Colombo Metropolitan Regional Structure Plan (CMRSP)

Colombo Metropolitan Regional Structure Plan - CMRSP

The final report of the Colombo Metropolitan Regional Structure Plan (CMRSP) is the out come of a collaborative work, during the year 1996-1998, by a committed group of professionals in the UDA with the assistance of both local and foreign consultants and with the support and contributions from various individuals and organizations.    

The Plan has extended well beyond the scope of a standard  ‘Structure Plan' due to a number of reasons. A most noteworthy aspect in this context is the inclusion of a detailed plan for Colombo-Greater Kotte (Core Area)  with particular focus on zoning & building regulations, including minimum and maximum densities, and a series of action projects identified in relation to the City of Colombo which are not generally featured in a Structure Plan. Another addition to the structure plan is the 'Development Guide Plans' (DGP) for selected planning units within the City of Colombo.  

 
The addition to the structure plan, beyond its original scope, was also influenced by other factors. More specifically, the absence of a comprehensive physical development plan during the last two decades, even for the City of Colombo, has remained an important concern of the government, local governments in the area,  local and foreign investors and the public. This concern  in turn placed a heavy responsibility on UDA to make the structure plan more comprehensive to address the issues and problems that have been accumulated over the years.  
           

Another reason for the comprehensive nature of the structure plan was to guide the local authorities in the preparation of development plans. UDA receives requests from local authorities and elected representatives to prepare plans for their respective areas. As the UDA has a responsibility to act on such requests, the structure plan had to be broadened to provide appropriate guidelines in the plan area specific plans in accordance with the overall framework of the structure plan. The structure plan has also identified action projects to provide a basis for sustained development in these areas.  
            

 Although it has taken three years to prepare and release the plan in its final form, the delay has been compensated, at least to some extent, by the completeness of the report and the saving of time since the report has been presented with the implementation strategy as well.  

The Structure Plan has included a list of Action Projects and their estimated costs as Annex 1 to the Plan.  This list will assist various implementing agencies and funding institutions to select projects to suit their interests. 

           

CMRSP as a Guide to Development Plans  and Projects 

In addition to the immediate implementation of the main elements of the project, the team recommends that planning process to be continued for  the preparation of detail plans for the Core Area and for the six Growth Centres identified in the Structure Plan and their implementation. The World Bank has already accepted this recommendation, and it has committed to provide financial support for the preparation of such detail plans. The Terms of Reference  and Scope of the plans in respect of  the Core Area and six Growth Centres  have been prepared and  included in Annex II.   

As the structure plan includes action projects and planning guidelines, it is now possible for the UDA to assign its  town planners with the responsibility of developing plans according to proposed status of urban centres and designs for nodal points in the CMR. It is expected that these plans could be prepared without long delays, since the structure plan has already identified these centres and towns as well as their functions and roles within the overall development plan of the CMR. Once these plans are developed, the planning process of the structure plan will be concluded leaving the implementation process to be continued. A large number of potential projects are expected to emerge during the planning process for the participation of the private sector. Infrastructure projects that will be developed during the planning phase are expected to be undertaken by the public sector.       

      

Implementation of the CMRSP

 Once the Government accepts the Structure Plan in principle, it is imperative that institutions responsible to implement the plan should be identified and selected. The selected institution(s) will be required to complete the implementation within a given time schedule.  In addition, the legal and institutional framework as suggested in this report must be implemented.   The report has suggested several options to the Government and the political leadership in the Western Province in relation to the implementation strategy.  An early decision regarding the most suitable option would help the implementation phase to be commenced early.

 The structure plan has also examined the funding options of the proposed projects in the CMR.  The UDA team considers a betterment tax and urban development bonds as two important sources that would provide a substantial part of the funding requirements of the CMR structure plan. Details of these two financial instruments are discussed in the implementation strategy. An early decision regarding the potential sources of funding the CMR structure plan would help to expedite the implementation process.

 Finally, a serious commitment to the proposals made in the structure plan from the government and the political leadership is necessary for the successful implementation of the CMR structure plan. This commitment is very important since the implementation decision entirely rests with the government. 

Implementation Strategy  

 Introduction

 The Structure Plan developed by the Urban Development Authority (UDA) requires a dependable and rational implementation strategy. It should provide rules and regulations pertaining to land acquisition, zoning and urban density, identify institutions responsible for implementation of the plan and mobilize the sources of funding for the implementation of the plan.  This chapter present the implementation strategy of the structure plan with particular fours as legal, institutional and financial requirements.

