83912 Sana’a: A City Development Strategy Foreword Since 2000, with the issuance of the Local Authorities Law No. 4, Yemen has been pursuing an ambitious decentralization agenda. This agenda aims to delegate greater fiscal and administrative authority to local governments and to give communities—public leaders, residents, and investors— more control over the economic and social development of their cities and towns. To date, city development strategies (CDS) have been initiated in four of Yemen’s largest urban areas—Sana’a, Aden, Hodeidah, and Mukalla. With support from the Cities Alliance and The World Bank, the CDS process in each of these cities has brought together public and private sector lead- ership to assess the strengths and weaknesses of the city, think strategically about opportunities for equitable economic growth, develop a long-term vision, and draft a prioritized action plan. In all four cases, the CDS process has been coupled with revisions to the cities’ master plans to ensure a strong link between economic development plans and infrastructure. The benefits of the CDS process go far beyond the writing of the CDS document. To create a long- term vision for the city required the participation of a variety of public, private, and civil society leaders who do not often have the occasion to come together to discuss the challenges and oppor- tunities facing the city. The structure for cross-sectoral communication provided under the umbrella of the CDS has had a lasting effect in terms of helping to align the city’s social, economic, and envi- ronmental interests. In addition, with the financial support under the CDS, local leaders had access to much needed technical support and expertise focused on issues of local concern. This publication seeks to summarize the main outcomes of the studies, discussions, and strate- gic planning accomplished during Sana’a’s CDS process. Moreover, it aims to serve as a guide for the city’s local economic development that is presented in a manner that is accessible to a broad audience. H.E. Mr. Abdel Kareem Al-Arhabi Deputy Prime Minister for Economic Affairs Minister of Planning and International Cooperation Acknowledgements The development of this City Development Strategy (CDS) for Sana’a would not have been possi- ble without the financial support of the Cities Alliance. The CDS process was a collaborative effort involving many government officials, private sector representatives, and members of the Yemeni civil society. The CDS team is grateful to the GOY’s policymakers and senior officials for their leadership throughout the process, particularly: H.E. Mr. Abdelkarim Al-Arhabi, Deputy Prime Minister for Eco- nomic Affairs/Minister of Planning and International Cooperation (MOPIC) for his support for the Sana’a CDS and for introducing its various presentations; H.E. Mr. Abdurrahman Al-Akwa’a, Min- ister of State and Mayor of Sana’a Municipality; H. E. Dr. Yehia El Shoebi, former Mayor of Sana’a and initiator of the Sana’a CDS; and H.E. Mr. Amin Jumaan, Vice-Mayor of Sana’a Municipality and head of the CDS Steering Committee. Special thanks are extended to Eng. Moein Al Mohaqery, Deputy Mayor for Technical Affairs and head of the Sana’a CDS Technical Secretariat; Eng. Abdullah Sonbol, Deputy Mayor for the Envi- ronment; Eng. Ahmed Abdul Wahed, Director of the Road Intersection Project, Sana’a Municipal- ity; Eng. Abd El Qawi Taleb, Technical Affairs Consultant; Mr. Yehya Al Ezzi, Financial Management Consultant and especially Eng. Namir Zainal, Urban Planning Consultant, Sana’a Municipality who have supported the CDS consultants, discussed many ideas, provided access to information, and provided great logistical and general support throughout the CDS process. Many individuals outside the Municipality of Sana’a supported the CDS consultants in the devel- opment and consultation of background studies. We would like to acknowledge the contributions of Eng. Ahmed Seif, Director of the Sana’a branch of the General Authority for Land Survey and Urban Planning (GALSUP) for his support to both the urban planning and especially the urban upgrading component. The CDS was facilitated by the World Bank team comprising of Sameh Wahba, Sr. Urban Develop- ment Specialist; Catherine Lynch, Consultant; Nagwan Sharhan and Azeb Yideru, Program Assistants; and we express our gratitude for their crucial support to the CDS process. The publication was finalized under the leadership of Ms. Anna Bjerde, Sector Manager, Urban Development, Middle East and North Africa Region; and Madhu Raghunath, Urban Specialist. The authors of the separate studies upon which this CDS was based are the following: Ahmed El Basti Municipal Institutional Specialist Khalid Amin Municipal Finance Specialist Mohamed Lahouel Urban Economist Mostafa Madbouli Urban Planning Specialist Monika El Shorbagy Urban Upgrading Specialist David Sims, Urban Planner and CDS Coordinator, compiled this report. Contents Introduction 6 Sana’a Today 8 History of Sana’a 8 Explosive Expansion of Modern Sana’a 11 Challenge of Rapid Population Growth 13 Vibrant Economy of Sana’a 14 Poverty and Unemployment 17 Sana’a’s Alarming Water Shortage 18 Proliferation of Informal Areas and Squatter Settlements 19 Land Market Distortions 20 Weak Urban Planning and Management 20 Environmental Challenge 21 Sana’a Tomorrow 22 Stakeholders’ Vision 22 Principles of an Economic Development Strategy 22 Strengthening Institutional Structures and Capacities 25 Better Financial Management for the City 30 Improved Urban Planning 34 Comprehensive Approach to Urban Upgrading in Sana’a 39 Implementation 43 Agendas for Action 43 Sequencing and Monitoring the Strategy 47 Priority Capital Investment Projects 48 Introduction Sana’a is located in an upland basin at an alti- mately 30 percent of industrial establishments tude of 2300 meters within a mountainous and in Yemen and has a concentration of higher- semi-arid region of Yemen. Because of its high order commercial and services activities, altitude, the city enjoys a moderate climate year including banking and financial services. The around. The main rainy season is in summer. city’s endowments also include important infra- The nearest port is Hodeidah, roughly 250 kilo- structure, including an international airport and meters away. Bound by mountains and steep a relatively efficient primary road network. slopes to the east and west, the city has few options but to expand primarily along its north Sana’a City currently contains approximately and south axes within its basin. two million people. This represents an average annual growth rate of over 7 percent over the The Municipality of Sana’a (amanat al asema) last 30 years and 5.6 percent during the 1994– is the political and administrative capital and 2004 decade, extremely rapid rates of city the most important cultural center in the coun- growth. This demographic increase has been try. The city has developed around its medi- paralleled by a dramatic increase of the urban/ eval core Old Sana’a, which was declared by inhibited built-up area of the city. UNESCO as a World Heritage Site in 1984. The old city has a unique urban and architectural In September 2005 the Sana’a Local Council patrimony, and such unique heritage endow- convened a workshop to initiate the city devel- ments act as an important draw factor for tour- opment strategy (CDS) process, in coordination ism, which over the coming years is expected to with The World Bank and the Arab Urban Devel- contribute significantly to growth and local eco- opment Institute (AUDI). Funding and organi- nomic development. zational aspects of the CDS were approved in October 2006 by the Cities Alliance, and the CDS The city also has important economic and com- process was launched under the leadership of 6 mercial functions. Sana’a is home to approxi- H.E. the Minister of State and Mayor of Sana’a. Over the two-year period of the CDS pro- convened, and each of these workshops was cess, numerous informal consultations and a valuable event in which attendee stakehold- exchanges were held; the process was punctu- ers provided feedback on the CDS process and ated by formal workshops. Besides the launch- themes. The CDS process was assisted by six ing workshop, four formal workshops were international experts. 7 Sana’a Today— City of History and a Modern, Dynamic Capital The Municipality of Sana’a (amanat al asema), by far Yemen’s largest city, is the political and administrative capital and the most impor- tant cultural center in the country. The city developed around its medieval core, and Old Sana’a has been declared by UNESCO as a World Heritage Site. Sana’a also was named the Arab world’s Capital of Culture in 2004. The old city has a unique urban and architec- Sana’a tural patrimony that dates back 2,000 years. The urban and architectural fabric within the city walls remains primarily intact. Such unique heritage endowments act as an important draw factor for tourism, which over the coming years is expected to contribute significantly to growth and local economic development. able real estate boom as Yemenis invest Bound by mountains and steep slopes to the remittances in and around the capital. east and west, the city has few options but to expand primarily along its north and south axes. History of Sana’a Furthermore, the location of the international airport together with the main sewage treat- Sana’a’s origins date back to extreme antiquity, ment plant in the north also constrains devel- at least to the second century AD during the opment in that direction, leaving the southern reign of the Himyaritic King Shaar Awtar. The axis as the main path for the city expansion. Islamic era, which began in the seventh century AD, contains many events critical to the forma- Sana’a City currently contains approximately tion of the Yemeni nation and the identity of the two million people, up from an estimated Yemeni people. Yemeni tribes were part of the 427,500 persons in 1986 and only 162,000 earliest campaigns of Islam, and conversion to inhabitants in 1977. This demographic increase Islam in Yemen was rapid and nearly univer- has been paralleled by a dramatic increase of sal. In the sixth year of the Hegira era, it is said the urban/inhibited built-up area of the city, that the Prophet Mohamed (PBUH) ordered which accelerated because of the Gulf War of the construction of the Jamia el Kebir (Grand 1991 upon the return of expatriate Yemenis Mosque) in Sana’a. from the Gulf and also extensive internal migra- tions after the unification of Yemen. The Umayyad and Abbasid caliphates ruled Yemen through governors whose seat was The export from Yemen of significant quan- Sana’a, and in the 10th Century the local Zayedi tities of petroleum, starting in the mid 1990s, dynasty was established. During the reign of the generated state revenues that have financed Abbasid Caliph Haroon AI-Rasheed, the Gov- Sana’a’s many recent improvements and has ernor Muhammad Bin Khal AI Barmaki built a helped stimulate the city’s economy. In addi- number of mosques and other embellishments 8 tion, Sana’a has been experiencing a remark- in Sana’a, most of which can be seen today. Power in Yemen changed hands (and capi- trict called Beer AI-Azab. The Zayedi imam- tals) over the 11th through 15th Centuries, and ate came to hold sway until the 19th Century, Sana’a’s fortunes with it. In 1517, the Ottomans dominating the mountainous regions and keep- extended their empire to Yemen and Sana’a. ing the culture and economy isolated from the Their influence on Sana’a was notable, as they outside world. Sana’a was the seat of power in progressively extended the city and its walls Yemen for most of this period, and the Imams westward by establishing a large new dis- added palaces as well as public buildings, and The Old City The old, walled city of Sana’a has been inhabited for more than 2,000 years and con- tains a wealth of intact architectural gems. Virtually all structures within the old city exhibit a very distinctive vernacular style that dates back hundreds of years. Also, the medieval urban fabric of lanes and small squares remains intact. These aspects give the cityscape a historic cohesiveness and architectural harmony that is unique and represents a pro- found urban heritage. The old town contains about 6,000 buildings, almost all of which are beige-colored, multi- storey, masonry structures with elaborate white gypsum friezes and embellishments as well as gypsum and stained-glass windows. Another unique feature are a number of urban vegetable and fruit gardens whose vibrant green pleasantly off-sets the towering masonry buildings. There are also said to be 100 mosques, 12 public baths, and ten spe- cialized market areas (one for clothes, grain, salt and spices, silver and gold, and cat- tle, among others). A number of caravanserai can still be found. Two main city gates still remain intact—Bab el Yemen on the south and Bab el Shuub on the north. A medieval citadel dominates the eastern quarter, and there is a large dry watercourse (Al Saila) on the western side. The old city of Sana’a was declared a World Heritage Site by UNESCO in 1984. Water and sewerage networks were installed, and the whole of the Old City’s lanes and public spaces were paved with basalt stone, as part of a number of conservation efforts carried out with foreign partners. In 2001–2004, a Yemeni-Dutch project produced a conservation and preservation strategy and plan for Old Sana’a. The strategy added to the walled city some surrounding historic neighborhoods, including Bir Al Azeb, to develop proper design and conservation guidelines for the walled city and its context. There is a government department dedicated to the preservation and enhancement of the old city. In 2004 the old city was declared the Arab World’s capital of culture. 9 Sana’a in 1940 a new market was established west of Al-Sai- represents a tiny core of what has become a ela. In 1849 Ottomans re-conquered Sana’a sprawling city. With the 1962 revolution and the and the north of Yemen. The main legacy from establishment of a modern republic, Sana’a this period is the Sana’a military barracks just began to evolve rapidly, spilling outside the old outside Bab el Yemen, as well as additions to city walls and expanding in a radial manner the Sana’a Citadel. along major roads. As a result the total area of the city expanded from merely 3.7 square kilo- Ottoman rule was strongly resisted by the meters in 1962 to more than 40 square kilome- Imams and their local followers, especially ters in the end of the 1970s. Fastest growth has during the early 1900s. Defeat in World War taken place since 1980 along the north-south I forced the Turks to abandon Yemen, and the roads starting from the airport in the north to last two Zayedi Imams—Yehia and Ahmed— Ta’iz in the south, and to a lesser degree, prob- ruled autocratically from Sana’a for the next 44 ably for reasons of difficult topography, east years. They insulated Yemen and especially and west towards the towns of Hodaideh, Al- Sana’a from outside contacts at a time of great Mahaweet, Hadda, and Marib. changes in the region. Rapid urban growth led to the establishment of the Municipality of Capital Sana’a (amanet al- Explosive Expansion of Modern Sana’a aasema sana’a) by Presidential Decree No. 13 of 1983. Another presidential decree No. 2 of Until 1962, Sana’a could be considered a medi- 2001 was issued dividing the Municipality of the eval city stalled in time. Today, this old city of Capital Sana’a into nine administrative areas 10 Sana’a with the Bir el Azab area to the West or directorates (muderiat), plus added Bani Physical Extents of Sana’a in 1962, 1979, and 2001 Source: Team International, Comprehensive Traffic Management Study for Sana’a City, Land Development and Population Forecast, November 2006. 