Report No. 22590 Urh.bn Services Deiiverv and the Poor: The Case nf Three Centrnl American Citiec . I .~ _- %& I.P %s .- I a I I I %. % , l. . a. I1. I .AA I IIII II % ~ IL . . (In Two Volumes) Volume II: Citv Renorts June 3, 2002 FInndcL, rivate Sectof dllU IlnlIdsULtUctu LJepartnment Central America Country Management Unit Lat'in Amrerica and' th'e Caribbean Region Document of the World Bank CURRENCY EQUIVALENTS US$1= I Dollar (El Salvador) US$1=16.40 Lempiras (Honduras) US$1=1 Balboa (Panama) FISCAL YEAR January 1 to December 31 for El Salvador, Honduras and Panarna ACRONYMS AND ABBREVIATIONS IAMSS:III* vimVL,l .liJiitarI r^-iea oul San Sal v adru AMDC: Tegucigalpa Central District Municipal Government A'%,"'%A . r l £VI1 ,- L - I ! . ,,r _-I --" ---- MIN Lit/-: E; Saivauor s INationai water Company ATTT: Panama's Transit and Terrestrial Transport Authority BNH: Panama's National Mortgage Bank CAS: Country Assistance Strategy CAEES: El Salvador's Electricity Company CDS: City Development Strategy COAMSS: Council of San Salvador's Metropolitan Area Governments DGT: Honduras's Directorate General of Transport DIMA: Panama's Direction of Urban Sanitation ENEE: Honduras's National Electricity Company ENV: Living Standards Survey ("Encuesta de Niveles de Vida") FHIS: Honduras's Social Tnvestment Fu,nd FONAPROVI: Honduras's National Fund for Production and Housing FONAVLPO: Pi Salvar'-s. N%aftina! FPunA for Propular Housngmn FOSOVI: Honduras's Social Housing Fund vi I .L jiaui~3L~ IrWUMLI: U-IU FSOV : EI Salva-do r's S oci al Houusingr FuILU GDP: Gross domestic product GiS: Geograpnic information system IDAAN: Panama's National Water Company IDB: Inter-American Development Bank JICA: Japanese International Cooperation Agency LSMS: Living standards measurement survey methodology MEF: Panama's Ministry of Economy and Finance MIVI: PanamA's Housing Ministry OPAMSS: Planning Agency of San Salvador's Metropolitan Area PCSM: Panama City and San Miguelito urban area PPP: Purchasinog nower naritv RAP: Honduras's private contribution system r AMA A- o,~,I~Jt, SOPTRAVI: Honduras's Secretariat of Public Works, Transport and Housing T TC' A Tr-%. TT :-A. Q- A . USAiD;. Uni'.edU atesb 1Agency fo.Intel- ,toa DeAve-lopment VMVDU: El Salvador's Vice-Ministry of Housing and Urban Development VMT: El Salvador's Vice-Ministry of Transport WDI: World development indicators Vice-President: David de Ferranti Country Director: Donna Dowsett-Coirolo Sector Director: Danny Leipziger lzaotnr Manaaar- Mar;ia 1i.mula liraira Task manager: Alexandra Ortiz ACKNOWLEDGMENTS This study was led by Alexandra Ortiz (LCSFU). Team members were: Tova Solo (LCSFU), Sumila flu,1vsn,; (AFTTT11 C,,rlnQ 4nhrarin (T r'QPP'h A1hprttn Uarth anel h- To.orr (,n.1a+ .~p Gu---n %_TU) - ^lo Iord - IPP, Al.berto _ar. _._Rd ich ard Twardar.ic (crufnt) IPeer1 reviewers were: Alcira Kreimer (TUDDM Sector Manager), Helena Ribe (LCSHD Sector Leader), and Teskon 14pnettchp.1 (TMq Sr. E-conomrnist.). Addtoa! ,,1.'i- corrrer's were se,t bI, T arr.on (LCC2C Lead Economist), Norman Hicks (LCSPP Sector Manager), Abel Mejia (LCSFW Sector Maonlaor) TDarr. T elOlfl v^ripziger (VP D ,0 ET,,lia FreireI CA Actir S-coT T A .M.ar.-gr) Marianne Fay (LCSFP Sr. Economist), Vitor Serra (LCSFU Lead Urban Specialist), Mario Lungo on the final draft were submitted in writing by: Mario Lungo (OPAMSS Director, El Salvador), Nuvia de J.p (D;A of t.e So-cia. .Pi U.nit m. u M uinis L Laf EcorL.Lvy ana. iulanlA., Parl.aI-m), I%Usa ler.a de De La Cruz (Social Policy Unit in the Ministry of Economy and Finance, Panama ), Juan Carlos 1KTA fXr_ .TO _ At DA_ A_ _AIA D A l 1 A- .-IA ---- 1 A L__ - .A A TT_ :. .AA AA 1NaUiaez kdaUyVI3 VL * Iund V.Ly), IW a[IVJ LJISIUV IiUUF V1VIV1 G4llU 1VbUI-dI%I 4L UIB nl1VVIIVA-IIUGU US Panama), Jorge Hernandez Alcerro (Minister of the Interior, Honduras), Antonio Trivizo, and Lourdes LL...-11 /T ('CVT TN ..IA, ~ Herrivu (LCSF',J)-u providedu a&..ir.iuaLivu aasibm'nwv.c Coumterparts in the field iMl ay/99) wsere: San Salvador ivietropoiiman Area: Nvlar1o Lungo, vrpwLiv-- uirector; C;arlos tinones, advisor o0 tne Minister of Education; Roberto ArgUlello, Consultant; Hugo Moran, Advisor of the President in transport issues; Roy Sandova;, Consultant. Tegucigaipa: Mauro Membrefio, Advisor of the Mayor; Ricardo Fliores, Director of Internationai Cooperation in the Mayor's office; Julio Carcamo, General Manager in the Mayor's Office; Fanny Mejia, Social Development Manager in the Mayor's office; Norman Z(iiiiga, Transport expert in the Mayor's office; Milton Murillo, Urban Development in the Mayor's office. Panama City and San Miguelito: Darinel Espino, Head of the City Planning Department; Nuvia de Jarpa, Director of the Social Policy Unit in the Ministry of Economy and Finance; Luis Campana, Transport Advisor in the Mayor's Office; Luis Bustos, Sub-Director of the Urban Development Unit in the Ministry of Housing; Francisco Donadio, City Planning Department Funding for this study was provided by the Central America Country Unit (LCC2C), The Cities Alliance Program, the Water and Sanitation Program (EWDAP), and the Land and Real Estate Thematic Group. REVIEW OF URBAN SERVICES AND POVERTY IN TriiKEE CENTIAL AiMRICAN CI T IES CONIEiN-IS URBAN SERVICES DELIVERY AND THE POOR: THE CASE OF THREE CENTRAL AMERICAN CITIES VOLTJl IFT: CTTY REPORTS T IlAThIDfMI^T Tr A N A 1MT A d'%1 Q A 1T C AT Z7 A ThIM A. 1VIEV A rvvr.FL4A A ZIs SLKJIM vrA CYLqL b7Z%JU V ħSJJfJAX I TUiRnALnK7A'rTCT AT" OVflnr'ThY IiN CL ATLVAY A3 IL. Z% DtIP14 Lf,^ I 1'JP4 tIANLJ r ., V r,r.. IL I JUI DI attu. V JJIJ. .1uz 2. HOUSEHOLD AND NEIGHBORHOOD CHARACTERISTICS IN AMSS 6 A. Hnousehold migration, growth and mobility 6 B. Education and occupation 7 C. Neighborhood characteristics 8 3. LAND AND HOUSING 10 A. Institutional setting 10 B. Provision of land and housing 11 C. Housing finance 12 D. Results of the household survey concerning land and housing 13 4. BASIC SERVICES 17 A. Water and sanitation 1 7 B. Electricity 21 C. SoliA wteL colUlJU11 22 D. Drainage 23 5. PTBLIC TRANSPORT 25 A. Institutional setting 25 B. Provision of public transport 26 C. Cost and pricing issues 27 D. Results of the household survey concerning transport 28 II. TEGUCIGALPA 1. URBANIZATION AND POVERTY IN HONDURAS 32 2. HOUSEHOLD AND NEIGHBORHOOD CHARACTERISTICS IN TEGUCIGALPA 34 A. Household migration, growth, and mobility 34 B. Education and occupation 35 C. Neighborhood characteristics 35 3. LAND AND HOUSING 38 A. Institutional setting 38 B. r-r-u riz-10- of lan^d -u-nd 'aoussing 3 C. Housing finance 40 D. Resutof the hou-neihold -,srf 1y -Ance and housin- Al 4. BASIC SERVICES 45 A. Water and sanitation 45 B. Electricity 49 C. Solid waste collection 51 D. Drainage 52 5. PUBLIC TRANSPORT 53 A. Institutional setting 53 B. Provision of public transport 53 C. Cost and pricing issues 55 D. Results of the household survey coincerning transpor 56 rM. PAnAMA CiTL x ANmD SAN G MIGUE Lif 1. URiSANILZATIN ANi) POVER71Y IN PANAMA 1-60 2. LAND AND HOUSING 62 A. lifsitutional setting: polCicUs, legislation, and reguilatiou 62 B. Provision of land and housing 63 C. Hi.anng 4Snanr a D. Results of ENV 97 concerning land and housing 64 3. BASIC SERVICES 67 A. Water and sanitation 67 B. Electricity 69 C. Solid waste collection 69 4. PUBLIC TRANSPORT 71 A. Institutional setting 71 B. Provision of public transport 71 ANNEXES 1. Survey methodology 74 2. Housenold survey questionnaire 80 3. Basic service indicators for several cities 104 A. lT-.--rioua aid inI El V1UAf, L.Hond, a.-A P-UA 10 6 A,^ T?, T T.! o Service delivery aspects analyzed in the study I NAETRPOALITAN APRIA OF SAN SATLVADlnOR 2.1 Household characteristics by household consumption quintiles in AMSS, 2000 6 2.2 EmDlovment characteristics bv household consumDtion quintiles in AMSS, 2000 8 2.3 Neighborhood characteristics by household consumption quintiles in AMSS, 2000 9 3.1 Tenure status by household consumption quintiles in AMSS, 2000 13 3.2 Housing characteristics and monthly payment by household consumption quintiles in AMSS, 2000 .14 3.3 Property subdivision and improvements by household consumption quintiles in AMSS, 2000 15 4.1 Water services by househoid consumption quintiles in AMv, zuuU 18 4.2 Sanitation of grey and waste waters by household consumption quintiles in AMSS, 2000 20 t.J StUeeL LuSULnLU snd e .city by UoweUlU1u quu-tiles in I 2000 22 4.4 Solid waste collection service by household consumption quintiles in AMSS, 2000 24 4.5 D-ranae issues by household consumption qunties in . MSS, 2000 24 5.1 Vehicle ownership and use of public transport by household consumption quintiles in AMSS, 2000 28 5.2 Distance, time, fares, and frequency of trips by household consumption quintiles in AMSS, 2000 30 TEGUCIGALPA 2.1 Household characteristics by household consumption quintiles in Tegucigalpa, 2000 34 2.2 Employment characteristics by household consumption quintiles in Tegucigalpa, 2000 36 2.3 Neighborhood characteristics by household consumption quintiles in Tegucigalpa, 2000 37 3.1 Tenure status by household consumption quintiles in Tegucigalpa, 2000 42 3.2 Housing characteristics and monthly payment by household consumption quintiles in Tegucigaipa, 2000 43 3.3 Property subdivision and improvements by household cons---fIJ *jAiAnl AA in TeOucig5lpI, 2 4.1 Water services by household consumption quintiles in Tegucigalpa, 2000 46 4=2 Sanitation of grev and waste waters bv honsehold cosurnption quintiles in Teimcimalna. 2000 48 4.3 Street lighting and electricity by household consumption quintiles in Tegucigalpa, 2000 50 4.4 Solid waste collection service by household consumption quintiles in Tegucigalpa, 2000 52 4.5 Drainage issues by household consumption quintiles in Tegucigalpa, 2000 52 5.1 Vehicle ownership and use of public transport by household consumption quintiles in Tegucigalpa, 2000 56 5.2 Distance, time, fares, and frequency of trips by household consumption quintiles in Tegucigaipa, 2000 58 PANAMA CITY AND SAN MIGUELITO 2.1 Ten--re st atus lu- us y -6uUU U Wcons-u-mptionI quiti;esi in U-te u-WbU areas of PCSM,Y 171 65 2.2 Housing characteristics and monthly payment by household cor-rn#,t4n miintT. ;"n the -rbn ar.eas of PDrS, 1007 66 2.3 Property improvements by household consumption quintiles in the urban areas of PCSM. 1997 66 3.1 Water indicators by household consumption quintiles in the urban areas of PCSM, 1997 68 3.2 Indicators on sanitation of waste waters by household consumption quintiles in the urban areas of PCSM, 1997 68 3.3 Electricity indicators by household consumption quintiles in the urban areas of PCSM, 1997 69 3.4 Solid waste collection service indicators by household consumption quintiles in the urban areas of PCSM, 1997 70 GRAPHS METROPOLITAN AREA OF SAN SALVADOR 1.1 Urban population in El Salvador 1980-1999 3 1.2 Annual growth of urban and total populations, El Salvador, 1980-1999 3 1.3 Urban poverty, El Salvador, 1992-1998 4 2.1 Education levels of household heads by household consumption quintiles in AMSS, 2000 7 5.1 Transport moud by houbseholU cionumptlU e qUII tanU by purpUse Ul tUlp, AtMVISS 200V 29 TEGUCIGALPA 1.1 TbTIan o-A4-4 in Y.- !90Q-1999000 32 1.2 Annual growth of urban and total populations, Honduras, 1980-1999 32 1.3 Urban povertv. Honduras. 1992-1998 33 2.1 Education levels of household heads by household consumption quintiles in Tegucigalpa, 2000 35 2.2 Most important problems in neighborhood by respondent's gender 36 5.1 Transport mode by household consumption quintile and by purpose of trip, Tegucigalpa 2000 57 PANAMA CITY AND SAN MIGUELITO 1.1 Urban population in Panama 1980-1999 60 1.2 Annual grovith of urban and total populations, Panama, 1980-1999 60 BOXES METROPOLITAN AREA OF SAN SALVADOR 4.1 ANDA's Poverty Program 19 4.2 Solid waste management mi the Metropolitan Area of San Salvador 23 TEGUCIGALPA 3.1 Tegucigalpa's precarious cadasrwe 39 MAPS METROPOLITAN AREA OF SAN SALVADOR 1.1 Snn SalvdaorMetrompolitan Area 5 *TEGUCIGALPA 3.1 Tegucigalpa 41 The fiollow.ing reports can be consulted indPpendently. Thexy are srctnar.ed in a similar way, with a -frst chapter dealing with general data on urbanization and poverty in the respective country and city, a second anal-,ngy h-,pj:ldneA inA nn;oIhiwrhnMA oLharantpvkr4..^a nf *A. ,^;t, a *16;rA ^uair;nm ton I1aA anA shelter, a fourth discussing basic services, and a fifth dealing with urban tansport. In the case of Panama C;.ty +t.e rpvo+ ipudeA orl nnh - lanA ar.i hnjaineg haasic se-i A *and " , t,4,,n +ha+ + s d data come from a different survey that did not measure the same aspects that we assessed in AMSS and For ecwh service t.er is a descr.ption of MW i.1- nal s 1, a chQJ-aVt e..."o .of service provision, and an analysis of service delivery. The following aspects of service delivery are systematically included: access, ti:e elapsed to get U -A 4.1- --A q q reliabii.; d payment. There is a strong emphasis on service quality given that in urban areas quality is more the pUroleu thUaL access. T mUany casCs, poUoL U!ar LJ LohUoldsU ..1.ight UhVv WhatL smLUs U Uto b U1e a COVOs of services, but the quality and reliability are very low. Service delivery aspects analyzed in the study Service aspect Land and housing Water, sanitation, street Public transport Uigh5ing and el4t-+ .4f.l, solid waste collection, and drainnye Access Tenure type Connection to public Bus crowding provider Time elapsed to get the Years of self help housing Use of alternative sources NA service Method to acquire the Financing Public vs. private NA service intervention Quantity Number of rooms m3 or kwh Trips/week, Qlualitv Materials, armenities- Need to boil water, Waiting times crowding distance to facility, specific problems Reliability Tenure security Hours of continuous Safety service Payment Monthly rent or mortgage Monthly payment Fare Source: Author's compilation, 2001 1. METROPOLITAN AREA OF SAN SALVADIOR 2 1. URBANIZATION AND POVERTY IN EL SALVADOR 1.1 El Salvador is rapidly becoming an urban country (graph 1.1). According to the World Development Indicators, 42% of the population was living in urban areas in l980, equivalent to 1.9 million people. In 1999 the percentage had increased to 46% or 2.9 million people. This urban population has been growing at higher annual rates than the total population, and in the period 1995-1999 this difference got larger (graph 1.2). There is thus, reason to believe that urbanization will continue at a steady pace in the coming years. In fact, forecasts from the United Nations Population Division show that by 2010 50% of El Salvador's population will be urban. Graph 1.1 Graph 1.2 Urban populatlon In El Salvador Annual growth of urban and total populations 1980-1999 El Salvador, 1980-1999 35 3.00% II CM ImI | t 2.5 i _ || 200% |Rateof urban | o f 5 | | | |1 | | | [ total | | 0 50% | population growth | MuUrbanpopuIatIni 1500% 1.5 1totali ini i ilte Of total I - -- I , [ [s 1-1 t ~~~1 .00%^- -1 0.50% -If lf-lI population growth 1980 1985 1990 1995 1999 8085 85-990-95 95-99 Source: World Bank, various years. 1.2 With 295 people per Km2, El Salvador is the smallest and most densely populated country in Central America. In the 1990s, after more than a decade of civil conflict, the country achieved many important successes, among them, establishing participatory democratic processes, keeping a low external debt, implementing a comprehensive privatization program, and maintaining steady economic growth. Its economv has been progressively shifting from agriculture, where the options are limited given the small territory, to manufacturing services. In fact agriculture decreased from 27% of GDP in 1985 to 10% in 1999. On the other hand, maquila and non traditional exports have been booming in the last years, contributing to an increase in the GNP per capita from $ 1,570 in 1995 to $1,920 in 1999. 1.3 The country has been afflicted by several natural disasters, including a major earthquake in 1985, hurricane Mitch in 1998, and two earthquakes in 2001. The 1985 earthquake severely affected the capital city, San Salvador, while hurricane Mitch and the most recent earthquakes have affected more the rural areas. These disasters have aaeravated the situation of the poorest Salvadorans and have shown that the country is highly vulnerable. 1.4 The civil conflict cost some 75,000 lives and left thousands of people displaced, orphaned or disahled= It also caused a massive migration, mainly to the US, with about one in five Salvadorans living abroad by the end of the century. Remittances became a very important source of income for the country, stimulating internal consumption; but causing, at the same time:a "Dutch disease". C-raph 1.3 Urban poverty El Salvador, 1992-1998 3.5 2 j |Total urban poor 1.5 -ITotal,poor O 1 0.5 1992 1998 Source: World Bank, 1994; World Bank various years; and Trigueros eL al, 2000. 1.5 Although po-verty is stii more of a rurai phenomenon in El Salvador, this tend is re-versing as more migration to urban areas takes place due to the decline of agriculture, and more recently, to natural disasters. 'While in 1992 urban areas housed 40% of the country's poor, in 1998 this percentage increased to 46%. In absolute numbers, 1.38 million poor lived in urban areas in 1998. What is remarkable is that most of the growth in total poverty in El Salvador in mte period 1992-1998, comes from the growth of urban poverty (92%) (graph 1.3). 1.6 The largest urban area in the country is centered in the capital city, San Salvador and thirteen surrounding municipalities that form its metropolitan area (AMSS). The civil conflict produced major population shifts toward the AMSS and secondary cities. According to the 1971 and 1992 census figures, AMSS grew at an annual average rate of 4% between 1971 and 1992. Much of this growth was captured by Soyapango and Apopa which experienced average annual growth rates of 13% and 15%, respectively, mostly due to a combination of access to industrial employment centers and relative low land values. Since then the AMSS has grown from 1.4 million in 1992 to almost 2 million people in 1999, making up close to 70% of the total urban population and 32% of the country's population;. The urban agglomeration continues to grow mostly to the north in Apopa, Nejapa, and Tonacatepeque, to the east in San Martin, to the West in the corridor to Sonsonate, and to the south on the road to the new airport (map 1.1). 1.7 According to the Universidad Centroamericana, the poverty level in AMSS was about 23% in 19982, which is equivalent to 15% of El Salvador's poor, a very high concentration of poor in one continuous geographic area. The welfare measure calculated for this study, total consumption per capita per year, yields the following results for the AMSS: 'Data on total population and urban population in El Salvador comes from the World Development Indicators. The number for the AMSS's population is a forecast commonly used by different agencies. 2Their welfare measure is income and the basic food basket in urban areas is $287 per family per month. This poverty level is very conservative as $287 per family per month is barely $2 per capita per day, which is not really sufficient to satisfy basic needs. 4 Toiai consu-ptionU per c.ap1i Rr ye' A-11- Minimum $ 135 Maximum $9,413 Mean $2,086 Population under different levels of consuwmLption It AOL % uwder i doloaricapitaiday % under 2 dollar/capita/day 13.8% % under 3 dollar/capiwau/ay 28O.3 %O 1.8 On average, AMSS citizens live on $5.7 per capita per day, with the poorest having to srvive" on 37 cents per capita per day and the richest consuming $26. per capita per day. Almost 30% of the population lives on $3 per day. Map 1.1. San Salvador Metropolitan Area 'FL AMS..;V BUS -MUNICIPIOS I ,,.;9,CSabnit-;. ; i ,, S_ ~ i ____________al_______ -1 - -.\L; '; .. W 6Sg O SSl6 ad ,,,,, K :.. -KA . .8.AuixDqa B- Cuatufl~~~~~~~~~~~~~~~~~~~~~~~~~~~~n9O~~~~~~~ .1O~~~~~~~~~~~~~,DeIgado~~~~~~~~~~~~~~~~~~~~~~~ IS- Toncs2epqu~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ., .~~~: ~,OPAMS Si Snurce, OkMSS~~~~~~ 2. HOUSEHOLD AND NEIGHBORHOOD CHARACTERISTICS IN AMSS 2.1 This chapter describes the living conditions of households in AMSS and their perceptions about the neighborhoods they live in. The data show that poor households are very disadvantaged in terms of household size and growth, in-city mobility, education levels, and participation in the labor market. At the neighborhood level, though, problems are similar across consumption groups, violence being the most important, followed by water and solid waste collection services. A. Household migration, groWth, and mobility 2.2 A considerable percentage of the poor formed their households in other regions of the country and then moved to AMSS (21%). This percentage is slightly lower for the well to do households (17%), but is overall high in all quintiles. A good portion of this migration is due to the civil conflict, which affected all socio-economic groups, mostly in rural areas. When asked the reason for choosing the neighborhood where they live in, the driving factor for poor households is "land price", which in this context should be interpreted as land availability (46%), and is a natural response to their financial constraints. Since the poor depend more on their communities to solve common problems, the existence of friends in certain neighborhoods is another important reason to decide where to live (27%) (table 2. 1). Table 2.1. Household characteristics by household consumption quintiles in AMSS, 2000 [.Characteristi'cjI j:JQl_1- |Q2j ~ J Q3j ,i-Q4 |IQ5' Total Place of hhld formation l -%inAMSS | 79 1 84 1 82 81 1 83 182 -% out of AMSS 21 16 18 19 17 18 Iwosun ior ciuuubmg arziguvrnwu. - % choosing based on location of friends 27 25 23 20 15 22 =% choosing based on o-e -., 12 2 32 32 AA 20 | -%choosing based on land price |j46 |42 | 3 I Household size (number of members) 5.7 4.7 4.3 3.8 3.4 4.4 | Household size growth l I I I l - % hhlds that increased in last year 119 114 1 3 110 7 1 3 * Birth 80 83 75 79 76 79 * Other people joining 20 17 25 21 24 21 - % muds that decreased in last year 8 i3 i3 iU 10 i i /0 idwiufiM i nenILIL1-. Uonsto115Ll lela-ve innx.ye Y 61 0 6 0 6 1 9 I S ...,World Bank, 2001. 2J . 3 I 1Poor &aU1J1 IuW holads &-ue l-rgeuUU1r & & asLtr U.IUU - U weah-1 Uy ones. FV., house sizUe i significantly larger in the first quintile than in the fifth (5.7 versus 3.4). Second, more poor households repor'.ed gro-Wul oft Ir frLIIJy u1L3 UIJ.a UIU UIV wealuiy (197/ Ver3Us I /0). ITI h. 1o itFUb1IUIo UI gow1u, though, does not vary much by consumption group and is due mostly to the birth of a baby (79%) and seconiu:y 'Lo oUlVe pe0pl'e Joir.ing ue household 21%0). CombinU1L1ir.gL pelrce.-.U' 11ofhouso ULU reported growth with those that reported birth of a baby, it is possible to infer a birth rate of 15% in the --- --_-_______ - -_ n_ -1_.0 CA__/: TsL_ A__ 1 - M_L _ . __ lust qumlIIU vrfutb U IULt UL J370 Ul UlV 1lZbL qUIIIV. 1111b 1Ueans U'ldL nILUIU 10UWUI UIUn11g the poor is going at a rate that is three times that of the rich, an important consideration for policy purposes. 6 2.4 The poor seem less mobile within the city than the rich, at least in the short run. Only 6% of poor households have firm intentions to move in the next year, whereas 9%, of the wealthy households plan to do so. This might be linked to the fact that the poorest families do not have property titles (see next chapter) and therefore would have a hard time selling their properties. B. Education and occupation 2.5 The poor in AMSS have very low | Gmph 2.1 levels of education (graph 2.1). In the first hEu-sec-consumpt- i.on quin.-6lesholA h an AMSS 2000 quintile, most of the household heads have h no education or an incomplete primary 100% education (75%). By contrast, in the fifth go% I [4 '[. 1 L} University quintile the majority of the household heads 80% llHIIl _II_--- IIl, incomplete and have at least incomplete university education 70% - more (62%). The graph shows very clearly that com l _Eewndary mpew education certainly matters in the I ",°]L >-1 determination of who is poor. In fact, 30% 11 m - fk111 Primary compiete or exploratory regressions confirm that 20% |I*Ul E lllll IIIIH inoomplete education is a significant factor in explaining 10% 1 variation of the welfare measure. I % one Quin ts Source: World Bank, 2001. 2.6 A significant percentage of poor household heads do not participate in the labor market (33%), many of whom stay at home to take care of their families (22%j) and some are unemployed or do nothing (8%) (table 2.2). Among the wealthy the picture is different. The majority work: 81%, and a considerable percentage, 9%, is retired. Unemployment and household activities have very smail shares in the case of wealthy households. These results are linked to the fact that among the poor there is a higher rate of female headed households (39%) than among the rich (24%). 2.7 Working conditions are very tough for the poorest AMSS citizens. First, a large percentage is self-employed (37%), which is associated with greater job insecurity, less benefits and no affiliation to the social security system (42%). Second, many poor workers work part time (21%) and very few have secondary jobs (4%). The situation of the wealthy is better with a smaller percentage self employed (23%), more people working full time (88%), more people affiliated to the social security system (77%) and a considerable percentage having secondary jobs (13%). 2.8 A significant portion of the poor work in their neighborhoods or even in their own houses (18%). For these people their neighborhoods are very important since they spend most of their time there. This also gives a different character to poor communities, which tend to be more self-contained micro-cities. Table 2.2. EmAploymen..dt charactteristis by household Wonsum03pfion Af%nffl.n.o a AMS 200l0 I rh_. teri-t tic 17 I a t IasI( I,; TnitAl Main occupation of hhld head - % whose main occupation is household management 22 17 12 7 7 13 - % whose main occupation is to study 0.4 0.4 0.77 1.0 0.7 0.6 - % whose main occupation is to work 67 72 1 74 81 73 -% who are retired 3 7 12 13 9 9 - % unemployed 8 3 5 3 1 4 -% doing nothing 0.4 0.8 10 1.4 1.4 0.8 IType of employment (all employed members) I I I who are managers |I | 3 | 4 |7 4 l - °,'u who e ...... ployees IC62 7 6 70 70 70 I - % who are self employed 37 31 27 25 23 28. - 0whn wnrk with nn renmertion 0.6 nu0 I 0.2 I'0.9 0.4 0.4 | Conditions of employment (all emploved membersl: I | -%workingfulltime | 79 180 183 1|85 88 |83 l % affiliatedtoSS 43 52 163 167 177 j61 l I -%withsecondaryjob 4 7 10 9 13 8 Job location (all employed members): l -%workinginhouse 10 1I1 1 9 7 9 % --oworking in nei g'n- -or'n - ou, 'oUt not 'm niouseI I I 14 4 D I -%working in city, but not in neighborhood 56 54 | u8 |62 64 |59 E -working in di-,rent cit;(.......... ostwithiAMS -l2ull... |v 29J l 0l2 6|2 Source: World Bank, 2001. C. Neviguuouroo cua"uterlsruxc 2.9 There is fuli consensus across quintiles on the most important problems in neighborhoods: violence is first with a 37% share, water provision is second, with a 14% share and solid waste collection comes in third with a share of 1 1% (table 2.3). Violence seems to be a more important problem for the well to do households than for the poor, but surprisingly, water provision is felt as much a problem among well-to-do and poor. Solid waste collection, although also a generalized problem, seems to affect more the poorest households. When reviewing the results by gender of the respondent no difference is found: the same three problems are the most important ones and with similar percentages. 2.10 Neighborhoods, across all quintiles, are very stable, with households living there, on average 15 years3. This factor contributes to making them cohesive with relatively high levels of community participation. Participation is by far highest in the catholic church: 31%, followed by other churches: 23%. Community improvement committees get a 15% share and sports and cultural groups get a 7% share4. The only noticeable difference across quintiles is that the catholic church gets higher participation in the fifth quintile: 41% than in the first quintile: 24%. It seems as if other churches are gaining more popularity among the poor. When asked which organizations have helped the most in solving community problems, community improvement committees are the winners, with a 28% positive response rate, and 3 In the first quintile the distribution is: (0-5 years): 15.2%; (5-10 years): 18.2%; (10-15 years): 20.4%; (15+): 46.2% For comparnison, pIardLICipaiL naies ir, coIII munity UrgariziUns go fruon 8.3% 7o Lu 9.6% tnrougnoiit income quimtiles in Cali, Colombia, according to a recent World Bank study. 8 this trend is stronger in the lower quintiles. In spite of uneven participation in the catholic church, approximately 16% of the households in all quintiles report that it has helped significantly. Table 2.3. Neighborhood characteristics by household consumption quintiles in AMSS, 2000 -Characteristic, Q5 Q3| Q4a | t important problem I I % reporting violence as most important problem 29 34 36 41 43 37 % reporting water provision as most important problem 13 12 13 14 18 14 % I reporting solid waste collectionasmost imiportant problem 10 | 9 19 10 | 1 | 1 l llmelivmg mneignbornood (years) 16 16 16 14 1 3 j 15 I %vr,aIZdLUin Ul W11Ih IUULUoUU1U PdlLiWpaUion,S LreqUet l l l I l l - % who participate frequently in catholic church activities 24 22 33 33 41 31 l - .no p in other chArchesactvities I26 3 n ) I i 2 ! 23 - 0>0 who participate in community improvement committees 20 11 13 16 i3 15 - % who narticipate in sports or cultural groups I 0 7 6 7 3 7 O Organizations that have helped significantly in solving community | l l l problems: - % who think the Catholic church has helped significantly 13 1 8 1 7 13 1 7 16 % who think other churches have helped significantly 8 1 8 6 85 - % who think comm. improvt. committees have helped significantly 35 32 24 26 23 28 - % who think sports or cuitura groups have heiped significantiy i4 i 4 5 i2 4 Source: World Bank, 2001. 3. LAND AND HOUSING 3.1 In comparison with neighboring capital cities, access to land and housing by AMSS's poor has been easier. This is in part due to the relative flexibility of land regulation, the supply of housing to the poorest through NGO programs and active informal land developers, and a generalized positive attitude in different government instances toward legalization of land tenure. In spite of these positive aspects, the poor still face many problems, among them, high levels of property insecurity, low housing quality, very high crowding rates, and no access to formal housing finance. The chapter is organized as follows: in a first section the institutional setting is described, in the second the structure of land and housing supply is explored, the third section summarizes the most important financing issues, and in the last section the results of the household survey are discussed. A. Institutional setting 3.2 Land and housing are very dynamic sectors in El Salvador, undergoing several reforms at the moment. Agencies at the national and local levels, and NGOs, among others, participate actively in setting up the institutional framework for these sectors. 3.3 A new and broad based housing policy for the country was announced in October, 2000 by the Vice Ministry of Housing and Urban Development (VMVDU). It includes: market-based financing, subsidies targeted to low income families, legalization of all informal land subdivisions, certification of informnal developers, no government supplied housing, and greater municipal control over housing regulation. These goals clearly make a sharp break with earlier approaches that tended to ignore the issues of land titling and informal development, two crucial aspects for the poor. To achieve its new policy, the VMVDU will continue to set policies, financing limits and housing standards for units built for middle and lower-income levels in the entire countrv. and will strenehen its Human Settlements Unit in charge of creating and managing shelter projects directed to the poorest, including land titling and urban upgrading programs. 