 

Jurisdiction of the CMR

      

The CMR consists  3  districts namely Colombo, Kalutara and Gampaha, the three districts that comprise the Western Province. A declaration defining  the jurisdiction of the CMR, as defined by the Structure Plan, will be required to give the legal recognition of the CMR.   This declaration will have to be in the form of a Gazette notification, and it should state specifically the area coming under the purview of the CMR and its geographical boundaries.

 

Institutional Framework

Once the declaration of the CMR has been made, the government will have to decide the implementing agency of the CMR Structure Plan. The Presidential Task Force on Urban Development recommends several options for this purpose. 

One of the recommendations is the establishment of a new agency to be named as the National Physical Planning Agency (NPPA). This agency will be entrusted with all aspects of monitoring, co-ordination and implementation of the Structure Plan, including enforcement of laws and regulations on land acquisition, area demarcation and zoning, reclamation and redevelopment and payment of compensation. The NPPA should also develop a comprehensive financial plan identifying the main sources of funding for the implementation of the plan. It will also be required to negotiate with international funding agencies for financial aid and concessional loans to support the financial requirements of the developments envisaged under the plan. 

 

 The suggestion to entrust the implementation of the Structure Plan of the proposed NPPA came after considerations of other alternatives. The other options considered for the implementation of the Structure Plan included UDA, Western Provincial Council and Colombo Metropolitan Development Authority (CMRA), a new organization which is to be set up solely for this purpose.

         Although the UDA has the professional support and technical capacity to undertake the plan, it is unlikely that it can devote its resources adequately to carry out the implementation. UDA is already a large organization, and it is responsible for planning of urban centres through out the country. Also inter organizational co-ordination may be difficult without appropriate over riding powers.  Accordingly, it was not clear weather UDA might be able to give special attention necessary for the timely implementation of the plan.

        The Western Provincial Council was not considered favorably because of the possibility of political interference from the Local Authorities at the implementation stage of the Structure Plan. Furthermore, the Provincial Council will have to set a side a substantial amount of resources to establish relevant departments within the council especially for this purpose. In addition, it has so far not demonstrated its ability and capacity in implementing a plan of this size and complexity. The ability to mobilize sufficient funds to support the program is another area of some uncertainty.

        Another alternative is to establish separate Local Authorities for the Core Area and six growth centres at the level of Municipal councils while the rest of the area within CMR is managed by the Western Provincial Council and Urban Councils.  However, the overall co-ordination between the Local Authorities which have been established this purpose, may have to be carried out by the W.P.C. and UDA.  This may again lead to some conflicts and uncertainties.

The options refereed to above were carefully evaluated before deciding that the establishment of the proposed NPPA would be the most appropriate to implement this plan more efficiently due to the fact that it will be able to most effectively undertake inter-agency co-ordination. The relevant procedures in relation to the establishment of the NPPA are explained in detail in Annexure XIV.

Legal Framework 

 The implementation of the CMR Structure plan introduces major structural changes to the urban fabric and regional physical structure of the Western Province. Some of the proposals will lead  to the following.

•  Acquisition of lands/properties for new roads/rail track
•  Reservation of lands for future rail/road traces
•   Introduction of new street lines/building lines
•  Zoning of conservation areas – retention of flood prone areas, open spaces, urban forest, playground, urban agricultural and other retention areas.
•  Restriction of certain development in certain areas through zoning and density (FAR) mechanism to shift high density and high income uses to certain areas.
•  Enforcement of a new land use plan that could affect private property rights and liberties in the short term.

Land Acquisition Act 

The Land Acquisition Act is inadequate to fulfill the legal issues that could arise from land acquisition during the implementation of the CMR Structure Plan. The UDA, therefore, recommends that amendments to the Land Acquisition Act by the Parliament be passed. giving full legal rights to the authority appointed by the government to implement the Structure Plan on (a) land acquisition, (b) zoning classification, (c) reclamation and re-development of land, including land in low lying areas, and (d) compensation.