11 Demographics of Countries in the MENA Region Growth rate of urban vs. total population 5.0% Urban Growth Rate Population Growth Rate 4.0% 3.0% 2.0% 1.0% 0.0% en n ia a an t q E ia co an t a ria yp ai by bi no Ira A is er m m oc rd uw Sy U ra Iraq UAE Eg n Li lg ba Ye O Jo Syria Tu or Libya Oman Egypt A K A Le JordanKuwait M ia Tunisia Algeria Yemen ud Lebanon Morocco Sa Saudi Arabia Source: United Nations Fund for Population Activities, State of the World’s Population, 2007. Hareth Directorate to the north as the Munici- Today, Sana’a accommodates 8.9 percent pality’s 10th directorate. of Yemen’s total population and 30.3 percent of the country’s urban population.2 It hosts Within the last seven years, the city has enjoyed between 20 percent and 30 percent of the relative prosperity because of the implemen- country’s industrial base, varying by the source tation of improvements of services and infra- of information. structure, especially related to water supply, telephone, roads, street lighting, drainage, and beautification and cleanliness of the city. Challenge of Rapid Population Growth One of the large projects that have taken place within this period is El-Saeila storm water proj- Yemen has the highest rate of population ect, which included the clearance/resettlement increase in the Middle East and North Africa and upgrading schemes of associated poor (MENA) region, and the growth of the country’s areas. Another important project is the road urban population far outstrips that of any other intersections’ project, which is providing grade- MENA country. Sana’a’s population increase is separated intersections at important junctions by far the highest of any major Yemeni city. In throughout Sana’a, as well as improved high- 1977, Sana’a Municipality’s population was a way geometry for major roads.1 mere 162,000 persons representing just 3 per- 1 The intersections project also included a comprehensive traffic management study for Sana’a, completed in 2006. 2 Urban is defined in Yemeni statistics as Sana’a City, Aden City, the capitals of the governorates, district centers and every 12 settled community with at least 5,000 inhabitants. Growth of Sana’a’s Population 1975–2007 2000 1800 1800 1600 1600 1400 1200 1000 955 800 600 400 428 200 135 0 Y 1975 Y 1986 Y 1994 Y 2002 Y 2007 Source: Various Census of Yemen results. cent of the country’s population, but in less than Vibrant Economy of Sana’a’ three decades the population had grown more than tenfold to reach 1.7 million inhabitants in The economy of Sana’a can be termed “a capi- 2004, representing 9 percent of Yemen’s total tal city economy,” in terms of concentrations of population. If the 1994–2004 population rate of national economic activities and employment increase of Sana’a continues, the city popula- and public sector administration. The economy tion will double in 13 years and increase by over is large compared to its population. The Munici- three times by 2027. It is interesting to note that pality contains almost 16 percent of the nation’s the Comprehensive Traffic Management Study establishments and 22 percent of the nation’s for Sana’a (Team International, 2006) projected employment in establishments, whereas it had a population of 2.847 million in 2014 and 3.825 only about 9 percent of Yemen’s total popu- million by 2024. lation in 2004. The average size of establish- ments in Sana’a is small at 3.88 employees Since the national average population growth per establishment, but this is higher than the rate is only 3.02 percent per annum and fer- Yemeni average (2.87 employees per estab- tility rates in Sana’a city are lower than the lishment). Of all the main cities, only Aden, national average, it is obvious that natural at 6.44 employees per establishment, has a population increase accounts only for a small larger establishment size than Sana’a. part of additions to the population of Sana’a. The other part is made up by in-migrants At more than 30 percent of the total, the pub- from both other urban as well as rural parts lic sector accounts for a large share of nonag- of the country. Informal and settlements and ricultural employment in Sana’a, as it does for fringe sprawl accommodate the bulk of the Yemen as a whole. massive population increase that Sana’a has experienced in the past two decades. As will Commerce and small services are by far the be seen, this very rapid demographic growth largest sectors in Sana’a both in terms of puts severe strains on urban services and establishments and in terms of employment. In infrastructure. this, Sana’a mirrors the country as a whole, but 13 Establishments and Employment in the Main Yemeni Cities (2004) Establishments Employment Percentage of Percentage of City Number National Total Number National Total Sana’a 64,922 15.9% 252,257 21.6% Taiz 45,391 11.1% 138,328 11.8% Ibb 39,195 9.6% 80,903 6.9% Hodeidah 36,909 9.1% 110,794 9.5% Aden 16,547 4.1% 106,686 9.1% Total Yemen 407,477 (100%) 1,170,031 (100%) Source: CSO, Census of Establishments, 2004. the degree of concentration in commerce and istration, hotel and restaurant, and transpor- small services is even higher. Also, there is a tation employment in Sana’a compared to the relative higher concentration of general admin- Yemeni averages. Percentage Distribution of Labor in Establishments by Type of Establishment Ownership Type of Establishment Sana’a Municipality Private, Locally Owned 62% 52% State-owned 31% 38% Waqf 2% 7% Private, Foreign-owned 1% 1% Private, Joint Venture 1% 1% Total 100% 100% Note: Error due to rounding Source: CSO, Census of Establishments, 2004. 14 Percentage Distribution of Establishments and Employment by Economic Activity (2004) Establishments Employment Urban Economic Activity Sana’a Urban Yemen Sana’a Yemen Agriculture 0.2% 0.7% 0.3% 0.8% Fishing 0% 0% 0% 0% Mining and Quarrying 0.1% 0.1% 0.3% 0.7% Manufacturing 12.1% 10.2% 12.5% 11.4% Electricity, Gas, and Water 0.5% 1.1% 1.1% 1.2% Commerce and Small Services 58.9% 50.6% 31.3% 28.4% Hotels and Restaurants 7.1% 4.7% 7.4% 5.5% Transportation 4.8% 2.3% 4.0% 2.7% General Administration 0.8% 1.1% 18.0% 13.4% Education 1.5% 4.1% 9.0% 18.6% Health and Social Work 2.7% 2.2% 5.3% 4.8% Other Activities 11.2% 22.9% 10.8% 12.5% Total 100% 100% 100% 100% Source: CSO, Census of Establishments, 2004. By far, Sana’a Municipality is the leading gov- importance of Sana’a, as the nation’s capital, ernorate in Yemen in terms of formal sector job as a location for national investment and capi- creation and new economic projects. Over the tal accumulation. 1992 –2006 period, 39 percent of all new formal jobs in Yemen were created in Sana’a, as well Furthermore, Sana’a’s population is relatively as 33 percent of new formal establishments. better educated than the populations of other In terms of employment generated, Sana’a Yemeni cities (and much better educated than Municipality eclipses all other governorates by the national population as a whole). at least a factor of three. This underscores the 15 New Projects Established and Formal Sector Jobs Created 1992–2006 Governorates Number of Projects Number of Employees Sana’a Municipality 1125 29,298 Aden 404 10,114 Taiz 366 7,474 Hadramout 584 5,430 Hodeidah 310 10,330 Other Governorates 566 11,587 Total 3355 74,233 Source: General Investment Authority. Distribution of Population by Level of Education (2004) Level Sana’a Municipality Urban Yemen All Yemen Illiterate 21.9% 25.7% 45.3% Read and Write 32.0% 34.4% 31.5% Primary 6.0% 4.9% 3.1% Vocational —Basic 14.2% 12.9% 8.5% Diploma before Secondary 0.3% 0.7% 0.4% Secondary and Equivalent 15.8% 13.8% 7.2% Diploma after Secondary 1.5% 1.7% 1.0% Higher Education 7.4% 5.3% 2.3% Nondeclared 0.9% 0.6% 0.7% Total 100% 100% 100% Source: CSO, Census of Yemen, 2004. Poverty and Unemployment during the past two decades. Despite govern- ment efforts to orient public policies towards Poverty incidence in Yemen is very high with the poor4, all indicators suggest that poverty 40.1 percent of the population in rural and incidence in Sana’a cannot be expected to 20.7 percent of inhabitants in urban areas fall- decline significantly in the near future. Also, ing below the poverty line. In Sana’a, the poor it must be highlighted that poverty lines are account for 15 percent of all residents.3 High rather arbitrary and that there are large num- inflation rates of between 10 percent and 20 bers of people living just above the poverty line percent during the past five years combined and are vulnerable to falling below it. with low per capita income growth (0.7 per- cent per annum) and a skewed distribution of Where do Sana’a’s 300,000 poorest residents growth in the favor of the better-off suggest live? There are certain neighborhoods with a have impoverished part of the middle classes high concentration of the poor, but it is widely 3 The World Bank, Yemen Poverty Assessment, November 2007 16 4 See Poverty Reduction Strategy in the 3rd Five Year Plan 2006-2010 Distribution of Urban Poor in Yemen All Other Governorates Sana’a City 28% 23% Hodeidah Aden 15% 10% Hadramout Taiz 12% 12% Source: CSO, HBS 2005 agreed that the poor are “found everywhere,” except in certain new high class residential neighborhoods, such as Hadda. Poor families live in older dilapidated structures in central neighborhoods, small single-storey structures in the middle of typical multi-storey buildings of middle class neighborhoods or in small rented flats throughout the city and also in fringe infor- mal and squatter settlements. Where the poor live and how they live is mainly driven by their nearly 6.5 percent of the total poor of the coun- economic circumstances and their access to try and 23 percent of poor urban households. affordable land and housing. There seems to be a correlation between pov- erty and unemployment in Sana’a, with some Given Sana’a’s position as the capital of Yemen, estimates putting 25 percent of Sana’a’s labor the public sector is a very significant source of force unemployed. And there are indications employment. The government, including the that income inequality in Sana’a is increasing. military and police, account for nearly 40 per- In Sana’a, the Gini Coefficient increased sig- cent of the total of 295,000 jobs in the city. nificantly from 37 to 44 from 1998 to 2005, an Sana’a is also a center for trade and commerce increase of 21 percent, the steepest increase of and has a fairly vibrant industrial base. There any region of the country.5 is also a large informal business sector, esti- mated in 2002 to represent 32 percent of non- government employment. Sana’a’s Alarming Water Shortage However, Sana’a has the largest concentra- The water supply of Sana’a is approaching a tion of poor people in Yemen, accounting for critical point because more than 80 percent 5 Central Statistics Organization, Household Budget Surveys of 1998 and 2005. 17 comes from extracting water from reserves in the geologi- cal Sana’a Basin, which cov- ers an approximate area of 70x40 km on the northwest Disposal of sewage in side of the city. It is estimated Houd Sana’a that the basin will be com- pletely depleted within 10–15 years, because of the rapid population growth and ad-hoc withdrawal of water whether for agricultural or domes- tic purposes. It is estimated that the existing aquifer levels have dropped by six to eight meter on average each year. Although being threatened with the deterioration of its Water pipes in Qa’ Al Qaidi water sources, there is no clear strategy adopted by the city to overcome this problem. In terms of access to drinking water, the public water network is estimated to cover only 55 percent of the city’s households. The problem of undersupply is exacerbated by the physical deterioration of the net- work, which results in serious leakages (estimated at 40 percent). As a result, water supply in Sana’a is rationed—a particular area of the city will have water in Electricity in Al Khafji the system only one day in 15, and deliveries of water by private tanker truck must make up the shortfall. For the 45 percent of households without connections to the water network, supply by tanker truck is the only option, and an expensive one. It is estimated that cur- rent domestic water consumption per capita is already only 30–50 liters per capita per day, far below urban norms in the MENA region. This water shortage poses problems not just in residential areas but also repre- sents a severe constraint for industry and commerce. This issue is crucial for determining the future spa- Garbage in Shamlan tial development trends of the city and its population growth pattern. Proliferation of Informal Areas and Squatter Settlements The massive population growth and the absence of effective urban planning and control instruments have led to a very rapid proliferation of informal land devel- 18 Steep slopes & danger of land opment and housing construction, particularly since slides in Sneina 1990. Much construction in Sana’a over the slopes—are sub- past decade has taken place in unplanned ject to ongo- areas without building permits and in the ing disputes absence of infrastructure and municipal ser- with the private vices. City planners, lacking a coherent up-to- landowners of date city master plan, have prepared detailed adjacent lands neighborhood plans for some of these sprawl- who claim that ing areas after development has started. These these slopes are detailed plans typically follow the traditional theirs by virtue of their historic right-to- neighborhood planning unit approach without water. Faced with such shortage of state- any basis in or knowledge of underlying land owned/controlled land, local authorities are ownership or tenure patterns, because of the forced to acquire private land, often at very high lack of a proper land information system. How- prices. Land market distortions in Sana’a are ever, these “official” plans rarely are imple- also reflected in mented as no landowner is willing to give up very high land their land for the services or infrastructure and and real estate enforcement is very weak. prices and a very large vol- Several squatter settlements are also found in ume of land dis- Sana’a, including on lands reserved for public putes that clogs facilities and in flood paths and other marginal the courts’ sys- land. Squatter populations have no secure land tem (estimated between 30–50 percent of all tenure and lack access to basic infrastructure cases heard before primary courts). Land reg- and municipal services. The municipality has istration is limited, and it is estimated that land undertaken some projects to upgrade squatter registry’s capture does not exceed 20 percent settlements and resettle squatters living in flood of total annual transactions in land and property prone areas (e.g., el saila) in public housing in the city. projects. The improvement of living conditions in squatter settlements and the socio-economic integration of the poor in the city’s fabric is a Weak Urban pressing priority and an explicit aim of local Planning and authorities in Sana’a. Management Even though decentralization Land Market Distortions and other reform measures are Sana’a faces severe land market distortions, being carried out which is arguably the city’s most complex prob- nationally, the Sana’a municipal government lem. In the 2002 Investment Climate Survey, remains a mix of decentralized and de-concen- 37 percent of respondent firms in Sana’a have trated entities, with duplication common. It also rated “access to land” as a major/severe obsta- suffers from the ambiguity of having 10 elected cle to doing business, compared to 30 percent in district councils within its boundaries, in addi- the total national sample. Access to public land tion to the municipal elected local council. The is also the most challenging issue facing local Sana’a Municipality’s human resources lack authorities as they attempt to provide schools, the necessary skills and are poorly motivated. health centers and public amenities. In Sana’a, In addition, Sana’a Municipality has very weak the large majority of vacant land (formerly agri- local revenue generation capacity and its reli- cultural land) is privately owned, and only lands ance on central government transfers and sub- that can be deemed State-owned—mountain sidies is huge. 19 Today, the urban planning process in Sana’a • The city suffers from the absence of proper can be described as follows. areas for industrial development. The exist- ing areas are very limited in terms of space • There is no official plan for the city that can and infrastructure. define a clear and comprehensive vision for • There are no effective monitoring mecha- its spatial growth. The city has grown com- nisms that ensure the implementation of the pletely beyond the 1978 Master Plan extents detailed urban plans for local areas or to stop and the master plan exercise of 1998 was the development in prohibited areas or areas only partial and was never approved. that have been allocated for public services. • There is no analysis of the urban agglomera- tion of Sana’a within its regional and subre- gional context