3.4 Since the two earthquiakes Of 2001, the ,VMV,DU has centered its attpntion to the reconstruc tntin nf the 115,000 housing units destroyed or damaged nation wide, including the redirection of the housing sidiesA;,e nroram for those af.fected. It has also been invnlvpA in the rP+t1Pm.n nf entiottpre in thp. mnot vulnerable ravines subject to land slides and flooding in the AMSS. 3.5 Real property recording and registration a key aspect of real estate markets, will greatly improve pi al Sa1vador o.nc the .Nationa! Regr rt (C'NR)r-,- ,at. in 1994,aam.plat.IG its lo rr, n project of creating an up-to-date, self-sustaining, digitalized, efficient, transparent, and integrated cadastre and r - ys,tem fo: -s.e 1.6 I p e +h- -L the . SoJ f., +1J1 -roJ-c, f; -A.--d in by w World Bank, has covered the department of Sonsonate and is working in Santa Ana and Ahuachapan. The CXR is au"ng to cover the 200 Ib2 of-k4 ATVIS s0 at the ed of 21 wiLLI a cost of $16illiV, solving the present backlogs and inefficiencies of the San Salvador Registry and Cadastre. 3.6 There is great interest in improving land tenure security in the AMSS. The Instituto de Libertad y Prngreso kii- ), for iULs1%V, is rVIIVIUVVIy il iinfjoiriil WJlA-lIUL1 UlrLLUte paruy tnspi1ue oUn Uie wriLUlgb of Peruvian Hernando de Soto. The main contribution has been the efficient titling of land plots in the imoiimai secor, ue Luley invasions or sub-uivisions. In IYYO IL aUsbtdU J,200 fiuz1i:es m wue entire country in the legalization of their properties at a price of $92-132 per title. LLP works with large groups of families at a me, unaer so calea "-titlimg projects". Eacn projeL takes more than a year to complete. LLr is trying to speed up the process and make it cheaper by subcontracting with the private sector and NGOs. 10 3.7 Except for the capital city, municipal governments in AMSS have had little influence on land and housing. This is in part due to limited resources and staff, but also to the fact that there is no property tax in El Salvador and therefore land management and land information (cadastre) for fiscal purposes are irrelevant. In addition, there is still a high level of centralization in the country, resulting in few local government responsibilities, basically management of public 'markets, organization of public parking, functioning of slaughter houses, street cleaning, and solid waste collection. The Municipality of San Salvador is the only local government in AMSS that has projects dealing with land and infrastructure issues, including urban upgrading, the renewal of downtown areas, and the city's cadastre updating. 3.8 The mayors of San Salvador and surrounding municipalities have understood the importance of metropolitan planning, creating in 1988 the Council of Metropolitan Area Governments (COAMSS). The Council meets weekly to share common problems, to discuss issues of metropolitan impact, adopt policies, and determine combined needs for technical assistance. The latter are channelled through the Metropolitan Planning Agency (OPAMSS), a unique organisation in Central America, dealing with urban planning and development in the metropolitan area. It is financed with building and subdivision permit fees. OPAMSS provides municipalities with information, GIS technology, and analytical support in their planning activities. It is also in charge of rationalizing the delivery of metropolitan services that lend themselves to economies of scale. For the moment it fulfills this function only in solid waste disposal (a JICA financed study is being completed), but in the future, perhaps drainage and transport. 3.9 Land regulation in AMSS has been simplified since the creation of OPAMSS, but still has a long way to go to become more flexible and responsive to market changes. In fact, constructors and developers complain about the amount of regulations that they must comply with, including OPAMSS's and those of ministries and utility companies. They claim that more than 80 laws and regulations seem to apply, though not simultaneously, with a final approval taking many months to become effective, and a consequent increase in the cost of housing of 5%. In addition these regulations are not published in a single manual, creating confusion and additional delays. VMVDU, with support of the Construction Chamber, has proposed the creation of a single authority to deal with subdivision and construction regulations, the so called "ventanilla Iunica". B. Provision of land and housing 3.10 The VMVDU estimates that in 1999 the quantitative housing deficit in AMSS was of 12,896 inlts ar.d the- nquali.t.tive Aeiwi.t AA,074 inits. This result shows tbhat more- thain newu hnousing .what is required in AMSS is the upgrading of existing neighborhoods that lack basic infrastructure. 3.11 The formal housing sector does not serve the poorest of AMSS residents. There are more than 300 .formal developers uho bhuy lanA ururane7p ; nA conch-,nt housir.ng uiuts. A A o-n of thes developers are large firms, with the majority being small businesses. Their lowest market segment corresponds to middleAow i-come units that sell ir th.e r , AAAS $6,000 t-, ( rflnff_ sli are necessary to afford this type of housing. The developers' main constraint to cost reductions are the cost anrd availabilily of fwat-r supply, lengnhy -r.Ac - e - for s ;.v nperm an.d -acI. of l-nn>+rrn, UJ~ AAtI o anu...~ *Jfl M T -%-V UtqJ J, -lV155U3 pF -J"VtU k'., Ji U 'fVloA flI ..... -'-5 a I"Va MJLfll$SL 1 financing. The annual production of housing in this segment'was of 1,300 units in 1999,' down from a peak of 2),Q00 ur.is in 1994A. In gener-a, th frra1 housing sec-o is going +-hruglk a national crisisA -u to Ut £.,U~v tu a II ALV~. 11 Xi%f A tEAt. LVA110 SUO1LAAr 0%t,Ltl so rWAAI15 in 5JU51 " I.atju1a I.. AI1I U Ut J the economic slump of the last years, with a stock of over 20,000 units, in all price ranges, unsold. The UUI U t I3 i 11tliJJ I3.1 Housirig IN's have beer,VL Ve11VLV;LV atL prIUViUd,I, sIVILVI o1.ior,s LU U1e VVIe pooU, UUL III a siri,al scale basis. They have low-scale housing projects for either building new housing, rehabilitating the existing stock, or inmproving relate( iInraSLuucIIure. Inhese INCws mobiIize iuliullg from Ioreign UUdUrs and international churches, and from the National Fund for Popular Housing (FONAVIPO). The latter 11 source is explained in more detail in the final section. These funds are used to initiate project consiruction, to grant technical assistance to clients (families or communities) and to pay the administration of the programs. The families who enter the programs are generally below two minimum salaries. Tney are granted preferential short-term credits and occasionaily subsidies. Repayment rates are high, allowing the continuation of the programs. Annual production of housing units by NGOs in AMSS is estimated at i,500. Wniie the impact of these NGO programs has been small in terms of numbers of households, it has been greater in terms of demonstrating that access to housing by low income families is possible and that good cost recovery practices are key to sustainabiiity. 3.13 El Salvador has a unique and extremely proactive informal land market. The Constitution of 1998 for the first time separated the concept of legal tenure from provision of basic services. In most other countries of Latin America urban land can not be legally subdivided and sold for housing purposes without first meeting requirements for provision of standard basic services. The same legal concept prevents provision of public services to land which has not been legally titled, leading to a vicious circle in which homeowners cannot get legal title to their property for lack of services, and cannot get services for lack of legal title. El Salvador has moved beyond this and a very active informal land subdivision market has emerged. Informal land sub-dividers or "lotificadores" buy large estates mostly in rural areas and subdivide them in small lots that they sell to the poorest population under a leasehold agreement. These lots do not have any service or infrastructure and do not comply with subdivision regulations. Lots cost on average $1,400, a price affordable at one minimum salary. The conditions are very favorable: no interest and no down payment. Nation-wide, there are some 150 land sub-dividers in rural areas, four of whom dominate the market. Although they operate mostly in rural areas, they cover some of the municipalities in AMSS. Besides, they have sold many lots in the past that are now entire neighborhoods in the AMSS. It is difficult to quantify the supply of these informal developers as their operations go unrecorded in the formal system. The largest of the informal land sub-dividers provides general financing to its clients that can be used for housing construction and improvement. This is done through the use of a sort of credit card backed up and insured by the company. The interest rate is 30% per year, which is quite high, and the debt is guaranteed by the lot, which carries a high risk. C. Housing finance 3.14 The Social Housing Fund (FSV) the main source of housing finance in the cou ntry, does not benefit the poorest. FSV offers housing credits to employees affiliated to the Pension Fund System. FSV used to obtain its resources throuLb a deduction in each affiiated employee's salary, matched hy thie employer's contribution. With the privatization of the pension system in 1998, it is now the private retirement funds that directly have to invest in FSV FS offers loans for buying new housing, pu rhasing used housing, constructing, housing improvement, and lot and service acquisition. The loans have interest rates of aron-d 9% and terms of 15-25 years. The number of families beneft.ed firom the credit progrm has varied from 8,200 families in 1997 ($9.9 million) to 3,800 families in 1999 ($10.1million). Most of these fCamilies fall in the poor to middle in-ome catego,, with 2-3 minimum salaries. People working in the informal sector are, of course, excluded from the system. 3.15 The National Fund for Popular Housing (FONAVIPO), does not target the poorest families. FONkAV!PO, a t3geted subsidy programl, is implementJLed thdough authorized inter ediay ist1tut1o such as NGOs, banks, developers, and financial institutions. FONAVIPO, before dollarization, faced sev .. . tflLflu.Ioe, among o+..rs: high in+.. es. t at, whil%," "Jm.a Lkes we prva ll aLU uve for 'UJ eVet positioned financial intermediaries, high risk level of the remaining intermediary agencies, notably NGOs ar.d Adevellopers, zll ofwhc -taslt ineven" hger intert-.s forthe erndusersof ul .on-.Am %Ai %A.`V C11jJ. 1 W I .JLVV11iJ UUU3OIC14.U LU VLI UI5U JUILUIL I aLUV MI0 ul IU ~ uie U pu Insil a~ consequence, the programs financed by FONAVIPO are unreachable for families having less than two r. inimum sala4rl.es. l.is in L U.s , has- 1--es"ul a lo-w volurlUe ofl operairios ard a udeficient cash flow: 12 while in 1997 FONAVIPO assisted 6,200 families ($9.1 million), in 1999 it only served 1,500 families ($1.1 million-). D. Results of the household survey concerning land and housing 3.16 Although exclusive property occupation is the most common occurrence among the poor, some 8% of poor households have to share their houses with others (table 3.1). This usually happens in old houses in the city center, called "mesones", where new and young immigrants usually settle. Each family has a bedroom and shares all the services and common areas. According to experts, these families, once they start growing, find it more and more difficult to occupy such small spaces, until they decide to move elsewhere, usually to a new land invasion. Table 3.1. Tenure status by household consumption quintiles in AMSS, 2000 [,Characteristic ']'3! ,-,-I-Q3Q4 |Q5 I Total_| % in exclusive occupation 92 93 96 97 99 9 1 Tenure 0-% who rent 13 (12 15 17 1R 15 - % who have a leasehold 28 27 24 25 21 25 - % who own with mortgage l 3 3 4 6 3 - % who own and have fuly paid 139 48 53 53 55 50 - % who are informal 19 110 4 2 0 7 Documents (only for property owners) | | l I -%owithiregistereatide 48 721 l 82 93 l9.5 l 79 1 -% with unregistered title 8 6 7 3 1 1 n/ I-- -% iheisteritl J-(-1 I I --/O WLU^ 1PbL1Vho: doc.2 l0 |0 |0 l0 lI l I u%with property tax receipts ,2 1 1 0 1 1 I I _/A with a rvi. P r. Pinfc )J 1J 1 0 11Ij n I 1 %with nodocumentation v 37 I '8 | 8 1 3 | 2 | 14 l Reason for not having document (only for those who have | | l | weak documentation or none) I I I I I Il I% declaring informal/illegal tenure 66 43 NA NA NA 53 If there is title, to whom is it registered j l l l l I l l/ -nrlis navmngui neue registere unuer coupie I ii I ii If i4 J zo 2 261i7 -% hhlds having the title registered under female head of 34 133 132 130 119 29 %A sv t i7 nIC 14 IC 37 1 - % hhlds having the title registered under male head of | | . I lb thl dl l l l l ll Source: World Bank, 2001. Note: NA= not enough observations 3.17 A low percentage of the poor declared living under informal tenure (19%), but this is most probably an under estimate since many of the households reporting being property owners have weak or 13 no documentation to prove their alleged ownership (52%)5. Leasehold, a unique option in El Salvador tuins out to be an im portant alteUrnative for thne poorest families (28%). Under this scneme famiiies, without disbursing a down payment, pay a monthly fee for a number of years and eventually get to own the property fully at 'iie end of the lease period, when tite is handed in. informai developers use this option extensively. Due to the lack of regulation, there have been cases in which leaseholders have tried to sell their portion of the lease without success, iosing years of investment, and others in which informai developers have mortgaged already leased properties to third parties. 3.18 Of those poor households with no title, the majority does not seem to have tried to legalize their tenure (63%), since they give as reason for their situation "being informal" as opposed to -procedure is time consuming and costly". A reason why households do not necessarily seek legalization as a priority is that in AMSS there has not been a history of forced slum removal. But this situation might change as land becomes more and more scarce. When there is a title, among the poor, it is registered more often under the female head of household (33%). T1his is related to the fact that in the first quintile there is also a high rate of households headed by women (39%). A relatively low percentage of titles is registered under the couple in the first quintile (13%) compared to the figure in the f-ifth quintile (24%). Table 3.2. Housing characteristics and monthly payment by household consumption quintiles in AMSS, 2000 Characteristic * .Q1 Q2.IQ3 IQ4 -1 Q5->-1 Total | Type of street - % houses located on streets with no direct vehicular access 73 58 37 30 17 43 -% houses located in non asphalted streets 22 13 4 4 0 9 % houses with walls made of non- permanent materials 8 4 Il 10 10 I3 l Numberofbedrooms (#j) 1.7 2.1 2.6 2.8 3.1 2.4 0/A h vincy tn chnwpr in hSl^>vrrz nr n .........t. eitip nf nrnnr.re w . ....1 AOA I %sharing the shower with neig-hbors 6 12 12 1 1 10 I2 1 | %sharing the bathroom with neighbors 17 14 12 13 1 1 13 1 |Payment for property(only renters)l l l l l l l -Monthly payment in dollars 33 60 127 187 287 140 I% paying in non monetary form 24 16 7 4 1 11 Source: World Bank, 2001 3.19 Although the houses of the poor are, in general, made of permanent materials (92%), most lack direct vehicular access (73%) (table 3.2). In addition, a significant percentage of the streets where the poor live are not asphalted (22%). These factors make difficult the operation of urban services such as solid waste collection and street cleaning. There is a very high degree of crowding among poor households, with, on average, 4 persons sleeping in the same bedroom. Crowding is almost four times as high in poor houses than in well to do houses. This is a serious problem as crowding is related to hygiene 5 The total percentage of poor who are informal can be deduced as follows: 52% (with weak documentation) * 40 (percentage of property owners) + 19% (informal)= 40% if leasehold is considered an insecure option, the percentage climbs to 68%. In the entire city the figures, using the same approach, would be 18% and 43%. 14 and health problems as well as promiscuity. On the other hand, as many as 25,000 poor families (31%) have to shower in the backyard or outside the property, with reduced, privacy and questionable hygiene conditions. A small but nevertheless considerable percentage of the poor share their showers (6%) and bathrooms (7%). 3.20 The wealthy pay as much as 9 times what the poor pay in monthly rent, which is slightly higher than the average differentials in consumption (1:7) (table 3.3). The average rent in the frst quintile is $33 per month. A high 22% of the poor households who rent reported paying in a non-monetary way, another possible indication of informality. 3.21 The poor divide their lots much more often than do the wealthy (11% versus 1%), and the most important reason to do so is to give a portion of the land to a family member, usually a son or daughter (table 3.3). Altogether 6% of all households declared subdividing their lots in the last five years, which means that some 4,800 properties are subdivided every year, adding to the backlogs of the cadastre and registry systems. Table 3.3. Property subdivision and improvements by household consumption quintiles in AMSS, 2000 Characteristic iY QI ' Q2 'Q3 ' Q4' [QS |Total | I% hhlds having subdivided their lot in last five years 11 9 4 4 l 1 6 l Reasons for subdividing: r l l l N 8 - %subdividing to give to a familymember 78 100 NA NA NA 87 OZ iooubdividinEg,tosellnrmen I I 0 XTA T NA I NA 11 I- 70 ZOUUU1V1UILUr LU av1 I VUI &Lh 0Ir ,i i onnditinne nf nrnnprty when monvedt1 - % with no construction or partial construction 64 58 135 123 I 13 | 38 l - Years to finish the construction 4 6 17 15 I 10 16 1 | Main house improvement in the last five years: | I | - % with no improvement 66 57 52 53 48 55 - % who increased the floor area 12 13 15 17 118 115 - % who did internal improvements 10 16 19 17 22 17 - % who did external improvements 10 11 12 12 I I I I |Amount spent on house| | |l l l l lmprovemer.ts:nlastfiveyevAs(do7nnQ 1 1,A10 A1) 2,7 1A 2,2 2 QAQ 38 121 ISolirce of financing for I I I improvements - % hhlds using savings 63 66 64 61 72 65 | hhdsIus' loam frompublicinstitution | 4 16 | I|5 14 I I h %hhlds using loans from private bank 112 110 114 125 1 18 116 l -%hhldsusinghelpfromfamily/friends I1 8 7 4 3 6 -%hhldsusing loans from employer 2 6 | 2 |_0 0 2 I - i hds using other sources I_8 1_ 4 1_ 8 1_ 5 1_ 3 15_1 Source: World Bank, 2001. 3.22 In most cases the poor start with a lot and either no construction or a partial construction: 64% of the poorest housenolds reported this situation versus only 13% of the wealthiest households. Poor households took, on average, 4 years to finish their houses. In the last five years, when already well established, few of the poor households invested in improving their properties (32%), although those who 15 did, invested considerable amounts of money. Improvements were distributed evenly in increasing the floor area and improving internal conditions. The cost of these improvements over a 5 year period, as reported by respondents, go from $700, on average, in the first quintile, to $3,808 in the fifth quintile. Although there is a significant difference between these numbers, it is interesting to note that the poor do invest in home improvements and the amnount is considerable, in relative terms. 3.23 As for the sources to finance these improvements, the most important across quintiles, by far, is personal savings, used by 65% of the households interviewed, and a remarkable second is loans from private banks, with an 16% response rate. Among the poor, help from family and friends is an important third source, with a 11% response rate. Not surprisingly given the discussions on housing finance in the previous section, loans from public institutions are not an important source for the poor. 16 A BASIC A EP,DXTFIE 4.1 AAltough access to basic services in tAe AMSS has i.proved ovr se lat y s, s e. acquisition, and affordability, especially for the poorest, remain a serious problem. Institutional issues lie behU.d "I%O F WW-0s -l This 1JI ca VW.er c Lv. LtIh UntULI.Uas. n,aLLU ce, V 4quOL7 GLII ar.d L pr,ir, oV wate and sanitation, electricity, solid waste collection, and drainage. A~. VY'ae UL ud UUUrnUIU t4. ILeV U1IiLULtIInal seLLUIr fVI wf and 4UIiUiUII HI Lsnao tUVIO tMSS L cn'r aroULUIU UIV, rI,.LIuora: WtLVI and sanitation agency, ANDA (Administraci6n Nacional de Agua y Alcantarillado), which owns and operes WauedulCS in 18O. ,rU,-ur,icpaliies anUU bUlliUy se-WVers i O8. JUUgin1g fVUI its IVUbUUIUL paLVI7Ii VI the past five years, ANDA's main concern has been reconstruction of the national water and sanitation systems dusiroyed in Lu war, outside ouf San alivauor, wiui 35%1o of 1EOU investment. Durng this period, San Salvador benefited from two loans, for a total of 27% of investment. 4.3 One of the main problems of the water sector in El Salvador is the lack of a regulatory body to oversee the operation of AMNDA and otier smaller providers as well as set tariffs and control quality of service. Another problem is ANDA's weak financial and managerial situation, particularly the lack of resources for investment, whicn affects in a disproportionate way the growing poor popuiation, and a deficient cost recovery. That is why since the conclusion of the civil war, El Salvador has been weighing a program of institutional reform involving ANDA-s break-up mto municipally-managea water ana sanitation companies, and its possible privatization. 4.4 Although access to piped water has greatly improved in AMSS over the last ten years, 18% of the poorest households, equivalent to some 14,000 families, still lack the service. The household surveys show access to ANDA's services that go from 82% in the first quintile to 97% in the fifth quintile, (table 4.1). Private operators are serving all socio-economic groups at 3%, with a slightly higher percentage in the first quintile, of 4%. Of the remaining sources, bottled water is a complementary source for all groups, but particularly for the wealthier. The standpipe is an' alternative for the poorest with a 10% access rate. Refer to Annex 3 for a comparison of access indicators in different Latin American cities. 4.5 The poor have to wait longer and incur in extra costs to get a water connection. First, a considerable percentage of the poorest families had to wait more than five years, after settling in, to obtain a water connection (30%). Only 8% of the well to do were in a similar situation. Second, the majority of poor families attribute their connections to community action (60%), while the majority of wealthier families point to private developers (73%). Across all quintiles government action rated extremely poorly, mentioned by only 2% of the families interviewed. Third, the poor paid more for the installation, and this is related to the fact that many of them got connected through special programs after they were already living in their properties for some years. On the other hand, the well-to-do families pay part of this cost when they buy their properties. 4.6 Although ANDA's coverage per se is relatively high, the qualitv of the water service is not. ANDA confirms that few areas within metropolitan San Salvador enjoy 24 hour per day service. Eight hours per day is standard in Soyapango, Ilopango, and San Marcos while San Martin, Apopa, Nejapa and Tonacatepeque regularly receive far less. The household survey confirms that, of those connected to ANDA, 45% have a coverage of less than 24 hours per day, and 24% receive water for less than 8 hours per day, and this result is rather uniform across quintiles. 17 Table 4.1. Water services by household consumption quintiles in AMSS, 2000 [:Characteristic -' Ql- -|Q2;'|3 | 'Q ' IQ5 | Total | I Q3...O 11 1 I A - % hhlds with access to ANDA 82 89 95 96 97 92 - 0%. hhls wuith acesps to nrivate nno--rtnr a I3 2 1 2 - % hhlds using public/private truck 3 2 3 I 0 2 l- %hhlds using bottles 16 33 55 71 77 50 -%hhlds using standpipes 10 |4 1 1 0 3 3 % who had to wait more than 5 years to get service 30 29 25 16 I 21 (ANDA only): l j 1 l 1 l How was the service acquired (ANDA only): v/e nnias acquiring service utrougn personai action 21 18 2Y La IY z12 -% hhlds acquiring service through communal action 60 50 20 13 2 29 - %/ "dsA aqA I gs r. e+u .......... o reta-o .... I 4 I 3 2 - % hhlds acquiring service through developer 13 25 j44 57 73 42 Amount paid for installation (ANDA only) (dollars) j 72 86 46 34 29 53 l Hours of continuous water service (ANDA only): l I l l I l I -%with less than 8 hours 123 21 1 30 125 128 124 I | -with less than 24 hours |32 |40 |50 |50 |52 |45 l % who drink ANDA's water without boiling: 72 64 48 126 128 47 -3 - , - -- --- '-,-M _g___ -7 -" I m3 Of consumpuon per moniuh per niin; (only for ANTJAL)7 )Y 39 4 1 0 1 3 Y 4 1 4i I Iotlp..etd!& l~ l l" lI -ANDA 8 10 11 11 12 10 I Private acrniediict 4 6 17 16 Is I Other sources 13 |19 |14 |13 | 8 |16 I Deduced average tariff (only for ANDA) in dollars/in38 0.23 0.26 0.24 0.31 0.25 0.26 l ** Only_for_households_who_showed_the_receipt !_!! ! ! ! Source: World Bank, 2001. 417 The household survey shows that 72% of families in the lowest quintile drink water from the public aqueduct without boiling or other treatment, while in the highest quintile only 31% do so. Poor fasmiles appear either to trust the public anonedinct more than well to do familiep or simply to have less choice in the matter. In fact, according to the USAID/CARE/OPS Evaluation of Potable Water and Sanitation, 1QQ9 "annroximatelv QO%/n of the surfare water is fonund to hbe high1v onntaminated fnr 6 Households might have more than one source of water- therefore the sum of nercentage access might be greater than 100. 7Consumption data for other sources turned out to be unreliable (too wide a variation and many missing values). This is understandable since people keep better track of how much they pay than how much they consume. Without receipts, it is difficult to estimate consumption. M Ideally, this analysis should be discriminated by fixed and variable charges, since subsidies to the poor should only be included in the fixed portion, leaving the variable cost to reflect consumption decisions. Unfortunately the payment information is not separated this way, and in the case of El Salvador, subsidies are included in the variable protion. 18 organic waste, agro-chemicals, industrial waste and a disproportionate erosion caused by unplanned A '+- Tari ff- ~ ItM A_- -+ c- C/- o 'l ~ -A-1 ~ - … !.+.A destruction of. forests." Mn domanrenLts ci'.e 95°,' of El SlJ1Qvador' sU1Q% WQLc wae ......lnatd. 4.8 Tariffs for water services are made oi a fixedu minunum cuarge plus chiarges UdsIrUilUluLCU uy consumption levels and by land use: residential, industrial and commercial. Institutions that provide social benefits, such as churcnes, hospitals and schools, are under a preferential regime. THe current 'tariff structure, set-up in 1994, was originally conceived to cover current operations and maintenance costs, leaving out investments, and was supposed to be updaied every six months. Unfortunately the updates never took place and today the tariffs do not even cover a reasonable portion of operations and maintenance. Finaily tnere is a measurement problem, with many connections un-metered and no updated cadastre of consumers, resulting in an unaccounted for water rate of 39% and a reported 13% commercial loss. The outcome is financial problems for ANDA and a clear deterioration of its infrastructure. ANDA's statistical report for 1999 shows income for the past' five years lagging some 20 -25% behind operating expenses, not including amortization of investments which are generally paid by the national government. In addition to financing ANDA's investment through the Fondo General de la Naci6n, the government subsidizes the company's operation, which indirectly benefits the better off households as these consume more water than the poor. 4.9 The household survey shows that the poor pay almost as much as the wealthy for the water they consume. First, average household water consumption per month does not vary much across consumption groups, fluctuating around 41 m3. Although per capita consumption is much higher in the fifth quintile, household size is higher in the first quintile, equilibrating household consumption. Since consumption is relatively constant and tariffs are differentiated only by household consumption levels, the result is that, on average, the wealthiest pay only 1.5 more than the poorest. In fact, the deduced average ANDA tariff varies only from $0.23 per m3 to $0.25 per m3. Further inquiry show that, although ANDA prices per m3 are in 1 to 5 ratio from the lowest point (20m3) to the highest (40m3), only 8.1% of the households in the first quintile consume less than 20m3. |ie Box 4.1. ANDA's poverty program In answer to the needs of metropolitan San Salvador, ANDA introduced a special program in 1995 with help from UNICEF and the government of Luxembourg. In the past five years it has reached 125 low- income communities, benefiting some 20,000 families with special projects identified by community members. ANDA follows an inventory of communities which have requested services since 1996. Inciusion in the program thus depends on community initiative'and participation. Comm-unity members lend labor, supervision and guard materials and, with the help of local adolescents trained in plumbing, constuct and m. ainta systems - u1ul piping fro. neighborhood --st 4.o house conectona simplified sewer systems. For low-income residents interviewed the changes are significant, measured in terrnc of time and money saved when water is nined to the house, and in terms of the nossibilitv of installing sanitary sewers and water-borne drainage from the house. According to ANDA's project Idirector, expansion or improvement of services in low-income urban communities is a losing venture and holds little interest for ANDA, as connection rates charged in low-income communities do not recover investnent costs. Source: Author's compilation, 2001. 4.10 Second, monthly payments are higher for alternative sources, probably because bottled water, which is used by half of the households interviewed, is expensive. The result again is that wealthy households pay only 1.4 times what the poor pay. As for the private operator nothing can be concluded since we do not have reliable consumption data for that source. Most probably monthly payments under this source are smaller because consumption is smaller. Third, there is a problem with measurement as 19 two thirds of the connections do not have a meter and even if meters are installed in a third of the connections, many do not work properly and are not maintained. Households without a meter or sharing one, as well as those using public wells are charged based on estimated consumption levels, which is inaccurate. 