 Land acquisition involves a complex procedure.  The process to be followed even for compulsory acquisition is time consuming and tedious.  In order to expedite the procedure it is proposed that the Land Acquisition Act be amended to reflect the following:       

  

•    Land acquisition procedure is to be revised to expedite acquisition when lands are acquired for public purposes.  The number of steps which are followed at resent should be reduced.
•    When lands are acquired for public purposes, the responsible authorities such as the Ministry of Lands, Divisional Secretary and  Dept. of Valuation should give priority for such acquisitions.
•    Before forwarding the papers to the Ministry of Lands, the  Hon. Minister, whose Ministry has the authority regarding the particular subject, should recommend the urgency of such acquisition.
• The proposals for new constructions, extensions and widening of roads and Highways
      should be treated as compulsory acquisition and the authority should be allowed to take   possession of particular land on the date of declaring the plan. The date of valuation for   the purpose of calculating compensation shall be the date of acquisition.  
•      The amount of compensation entitled by the affected party to be informed at the date   of obtaining of the possession of the land.
•     Public awareness of proposed land acquisition has to be undertaken in order to inform the public in advance regarding proposed plans.

The application of the Land Acquisition Act will become necessary in many areas of the structure plan during the implementation stage.  The following are some of the areas where the application of the Land Acquisition Act will be required more frequently.      

 

Road Traces

Rail Trace

Electricity High-tension or Low-tension track

Cables for communication of any kind

Urban agriculture land

Flood retention area

Canal and river, and water bodies reservation

Conservation Areas

Open Spaces

Public Recreation Areas

Housing estates more than 5 Acres in extents to be built by both Private and Public Sectors

Town Centres based on approved Urban Design by the Local Authority

Playgrounds

Urban Forest

Urban Agriculture (if desire acquisition)

New Township, Satellite Cities, Cyber Cities, High –Tech Industrial Estates (Cyber Cities) Industrial

Townships as identified in  the CMR Plan including access road/rail traces and infrastructure line reservation.

The Land Acquisition Act, once amended and approved by the parliament and the Western Provincial Council, should have the full powers regarding acquisition/vesting of private/ public proportion as required by the CMR structure plan.  Any decision pertaining to such acquisition/ vesting of private and public properties with the Authority responsible for implementing the structure plan should not be allowed to challenge in a count of law under any circumstance, not even in the case of the violation of fundamental right Further, such acquisition a vesting as determined by the Authority responsible for implantation of the plan, shall be completed within 6 months. 

 

The SLLR&DC Law

 A Change in the law is of (SLLR&DC) Sri Lanka Land Reclamation and Development Corporation is required to provide it with the responsibility of infrastructure development instead of land reclamation and filling of land for commercial exploitation. SLLR&DC should withdraw from land market and become an implementing agency and a regulatory body to prevent commercial exploitation of low lying land/paddy-fields etc. Land filling and marketing could be done only by private sector on a permit issued by SLLR&DC subject to UDA Planning and Zoning Regulations in the first instance.

Filling of lands has affected the physical well being of the CMR to a great extent.  While its land filling activities were responsible for increasing the inundation and floods the canals and drainage facilities provided by SLLRDC have helped to reduce the threat of flood to a certain extent.  However, past activities and the present capabilities of SLLRDC have to be reviewed closely in the context of the proposed development under the structure plan.  Accordingly it is suggested that the capability of infrastructure development by the SLLRDC is increased and powers to reclaim wetlands reduced.

SLLR&DC may be held responsible for development of infrastructure and public amenities based on wetland/paddy-fields water bodies/canal-river recreation. These include open spaces, playgrounds, recreational areas, roads, rail tracks canal, retention lake ponds urban landscape areas etc.

However, such construction work should be paid for by respective authorities i.e, RDA,UDA etc. SLLR&DC may also have to change its name suitably to reflect the proposed activities.

 

Financing of the Structure Plan

According to preliminary estimates, approximately Rs.30 billion to Rs. 40 billion will be required to implement the structure plan over the next 15 years. A major share of this cost will be accounted by compensation payments for acquisition of land declared as open spaces, roads and other amenities.  A number of possible options have been considered for raising the required financial capital. A summary of these sources is given below.

Property  Rates / Tax  by the Local Authority 

The main income source under this is taxation of property in areas subject to the development under the Structure Plan. The Western Provincial Council area is the most attractive region in terms of investment on projects point of view, and it attracts residential, commercial and industrial activities within the region. As the living standards of residents of the area is very much higher than other areas, taxation system of the area could be revised to increase and charge from the properties, business and income of the people.  Revenues so collected will be deposited in a Municipal Development Fund.