or studies of its influence on Environmental Challenge surrounding areas. • The current pattern of growth is taking the Less than 40 percent of the city is served with shape of scattered development without any sewage network service, while the majority of phasing or sequencing to guide infrastructure the buildings still rely on individual solutions provision. This scattered development with that can negatively affect underground sources low density represents a limited utilization of water. The area of Sana’a Basin (one of the of land, increases the cost of infrastructure, city’s main well fields) is among those areas and has negative economic consequences facing the problem of groundwater contami- in terms of the huge distances that must be nation because of informal development and traveled. industries. Until now it has proven impossible • The responsibility of urban planning func- to protect this area from urban expansion, as it tion is not clearly defined. Several laws and is one of the main sources of water for the city. presidential decrees exist that have allocated functions to different governmental bodies. Sana’a exists in an upland basin or bowl sur- Today, the only active body is the Sana’a rounded on all sides by higher elevations, not branch of General Authority for Land, Survey dissimilar to Mexico City or Kathmandu. The and Urban Planning, which is mainly prepar- rapid rise in the number of vehicles over the ing detailed urban plans for neighborhoods. past decade and the relatively cheap price This work is mainly a reaction to on-going of fuel (in spite of the recent price hikes) has development and the pressures of landown- resulted in ever increasing volumes of pollut- ers. In a particular area where construction ants being released into the atmosphere. These starts (either on private or state-owned land, factors lead at times to thermal inversions and or a mix of both), the branch tries to prevent polluted, stagnant air, which is a common com- this informal development by preparing and plaint in Sana’a. publishing detailed plans for those areas. • The detailed plans are prepared without Finally, although the Municipality’s Cleanliness either clear land uses or planning standards and Improvement Fund does a reasonable job and building codes and criteria. of collecting and disposing of solid wastes in • There is no restriction to changing existing the built up areas of Sana’a, not all areas are land uses and the city suffers from the mix- covered, and the accumulation of rubbish and ture of several land uses within the same plastics along roads, empty lots, and fringe neighborhoods. areas is very unsightly. 20 Sana’a Tomorrow Stakeholders’ Vision A CDS workshop was held in Sana’a on Febru- Additionally, it was agreed that Sana’a’s city ary 11, 2007. H.E. the Mayor of Sana’a chaired development strategy needs to concentrate the event. More than 80 participants attended, on five themes or components: (1) economic including H.E. the Minister of Planning and development, (2) institutional strengthening, International Cooperation, H.E. the Secretary (3) better financial management, (4) improved General of the Sana’a City Local Council and urban planning, and (5) a comprehensive Vice Mayor, and about 60 elected councilors approach to urban upgrading. at the municipal and district levels. There were also selected representatives of CDS partners such as from Sana’a University, the Sana’a Principles of an Economic Chamber of Commerce and Industry, and non- Development Strategy governmental organizations. An economic strategy for Sana’a development The workshop attendees were organized into needs to be based on its relative strengths. As four working groups to brainstorm the vision of the nation’s capital, it has been and continues to the city for sustainable development, strategic be a prime location for national investment and objectives, and key issues and challenges. The capital accumulation. Furthermore, Sana’a’s results of the working groups were then synthe- population is relatively better educated than the sized in a plenary session. The agreed vision populations of other Yemeni cities (and much statement for Sana’a in 2025 was as follows: better educated than the national population as a whole). In addition to these general indica- Sana’a—Yemen’s capital and symbol of tors of Sana’a’s relative strengths, the following its unity—is a historic and cultural cen- points should be added. ter; a regional destination, and a gateway to Yemen; a hub of commerce, services, • Sana’a has a relatively good level of infra- and tourism; a city with high quality infra- structure services, especially in terms of its structure and services, which improves road network. living standards for its residents and • Although Hodeidah, Aden, Taiz, and Mukalla enhances its attractiveness to its visitors. all boast international airports, Sana’a’s inter- national airport is by far the most important in The attendees also agreed upon the basic terms of international connections and num- goals or principles of Sana’a’s development ber of passengers, number of airlines, and over the next 20 years as follows: volumes of cargo. A new airport/terminal is planned adjacent to the existing airport, with • Participatory approach to policy and construction set to begin soon. decision-making • Sana’a is the seat of central government and • Comprehensive and up-to-date information all national-level agencies, which reduces base to enable policy and decision-making transaction costs for investors. • Effective and efficient implementation and • Sana’a is the home to most international coordination mechanisms organizations and all foreign embassies, • Sustainable and buoyant revenue sources which gives easier access by firms to infor- and efficient local revenue mobilization mation on technology, market opportunities, • Strategic planning and so on. 21 In addition, there are natural and cultural fac- their connections, seem to be able to evade tors that should be considered among Sana’a’s taxes and regulations and thus can out-com- strengths: pete other firms who must play by the rules. • Firms in Sana’a report long delays for clear- • Very attractive cultural heritage ing both imports and exports through cus- • Mild and temperate climate throughout the toms. This is especially true for imports. Over year, a huge plus for attracting visitors from 70 percent of firms surveyed in Sana’a report the Gulf region with its sweltering tempera- making extra-legal payments associated with tures most of the year customs clearances. • A long tradition of commerce and trade • The cost of bank credit is exorbitant, and demands for loan guarantees are onerous for Looking strategically at Sana’a’s potential to firms in Sana’a. These financial constraints attract investors, perhaps the most signifi- are perceived by one-third of Sana’a firms as cant strength is the city’s proximity to a region being serious. (mainly Arab Gulf neighbors with oil-based economies) with high purchasing power, high Besides these constraints to business and demand for foreign goods and services, and, investment, private sector firms in Sana’a also most importantly, huge financial surpluses look- complain about infrastructure deficiencies. ing for investment opportunities. Furthermore, For example, the unreliability of electrical sup- there are strong cultural ties and a commonal- ply causes production losses for business and ity of language between Yemen and these Arab forces them to install their own backup gener- neighbors (in particular with Saudi Arabia). ating capacity. Water supply is an overarching constraint to firms in Sana’a, which are heavy However, for Sana’a to maximize its economic water consumers, and the situation can only strengths, it needs to improve its investment become worse. Finally, the difficulties of acquir- climate. A 2005 business climate assessment6 ing secure, serviced, and titled land for invest- surveyed a subset of 175 firms in Sana’a out ment and business property is considered a of 488 firms nationally. The results show that major or severe constraint by almost one third firms in Sana’a face constraints much as do of firms surveyed in Sana’a. firms throughout the country. Sana’a, as Yemen’s capital and largest city, • Various surveys as well as interviews with enjoys a unique position within the national entrepreneurs underscore how corruption economy. In fact, the city’s strengths, as intervenes in transactions where govern- elaborated above, ensure that, compared ment administrations are involved, such as to other urban centers in Yemen, the capi- taxation, foreign trade, and permits, among tal will enjoy continued accumulation of capi- others. Significant extra-legal payments are tal and relatively strong economic growth. But stated to be common. the city cannot afford to rest on its achieve- • Taxes are considered by several firms as ments and existing strengths, since as with having high cumulative negative effects. In any large capital city, much of the fate of the addition, tax administration inspections tend nation’s economic future is intrinsically tied to be costly in terms of money and time, and to the capital’s performance. And the country underlying this is inefficiency and a lack of is in dire need of strong and sustained eco- transparency. nomic growth to meet its many challenges and • Anti-competitive and unfair practices bedevil to tackle the intractable problem of deep pov- firms in Sana’a. This is mainly a situation erty. Therefore, Sana’a must adopt a strat- where certain firms and importers, because of egy that stimulates private sector growth 22 6 Mitsubishi Research Institute, Inc. Enhancing Yemen Export Competitiveness: Diagnostics and Policy Options, May 2005 in ways that maximizes contributions This does mean that Sana’a should pursue to the national economy, complements an all-out industrialization strategy? Quite the economic activities in other urban centers, contrary. First, any water-intensive industries and provides support for national resource must be discouraged from locating in or around mobilization and crucially needed improve- Sana’a, given the acute and increasing water ments in the national business climate. shortages in the area. Secondly, the poten- tial problems of environmental pollution and But how could this be done? Most business land use conflicts associated with manufactur- reform and improvement in the investment cli- ing activities around Sana’a would inevitably mate requires action at the national level.7 But be exacerbated. Thirdly, and most importantly, cannot Sana’a Municipality play an “illustrative other urban centers in Yemen (in particular Aden role,” applying reforms in areas under its con- and Al Hodeidah) are better suited for the bulk trol (for example, licensing, local taxation, and of manufacturing investment Yemen seeks to land registration, among others) and thus lead- attract and, in fact, these centers have adopted ing by example? After all, the relative sophisti- robust industrial development strategies.8 Thus cation of Sana’a’s labor force, enterprises, and industry in Sana’a is best restricted to light, non- business-support services provide a conve- polluting, water-conserving, processing, stor- nient platform for innovation. age, distribution and business service activities for which there is a compelling locational logic. Also, an economic development strategy for Sana’a desperately needs to address the city’s What are the industries and economic activity poverty, which means employment generation. clusters for which Sana’a has a comparative This leads to a strategy of promoting those advantage? And which of these will generate industry clusters for which Sana’a has a com- the most employment and will most contribute parative advantage, especially those which are to exports? These are as follows. labor intensive. 1) Tourism One area where the Sana’a Municipality can Sana’a, with its Old City and associated tra- directly influence the city’s economic climate ditional markets, is already Yemen’s premier is providing better infrastructure services (such tourist destination.9 And tourism in Yemen has as electricity and water, as well as continuing been identified as the economic sector with to strengthen its transportation infrastructure) perhaps the greatest comparative advantage. including accelerating expansion of air transport With only 300,000 visitors per year (and only infrastructure. 100,000 from outside the region) Yemen has a vast untapped potential. And Sana’a is the gate- Another concept to be explored in detail is way for tourists to the rest of Yemen. Improving the modern industrial park. Candidates might Sana’a’s tourism infrastructure and informa- include creating industrial parks on the periph- tion, diversifying its tourism “products,” upgrad- ery, such as along the Taiz and Hodeidah ing and enhancing its tourist sites, improving highways, and also creating a transport and site management, and training and improved business park associated with the new airport marketing are all activities that should stimulate development to the north of the city proper. tourism as a lead economic sector in the city. 7 For a listing of these needed reform options and steps to improve the business climate, see the matrix entitled “Investment Climate Problems and Reform Options for Yemen” in World Bank, Republic of Yemen: Investment Climate Assessment: Priorities and Recommendations for Accelerating Private-led Growth, May 2006, p. viii. 8 The cities of Aden, Al Hodeidah, and Al Mukalla have all prepared local economic development strategies and campaigns to capitalize on their comparative advantages for certain kinds of manufacturing, as part of CDS exercises carried out over the 2002 to 2007 period. 9 It should not be forgotten that in and around Sana’a are several natural and heritage attractions in addition to the Old City. 23 Conference tourism is linked to, and comple- education. Sana’a has not yet reached any- ments, general tourism. In this Sana’a has a where near the level of other capital cities in significant comparative advantage over other the region for such educational services, and it cities in the region, simply because it has a would seem that this is one area where private year around moderate and invigorating climate. investment and joint ventures, combined with When combined with the famed heritage sites a friendly regulatory environment, could gener- in and around Sana’a, it would seem that pro- ate considerable employment and also ancil- moting Sana’a as a destination for conference lary investment opportunities. visitors is an obvious success formula. Already there are several hotels in Sana’a that have 5) Real estate and construction conference facilities, and more are under con- In the last couple years Sana’a has begun struction. A small amount of strategically placed to be eyed by major Gulf real estate compa- promotion of Sana’a as a conference destina- nies as an investment opportunity for up-scale tion will yield considerable benefits. property developments. Given the huge finan- cial resources they have at hand, such inter- 2) Handicrafts and traditional est can only increase. The core of demand manufacturing for such projects is said to come from Yemeni Yemen has a long tradition of handicrafts and expatriates seeking to invest in real estate, and artisan manufacturing, and for many Sana’a in addition there is increasing general demand is considered the main center for such activi- for commercial and recreational projects. While ties. And handicrafts have direct and natural some may say that such high-end investments links to the tourist industry. Almost all engaged are hardly needed in a poor country such as in handicraft production are small and micro- Yemen, such property investments generate enterprises, and they could benefit greatly from considerable permanent as well as temporary support in such areas as (1) credit, (2) enhanced employment, and they stimulate secondary product models, (3) marketing and promo- demand for building materials, contracting, and tion outlets, (4) production space, and (5) skills building systems. training, especially for youth. 