4.11 Turning to sanitation, the situation of the poor is again clearly disadvantaged. First, a high percentage of poor households dispose of their grey waters in the backyard, street or nearby ravines (average 26%), posing serious environmental problems (table 4.2). By contrast this percentage is nil in the fifth quintile. On the other hand, many of the poor families do not have a sanitary facility inside their houses and have to use latrines in the backyard or places out of the property (33%). For the poorest, disposition of waste waters is made mostly via the public sewer and the latrine system (73% and 20% respectively). Table 4.2. Sanitation of erev and waste waters by household consumntion quintiles in AMSS. 2000 IGharaicteristic I OU )- I0-1 h ,. ',,'Lt,,,'', '-.' I'T1'' ))"t _pl % disposing of grey waters in backyard, street, ravines -From shower 25 16 8 4 0 171 -From laundry 26 17 9 4 1 11 -From cooking 27 17 8 4 0 11 Place where hhld members urinate/defecate: l 1 l l l % having samtary tacility inside thie house 67 79 92 94 99 86 - % having sanitary facility or latrine in backyard 28 16 6 4 1'1 - % unnung/uefeci1u-guout uftie propeny- ; 5 2 3 O lAotn..4A + A;en.o pose hen+-rc. - %using sanitary facility connected to public sewer 73 83 89 96 98 88 -%usinganitarv facilitvconnectedtonrivate Sewer s 12 1 2 1 1 ?1 ! | -using sanitary facility connected to septic tank I 1 |2 |0 | 0 1 l I -%usinglatrine 120 12 15 2 I 0 I 8 I % -%using backyard, street, river, etc |2 j2 1 10 10 I | jYear inwhichsystemwasacquired ("DAonly) 1 I j 1 1 1 4 - % cases in which it existed when moved in 26 31 35 153 61 62 14 I who acquired it before or on i980 16 112 1 18 1 14 1 13 13 1 -%whoacquireditbetween 1981-1990 124 18 14 14 16 17 -^-/O WhoUqUdiMUIL Ur.LWenLI1-200 1 - K1 3 ; i S i 1 9 1 2 2 -Acq-;.tioncostAMNTA ^nhl MA.!-s Ica15 11 1 1 13 How was the service acauired (ANDA onn l v ) I - % hhlds acquiring service through personal action 34 126 120 116 1 21 l -% hldsacquiringservicethroughcommunalaction 140 126 1 11 16 2 I 17 7 | -hhlds acquiring service through government action |I |3 |2 |1 |3 |2 l - %hhlds acquiring service through developer I 21 | 37 I 62 1 75 1 811 56 Problems with public sanitation system (ANDA only) % experiencing bad smells I7 7 6 7 7 7 - % experiencing overflowing 1 2 1 2 2 1 l-/upnatlib i1i I~ / I I /O - IUCHUUgl I I -% experiencing no problem 182 !82 !87 !84 184 !84 ! Source: World Bank, 2001. 20 ..12 "y 26% ofrespond A e :r.UA12 uth lUwest qiu: rU.Il "a accUss to tIh pubulc swer sys+.e1Ir WUhen U1y moved into their houses, compared to 62% of families from the highest income quintile. Lower income r__milies reo^e payin subs z.;zlrroefrcnc,is ohpuicewr --+.m Averge-ost 1aLi11 £~JI L%U j)UJIr 0UU0LauIL1aII.Y flLUV LVI V.V1IL1P%,ULUii LU UIV, jUUI1I. DVWVL 0JbLV,1I1. P%VVIarV %,OL were $69 for the lowest quintile, compared with a mean of $11 for the highest consumption quintile. The cost UI1d%iA.1ial.3 z.A-eICIa exP Uy te LUf acL Ulat rr.ost 0f Ue JAJUUoes lca1IeIVI kV (7%0) UiU nIIL 1haVe connections when they moved in and of these, many had to rely on personal and communal action to get uIh %orIuL41VuIJ il aUlraUy VAeILisir.g UVvVopIue.VIU. illis is much oUIr oUstly ulau proviuing wle UoUnIneLIUII at the time of construction, before people settle in, which appears to be the case of a majority of the wealulier. Besides, foruthe wealuty who had tue systemll when moving in, these cOStS ae included in uie, price of the property. It is also important to note that most of the poor families got their connections in uhe perioudt 1991-2000, wilue ue weainier got them earlier, and therefore inflation couiu piay a role in explaining the gaps. Like for the case of water, the percentage of families that got help from the governnent in getuing connected tO the public sewer is extremely iow: i%. B. Electricity 4.13 The institutional setting for electricity in El Salvador changed three years ago when this service was privatized. Provision or eiectricai energy in tne AMSS depends on two private companies: Dei Sur, which holds 20% of the area in concession, limited to the municipalities of Nueva San Salvador and Antiguo Cuscatian, and the Compaiiia de Alumbrado Elictrico de iEi Salvador (CAEES) which hoids 80% of the area, basically all other municipalities in AMSS. According to CAEES, there are no waiting iists of communities or households needing connections in CAEES's area and that connection to the system is immediate on application for service. Overall the privatization of electrical services in El Salvador is counted as a success, with reasonable prices and efficient service. 4.14 The household survey shows that a substantial percentage of poor households do not have street lighting (20%) and of those who have, many got connected recently (49%) (table 4.3.). Most of the poor report access to electricity (99%), but this percentage hides some illegal connections since 4% of these households rely on neighbors or on informal connections (and even these numbers are low estimates, since people do not like to say that they connect illegally), and this result lines up with the 10% households in this quintile who do not have a meter. 4.15 While access to electrical service appears from the survey to be almost universal, service quality is a problem across all quintiles. Only 55% of those interviewed have no problems with their service and 65% experienced blackouts in the last 6 months. In addition, households surveyed reported problems with variable current: 21%, insufficient voltage: 7%, and flickering lights: 17%. 4.16 The survey shows that the poor pay practically the same unitary price per Kwh consumed as the wealthy, with a deduced tariff of $0.13 in the first quintile versus $0.15 in the fifth quintile. This results from the fact that tariffs depend only on consumption, and consumption is clearly elastic with respect to aggregate consumption. Another factor to consider is that CARES and Dei Sur have different tariffs and serve specific geographic areas. When asked "what happens if you do not pay the bill?", 90% of the respondents in the first quintile say the service is cut. Interestingly, only 82% of the households in the fifth quintile report having the service cut, with apparently a higher case of penalties, instead. 21 Table 4.3. Street lighting and electricity by household consumption quintiles in AMSS, 2000 Characteristic Ql Q2 | Q3 -Q4 - Total- 70 unaus with street ightmg 1 80 1 84 9 9 10/.h- ., 4,,*n .,' , I..+ ir AO0 I 2 1 1)12 11Q % S U6;n street lflfllft5 iin 1-m tt foelsOt Fnve yeeat 49 33 I 6 25 23 28 ~I % with electricitv in house 99 99 100 100 100 99 Sourceofelectricity: l 1 I l l l l % getting electricity from the electric company 95 97 100 100 100 98 % getting electricity from neighbors 4 3 0 0 0 2 Existence of electricity meter: l I - % having anpeiectricity meter that works weli 90 94 98 97 99 96 - having an electricity meter that does not work I I I O j %0/ .who h,~ave ex nperiene blackot ir.e last A mor.the 3 6 8 6 5 6 Problems withelectricit service: % having lost an electric appliance due to changes of voltage 13 21 24 20 28 21 | % experiencing insufficient voltage to operate certain appliances 8 9 4 7 7 7 1 -% with variable light intensity 121 I 16 14 19 15 17 -% with no problem 58 53 59 54 51 55 Payment per month (dollars) |13 19 | 20 |23_ 31 |21 | I Consumption kswn) I 9 i26 1 i i9i 1i | -Deducedtariff(dollars/Kwh) 0.13 0.15 0.17 0.14 0.15 0 .1s 5 WILL LI, i eciptwas sho. l l l .honthiain qifAAIes nnt nSvthP hiI l -% whose service is cut 190 85 81 87 82 85 1-% who have top ayapvenaltv 1 8 13 1 5 12 1 6 1 3 - % who are not affected |I 13 14 |2 |3 13 1 Source: World Bank, 2001 C. Solid waste collection 4.17 Solid waste collection is the responsibility of the municipality - which means that fourteen municipal companies operate in the AMSS, in addition to small private companies. The efficiency of these companies is highly variable. First, overall cost of collection and disposal per ton goes from $9 in Tonacatepeque to $54 in Antiguo Cuscatlan. Second, San Salvador, Nueva San Salvador, Ayutuxtepeque and San Marcos present high costs per person served. Third, in terms of solid waste revenues minus direct expenses, eight of the fourteen companies present negative results: Mejicanos, Ayutuxtepegue, San Marcos, Antiguo Cuscatlan, Soyapango, Apopa, Nejapa, and Tonacatepeque. 4.18 A significant percentage of poor households is not covered by the door to door municipal solid waste collection service (28%). Many of these households have to rely on municipal collection at a transfer point (23%), few rely on private collectors (2%), and a small percentage admit throwing their waste in lots, rivers, ravines, backyards or burning it (4%). Private collectors are used more frequently by wealthier households, although, overall access is low (table 4.4). 22 IJox 4.2. uullu waste maraagemeni t iri ith eirupuieuan Area -01-an Salvador A Japaese consnuiit; firm ,has been contracted recently tn AdevopI a snlid w.atP manragOr.Pmt system for the entire metropolitan area. The consultant's proposal is to introduce private sector participation in solid waste collection through a single, AMSS-wide concession which would operate in upper income neighborhoods. Assuming that a private concession would operate modem garbage collection trucks which could not reach many of the marginal or low-income neighborhoods where roads are unpaved and topography difficult, the consultants presume that lower income neighborhoods would rely for collection services on micro-enterprises. According to Bank research (Bartone et. al.) micro-enterprises in garbage collection uniformly need a mix of neighborhoods (low and high income) to be financially sustainable. It is not clear micro enterprises wiii be financiaiiy sustainabie if assigned a coliection circuit of iow income neighborhoods. | A new sanitary landfill, serving 10 of the 14 municipalities in AMSS, started operations in 1999. It i -- IoAn. m -af rCn.adAn 4..n, maA *16n. Ian m- C;- Th ħen1 hr.dI..has 5. i0AaA tj .nt.ttn U t I .0IfUU UU AJ0~I . lipa .n.... .. Ifl -1 fi(0'AlI5.0 been designed to serve these and surrounding municipalities for a period of 20 to 25 years Disnosal fees; at S1 6 per cubic ton; fully cover operation costs and leave a margin for investment and profits. This case is cited as an example of successful metropolitan coordination and negotiation. The project includes the future establishment of transfer stations where separation of garbage will take place, composting stations for organic waste, and the acquisition of equipment to process methane gas. Source: Author's compilation, 2001. 4.19 A very high 71% of poor households report having one problem or another with respect to solid waste: 28% report piling of garbage, 16% report bad smells, 13% report flies, and 13% report rats. These percentages are, for the most part, higher than in the fifth'quintile. Oddly enough, the reverse trend appears in answer to whether high prices are a problem, with better off families naming prices as a problem, 11 times as much as families who are worse off. 4.20 Pricing of solid waste collection services, as well as other indicators already discussed, are highly variable by municipality. Housing fees per m2 per month go from $0.006 in San Marcos to 0.017 in Mejicanos and 0.03 in San Salvador. Tariffs are divided into residential and industrial/commercial. Except for Ciudad Delgado and San Salvador, collection fees do not depend on the quantity of solid waste produced. The household survey shows that payments for solid waste collection services are clearly differentiated by consumption group, particularly for the municipal services, either door-to-door or using a transfer point. The prices for the municipal service using a transfer point and the private service are significantly lower than those of the municipal door-to-door service. D. Drainage 4.21 The institutional setting for storm drainage is not very clear as historically the responsibility fell under a division of the Ministry of Public Works (MOP). wh'en the Ministrv was reformed in 1998, and the Vice-ministry of Housing and Urban Development (VMVDU) was created, the drainage functions were not assigned tn any unit In Anr.! 19QQ th. mptrnnil,tan Asannino nffice (APAMq4Z anti the VMVDU signed an agreement in which OPAMSS took 'the responsibility of reviewing drainage condiftionsIO ir. tA~~ VT S% new d Jlo et0 as JC-t F.f fhe bidnSA..... pFrocess. .LXd0 s.flJAtt jfor J physic 23 maintenance and improvement of the drainage systems has not been defined, but given its importance, municipalities have taken some leadersnip. Tnus, responsibility and overiaps are an issue, compounded by the lack of global information. Detailed studies conclude that storm drainage is a major concern in metropolitan San Salvador, principaily because of frequent flooding and occasional landslides during the rainy seasons. Table 4.4. Solid waste collection service by household consumption quintiles in AMSS, 2000 rCharacteristic 9P ; I -- oa IService provider: | | | 7 7 t l % having door to door municipal collection9 72 76 78 84 90 80 - % having municipal collection at transfer point 23 19 17 12 7 16 5/6 relying on pnvate coiiectors z z 6 4 4 - % who throw solid waste in lots, rivers, ravines, backyard or 4 6 3 1 0 2 Problems of solid waste collertion servire (regardless of collection type): - % exDeriencine Diline of earbaee 28 25 24 22 21 24 -% experiencing bad smells 16 14 13 8 8 | 2 -% experiencing flies 113 | 14 10 '9 |6 | 10 % experiencing rats 13 12 15 15 10 13 - % who think the tariff is too high I 1 5 9 11 6 -%withnoproblem 28 31 131 3 142 33 Montly payment for (dolars): l l l I I l - Door to door municipal collection 2.8 3.7 4.4 4.6 j 5.7 |4.2 lviI.uuL4pal ~AIU~LLWU -i UG5LicIiI I I.C 1 2.5 1-1 1 - 1 - Private collectors 11.51 2.4 11.5 11.9 11.8 11.8 Soi-re: World Bank 2001. 4.22 Floods affect all residents in AMSS (10%), but landslides are clearly a problem of the poor (18% versusa 5% Tn fact o.nm 6 ,500 fam.liou ;n nu1nftip 1 andA I (corbine 8%/)N repo+.e hA to resettle i the last years due to floods and landslides. With the recent earthquakes it is estimated that the drainage M+ittin in A ^iVV haC ,vorser.ednA Adue to +1h6scal damage of u.dAergr-v.dA ctrnnu.-rnc A 4.) 'r.LI tAt '' ' . !_ L. A Au L............L..U ..u.....:'-_i A At1A.. A ' ' % who have suffered from physical damages due to: | l l I | | landslides 18 , 15 j9 *5 |5 7IV % who had to resettle due to floods or other disasters | 3 | L5 |L2 | 0 | 0 | 2 l Source: World Bank. 2001. 9 This indicator includes households located on streets with no vehicular access who take their solid waste to the closest street where collection trucks do go through. 24 5. PUBLIC TRANSPORT 5.1 As other capital cities in the region, San Salvador and its surrounding areas have a deficient public --+a.pr -ys.e.. T.h- -y+.m is made of -".v+.e se---- - -rvi-r regua+.eA by- fUhe cer. --A ACIOJf .0 Ofl%'hui. -a0 O.l O 3 Ix.*U 10 ,nIuuu jJI 0.AxLU1 Ut LU VFlAv%vo-fl0 Lu-USA flU -I1 --u - government under a structure that is ineffective and financially unviable. This leads to problems such as -or evi- a deiie. saeyreod -. -ogs.in - c l ly -nSect etr Al+l,oU. '70%/ of FjJfJf.J 0L4 V U UL~IiVL'6L 0OWUL43 ILVAI U, OULU %U1V~I.1U11VLI pJaLLI%LU1G1 tyj IIi 'UI, %..LJy %1HVI r1tUtLUttI I M/ UI daily trips in the AMSS are on public transport, motorization levels in the city are rising rapidly and faster LtaU U1 jtheUpopLIon I(mtIrULOILzatLIo IALdVU 34't% 1.1 last W UIUU yeals vYerus a 17% i.-creaseC ir. population in the same period, TAHAL, 2000), raising concern over increased congestion and its negative consequencesI oini ecoI.r0lic U IroWUl. x 1mbr Isuve aIVe VAFIxIpUe iII Ulls hAMpLUI UIUUUVI UIh uifollo-wing sections: first a description of the institutional setting, second an account of the provision of public UtarspoL i, tuviSS, u,irU a diUsIusionI on1 coss WIL prIUcing, adIU f 1lUuiy a11 aunalysis ofI uLv reult. VL UIV household survey. A. institutional setting 5. in comparison to land and housing, few institutions are involved in tme regulation, legislation, anu policy setting of public transport. From the government side, the most important agency is the Ministry of Public Works, Transport, Housing and Urban Development, in which two oI the three vice-ministries, Public Works and Transport, are directly involved in public transport. 5.3 Overall, the Vice-Ministry of Transport (VMT) perceives the public transport situation in the AMSS to be chaotic and unacceptabie and believes that it can De improvea by ennancmg regulation and management and through steps such as strict enforcement of. routes and designated (as opposed to arbitrary) bus stops. But the VMT has been unable to carry out such reforms because it concentrates too many responsibilities under a very limited budget. The VMT, and more specifically its land transport division, has two units dealing with passenger transport: (i) transport, in charge of concessioning new routes, changing existing routes, determining fares and schedules, administering the fuel subsidy, managing the bus terminals, dealing with circulation, trattic lights and traffic signs, and all the procedures related to transfer of vehicle ownership; and (ii) transit, in charge of administering driver licenses and vehicle plates, enforcing transit laws and maintaining the vehicle registry. In January 1999, the VMI concessioned the driver licenses and vehicle plates system to a private company. Since then, these processes have become simpler and faster. 5.4 A proposal to modernize the transport sector, is currently being discussed. According. to this proposal there will be a separate Ministry of Transport in charge of formulating transport policies, enforcing regulations, structuring legal changes in the system, planning road infrastructure use and enhancement, define subsidy policies and its corresponding financing mechanisms, and monitor public investment. The new Superintendencia de Transporte (ST) will be an independent agency in charge of regulating competition in public transport, setting and monitoring tariffs, and ensuring the enforcement of safety measures. The new Fondo Vial (FV) will be the financial mechanism to channel resources for the maintenance and improvement of road infrastructure. It will operate through road user taxes. Finally, the new Instituto Nacional de Carreteras (INC) will be in charge of construction, rehabilitation and maintenance of road infrastructure through private sector contracts. 5.5 AMSS has a master transport plan prepared by a consulting firm, focusing mainly on improving the road infrastructure through enlarging existing roads and constructing new ones, at an approximate cost of $1,300 million. In terms of public transport, the plan lays out several options including the recovery of an obsolete train system that goes along the way between Apopa and San Salvador, establishing dedicated busways, and the construction of a light rail system, all of which is estimated at $850 million. It is unclear whether this transport master plan will be implemented. 25 5.6 Although municiRalities do not have an executing role in the provision of public transport, the Municipality of San Salvador has begun to participate in the sector through the rationalization of public parking in the city center and the designation and enforcement of bus stops. If the central government were to implement a transport system a la Curitiba, as it has been discussed, the city government is likely to weigh in on this plan. OPAMSS does not have a direct input into transport planning, but as the technical support agency of the metropolitan municipalities, it provides advice on the transport aspects of city planning. B. Provision of public transport 5.7 In the AMSS public transport services are provided entirely by the private sector. There are about 3,700 operators- a majority of whom own only one or two vehicles. Operators usually belong to associations that promote and coordinate activities related to the public transport of passengers. Depending on the legal structure that they choose (general vs. limited partnership, cooperative), these organizations have different structures and fall under different government regulations. Taken together they have significant power and leverage. 5.8 In contrast to the government, operators argue that the sector is over regulated and that this is constraining service provision. They emphasize that the government-established tariffrs are too low. Thev also identify lack of access to affordable credit as a major constraint in modernizing their business and fleet. Operators. as well as the govermment, believe that there is excessive comnetition in the sector. The government is not issuing any additional route permits and the operators claim to be losing money. 5.9 Operators account for a registered fleet of 5,304 buses and microbuses, of which about 82% are estimated to be in operation. The total daily capacity suoplied by the public transport fleet is estimated at 731,600 seats. Regular buses account for 54% of the total fleet and 71% of the daily seating capacity supplied in the city: microbuses account for the rest. The average age of the fleet of reaular huses is 20 years versus 7 years for the microbuses. The regular buses have high maintenance costs, spend a considerable amount of time off the road for renairs; contribute sinnificantlv to air pollutinn, and are deemed a safety risk. A proposed law bans all buses older than 15 years from providing public transport service. If the law were to come into effect as pronosed, about 2,000 buses or 72% of the regictpred fleet would need to stop operations. 5.10 The Vice-Ministry of Transport (VMT) has authorized private providers to operate 149 routes in the AMSS and its records indicate that the fleet of reilar busces nrovides an average of 16,A00 tips per day. By comparison, results from a recent study indicate that there are currently about 160 routes in operation and that daily trip rate for buises is I inn nr aohnut 30/. les thAn the V,M,T natna (Taha! 2000). This study estimates that microbuses account for an additional 9,400 trips per day, bringing the tntsl nf dail t hic trinc tn on 5nn 5.11 Of the 160 routes, buses operate onabout 88 And rnicrobus on 72 rou+tes. About 84%, of the routes originate outside the municipality of San Salvador. Two municipalities that are important points of oin. an_ Soyanango (IS rnhu+aes andi TILa4L'cnnn (27 routes).\ T,he~, moD 4..p4...:de.o ist. Salvador. The main problem is that 88% of the routes either terminate in the city center or go through it. TWa L.. L-A *n a nr-.nnnr4n-n .er.- :.. *iU_ ,. _ LL..*.I it s IsC ed. to a h£151 con.ceSr.u!n of Us ine LU L'uh city aur has eULVIaUaed uIC LC1geVLuio puuivem downtown. First, on certain major streets buses account for a significant proportion of the total daily volume of vehicles. Second, these bes pa-k on the smal and congested downtown stree biausc tihere is no separate parking space for them. The result is that some parts of the city center get almost com~pl-tely. 1_oLe by buet-ean1i.eso-iedy AfII Y UUt11oCkeU Uy VUSev L LVI 1Mm LLUUC VJ. LUIV Uily. 26 5.12 Buses and microbuses account for only 2.2% of all vehicles in AMSS but are involved in about 20% of accidents. The high rate of accidents on public transport stands in contrast to the record in most developed countries where public transport tends to be safer as compared to other modes. The recent TAHAL study (2000) argues that many of the accidents occur due to non-observance of bus stops. People run across roads to catch buses and/or after they disembark and often get hit by other motorists in the Drocess. Another factor contributing to the high accident rate is the competition between buses operating on the same route - operators tend to race each other in competing for passengers. Other factors include: overloading, the bad condition of buses, unlicensed drivers, and lack of respect for traffic rules. 5.13 There are no terminals or designated parking lots for buses operating in the AMSS. As mentioned earlier, this is problematic because the buses park on citv streets and this creates an especially difficult situation in the highly congested city center. There are three fornal terminals and two informal terminals in the city for inter-state bus routes. An additional three terminals serve routes connecting El Salvador to Costa Rica, Panama, Honduras, and Guatemala. Most of these are small facilities with minimal infrastructure and are usually privately owned and operated. C. Cost and pricing issues 5.14 One of the main problems of the transport system in AMSS is the existence of a diesel fuel uiibsidv that haq negativelv affected the efficiency of service- raised the total number of trins, and increased the proportion of low or zero occupancy trips. The financial cost of the subsidies is borne by the Minidtrv of Frononmv and resnonsihilitv for drinniQterino' it lieq with the VMT. 5.15. Tn May 2000, eligible bus owers/operators were receivmng400-600 ga llons of subsidized fuel per bus per month. The subsidized price was set at about $0.22 per gallon (the actual price varies slightly A M A+AAr f t . Ai r A ,,s; I nlA e r----ot.-A a nkA *f ' 1 2 nor -A11 i. n n, A nf *UUI ILU J 00o *A JIXPUpJt, t ta. y. VV aznn nnmat.. 4- _ SCIt. VJ VV- iV-.J M_- .fiV . *nj_ y . subsidized fuel allocated to a bus depends on the size of the bus, number of trips per month, and distance. A Wcaiul vf dispatFchers tornhiorU e uap a te to U.,wU. upF.. o ator are hndeed p servi at Cagree terms. 5.16 In 1997, the government increased the total amount of subsidized fuel allocated for bus services, tinlcreabsig u lwu cei:ivilull tom v Lv to 3. illl gallorl. FVe rnlvr.Ulh. n IvMay 2.000J, UIe LUel subsiuy wao costing the government $2.2-2.3 million per month. The central government has, however, stated its uiwruiUo LV elllllirrL, VI ilL leasL reduUc LuIvL iulI subsiuy Ubec1Us Ule sysLtem lb eApensiVe, UdiffiUlt oL administer, and increasingly corrupt. 5.17 In terms of operating costs, the TAHAL study presents a rough estimate based on a sample of buSes. Tnh Ursul tU iricaleu LU Ulu '.he average oVpVerUI5r. Uost fuo r IaregUla UUs lb UUaUL $1.23J per hl-l, VI which 38% is the variable cost and 62% is the fixed cost. The operating costs of a midibus and minibus are estimlated aL .$ 1.1 a indU $0U.9Y per Kill, respVeLive'y - UlIt is, uLIF LUUtO U7pertLUn cost per hll is IlWer than that for a regular bus. The difference is largely due to the significantly lower variable costs for midibuses and minibuses which are more fuel efiicoient, newer, and better maintainled. The fuel subsidy is equivalent to about 11-15 % of the estimated operating costs; for regular buses the subsidy reduces the total operating cost to an estimated $1 . 1 per km. 5.18 Fares are fixed at S0.i7 per passenger; witn mhe subsidy tinis translates to an estimated iare oi about $1.9 per passenger. The tariff is not based on distance and does not represent cost of operation. The fixed tariff is applicable over a large area and results in signinicant cross-subsiaies from snort distance travelers to those traveling a longer distance. According to the TAHAL study, to cover full 27 operating costs under the current tariff (without subsidies) it is necessary to have an average of 7 passengers per 'IlUI. at a miuni.u l.lum. thew Lue suubidy, the lui4UU dU average is 6 passenger4 per 1l. D. Results of the household survey concerning transport 5.19 Although vehicle ownership is at a very high level in AMSS (43%), the result is very unequal by consumption groups, with the poor owning a vehicle in 4% of the cases, while this percentage is 85 in the case of the wealthy (table 5.1). Of these vehicles, the car has the largest share with a 41% of the sample households owning at least one car. Part of this large portion of car ownership is due to the large amounts of remittances that Salvadorans in the USA send to relatives in El Salvador. According to national statistics remittances are used first for housing acquisition and second for car purchases. By contrast, only 5% of the households own bicycles, and an insignificant 1% own a motorbike. 5.20 The poorest rely more on public transport (100%) than the wealthiest (69%), but in general, the usage of buses is very- high across all consumption groups, despite the high level of car ownership. Of the 151 households (11% of the sample) that do not use the public bus system, 54% said that the main reason for not using the bus is that they preier To use meir own vehicle. ADout 24%o iaentified poor safety/security as their main reason for not using the bus. 5.21 New and better maintained buses and improved safety and security are the key actions that would improve service for the poorest of AMSS residents who use regularly the service. The high priority accorded to these two factors holds across income groups. About 18% voted for reduction in "crowding" and a surprisinely low proDortion (16%) voted for lower tariffs. As exDected. a higher proDortion of the poorer households (20%) accorded first priority to lowering of tariffs as compared to those in the middle and high income groups. Reduction of waiting time and addition of routes each received only about 9% of the votes. Table 5.1. Vehicle ownership and use of public transport by household consumption quintiles in AMSS, 2000 J|'Charactenitc J,' r7 - l |Ql|Q1|Q3 _]| Q4;` |' Q5-~ I Tota I ;/Y'hAlmAn)e k wnin)aA I I 1 1 45 1 60 1 85 I 43 I Tvve of vehicle owned: -% owning a bicycle I 4 6 6 9 5 % owning a car 2 16 43 59 84 41 |-%owningamotorbike l 0 0 1 1 0 1 % hhlds in which at least one household member uses public transport I 100 98 1 95 85 j 69 1 89 |on aregular basisl l l l l l l Major problems of public transport (according tonon-users): l I I I I I °,'0 who ~+k: th+ the,~ .".,-f' t I T A MKTA T A ')nl iA ')A I U wuti uJ..u -eLt a. t - -l, 1. wa.I.lm ħ. &v - % who prefer to use own vehicle NA NA NA 56 51 54 Actionsthatwould improve the service: I- % who think the frst Driority is to reduce waiting time 10 11 8 8 7 9 1 % who think the first priority is to reduce crowding 13 14 | 20 | 16 | 30 | 18 | - % who think the first priority is to add routes 10 9 8 9 9 |9 | - % who think the first priority is to decrease the fare 20 18 17 18 11 17 - % who think the first priority is to improve security 22 26 26 33 36 28 -% who think the first priority is to get new buses and maintain them 23 21 24 2 37 26 Source: World Bank, 2001. 28 5.22'1 T. oorn- c or n-m-..+ u'.emotl b y b u s t o n,nrl t o fun m,arkta r o heo anllthn. ce ahnn=n in orranh 5.1. Specifically, 81% of the poor primary workers in the sample rely on the regular or micro bus, when LiL mate is 23%U in te Lfi qjum.Itx. OW. Veh.ic.l0 aV the -secon mos i.- .. p-o1-ta t -ode for vor -s, particularly for the wealthiest (75%). About 16% of the poorest households walk to work while only 3% Graph 5.1. Transport mode by household consumption quintile and by purpose of trip, AMSS, 2000 Trips to Work of Primary Worker [ Trips to Study of Primary Student l I 70% OSdhooI bus t M§6 v s 8e96 ; i~~~~~~v Inalk | I 40 % _ |g ISMlUODU9 || I 8 50% w.'vehide *Mi~~~~ObuI ~~~~~ 4O%jcrbu 20% 01 Q2 Q3 04 05 Q1 02 03 04 05 Qulntibe Qudntlog Trips to Market l l Trips Related to Health 1l 10D% 1 "0%~~~~~~~~~~ 0 um ~ ~ ~ ~ ~~' Oei vehide - uf V' ~ EMleobus40 Source: World Bank 2001. 5.23 The majority of poor children commute to school waLkcing (78%), while in the fifth quintile this pee,+,e i on.y 20. None of the poorest stuidents *^om.iute toi s^-hnl hy c~nr, while 21% of the wealthiest do so. Trips to the market and to health centers in the case of the poor are dominated by the bus,, olshr.ou,, a ncaAnsid le portion walk~ (39%,/, mid A32% respi,tivplv' while the wealthy iuse their own vehicle in most cases (65% and 66% respectively). 5.24 The poorest fifth spend more time in traveling to work and to the market as compared to the richest fifth (table 5.2). The average trip time, including waiting and walking, for primary workers in the first quintile is 52 minutes as compared to 41 minutes for those in the fifth quintile. This apparently small 8 minute difference in a one way trip goes up to 22 minutes per day and 110 minutes per week. Although more students in the first quintile walk to school, traveled distances are longer for students in the fifth quintile. This might be related to the fact that the poorest go to public schools in their neighborhoods, while the richest go to more distant private schools. 29 5.25. Fares increase progressively by quintile, probably due to the existence of different types of bus e.- vice, includinmA M.brnie ...licrbs, T-- poorest workers h.-a +to-travl to o'fl V f.