarking system developed by the technical assistance consultant contracted by MUDHCo in Project 3.1.3. The technical assistance consultant contracted in Project 3.1.3 will investigate and recommend urban local governments’ financial management and mobilization systems that overlap with Pillar 10, Projects 10.1.1, 10.1.2 and 10.1.3. Project 3.1.2 that addresses training and education at university and TVET levels, generally and for GTP2 implementation specifically, is closely linked to Project 1.1.1 the establishment of an Urban Leadership Center of Excellence but will until the ULCoE is established be the main implementation means for capacity building.

[1]             Rapid staff turnover leading to lack of organizational continuity, together with quality and quantity (numbers by discipline/profession) are identified as human resource gaps.

Background: Much work has been done during the previous ten years to establish the policy and legal framework[1] and establish a national spatial planning framework[2]. A new master plan for Addis Ababa is being prepared. Many small, medium and large cities have city-wide spatial plans in place. Much work remains to be done to put in place a Federal Urban Planning Institute, at city level urban land development and urban township development agencies and the cadaster development and land titling agencies. While preparatory work has been done in GTP I, much implementation will take place in GTP2 and be scaled up in GTP2I.

Objective: That all of Ethiopia’s urban centers have physical development plans that ensure they provide a satisfactory living and working environment, the quantity and quality of land with infrastructure and services for all uses that meet demand and the spatial planning and land titling and delivery policies, laws and regulations support thriving, dynamic development in the public interest and achieve GOE benchmarked targets.

Goals:

• To build the capacity of planning institutions and organizations, including capability of staff, so as to ensure that all urban centers have up-to-date and effective spatial plans in place, as required by Urban Planning Proclamations and regulation;
• To ensure that all governmental levels – federal, regional and local urban government – have effective and up to date urban spatial plans, as are designated by proclamation and regulation (cluster, city, neighborhood and urban design);
• To establish a modern and effective system of urban land development and administration by establishing workable systems to realize development, growth and good governance of cities;
• To establish a sample based national and regional slum coverage study and to prepare the legal frameworks and strategies necessary to reduce slum coverage to 30%, ether by renewal or upgrading interventions;
• To ensure the sustainability of land supply in urban expansion areas;
• To improve the livelihood of the farmers who will be expropriated as a result of the urban expansion; and
• To develop an integrated land administration system including: production of digitized base maps, land adjudication, regularization and consolidation, establishment of urban real property registration, creation and maintenance of an integrated urban land information system, creation of a standard city address system, demarcation of cities’ administrative boundaries; under the administrative jurisdiction of cities and oversight of Regional authorities and the Federal Real Property Registration and Information Agency

Linkages: Pillar 4 is linked to Pillars 1, 3 and 10 which provide the institutional and organizational capacity and resources (human and financial) to plan cities, deliver serviced land and support the real property market transactions that involve public and private investments in urban development. Pillar 5. Housing development requires planning and serviced land.

[1]             Urban Planning Proclamation 574/2008.

[2]             National Urban Development Spatial Plan, 2015.

Background: The launch of the urban based housing initiative took place in the second national plan[1] (2005/06-2009/10) through the Ministry’s Urban Development Package that integrated five initiatives: Pillar 1: Micro and Small Enterprise Development Programme; Pillar 2: Integrated Housing Development Programme; Pillar 3: Youth Development Programme, Pillar 4: Development of Land, Infrastructure and Services; and Pillar 5: Rural-Urban and Urban-Urban Linkages. The Urban Development Package was implemented in parallel with the Urban Good Governance Package that contained seven sub-programs. The Integrated Housing Development Programme was further developed and extended during GTP I, particularly in Addis Ababa. This process now moves into a third phase in GTP2 as a substantial contribution to economic transformation

Objective: The housing development and administration pillar is a key investment area with social and economic aspects, particularly contributing to job creation and prosperity

Goals:

• Urban housing: To construct 750,000 housing units, create 600,000 job opportunities, upgrade the existing 50% standardized urban housing to 70%, promote a saving culture and strengthen the construction sector;
• Rural housing: to construct 1.7 million housing units in 17,000 rural development centers, create 4,200 micro and small enterprises and establish a system for 8,400 extension agents who participate and support in the rural housing development projects.
• Housing administration: Provide the supporting institutional and organizational framework, capacities, capabilities, systems, procedures and guidelines, and human and financial resources that ensures that housing supply is managed and resourced during development and operation phases so as to meet housing needs

Linkages: Pillar 5 is linked to Pillars 1, 3 and 10 which provide the institutional and organizational capacity and resources (human and financial) to plan cities, deliver serviced land and support the real property market transactions that involve public and private investments in urban development. Pillar 4. Provides the planning and serviced land for housing construction.