3) Private health services Strengthening Institutional Structures Yemeni’s currently travel to neighboring coun- and Capacities tries in large numbers (Egypt and Jordan in particular) for health services, because of The legal framework governing local govern- the poor level of health care and expertise in ment in Yemen rests on two pillars: the Consti- Yemeni hospitals and the poor reputation of tution of 1991 and the Law of Local Authorities the Yemeni health sector. It is estimated that No.4 of 2000. In addition, the Cleaning and City over US$ 200 million per year is spent abroad Improvement Fund (CCIF), local governments’ by Yemenis on health care. If it were possible most important financial instrument for service to attract serious private investment in modern, delivery, is governed by Law No. 20 of 1999, well-managed, and specialized health centers and Prime Ministerial decree (No.167) of 1999. in Sana’a, Sana’a could attract patients from In addition, there are several other laws that throughout Yemen and greatly reduce the need touch on various important matters of direct to travel abroad for health. relevance to local governments, such as ser- vice delivery, civil service, and budgeting. The 4) Private education services problem is that, in some instances, these laws There is strong and growing demand among represent a source of conflict and contradiction more affluent Yemenis, as well as resident with the overall legal and regulatory framework expatriates, for quality secondary and higher for decentralization. 24 Before unification and up to the year 2000, such a law have been written, no such law has Yemen was characterized by a highly cen- yet seen the light of day tralized administrative system with an elabo- rate network of de-concentrated field offices The present structure of the Municipality is of sectoral ministries and agencies. Following based on the general organizational structure the enactment of the Local Authorities Law in of governorates,10 but with a number of modi- 2000, the country was territorially divided into fications and additions. There are two kinds of local administrative units, each enjoying a jurid- organizational units: (1) those tied directly to ical status. the Governor, that is, the governor’s office, the executive office, and the executive agencies The Municipality of Sana’a (amanet al-a’asema (described in the next section), and (2) those sana’a) was formed by Presidential Decree No. tied to the Governor through an administrative 13 of 1983. The decree defined the borders of pyramid. The latter include 13 general admin- the Municipality and bestowed on it the status istrations (idarat aama) over which the deputy of a governorate (along with 19 other governor- governor (who as also the general secretary or ates in Yemen, one of which is the Governor- amin aam al majlis al mahali) presides. ate of Sana’a which geographically surrounds Sana’a Municipality). Another presidential There are also one or more governorate under- decree No. 2 of 2001 was issued dividing the secretaries (wakil al muhafadha) whose tasks Municipality of the Capital Sana’a into nine are determined by governor’s decree. Cur- administrative areas or directorates (muderiat), rently there are four such undersecretaries in plus added Bani Hareth District to the north as the Municipality, one for each of (1) cleanliness the Municipality’s 10th directorate. and environment, (2) office affairs, (3) finan- cial and administrative affairs, and (4) technical The municipal status of Sana’a, under which affairs. These report directly to the First Under- are grouped 10 districts, is unique in Yemen. secretary of the Governorate. As explained above, in other areas of the country there is a simple two tiered adminis- There are all together 16 organizational units in trative system of governorates (muhafadhat) the Municipality. Three of these are the Office and districts (mudiriyat), with no distinction of the Governor, the Administration for Inter- between urban and rural areas. For example, nal Control and Inspection, and the Technical the urban areas of both Taiz and Hodeidah Administration to Support Community Initia- extend across three mudiriyat, but adminis- tives. The other 13 are general administrations tratively these mudiriyat are undistinquishable (idarat aama). In addition, there are a number from rural mudiriyat and all fall equally under of executive agencies (al ajhiza al tanfidhiya), the relevant governorates. which are sectorally-oriented service delivery bodies. These are controlled by and report to The legal and executive status of Sana’a Munic- the Governor. These executive agencies are ipality as an independent local authority and technically branches of the relevant central capital of the nation and municipality, yet with ministries although legally they are part of the governorate status, is still somewhat a gray Municipality and their financing comes through area. Article 166 of the Local Authorities Law of it. The law on decentralization confers consid- 2000 states the necessity for promulgation of a erable local autonomy to these agencies but in special law governing the Sana’a Municipality, practice control by central ministries remains “which clarifies the powers and specializations strong, depending on the degree of political will which it enjoys and which aim at developing the towards decentralization. capital of the country.” Although partial drafts of 10 As set out in Republican Decree 269 of 2001. 25 There are also specific oversight committees decentralization legislation without clear hier- (ligaan) made up of members of the elected archical distribution of powers; duplication of Governorate Local Council. At present these tasks is common; and there is no differentia- are (1) finance and development, (2) ser- tion of local authorities as to size or location vices, (3) social affairs, and (4) tenders and or urban/rural nature. procurement. • The two levels of local authorities each have elected councils as the source of legitimacy, As mentioned above, there are ten districts and thus there are two sets of ultimate author- (mudiriyat), which make up the Municipality, ity within a single governorate. and each is geographically defined. Under the • The elected councils are given wide author- Local Authorities Law each district is an inde- ity in the law, but these powers are not clearly pendent local authority, with its own elected defined nor is there a clear division between local council and its own juridical personal- the roles of the elected councils versus the ity. The district administration is headed by an executive authorities. appointed general director (mudir aam) who • The organizational structures of local authori- reports to the district local council. The sectoral ties are complicated, frequently deviate from organs of the Municipality (for example, health, the form laid down in legislation, and suffer education, technical affairs, etc.) each have from duplication of efforts and tasks among service branches in the 10 districts. different organizational units. • Within the governorate organizational struc- Basically, the districts have a difficult time meet- ture, there is considerable duplication of ing the expectations and responsibilities con- responsibilities and tasks among the admin- ferred upon them in the Local Authorities Law, istrative units and the executive agencies. mainly because of a lack of qualified staff and • The sectoral organizations within the Munici- an inability to undertake the planning, program- pality (such as cleanliness, water and waste- ming, licensing, supervision, and control func- water, health, and education) do not follow tions envisioned in the law in parallel with the any common format. They are poorly inte- day-to-day functions of service delivery. grated into the governorate administrative structure, are sometimes historical accidents, Restructuring the Municipality cannot be seen and yet command considerable weight given in isolation of the context of decentralization the huge size of their labor forces (especially and governance in Yemen. Any proposals will education, technical affairs, and health) and have to consider factors and obstacles that their own revenue sources. come out of an assessment of the Municipality • Lack of local control over financial resources and also that have been identified in a number (which are mostly central) and weak local of studies of decentralization in Yemen: resource mobilization lead to small local partic- ipation in and control of development projects. • The understanding of “decentralization” is • There are weak human resource capacities at not always clear and can be confused with most local levels, which makes it difficult for straightforward de-concentration of responsi- local agencies to carry the functions bestowed bilities and tasks. upon them in decentralization legislation. • The Local Authorities Law represents a bold initiative that in one single step effected the Improving and restructuring the Municipality is wholesale transfer of powers and tasks to an imperative if the Municipality is to begin ful- local authorities, rather than transferring such filling its role as an institution that can provide powers progressively step by step, which has services to its citizens efficiently and respond led to confusion and conflicting interpretation. effectively to development pressures. Many • The two levels of local authorities (governor- structural alternatives are available. 26 ate and district) are given equal weight in • Unified Decentralized Municipality (one uni- run by an appointed Executive Manager fied administration) who runs the Executive Authority on a day- • Divided Decentralized Municipality (partly to-day basis. This manager must have high decentralized and partly de-concentrated) qualifications that might not be found among • Decentralized Municipality with Two Lev- State employees and thus secondment from els (decentralized to Municipality and district the private sector should be possible. He levels) remains accountable to the Chairman of the Local Authority who delegates most tasks to Through discussions with the Municipality lead- him. He would be similar to a “city manager” ership as well as knowledgeable institutional found in some municipalities in the West. experts in Yemen it has become clear that the first alternative—a unified, completely decen- This proposed system still needs administra- tralized Municipality—would best guaran- tive and service divisions that are geographic, tee the kinds of outcomes needed. It is worth i.e., what are presently known as mudiri- noting that a unified, single administration for yas or districts, but only as de-concentrated Sana’a Municipality has been popular with the direct branches or extensions of the Execu- Municipality’s leadership and was the intent of tive Authority (i.e. no elected councils and no an early draft of the special law that is needed legal personality). Their tasks may be (a) pro- for the Municipality. viding local neighborhood services and issuing licenses, (b) preparing budgets to be submitted The aim is to unify the city into one single to the City Council of the Municipality, (c) sup- administration, and this intention of a unified porting cooperatives, and (d) undertaking some city is found in the draft law for the Municipal- services that are economically and technically ity. This means that the 10 district administra- feasible at this small geographic scale. tions should not be isolated from the City entity. The institutional setup for the unified city would To actualize these proposals, many steps and have the following elements: actions need to be undertaken. These can be divided into two main areas: General assembly: This is the elected authority from which legitimacy for the Munic- First, refining, pruning or re-writing legal and ipality devolves, with powers which are equiv- procedural documents. This mainly concerns alent to those of the present Local Councils the draft law of the Municipality al Asama. This in Yemen. law must incorporate (1) unifying the city under a single enlarged local council, (2) confirming City council: This is made up from internal the main principles of the new structure, but elections from the general assembly, and leaving the details of the structure to subse- authority is delegated from it. (There is a par- quent writing of the executive regulations to the allel with shareholder general assemblies and law once finalized, and confirming some of the management councils in large companies.) main recommendations concerning the powers of the local authority over certain non-municipal Chairman of the Local Authority (amin al tasks. Also, some articles of the Local Author- asama): He would be elected by the general ity Law need to be revised that conflict with the assembly and is the head of the administra- refinements proposed here. tive pyramid. That is, this person chairs the city council and also heads the Executive Second, organizational building of the Munici- Authority. pality. The organizational structure needs to be part of the executive regulations of the Munic- Executive Authority: This is made up of ipality. Also, the required tasks and functions all executive units in one structure, and is need spelling out and assigned to the units of 27 Entities and Lines of Authority for the Proposed Restructuring of the Municipality LC members in the ten districts combine Chairman of General Assembly and Sana'a elect Municipality City Council and Head General of Executive Agency Assembly appoint elect Executive Manager of Sana'a City the Executive Council Agency Sana'a Executive Agency the structure. A “Procedural and Organizational members and Amin Al Asama. Also, training Guide” to define the work procedures and tasks should be focused on branch administrations and functions needs preparation. and offices, particularly as concerns revenue collection. Detailed training programs should Third, and in parallel, undertake the activa- include basic computer training, participatory tion of the organizational infrastructure of the strategic planning, monitoring and evaluation, Municipality. This will require building a com- the promotion and coordination of community puter based management information system: initiatives, assets management, and revenue diagnosing information needs, identify priori- collection. ties, and ensuring information is applied in each of the structure’s units. Better Financial Management for Fourth, initiate training for tasks and functions the City and procedures. This requires diagnosing train- ing needs, preparing training programs, making The financial system for Sana’a Municipality fol- available training agencies, and progressively lows in general that of governorates authorities applying programs. While training needs are as set out in the Law of Local Authorities No.4 of across the board, a particular focus should be 2000, but with a number of variations. Because placed on the executives and staff of the Munic- of its unique structure as an urban governorate ipality administration who can insure continu- with 10 districts there are three separate bud- 28 ity beyond the term of office of elected council gets that relate to the city’s financing: the Amana Districts Budget for the 10 districts; the Amana are not stable and depend on the national fis- Central Budget; and the Amana’s Cleanliness cal condition, limits the ability of the city to and City Improvement Fund (CCIF). As can even implement the commitments approved be seen by comparing these budgets over the by the annual plans. 