~'~ U u.5I%5.fO~55llU00 r.UIUO%i0, MI Alm *Jiflov. A UVt FJJV doL VTZJz 0 lifvw A,tuT ,v I work more often than the wealthiest: while 43% of the workers in the first quintile travel 6 times per week Lt V VoL, 46°,UIU io oLf VUISte 51 Lneil 11 4UUILII%. u UVeI S ti.0t.es perweekft IwoAVk. Table 5.2. Distance, time, fares, and frequency of trips by household consumption quintiles in AMSS, 2000 | Chara6teristic -' ''-| 1[Q2 - Q3[ -J | Q Q5 Total, iDistance to destination -Minutes to work 39 42 41 37 29 38 -RI - :u . .ess.. 14 1A I 0 21 20 -1VI1UULN LU OLUUY 4I i L -Minutes to market 21 21 19 17 16 19 -Min.ut.ic tn hpelthl * nt-r 22 2 24 23 22 2 IMinutessipentonwaitingand walking time to stop (only to go to 13 I 13 H1 1 10 0 12 12 work) j j l l l Fare (only for public transport to go to work) (dollars) J 0.2 0.3 0.3 | 0.3 0.4 0.3 -Frequency of trip to work l l l | * %who do thetrip 5 times/week 19 19 42 35 30 :% wno do te trip 6 timesiweek 4 4 I 2 3 3$ * % who do the trip 7 times/week 24 19 13 12 10 15 Source: World Bank, 2001. 30 T 'JC'GAT DA 31 1. URBANIZATION AND POVERTY IN HONDURAS 1.1 Of all countries in Central America, Honduras has urbanized the fastest. In 1980 36% of its population lived in urban areas, equivalent to 1.3 million people. By 1999 more than half of the country's population lived in urban areas for a total of 3.3 million urban citizens (graph 1.1). Annual growth rates of the urban population have been consistently higher than those of the total population over the last decades (graph 1.2). Although the peak of urban population growth was in the period 1985-1990, with an average annual rate of 5%, urbanization has continued at a fast pace in the subsequent years and will continue to do so according to forecasts from the United Nations Population Division showing that by 2010 over 60% of Honduras's population will be urban. Graph 1.1 1 l Graph 1.2 Urban popuiaUon in Honduras Annual growth of urban and total populations 1980- 1999 Honduras, 1980 -1999 3*5 6.00% 2.5 ~~~~~~~~~~5.00% | ^0 2.25 | | | | | | 11 Urban population | 4.00% | | * Rate of urban 1.5 - X H |toll 30%_popuiation growmn ~~ 1.5 ~~~~total 3.OOLLE- = U i i -j_ _ 1 - * Rate of total s- o oO E 1SE 42.00% nnnidIatirn growth u 1.00% _ _ _ _ _ _ _ _ _ _ _ _ I 4 80-85 85-90 90-95 95-99 Son-urce: World Bank varinous years 1. 9 I4ndirsA isk the terpnAd nru%et oniintr, in ('Pnfral Armnrina with a GIP nvpr -anita of S70A ;n 1999, a high incidence of poverty and a high level of inequality. Although Honduras did not suffer from the civil conflic-ts that ravagpd Crpntral Amprica Aia,-, ihe IO9A80 ard aarnx, 190sn, it w.. A.e 1by them. Honduras endeavored to improve its macroeconomic indicators, to strengthen democratic in t,t,t,nnc anrd tn inorpace trancar,nru.n 1.3 As it is the case of Mlher on e;. i atin ,A-m-erica, agriculture has been declining in Hondura, decreasing from 22% of GDP in 1990 to 16% in 1999. After a period of fiscal and external crises in the f..s hal of +1..h 1990sA, overa! -cros erforarc ;.- nprove ir 199 and I1998. Bnut at t1e enA of 1998Q LU Oh -f%1 --L *.1J S -. J - - pV5SA f1T "" FxwA%SdUjJ Jv U 177k Ul 17.70 3. L ut L. Ult ~u IdA 1770 Honduras was hit by Hurricane Mitch, setting back Honduras's development gains of the last years, Ur.bUVYUUo LLUaDUvUL4U1, UIU d1VAUU, UIVUbtUt,UI OL PUpI). 32 l.... l 1.4 With the high rates of urbanization in Honduras, poverty is Urban poverty increasingly becoming an urban Honduras, 1992 -i1999 phenomenon as illustrated in Graph 1.3. In 1992 the urban poor made up 4.5 40% of the poor in the country, while 4 .,= _ in 1999 this percentage jumped to - .5r 45%. In absolute terms this means _2.5 Fe total urban poor that by 1992 there were 1.5 million 1 2 m__ ETotal poor poor in urban areas whereas in 1999 c 1.5 this number increased to 1.9 million. =I Urban poverty growth made 97% of rE 0.A total poverty growth in Honduras in 1992 1999 that period. 1992 1999 Source: World Bank 2000 (c) and World Bank, vartious years. 1.5 Estimations indicate that Tegucigalpa has over 1 million inhabitants and that in the period 1980- 1995 it grew at an extraordinary average annual rate of 12%. Originally there were two cities, separated by a river, ComayagUela and Tegucigalpa. They were united under a single government, called Central District, in 1982. The city's growth is characterized by extensive rather than intensive land use, with some neighborhoods spreading to areas of very difficult access. The city is prone to natural disasters, particularly floods, such as the one following Hurricane Mitch in 1998, which left 180 people dead, 860 disappeared, 250,000 affected, 3,300 houses partially destroyed, and 14 of the 20 bridges that connect the city, destroyed. The irregularity of its topography, and the fact that growth has taken place rapidly and informally, has made many of Tegucigalpa's settlements, particularly the poorest ones, highly vulnerable to environmental degradation and natural disasters. 1.6 It was not possible to obtain the official country's poverty figure for Tegucigalpa. Descriptive statistics of the welfare measure used for this study, total consumption per capita per year, are presented below: Total consumption per capita per vear(dollars) Minimnum $ 120 Maximum $7,290 Mean $1,711 Population under different levels of consumption % under 1 dollar /capita/day 4.4% % under 2 dollar/capita/day 23.5% % under 3 dollar/capita/day 40.8% 1.7 On average, Tegucigalpans live on $4.7 per capita per day, with the poorest counting only on 33 cents ner canita per day and the wealthiest consuming $20 per capita ner day. About 40% of the population live on $3 per capita per day. 33 2. HOUSEHOLD AND NEIGHIBORHOOD CHARACTERISTICS IN TEGUCIGALPA 2.1 This chapter reviews the conditions in which Tegucigalpan households live and how they perceive their communities. The survey data show that poor households are large, growing fast, and they face several problems, among them, low in-city mobility, very low levels of education, and a high degree ofjob insecurity. The differences between the first and fifth quintiles in all these aspects are considerable. The worst problems in poor neighborhoods are perceived to be deficient water provision, violence, and bad roads. A. Household migration, growth, and mobility 2.2 Overall, migration to Tegucigalpa does not appear as a particular occurrence among the poor. In fact, around 13% of all households reported household formation outside of Tegucigalpa and this percentage is more or less constant across quintiles (table 2.1). In Honduras there was no civil conflict to accelerate migration to the cities. Therefore, the main reason for this nevertheless high rate of migration, must be economic. For the poor, the most important reason in choosing a neighborhood is "land price", which in this context must be understood more as land availability (64%), followed by "friends" (24%). The poor are very constrained economically, therefore the availability of land to purchase at a reasonable price or to invade is the driving location factor. And since the poor face substantial problems at neighborhood level, it is important to have friends or relatives nearby. Table 2.1. Household characteristics by household consumption quintiles in Tegucigalpa, 2000 | Characteristic . I Ql Q' Q2 Total l IPlace of hhld formation (%) I I II I - %Tegucigalpa 87 86- 88 89 88 88 - % Out of Tegucigalpa 13 14 12 11 14 13 I Reasons for choosing neighborhood (°/K): l l l - % choosing based on location ot riends 24 22 15 17 12 1 -% choosing based on house location 6 I 1 16 22 33 17 - % choosing ubaeu uu iund price 64 62 6, 57 50 59 l Un.u.ousehntA e(nlmbr ofm.er.n.ern,hpnl A 7 l s 5 1; a l5 Hou-sehold size 2rowth (%/6) | Birthhlds that increased in last year |21 19 10 14 16 14 | * Birth l84 |80 |64 |78 |63 |717 l * Other people joining 16 20 36 22 37 23 - % hhlds that decreased in last year 4 5 6 5 8 6 -% hhlds with firm intention to leave in next year 6 6 9 7 12 8 Source: World Bank, 2001. 2.3 Poor households in Tegucigalpa are large and growing fast. On the one hand, household size is 7 in the first quintile while it is only 4 in the fifth. On the other hand, natural growth is high among tne poor: 21% of the first quintile households reported growth in the past year, with an 84% of these cases explained by birth of a child. In the case of the wealthy, the situation is very different: only 6% of the fifth quintile households reported growth and of these, 63% are due to birth. This means that the birth rate 34 among the poorest is 18%, while among the wealthiest it is only 4%. The poor then are growing more than 4 times faster than the wealthy and this has implications for physical and social planning. 2.4 The percentage of households reporting that other members joined them in the last year is rather high, particularly in quintiles 3, 4, and 5. This is an interesting occurrence not only in Tegucigalpa but in many large cities in Latin America that face difficult economic conditions. Either entire households move back with the parents of the household head, or parents ioin the households of their grown up children. This is an altemative way of social protection. 2.5 In the short run the poor are less mobile within the city than the wealthy. Only 6% of the poorest households reported firm intentions to move in the subsequent year, in spite of a myriad of problems in their neighborhoods. B. Edo.o.W-f-,zn and occupat.on Graph 2.1. 1 2.6 T.he poor i. Tegucigalpa are ftapped by teir Education levels of household very low levels of education. A great majority of by household consumption poor household heads (75%) declared having no - Tegucigalpa, education or only primary studies, either complete or .a%JUII&UI (gaph~.,aI I2 .1) ,l.y 22% or +lupu fst C' 'Tlniaveu quintile household heads have some secondary Source World Bank, 2001.Ieducatio conbrmst, 70,' MA the weatis 2. % sMewtfhnpoarol y completh w ( ousehold heads have university studies. Regressions 20pr g o sPrimaryocomplete yeddoothavsc scuri l, prtection(66%). Althouh a 7 of th ipoult o% n o.fe work prte In contramplet factors explaining consumption aggregate levels. .,I n, i 4, A' Q;c a 1n+A Tn.1 4cact.,a.c .,..Jnn~(AL~Tc .aad.,O.-i -+.. -u-Inti-le l Source: World Bank, 2001. 2.7 Most of the poor household heads work (77%), but a significant percentage stay at home to take wore in their - nilies iho d (1nrede v ble ry few w outside d the ity There i % not m u rio percentage of those employed do not have social security protection (66%). Although a 71% of the poor (tea ployeee. Inly neighrhoods to he situationis dif f1serent: violencei themt e p ortan p+robloyem do not offer work protectireatimo aras (0)ng the wealthy, the rate of employees (66%) is roughly by genua +r rath tha by quinteA some diff eree.s are found (graph 2.2.). F violenc - aers +as a higher rate of managerial positions (9% versus 3%), a higher rate of ul time employment (91% versus 86°sXo), and a highr'L percenltage wilIA aWeconPd1%KJV JL (16%J/ versus 4° -S). X- A considerablV poL.ionI Uf the, poor work in their neighborhoods (16%) and very few work outside the city (3%). There is not much variaition C. Neighborhood characteristics 2.8 The most imnportant problem in poor neighborhoods -is water provis-ion (25% of the poor respondents rated this as their most important problem), followed by violence (19%) and bad roads (9%) (table 2.3). In wealthy neighborhoods the situation is different: violence is the most important problem (23%) followed by lack of recreation areas (IO%). and deficient transport (9%). When the data is analyzed by gender rather than by quintiles, some differences are found (graph 2.2.). First, violence appears as a worse problem for men, with 28% respondents under t-his category, versus 19% of women. Second, water is worse of a problem for women, with 15% versus 12% among men. And finally transport is also 35 perceived as a worse problem by women, with 8% of the women interviewed reporting this as the worst problem, versus 4% of men. Table 2.2. Employment characteristics by household consumption quintiles in Tegucigalpa, 2000 inaracrensuc. !,"",' l-;-Q1.1" '' O Main occupation of hhld head (%) - 70 WUIhos maUL U"UpaL1UU nis UUU5rUVaULU 17 t 18 10 8 6 12 - % whose main occupation is to study 0 0.4 0 1.3 0 0.3 - 0/, o mn n npeupnatc.n ;s tn wnrl '7'7 '72 '70 80 86. '70 - % who are retired 1 - % who are unemDloved I 4j 3 3 3 0 I 3 -% doing nothing |2 |12 12 1 10 | 1 Type of employment (all employed members) (%) : - %who are managers n 3 3 16 I9 9 (6 -% who are employees 71 75 71 74 66 71 - % who are self-employed 25 22 21 18 25 22 I-o wno work witn no remuneuton e a io I I O i ICon.diti.ons of employm.ent(alllemployed members): I - % working full time 86 90 91 91 91 89 - %/ affliated to SS 'AA 50 59o 62 64 AA 53 1 | -%withsecondaryjob 4 6 7 14 16 9 I Job location (all employed members): I . I I I - %working in house 8 10 9 6 7 8 % working in neighborhood 8 |5 5 13 6 5 - % working in city 82| 8 82 8 83 83 --%working indifferentcity 3 1 4 5 3 5 4 Source: World Bank, 2001. Graph 2.2. Most important problems in neighborhood by respondent's gender, Tegucigalpa, 2000 ." 25% 20% I C- 1E,^-,0 |~~~~~~~~~~m Men 11 E 10% | women| ae 5% -xr~~( Source: World Bank, 2001. 36 2.9 Poor neighborhoods appear to be very consolidated but with relatively low community participation. Poor households declared living in their present neighborhoods 17 years on average, quite a long time. But when it comes to participation in neighborhood organizations the percentages are low: only 19% participate in "other church", 9% in "the catholic church", 8% in "community improvement committees" and 3% in "sports and cultural groups". Low participation might be linked to low effectiveness of community organizations. Only 24% of the frst quintile households declared that community improvement committees have substantially helped their neighborhoods. Table 2.3. Neighborhood characteristics by household consumption quintiles in Tegucigalpa, 2000 I-Charicteristic,- 11 1 02- .1 03-1-04 . 05 -1 -To tal I Reported most important problem (%) %/ rpnnrtina violence as most imnnrtqnt problem 19 22 22 22 23 1 - % reporting water provision as most important problem 25 17 12 9 6 14 o-%reporting bad roads as most important problem 9 9 8 6 3 7 - % reporting deficient transport as most important problem 3 6 8 9 9 7 - % reporting lack of recreation areas as most important problem I 4 6 9 10 6 -% reporting solid waste collection as most important problem 3 4 1 0 8 5 6 n Time livMg Mineighborhood (years) 17 17 15 15 13 15 I rgdUMMIzainS. In W-hAIchhovseZhold pUMIPULIOn IS requent k-/o)I I I I I I I |-%whoparticipate frequently in Catholic church activities 11 12 8 |22 17 16 =%whopa;. - cpa-.e Mothech-uch-activities 10 1 7 1 A a 13 - % who participate in community improvement committees 9 S 6 6 6 6 % who narticipate in sports or cultural grouns 3 2 3 1 2 2 Organizations that have helped significantly in solving community l l l |problems (%/):l l l l | | | - %who think the Catholic church has helped significantly 14 12 13 1 7 1 1 15I l -%who think other churches have helped significantly 29 12 12 16 13 17 - -%who think oomm. Improvt.Committehes have helped s igfa ificantly 24 12 6 107 -%whothinik sports or cuiturai groups have heiped significantuy 13 12 j3 1 1 2 j 2 So-urc: Vv'orld Ba^LF, 2VV:. 37 3. LAND AND HOUSING 3.1 In contrast to Panarna City, where the canal zone provides for expansion areas, or AMSS where there is an active real estate market, in Tegucigalpa access to serviced land and housing has been severely limited for the urban poor. Constraints to land and housing access are due to: (i) very limited areas of developable land for expansion that have acceptable topography and feasibility of urban services; (ii) the small scale of operations of formal and informal land developers and NGOs; (iii) limited long-term mortgage financing; (iv) inefficient and out of date property registry which produces conflicting property rights; and (v) weak -municipal planning and limited coordination between the local and central governments. This chapter explores these issues through four sections: the first describes the institutional setting, the second looks at the structure of land and housing supply, the third deals with housing finance, and the last one summarizes the results of the household survey. A= InsMtttional mettin9 3=2 Access to land and housing hy Tegucigalpa's poor is verv difficult- This is in nart due to the deficient institutional setting that involves a wide range of national and, local government agencies, public utility cnmnnniem the hankino sector; develoners and con1trtnmr sind NWC-s ll of whinh nnerate with little coordination and planning. 3.3 Design and enforcement of housing policy in Honduras has been deficient because the agency in charo,rp the hnmuinAg dinarniPnt in the. Piblih Wnrks, Tr nrnnrt and Hohusing Sretnriat (5OPTRAVfl lacks technical capacity, an operating structure, and does not coordinate its activities with municipalities and NW&Os. With the tp--hni-al and finanpial suppornt of r-Vrmau'sf a housaina nrniprt init has hben created but has not become operational yet. The end result is that there is not an official housing policy for the country. 2. A spit of i ,l.. ;es, TY,..c-4a1no's Cen.tral Dis.;c,t f(1. m- -1ici .A is .i.T l F.7tW 2. fhIllAV lf*~l1,*ttS1~Q*C lu Sfl fAfl 15EbIlftf- AflAb~1 potentially an influential actor in the city's land markets. Its responsibilities include: land regulation, .A .nnA A ronA ;o, A.n oninn+ n..k1;, n-n,af G a.A -nroa+re --.n n n c,a.n.* houses, street operation, maintenance and construction, solid waste collection, and drainage. The district h- very 1 [.+-A s+.Wn reso --.- a.-A a o ..ra...z Aaa:t ^ _i+"e- wez.es -f the Adi.- ;cti 11003 VY.J 111W" 040.4 0111 W%OWJI%-, 01-4 LWJY fl110111 .aJlly CUJlf T.C01%V SJI UL&. 411054145. 1 the lack of accurate information in terms of land (box 3.1), services, and particularly poverty. A social dp."A,r, -vis crze rece.+-A b u l aks............... i , eoue -to-sss p-e.- leel &.-- --Avice UV,J0 LUI 4L WO 414111 1444141 UJ4L4. 1014110 LUUIXUUI11 14.0VJ4UW 140 ELi G0001400 FWV % 145. 14V141 UAL%&. 0141 V1141 deficits. 3.5 Unlike El Salvador where no vropertv tax exists, in Honduras it does and its management is decer,trmized.Cu-rent prpe.- '2 Cs 3.5 Te I001 AIof -ropr-;~ --ess:.L-Ler.t :n ---ba.z-es Tn spite ofC U~l.~U41JLQ. '..,UI11 ,UL jJlUVIL)F 4. LA ID J .-IV jJ~L I ,UVV UL pi UFVI1 .3 CL5OD1ULIL 11.1 UJUI CUGhGAM0. IU OpILV, V the very low property assessments and consequently low property taxes, half of the property owners are in s represent 30% of Adis..ct's ir,or, mecondrost u.porar.t source of ar-rI.rUpalILyLUS 1VPIVbVL .1JV/O 01 LUV, Uialh.'LLL 111t.4AUV U~U111 LuVDVJI IVLujluI L .J revenues after the industry and commerce tax. It is estimated that income derived from the property tax could be uiiazused four fold if iformUation fLom, registered proJperties would be up to date. In addition to the property tax, the district is entitled to charge betterment taxes to finance street paving, storm-drains and sewCragU improvemenl projects in low income --ut foral- commuLities, at Ulheir rquest. Trhe betterment system has been more reactive to requests than pro-active in initiating projects. '° At the time of the survey the exchange rate was 1 dollar=15.1 lempiras 38 I Box 3.1. Tegucigalpa's precarious cadastre 1 The district's cadastre unit lacks the minimum resources to carry out its work, particularly staff, budget and information technology. The city's cadastre is based on a 1978 aerial photograph prepared by US consultants. No updates have been made and the only hope to improve the basic graphic data is through the work of the US Geological Survey (USGS) in identification of risk areas in the city. The cadastre has information of only 135,000 plots out of a total estimated of 300,000, and of these only 60% have updated information. Assessments for registered plots are updated every nve years and are negotiated with property owners and business associations. For non-registered plots, valuation is based on data provided by the property owner. Most properties 'L -1~ ~~~~~~~~~~~~~~~~~~~ L - - .m ub- . I ULIvn tend Lu ub L-ry uiUdeiAviued. In dUUi.UU., uIUMw is LIUu nauon CUUwMfl n1 u disUrni cadastre unit and the national registry under the Supreme Justice Court. The district does not have a good record of municipally owned land and this problem worsens eve-y day sneiw .vagiolnO t-e p-lace, pat;.cu-a.!y ain ,id" lands (lad,s - ae n.. y , are communal as a remnant of an old colonial system). Due to several complex loopholes, multiple registration of "eiido" lands is possible. generating controversial legal battles and the loss, for the district, of these land assets. [ Source: Author's compilation, 2001. J 3.6 Land remulation iq practicalvy inexistent in Tegucigalpa. Land use plans have heen nrepnrard snc the mid 1970s but they lack a legal basis to allow strict enforcement. As a result, zoning per se does not eyistdsnd rhancresin land iiue resilt nnlv from neighborhood protestsw.hen a particular use is conside-ed a nuisance. B. Pro-ision of land and housing 3.7 Part nf thp hnicino nrrwhlpm ; that the nqaCpnt h ;qn is olmrnt im qq;h,1. t o00AOO ven +iA _.~ ~ ~ ~ ~~~~~~~~F .. -.- .a0 rbv* . ._uV[t =V^z _. _ 2__ VVV MVVX VV&VV6T a there is not a centralized and reliable housing information system. The annual formal housing production in Tegucigalpa is estimated at about 3,000 u-its. The quanAtitative housig deficit in Tegucigalpa is difficult to assess, given the current status of information, but the Honduran Chamber of the Building Indum..'--;.cosidrs it to h. 7n, n *n units natonid.,,A Yowever, z A4, ------ A 1- YT'1D _h ad- over half of the existing stock lacks either property tenure or at least one of the basic services, making the Mstsw moks1t ow7ss 3.8 Te mostIA L U1J1.fl.LoU.L UlUall lovv Ll1inco1m 11UUsI1B U1 alU L atL natLIonl IVVha h1fi c ll IU UllULies in legalizing land tenure in existing settlements where rehabilitation is the main purpose, and in ensuring uasic svice coveragev iL nuw udVVe1Upu1VrInL. I IIc ProigraIi for %.AJLIpfcIIdll1i-VV Improvement oi urvan Settlements (PRIMHUR) is managed by SOPTRAVI and was developed with German support. The programuL targets tulose witUh salaries VI oun half to thuree tiIes thie basic food basket, is active in 4 cities and supports some 2,000 families per year. The arrears are low, compared to other publicly-supported programss. i i Tegucigalpa, rruivmui nhas oueen active in some Yu out of me i50 imormal settlements where households contribute with savings, materials and labor to their community's improvement. But difficulties in iegalizing land tenure and tle scarcity of potable water have siowed down the program. in fact, right after Mitch, PRLMIHUR could not build some planned 2,500 units mainly due to these constraints. 3.9 A municipal program to legalize land tenure (PROLOTE) in the poorest neighborhoods of Tegucigalpa is not sustainable. Although the program was able to process some 4,000 plots, housing 39 25,000 persons, at a low L0.70/m2, it was highly subsidized, and arrears were so high that legal battles escalUaLu, Ui.lu,I goVe,-u-,,ent LU iIlwIve1Ir, caniitung Ule uutINUuIMg UdUL Vy Udcree. 3.10 T1e lowest llimarket segmeni offered by form-al developers requires at least uiree minimitum salaries, leaving the poorest out of this market. There are several dozen formal developers who buy land, urbanize it, aind build housing UnitS, with projects ranging from under a hundred to the iargesi wnich produces some 2,000 units per year. The bulk of this housing production is financed through FOlNAPROVI (see below) and RAP. The developers' main constraints io cost reductions are: (i) the cost and availability of land and water; (ii) very lengthy procedures (that can take over a year) for sub-division permits, involving the District, thne waier and electricity utiiities and the Ministry oI Environment; and (iii) lack of long-term financing. 3.11 Housing NGOs in Tegucigalpa have a very limited supply of shelter for the poorest. In fact, there are a few housing NGOs with active programs in Tegucigaipa, many of which started in the late 1980s when USAID funded low interest credit lines for new construction and improvements. After hurricane Mitch; these NGOs built and delivered some 5,000 homes withi donated funds, but without sustainable financing mechanisms, some have closed shop and left a legacy of paternalism and unsustainable results. 3.12 Unlike in AMSS, in Tegucigalpa there is no organized informal land market. There are three types of informal land developers in Tegucigalpa: (i) individual households or a small number of them that settle in public lands ("ejidos") or rights of way; (ii) organized invasions of hundreds of households that can be led by professional organizers; and (iii) well known "developers" who take advantage of the outdated land registry, register duplicate titles or usurp public lands and immediately resell them several times through shell companies to avoid the legal system catching up. Given the scarcity of developable land in Tegucigalpa, these are very profitable initiatives. C. Housing finance 3.13 The Social Housing Fund (FOSOVI), created in 1992 only manages, in conjunction with other agencies, low income housing programs, with limited impact. Along with SOPTRAVI, it manages PRIMHUR, and along with the District, PROLOTE, but in spite of the continuous support of the German cooperation, these programs have had a limited impact and FOSOVI's role has been decreasing steadily. 3.14 Although the Private Contribution System (RAP) generates a considerable L200 million per year, it does not favor the poorest of Tegucigalpans. It was created in 1992 as an institution in charge of channelling funds into the housing sector. RAP obtains its resources from monthly contributions by workers (1.5% of salary), matched by those of their employers. Each company having 10 or more employees has to contribute to the system. RAP's board of directors has representation from the government, the employers and the employees. RAP channels the funds through several financial institutions, benefiting indirectly, families, with loans for land purchases, housing acquisition, housing improvements and refinancing of mortgages. Although all employees must contribute by law, the poorest, who cannot access the formal housing market, cannot access RAP's funds either. RAP lends also to developers, without intermediaries, for housing projects. From RAP's perspective, the main issue in Tegucigalpa is the lack of developable land and water. 3 .15 The National Fund for Production and Housine (FONAPROVT) does not reach the poorest either- It was created in 1997 to channel funds from multilateral and bilateral agencies, and from the national government- to the housing sector= A-, RAP, FONAPROVI lends directly to develoners and indirectly to families, through financial institutions. Even though FONAPROVI lends a considerable L500 million per yeanr thk is still not enonnh to mept th.e PYistincg demanti Al.thnoug.h WNAPROVT is nalo onpn for NC.Ck 40 these cannot participate effectively in the system as they do not meet FONAPROVI's conservative cUonLdi1t1i, ptiUILUlarly reUgaUdiIr,g gUUlUlILe. D. Results of the household survey concerning land and housing 3.16 Even though exclusive occupation is very high in Tegucigalpa as a whole (97%), some 8% of the poorest, or the equivailnt o0 3,200 famuiies live under snared occupation of a iousing unit (table 3.1). Many of these families live in rental rooms that do not meet minimum health standards. Monthly rents osciilate between Lou and LI'0u. Eacn room is inhabited by an entire farnily of 5 people. After hurricane Mitch, with the destruction of many housing units, and the limited supply of new housing, this tenure option has become more important, making tne services of the Administrative Department of RenTing (DAI), in high demand. 3.17 Most of the poor declared owning their properties in full (73%) , but this result has to be taken cautiously as interviewees tend to declare full ownership, even when they are really occupying a lot illegally, because they fear government action. A very low 4% of the households in the first quintile report being informal, a clearly understated figure. In fact, when reviewing the documentation for those who claimed being property owners, only 53% of the first quintile households have registered title, meaning that 47% have weak or no documentation. This is a better measure of the degree of informality. Map 3.1. Tegucigalpa Mapa de Colonlas' , TEGUCIGALPA M.D.G. Source: PADCO, 1998. 3.18 There is little information about informal neighborhoods in Tegucigalpa. The social development unit in the municipality does not have information on poverty levels and service deficits. While an IDB 41 report cites that over 60% of the population in Tegucigalpa live in marginal or informal neighborhoods, an internal document prepared by the Honduran firm ESA Consultores estimates that percentage to be 30. Since there is no appropriate cadaster and no systematic studies on the matter, all numbers remain estimations. Besides, there is the, question of what is understood by "informality". Nevertheless, our household survey is more in line with the more conservative: estimation, since 18% of all households appear to have informal property tenure". The map 3.1 shows the approximate location of informal neighborhoods in Tegucigalpa, according to a study carried out by PADCO for the 1DB. 3.19 When asked about the reason for not having a title the majority of the respondents in quintiles I and 2 (the only quintiles where this is really significant) report informal or illegal tenure. Only few households in these groups report that the procedure is time consuming and costly, probably meaning that they have not attempted to legalize their situation. When there is a title, among the poor, it is evenly registered to the male and female household heads (43% and 42% respectively). It is surprising to see the low percentage of titles registered under the couple: only 4%, compared to the equivalent figure in the fifth quintile: 16%. This happens despite the fact that 70% of all household heads in the first quintile declared being married or living with a companion. Table 3.1. Tenure status by household consumption quintiles in Tegucigalpa, 2000 |Chaatrstic r l - otal| I / l IA I n7I nnI ___ n I Tpniirp (I 7" 1 I7, 1 1 77 1 3 1 71 - % who rent 18 17 25 26 21 21 - % -who have a leasehold 2 5 7 8 4 5 -% who own with mortgage 2 12 17 110 115 17 -% who own and have fully paid 173 69 60 54 59 63 I | %whoare informal | 4 1 6 1 1 I I 0 1 3 l Documents (only for property owners) - % with registered title 53 1 70 86 I'92 1 92 1 78 - % wiin unregisieredu tie 6 I 5 3 . - % with leasehold doc. 2 2 1 1 1 1 =U °i w .U rper.ty rece;pQ5 5 2 2 0 3 | -with service receipts |4 |2 |0 |0 |0 |2 l 1-%with nn docimentation 119 1 L1 ' 1 17 1 I Reason for not having document (only for those who have weak - - - - I | documentation or none) l I l l I l l |% declaring that procedure is time consuming and costly | 12 1 18 NA |NA |NA |14 | declaring informal/illegal tenure 83 1 73 1 NA NA NA 51 l It there is title, to whom is it registered (ol) - -%hhlds having the title registered under couple 5 7 9 1 13 4 1 - -% bhds ha-vinigthetitle registered under femallehead ofbhid |t 41'4t 3i 11 114 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ ~~ ~~~ ~~~ ~ I A I) A I -_ - % hhlds having the title registered under male head of hhld | 45 | 42 43 41 41 | 42 Source: World Bank, 2001. " This figure comes from: 22% (% with weak documentation in all quintiles) * 70 (percentage of property owners in general) + 3% (informal) = 18%. Among the poor, the equivalent calculation yields: 40%. 