[1]             Plan for Accelerated and Sustained Development to End Poverty

Background: During previous planning periods (2005/06-2014/15) the Ministry’s main focus on urban infrastructure and services has been: a) to mobilize financial resources - through (federal and regional) fiscal transfers and own resources - for investment in infrastructure and services[1]; b) to develop urban infrastructure and services planning, development and operation and maintenance systems. In the Capacity Building for Decentralized Service Delivery Project (2004-2008) Infrastructure inventories, assessments and five year capital investment plans were developed for 18 cities. Since then these have been refined as Infrastructure Asset Management Plans with integrated capital investment, operation and maintenance and revenue enhancement plans. GTP2 will build on these two initiatives; start with an assessment of existing urban infrastructure standards, the standards to be achieved, by different categories of cities by 2020 and 2025, and identify the infrastructure targets to be achieved and resource envelope required.

Objective: To develop and maintain urban public infrastructure and services in all categories of urban and rural development centers that meet standards and targets (coverage, quality, etc.) equivalent to achievement of middle income country status by 2025.

Goals:

• To improve the arrangements and mechanisms for the identification, selection, evaluation, design, procurement and execution of infrastructure investments;
• To strengthen the institutional and organizational framework for effective and efficient delivery and management of appropriate and well-functioning urban infrastructure;
• To prepare a set of standard level-of-service, design and construction standards for design and construction of urban infrastructure and services in urban centers and cities by category;
• To design, implement and put into operation tools to rehabilitate and extended infrastructure and services, particularly for: power supply, roads and urban transport, storm-water drainage and flood control, water supply and wastewater management.
• To build capacity for project identification, design, execution and implementation by local government, including supervision and quality assurance of works; and
• Integrate urban infrastructure planning, development and operations are integrated – including with all utilities.

Linkages: Pillar 7 is linked to Pillars 1, 3 and 10 which provide the institutional and organizational capacity and resources (human and financial) to plan, deliver and maintain urban infrastructure and services that involve public and private investments in urban development. Pillar 4. Provides the planning and land for development and maintenance of infrastructure and services.

[1]             Urban Local Government Development Project 2008-14, Urban Local Government Development Program II 2014/15-2019/20, Urban Development Fund (Urban Governance and Decentralization Programme) 2005-2014. The ULGDP is funded partly by the World Bank, the Urban Development Fund partly by KfW.

Background: The Ministry started initiatives to beautify cities, address climate change issues and improve sanitation services in GTP I. These will now be strengthened and made broader in GPT II. GTP I initiatives included development of standards (designs & specifications), guidelines, and regulations to support greenery development and management, and include urban greenery development projects for open spaces, beautification, riverside spaces, parks, road verges, urban agriculture and forestry in capital investment plans, mobilize resources and implement projects. Urban greenery development was made a component of cities’ asset management, capital investment and Operation and Maintenance plans.

Objective: To make cities sustainable, resilient, clean, beautiful and green, which will in turn: make them attractive places for residents to live and work in, benefit the tourism industry, make them more attractive as centers of investment, help them mitigate their contribution to climate-change, improve their resilience to the likely impacts of climate-change, and support the development of urban agriculture and thus contribute to urban food security.

Goals:

• To implement nationwide urban greenery activities in a sustainable and efficient manner, and with the full participation of the community and other stakeholders.
• Create 755,000 job opportunities, with 50% reserved for women and vulnerable groups.
• To develop urban green areas in accordance with approved urban plans which allow for 30% of urban space to be dedicated to green areas.
• To ensure that the greenery service delivery system is multidisciplinary, so as to ensure sustainability of green assets. 
• To make full use of public urban spaces such as cemeteries, traffic islands, and road medians etc. as parks and attractive green open spaces.
• To help encourage natural resource balance and biodiversity conservation as a means to help resist urban climate-change impacts.
• To contribute to mitigation of climate-change impacts through improved use of open space.
• To maximize employment opportunities in the greening of urban areas and in the maintenance of green assets.
• To maximize opportunities for the development of urban agriculture as a means of contributing to urban food security.
• To divert water that would otherwise have been wasted to urban agriculture projects or for groundwater recharge.
• To build capacity in innovative approaches to urban greening, and in its potential to interface with other urban sectors such as flood control and drainage, urban transport (by foot and bicycle), reuse of solid waste through composting, use of recycled wastewater etc.
• To establish a system that improves SWM performance and by building capacity of urban centers to build and operate sanitary solid waste disposal sites.