2004–2006 period, the Amana Districts Budget was the largest in both revenues and expendi- Revenue bases: The study shows that reli- tures (representing over 50 percent of the grand able data bases exist only for some revenue total, and the Amana Central Budget was the sources. Furthermore, the levels of sophistica- second largest. The Sana’a CCIF was a rela- tion of databases vary markedly among vari- tively minor player, representing between 10 ous revenue sources. While serious efforts and 16 percent of grand totals. are made to develop data bases in areas of Al Zakat and educational services, others relat- An overall assessment of Sana’a Municipality’s ing to property taxes, taxes on free enterprise, finances allows a summarizing of the areas in notarization, and registration services suffer greatest need of improvement. from extreme negligence. In addition, data base coverage of the actual size of revenue sources Central subsidies: Fiscal conditions of is limited, especially for sources such as katt, Sana’a city and the fiscal relationship and and some types of Al Zakat, real estate, and arrangements between the center and the free enterprise revenues. city shows that the city’s budgets are heavily dependent on the central government subsidy Tax liability estimation: It is evident in the to finance its activities. The central recurrent case of Al Zakat and qatt, personal estima- and capital subsidy accounted for 73.4 per- tion of due taxes/liabilities remains a major cent of Sana’a’s total revenue in 2006/2007. method in determining the amount of due This reduces the ability of the city to effec- taxes. Complexity of the tax estimation and tively respond to the needs and preferences collection system results in the absence of of its residents, since most of these subsidies transparency between the income collect- are specific purpose set by the central minis- ing units and the tax and fees payers. Except tries. In addition, the fact that these subsidies in very tight limits, the local districts do not Total Revenues and Expenditures for Sana’a’s Different Budgets in 1,000 YR Cleanliness & City Amana Districts Amana Central Improvement Budget Budget Fund Grand Totals Year 2004 Total Revenues 8,358,074 4,968,619 2,181,842 15,508,535 Total Expenditures 7,175,681 6,035,771 2,246,121 15,457,573 Year 2005 Total Revenues 9,804,088 6,145,841 2,728,357 18,678,286 Total Expenditures 9,239,638 5,922,860 2,483,275 17,645,773 Year 2006 Total Revenues 11,242,929 5,124,031 2,300,148 18,667,108 Total Expenditures 12,611,333 7,631,860 2,167,137 22,410,330 29 have the necessary flexibility to extend total or partial tax exemptions nor to reschedule Structure of Expenditure for payments. This rigid taxation practice leads the Municipal Central Budget to tax evasion or settlements outside the sys- (2003–2006) tem, hence seriously reducing the potential revenue. Investment Wages and Expenditure Salaries Collection methods: Field collection is the 46% 34% major collection method, while the efforts to introduce electronic collection are very mod- est. A comparison of the target to actual revenues indicates the need for major devel- opment of tax collection methods. There is a lack of awareness among tax collectors and local payers alike, and a lack of incentives and commissions for collection. The budgets set Recurrent Goods and Transfers and for collection efforts are very limited because Services Subsidies of a very high level of inaccuracy to the extent Maintenance 15% 4% that tax estimation is quite arbitrary. 1% Payment coercion: Because of the spe- cial nature of Yemeni society and its intricate the fields of revenue estimation, collection social interrelationships, the use of coercive methods, and collection cost. methods to force payment of taxes is quite difficult. Political and social figures interfere Investment design and implementation: so as to thwart the usage of coercion meth- Most of the investments implemented at the ods. Tax enforcement entities, particularly district level are not based on technical fea- the police force, do not cooperate in applying sibility studies. Investments that have had coercive methods for collection. Deteriorating feasibility studies were conducted by the economic and social conditions in some dis- governorates, the executive offices at the tricts cause the authorities to understandably governorate level, or the central agencies. refrain from using coercive collection meth- The lack of technical units at the district level ods. Tax authorities resort only infrequently to is the main reason standing behind this situ- the legal system while the system itself rep- ation. At the same time, the district does not resented by the courts is usually indecisive have a budget for technical feasibility studies when dealing with tax evasion. and it is not allowed to finance these studies from investment funds. Securing specialists Administrative capacity: While the mul- and technical expertise is one of the main tiplicity of the units responsible for differ- obstacles facing the districts. The districts, ent steps in managing the local revenues is according to the current wages schedules, unjustified, the number of employees in key cannot afford the market price of this type of management units is insufficient and the staff, while the central government entities quality of their technical and proficiency lev- and the governorates have not introduced els is inadequate to their tasks at hand. Lim- enough financial and social incentives to ited budgets are allocated to management their staff to move to the districts. The dis- and this has led most districts to concentrate tricts also encounter difficulties in imple- on permanent, rather than part-time or sea- menting investments: inadequate central sonal employees. Research efforts in reve- investment subsidies; districts not having full 30 nue management are modest, particularly in control on investment allocation because of fluctuations; lack of qualified staff and cad- lowing: re-zoning through changing the status res; lack of efficient contractors at the dis- of land usage; implementing a land pooling trict level; lack of available land to implement scheme whereby owners of small plots of projects; and inefficient and biased choice of land will be encouraged to combine their land contractors. together for profitable development under the governorate concerned; and applying valori- zation charges. These charges are taxes on Sana’a Municipality Central the increase in land values that results from Budget: Composition of Total the provision of infrastructure, payable by the Local Revenues (2003–2006) land owner to finance urban infrastructure. Share of Central-local fiscal arrangements and Governorate possible areas for reform: Ideally, subna- Share of Shared Revenue tional revenue system reform should be done General Shared 12% Total in the context of an examination of the larger Revenues tax revenues 1% 21% national revenue system and its reform, not as a self-standing reform. In Yemen, multi- Total non tax ple redundant revenue sources should ide- Capital Central revenues ally be consolidated, but broader public 4% sector restructuring efforts are needed. For Subsidy 0% example, without basic civil service reform, it Capital Revenues is not expected that revenue administrators 0% and collectors would effectively perform their functions. Recurrent Central Subsidy Initial revenue reforms should focus more on 62% taking steps to enhance own-source revenue generation and to link the extra revenues to improved service delivery. This does not mean that reforms of the shared tax and transfer Local fiscal autonomy: Local revenue system could not proceed as part of a larger sources are strongly controlled as the cen- review and reform of the national public reve- tral government fixes the tax rate and tax nue system. Sharing of specific sources of rev- base of most of the local revenue sources. enue is most useful, if done on an origin basis. Various reports have identified a number of This helps to establish the fiscal capacity of a problems in the present local authority rev- local government unit and to define the role of enue assignments and procedures, such as a redistributive transfer system. lack of buoyancy, lack of local autonomy to set the tax base rate (at least within certain The Local Administration Law gives local ceilings, and control and manage the tax authorities a considerable role in preparing and administration; nonconducive assignment of monitoring the implementation of local invest- revenue sources; weaknesses in the reve- ment budgets, although it gives almost no role nue sharing arrangements; and lack of local at the recurrent side of the budget. Concerning capacity and incentives to improve revenue the investment side, the preparing stage is the mobilization. full responsibility of the executive office at the district diwan. The preparation process consid- Potentials to increase local revenues: ers relevant laws and regulations, data, and Potential procedures to be explored to information collected on the district investment increase local revenues could include the fol- performance and the central and local devel- 31 opment plans. The capacity of the executive • Clearly outline, describe, and specify jobs office members may not allow for an effective and tasks. preparation process. The flow of data and infor- • Emphasize cooperation between the reve- mation at the local level regarding investment nue collection units and the relevant execu- implementation is slow in a way that weakens tive authorities to facilitate the collection task. the process. • Increase the awareness of the advantages of taxes and the role they play and the ideal In the same vein, local level officials face a relationship between the collection units severe problem in evaluating the intergovern- and the tax payers. Promotional campaigns mental transfers. Many institutions are involved should address both the tax payers and the in estimating the values of intergovernmental tax collectors. transfers and in informing the districts about • Reconsider the budgets allocated to manage their transfer shares. According to the financial local revenue bases, particularly those relat- regulations, the districts should be informed ing to levying and collection systems and about their shares by the beginning of May. coercive payment methods. However, practice reflects very different experi- • Develop an integrated/consolidated budget ence of time delays. for the city of Sana’a. • Develop and activate a city/district level infor- Field visits and interviews show that the city of mation system and GIS to be used by local Sana’a and its affiliated districts pay little atten- authorities for planning and impact assess- tion to improving the management of public ment and provide training to local staff on the assets located and owned by the city’s districts. operation of the system. The city does not have an accurate database • Improve performance of district authorities of these assets and their ownership history. with enhanced capacities in public expendi- Also, the city management does not have a ture and resource management and the pro- plan to maximize its financial benefits from motion of social and economic development using these assets. Public assets located in and the alleviation of poverty. Sana’a represent a considerable potential rev- enue base, and the city should invest in these Successful fiscal reform of local authorities assets to generate more income in the future. in several countries shows that the general At the same time, the improvement and the approach has always been to increase the rehabilitation of public assets would have indi- autonomy and authority of such units through rect positive effects on the economy of Sana’a decentralization. Efforts have been exerted to in general and on the business environment in diversify the sources of financing these units, particular. increasing their budget allocations and improv- ing and developing the standards of their Following on from the assessment of Sana’a’s personnel and their system’s software and financial management system, it is possible to hardware. In the case of Sana’a, the following develop a strategy for improving financial per- are discrete actions that need to be taken. formance. First, a number of key elements or principles that govern the strategy are Set key performance indicators that are identified: important to increase the efficiency and effec- tiveness of the revenue management pro- • Invest in the infrastructure of various units cess, and continuously review the sketched managing the local tax bases such as data- indicators. bases, collection and levying methods, research and development, and transpar- Redefine the tax base levels for some rev- ency to enhance the effectiveness of the enue sources with the purpose of either 32 points of revenue collections. simplifying the procedures or increasing the return. Among these are property taxes, Low-density sprawl within the inhabited improvement fees, and toll fees on roads. area of the municipality has resulted in a relatively low residential gross density of 130 Introduce an integrated budgeting pro- persons/ hectare, which represents an inef- cess at the city level. This needs hard nego- ficient process of land consumption process. tiations with the Ministry of Finance and line This has resulted in more expensive service ministries and service authorities at the cen- delivery and an overall less efficient urban tral level. However, alternatives could be pattern. adopted locally, such as setting up a commit- tee for investment planning at the city level. Limited prime sites for investment proj- Also budgeting and planning departments ects. The majority of land parcels with highest should be integrated for this effort. values or highest development potential are already occupied by low development density Enhance revenue collection require- or suboptimal land uses from an economic effi- ments. Three aspects are considered impor- ciency perspective. In addition, many land par- tant to enhance revenue collection process cels today along main arteries or within inner in Sana’a’s revenue generating departments: city areas belong to the military or other gov- (1) optimum rate structures, (2) appropri- ernmental organizations, which use those par- ate rules and regulations, and (3) human cels in economically improper uses as camps, resource capacity development. storages, and administrative buildings. Reduce revenue leakage. To reduce reve- The heritage value of Old Sana’a and nue leakage, Sana’a city may perform some other historic areas of the municipality or all of the following actions: (1) improving the remain under threat. Despite the remark- direct control process, (2) enforce strict and able conservation and restoration efforts heavy penalties for noncompliance, (3) disci- carried out by General Authority for Preserv- pline financial staff that may have contributed ing the Heritage of Yemeni Cities with the to leakage in local revenues, and (4) better support of several international organiza- link tax payment with services provided by tions, Old Sana’a still lacks a comprehen- local government. sive development plan that utilizes its unique potentials for economic revitalization and Reduce revenue collection costs. Improve- integrates it with the overall urban context. ment in revenue performance is also critically The new proposed master plan should come dependent upon the ability of local authorities up with a clear strategy and action plans on to minimize the cost of collecting revenues. how to integrate the Old Sana’a with the rest Based on this analysis, there are four actions of the municipality, protecting its heritage that could be taken by Sana’a city to improve and image from modern development. Such their administrative efficiency: (1) simplifica- a comprehensive plan must also address tion of administrative measures and proce- conservation and revitalization of a number dures, (2) calculate collection efficiency for of other historic and heritage areas in and each type of revenue, (3) consider elimina- around Sana’a, such as parts of Bir Al Azeb tion of very inefficient sources of revenue, and (including Al Qaa, the old Jewish Quarter), Al (4) consider direct ways to cut operating costs. Rowda, and Beit Baus. Improved Urban Planning Lack of sufficient open spaces and parks. In spite of the various parks created by the The main physical, spatial, environmental, and Municipality within the last five years, the city institutional problems facing urban planning in still suffers from the absence of open spaces Sana’a can be summarized as follows. within inner city areas. 