42 3.20. The houses of the poorest are located on streets that are either not asphalted (87%) or do not have a direct vehicular access (35%), making access to poor neighborhoods difficult (table 3.2). in fact, this finding confirms the perceptions of poor households who declared "bad roads" their third most important problem (see previous chapter). Tne situation of the weaithy, aithough better in terms of the quality of the streets (only 5% of the houses are located on non- asphalted streets) is equally worrisome in terms of vehicular access (29% with no vehicular access). This, in turn, might be related to deficient transportation systems, which was selected as the third most important problem for the wealthy. 3.21 Although the majority of the poor's houses are made of permanent materials (96%), their crowding level is very high with, on average, 4 persons sleeping in the same bedroom. In contrast, there is only 1 person per bedroom among fifth quintile households. In addition, a significant portion of the poor (80%) have to shower in the backyard or outside the property with little or no privacy. Similarly, 8% of the poor share the shower and bathroom with neighbors. Hygiene and promiscuity problems result from these crowded and limited housing conditions. 3.22 The poor pay a fifth of what the wealthy pay in rent, a considerable portion, given that aggregate consumption differentials are in the order of 1:7.6. To understand the reason for such a small differential in rent, we can look at the equivalent data in AMSS. While in Tegucigalpa rents go from $34 to $156, in AMSS they go from $33 to $287. Therefore, the small differential in rents between the poorest and the wealthiest in Tegucigalpa is explained by the relatively low rents paid by the well to do. Table 3.2. Housing characteristics and monthly payment by household consumption quintiles in Tegucigalpa, 2000 |Characteristic -Q, |Q2- -Q3- [4 |Q5 ,Totali. Type of street (%/0) I04 hnioue lncated on strept with nn dirert vphit-11A2r ac A e) 35 3 I4 -% houses located in non asphalted streets 87 65 3 6 14 5 4 1 I -%Housewithwallsmadeofnon-permanentmaterials 4 4 1 1 0 2 Number ofbedrooms | 1.9 2.4 2.7 3 3.3 2.7 I Number of persons/bedroom 4 4 . 3 I I 2 I nhavingto snowerinbackyard or outsidethe property 80 DU 50 1i u JiI l °,- s-in we1 sh we " th negh ors I/ qshnrina hathrmin with neiphhorq 7" 'A 4 1 ! v au 0 0 4 I Paymetforo-p&erty(nl yrenters) l Monthly payment in lempiras 517 884 1,393 1,998 2,363 1,592 -% paying in non monetary formn 1 9 22 3 5 2 9 Source: World Bank, 2001. 3.23 Although most poor households do not divide their lots, some 7% do and in all cases the reason is to give it to a family member (100%). In other quintiles the rate of subdivision is lower but is nevertheless considerable. In total, 5% of all households declared subdividing their lots in the last five years (table 3.3), which means that some 2,000 properties are subdivided per year. Given the inefficiency of the cadastre, backlogs are growing exponentially. 43 'A el - . 1 ĥ 3.24 Self I consLruWtio is a very impOrFant aittrniative ior noustng acquisition aniong the poor, wi-ch 74% reporting being in this situation versus only 15% among the wealthy. It takes, on average, seven years for the poor to complete tneir houses. Once complete, few invest in housing improvement: only 19% of the poor declared improving their properties in the last five years when this percentage was 41 among tne wealitiest. Tnose wno made improvements aismDutea mem almost evenly m mcreasmg me floor area, and making internal and external improvements. The costs of the house improvements over a 5 year period go from L19,816 in the first quintile to L72,157 in the last quintile, that is in a ratio 1:4, again not so much of a difference, at least when comparing to the aggregate consumption differentials. This means that although few poor households improved their properties, those who did, spent considerable amounts of money. 3.25 The sources of financing for house improvements among the poor are: first, savings (62%), a distant but remarkable second source is loans from private banks (i 1%) and third comes help from family and friends (6%). Loans from public institutions only reach 1% of the poorest households. A greater percentage of the wealthy get loans from private banks (24%) and from public institutions (11%). Table 3.3. Property subdivision and improvements by household consumption quintiles in Tegucigalpa, 2000 |-bcit; tI˘| Hti| !'; -| 93",' | 4 ;|. Q5 |T° I Characteristic, 1,'Qi~ IQ2 64Ttal I0/, h.hids havng ubdi enMA thp;r tnt iin thp 1 7 1 f. I A I i; I I ias;tfiveyears | r | Reasons for subdividing (%/): l l | l I I l -%subdividing to give toafamily member l 100 l 55 | 50 | 67 I 50 70 | |Conditions of property when moved:l llllll -% with no constr. or partial constr. 74 54 37 25 15 42 -Years to finish the construction 7 7 8 4 7 7 |Main house improvement in last flve years: | ||llll I- °, I:^ no 81 I65. i 'KA co 5 65 I v IU n. la n.v'm 4~~i~ % who increased the floor area 4 12 6 7 6 7 - G whn did internal imnrnvement- R 12 14 13 12 12 | -whodideernalimprovements 3 6 | 1 13 16 10 Amount spent on house l l l l l limnprovements in lastfiveyears(lempiras) 19,816 I 28,646 24,383 35,649 72,157 39,513 | Source of financing for j l I | unprovements(%) l l l l - % hhlds using savings 62 63 6063 |3 -, %tlaug .!.U.1 .Ifl. pUU:II.2.u...j..iU .l. I 10 :, 10 1 - % hhlds using loans from private bank 11 17 21 23 24 20 =/ % I.4. 1-0 el f-o f6-'iVyfr.eAC 6, 5q A 5 I A I- % hhlds usinglons from employer ' I I I I 1 2 l Sourc: World Bank,2001. 44 4. BASIC SERVICES 4.1 Complete and consistent information on provision of urban services in Tegucigalpa is hard to come by, but all indications point toward serious deficits and a continued, growing gap in coverage and in quality of water, sanitation, and solid waste collection. Poor neighborhoods are frequently trapped in a vicious circle whereby they need legal land title to qualify for services, but where service installation is a requirement to obtain a title. Even when households get services, the deficiencies mean that they must still spend considerable time and money making up the differences. This chapter will cover each of these services, discussing their institutional setting, coverage, service quality, and pricing. A. Water and sanitation 4.2 The institutional setting for water and sanitation in Honduras is characterized by uncertainty. Currently fragmented into a series of agencies, all of which appear to be in transition, the sector is going through another of its periodic reorganizations. The National Water and Sanitation Service (SANAA) was created in the 1960s to operate Honduras' water and sanitation systems on a national basis. Not all municipalities supported the move to centralize, however, and the transfer of assets to SANAA left some notorious gaps. 4.3 SANAA has introduced a policy to return aqueducts to local govemments which demonstrate their management capability. So far, SANAA continues to own and to manage Tegucigalpa's water and sewer systems, but its activities have been hamstrung by its growing institutional uncertainty and its reduced limited investrnent budget for urban water and sanitation. Agreements reached with the IDB call for SANAA to turn over the water and sewer systems to the municipality within a flexible time frame. In addition, IDB is financing a series of studies leading to a possible future privatization of the capital city's water and sanitation system. 4.4 The institutional situation inspires little optimism. If the municipality is to take over water and sanitation operations from SANAA it will need considerable support to keep the existing svstems going let alone improve the deficiencies it will inherit, or attempt to expand services to meet new demand. With a privatized system in the future, it is unclear who would be responsible for inforinal urban neighborhoods, which are estimated to include a large portion of Tegucigalpa's households. 4.5 A large percentage of Tegucigalpa's poorest households (38%) do not have access to SANAA's ninpd water Qprvinem (tahle 4 1). This ctnndr in shnmr conntrat with the PmzuivalPnt npeprntae, ame.%n the wealthy (2%). In fact, even the present coverage of 62% of the poorest households might be misleading sinre it incluhde thp. 130,000 persons (eq.muivalePnt to 25,000 families or half a quin.tile) rnder SANAA's special program for new settlements (UEBD) who are served by pipe networks connected to holding tan1e wuhirh srp rpnhpnichi-A hu RANA A satpr tr,uplrl tn nr.rxiAp {nPr n pmnafst;nn nn, hn.r ; -r ~---*-- - ; p. gV . j v.-. * -eCs .OId v f s.v fl-Ucee Ve-f four days, or two and one half hours/week (box 4.1). Private operators are reported as a good option for t. - vh 20% /V of households in. LU.e -Vn ui..le +h.- .-A and 9% +ih A the second VT Uttil provided through public and private trucks accounts for 19% of the poorest households. Use of bottled wa.ter is quI:te i.port.t in agVucV.igla as aIwhIoV, butoL %IIJ L/U VIL ofFh porI use ViFL oUJIo as compIarIeUd to 70% of the wealthy. The standpipe is not much of an option for the poor, with only 3% of households reporting UsIng IL. IXeLVI .o AJnne 3V fo acoLmparUII Vor ofJacc UeUsi,dLIator li rL 1UeriCa n cities. 4.6 The poor have to wait longer to get a connection to the public aqueduct, and have to incur in extra costs. Over 20%-/ of poor households -epofred having to wait mllore thanl J years to get -their connectiOna, a significant amount of time. This percentage decreases smoothly in the upper quintiles. The poor have to 45 rely on communal action to obtain their connections (58%), while some rely on private developers (15%) -u-d persoiial action (13 ). %ill uil uuicr liuhlU, UuI weIl-ly re'y aiirosi completely on devetopers kazJ-/o). This explains the differences in installation payment: the poor pay for this service through special prograins aUfir s-L1ternent are ini place, while Lie wealthy pay turougn tie price of Unl property, as water and other services are included in the housing bundle. Table 4.1. Water services by household consumption quintiles in Tegucigalpa, 2000 Charcteristic 'I Q1-'- -Q3 .- lQ4 { Q5 ITot Access to": - % hhlds with access to SANAA 62 81, 95 98 98 87 - % hhlds with access to private operator 20 I 9 3 I 2 7 - %'nlus using puVulciprivadLv wok i9, i0 2 O O 0 - % hhds using bottles 12 29 49 J63 70 V44 =/_ W1 % K nn A n I I who had to wait more than 5 vrs to get the service -22 '--20 ' I 'I 1 7 114 l I How wasthe service acquired (SANAA only): I I l l l l I - % hhlds acquiring service through personal action 13 14 7 7 4 8 - % hhlds acquiring service through communal action 58 34 15 6 1 19 -% hhlds acquiring service through goverment action 4 6 4 4 2 5 -%hhlds acquiring service through developer 15 134 53 1 5 How much was paid for installation (SANAA only) (lempiras) 363! 313 98 131 26 165 Hours of continuous water service (SANAA only): I l l l l l l - 0/, .h les than, 2 hui,r.- 55 37 l 32 l l l I -%withlessthan24hours |82 71 83 80 |73 81 %whodrinkfromwater (SANAAonly)withoutboiling(%/6): ( 32 23 | 11 2 3 12 | m3ofconsumptionpermonthperhhld(onlyforSANAA)'3: 35 | 35, 43 53 55 47 Monthly payment (lempiras) 8 l11 I- SANAA |40 50 63 88 i 72 1 l- Prvate operator l l l - Other sources I l | Deduced average tariff (only for SANAA) in lempiras14 | 2.1 | 1.9 | 2.3 | 1.6 | 2.4 | 2 * llv fior hnusiehn1od who showeA the receint Source: World Bank, 2001. 12 Households might have more than one source of water, therefore the sum of percentage access might be greater than 100. 13 Consumption data for other sources turned out to be unreliable (too wide a variation and many missing values). This is understandable since people keep better track of how much they pay than how much they consume. Without receipts, it is difficult to estimate consumption. I4Ideally this analysis should discriminate by fixed and variable charges, since subsidies to the poor should only be included in the fixed portion, leaving the variable cost to reflect consumption decisions. Unfortunately the payment information is not separated this way and in the case of Honduras subsidies are applied to the variable portion. 46 4.7 The quality of SANAA's water services for the poor is very deficient. 55% of the first quintile households reported having the services for less than 8 hours per day and 82% for iess than 24 hours per day. Although the wealthy are in a better situation, they are not fully covered either. In fact, intermittent distribution of water is a characteristic of urban life in Honduras. The most recent report from the Collaborative Water and Sanitation Working Group, headed by PAHO states that 24 hour service is found only in rural areas and in four secondary cities. Overall water service averages 6 hours per day in urban areas (box 4.1). 4.8 The quality of SANAA's water per se does not seem to be good either, judging from the large percentage of wealthy households that boil it betore consuming it: 97%. On the other hand, the poor, who receive the same quality of water, reported boiling it in only 68% of the cases, presumably because the process consumes a fair amount of energy. Box 4.1. The UEBD - special program for the poor Since the mid 1980s the UEBD has been the main source of water and sanitation for low income neighborhoods. Financed through UNICEF by European donors, the UEBD has established a team| of 'promoters" in SANAA who both educate marginai communities in water conservation and sanitation and organize water committees to develop and manage community cistern programs. %3UMV a p1wiM, is defined, Vl.ca waLei .,Ui1I1L1LVD jijurn iaiaV UemWVVII IV - 15/0 I LUof LULa toVa:Los and agree to contribute a certain amount of manual labor. The committees repay remaining investment costs to the 1FRD revnlving fiu,nd f^r water and qnitation o An intere'.t free basis over an 8 to 10 year period. The water committees also calculate and collect monthly charges from households according to both the amortization of investments and operating costs. including the water bill from SANAA or from private providers. The UEBD claims to have developed over 130 projects benefiting a total of 160,000 persons with house connections based on alternative water supply systems. But in spite of its much needed assistance, the program is far from perfect. Households served through the program pay a higher rate for water, and receive less than those connected to the aqueduct even though they represent a iower income population. SAINA A' cnarges five times its lowest domestic rate (L3.5/M3 instead of LO.7/M3) for water trucked to the community holding +--l-,A ls anA +1k. w.+- com f or-A--R- Aen I;.r- R AA,;4---I _-A+--e .-A A-eo..U+;A _+ IMJ W~ Ofl UW1 ffI VSIIhhILLL s .111UI I%Ofl*J%fIW IVI UaSfltVfI IUIUIIWIA#f(fll. IUL tLU " VIUU I tWV;3t. The UEBD reports that under the alternative systems "marginal" communities normally receive water twice a week or every foulr davy for an houlr at a time; denendino on the service methods What does it mean to get water one hour every four days? l In the barrios of Abraham Lincoln and Centano n where the UEBD has installed a holding tank, a well, and a pump to pipe water to each home, residents count on three liters per day per family member. Three liters are used mainly for cooking and drinking (after boiling for coffee or soups) and is not enough to wash clothes or for bathing. Residents in Abraham Lincoln are fortunate to have a creek close by where they can wash clothes, but for most it means at least a 20 minute walk down to the creek and back every day. Residents employed as domestics or in tourism can sometimes bathe at their place of work, but most manage hand rubdowns in the back yard with a a,1r+ .1-- w.+ +., A-- g +-_+-,-A A+ T 2A ACI-...4. ~ftl) IA I A ha1l L :te U of. - t -f n fro a Or;5e t- V. d.Um. At L.0 V 4,mn ($2O.0V - 3.40) residents are paying approximately IA - 7 ($0.30 - 0.50) per cubic meter. While considerably less than the cost of a cuhic meter in New York- water in Ahraham Lincoln and Centano TI still costs four to ten times what SANAA charges for (albeit highly subsidized) water in neighborhoods connected to its aqueduct. And, residents in Abraham Lincoln and Centano II supplement their piped water supplies with purchases from private water tankers for prices estimated at ten to fifteen times SANAA's standard price. They tend to rely on Coca Cola or bottled drinks to supplement thirst and these, as diuretics, generally lead to more thirst, or susceptibility to congestion and illness in the long run. Source: Author's compilation, 2001. l 47 4.9 SANAA's tariff structure is similar to ANDA's. There is a fixed minimum charge and an addiUinUal va.1aUl: ch1^1 u1. ge Odl uio, II tounuUllivu. iur uliiuiy fes uy il arte UisullufUaIU Vy land use categories including residential, commercial, industrial, and government. Water from standpipes hliis aVp4UaLV LUI l V.on1UgURKiVU. SanUiLaUi sUrVIces ar charTgeU aL 25% o1 the Lotal water charge. In general tariffs are extremely low and do not cover operational services. In fact SANAA depends almost entIrely on subsiuies11 0111 Ulu IV1Il uhvvuelUeUL. Tabie 4.2. Sanitation of grey and waste waters by housenoid consumption quintiles in Tegucigaipa, 2UU0 ICharacteristic' - i IQ2- Q3 rn1Q4'-VQ5I Toa I % disposing of grey waters in backyard, street, ravines rT I I I I -Shower 55 29 7 P0 i -Laundry 55 A 29 o7 '24 n 19^ 1- I CA 0 It fk in~~~~~~~ -wV5s 1 .- JV O V 17 P!ace where hhld memhers urinate/defecRte4 - % having sanitary facility inside the house 25 56 81 94 100 71 % - % having sanitary facility or latrine in backyard 69 40 18 6 O 27 -%urinating/defecating outofthe property 6 3 0 0 0 j 2 Method to dispose of waste waters (%): - % using sanitary facility connected to public sewer 37 66' 90 98 99 78 % using sanitary facility connected to private sewer 4 2 1 1 0 2 - % using sanitary facility connected to septictank 0 0 0 0 0 0 - % using backyard, street, river, etc 10 7 |2 0 4 I Year in which system was acquired (SANAA only) I I - % who acquired it before or on 1980 l 8 l 9 l 8 I - % who acquired it between 1981-1990 2 - % who acquired it between 1991-2000 10 7 6 2 0 4 -%who do not know o 61 76 181 83 84 79 Acquisition cost (SANAA only)(lempiras) 1,404 1,244 978 987 229 1,102 How was the service acquired (SANAA only) (% l l l l l l -% hhlds acquiring service through personal action 18 15 10 9 5 I 10 - 3. 11 A 6 I I 12 I I / lIiU *jLU5~1VI1 UU~1~UIJuka411 0 Z. 11 I I IL -% hhlds acquiring service through government action | 6 | 6 6 | 3 | 3 | 4 %hhlr acnuiring servince thrn,urh dieve1nnLer 1IO 2AO I I7 35'5 Has experienced the following problems with mpal sanitation system (SANAA only) (/o): | I - % experiencing bad smells 8 9 '13 8 7 9 - % experiencing overflowing 6 1 2 2 2 2 - % experiencing flies 12 7 9 5 4 7 -%experiencing no problem l74 182 176 l83 l87 l82 Source: World Bank, 2001. 4.10 The poor pay almost as much as the wealthy per cubic meter of water consumed: L2. 1/m3 versus L2.4/m3. This might be explained by the fact that residential tariffs are differentiated only by consumption and that subsidized tariffs, corresponding to less than 20 m3 consumption apply only to a small portion of the first quintiles househoids. One thing is clear, though, if the poor can pay water at L2/m3, certainly the wealthy can pay much more for it. Consumption in cubic meters shows an expected trend, with households in the lowest quintiles consuming much less than those in the higher quintiles. 48 These numbers are highly reliable as interviewers had strict instructions to only take this information from the water receipts. Only 245 households, of a sample of 1200, showed the receipt. Monthly payments to SANAA go from L40 to Liii, that is, following a 1:2.8 ratio. Information on monthly payments for other sources was impossible to obtain in Tegucigalpa and therefore it is unfeasible to verify the hypothesis that alternative water sources are more expensive, particularly for the poor. 4.11 With few sanitation options, more than half of the poorest households dispose of their grey waters by throwing them in the backyard, street or nearby ravines (table 4.2). Considering that this percentage might be an underestimate, the sanitation of grey waters in Tegucigalpa appears as an important problem affecting the poor. 4.12 A large percentage of poor households do not have a sanitary facility inside their house (75%) and most rely on latrines (69%). In contrast 100% of the fifth quintile households have bathrooms inside their houses. As many as 10% of the first quintile households, or some 4,000 families, admitted throwing their waste waters in the backyard, river, or street, while a majority (49%) use the latrine as their disposal method. Only 37% of the poorest are connected to the public sewer. 4.13 As with water services, the poor had to wait longer and incur in extra costs to get a sanitation connection. First, 32% of the poorest households reported getting their connections in the veriod 1981- 2000, while this percentage is only 7 among the wealthiest. Second, the service was acquired mostly via communal action among the poor (38%) while for the wealthy the most common case is via developers (75%). Third, the poor reported paying much more for a sanitation connection than the wealthy did. This is explained by the fact that the poor obtained their connections, for the most part, after being settled for several years, while the wealthy bought their properties with a full array of services, including sanitation, and therefore these costs are included in the property price. 4.14 Over 80% of all households report no Droblem with their SANAA sanitation service. There is variation across quintiles with the poorest complaining less than the wealthiest. Among the problems reported the most important for the poor is flies: 12%. followed by bad smells: 8% and overflowing: 6%. B. Electricity 4.15 Similar to water and sanitation, provision of electricity is also hampered by institutional Uncer ty. There has been political discussion on whether to dism.antle the mpresa Nacional de Energia Electrica (ENEE), created in the 1960s, in this case to form separate companies for production, U13UJUtLin, nete-.eauding aLiu b11iin, a.iiu LU se: or LV granLL a c eionICZ33GIu LV priVatL opIertor1b. 'Wv iUII concession or contracts for the major areas are advancing slowly at best, ENEE's meter-reading functions hiave UbeII outLsuoL-u sincv uI, UVrgUiUIrU1 01 2000. Wili uie new .cUleIU C e nuFd: cUIil,uIWiiUe UIIurVId the responsibility of ENEE it does not take the informal urban communities into account. 4.16 Unlike water and sanitation, electricity does not appear to enjoy attention from NGOs or external donors. NGOs consulted affimn that most setliements over ten and fiIteen years oid have eiectricity (illegal or informal) regardless of their legal situation. But like ENEE, they give little assurance of the situation of informal communitues developea m inte last aecaae. 4.17 For the past five years ENEtE has concentrated investments in rural electrification with the support of the Fondo de Electriflcaci6n Rural. New connections in urban areas are financed by owners, mainly real estate developers. E-NEE cites high investment costs and illegality as the main stumbling blocks for increasing energy service in urban areas. Even when legal and planning requirements are fulfilled FNEE will install electric connections only within 300 meters of an existing post. Costs of 49 extending principal lines must be borne by consumers. Meters are rented for L50/month. Once cnnnected, households pay according to us-age. 4.18 A!1thog1, a 8reat r of h.. 1eighborhoods ha;s street l8irnu f07%) houshol had, toA wait a long time to get the service (table 4.3). In fact, as many as 47% of the first quintile households and A24 of toP^he seAond qutl o Al t o- +b- la.-.-n - Q - 44,a 1-).+ r^ yet-- A- +- A'_/U VP As u VVVt Mw w AAA-l-s .... wwllVu VV ..t "llo ovAA - WV VV V. As AV -t - A- AX - .- - electricity is veiy high, with 100% rates in quintiles 3, 4 and 5. In the first quintile 6% of households do not have any elet;iywhle this64 -s1 +U;q - case- for onl- 2%O/ A^-; h eo. qU-le -,-^iA U vater a.-A II'J IIC L. aly C1 WILlJ.Y VUI " Li StS .50a la V. .a0. QIISC Em G11513 Z/ 111 UIC' 0%,''Jlfl - ...L . VV i V -ULfl(.11 sanitation are absent in large segments of the poor settlements, electricity is not. The reported source of elqc.u-;lP..y, Ui 1l.lOSt c..ase91s, i Uie elechuaiity iomp,ary. I1ac.caculy nIbUoUy U%UIIILO a vinVgIA nfor.al connections. Nevertheless 9% of the poorest households admit not having a meter, a possible indication of :uoIlLUIIaIIL.y. Table 4.3. Street lighting and electricity by household consumption quintiles in Tegucigalpa, 2000 Characteristic lQ3 -A_4 I I AN -/e wimn puDiic lignhung a l / | oo YY a/ ~ - -. _+~1 +I A47 I')A il I2 A 1V) I - /% navm n ;,lee: light:5 V Ul Uir -13e I atI S I - 0/n with electricitv in holuie 1 94 18 100 I 100 I 100 -99 I Source of electricity: - % getting electricity from the diectric company 97 96 100 100] 100 98 - % getting electricity from neighbors 1 0 0 0 0 0 % with informal connection i1 4 0 ° ° 0 1 Existence of an electricity meter: - % having an electricity meter that works well 90 94 99 99 100 96 -O % aving an elecaruiciy me-er Ludt does nut work1 0 0 0 0 0 - % not having electricity meter 9 6 I 0 0 3 |%havingexperiencedblackouts in last6 months 75 73 70 66 72 71 Problems with electricity service: t c o v 1 2 2 - % having lost an electric appliance duetochangesofvoltage 19 2 1 22 24 27 22 -%with variable light intensity 9 12 14 1 10 1 L-withnoproblem 68 K61 1 59 :73 2 6 6 l -Payment per monm tiempiras) l i04 l i l4 l 297 l l2 - Consumption (Kwh) 142 211 238 254 283 224 * only if receipt was shown I I l I l I What happens if does not pay the bill: - % whose service is cut 93 96 99 97 99 97 % who have to pay a penalty 9 9 9 9 9 9 I |% who are not affected 17 14 l 12 l 13 i Source: World Bank, 2001. 4.19 Around a third of the poorest households (32%) reported having one problem or another with the electricity service. Changes of voltage, insufficient voltage, and variability of light intensity are the most frequent problems. As ENEE acknowledges, quality of service varies according to the type of 50 connection. The "illegal" and clandestine services tend to be intermittent and weak. Electricity sold in block to poor neighbornoods is also weak. 4.20 As for pricing issues, electricity rates are designed to subsidize consumers using less than 300 kwh/month. The resulting system favors middle and high income households who make up 85% of the beneficiaries of the subsidy, according to a Poverty Diagnostic carried out by the World Bank. The regressive nature of the subsidy means that ENEE, which receives L280 million/year in transfers from the national budget to match the subsidy, does not stand to gain one way or another from increasing efficiencies to reduce intermittent supplies. Nor does it stand to lose from increase connections in low- income neighborhoods. The household survey shows that the poor pay almost as much as the wealthy per Kwh consumed: Ll.6/Kwh versus Ll.9/Kwh. C. Solid waste collection 4.21 Institutional Setting. Garbage collection and disposal is managed by the Municipality of Tegucigalpa but, like the three services previously mentioned, is also in transition to a system of private sector participation. A study currently underway, financed by an 1DB loan, recommends private concessioning of garbage collection. Tegucigalpa is inclined toward a concession option in the hopes of reducing its L56 million annual expenditure for garbage collection. The study proposes that neighborhoods with unpaved access roads or in particularly hilly areas would rely on microenterprises to collect their garbage and deliver it to an intermediate transfer point. This proposal, while attractive in theory, could be difficult to put into practice. Research by the World Bank shows that microenterprises can be highly effective at garbage collection, and even disposal in low-income neighborhoods, but that they need a significant percent of high-income clients to survive economically. 4.22 Unlike in AMSS where the municipal governments have invested in a long-term solution for solid waste disposal at the metropolitan level, Tegucigalpa has only one legal dumping site, an open landfill with no sanitary control, with unrestricted access, and reaching full capacity. 4.23 The coverage of door to door municipal solid waste collection services for the poor is low (41%). In fact quintiles 2 and 3 also have low coverage rates (65% and 78% respectively). In sharp contrast, 95% of the fifth quintile households are served (table 4.4). Municipal collection at a transfer point is an altemative for the poor, with 17% of households in the first auintile using it. But the most surnrising result is the rate of households in the first quintile who admit throwing garbage in lots, rivers, ravines, backvard or burning it: 49%. In AMSS the eq.uivalent number was only 3%0 Considering that these percentages are underestimates, since people do not like to admit following these practices, solid waste collection appearn s n a serous problem for noor Temicicalncn. 4.24 These deficien-iesfranslate nto mrore hygie es hlob,r^.s ir. +h. t - s nghbh- TAr..es- problems, in order of importance, are: piling of garbage (32%), bad smells (20%), and flies (12%). T^nffs hard1., mer.tior.e as a ,prnlb.em by. hnruchnlAs nir.al qui.tfiles. A ') AZ ~ C,--- +h A,...r +_. A - C. - T 1V7+-. T AO (O1 1 *.~4- t'j\ IN ._ 4r.".5 Monthlv ib ... for th %doo to dloor service goes LiLvom L17 to LAO ($1.l '.o p3.2). 1nLi,e differential is rather small, with the wealthy paying, on average, only 3 times what the poor are paying, in sit-LW VL llaVlanll UVVgII gr gV6atV WLUUL 8.5 time largerVI. IUVbV tUariff aV VY IVW, Weilrl 1- b probably why nobody complains about them. Municipal collection at transfer point and private collectors are s-ubstanltially chae, . ou a-1e' aeqi' aib: .no. on-,r.to gouL 51 Table 4.4. Solid waste collection service by household consumption quintiles in Tegucigalpa, 2000 Characteristic' " "' x Tlotal | - % having door to door municipal collection 41 65 78 91 95 74 - % having municipal collection at transfer point 17 15 12 6 3 11 -% havin on private collectors0 0 2 0 I I - % who throw solid waste in lots, rivers, ravines, backyard or burn 4 21 9 3 10 '16 Problems of solid waste collection service (regardless of collection l type): - % experiencing piling of garbage 32 31 24 16 15 24 - % experiencing bad smeiis 2u i3 i2 9 iO i2 - % experiencing flies 12 1 9. 9 6 |10 a^/Oe^reclg - l5 7 a 8 l% who think the tariff is too high I I 1 2 0 1 I with non ronle. pn n ' 34 i4 V7 i 6 u4 Monthlvy ayment for: l l l l l l | Door to door municipal collection 17 24 28 47 48 36 - Municipal collection at transfer point |2 | 13| 121 |6 |4 | 8 - Private_collectors | 13 53 27 |33 Source: World Bank, 2001. D. Drainage 4.26 Institutional Setting. As in AMSS, the responsibility for maintaining and improving the drainage system is not clearly assigned. In principle, SANAA is in charge of sanitation and the District is in charge of drainage. Nevertheless the channels are sometimes mixed, creating confusion in terms of who is to maintain them. Following hurricane Mitch access to storm water drainage and landslide mitigation measures have increasingly figured in the municipal agenda. Although low income neighborhoods are particularly vulnerable to floods and landslides and Tegucigalpa's neighborhoods are particularly precarious, storm water drainage and other mitigation measures has yet to be addressed. 4.27 A considerable 17% of the poorest households reported having suffered damages from floods in the last five years (table 4.5). Hurricane Mitch is probably the cause of most of these losses. Landslides, often resulting from floods, have been even more destructive, affecting 22% of the poorest population. As in AMSS drainage appears as an important problem affecting the poor. Table 4.5. Drainage issues by household consumption quintile in Tegucigalpa, 2000 lCharacteristic ' Qi O1'1 03' 1 Q4- 1'Q5 Total - % who have suffered from physical damages due to: | l l l 3 l-floods l17 l17 l13 l12 l7 113 l |-landslides i22 121 115 12 1 9 |16 | Source: World Bank, 2001. 