Linkages: : Pillar 8 is linked to Pillars 1, 3 and 10 which provide the institutional and organizational capacity and resources (human and financial) to plan, deliver and maintain green, resilient and sustainable cities with sanitation services that satisfy citizens. Pillar 4. Provides the planning and land for development and maintenance of infrastructure and services.

Background: Pillar 9 brings together three projects which have been identified as priorities:

• Mainstreaming gender, youth and vulnerable groups. Ambitious targets were set (and achieved) in both the previous five year programs, especially in MSE and housing pillars. Youth development formed one of the five PASDEP urban development package pillars. This initiative will be broadened to include vulnerable groups and guidelines developed and adopted, by cities, regions and at federal level for mainstreaming gender, youth and vulnerable groups in all policies, programs and projects;
• Enforcement of laws and regulations. Better enforcement by urban local governments of the regulatory frameworks (building, developmen6t, health, transport/vehicle, etc.) that ensure successful cities and better observance by the public of urban laws and regulations; and
• Resilient, safe and sustainable cities. Provision by cities of those regulations (and their enforcement/observance) and services that ensure effective and efficient management of destructive events such as: floods, traffic accidents, fires, earthquakes, storms, strong winds, terrorism, etc.

Objective: Resilient, safe, sustainable and inclusive cities.

Goals:

• Cities are made as safe as possible from damage to people, possessions or property resulting from floods, accidents (traffic, industrial, etc.), fires, earthquakes, storms, winds, terrorism, etc.
• Cities develop capacities to help absorb future shocks and stresses to its social, economic, and technical systems and infrastructures so as to still be able to maintain essentially the same functions, structures, systems, and identity.
• Cities develop, enforce and ensure public knowledge and observance of laws, regulations, systems and behaviors that contribute to making the city resilient, safe, sustainable and inclusive.
• Cities develop policies, programs and projects that take account of and offer equal opportunities to women, youth and vulnerable residents.

Linkages: Pillar 9 is linked to Pillars 1, 3 and 10 which provide the institutional and organizational capacity and resources (human and financial) to plan, deliver and maintain green, resilient and sustainable cities with sanitation services that satisfy citizens. Pillar 2. MSE Development and Urban Productivity, Pillar 4. Urban Planning, Land Development and Management, Pillar 5. Housing Development, Pillar 7. Integrated Urban Infrastructure and Services Development, and Pillar 8. Greenery Development & Sanitation Improvement will all need to take into account the cross cutting and mainstreamed activities and principles described in Pillar 9.

Background: ULGs financial management is part of the overall GOE system that falls under the mandate of MoFED who are currently preparing to adopt, throughout all government systems, the integrated financial management information system that will build on the existing IBEX system and introduce accrual account and asset management. Generally, there is substantial work to be done in many aspects of financial management and reporting. Mobilizing financial resources is a huge challenge in terms of mobilizing local revenues to meet operation and maintenance of infrastructure and services and at local, national and international levels to meet capital investments needs. These needs must take into account the backlog in infrastructure and facilities development, rapidly growing populations and achievement of middle income country status as identified by performance targets. GTP2 will involve studies and testing of the potential to mobilize many new financial resources: property taxes, community contributions, public-private partnerships, vehicle taxes, user charges, etc.

Objective: Sufficient financial resources are mobilized for urban centers – by category - to achieve 2020 and 2025 benchmarked performance targets for achievement of middle income country status.

Goals:

• Financial management (budgeting, reporting, revenue and expenditure control, cash management, accounting systems, audit, asset management, etc.) systems support good governance, citizens’ satisfaction and growth;
• Local (municipal) revenues meet existing and future demand for the financial resources urban centers need to operate and maintain infrastructure, services and facilities to the standards and targets established; and
• Sufficient investment funds are provided for development of new, upgraded and rehabilitated infrastructure by urban centers to meet the standards and targets established.

Linkages: Pillar 3, Project 3.1.1 will provide standards for delivery of services. Projects 3.1.3 and 1.1.2 will provide the benchmarked performance targets for operation and maintenance, and development of new, upgraded and rehabilitated infrastructure by urban centers. Project 3.1.3 will recommend financial management systems to be adopted by cities.