33 A core problem of planning in Sana’a is Detailed neighborhood plans: a flawed tool that it is a city without a comprehensive for planning. The Municipality is divided into plan or a vision for its future growth. The nine planning sectors, each sector is divided approved 1978 Master Plan has become into nine areas and each area is divided hopelessly obsolete, and the 1998 Cuban- into nine neighborhoods. The neighborhood Yemeni master plan was never adopted. ranges from 45–60 hectares with an estimated As a result, urban planning efforts concen- population ranges from 7,000 up to 12,000 trate on short-term problem solving rather persons. Each neighborhood is planned to than long-term strategic planning. Today, the have a primary school, garden, and mosque. Municipality, in order to promote investment If the population reaches 12,000, then a post and cope with the fast informal development office, police office and a high school should taking place on the peripheries, is forced to be included in the neighborhood plan. The prepare detailed neighborhood plans for can- detailed neighborhood plans that the urban didate areas for urban development. The planning office typically produces are cookie- Municipality lacks a sustainable development cutter plans, which follow inappropriate plan- strategy for its main environmental assets ning norms and standards that are derived (whether natural or man-made), such as from the neighborhood planning unit concept. water resources, agricultural areas, and the The plans rarely look at existing land own- unique heritage. ership patterns or existing buildings on the ground. This is simply because there are no Lack of clarity of responsibility in plan- up-to-date detailed maps. Usually land own- ning matters and poor coordination. Up ership is not known or properly registered until 2006, urban planning was the mandate until the urban planning office prepares the of the Ministry of Public Works and Roads detailed plans and publicizes them. Then, the through the department of housing and urban landlords start to claim their rights, try to prove planning or through its executive offices in the their ownership and anticipate compensation Municipality, with hardly any respect to local from the municipality in case their land has needs and priorities. With the establishment been confiscated for the purpose of establish- of the General Authority for Lands and Urban ing local roads or public services. It is worth Planning (GALSUP), the planning role has mentioning that detailed planning can be seen been placed centrally in contrary to the Local as a tool for wealth-production for landowners. Authorities Law. As such, the municipal urban According to local experts and officials from planning office, previously affiliated to Ministry the urban planning office in the Municipality, of Public Works and currently under GALSUP, land prices may increase up to ten times after has continued with its former limited mandate the Municipality prepares and publishes the of designing detailed neighborhood plans, detailed plan of a particular area. This explains amending detailed plans to reflect the situa- why in several cases, certain areas have been tion on the ground, and monitoring the imple- planned prior to other ones. In fact, many influ- mentation of the master plan and detailed ential landlords attempt to influence planning subdivision plans, especially in ensuring decisions so that they can benefit from wind- the alignment of main roads. However, the fall gains upon the sale of their lands. responsibility of monitoring the implementa- tion of plans is questionable as the respon- Lack of building regulations. The Munici- sibility of inspection and issuing the building pality does not apply any building regulations permits has been retained under the de-con- apart from the maximum permissible heights centrated arms of the Ministry of Public Works along the airport flight path. The lack of build- and Highways while planning has become the ing regulations is considered the fault of responsibility of GALSUP and its de-concen- GALSUP, since the executive by-law that is 34 trated offices with hardly any coordination. needed to put into application the new build- Constraints to Development and Main Areas of Expansion 2005 Source: Team International, Comprehensive Traffic Management Study for Sana’a City, Land Development and Population Forecast, November 2006. 35 ing code has not been prepared, which means results of high risks and transaction costs result- that the 2002 code can not be enforced. It is ing from unclear and unenforceable property important to note, however, that building reg- rights. The existing systems for administering ulations alone do not mean much unless if land tenure security (namely through the two pil- there is enforcement capacity in place (which lars of land registration and dispute resolution) today does not exist). and managing state-owned lands are fraught with many problems. There would be an urgent Lack of an effective land registry. Although need to setup a clear and coordinated mech- land registration is sanctioned under legisla- anism for land management and disposition tion, in Sana’a (as well as throughout Yemen), within the municipality administrative jurisdiction it hardly functions. There is no cadastre or in order to ensure proper spatial development, even property maps, and registering land according to the new proposed Master Plan. is at the discretion of the land owner. Since there are stiff fees associated with land regis- Another alternative for ensuring the availabil- tration, it is no wonder that few landlords take ity of land for mega investment projects would this option. The effect, in terms of land man- be through purchasing privately owned land, agement, is obviously a negative one. which would require huge cash outlays to com- pensate the original land owners, unless such Poor of management of state lands. Most land assembly were carried out far in advance land in and around Sana’a is considered agri- of development pressures and the consequent cultural and thus is privately owned. State rise in land prices. lands are supposed to include all steep terrain with slopes in excess of 20 percent as well Such a situation suggests that there is an imme- as certain institutional parcels. But there is no diate need to initiate a process of land bank- inventory of state lands and no coordinated ing. Under this system, the Municipality would attempts to protect them. Encroachment on acquire land in key fringe locations for future state lands is rife, not only be informal squat- urban development. Through this initiative, the ters but more often by land speculators who Municipality should concentrate on acquiring claim segments of state lands as extensions remote and presently inaccessible land which to their adjacent agricultural parcels. can be bought from private land holders at min- imal prices. Then, the land bank would regu- Based on this analysis, a number of recom- larly release its land for such development mendations can be made that would, over sectors as housing, economic development, time, result in a much improved and effective and services as needed to control land market, urban planning and land management sys- prevent land speculation, and recapture some tems. These are highlighted below. Recom- of the unearned increment because of rural-to- mendations are made with the knowledge that urban land conversion. a complete update of the Sana’a Master Plan is being launched and will be carried out by inter- Another possible modality for acquiring land and national consultants. guiding development would be through what is called “land readjustment” or “land pooling.” A Provision of Land for Residential and land readjustment scheme is typically initiated Investment Activities and the Concepts by designating an area that is to be converted of Land Banking and Land Pooling and from agricultural to urban land use for land read- Readjustment justment. A subdivision plan is developed for a Access to urban land (both for investment and unified planning of the area. Provision of infra- residential use) represents one of the critical structure and services is financed by the sale obstacles to economic growth, as well as to of some of the plots within the area, often for 36 poverty alleviation in Sana’a. This is mainly the commercial activities. The original landowners Sawaan Sites and Services Project The Sawaan sites and services project was started in the mid 1980s by the then Ministry of Housing and Urban Develop- ment with financing from the World Bank. It involved cre- ating a complete new neigh- borhood on state land in what was then the northeast fringe of Sana’a, with small serviced plots of land, plus public facili- ties as well as a market. Ben- eficiaries (mainly civil servants) progressively built their own housing, partly financed by long-term loans. Although for- gotten by most decision-mak- ers, this project today is fully populated, vibrant, and well integrated into the urban fab- ric. It should be recognized as a success and an important example of efficient and appro- priate urban development that taps the considerable energies of the Yemeni owner-builder. are provided plots within the reshaped area work, improved land information and land man- that, though smaller in size, now have access to agement capacities are needed. infrastructure and services. Land readjustment in Sana’a should be considered, but it will require Better Land Information Systems and completely new enabling legislation which Land Management allows compulsory taking by the state of lands It is recommended that a number of steps be being readjusted. And for land readjustment to taken to improve land information systems and 37 land management mechanisms. The following use are complicated technical and political are the most important: issues, it is worthwhile considering measures to meet the challenge, since such measures • Create an accessible information clearing- will have consequences for Sana’a’s develop- house on Sana’a’s land and spatial develop- ment planning and land management. Some ment. possible measures are listed here. • Improve, expand, and modernize land titling and registration systems and associated tax • Restrict irrigated qatt production in and regimes. around Sana’a (with implications for agricul- • Inventory and protect State lands in and around tural land use policies). Use surface water to Sana’a (as described in the previous section). recharge aquifers by channeling sailas and • Improve or streamline court procedures for through upstream rain harvesting (with impli- land contestation and dispute resolution. cations for surface water and flood manage- • Adopt a straightforward and low-cost building ment systems). code system for Sana’a that would apply to • Restrict water consuming industries (with all new structures. implications for industrial development poli- • Reform the detailed neighborhood planning cies and industrial zone management). system and re-plan neighborhoods, utilizing • Seek new sources of water outside the relaxed street and public space standards Sana’a basin, either through develop- and aiming at smaller plot sizes. Such re- ment of new water fields or through water planning of neighborhoods would be carried desalination (with implications for water con- out using up-to-date satellite imagery and sumption pricing for Sana’a’s inhabitants and would reflect on-the-ground reality. generating economic returns for the huge investments required). Improving Urban Planning Skills and Capacities At present there is only a handful of dedicated Comprehensive Approach to Urban planning officials with basic planning skills and Upgrading in Sana’a the will to improve them, especially with more computer-oriented applications. Most other There is little systematic information available people on the planning staff, both in the Munic- on informal settlements in Sana’a. No compre- ipality and GALSUP, are simply occupying hensive inventory and classification of infor- their positions. What is required is first a com- mal settlements has been undertaken so far prehensive skills and training needs assess- and the available information is limited to a ment, followed by the selection of a cadre of brief description of the main features of the young motivated employees in the relevant settlements covered and some statistics on departments for intensive and on-the-job train- socio-economic characteristics and housing ing. Revision of detailed neighborhood plans, conditions. based on reality on the ground, would be an excellent means for practical training. Also, there is no official standard definition of informal settlements in Yemen. Informal areas Dealing with the Water Shortage are usually labeled as “ashwa’i”, i.e., “ran- Sana’a’s looming water crisis could compro- dom” areas with a connotation of chaotic and mise any development strategies and could unlawful development. They are also often threaten Sana’a’s very survival. Without strict associated with poverty, marginalization, and conservation and effective water management, precarious housing conditions. Perceptions of Sana’a is facing a dry and inhospitable future. “’ashwa’i” areas vary and are mostly informed While the subjects of potential water sources, by shallow and impressionistic media reporting 38 water depletion, and rationalization of water and personal experience. In view of the fact that information on infor- ning, service provision, and socio-economic mal residential development in Sana’a is development programs and that require spe- extremely scarce and definitions of these cific approaches to deal with their specific areas vary widely, it was decided to adopt a problems. rather broad definition that allows for capturing the distinct features and complex dynamics in The 35 areas were classified into four different various types of informal areas. Informal areas types, including sub-types: are thus defined as “areas in which land is squatted on or subdivided without follow- 1. Slum pockets (two areas) ing an official subdivision plan and which 2. Informal areas within or close to the core are informally developed without adher- urban built-up area (eight areas) ing to any official planning and building 3. Informal areas on the far urban fringe regulations.” a. alongside or close to major roads (six areas) or The informal areas covered in the Sana’a CDS b. village extensions (nine areas) Urban Upgrading Study were initially identi- 4. Informal areas on land that was reserved fied through analysis of maps and satellite for images. The final selection was made after a. the preservation of public goods (three repeated field trips to all of these areas. The areas) or distinction between formal and informal areas b. other nonresidential purposes (seven was not easy and boundaries have to be ver- areas) ified in future detailed studies. The informa- tion collected on the different areas included in Population figures and densities could only be this study provides, nevertheless, a sufficiently estimated roughly, which was done by defin- clear general picture about informal areas and ing the boundaries of each area on GIS imag- the phenomenon of informal residential devel- ery of Sana’a. It was found that informal areas opment to allow for the formulation of a strategy in Sana’a host between roughly 313,000 and and action plan. 390,000 inhabitants (low and high estimates of density and population) or between 16.5 per- Altogether 35 informal settlements were iden- cent and 20.5 percent of the city’s total pop- tified in Sana’a. They are located in six of the ulation. Even though these are rather rough ten districts of the city as well as on the urban estimates, they clearly show that residential fringe. Four areas were established alongside informality is a phenomenon of scale. Informal sailas (mostly dry river beds), seven areas on areas appear to accommodate a significant hills and steep slopes, 23 areas on private agri- percentage of Sana’a’s population growth. The cultural land and adjacent mountains (mara- 2004 census indicates an increase of 744,207 hiq), and one area consists of tents and shacks individuals in Sana’a during the period of 1994– erected besides a main street. With the excep- 2004. The population estimates suggest tion of the latter, all informal areas were estab- that around one third of these households lished between 1990 and 1995. Altogether 23 have found housing in the 35 informal areas areas were at least partially planned ex-post included in this study. but plans were never really enforced and devel- opment continues largely informally. So far, the government has no strategy to con- trol, contain, or guide informal residential devel- Based on international experiences in many opment. In some areas, the Municipality tries countries, it is possible to group the 35 areas to control informal development by prohibitions, into a number of typologies, each of which which it is unable to enforce. The main instru- have a set of common features that repre- ment of government response is an ex-post sent particular challenges for urban plan- planning mechanism, i.e., the preparation and 39 approval of detailed neighborhood plans that consist of the street layout and location of basic services such as