Application of land readjustment toolfor upgrading urban poor neighborhood TRA VINH CASE STUDY

LPR IN VIETNAM Premature situationRural land consolidation experience Concept introduced and being piloted in development project Tra Vinh 10/13/2015 Dr... Community housing development1

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SUSTAINABLE URBAN DEVELOPMENT – APPLICABLE RESEARCH DIRECTIONS

VGU, 2015

Dr Hieu, NGUYEN NGOC

SUD, VGU

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Basic concept

Land Re-adjustment: re-parceling without pooling into a mass

Land pooling: pool

into a mass before

readjustment

Land sharing: haves

share with the

have-nots

Land consolidation: rural area, merge plots & reorganise

LR CONCEPT

10/13/2015 Dr Hieu Nguyen Ngoc 2015 3

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Case of Bhuj, Gujarat, India

Source: Mukherji, Anuradha 2001 Negotiating Housing Recovery: Why Some Communities Recovered While Others Struggled To Rebuild In Post-earthquake Urban Kutch, India Master Thesis, Texas A&M University, College Station, Texas.

After Before

LR CONCEPT

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Source: Hong Yu-Hung, 2015

Australia

South KoreaJapan

Philippines Angola

India Thailand Indonesia

Taiwan

China Bhutan

N e pa l

Iran Iraq Turkey SpainFrance

Germany Finland

Columbia

Chile

Ethiopia Israel

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Applications

LR CONCEPT

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LR CONCEPT

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LPR IN VIETNAM Premature situation

Rural land consolidation experience

Concept introduced and being piloted in development project

(Tra Vinh)

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Community housing development

10/13/2015

ACVN COMMUNITY DEVELOPMENT PROGRAM 2010-2013LPR IN VIETNAM

OTHER LAND CONTRIBUTION &

DONATION FOR DEVELOPMENT

PROJECT

Dr Hieu Nguyen Ngoc 2015 9

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Before After

LPR IN VIETNAM Community housing development in Hai Duong

• Small scale – 12 households in the same lane

• Full support of local authority as a pilot project

• Rely on technical support and funding from ACVN Cities Alliance

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LPR IN VIETNAM Community housing development in Vinh city

• Small but larger scale 29 households, 1,800m2

• No regulation, piloted and ad-hoc support

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For and against

Support

• Land law enables

community development approach (though unclear)

• Land exchange/

consolidation tradition/experience

• Political support to have

• Inexperienced stakeholders

• Law not yet specified

• Culture of exchange unprecedented

LPR IN VIETNAM

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Tra Vinh city

TRA VINH CASE

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Site location

Next to the city centre Inside the built up area Unplanned development - poor neighborhood

~10ha inside, 236hh incl

adjacent to the boundary

TRA VINH CASE

STUDY

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Buy in reasons

Poor serviced,

flood prone, poor

neighborhood

WB willingness to support & TraVinh buy in

Lack of budget to compensate land

to develop class III infrastructure

Proposal for road crossing by the

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Overlapping & other issues

Mount up self development problems

Poor households objections – small size HH

Source: Shirley Ballaney, 2015

LIA upgrading - orange

Urban upgrading - blue

TRA VINH CASE

STUDY

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Boundary selection

Selection for the majority support – inside/outside

Source: Shirley Ballaney, 2015

LIA upgrading - orange

Urban upgrading - blue

TRA VINH CASE

STUDY

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Professional

capacity Legal support

Source: Nobou Geley, 2015

TRA VINH CASE

STUDY

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Collect cash & Pay compensation

Physical implementation

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TRA VINH CASE

STUDY Planning & design directions

Project planning &

design directions

Time & financial constraint to merge 2 projects

Consensus building approach – but Vietnam context

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revision Third – wrap up Plan approval

Implementation 2016-12

Plan disclosed & 4 th

meeting on implementation Monitoring training Monitoring process of implementation

TRA VINH CASE

STUDY

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Guiding rules

resettlement

Small land exception – alternative move out

2/3 consent

Minority subjects to majority and private to public interest

Transparency & monitored by community

TRA VINH CASE

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Site analysis,

insertion area

Calculation of value before each POOLING plot &

total

Grid design &

variant

Calculation of space requirement for infrastructure

Calculation of property & land compensation

Calculation of development cost

Calculation of estimated revenue

Calculation of receivable land to each contributor

& cash transfer

REDESIGN GROUPS AND BOUNDARY TO MAXIMIZE THE GAIN AFTER NEGOTIATION

10/13/2015

TRA VINH CASE

STUDY Economic viability analysis (proposal) - discussion

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Lower price to agricultural land

Lower price to large plot

TRA VINH CASE

STUDY Land value analysis by plot feature & accesssibility

Source: Hieu, Nguyen, 2015

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Value increase = estimated

sale - original - investment

recover infrastructure cost 17,012 30% remaining redistribution

area for local residents 30,406 53% total cotribution rate 46.84%

contribution area sold to recover infrastructure cost (WB support) 8101 14%

new contribution rate (WB

TRA VINH CASE

STUDY Pilot redistribution economic viability calculation

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Before After

10/13/2015

TRA VINH CASE

STUDY Land readjustment for Axis B group - demonstration

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TRA VINH CASE

STUDY Land readjustment for Axis B group - demonstration

New B axis and feeding

roads

Subdivide land into shop

house to create urbanity

and relocate into the new

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• Chance of luck for property owners

• No consideration

of mixed used

• Value before and after issues

• Land type adjustment

Area based adjusted to land use type

Value based

- common rate of gain

Value based upon actual design

Area based simple

10/13/2015

TRA VINH CASE

STUDY Redistribution alternatives

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Rate of gain ( %)

All contribution

receives increase

( %) base on

original land value

& negotiate for

new land

Owner receives smaller serviced land & cash transfer balance later

Upgrade area contribute $ for infrastructure or land if owner has elsewhere

10/13/2015

TRA VINH CASE

STUDY Redistribution ratio for B axis group (trial)

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TRA VINH CASE

TWO PROJECTS BINDING PROBLEM

REDEVELOPMENT EFFICIENCY &

EQUALITY

BACKBONE STRATEGY & GROUP RESOLUTION

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Rate of gain 30%- 90%

All contribution

receives increase

same % base on

original land value

& negotiate for

new land

Owner receives smaller serviced land & cash transfer balance later

Upgrade area contribute $ for infrastructure or land if owner has elsewhere

10/13/2015

TRA VINH CASE

STUDY Redistribution ratio for B axis group (trial)

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DISCUSSION Issues and options

Planning issues

Financing infrastructure development &

cost distribution

Legal issues – barrier free and legal support

Commitment and bureaucracy motivation to sustain?

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Commitment

and bureaucracy motivation

Risk management and others

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Dr Hieu, NGUYEN NGOC MSc Tri, HUA TRAN MINH

SUD, VGU

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