52 P PTRIT C TRANRPn11T 5.1 A lnrge percentage of Tegucigalpans (over 8%OM deped nn npuhlic tr_nnnnrt to c nrrv not their daily activities. Unfortunately, the public transport system is highly inefficient. Services are supplied entirely by the private secptnor, with the centr- ! uhrtm,nt regulating &nA providinc eiiheti subidie Despite these subsidies, the quality of bus services is poor, coverage is limited, accident rates are high, and congestion, especailly in dow.n.town., is severe. Hurricane Mitch worsened an aready deteriorated road network and destroyed some of the bridges in the central area of the city. This has also aggravated Conaocĥtin gnA mnAp rnmm,utinc Ku .^4r7P r , *hPc al hi A a mairIr wrnhlam Th;c phavntpr .nn institutional issues, the suppliers of public transport, costs and pricing, and an analysis of the household cl In9) lru_1 _ - I to, A :_41 srVJe results. A. .n..tutn.;ona l ,....ng 5.2l IThe aQrvnvy in charg of UImluencir., proVIsIII Uo pUUblic UtrarI3sLJ I servic Ui UiLe city ardu UI LleI country, is very inefficient, overstaffed, and has very limited resources. The Directorate General of Tr_nspo-& fvC-T)ll-l uh cer~--+ltl oenrt' Scriat.-- -f DPublic --,o^,TalstanYosg I La" puL IIj'. )R iLn 'LU UIuV~,ILLUMlIu 0 0qJ,LVU2L4llL VUk 17UUII'.' VY UIPI, I aIaj.I0ulL aJ.U IVu iiuuii (SOPTRAVI) has a total of 250 people including staff located in the three regional offices in La Ceiba, Sar. Peudv Sula adIIU C.hLLV1Uteca.U ITl.e DGT is respUnslUIe II esabllirin gU IbULsrue, g aIIL.lIg opera1tLIg permits, and administering the subsidy system. Technical decisions are made on political grounds, especiallly Ul SIIuIL g ir,g VI pFIL.ui. TIh DJ'sJ o ffI.ceVs werV Uauiy af.ecd bUy ulili.%iIV lv Il.cu. computers, disks, and paper files with transport planning information, route maps, operator records, were al: Udesuoyed. -LZCosqLuerL.ty pLiUlannin activities haUve,V1 bee sriulJb_y 1IUU i tUe U and ilgl ope-ra.orsz lhaVre taken advantage of the situation to operate buses without permits. A move to decentralize public transport provision has been -under discussion for somr,e timiie now but tuhere has not been political -wliUW or consensus to carry out such a reform. 5.3 The municipalitv of Tegucigalpa has no direct control over public transport but does influence the quality of services much muore than do municipalities in iviMero San Salvador. The municipality is responsible for the maintenance, operation and construction of roads, as well as of traffic lights, and signage. it also controls policies miluencing lana use, DUS StOps, and parKMg. lLDB-s municipal development project includes technical assistance for: (i) road infrastructure planning; (ii) improvement of contracting procedures; and (iii) the creation of a central district transport fund to channei aii sector related incomes and prioritize their use according to agreed priorities. The project's investment program will finance the rehabilitation of the road network segments in poorest condition and new construction according to the municipality's investment plan. B. Provision of public transport 5.4 As noted earlier, public transport services are provided entirely by the private sector. A majority of these private operators own one or two vehicles; only about seven operators own larger fleets. Most operators have organized themselves into cooperatives or syndicates but there are a significant number that are not affiliated to any organization and operate independently. COTRACOPL and ITHSA are two of the larger syndicates, with 115 and 165 members, respectively, and a fleet of about 300 buses each. 5.5 Taken together, there are about 40-65 subsidized public transport "enterprises" (each syndicate counting as one entity) with an estimated fleet of 800-1,015 regular buses. The fleet is old and obsolete - only 1% of the buses are less than five years old, 67% are about 12 years old and 32% are over 20 years old. Many of these are used second-hand buses imported from the United States. Government officials estimate that about 85% of the fleet is in bad condition due to age and poor maintenance. 53 5.6 hne reguiar buses operate on 80-iu0 routes wnicn can De Uividea inio tour major zones - soutn (101 buses), southeast (145 buses), east (232 buses), and northeast (172 buses). Almost all routes are radial, originating and terminating just outside tne city business district (CBD). Before hurricane Miitch, all bus routes passed through the CBD. After the hurricane the government banned buses from going through the city center. For many traveiers this has increased the time and cost of their trip - they now have to change a bus and need to pay two fares. Many passengers opt for walking rather than pay the extra cost. 5.7 In addition to the fleet of subsidized regular buses, there are about 500-600 microbuses, 1,250- 2,000 collective taxis, and 4,500 regular taxis. Microbuses connect the peripheral settlements to each other and are increasingly providing service to the city center as well; their fleet is increasing rapidly. Collective taxis operate on about 26 fixed routes and charge a flat rate per passenger. Although they do not receive operating subsidies from the government, microbuses and collective taxis are an important part of the public transport system and often compete directly with the subsidized bus service. 5.8 Previous studies of public transport in Tegucigalpa emphasize that the ownership structure and operation of the bus system is highly problematic and serves as a major obstacle to reforming and improving service. Specifically, the existence of hundreds of individual owners or firms with one or two buses makes the planning and coordination of bus services extremely difficult. Furthermore, many vehicle owners have moved toward a system where they lease the bus for a fixed daily fee (e.g. L300/day) and the driver and his assistant retain the fares that they collect. For the owners, this approach eliminates the problems associated with reporting and controlling total collections. However, it results in a highly fragmented system, with each bus operating as an independent business run by the driver and an assistant working on a short term goal of maximizing passengers and fare collections per trip. Under this scheme owners ignore the profitability of their buses as they really do not know the income collected per day. 5.9 In addition, the DGT has awarded many more route permits than were technically needed. With the loss of information after hurricane Mitch, this situation has been aggravated, with many buses circulating without permits, and evading registry taxes. This over supply gives operators no incentive to improve service and fleet maintenance. 5.10 The current system suffers from the following kinds of overational problems. In competing for passengers, drivers tend to disregard traffic rules and often compromise passenger safety. Drivers also show little regard for designated routes, schedules and bus stops. At a broader level, the link between costs, profits, and service quality is severed. Having lost control over costs and revenues, owners have little incentive to make significant investments in maintenance and in improving service quality. Further, in such a fragmented system it is hard to match demand and supply - thus, on certain routes there is excess supply whereas in others there is inadequate supply. Similarly, during peak hours there is often a supply deficit and at non-peak hours and during weekends there appears to be excess supply. 5.11 A public transport report financed by the French Ministry of National Education and Research notes that in certain market segments and routes there is excessive competitinn; not only among re0nlar buses but also between different modes such as buses, microbuses and collective taxis. That is, different modes of transport are comneting in iimilar rmiiter and markete At the Rame time there iR not qefficient diversity in supply to satisfy demand in different segments of the market. This analysis helps reconcile seemingly conflicting assessments - the govermnent's notion that there is ex-ess supply and niCA's argument that public transport services in the city are insufficient. 5.12 It is estimated that, in 1995, the average revenue was L 78 per day per bus and that the average profit rate was 2%. A cnrdir.a to nn-rnrnr.t nof l ar.d bus on,ners Ader.and- ar.d passenger volu- have fallen after hurricane Mitch. Before the hurricane, passenger volumes were at about 1,150 54 passengers per day per bus and they appear to have dropped to about 850 passengers per day per bus. This is in part because buses arre not allow-ed wiuhin te CBD and have lost passengers who were iraveling short distances to and within the city center. Bus owners claim that profit rates are low and that loss- making firns are not uncommon. 5.i3 Although there are termiinais for buses and microbuses at the starting or ending points of the routes, they do not have infrastructure such as bus waiting area, designated entrance or exit, and service facilities for passengers. Most bus stops do not have a sheltered waiting area and information boards. Since 1998 the government has started granting concessions to private firms to build fiber glass bus shelters at bus stops. In exchange for financing and constructing the bus sheiter, the private investor gets the right to advertise at this location for 20 years. C. Cost and pricing issues 5.14 The fre for regular bus service is established by the government and since September 1999 passengers have been paying L1.15 ($0.08) per trip. The government contributes an additional L0.50 per passenger as an operating subsidy. The tariff does not vary with distance and is not based on actual operating costs. By comparison, microbuses charge a fare of L1.3-2.0 depending on the route and distance, collective taxis charge a flat rate of L4.0, and special service buses that guarantee a seat for each passenger charge L3.0 per person. 5.15 The subsidy amounts to about L550 per day per bus and it is calculated at LO.5 per passenger assuming a volume of 1,100-1,150 passengers per day." The financial cost of the subsidy is borne directly by the Ministry of Finance and is in addition to the city's annual budget. In 1999, this subsidy cost the central government LI 14 million ($10 million) - this is a highly significant amount given that Tegucigalpa's entire annual budget is about L340-400 million. 5.16 SOPTRAVI's DGT administers and monitors the subsidy system which requires that each subsidized bus operates at least 20 days per month and completes four round trips per working day. Currently about 80 government employees are involved in administering the subsidy system, including a team of field staff who monitor the daily volume of passengers and the number of trips completed by the buses. Administration of this subsidy costs SOPTRAVI about L4.0-5.0 million per year. The fact that the subsidy depends on the number of trips rather than on the number of passengers, raises the number of low occupancy trips. 5.17 SOPTRAVI estimates that to ensure cost recovery operators need to collect about L12 per vehicle kilometer to recover costs. The cost recovery fare depends on the number of passengers but is estimated to be in the range of L2.0-2.5 per person. For newer buses, higher fares would be necessary to ensure cost recovery. 5.18 The. only other estimates that contribute to a calculation of operating costs are from the French study. This study notes that buses travel an average of 123 km/vehicle/day and consume an average of 18 gallons of fuel per day. The average round trip takes one hour and most buses complete four round trips per dav. ' The approximate annual cost ofthe subsidy can be calculated as: 1,100-1,150 passengers/bus/day* 20 days * 1,000 buses * 550 Lmp/bus/day = L132-138 million. 55 D. Results of the household survey concerning transport 5.19. Although a great percentage of Tegucigalpans own a car (41%), there are enormous differences across consumption quintiles with onnI R/ owning a ca in the finrst quintilw he eiuolpnt fig5 re is 79% in the fifth quintile (table 5.1). In fact, the break is really noticeable between quintiles 2 and 3 where car ownershin almost trinlesI The. rate of bicycle and motorbike ownership is low in the entire city. Several reasons explain why bicycles are not used more in Central American cities: (i) uneven toponaphy; (ii) nunsafety; and (iii) th.e lack of infratfrut itre such asl bike paths and bike parking facil.ties. 5.20. The poor rely almost completely on public transport for their daily commutes: 97% of the first quintile households declared that at least one family member uses public transport on a regular basis. Although ove-rall use of nuhlir. trsonenrt ic hi8h in ot,er un.ti*es as w .ong the vvealfhy the percentage drops to 50%. The nature and magnitude of demand for public transport in Tegucigalpa has not been studied exptensively a,nd is not. ,ve! m,n..df.-oA. A 1995 O .-A or public I ir. uh ciy. included a person trip survey of 26,750 people which showed thatIbuses were the most important mode of trarn.-ort -.-d acco-nted fo- 44 % of a.! 4-;c, (J'.CA 1 O996 T`IU3 s,..A, also found `.. le a-vera-ge n-umber k' --. " "' 'F' -" L~wJJ L 1110 LUU.Y GIJ IUIU U14L LUI Iu11lJl of boarding passengers was about 100 persons per bus per trip and the average number of passengers was about+ 2) persons per bus. 5.21 . Non users of public tansport say that they do not us e bus because 'tey prefer to use their o-w vehicle. Around 21% of all the households that do not use the bus say that it is unsafe and another 18% say it s not comforable. Among the bus users arnd non-users, on t'he o6ther hand, t'e first priority actions that would improve the service are: improve security (27%), reduce crowding (24%), reduce waiting time (14%)l Sget nev buesaldm. _nthem.well (13%/u) dd ro-u'.es (11%)ari erreuefr (0) h ~ 5~I1I~VVuU~~ ilu 1,IOJILGII uI~1 WI k1J 7OJ u iU ULS~ 70) dUU UFW7USUUIU. U~I1U70). Th order of priority of these actions is similar in all quinitiles. Table 5.1. Vehicle ownership and use of public transport by household consumption quintiles in e uguc.gn1pne, 2000 l Characteristic - 'Wy ;; ;-;- ; -- l l Ql ;LIQ2- I j 3EjrQ4 ; j Q5 j'Total j % households owning a vehicle | 12 121 142 |65 1 80 44 Type of vehicle owned (%): | l l - % owuinoy a bicycle 4 6 3 5 3 4 - % owning a car 8 16 40 63 79 41 - % ownina a motorbike 0 2 2 I 2 I % hhlds in which at least one household member uses public transport 97 94 90 78 50 82 I j onaregularbasis I I l I I Major problems of public transport (according to non-users): l l I l - -%who prefer to use own vehicle 1 7 17 146 141 36 - % who think mat -at serv-lce is uiisafe O i3 25 I7 25 2i - % who think that the service is not comfortable 0 20 113 23 18 18 8 Actions that would improve the service: l I l I - % who think the first nrioritv is to reduce waiting time 114 11 114 115 113 114 1 - % who think the first priority is to reduce crowding 20 22 27 21 30 24 - % who think the first priority is to add routes 12 12 12 11 10 I 11I - % who think the first priority is to decrease the fa 19 110 6 9 4 9 - % who think the first priority is to improve security 19 28 28 32 29 27 - % who think the first priority is to get new buses and maintain them 16 13 14 1 1 |12 |13 better Source: World Bank, 2001. 56 5.22 The poor depend on the bus for most of their daily trips, particularly to commute to work (78%), to go to the mArket (7!%) and to o goto the he&th -^nr.t (48%). For _! of tse tp, w alking is, important alternative: 15% walk to work, 24% walk to the market, and 48% walk to the health center. In contrast, the .,1alth, relo tb.ar for all f.4-, e +xcep oe to schoo!: 75% use +lth cr tn go t mrl 65% to go to the market, and 68% to go to the health center (graph 5.1). 5.23 When it comes to commuting to study, the mode of choice is walking for the poorest, with a 69% .-.,A +16 -hAAn A t fn, . - +1, A ;A r A+ wit A a A OL _..+ TL:. .. -1.4+A +^- Cel +L-A _A. + oAt I1.A GUALIJ ul1 O%IMll JW. IuV *WI "U'.CVAP".L, TVLL u J Ua I u I *a I 1U3 la 1L&U LU Ua Ja'.L UIIaaL UIVaL VL LU1 poor children go to public schools located in their neighborhoods, while most of the wealthy kids attend pi ,vate schools UL Lhat hv UUs s v ice. Graph 5.1 Trausport mode by household quiutile aniu uy purpuse uf trip, Tegucigaipa, 2000 Trips to Work of Prnury Worker Trips to Stucy of Primary Student 100% E106 90% ______________| 7_9|% t 4v% *1@ |vvnaXaew l t 4v% l D *v v Shareci80% 70% '11M,1k - _ ! 1 IEI° 2.70% a SCnooCI bus W0% 60% I 1k I 8 50* Own vehicle if 240% 40% Sha Ma- t il 30% 30%BI i20%b ] 20% i L ilO l 1:1ll 100% _ _ _ _ _ _ _ _ _ _ _ _ _ _ 10% 0%, ~~~~~~~~~~~0% 01 02 03 04 05 Q1 ev _ en Q4 Q5 Quintie J [ Quintile TrIPe to Market Tripe R0iatdto Hsafth 90% 9~~~~~~~~~~~0% 80% 50% 40% 7c 0% - 30% -a B__U_G 3~~~~0% I- 20% 20% mom M, -u I 10% 10% igm Q1 02 03 04 05 01 02 03 04 05 Sourme: -World Bank, 2001. J.Z.t £.L:jJLVF LVI 15unij LU SLUUy, U80, PLiI UlaVl lvuill UisWiiiVsu Luril Uur W~uiuiy IWuiV, J.,L). M ue cs of trips to work, the poor have to travel for 37 minutes, on average, while the wealthy take 32 minutes. iIrips LO hLe rl&lU&rkL aiUd .oIC IIhtuIuI celwn er etlIsU louiger for the puur: 32 minutes versus y aUna Lo minutes versus 22, respectively. Trips to study are the only ones that are shorter for the poor (17 minutes versus 27), probably because poUr uiiiuren attend public neignhornoou scnoois, wnile weaiiny cniiaren go to more distant private schools 5.25 The poor have to spend a very long 18 minutes, on average, to walk to the boarding point and wait there, approximately 5 minuies more than whai the weaity spend. Adding these 5 minutes to the 5 minutes difference in traveling, makes a 20 minute difference per day, or a 100 minute difference per week. Fares increase considerably with consumption levels because shared taxis are used much more in 57 quintiles 3, 4 and 5, than in 1 and 2. The majority of the poor workers commute to work six times a week1: 6°,,whlemsto - +lewa+ workr. d oS ie erw0: 5,o Table 5.2. Distance, time, fares, and frequency of trips by household consumption quintiles in Tegucigaipa, 2000 Distance to destination (min) 2 |-Tostudy 17 18 | 24 29 |27 123 l I-Tomarket 132 129 123 120 119 124 1 |-Tohealth center 28 |26 |21 |23 |22 (24 l Minutes spent on waiting and walking time to stop (only | I I I l l l | togotowork(min)) 18 17 13 | I 13 116 6 | Fare(onlyforpublictransporttogotowork)(lempiras) 4.7 6.5 (11.2 23.6 |15.1 |10.6 |Frequency oftrip to work l l I l I -°/ whodo theA p 5iresweek 5 27 137 A43 AA - % who do the trip 6 times/week 60 39 335 3 28 39 %/ whn dro the trin 7 times/week n n 14 9 7 6 9 Source: World Bank, 2001. 58 Ill. PANAMA C1TY AND SAN MIGUELIIO 59 1. URBANIZATION AND POVERTY IN PANAMA 1.1 In comparison to other countries in the region, little is known about Panama's urban sector. By 1980 54% of its population lived in urban areas, for a total of slightly lscs than a million people. Rv I QQQ 56% of its population was urban, equivalent to 1.5 million (graph 1.1). Although urbanization has r.nntinn.A nt n QtP.sdv nqrp- in Pannmsi thp rmt- nf -rntuth hnQ hppn rnthpr mndprntp ThPrPfhrtr thp dynamics of urbanization are quite different to those of El Salvador and Honduras where the period 1980- 1999 r.epreseP-nt.ed sigAnifiaqnft uirban growth Tn terms of annIal growth, theu irban population has hpl n growing at higher annual rates than the total population, except in the period 1980-1985, but the gap has bpen decreasing steadily (mraph 1.2). 1.2 An snterestina r. jof rhoni7t.,n r. P&n&n. ih.t ttere is a high degree of -rbn. primnacy, that is, most of the urban population is concentrated in one city. It is estimated that 41% of the co -.t plation lives in tim ino l-"rcit, P&n&ma (f,., 1 t.n- nrp,,sonn E! Salvaor that l,4nAa.ator is a_. py. . ..' . 01 - s ... - . 5-~ -.7, A -...l .1J -la Jn*pa -Ofn -S --lLU UlJ ha t.,f.n 22% whereas in Honduras it is 15%. These percentages are even higher if suburban areas are included. Grph I4 1 Graph 1.2 Urban population In Panama Annual growth or urban and total populations 1980 -1999 1980 -1999 1.8 1.6 4.00% CL 1.2 3.00%0 - INTotal urban I 2_SC) 0.08 | -- |--| |-|--|U | populatrioan| wh a u^ain opuaiion 0 opl 1o . 2.00% growth 0.6 1.50% OTotaI nn-nti- 0 4 1.00% I growth 0.2 0.50% 1980 1985 1990 1995 1999 80-85 85-90 90-95 95-99 Source: World Bankr various years. 1.3 Panama is mainly a service economy, with strong links to international markets, primarily through banking, legal services, insurance, shipping, and trade, particularly in the Colon Free Zone. Services represent 76% of GDP, while agriculture is only 10% and industry is 15%. The Panama Canal has played a key role in the country's economic development; and will play an equally important role in its economic future. Panama assumed full control of the Canal on January 1, 2000 through the Panama Canal Authority (PCA). PCA absorbed the staff and assets of the previous administrator, the Panama Canal Commission (PCC), a non-profit US agency. Long before the official handover of the Canal administration, the US had been returning to the Government of Panama vast extensions of land in the Interoceanic Region, in total 540 square miles. The autonomous Interoceanic Region Authority was created in 1993 to foster development in the area and to attract foreign investors. 1.4 Poverty was analyzed extensively in 1997 through an Living Standards Survey ("Encuesta de Niveles de Vida", ENV) carried out by the Ministry of Economy and Finance, with support from the World Bank. The study found that poverty is more a rural phenomenon in Panama, with 65% of the rural population under poverty, while this percentage is only 15% in urban areas. In absolute numbers this means that there are 230,000 urban poor, who constitute 23% of the total country's poor. But addressing poverty in Panama's cities is important because: (i) some 25% of the urban population is clustered just 60 above the poverty line and are thus highly vulnerable; and (ii) migration to urban centers, particularly to the P-nm&a City, wi!! cor.,u in. ya 1.5 But as .. rtnt spover.., is ve.y hMM, ineqt in P.a.,arnA-: d t a vh per capita of $3,080, the Gini coefficient was 0.6 in 1997, among the highest in the world, with a Gini celcient of 01..U58 ir.01 r areas all 0.53 in Lu,a ar cU as. 1.6 I The uFu 0jJrol"Qu a.cuea o1 1 a cau"Ia C.-1Ly is ulaude vf u1 cvuuuY t' capital anuu Ull UUa.U areas of San Miguelito, Arraijan and Chorrera, with a combined estimated population of over one million. In the last 40..A _ A.L _ .11- A_J 44 -I^ DA__A fl: . L- LAA _ A 1 AIO -nx _ __ -- ----- TL_ A.sX_ A_ALA. LINV yMial UIV PuPusauvu 01 ValGUla _ALy uaM UVVI *UWUI1 aL &/U pVI yvai. i u a.i,a1 llaVU been growing faster, particularly Arraijan, where many invasions have taken place since the reversion of lands fUoUm IULV US. 1.7 A '.o -'-L- 199l'7 UhT1T 1'if uL. p .ior. in Panama Ci ...J ar'd S- .Z. Mui (Thf\ 1. il"u0iumu LU UIV. 1~77 1~J L4V, 1.70 VI ui, PUPUmLat-lo iu raiwiM&i ILAL)' &.uua 'UH IVJIUC~IlLO kI,ar~1V1) fall under a poverty level of $905 aggregate consumption per capita per year. Descriptive statistics of the we:fare niuasurv are presentdu Ubiuwo T ota consumption Mer capita per year (dollars) Minimum $ 223 Maximum $23,324 Mean S 3,547 Population under different levels of consumption % under 1 dollar per capita per day 0.7% % under 2 dollar per capita per day 4.4% % under 3 dollar per capita per day 13.8% 1.8 On average, citizens in Panama City and San Miguelito urban area (PCSM) live on $10 per capita per day, with the poorest having to survive on 61 cents per capita per day, and the wealthiest consuming almost $64. per capita per day. Around 14% of the population live on $3 per capita per day. 61 2. LAND AND HOUSING 2.1. Panama is a highly centralized country in which most land and housing policy decisions take place at a national level, with practically no input from local authorities. Conditions in the housing sector in Panama are mixed. On the one hand, there is a lack of policy direction and a considerable number of migrants in need of new housing. On the other hand, there are some positive conditions: (i) low inflation; (ii) high per capita income relative to Central America; (iii), a well-developed banking sector; (iv) an aggressive construction sector. (iv) a program of national housing subsidies that. although not well targeted, has increased housing affordability for the formally employed; and (v) the availability of residential land. This chapter is organized as follows: in a first section the institutional setting is described, in the second the structure of land and housing supply is explored, the third section summarizes the subsidies and financing issues. and in the last section some household indicators are discussed.16 A. Institutional setting 2=2 Panaima's institutional setting for land and housing rn'arkets iS in need of impnrtant reforms to decentralize and modernize the sector. 2.3 The Ministry of Housing (MMI) has been dedicated to executing housing programs, when its main ffinntinn qhouuldi he sttfinar nnlicies and mnanoina thp rem,lai1ntnrv frmewwnrk Unlike mnct natinna! housing agencies in Latin America, MIVI is in charge of: (i) applying preferential interest rates for subsidie7d mortgage loans; (ii) imple-.m.enting housing proramms, among them, three financed by MB, Parvis, Provisa and Profmco; (iii) squatter regularization, upgrading of tenement units, building single family houses and serviced plots, and providing horme improvement loans; and (i;v) overseeinog the implementation of the metropolitan plan for the capital city region. MIVI's housing programs have been developed t*hw,th the National TAnort.gage fka%Tlo (daesrib in cstio;n, C") Thecs nron mos (Adcr:bed,A in section B), as well as the BNH could be much more efficient if MIVI took a facilitating rather than plm.n..fl. .lgf+ft role. A A nolaI- .Re si I-l laA A+_ t A fI f U CIO AA l.tflAJ UO,v O A A S UIU A I A J- asA: * _ ~~~S111. >6ffiAL ALV V - 9_ wU %, t 0 xA _tV t .. U*w_ *"_ -X &st lack of resources and outdated equipment, cumbersome procedures and requirements, and inefficient oiganization. In 1998 the ubl W11U11 ist.ryI, which is UUUnI LAr1V1Ut th .1 u.LILc, bear. U IIISJU .i.;on program including: (i) decentralizing its operations to six regional offices; (ii) computerizing its inf.,+n system - n- d (iifi *,A. b lg, .ne ,+a^.taon proces f-se.+ As a -e.t, + nov, A +_ to have MXIIIIIUfLIUU1 03 DL%11, QUJI kA1,111 ULIACL I UL.% I %.5A0LUUULJIi p1 %L.10a La3..II. r-I0 a AL IIJ VT vml ta111 IAJ 11T%, registered 80% of properties nation-wide and reduced the period for registration of real estate to 5 s _roA - CAW - 9wfAR +UA AAV:9_ :4h _I_4 -+ 4- A-* ArL 1s_ P . * _ L-A- A - AADA4 _ tA WUIIlaIr, ua1;. L. VW au, UIV %J&411r s IIUJ IiILIvJIi 10 LUVL alUvVyU3 uF Lu uai,l. *LIE xxvUS1uY 1 WULlvI UaWu alU the moment mainly for the purposes of identifying customers of services such as solid waste collection anU bLIVUt li16tIrL,g Z.j Il,e nUatULional caUkld.UV bbLVHl lb erirLe:y IU,UIrLgeU uy Ule LJVeJUIR,LIMIL VI %AsU4bL[V in he MV1HirsUy of Economy and Finance, without any input from the municipal governments. The cadastre is very * ...~' 2 ..L-. .1.. AAfln _1?,1_ IL - 1 . 1_ 2!-. .I 2 £1_ A I meIiLieUi. IL IN isLIMU&II UhttL oUily 'V70 01 fv housing SLOUK in Ulu UdisiuL ic roainama anu San Iv igurnitu are in the books. Paper files need to be hand-carried from the cadastre offices to those of the public registry. The unit is also understuaffed: ihrv are only three la-yers who cannot cover the backlog of some 2,000 properties in addition to some 100 new properties added per month. With funding from Spain, the Minisuy has recently awarded a coniract to modernize itLe information system with new aerial photographs and GIS referenced maps. It plans to contract out the maintenance of the cadastre system for 1' This chapter is based on interviews with public and private providers of land, housing and finance in Panama. It is also based on Angel, 2000, and Conway, et al, 1996. 62 five years. The World Bank is also co-financing a project to mkodemize the Registry and the Cadastre Department. 2.6 The Ministry's main interest in the cadastre is fiscal, as vro erav taxes are administered at this level. While only non-agricultural properties are subject to property tax, the last valuation of these was made nearly 30 years ago. In addition, many properties are exempt from tax or in default, and the Ministry has no staff to follow up on arrears. It is estimated that without changing rates, the current tax income of $40 million could be increased by at least $100 million, if tax administration is modernized. 2.7 The Panama MuniciRalitv does not have a role in the provision of land and housing. Its functions are mostly the administration of community facilities, parks, cemeteries and markets, and the provision of solid waste collection services. Unlike other cities in the region, it does not manage either of the following: the cadastre, the property tax system, the city's land regulations or the city planning process. B. Provision of land and housing 2.8 According to the Panamanian Construction Chamber, formal housing production was 8,000 units in 1999 for the five urban districts: Panam., San Miguelito, Arraijan, Chorreras, and Col6n. The government estimates that there is a housing deficit of 187,000 units in the entire country, but most of this deficit corresponds to needs of new housing and only a small portion to qualitative deficiencies. In fact, most indicators of housing quality, in the Panama City metropolitan area, show an appropriate housing quality. The main problem in the capital area is housing the numerous immigrants that are constantly moving from rural areas. 2.9 MIVI has been off to a slow start in two of the three housing programs financed by IDB. The project started in 1996, totalling $42 million to finance 3 programs and an important institutional reform. Of the IDB-supported programs, the only one that is operating is PARVIS, a housing subsidy of $1,500 per family, targeting 15,000 families, and with a total vrogram budget of $34.5 million. MIVI's other housing programs are minor and include: (a) upgrading some 700 crowded tenements costing about $14,000 per unit. (b) building single family units, about 150/year and costing about $9,000 per unit (c) sites and services, also about 150/year and costing $1,000 per serviced site; (d) a legalization program in Metro Panama, with a direct cost of $800 per unit; (e) a building material kits nro-rarm consisting of a one time subsidy of $1,700 per family to acquire a construction kit for a basic 3-room 36 m2 house; (f) house improvement loans at $1,000 Der unit; and (g) preferential interest rates for h.uses costing less than $62,500. 2.10 Formal developers in Panama are very active and have managed to continuously outpace population gr owth They _!aim that 5%20 osfcsngle fam,1i. hue ar.A 15%4 -f'he a.e built in 199 ..J . .... .... ,u1.afl m. -.... _. ...... W s n.v "SW L..l.iLOU ILa 777 were priced at less than $20,000, an amount that is affordable by 92% of the households in the _.,-^t ;t, a_l e t ;+- -f . ., . P;- .*- ;- - -1 - - , _.A +_ -4r A +M e tuA A_.__A . metropolitan ar . o Panm _CJ. One minimum salary is require to awr ltis type Ul IIoUDfIh i vebru three in the equivalent cases of AMSS and Tegucigalpa. The high degree of affordability of formal houIsing D.-.-.isdu . - ^v A-to-s 1(i) lar. --- eSsibled anu lUa aLIordable;a, ii 1eexze. AJAJ~W01111 GLUW .0 "MA% LU &WO J LaCLU1V. kg)1UUI AW 1U1U LaUMCCUI ULUU UIV,U k11) UIV, VAibLu11I of generous government subsidies and preferential interest rates. The developers' main constraint seems L. be uVLU services, FaLIVIulalIy vYaLF1 anU WvWVeage. OJIe large UVVVIUpeVr has i1IVVLU $P I IV110mi:ior iM a large scale housing complex but has been waiting for over a year for the water service. 