a school, a mosque, and a Type (1): garden. These detailed plans are not embed- Haret Al Lakama ded in any broader structural planning or stra- tegic vision and are usually not enforced. In practice, most post-planned areas look virtu- ally the same as unplanned areas and planners themselves use the term of “takhtit ‘ashwa’i” (random planning), which reflects the fact that development in post-planned areas continues largely informally. Slum pockets are considered Type (2): illegal and unacceptable and the favored solu- Sailat Al Shahira tion is demolition and resettlement. Most slum dwellers were resettled in the Sa’wan area where the state has built small, low-cost hous- ing units for them. It is considered necessary to develop a strat- egy that deals not only with existing informal areas but addresses also the phenomenon of informal residential development as an ongoing Type (3a): dynamic. Despite the variety of features and Qa’ Al Qaidi dynamics in different types of informal areas, these areas have many challenges in common, most notably the following: • Service provision and upgrading of deficient services and finance of needed investments • Lack of or inappropriate planning that takes place without a vision for the incorporation of informal areas in a more comprehensive plan Type (3b): for the city Asar Village Ext. • Challenge to secure land for infrastructure and service provision because of encroach- ment on state land and inflating land prices after the start of planning Other problems and challenges apply only to part of the areas, most notably the following: • Environmental problems and health hazards Type (4a): Al Khafji • Difficult access, dangers of land slides, col- lapse of buildings, and other hazards related to difficult topography • Inflated costs to extend infrastructure and provide services to low-density areas and to areas with difficult access and topography 40 Type (4b): Houd Sana’a • Difficulties to preserve public goods that are 5. Incorporate economic development con- endangered because of (continuing) informal cerns into planning for development urbanization 6. In areas with a high concentration of the • Land disputes that sometimes turn violent poor, combine physical with socio-economic • Overcrowding and unhealthy housing development interventions and engage mul- conditions tiple actors • Socio-economic problems related to pov- 7. Ensure residents’ participation in planning erty and a high concentration of poor and low and development income residents It is possible to present seven key elements of These issues need to be addressed within a the proposed strategy for dealing with informal comprehensive strategy that consists essen- residential development. They are intended to tially of two pillars: (1) remedy of problems delineate concrete paths of action, which are related to the existing situation, i.e., integrated taken up and translated into first steps in the upgrading of selected areas and (2) guidance last section presenting the proposed action of the ongoing informal urbanization process plan. The key elements proposed are the that implies the acceptance of a certain level of following: informality but avoids the most urgent problems related to it. • Secure state land and land needed for infra- structure and services The principles listed below are to be under- • Declare pilot development zones for guided stood as guidelines for the future design of fringe informal development interventions and actions: • Carry out integrated upgrading projects in selected mature informal areas 1. Address development dynamics, not only • Quickly identify tailored and feasible solu- the existing situation tions for areas where crucial public goods are 2. Don’t try to prohibit continuing informal res- endangered idential development, rather aim to orga- • Create an information system that allows for nize and guide it continuous monitoring and effective needs 3. Preserve access to cheap land for low- assessment income strata, but avoid creating develop- • Adapt planning tools and increase enforce- ment dynamics that boost further expansion ment capacities of low-density informal areas • Improve intersectoral approach for service 4. Anticipate service needs, prioritize staged provision. service provision, and cooperate with the private sector to ensure provision of essen- tial services 41 Implementation Agendas for Action It is for the stakeholders in Sana’a’s develop- This strategy has been crafted from an under- ment—city and central government officials, standing the city’s strengths, comparative private sector and academic leaders, and rep- advantages, and many challenges it faces. resentatives of the population—to carry for- This understanding has led to five compo- ward the vision and strategies for the city’s nents for the overall strategy. Each has a stra- sustainable development. They will ultimately tegic goal and each has a number of proposed be responsible for periodically updating, imple- actions associated with it, as is summarized in menting and monitoring their City Development the following boxes. Strategy over the next 20 years. Economic Development Strategy The strategy is two pronged: (1) Stimulate private sector growth in ways that maximize contribu- tions to the national economy, complement economic activities in other urban centers, and pro- vide support for crucially needed improvements in the national business climate; (2) Promote those service and industry clusters for which Sana’a has a comparative advantage, especially those which are labor intensive, to generate maximum new job and enterprise opportunities to tackle the city’s acute poverty. Proposals and Actions 1. Develop high quality and secure investor zones (industry and business parks) 2. Promote Sana’a’s tourism, as a destination for tourists, as a tourism gateway for the rest of Yemen, and as a location for international conferences and expositions 3. Promote Sana’a’s handicraft sector 4. Encourage private investment in specialized health and education facilities 5. Encourage foreign and Yemeni expatriate investment in prime real estate projects 6. Establish economic development committees in the Municipality and perhaps a higher busi- ness council 7. Reform and improve business-related administration in the Municipality (e.g., licensing, local taxation, and land registration) 42 Municipal Finance Strategy The aim is to improve financial performance of the Municipality. The strategy is to increase the autonomy and efficiency of the Municipality’s financial system by diversifying and increasing the sources of revenues, by rationalizing budget allocations, by developing performance standards for financial departments of the Municipality and their personnel, and by improving and comput- erizing budget information systems. Ultimately the strategy is to integrate the city’s budgets into one unified system. Proposals and Actions 1. Reduce revenue collection costs by simplifying procedures and administration and calculat- ing collection efficiency for each type of revenue 2. Enhance revenue collection by training staff of revenue departments 3. Identify new tax or fee payers, improve valuation of tax objects, and calculate the revenue capacity for each type of levy 4. Set performance indicators for revenue management and continuously review the sketched indicators 5. Create a committee for investment planning at the Municipality level to coordinate with all rel- evant central ministries and agencies as well as with the city’s districts 6. Integrate the Municipality’s budgeting and planning departments and establish a city and dis- trict level finance information system 7. Reduce leakage in Municipality revenues and expenditures by improving financial control, by strictly enforcing heavy penalties for noncompliance, and by disciplining staff Institutional Development Strategy The aim is to improve the Municipality, which can provide services to its citizens efficiently and respond effectively to development pressures. The strategy is to unify the city into one single administration, including the ten district administrations, so that the Municipality can function as one “corporate” entity. Proposals and Actions 1. Unify the elected bodies into one General Assembly with a small City Council, headed by an elected Amin al Asama 2. Empower the City Council with policy functions through specialized committees 3. Create a unified Executive Authority with all line units in one pyramidal structure, run by an appointed Executive Manager under the Amin al Asama. 4. Prepare a separate law for the Municipality el Asama with executive regulations, and modify national legislation as necessary 5. Establish the organizational structure based on clear tasks and functions of the units, gov- erned by procedural and organizational guide 6. Rationalize the specialized executive agencies of the Municipality (Cleanliness Fund, Local Water and Wastewater Corporation, Education, and Health Offices) 7. Restructure district administrations as functional branches of Municipality executive agencies 8. Launch training programs for Municipality nonelected staff that are based on clear training needs assessment 9. Building a management information system for all of the Municipality’s executive units 43 Urban Planning Strategy The aim is to develop a much improved and more effective urban planning and land manage- ment systems for the Municipality. The strategy is to adopt better information, planning, and land management mechanisms which, over time, give the Municipality more control over urban devel- opment. This strategy will complement the Sana’a Master Plan updating exercise, which is to be carried out by international consultants Proposals and Actions 1. Improve future land delivery through adopting the concept of land banking 2. Establish an accessible and dynamic land information system 3. Inventory and protect State lands in and around Sana’a 4. Improve, expand, and modernize land titling and registration systems and associated tax regimes 5. Adopt a straightforward and low-cost building code system for Sana’a which would apply to all new structures 6. Reform the detailed neighborhood planning system and re-plan neighborhoods, utilizing relaxed street and public space standards and aiming at smaller plot sizes 7. Improving urban planning skills and capacities 8. Improving revenue generation from the process of urban development Urban Upgrading Strategy The aim is to improve the livelihoods of those living in disadvantaged areas and also to accom- modate future inhabitants in improved urban conditions. The strategy is to deal not only with exist- ing informal areas but to address also the phenomenon of informal residential development as an ongoing dynamic, through undertaking pilot upgrading projects in selected areas representative of informal settlements typologies (including fringe informal areas just beginning to develop) and, through learning and feedback, to apply proven mechanisms to other areas on a rolling basis. Proposals and Actions 1. Secure state land and land needed for infrastructure and services 2. Declare pilot development zones for guided fringe informal development 3. Carry out integrated upgrading projects in candidate mature informal areas 4. Quickly identify tailored and feasible solutions for areas where crucial public goods are endangered 5. Create an information system that allows for continuous monitoring and effective needs assessment 6. Adapt and rationalize planning tools (such as neighborhood plans) and increase enforce- ment capacities 7. Improve intersectoral approach for service provision Can the strategies and proposals of the five towards a particular audience (both within components be considered together as one the Municipality and in other agencies), and cohesive strategy? Each component is of a dif- each component strategy has different implied ferent nature, implying different approaches. scope, stages and timelines. Thus it would be 44 The proposals in each component are oriented difficult to say they hang together easily. It is not logical to try to force the five compo- inghouse for urban development informa- nents into one single framework or one sin- tion within the Municipality. gle plan of action, nor is it possible to say that one component should have priority over the 3. Capacity building and human resource other. The challenges and problems that each development (HRD). Developing human component addresses are so important that resources, training, and raising manage- a “across the board” approach is required. ment capacities have been identified as key This means that the proposals and actions tasks in four of the five components. Such contained in all five components should be tasks must concentrate on improving the launched together. Progress in one compo- performance of key personnel in the Munic- nent may be rapid and relatively easy, and ipality and associated agencies. Thus these in others obstacles and resistance will inevi- persons must be identified as part of coor- tably arise. And within a component some dinated training needs assessments for the proposals may be adopted with little effort, Municipality, and training programs need whereas some proposals may prove difficult to be identified that are practical and effec- to implement. tive. Capacity building is crucially needed for urban planning and urban upgrading, This having been said, it should be apparent and on-job-training programs linked to pilot that there are cross-cutting issues that relate upgrading areas should prove very effec- to two or more components and sometimes tive training mechanisms. relate to them all. By identifying these cross- cutting issues it is possible to create a com- 4. Pro-poor approaches. Tackling poverty in mon framework and, if you will, a strategy for Sana’a relates most directly to the urban the strategy. The main cross-cutting issues are upgrading component, although there are the following: also poverty alleviation aspects to both the economic development and urban plan- 1. Legislative reform. Legislative reform is ning components. There is also a host of needed to promulgate a special law for national-level poverty reduction programs the Municipality, as well as its executive with which the Municipality needs to coor- regulations. Bylaws need to be written to dinate, in particular the Social Fund for enhance the Municipality’s financial perfor- Development. mance. And a number of legal changes will be required to activate the proposed urban 5. Water scarcity and environment. Water planning mechanisms. scarcity is directly relevant to the economic development and urban planning compo- 2. Knowledge management. For Sana’a to nents, but it is a much wider issue. Water meet its challenges, virtually all thematic scarcity threatens Sana’a’s potential for areas need much better knowledge man- future growth and there are national level agement. Perhaps it is most crucial for organizations (and international donors), urban planning and urban upgrading, par- which are also closely involved. The Munic- ticular for land information systems. How- ipality is the best placed government insti- ever, it is also important to improve the tution to tackle the subject. At the very least, information base for municipal finance, the Municipality should play an advocacy particularly on the revenue side. It may be role in keeping up the pressure to find sus- that a management information system tainable solutions to the water crisis. Most is needed for the Municipality, or at least environmental issues in Sana’a relate to for certain components, such as munici- surface water drainage systems and flood pal finance. Under this theme should be control, and these are directly linked to the included the possibility of forming a clear- issue of water scarcity. 