 

Betterment Tax

According to the proposed development plan for the City of Colombo, area between the Galle Road and the Duplication Road has been identified as a high-density development zone.

As required by the zoning regulation only the identified areas will be permitted for high rise development and opened for large scale redevelopment , including new development projects.  Investments will be drawn for these projects from local and international investors. As a result of substantial investments on development projects, land value of this area will be markedly increased. Betterment tax will be charged from such increased land property value.

 

Definition of  Betterment

Betterment is defined as the enhancement or increase in the value of land resulting from the action or decision of central or local government or by a statutory body or from the expectation of such actions or decisions.  The concept of betterment, therefore, applies to an increase in the value of property that results from government or local government actions such as the construction of new roads or infrastructure facilities.  Such actions could, therefore, lead to an increase in land value of those properties that are benefited from the improved physical development in the area.

 Under the betterment tax, a part of the increase in property value that can be directly attributed to the benefits associated with the development of the structure plan will be collected.

The proposed scheme regarding betterment should cover the payment of compensation when lands are acquired by the UDA or any other line Ministry / Authority and the collection of levy to capture the increase in land value due to betterment. Details of these two policies are as follows.

 

 Payment of Compensation 

When compensation is paid for lands acquired for activities related to the structure plan, a certain percentage, determined by the Urban Development Authority, should be subtracted from the normal value of the property, if the UDA can establish that the market value of the property has increased because of the proposed Urban Development in the area under the structure plan.

 

 Levying a Tax on betterment

Increase in the value of a property can be taxed in terms of the concept of betterment. It is not fair, however, to tax the entire increase of the land value because there could be actions, other than public action, which could lead to high land values. Only a certain percentage of the increased in land value should be subject to this levy.

A property should be sold to realize the market value of the property. Since not all property owners sell their properties in an area affected by public actions, a scheme should be developed to accommodate such situations as well. The following schemes are proposed to deal with the situation 

Apply a levy to a certain percentage of the increased value of the land when the property is sold in the market or through an agent. There should not be any other liability with regard to the increased in land value associated with that public action.

The above scheme can be applied to those who do not sell their property as well. If they select the option 1, they should not be subject to any additional tax associated with the public action that the tax was paid. The tax rate should be reduced to attract property owners, who do not sell their properties immediately after the improvement,  to use this option. If they do not wish to pay the tax then they are required to pay a hire tax when the property is sold at a later date. 

 

Betterment Fund 

A betterment fund should be established to deposit tax collection by each local authority. It could be used for following activities carried out in relation to the CMR Plan . 

Payment of compensation clearance of encumbrances of acquired/vested lands, construction of buildings, preparation of building sites and activities related to improvement of land cannot be paid by this fund. Lands once acquired/vested by the Authority be handed over to respective development agencies such as RDA, NWS&DB, Local Authorities, CGR etc. to undertake the designated development in the CMR Plan/Land Acquisition. 

Compensation for acquisition of such land shall be paid in 6 months in cash / cheques or bonds issued by the betterment fund. Bonds issued by the betterment fund are for a maturity period of 10 years. They can also be traded in the stock market.

 

Financial Assistance from the Central Government 

As this project has significant benefits to the national economy, the government can also allocate funds through its annual budgets. It is also possible for the government to decide its allocation for the structure plan through line ministries as well.

Financial Assistance from International Agencies. 

International agencies such as IDA, World Bank , ADB, JICA  are likely to support this project as it has significant potential for development of the economy in the CMR as well as in the Country.

 

The Private Sector  Involvement

  The private sector involvement in this regard will be another major source of funding. BOO BOT projects and joint ventures between the government and the private sector will be responsible for major infrastructure developments identified in the Structure plan.  Particularly development of Housing Estates, Cyber Cities and Satellite Cities could be undertaken by the Private Sector.  However, providing suitable lands at appropriate location as per the CMR Plan will be the responsibility of the Government.

Since it is unlikely that a single source can fully finance this project, a comprehensive investment plan should be prepared bringing together these agencies to share the cost of the implementation.  The private sector could be attracted and invited for implementation of infrastructure services, housing, industrial and various commercial projects in the growth centres of the CMR. Government should provide necessary concessions, long-term lease and other benefits to the investors who are willing to undertake such projects in the identified areas.

  

Copyright (C) 2001 Urban Development Authority