2.11 There appears to be little housing NGO activity in land development and housing construction. %JiUe NlLIJ, UIlV JiTLILULU i PrUisallelUI Ud UruanUISmoU, IULuSes moru On resuarun and training, alitougn it nas been involved in small-scale projects in some slums through community organizations. Another NGO, tie Panamanian Foundation for Cooperauve Housing (FUINDAVICO) nas been working in Panama since 1960 and has run some housing programs with relative success. 63 2.i2 According to iviiv'I, imnormai iana aeveiopmenr aoes not exist m an organizea ana iarge scaie form as is the case in Metro San Salvador. It is suspected, however, that there are some partially-serviced plots selling ror $800 to $1,500 per piot in tne periphery. Medium or smaii scaie invasions of iand take place in the periphery of the metro area and are usually made by recent immigrants. These invasions may account for 12% of the popuiation'7 or about 130,000 people. This is a very low percentage when compared to most Latin American capital cities. Nevertheless several small organized invasions have been taking place rapidly and continuously in the Canals reverted areas, particularly in the municipality of Arraijan, posing a challenge to the government's plans to protect these areas. C. Housing finance 2.13 This section describes the programs of the National Mortgage Bank and of private banks, the main providers of housing finance. Mortgage loans are available for 25 to 30 year periods at the nominal mortgage rate of 9.7%. For the formally-employed middle and lower-income households, there is a three, government subsidy on interest rates of 4-5 percentage points. Although these preferential interest rates tend to be regressive because they are not available for the self-employed, non-salaried and small business owners, they have been able to move the private sector market downward to high levels of affordability. 2.14 The government is contemplating the liquidation of the National Mortgage Bank (BNH), the main financier of MIVI's housing programs. As is the case in other Latin American government-sponsored mortgage banks, BNH is engaged in financing land development, housing construction and long-term mortgages. It has been a very inefficient institution. As a result, it has ceased to lend and is, with difficulties, only recovering old debts. In 1999 its portfolio consisted of around 40,000 mortgage loans and 17,000 home improvement loans. The majority of the mortgage loans were for amounts less than $10,000, averaging $3,700, and almost half were in arrears at least 3 months. The smaller proportion were for mortgages greater than $10,000, averaging $14,500, and 40% were in arrears 3 months or more. Interest rates are highly subsidized, particularly for apartments, with rates as low as 3%. It is not yet clear what MiVI's new role will be' after BNH's liquidation since it would have to shift all of the housing finance and the subsidy schemes to the commercial banking sector. 2.15 The Drivate banking sector in Panama is efficient, competitive and, in the case of mortgage lending, reaches down to the lower-middle income households through the housing subsidies program. Banco General, for instance, the most active commercial bank in low-income housing finance, approves some 700 credits per year. Low-income families have access to commercial long-term credits at government subsidized interest rates. D. Results of ENV 97 concerning land and housing 2.16 A significant 8% of the poor in Panama City and San Miguelito (PCSM), equivalent to some 4,700 famnilies, live u nder shsred occunatinn (table 2=1), in condemned or abandoned hbildings originally constructed to house the workers building the Canal, or in barracks, located in the city center. These buildings have *unsanitary nonditinnq and are at risk of faling apart. Crunnduh a neighborhood where many of these tenements are located, has high levels of violence, drug problems, and prostitution. 17 It is not clear what exactly is understood by informality in this context. It could be lack of legal property title or lack of basic services, or a combination of both. Cities that monitor this aspect of urban life, have developed a series of precise quantitative indicators to define different degrees of "informality" or "marginality". 64 2.17 The majority of the poorest households declared owning their property in full (42%) and very few rIvnt (14%). %an the V La hand, the cat.egory "o-wn W.^hL mou.gase" ge*b a LeLr- share of whe poor households than is the case in the other two cities, with 28% of the first quintile households falling in this ca'eLgUy. Illi m iUIIIL UV UUe Lto 'LL Ifac uLat U'eLr is a r1uore atu-ve husnmg markUt in ranania, witU greatUr opportunities to obtain long-term financing. 2.18 Although informal tenure was declared by only 8% of the poor, 45% of those claiming being property o-wu-es do nut have a registered tue. inis means uiat as many as 7/os oI the poor mignt iive under informal property tenure, a lower percentage than in AMSS and Tegucigalpa, but a considerable figure, nevertnhuess. iic results are showing that contrary to what is commoniy believed, there is a substantial degree of informality in PCSM, in fact almost double the figure indicated by MIVI. 2.19 When the poor have titles, these are registered predominantly to male heads of households (38%), followed by female heads (28%), and very few under "couple" (3%). Across quintiles tne interesting findings are that joint ownership takes place much more often in high quintiles and that the difference between male and female ownership decreases with aggregate consumption. Table 2.1. Tenure status by household consumption quintiles in PCSM, 1997 [Characteristic ;l, Q2 F-| Q 3 -9! 4 Tota 7 in exclusive occupation I 92 94 97 97 99 Tenure I l l l l I I -%whorent 114 l19 126 125 125 122 l -% who own with mortgage 22 27 28 133 131 28 - % who own and have fully paid 42 43 40 37 41 41 - % who are mtormai 8 4 3 2 1 3 MULUPUM5 kUL3 LUZ~ lulJJUjV[LY UWUVISJ - % with registered title / or in process 55 55 69 76 85 68 I o,t t; Ka 8 9 A A A 17 - % service receipts 22 121 7 14 8 16 -% with no documentation 16 15 A 5 3 9 If there-istitle,towhomisitregistered l l l | -h%hlds having the title registered under couple 13 | 5 13 | 18 120 113 I - % hhlds having title registered under female head ofhhld 128 128 18 124 132 126 I -% hhlds having the title registered under male head of hhld 138 41 146 |40 | 32 |.39 I Source: Panama ENNV, 1997. 2.20 Although most houses in PCSM are made of permanent materials (91%), across quintiles the differences are striking: while 9% of the houses corresponding to the first quintile have walls with non- permanent materials, only 1% do so in the next quintile and none in all other groups (table 2.2). Crowding among the poor is as high as in AMSS and Tegucigalpa, with 4 persons per bedroom, whereas in the fifth quintile there is only one person per bedroom. Crowding is associated with hygiene, health, and social problems. The poor, pay, on average, $58 per month in rent, while the wealthy pay $317, a differential of 1:5.5. This stands in contrast to the aggregate consumption differential of 1:9.4. !8 T-hiS number is caicuiated as follows: 0A5 (percentage with no registerea titue) 64 (tile percentage ot property owners) + 8% (declared informal). 65 2.21 Self construction is a very important way of home acquisition among the poor, with 70% of the first quintile households reporting that they had to partially or fully construct their houses after they moved to a piece of land (table 2.3). This number is just as high as in AMSS and Tegucigalpa. In the last year 26% of poor households invested in improving their properties, most of them did internal improvements: 28%, some increased the floor area: 16% and few did external improvements: 6%. The cost of the improvements is, on average, a considerable $512, for which the main source of financing was savings: 82%, followed by family and friends: 16%. Loans from private banks and public institutions stand at 10% and 6% respectively. The percentage corresponding to public institutions is considerably higher than in AMSS and Tegucigalpa, confirming that access to housing and housing improvement by the poor is relatively easier in Panami. Table 2.2. Housing characteristics and monthly payment by household consumption quintiles In PCSM, 1997 ICharacteristic`: . l l l l : , l ; . l Q I . |01 Q2~ 1Q3 l l4 l Tota | - % Houses with walls made of non- permanent materials 9 1 1 O O 2 I Numberofbedrooms(#) I | 2 12 |2 |3 |2 l I #persons/bedroom |4 |3 |2 12 |1 |2 Paymentfor property (only renters) l 8 l 7 l 7 l 3 |% Monthly payment in dollars |58 |72 |107 |138 |317 |150 | Estimation of rent (property owners and others) (dollars) 1 63 119 194 301 656 | 262 Source: Panami ENV, 1997. Table 2.3. Property subdivision and improvements by household consumption quintiles in PCSM, 1997 I Characteristic l - Ql- 19k Q2 4Q3- llQ5 T otal oUUUIUUo VI oflupropet wheu mvuu. - % with no constr. or partial constr. n q i 1 A Main house improvement in last year: l 4 2 1 l l -%withno improvement 74 65 |63 169 171 16 | -%whoincreasedthefloorarea 16 l20 18 18 13 17 |% who did internal improvements 28 36 33 35 l23 31 | -%whodidexternalimprovements |6 |9 | 9 | 10 |7 |8 l | Amount spent on house . l l , | l I I I improvemenis (uoulas) l) il 14 . 13 ' OOO 266 2 I ;8 1 % hWds using savings I tIhild .i.ng Insnc from nublic inct Iu o2 82 RI' I? 75 79 -% hhlds using loan fiom private bank 6 6 10 10 7 8 h-%hhlds usinR help from aimily/friends I10 19 19 20 1 1 16 X _ 1~~~~~~~~~~~16 10 19 19.6 15 Source: Panam& ENV, 1997. 66 3. BASIC SERVICES 3.1 Complete and consistent information on provision of urban services in Panama is incomplete, but points to a growing gap in service in the outlying settlements of San Miguelito, Arraijan, Tocumen and other parts of the Canal Zone where informal settlements are growing at an apparently rapid rate. This chapter covers basic information regarding access, quality, and pricing of water, sanitation, electricity, and solid waste collection. A. Water and sanitation 3.2 The institutional setting for water and sanitation provision in Panama has, so far been very centralized. The National Institute for Water and Sanitation (IDAAN) is responsible for delivering services to Panama's urban populations. In view of the low sanitation coverage and the irregularity in water service provision, the previous government decided to privatize IDAAN. The objectives of private sector participation in the provision of water and sanitation were to: (i) improve service quality and coverage; (ii) make IDAAN's operation more efficient; (iii) eliminate the present scheme of subsidies; and (iv) bring cutting edge technology in the production and delivery of services. But despite a concerted effort to bring private sector management into the water and sanitation sector, involving the creation of a special commission and a World Bank financed study'9, any major changes in the sector's management seem unlikely in the near future, due to political disagreements. 3.3 Contrary to expectations, a considerable portion of the poorest households do not have access to IDAAN's service (12%). At the other extreme, all fifth quintile households are connected to the public aqueduct (table 3.1). Unlike in AMSS and Tegucigalpa, all other sources of water in the case of PCSM are insignificant: for a low 6% of the poorest households private operators are an option, while standpipes are used by only 4% of the first quintile households. Refer to Annex 3 for a comparison of access indicators in different Latin American cities. 3.4 A sienificant Dercentage of the poorest households receive water for less than 24 hours (34%) and many for less than 8 hours (15%). These indicators greatly improve with aggregate consumption, so much so that only 2% of the wealthiest households have service for less than 8 hours and 7% for less than 24 hours. IDAAN coverage rates are independent of the number of hours of continuous service per day! that comminilties get. At the bottom of the service oualitv listing, nine neighborhoods in ArraiiAnj and twentv nine in Tocumen, receive water one day a week in a cistern truck which delivers 110 - 180 gallons per familv Another tenth neiohhnrhnod oe.tc ninedl water one dqv a week for foulr honirc "Partial rervire" includes forty neighborhoods in Arraijan, most of which get water three days a week for four hours a day, althn,uah one nett service only one day a week and the other gets water six dav nper week In the remainder of Metro Panama some eighty neighborhoods have partial service. 3.5 In general, most households drink IDAAN's water without boiling it first, an indication of good qua-lit. Poor users pay, on average $9 per mon+h while wvealthy po,inmers pay $20. This differential is low, considering that the fifth quintile households have an aggregate welfare more than 9 times that of 4o+ qu-9n44l households. A very lrar pre.',ag of householAd 2)AO% do not pay anything fr, the w er that they consume. This is double the equivalent percentage in AMSS and Tegucigalpa. 3.6 The Halcrow Study reports that the present tariff structure charges an average of $0.32 per cubic meier regardless of consumption levels and wiut no fixed charge. TIhe study proposes the following changes: (i) a $3.50 fixed charge per month; (ii) tariffs per cubic meter that increase as consumption '9 Halcrow, 1998. 67 ranges increase, with an average $0.16 per cubic meter; (iii) a $0.5 surcharge for sanitation; (iv) a $0.15 surcharge for waste water treatrnent; and (v) a govermnent subsidy to the lowest income population. Another problem reported in the Halcrow study is the high volume of unaccounted for water, which was at 28% in 1997 in the PanamA Metropolitan Area and increased to 35% in 1998. Table 3.1. Water indicators by household consumption quintiles in PCSM, 1997 | Characteristic ; - -' Ql -Q27| Q37K - |Q TOtal, Access: 1 9 1 I 1 fl - -%hhlds with access to IDAAN | 88 1198 1 98|10 | 019l -% hhlds with access to private operator 16 II 12 10 10 12 % hhlds with access to private well I 0 0 0 0 9 -I% nnids wit access to stnanpipe 4 , 1 O O I I - % with less than 8 hours 15 10 9 4 2 8 I% G with less thRn 24~ Ior 34 2: 20 !4 ?: 208 I ~ ~ ~ ~ ~ ~ ~ ~ ~~ 94~~~~~~~~I 'IR IA I 7 I % w,ho -dr,i_nk fromnw,ate_r_IDAA Nonlv) without boiling: 94 196 94 195 193 194 1 | Monthly payment (dollars). All'sources 19 |15 15 16 120 116 I I % who does ndt pay 54 24 1 1 6 5 20 -% whose payment is included in rent 8 13 21 18 21 16 Source: PanamA ENV, 1997. 3.7 A very low percentage of the poorest households have a sanitary facility inside the house (38%). The majority of the poor have to use latrines (53%) and other options out of the property (9%). These numbers stand in contrast with the situation in the fifth quintile where 97%'of the households have sanitary facilities inside the house (table 3.2). A total of 7% of the poorest households admit disposing of their waste waters by throwing them in the backyard, street, or river. Therefore, contrary to intuition, service deficits among the poor are quite high in Panamra City metro area. In fact, IDAAN's engineers say that there has been little investment in sanitation during the past fifteen years. The Halcrow study estimates that investments in the order of $476 million will be needed to keep up with population growth over the next ten years, and to bring national sanitation coverage up to 75%. Table 3.2. Indicators on sanitation of waste waters by household consumption quintile in PCSM, 1997 Characteristic -1, QF'I,'' i ' -QI |. 2 Q3 Q4 J|QS I Total - Place where hhld members urinate/defecate: - % having sanitary facility inside the houseI I II II -% having sanitary facility or latrine in backyard 38 64 79 89 97 74 |-%urinatingor defecating out of the property 53 131 |18 9 |2 I Method to dispose of waste waters (°0): O/ ---saijr-lijoncedoubis e ---- 40A AA IC 5|83|9 |7 -%usingsanitaryfacilityconnectedtoseptictank 8 15 1 1 7 12 I iicinatrint ' I 46 120 1!0 1 6 1 1 1 7 1 I -%using backyard, street, river, etc 7 2 0 0 0 2 |-%usingsharedsanitaryservice |24 124 15 11 |3 15 I Souce: Panami ENV, 1997. 68 B. Electricity 3.8 The institutional setting for electricity provision in Panamn is similar to that of El Salvador, with the service managed by two private sector concessions since 1997. EDEMET-EDECHI operates in the areas of Panama's Metropolitan Region, the western provinces, and in Chiriqui, covering between them 70% of the urban population. The remaining 30% is served by ELECTRA. Rural areas are covered through the Office of Rural Electrification, mainly funded by the social fund, FIS, which supports an average of 20 new projects each year in self-sustaining energy provision. 3.9 EDEMET-EDECHI states that no coverage data was collected prior to the concession. The persons interviewed believe that coverage is close to 100% in the urban centers but suspect that informal settlements in Arraijan, Tocumen and parts of the reverted territories do not have electricity. They also mention areas such as the Zona Roja, Curundu and Chorillo in Panama City Metropolitan Area which currently have illegal connections to the main grid. 3.10 Service quality problems exist in certain neighborhoods identified within Panamai City Metropolitan Area as "barrios carenciados". These are mostly apartment complexes where wiring is overloaded, inadequate and/or in serious need of repair. EDEMET-EDECHI has a program in action to "regularize" service in Curundu. They estimate that some 1,000 families are covered by the program, which is 80% of the neighborhood's population. If the program is successful they plan to expand it to Chorrillo, Barrazas, and Santa Cruz. 3.11 Tariffs are divided in three categories depending on the electric voltage. In each category there are two groups of consumption: less and more than 100 Kwh. For each category and group there is a fixed charge and a variable tariff per Kwh. The companies state that these tariffs cover 100% of operational cost. The ENV results show that a high percentage of the population does not pay, in total 15% (table 3.3). Among the poorest, this percentage goes up to 44%. These numbers are much higher than their equivalent in AMSS and Tegucigalpa, and, along with the eauivalent result in water, point at a possible paternalism in the provision of public services. Payment per month goes from $16 to $59 across quintiles, with consumption of electricitv going from 140 to 388 Kwh. The deduced averaze tariff is S0.14/Kwh. with little variation across quintiles, which means that the poor pay, on average, as much per Kwh than the wealthy. Table 3.3. Electricitv indicators hy household consumpntin qnintiles in PCs;M; 1997 I 'hnrn,,ctenetic T 7i. I f7) 5 I -:F ~1 . J I. 'I Tta I -% households with electricity in house 93 98 99 99 100 98 -Pavment ner monthi (doll",s 16 23 29 35 159 I's Do not pay 44 19 8 4 2 1 5 -Consuption (Kwh) 140 19 262 255 388 270 |-Deducedtariff(dollars/Kwh) 10.15 10.13 |0.13 10.15 0.14 10.14 1 Source: Panama ENV, 1997. C. Solid waste collection 3.12 The institutional setting for solid waste collection has been under reform in the past two years. The Direction of Urban Sanitation (DIMA) is in charge of garbage collection in most urban areas of Panami. It is undergoing a major transformation as a result of Law No. 41 enacted in August, 1999. This law calls for the creation of three Municipal Departments of Urban Sanitation in the municipalities 69 formerly attended by DIMA (Panamni City, San Miguelito and Col6n) and for the devolution of DIMA's assets and operators. Thus far the decentralization has been working successfully, although the Department of Urban Sanitation in Panama City continues to give assistance to its counterpart in San Miguelito. The municipal departments are further decentralized insofar as they link with local sanitation coordinators on the boards of each of the neighborhoods which make up the municipalities. Two of the main solid waste collection programs in Panama City have been street cleanliness and upgrading of the collection vehicles. 3.13 One of the main problems faced in Panama City metro area regarding solid waste is the handling of hazardous waste and waste from hospitals. A study prepared for the Ministry of Economy and Finance proposes the creation of a legislative and regulatory framework to deal with these special wastes, and the participation of the private sector in their collection and disposition. Another problem is the landfill of Cerro Patacon, the only facility serving Panama City metro area and scheduled to close in 2005. The landfill is operated inefficiently and is insufficient for the amount of solid waste produced in the area. One of the main problems is that the final layer covering the :waste is too thin and does not control gas emissions properly. This situation caused a massive fire in January of 1998, with fumes covering the city during three days. Since DIMA"s decentralization, Panama City has invested resources in modernizing the technical operation of Cerro Patac6n. 3.14 Private garbage collection and disposal companies work along side, in special niches and in competition with the municipal companies. An estimated 40% of the total garbage produced, including residential, industrial and commercial waste, is collected by private companies in Panama City Metropolitan Area, a percentage which increases in the peripheral settlements to 100% in Chilibre and to 50% in Pacora. In Colon private participation in the sector covers 48%. The duty free zone is entirely serviced by private waste disposal companies. Outside of DIMA's areas private participation is still higher, reaching 90% in Arraijan and 73% in La Chorrera. 3.15 The ENV results show that most of the residential collection in PCSM is still covered by DIMA (92%). although a large percentage of the poorest households are not: 20%, and many end up throwing their waste in lots, rivers, backyards, or burning it (18%). These indicators show that, although the overall coverage indicator is higher in Panama City and San Miguelito than in AMSS and Tegucigalpa, the situation of the poorest households is just as bad (table 3.4). Table 3.4. Solid waste collection service indicators by household consumption quintiles in PCSM, 1997 [.Characteristic Q2 l Q3 1;Q4 |lQ5 I Total ' I Service nrovider: l lI I - % having door to door municipal collection 80 90 93 96 99 92 - % relying on private collectors 21 2 1 1 O 1 I -%who throw-in lots, rivers, ravines, backyard or burn 18 7 6 13 10 7 Source: PanamA ENV, 1997. 70 4. PUBLIC TRANSPORT 4.1 As in many other cities in Central America, public transport in Panama City is provided entirely by the private sector. Relative to Tegucigaipa and San Salvador, the public transport system in Panama City provides a higher level of service, but accounts for a smaller proportion (47%) of total trips. The lower share of public transport reflects, perhaps, the higher income levels in Panama City. Unlike in Honduras and El Salvador, the Panamanian government does not provide subsidies to the private operators of public transportation services. Although the city has several modes of public transport - regular buses, minibuses, chtvas, SACA buses, suburban buses and taxis - this chapter focuses on the regular buses and the system within which they operate. It also briefly outlines the government's interest in and proposals for a system of mass transit. A. Institutional setting 4.2 Prior to 1999, three agencies were involved in different aspects of public transportation. The Ministry of Public Works (MOP) was responsible for the physical works and traffic management. The Directorate of Traffic Police (also referred to as the Directorate of Transport), under the Ministry of Government and Justice (MGJ), was responsible for issuing and administering the permits to bus owners to provide public transportation services. As the ministry in charge of both the traffic police and the police, the MGJ had overall responsibility for administration and enforcement of the permits. 4.3 In 1999, the government created a new agency, ATIT (Autoridad de Transito y Transporte Terrestre), combining the transport functions of the MOP and the transport administration functions of the MGJ. Apart from the traffic police functions which remain with the MGJ, the ATTT has full responsibility for managing and regulating the provision of public transportation. It is an autonomous agency with a staff of about 600 people of which 300 are in Panama City. Its major roles are planning and establishing rules and regulations for transportation, and it has two main functional units, planning, and operations, which focuses on traffic management and administration of permits. With respect to transportation investments, ATTT is responsible for deciding on their nature, scale and location and MOP is responsible for construction and implementation of the requisite physical works. In reality, due to ATIT's capacity constraints, MOP continues to decide on and implement all major investment projects. Another outcome of the current capacity constraints at ATTT is that MOP - and not ATTT - is managing the on-going studies regarding the feasibility of and options for a mass transit system for the city. B. Provinwin of npuhlic tranpnnrt 4.4 The niphli hbu seruire in PanamA Crity iS based on a system. of permits or quota grted by +te government to a bus owner to operate on a particular route. The government has not been issuing many nevpemits rpcr'.tlu anti there is &n nofca o,.l,kot v;rf,- em =k., th pr.ce~ r-.g is 4,:e to b * ws...J - * ~fl~t&LAflfl*1* fb WIWUI Fl jw `1 (.I5~ 13 a3L1iUQLU LU UR, $5,000-15,000, depending on the route. The bus owners usually rent out their fleet to operators or drivers "at a ,f;-Ae .an -Ad -pn da-h t, y - about $507n pe; day. T.he Ad.-.ve anA his assistant pay- for I L 1~~ lU_. "& - rIp.'. '.1 J * 4,11U413G PU . 1UJ.-V F U JL UUy. I 1111 III 1VIJ1 U LU Z, abbR3IWUL 4I IUI the fuel and retain the fares that they collect and the owner is responsible for insurance, maintenance and LU.&V3. hi syte r3Le1ul p'e...U sl LvuLl 1)1 UUI, s1iila.J L' thosek il ViLIUL WWI Uas I egucaigalipa aiiu anW Salvador. Specifically, each bus operates as an independent business run by the driver and an assistant wuring vo a shoJLIL tLUI gVal of 1LaUiIigL1Z paJsVe1nrsV1b andU fUUa e cVULIVU15 per uIp. iii compimg for passengers, drivers tend to disregard traffic rules and often compromise passenger safety. At a broader level, the liki among costs, profits, and service quality is severed. Having lost control over costs and revenues, owners have little incentive to make significant investments in maintenance and in improving service q-uatity. Neeverthehss, as tue discussion below thicates, Ene public utansport system in Panama city works significantly better than those in Tegucigalpa and San Salvador. 71 4t.j wn uJh sugsaU-side, u.rIVI aMC I,J54t. registuer Ubuse UL whichi 1,JUJ LUC iL UoIVUeLrU.i. 11IVNC UUbus operate on 40 routes within the city and the average route length is about 40 Km.20 The service frequency ranges ']ILUm 310 vehicles per ho-ur and I a 1veges aUb-t I VvUhic:ab pr h[uri, WichaI lb re:afive'yV high. Given the large number of buses per route and high frequency, waiting times are short - on average 12 muin-utes. apecifmhicy, UlW WiLU'ig tlillb UiaUUL U iilWUtWS OD on 70 38 i oth ro-utes, 12 minutzes on 36%70 anu 17 minutes on 28% of the routes. These data indicate that the service level is rather high on most routes in the city. 4.6 Data on bus operations indicate that on 85% of the routes the buses make 5-7 roundtrips per bus per day. For the city as a whole, the operators manage to make 6 round-trips per bus per day and average about 239 km per bus per day. The average usage per bus in terms of distance traveled is almost twice as high as that in Tegucigalpa and compares well with the rule of thumb that buses in developing countries should cover about 200-250 km per day. 4.7 On the demand-side the Renardet study (1999) estimates that there are 358,943 trips in the morning peak hour of which 47% (168,676 trips) are on public transport and 31% are on private cars.22 Of the total trips on public transport, buses account for 80%, taxis 9% and SACA buses 6%. In other words, regular buses account for 37% (134,467 trips) of all trips during the morning peak hour. 4.8 The travel volume in Panama City is estimated at about 3 million passenger km per day. Ten routes account for 43% of the total passenger km (1.3 million passenger per km), 51 % of the total vehicle- km and 80% of the total passenger-km per vehicle-hour in the city. In other words, the travel volume is concentrated in a handful of corridors in the city. The main reasons for this concentration are that commercial activities are located in these corridors and that,they serve as principal access routes for certain peripheral neighborhoods. 4.9 Information from a user survey, administered by a local newspaper, supports the notion that public transportation service in Panama city is at least satisfactory (and, thereby, better than most other cities in the region). Of the 1,023 bus users that participated in the survey, 20% said that they were dissatisfied with the public transport service, 24% said that they were somewhat satisfied and the remaining 54% said that they were either satisfied or highly satisfied with the service."3 4.10 The government is trying to further improve the operation of the existing public transportation system. Recognizing that the private sector can play an important role in operating terminals and routes, it has already issued a law allowing all routes and bus terminals to be operated as concessions by private operators. To facilitate implementation of this law and minimize adverse impacts on and opposition from existing bus owners and operators, the government is trying to incorporate them into the new system. Specifically, it is encouraging individual bus and permit operators to organize themselves into larger businesses that bid for route concessions and operate each route more systematically. The idea is to create competition for the market and among different route operators within-the market, but to limit the competition on a given route. 20 The data on supply and estimates for demand are drawn from the Renardet study (1999). This study estimates the supply using data from field studies, and for demand estimates it relies on simulation results from the TRANUS model. 21 About 30% of the routes (12) have a service frequency of 3 vehicles/hour, indicating that the level of service is rather good. - Renardet, 1999. 23 Article in local newspaper on May 23, 2000. 72 4.11 According to an association of bus owners (Camara Nacional de Transporte), individual operators are adeady organizedu IuLU uompaines t nere am jq Ur'gj U irlinus Il rPanauila CtIy aUnU aboUL 150 HI the country as a whole. The largest of the 74 companies operating in the city is a syndicate of 120 bus owners anu' miie smai;esi is comprisec oi i2 owners. Inu next step for umese firns is to suart uiuumg anu competing for route concessions, when the government puts them on the market, and to learn to operate tneir routes as one larger business enterprise. 4.12 With respect to physical infrastructure such as bus stops and terminals, Panama City is significantly better off than other cities in the region. The Renardet study (1999) recommends the foliowing improvements: (a) upgrading of existing terninals and creation of new terminals on the periphery to serve as transfer points for passengers from suburban to city buses, primarily to help reduce the number of buses going through the city center, (b) moving toward a uniform design of bus stops and bus shelters; and (c) introduction of a modem information system, especially at bus stops, to assist users in planning and completing their trips. Renardet recommends that the new terminals be financed, built and operated by the private sector under concession from the government. Regarding bus-stop improvements, Renardet suggests that they can be either managed entirely by the government or contracted out to the private sector. 