45 Interrelations between Thematic Areas and Cross-cutting Issues Thematic Areas Cross-cutting Economic Municipal Institutional Urban Urban Issues development finance Development Planning Upgrading Legislative Reform Knowledge management Capacity building & HRD Pro-poor approaches Water scarcity & environment Resource mobilization 6. Resource mobilization. Resource mobi- ment of personnel affairs. Other themes could lization at first would seem to be linked be tackled by creating specialized committees solely to municipal finance, and indeed under the Amin al Asama. This would be partic- there is a very strong operational link to ularly true for knowledge management, whose proposals to improve revenue collection. improvement is critical within the Municipality But resource mobilization needs to be seen and whose importance extends across all five in its widest context, since the Municipal- components. A committee could also be formed ity’s current local revenues are extremely for the pro-poor theme or become the responsi- limited in scope and presently the city relies bility of the existing local council committee for mainly on central government transfers. social affairs, with added membership from the Thus, the issue of capturing a portion of SFD. The water scarcity theme should include rising land and property values because of surface water drainage and flood control, and urban development needs to be put to the the Municipality (with the local water and sanita- front of the resource mobilization agenda. tion corporation) could sponsor an intergovern- The potential in Sana’a is truly colossal. mental action committee to focus on the water Means to achieve such capturing partic- scarcity problem. ularly relates to urban planning and the introduction of new planning mechanisms. Sequencing and Monitoring the These cross cutting issues can be said to con- Strategy stitute themes upon which the leadership of the Municipality can focus as they organize the It should be stressed that the city development implementation of the City Development Strat- strategy is a guide for Sana’a’s development egy. In some cases, a certain theme logically lies for a span of 20 years. The five components within the responsibility of one or more Munici- of the strategy are thus long-term general pro- pality administrative units. For example, legis- posals, with individual tasks and actions that lative reform tasks would logically be assigned could extend over several years. It is not practi- to the legal affairs department; capacity building cal to propose a timeline for the implementation and HRD could be coordinated by the depart- of the five components of the city development 46 strategy. As mentioned above, each compo- strategies that will require revisiting and fine- nent will develop according to its own nature tuning. Thus it is proposed that after a conve- and at a pace determined by particular con- nient period, say five years, the Municipality straints and opportunities. Within each com- undertake a rapid assessment of progress in ponent, proposals are presented which imply a each of the five components. This assessment logical sequencing of tasks, but these are not would measure the success in implementing and should not be time bound. The one excep- the component proposals, identify new chal- tion is the urban upgrading strategy, which sets lenges, and re-design the strategy in the light out four clear stages to tackle the problems of of future circumstances. underserved areas and informal fringe devel- opment over the next two decades. It should be noted that even this relatively detailed schedule Priority Capital Investment Projects is not rigidly time-bound, and that there is con- siderable flexibility in sequencing of tasks. For the next seven years, the CDS process has identified 18 capital investment projects A period of 20 years is a long time. It is inev- that would have the greatest positive impact on itable that Sana’a will experience dramatic the city’s development and have been assigned changes, some of which cannot at all be fore- high priorities for implementation. These are seen. The city development strategy, which is organized into (1) transportation-related proj- presented here, cannot hope to remain any- ects, (2) key infrastructure projects, (3) urban thing like a blueprint for the city over this long and environmental projects, and (4) tourism period. It is rather an overall strategy or set of promotion projects, as follows. 47 SANA’A PRIORITY CAPITAL INVESTMENT PROJECTS A. STRATEGIC TRANSPORTATION PROJECTS Costs in 2009 US dollars; includes any required associated studies and management Estimated Public Ref. Investment Responsible Time No. Project Cost Agency Description/Comments Frame A1 Road $37 million Sana’a The project will construct five multi-grade 2012 Intersections plus 6% Municipality intersections in key locations in Sana’a, to Project (Five (Technical to improve traffic circulation. Already nine 2016 Intersections) Affairs Sector) multi-grade intersections have been built or are under construction, managed by a special project unit in the Technical Affairs sector, with financing from the Arab Fund. All such intersections are based on the 2006 Comprehensive Traffic Management Study for Sana’a. Detailed designs and tender documents have been prepared. A2 Sana’a Traffic $25.3 million Sana’a The project will create an integrated traffic 2010 Control plus 6% Municipality control system, which includes connected to System (Technical traffic signal installations, a CCTV traffic 2012 Affairs Sector) surveillance system, a communication system, and a Traffic Management Center (TMC) for all of Sana’a. The system can be expanded in the future to include public transport control (see project A3), and environmental monitoring. A3 Bus Rapid $88.5 million Sana’a The project will introduce modern, cost- 2012 Transit plus 6% Municipality effective, and high volume rapid public to (Technical bus services with a dedicated right-of- 2016 Affairs Sector) way along Sana’a’s north-south central spine for a distance of 30 km. Most of the right-of-way is already acquired within the Saylah wadi channel. Bus operations will be under a concession arrangement with an experienced private investor and operator. Preliminary economic and financial feasibility studies have been carried out in 2007 by the Comprehensive Traffic Management Study. A4 Eastern t.b.d. Ministry of The project will include construction of a 2013 Ring Road Public Works 1.5 km. tunnel under Barash Mountain to and Barash and 11.6 km. of a four-lane ring road 2016 Tunnel to link to existing roads (Sawan to the North and Kholan to the South). Currently there is no road by-pass around the city proper to the east because of the Nuqum mountain system (up to 2900 meter altitude). Thus this ring road link is crucial for other arcs of Sana’a’s ring roads to function properly. Detailed design and tender documents for the tunnel were completed in 2005. 48 LIST OF SANA’A PRIORITY CAPITAL INVESTMENT PROJECTS B. STRATEGIC INFRASTRUCTURE PROJECTS Costs in 2009 US dollars; includes any required associated studies and management Estimated Public Ref. Investment Responsible Time No. Project Cost Agency Description/Comments Frame B1 Potable $54 million Sana’a Local The project will extend water networks to five 2010 Water Water and zones of Sana’a that together cover 2,745 to Network Sanitation hectares, including main and secondary 2013 Extensions in Corporation networks, house connections, meters, Five Zones etc. This will increase public water system coverage in Sana’a from the present 55 percent of inhabitants to roughly 78 percent. This extended coverage will be mostly in areas that are inhabited by families of limited income. Also, the project will improve water network efficiency and reduce water losses and will boost the revenue profile of the Sana’a Water Corporation. Feasibility studies, detailed design, and tender documents for the five areas were prepared in 2006. B2 Upgrading $6 million Sana’a Local This project will boost the capacity of the 2010 of Existing (funding Water and existing wastewater treatment plant, increase to Sana’a gap) Sanitation its efficiency, and allow it to cope with 2012 Wastewater Corporation chemical and other pollutants in the fluid Treatment discharge. The Arab Fund for Economic Plant and Social Development has undertaken to finance 60% of the total cost, and the Yemeni Government has allocated funds to cover 20%, leaving a funding gap of the remaining 20%. Feasibility studies and detailed design are available. B3 Construction $16 million Sana’a Local This project will construct 15 kilometers of 2011 of Northern Water and gravity wastewater transmission lines from to Wastewater Sanitation the existing treatment plant to the location of 2015 Transmission Corporation the new treatment plant north of the airport Line (350 ha. of land is being acquired). B4 Installation $5 million Yemen Public This project will address the serious power 2011 of electrical Electricity deficiencies in Haziaz, a rapidly growing area to substation in Corporation in the southern fringes of Sana’a along the 2012 Haziaz Taiz Road. In addition, it will provide power needed for the proposed nearby Haziaz Industrial Area (see Project C-5) and Dry Port (see Project C-6). 49 LIST OF SANA’A PRIORITY CAPITAL INVESTMENT PROJECTS C. STRATEGIC URBAN AND ENVIRONMENTAL PROJECTS Costs in 2009 US dollars; includes any required associated studies and management Estimated Public Ref. Investment Responsible Time No. Project Cost Agency Description/Comments Frame C1 Urban $30 million Sana’a A recent Sana’a CDS study has identified 2012 Neighborhood Municipality, 35 poorer neighborhoods in and around to Upgrading Technical the city which that require integrated 2015 Affairs Sector upgrading as part of a comprehensive upgrading strategy. Five of these areas have been included in the World Bank’s Integrated Urban Upgrading Project (under preparation). These pilot efforts will confirm the appropriate approaches and modalities. It is expected that an additional 10 areas will be upgrading in the 2011 to 2014 period. C2 Saylah Flood $52 million Sana’a After successfully completing phases one 2010 Project Municipality, through four, the final phase of the Saylah to Extension Saylah Project (some 10 kms’ north of Sanaa) is in 2014 Project need of financing. This last phase, for which detailed designs have been prepared, will extend flood control and transport artery benefits to the remaining north-south spine of the city. C3 Three Solid $25 million Sana’a Sana’a Municipality is reorganizing its solid 2011 Waste Zonal Municipality, waste management system for it to become to Transfer and Cleanliness more cost-effective, partly by rationalizing 2013 Maintenance and collection and fleet operations. Under the Stations Environment World Bank’s Integrated Urban Development Sector Project (under preparation), it is envisioned to create a model zonal transfer and maintenance station, one of four planned for the city. This model station will set the format for the other three, and Sana’a Municipality is seeking financing for these. C4 Expanded t.b.d. Sana’a As part of Sana’a Municipality’s 2013 Main Sanitary Municipality, reorganization of its solid waste to Landfill Site Cleanliness management system, it plans to create a 2017 and new landfill site adjacent to the existing site. Environment Under the World Bank’s Integrated Urban Sector Development Project (under preparation), the existing landfill is to be upgraded as an immediate action. However, in the medium term additional capacities will be required, and funds are needed to prepare this new site, which is adjacent to the existing site and for which the Municipality has already completed land acquisition. (Continued on next page) 50 LIST OF SANA’A PRIORITY CAPITAL INVESTMENT PROJECTS C. STRATEGIC URBAN AND ENVIRONMENTAL PROJECTS (continued) Estimated Public Ref. Investment Responsible Time No. Project Cost Agency Description/Comments Frame C5 Haziaz $7 million Sana’a The proposed Haziaz Dry Port on 250 2013 Dry Port Municipality, hectares will provide warehousing, trucking to (Transport Technical facilities, transshipment, and other transport 2017 Hub) Affairs Sector logistics in an ideal location south of the city on the Taiz Road, near the intersection with the Ring Road, thus enjoying rapid road links outside the city to both Hodeidah and Mareb as well as to the whole south of the country. Sana’a Municipality will invest in infrastructure and basic parking and security facilities. Land acquisition is underway. Currently Sana’a Municipality has shortlisted consulting firms to carry out design and feasibility studies for the project. C6 Haziaz $5 million Sana’a The Haziaz Industrial Zone on 250 hectares 2013 Industrial Municipality, would provide secure and serviced sites to Zone Technical for non-polluting and non-water consuming 2017 Affairs Sector industries. These would include new industrial projects as well as existing factories in Sana’a that need to be relocated for environmental reasons. It is located south of the city off the Taiz Road, adjacent to the proposed Haziaz Dry Port (see Project C-5). Sana’a Municipality will be responsible for main infrastructure, and the marketing of individual industrial sites and operations will be undertaken by a concessionaire specialized in industrial estates. The Municipality has already constructed 40% of the roads. 51 LIST OF SANA’A PRIORITY CAPITAL INVESTMENT PROJECTS D. STRATEGIC TOURISM AND HERITAGE PROTECTION PROJECTS Costs in 2009 US dollars; includes any required associated studies and management Estimated Public Ref. Investment Responsible Time No. Project Cost Agency Description/Comments Frame D1 International $17 million Sana’a Sana’a Municipality aims to create a high 2010 Park Municipality, quality, multi-purpose cultural, recreational, and to Technical amusement center which that give the city a 2014 Affairs Sector premier tourist attraction for both domestic and Gulf families, which is a fundamental part of the City Development Strategy. The area of 130 hectares is on a slight plateau in an agricultural area south of the city. Sana’a municipality will provide large serviced lots to investors, and each of these will create, cultural, thematic, and amusement attractions. The International Park will provide considerable revenues to the Municipality from leasing and a percentage of entrance ticket sales. Land acquisition is ongoing and access roads and the perimeter have been constructed. D2 Traditional t.b.d. Sana’a Near to the existing city are a number of old hill 2012 Villages Municipality, villages and surrounding traditionally farmed to and Nature Technical land, all of which have considerable architectural 2015 Protectorate Affairs Sector and natural beauty. An extensive study of four of these villages—Faj Attan, Beit Baus, Sana’, and Beit Zabatan—was carried out for Sana’a Municipality in 2007–2008. It concluded that these four areas (with an aggregate population of 4,000) were in urgent need of preservation and development as a nature preserve. Appropriate environmental and heritage tourism was also called for, as well as institutional and legal frameworks for preservation. A feasibility study is urgently required. D3 Renewal of t.b.d. General The Old City of Sana’a, deemed a World 2011 Old Sana’a Authority for Heritage Site by UNESCO in 1983, has become to Sewerage Preservation Yemen’s single most important tourist attraction. 2015 System of Historic While in the 1980s the Old City’s infrastructure Cities, was upgraded and the architectural heritage Sana’a has been well managed, much of the sewerage network is over 25 years old and leakages and blockages are becoming more and more common. The renewal of elements of the network is required, and a technical assessment and feasibility study is urgently needed. (Continued on next page) 52 LIST OF SANA’A PRIORITY CAPITAL INVESTMENT PROJECTS D. STRATEGIC TOURISM AND HERITAGE PROTECTION PROJECTS (continued) Estimated Public Ref. Investment Responsible Time No. Project Cost Agency Description/Comments Frame D4 Wadi Dhar $6 million Sana’a Sana’a Municipality wishes to develop a first- 2012 Visitors Municipality, class tourist center in an area that is famous to Center Technical for its cultural heritage and natural beauty. 2015 Affairs Sector Developing the site will attract both domestic and foreign tourists, which is a fundamental part of the City Development Strategy. Sensitive development will preserve the cultural and natural aspects of the site and protect it from random encroachment. The project is to be situated on a beautiful escarpment overlooking the cultivated Wadi Dhar valley on an area of 12.5 hectares. It is planned to have a range of attractions, including restaurants, shaded sitting areas, children’s’ playgrounds, an events stadium, an open air theatre, and sports and rock climbing facilities. 53 Capital Secretariat THE WORLD BANK 1818 H St. NW 1818 H St. NW of Sana’a Washington, D.C. 20433 Washington, D.C. 20433 Republic of Yemen