4.13 The Renardet study also strongly recommends the creation of exclusive or dedicated lanes for public transportation and the February 1999 draft report develops, in detail, the idea, design, and options for piloting the concept of dedicated lanes in one major transport corridor in the city. The government is considering the proposal, along with results from the study on mass transit options for the city. 4.14 The on-going mass transit study, financed by the French Government and managed by the MOP, has five phases. In May 2000, the study was in the first phase which focuses on corridor selection. Two corridors had been identified and the next phase, focusing on alternative technologies, was commencing. The study team envisages a system of street cars with low platforms, running on dedicated lanes in major corridors and supported by a system of feeder bus services. The idea is to grant a concession to a private operator who can charge tariffs designed to cover costs, recognizing that for certain sections the government may need to step in with subsidies. 4.15 The fare for regular bus service is established by the government and the standard fare is $0.15 per passenger per trip. Students, children (8 years or less), and senior citizens pay a discounted fare of $0.10 per trip. Fares are higher for express, suburban and luxury bus services ($0.40-0.75 for certain suburban routes, $0.60-70 for air-conditioned buses, $1.50-1.80 on the two toll roads etc.). For regular city bus service, the tariff does not vary with distance and is not based on actual operating costs. Bus owners point out that the fare has not been revised for several years but their costs have been rising over the same period. According to the bus owners, a key problem is their lack of access to finance at reasonable costs; they claim to be paying interest rates of 15-24%. 73 Annex 1 Survey methodology The study combines three sources of information: (i) a specialized household survey tailored for this study; (ii) interviews with selected agencies, communities, and enterprises related to the issues under study; and (iii) a review of the existing bibliography. This annex summarizes the survey methodology. A. Househoid survey .. huseo s-ey was. IVOA5UeA UsU. f LuUy ad w apliU Ue In VrU%,LOUpa (2 hIouse UVlds)U0I? and Metropolitan San Salvador (1,426 households) in October - November 1999. Two earthquakes hit El Salvador in January and Fehbmr f 20f0- hbnt du e tn the timing nf the qnrvtv.v the effperkt nf these diQaQters were nnt rantiuired The survey was carried out by the Costa Rican firm Unimer. Interviewers working in Metro San Salvador and in Tegucizalpa were trained at Unimer's office in San Salvador to ensure consistency in the way of selecting households, asking questions, and coding answers. Pilot surveys were carried out in San Salvador in late September/2000. Field work took place concurrently in the two cities. The questionnaire, designed by team members and counterparts, has 10 modules: identification of the household and the interviewee, housingistreet observations, neighborhood conditions, housing conditions, water, sanitation and drainage, solid waste collection, electricity, transport, characteristics of household members, and expenses and unswupuoun (-reUf t Aniu nx). The srveysare bsed o shotfieAmuli4t.~,e ~ swples f houehols. Census segmnts ser-veedasth primary sampling unit. Each census segment is classified by socio-economic level: bajo marginal, medio bajo, medio, and medio alto. These socio-economic levels constitute the strata. In a first stave all the census segments were grouped by their corresponding socio-economic stratum. Within each stratum census segments are selected in proportion to their size, making sure that the number of households that they represent correspond to the proportional share of each stratum in the city (see table below). In a second stage, households were selected at random within each primary sampling unit. Data weighting compensates for discrepancies between the proportional mix of the strata actually surveyed and their estimated share of each city's population. In each household selected, only adults with ages 18 years and above, and with good knowledge of household issues, were interviewed. One limitation of the San Salvador and Tegucigalpa surveys is that they included only those areas defined as LU'anU Uy stLaI.Uical 4nVc:,UesI. Uin I* reJe.UvV IPULUUes. IUIZ meaflI1 Ui. mUUos UoL UiV neiLlrLPIUUUu VIs edU are consolidated and relatively well connected to the city's mainstream institutions and infrastructure. Households locatetd in the pPri-uirhan area, wmev- nnt ine-IndeA in the Qamnlpe anA there.fnre their ch terktire cannnt he inferred here. Presumably peri-urban areas disproportionately contain migrants involved in agricultural activities and whose connection to the city is precarious. To be consistent, in the case of Panama, the selected sample was refined to include only urban areas. In the case of Panama City we used data from the 1997 ENV. The ENV covers the entire country and is representative in several areas, including the urban zones of Panama City (Distrito 9) and San Miguelito (Distrito 7), corresponding to the Panama Province. There are 1,411 observations with complete data. It is important to keep in mind that the Panama survey has a different structure and that interviewers went through a different training, making strict comparisons impossible. Pius there is the difference in time. Nevertheless some trends can be easily identified and compared to their equivalents in Metro San Salvador and Tegucigalpa. 74 Table 1. Household survey: sample distribution San Salvador and Tegucigaipa i' ouse,olds - OZh -4^ classification. l, in iast census insample'l S>.Qn Salvado r t^e nc ic!992Q)) Middle/high 15% 183 (12.8%) Middle 37% 438 (30.7%) I Middle low 40% 503 (35.3%) Very low 8% 302 (21.2%) Total San Salvador l 1,426 Tegucigalpa1/ I / miaoue/nign /.4I/o iz (Y 1--/°) Middle 20.6% 350 (29%) kX:AAI_.I,.-. I 2'70/ I 2 ~CA (llOL I IvIIUUJL~,1uW aI I I -..,, k~ Ill) Very low 15% 180 (15%) [Total Tegucigalpa l l 1,200 j Source: Author's compilation, 2001. 1/ Estimations using census 1986 and household surveys 1997 B. Welfare measure To analyze the poor's access to urban services, it is first necessary to establish who are the poor. To that end, a wellf-o- m^.eas.ure wa s &U ThereC U is n1o pX.Ict fagifre to mesUmt fWel!f-Lr., utb.i:he -l vor.ld B uses e,szUt-r income or aggregate consumption. For this study it was decided to use aggregate consumption as the overall measure of welfAre considering that: (i) household heads cancider income a more pr vate item and do not feel at ease sharing this information; (ii) high income households deliberately underestimate their income figures; (iii) where there is a large informal sector, as is the case here, household heads have a hard time distinguishing the household income versus the business income; and (iv) consumption provides a more continuous measure of welfare than does income, because consumption is not subject to abrupt changes in the short run. The measurement of poverty per se was not the objective of this study. Rather, the goal was to analyze the relationship between poverty and access to basic services. Thus, the consumption aggregate is a very simplified version of LSMS's consumption aggregates. We did not attempt to determine poverty lines based on food baskets, but simply ranked households according to their welfare levels. in that spirit, the resulis are presenied by consumption quintiles, rather than by poverty groups. Only for reference did we include the poverty lines used by eachu co mutu a+ - hisU'cal agency, in eacU case expJla mngthe pit-et. L +SUit they use. C. Construction of the consumption aggregate The specific components of the consumption aggregate are: Housing consumption value * Value of the house use Monthly rents (q iv.3.) were used directly for people renting. In all other cases (property owners, informal tenants, and people under leasehold), rents were imputed. To do this, a multiple regression was estimated using the renters" data (q iv.2 =1). The results of the regressions in AMSS and Tegucigalpa are shown below. - AMSS: Ln (Rent)= 4.4 + 0.009Y + 0.663NSE + 0.040J + 0.133 HE + 0.139CC 75 Std errors: (0.014) (0.048) (0.017) (0.039) (0.061) N=583 F= 189.66 Adj R2= 0.618 Where: Rent= Monthly rent as renorted by renter- Y= Reported monthly income NSE= Socio-economic level of census block where house is located OJ= Household head occupation HE= Number of bedrooms used exclusively for sleeping CC= Combination of the following variables: type of street, street surface, and house external materials - Tegucigalpa: Ln (Rent)= 4.6 + 0.124Y + 0.227NSE - 0.058AJV + 0.297D + 0.587T + 0.573 TV + 0.288 LV Stds:{0.24) (IM28 (0.5? (0.008 (t04 (0!8 (.9)n0!3 + 0.075YT (0.016) N= 297 F= 49.7 Adi R2= 0.568 Where: AN= Years that the household has lived in the house D= Place where family members shower T= Number of telephones TV= Ownership of a television LV= Ownership of a laundry machine YT= Income * Number of telephones *Housing services Incl1ude LAVuuL1y pay...er.t for: water W umpuu n (q V.3 uu q V.4t) g&ba UgeV UdLJ spossl fe(4 Vi. l), electricity (q vii.10), and other services (q vii.13). Monthly rents and housing services are added up and trnncfnrnmed intn anniial pier ennita vaIi. e Health Includes monthly payment for health care (q ix.4) and sporadic hospitalization expenditures (q x.2c.13). Each figure is transformed separately into annual per capita values. Education includes: payment of monthly school tuition fees (q x.2b.9), uniforms, shoes, books and other items needed for school (q x.2b.10) and annual school tuition fees (q x.2c.12). Each figure is transformed separately inito annual per capita -values. 11 e,iSpOL L Tncludes mnintpnirn.p nfovehi-,leq tn viii 7h %nd Pynde ncic in mqc tranIsit tirkptq in v . PA ThP lsttpr value needs to be multiplied by two to include a round trip and by the weekly frequency of the trip (q v.5f). School related triDs are adiusted to account for only 8.5 months per year. Each figure is transformed separately into annual per capita values. Durable goods For each article (i.e. Phones), the average age is determined using all the households (q x. 1. Id). The average age is multiplied by two to get an estimate of the expected life span of the item (ExpLife). 76 Then, for each item in each household, the reported article age (q x. 1. Id) is subtracted from the expected life span (ExpLife) to get the expected remaining life (RemLife). Finally the estimated value of each item in each household (q x. 1. lc) is divided by the expected remaining life (RemLife) to get the one year use value estimate for each item in each household. Tne final steps are to add the one year use value of all durable goods and to divide the result by the number of household members. Food consumption Includes food consumed outside the house, in restaurants and cafeterias (q x.2a. 1) and food acquired in markets and consumed inside the house (a x.2a.2). Weeklv exnenses are transformed into vearly expenses and then divided by the number of household members. Other The rest of the variables for the welfare measure are -in q x.2a.3, questions one to eight in q x.2b, and questions one to eleven in q x.2c. Each figure is transformed separately into annual per capita values. The welfare measure is the sum of all the categories described above. Since the data was collected in a short period of time and in a limited geographical area, no adjustments for geographical price differential or cnange in the purchasing power over time were made. D Datsk reliabilitv Graphs, cross-tabulations, correlations, linear regressions. and logistic regressions yielded results that consistently conformed to the hypothesized relations among variables. Obvious data errors were rare (e.g., two or three children listed as household heads) and were corrected by Unimer. The relationship between the per capita consumption-welfare measure and declared household income (variable "PR") was positive-curvilinear for both San Salvador and Tegucigalpa. So, too, was the relationship between the same welfare measure and the sample-stratitying variable "anticipated socioeconomic level" ("NSE A"). Using Stata, ten random 50% split-samples were taken to assess tme reliaDillty oI the per capita-weliare measure tor both the San Salvador and Tegucigalpa samples. The results were deemed quite acceptable. Also using Stata for UbUUI UIe Sar, GiUvaIUU I d1r CUFJ Te.3UUjJI cigL3UalIp sampl,Ioo UI L&VV Iof 20LILI.UII1j we ,-e compued Lfo memea of the per capita consumption-welfare measure, as well as for the measure controlling for each of the four stratifying socioeconomic 1evek_ The renorted hiaq for the crnti me^n of the welfre me^sqire in enrh ar.ninle (i e the difference between the observed mean and the bootstrapped mean) never exceed 0.9 or -0.9; the boostrapped standard errors were always slightly less than the observed standard error. For the welfare-measure controlling for the stratifying variable's four levels, only in the case of the smallest subsample, the medio alto households, did the bias exceed -1.0 (-2.8 for San Salvador, -1.3 for Tegucigalpa). For these subsamples, the difference between the observed and bootstrapped standard errors never exceeded -.55 or .55. The bootstrap results would seem to indicate that the data are quite reliable. E. Summary statistics Here are sumaly staiYstics of Ute we:fUre measur URat we used in uie wtree c.iWLes u-UUi[ sLudy. iTese measures arm in dollars and have not been corrected by purchasing power parity indices. 77 Table 2. Welfare measure in the three cities *:'Tottal'consuimptio per capita per ear in dollars: '|l'Metrd San,Salvador- P| Tegucigalpa s I I Minimum 1 135 120 223 Maximum 9,342 7,478 23,324 | | Mean _ 2,085 1 919 3,547 1 Sources: World Bank, 2001 and Panama ENV, 1997. Table 3. Percentage households under different levels of consumption jindicaior Mer . oan 'aivaaior j Tegucigaipa 'j PCSM Under I dolar/capita/day 24 44 0.7 It Under2 do::a-,'capiw'day 1 14.1 I A I I A I | Under 3 dollars/capita/day 28.6 | 40.8 1 13.8 1 ;:Sow>A-es WoPArUld B-A}nNl 9nA i - F. mv 1; oo07. Table 4. ConsumDtion Datterns by household consumntion quintiles in AMSS. 2000 l Consumption'item . . . 1 I2 1Q3 l Q4 IQ5 I Total House payment and housing services (% of total) 26 251 27 j 28 27 27 Health (% of total) 4 5 5 6 8 6 Education (% of total) 5 5 5 I I 5 Transport (% of total) 6 6 7 7 7 7 Consumer durables (% of total) 3 3 5 5 6 5 Food (% of total) 48 46 42 36 30 36 iier (A/O of toaIU) 9 9 iu i2 i i3 Source:World Bank, 2001. Table 5. Consumption patterns by household consumption quintiles in Tegucigalpa, 2000 |Consumnption item < I ' Ql:''|Q2 |Q3 1Q4 1Q5 .I Total': House paYment and housing services (% of total) I 19 1 181 20. I 20 1 16 1 18 1 Health (% of total) I 6 6 6 12 8 Education (% of total) 3 4 6 7 6 6 Transport (% of total) 6 5 7 9 1 1 9 Consumer durables (% of total) 6 1 8 8 7 7 Food(% of total) 153 149 140 3 134 3 Other (% oftotal) 1 9 11 J13 14 114 113 1 Source: Worid Bank, 2001. Tabie 6. Consumption patterns by househoid consumption quintiles in PCSM, 1997 'Coummptio m -, s: - i. . ; X2- 1 3 I A ' I r 5 " I ' T% '%A[i I' House payment and housing services (% of total) 21 24 25 28 1 |31 | U-1A 1 o t/- . Af tmat1 1 ) A, A A I *|~~ '-,- .'-V, I 6 I-'. 1 6~ I~ 6 1 I ITransort (_/O of total) 6 168 16 8 167 Consumer durables (% of total) 12 3 3 44 I Food (% of total) 4 36 30 [Other(%oftotal) 16 16 19 19 16 | 8 Source: Panama ENV 1997. For comparison, similar statistics for Managua, Nicaragua are presented: 78 Table 6. Consumption patterns by household consumption quintiles in Managua, 1998 Consumption item I Ql I Q2 I Q3 I Q4 Q5 Total j House payment and housing services (% oftotal) 21 20 19 20 28 24 tieaith (% of tomi) 3 3 5 4 Education (% of total) 5 5 5 6 6 6 T {X 0/ .I A A c X 4iIlDUL I / Uk *U& IJ L Jal Consumer durables (% of total) 2 3 2 4 7 5 Food4 ( oAf tnts) 5 K7 55 55 K1 28 4 | Otier/(%/oftotal) |8 10 I 11 1 19 115 1 Source: Nicaraeua LSMS. 1998 79 Unimer R.IJBanco Mundial ANNEX 2 CIFJ TTIONARin No SETIEMBRE, 2000 Ie*uuAmn lTrhonn A& A m&Auipa f'gan*,.I Esui rbnde mFc Cent.- Area Metropolitana de San Salvador, El Salvador IDENTIFICACION Nombre del entrevistado: NSE Departamento: Municipio: A Zona: Segmento: Vivienda: |Telfono: Direcci6n: Buenos dins (tnrde-sInoches) Mi nombre es v renr%epntn a Unimpr Rl, una Pmnpresa dediesda a ha investigaci6n de mercados. Estamos baciendo una encuesta, para el Banco Mundial, sobre condiciones econ6micas y servicios piblicost en varias ciudades de Centroamerica. Los resultados del estudio serin utilizados pars definir mejores poIticas urbanas en cada ciudad. A.- SCREENER 'A. i Es usted parte de esia fainilia y vive usted en esta ' S1 i casa? NNo. 2 1 solicite hablar con alguien de la familia IA 1~ n L .. .l ca-.c I I A.2 En es'.a 0casi6n rIecesLo hablaUIaI.01e rjeIjvW/ja u 3L I encargado(a) de este hogar, LEs usted el jefe/jefa o No 2 | solicite hablar con el jefe/jefa o encargado(a) del Pencargadon(a) de PQtp hnosr? I I hnoar I~~ ~~~~~~~~~~~ ,I DE NO ESTAR EL JEFE/JEFA 0 ENCARGADO(A) DEL HOGAR ANOTE EN CUADRO DE CONTACTOS COMC PENDIENTE Si NO ESTA EL JEFE/JEFA 0 ENCARGADO (A)' DEL HOGAR, HAGA UNA CITA PARA REGRESAR: I. 'FECHA: ! tHOA: RESuLlTADO 2. FECHA: HORA: RESULTADO Entrevista efectiva: l.Si 2. No OSUSTITUCION 80 Su hogar ha sido seleccionado por sorteo para hacer una entrevista. Quisieramos pedirle que colabore con nosotros ddndonos sus resputas. 1a encoeta tomrna aproximadarnente 45 n;nuto. La M. 1ornaci6n que usted nos de y su nombre son absolutamente confidenciales, en cambio, los resultados de ls encuesta serin de aicceo pbiihlo. 81 Hora de inicio: c IT OT-tZRVACTON1S nr- LA VIVTWNDA q_T.PrC.TOWAnA (deben ser completadas por el encuestador sin necesidad de preguntar al encuestado) 1. Tipo de calle: [Camino o veredatpasaje/donde no pasan vehiculos 1 K ia con acceso vehicular | 2 2. Superficie de la calle: f Tierra 1 Pavimentada (asfalto, cemento, adoquinado o j 2 [similar) I 3. Tipo de material de lo que es la mayor parte de las paredes exteriores de la vivienda: Permanente (bloque, ladribo, concreto, adobe) 1 No permanente (cafia, lamina, de zinc o cart6n) j 2 TTT C,d, TrTTrDC TrCO TDE~ I TT% A IMT T A /'f'.T f%XTIr A LU. .%.AJllLJi IWINrE,.. LJE,1 V ili JtLA E.I lti.JAJ 1. L,En donde se formo su hogar actual? (LEEP) (RESPuESTA UMICA) r~~~~~~~~~~~~~~~~~~~~~~~~~~ Este municipio Ui Monic.inpo Aae AMSSq _n___ 02 | En otro municipio (anote tambien el departamento): | 03 | Otro pais: (Espe.) j_08 2. ,Cuantos aflos tiene el/la jefe de hogar de vivir en esta colonia? 3. LPorque se instai6 su hogar en esta colonia? (RMrusP S-S1A MULI IPLE) Vivian aqui familiaresiamigos suyos j_01 Disponibilidad de vivienda o terreno a precio 03 favorable 82 Otro: (Especi) I 08 4. En esta colonia, cual es el principal problema? (NO LEA) (RESPUESTA UNICA) Inseguridad/violencia | rCondireiones econ6micas/ Desempleo 02 Falta de confianza entre vecinos 03 Agua 04 |Aguas Servidas 05 Rmecoleecion de basfurjasl Pase a Pr. 6 85 5. ,CuaI es la raz6n principal por la cual subdividi6 el lote? (NO LEER. RESPUESTA UNICA) |Para darle un terreno a un hijo o familiar | 01 ] Para arrendar o venderle a otra familia 02 ILMICV, CUUI? * 0 UU | NS/NR r 1 I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __n _ _ 7 _ _ J_ -y 6. 4,Que tipos de documen-os de propiedad tiene de la viviendar (Iea iodus gu upciune. Puede escoger mds de umo) |Titulo o escntura registrado uj0 w Pase a Pr.5 EFeritura o tituio sin registrar 012 { Pase a Pr.8 Arrendamiento con promesa de venta 03 | Pase a Pr.8 Recibo de impuestos a la propiedad 04 1 Continuie con Pr.7 y luego pase a Pr.9 |Recibos de servicios |_05 10_Continue con Pr.7 y luego pase a Pr.9 ruinguno IU e | i.Vuntllluv uivn rr. / y iut;gu plSu ar 3 Otro. cual? 1 08 10 Continuie con Pr.7 v luego pase a Pr.9 NS/NR 99 7. , Por qud no tiene documento de propiedad? (NO LEER. RESPUESTA MULTIPLE) [No tiene dinero para comprar la propiedad 01__] |Todavia estA pagando a plazos | 02 1 1 |I0 Los tImites s o 3tP0F 11 . . . . . I. . di cle, cotss oa t.ep| ............. 3|P,AP- I No hace falta tener documento de propiedad 04 Otra, cual? | 08 1 [No sabe/No responde J99] ) 8. Z,A nombre de quien esta registrado et titulo de propiedad de esta vnienda o ei contrato de arrendamiento/alquiler con promesa de venta? (VO LEER, RESPUESTA UNICA) |Ambos c6nyuges [ 01 Jefe de hogar mujer 02 Jef dehogarhombre 0)3 1 f'u-- A-] I--- -- c 19 A20 INS/NR 99 86 9. ,Por cuanto cree que podria arrendar su .propiedad si decidiera arrendarla a otros? (Encuestador: verJicar arriendo con otros vecinos) 10. Para venirse a vivir aca, ustedes construyeron la casa o ya estaba construida? I La construy6 1 Ya estaba construida 2 J : PASE P12 DE LA MISMA SECCION NS/NR I 9 I 11. ;.C6mo ha sido construida esta vivienda? (LEA LAS OPCIONES) IToda en un afio 1 RHace cuAntos afios? | Construida parcialmente por varios aflos | 2 | Afos que tard6 la constrcci6n: !2. Cuinttos RfiA% seg4uidosQ tie-ne e! iefe. de siu hnanr de vivir en estn viviendn9 aflos 13. ,Cuantas habitaciones son utilizadas exclusivamente para dormir en esta vivienda? 14. ,En los uiltimos cinco afios, cual es la principal mejora o adici6n que hicieron a esta vivienda? (NO r vvDI~ jAmplilr area iunsIruiua I I Mejoras al interior de la vivienda I 0 I Mejoras al exterior ae a vivienda I wi |Mejoras al servicio sanitario J 04 Otra, cual? | 05 I Ninsuna I 00 IZ Pase a la Secci6n V rNS/NR 99 0 Pase a la Secci6n V 15. ,Cuanto gastaron en las mejoras o adiciones? Gast6: | 01 No sabe/No responde j 99 I 16. LDe d6nde obtuvieron el dinero para hacer la mejora o adici6n a la vivienda ? (PUEDE ESCOGER vsA DC r.EL TT.Tfl I Ahorrostrecursos propios 01 _ I Prestamo de insuitucion publica 02 I PrEstamo de un banco privado 03 87 Ayuda de familiares y/o ami os 04 Di:+ = s' , SJ...... -* pa&A o,K . ...... I |O t rIo, cui ll? __ __ __ __ ___V__ __ _ 08 _ _ _ _ _ _ _ _ _ |NS/NR | 99 1 V. AGUA, SANEAMIENTO Y DRENAJE 1. ,Podria mencionarme las principales fuentes que tienen en este hogar para proveerse de agua?. |I 1 lA 1B iC 1D [ 1E Tiempo |Hors de servicio | Toma ud de I Lava usted I Cocina Circule Fuente de agua I 1 .-- : -- ' 1- -- - -. -std ---n !us otLal que su al Ulu (para los esta *'ueuntew para co eaua us:edu co c6digos (Lea cada categora) ogar gasta c6digos 1 y2) beber? de esta esta agua? que (LacdIaeoi) P rp i nnmr c1 I (IT WRfupntp~9 ne ~ ~ ~ ~ ~ ~~~.ag e tellasi'usen PUEST___ St meIciO- I | agua a la |abarriles, | RESPUESTAS) | | Si 1 | I I I casa I botellas/semana I | s I Si No 2 cadra aloc6digos No pad d (para los 3 ) Si, sin hervir I NS/NR 9 |c6digos3a| Si, pero la hierve 2 Si, pero la purifica antes 3 I T A 01 | Agua por tuberia (servicio puiblico) 102 1 Agua por tuberia I | (Acueducto privado o | |comunitaro) _ |Publico 05 |Aguaenbotella/bolsa(no I I I . | |____ Ipurificada) | 06 | Pozo privado o compartido I7 I Pilaonliave nAhlinq | 08 | Agua embotellada |purificadaodemanantial | 88 2. Si recibe ei agua de ias iuenes;IL 0 A, pueue mostrarme ei recibo dei mes pasado ( o dei periodo mas reciente)? | Mostr6 el recibo No mostr6 el recibo 2 Encuestador: si el encuestado mostro el recibo, apunte la siguiente informacion con detalle. Sino, pfdale unicamente un estimado por mes de la cantidad apagar. 3. Datos del servicio de agua Fuente Fuente Cantida a pagar I Cĥantiwdad i Isum Ii_I Periodo cubierto por el recibo (meses) | | _ _ No tiene medidor u 00 1 00 1 4. Si recibe el agua de las fuentes 3 a 9, ,podria decirme cuanto gasta por mes? Fuente Fuente INV;amsero de __ um ___nnnidade _ien tin m__es _h_t____,__ ent Litros contenidos en cada unidad: Costo por unidad: 5. (Entrevistador: Pase la informacion de Pr. 1 de esta seccion para realizar los siguientespreguntas) Ahora le voy a hacer unas preguntas sobre c6mo obtuvieron el servicio de agua. (LEA CADA PREGUNTA Y LAS RESPUESTAS) 5A SB 5C | D 1 Circu- Fuente de a ZDesde hace cuinto cuenta su bopr | Desde que viven | ,C6mo se logrd el ICuinto tuvo que c I leos I con este servido? I ac. Lcuhnto I servido? (LEER) I apar por la co- fftiempo transcurri6 (VARIAS instalad6n? gos (LEA CADA -Menos de un aflo I antes de que RESPUESTAS) qu: "wFIVNTIE Ie It y 5- 2fanet men- MENCIONADAEN -Entre6y10aflos 3 I erid? Acci6n personal 01 don6P -Io aflos o mfis 4 Accion comunal 02 en -Ei sesrvicio ya exisua cuando ud. se tanosj Accion IPr.1 mudo aesta colonia 5 gubernamental 03 | - NS/NR g9 | | Urbanizador 04 I l | ~~~~~~~~~~~~~Otro privado 0 _ _ _ _ _ __ aiOtro, mm? 08_ _ | 01| Aguaportuberla(servicio | I I _ pu'elico) 02 Aguaportubera(Acueducto privado o comunitario) 03 r Cairo cist || Iptiblico 04 Cairo cistermaprivado 05 Aguaen botellaMbolsa (nW I Ipurfflicada) 89 06 |Pozoprivadoocompartido r .. | u r Piia o iiave pubilica 08 AgaembotelladAa o en bolsa _ .11 ruiiu UV de V LMuas._ _9 Otro, mma? 6. Ahora quisiera bacerle unas preguntas sobre actividades diarias que requieren el uso del ag!ua (LEER) | |Actividad | ZD6nde Ileva a cabo Is | Como dispone de las aguas servidas resultantes de| actividad? Ia actividad? Dentro de la vivienda ....harIe a TubuW b a conectada al alcantarillado municipal 01 cab .....on d l11A- aga eri En el ,nati.1 . I Tubera con.ec^ada al alcataillado muncialo 01rU.P. Fuera de la vivienda 3 Tuberla conectada a pozo septico 03 patio 0 Rioaago 06 Otro, cuil? 0S _ ~~~~~~~~~~~~~~NS/NR9 1 Ducharse 12|La-var ropa 13 Cocinar . L u i L a & r o P I I _ _ _ _ _ _ _ _ _ _ _ __-_ _I -_ _---_ __-_ _I adulirUfhc u -usteo su ia vivEnua Sanitario o letrina en el patio 1 2 Fuera de la propiedad 3 8. ZC6mo dispone de las aguas servidas resultantes de hacer sus necesidades? (LEER) (RF.VP[I.VTA MULTIPLE.) ISani&iocommimal conectadonc-on alcpantarilado municipal | 01 | Sanitario comunal conectado con alcantarillado privado o J 02 |comunitario ___ [Sanitario comunal conectado con pozo septico 03 I T A _| a "'uILa "I'll, Patio 05 | Calle | 06 Rio/Lago 07 Otro, cu&17 08 90 NS/NR 99 9. ,Comparten algunos de los servicios de su hogar con vecinos? (LFE LAS RESPUESTAS) No |Servicio | Comparten el servicio con vecinos? Nunca 1 A veces 2 S.empre 3 I Regadera 3_ Cocina' 4 1 Lavadero 10. .'W t.jeSee n 10. (Si .'ene Si fe,ma de sana 1mivn!o ver PAr8 codigos 01 a 04 conmiue vy lea !ndax lac nnciones. sino pase a Pr. 11): Con respecto a su sistema de saneamiento quisiera saber: I J 10A 10B [OC IOD Circule I Sistema Aflo en que Costo de | ,C6mo consiguieron el |Tiene ud los siguientes el fue adquisi- I servicio? (RESPUESTA I problemas? l Cqqueg° | | adquirido ci6n MULTIPLE) (RESPUESTA |corres |ll MULTIPLE) ponde Accifn personal 01 NS/NR 9 NSINR 9 Acci6n comunal... 02 Mal olor Oil NS/NR 9 NSINR 9 Acci6n mubemamental 03 Dmrnt>e due a&as scrvidas n Urbanizador 04 Moscas 03 Otro privado 05 Otro, cumi?. 08 1S. Saii i id Ninguno 00 1 Sanitario individual conectado ||con alcantarillado municipal 12 Sanitario individual conectado f. con alcantarillado privadoo |. |____ comunitario _ _ _ _|_. 3 | Sanitario individual conectado r I i co I °pozo septicoIIIII 4 Sanitario comunal conectado con alcantarillado municipal ____ _jIj __5 alSantarilacomunaiconecia d o I I alcantarillado local C con 0 z aniaro comunal conec'iaud con - - - I Pozo septico l I I I_I _ _ _ __ __ I _ __ii j j _ I _ __ _ 1i___ . 8 Otro, cuAl I _ I _ _ 91 11. Durante el iltimo aflo, su vivienda ha sufrido inundaciones? Regularmente cuando Ilueve 1 Soo udo hay JlluviCas JLU%,.es 2 No 3 i2. En esta colonia, durante ios utumos cinco anos na nahiao aanos senos a viviendas como resultado de: SI NO NS/NR I lnundaciones7 I I I 9 I Y I Derrumbes o deslaves? 1 2 9 VI. DESHECHOS SOLIDOS 1. ZC6mo elimina este hogar la mayor parte de la basura? (NO LEER) (RESPUESTA MULTIPLE) Servicio municipal que pasa por la casa (incluido servicio privado 01 Pago mensual: w:IOuuv1 iuO por_el ___i____ip__)_ Servicio municipal que recoge la basura en un botadero comunal | 02 |Pago mensual: Pagan a otras personas por botarla en otros sitios 03 Pago mensual: La botan en otros lotes o en rios/quebradas 04 La botan al patio IT a nmiman v/n Pntinrrsan Otro, cuid? 08 .2. Con qu frecuencia se elimina la basura de su vivienda con el m6todo escogido arriba? (NO r AG'D DAI.Dr& VCLrr A ZW I VIb Ur, u-.a vez pJ. orsemana IL1 Una vez por semana Una vez cada 2 o 3 semanas |_ 3_ | Una vez por mes Menos de una vez por mes I - 92 3. Por favor indiqueme si sU comunidad tiene los siguientes problemas. (LEER. Puede escoger mdis de una respuesta.) Montafias de basura sin recoger 01 I Moscas | 03 I Ratas 04 |Alto costo 05 L Ninguno 00 93 VIl. ELECTRICIDAD 1. ,Hay alumbrado pfiblico en la colonia? SI 1 NO | 2 |:PaseaPr. 3 2. ,Desde hace cuantos afios tienen alumbrado publico en la colonia? 99.NS/NR 3. ,Cuenta su hogar con electricidad? SI 1 | PaseaPr.5 INO , 2 :) Pa eaPr. 4 v luego a Pr 13 de la misma secci&n 4. -Por qu6 no? PMO LEER) I No AviQten rP-des en ha tcnlonia I ni Solia tener el servicio pero fue cortado por atraso en el pago 02 1PkSE A Pr.13 IOtro, cuD? 0Dr LA MISMA NS/NR 99 I SECCION 5. LDe d6nde obtiene la electricidad? (NO LEER) | Servicio de la compatiia electrica 1 01 I Vecinos | 02: | Conexi6n informal I 03 Otro, cual? 08_ | NS/NR__ 99 6. ,.MAm a menno rusintus hnrno nnr dia t-i:ne IP-6trid.}iag9 i7JflR.FFR) IMpnne lanPa hnrn 1 1 1 Una a dos horas 2 TrsIv a seis o &&VA Mas de seis horas __4_ | 7. ,Ha experimentado apagones en los ultimos 6 meses? I I- ~. I FRECUENCIA MENSUAL Si vi Con que frecuencia ai mes? INo 02 Otro (Especif) _ 08 NS/NR 99 94 8. Por favor indiqueme si tiene los siguientes problemas. (Lea cadafrase Puede escoger mds de una). [Se le ha dafiado alg(' aparato el&etrico por bajones de voltaje j 01 El voltaje es insuficiente para operar ciertos aparatos 02 f La intensidad de la luz es variable | 03 Otro, cual?: | 08 |Ninguno 00 9. Puede mostrarme el recibo de electricidad del mes pasado (o del periodo mas reciente)? Mostr el recibo 1 I No mostr6 el recibo 7 2 7 EnCj,wf.dnd..1r e! of on'up-inadn nmne.4 PI re!.ihn aninune la ewoidonto infarnrifin conn dpainoIp Nina p(daie ,unicamente an esfimado de la cantidad a pagar. 10. Datos del servicio de electricidad (ANOTE UNICAMENTE EL CARGO POR ELECTRICIDAD) Nurnero de cuenta: | 01 Cantidad a pagar: | 02 4 I C.L1UttU coInuli1iUn. 1_03_1 Periodo cubierto por el recibo: 04 ii. ,Que pasa si no paga la eiectricidad (Respuesta mwipiej I Le cortan el servicio _ _1 Le cobran una multa |_2 INada 1 3 I 12. Tiene usted un medidor del consumo de electricidad? [Encuestador: pida verlol Si y funciona bien I 1 Si, pero no funciona | 2 No | 3 | NS/NR 9 13. Otros Pastos mensuales en eneroia del hogar. (Circule los c6dihos de los aue mencwione v complete) |~~ ~~~~~~~~~~~~~~~ | Cuanto? I1.... Gastos en gas para cocinarI I I fr...+A, A +rnt. .nune flr nnna n AnlIflrWor (onlu,a olon+ rnrloxnAAAA o, nno' L ..A.Ja;aUAa i w1. n ".a ...&fl3J pa 1J%*IA J.. vflWflUf . \^.Z._ W U I 610 3 UJ}, tales como: querosen, baterias, lefia, etc |3...Gastos en telefonos (regular y celular) y beepers 4...Gastos en conecciones de cable (TV) e internet 95 VIII. TRANSPORTE 1. ,Alguien en el hogar posee un vehiculo (incluidos autom6viles, bicicletas, motocicletas, o cualquier otro medio que sirva para transportarse) ? SI 1 ? Continue |NO_ 2 _ Pase a Pr.3 de esta secci6n 2. ;.Podria damos informaci6n sobre los vehiculos que su familia posee? (Circule en la columna No. I para los que posea el hogar, ypregunte para cada uno de ellos Pr.2ay Pr.2b) I I 1 2A 2R Ir_ITcu A e # de vehiculos Gasto mensual por concepto del vehiculo en IBt:ircule Icleta> WIII9tIIV | queposee cuesti6n (gasolina y mantenimiento) I Bicicleta | 2 Vehiculo automotor j Ii 3 |Motocicleta 8 1Otro cuA?I?: I T 3. ,Utiliza alguien de su familija el bus puiblico? I SI i 1 Z PaseaPr. 5 INO 2 0 Continuie 4. ,Por que no? Escoja un mAximo de 2 respuestas. (NO LEER) (ANOTE LAS PRIMERAS 2 MENCIONES) I No es c6mordo 1 01 1 Toma mucho tiempo 02 ] Es muy caro 03 Es inseguro 04 No pasa mng, n no cerca detsu ril ieuda 05 Las rutas-no le sirven 06 Prefiere usar su vehiculo | 07 Otro, cuM? [ 08 96 5. ,Qud medio de transporte usa su familia pam Ilevar a cabo las siguientes actividades? (Encuestador: si mds de una persona trabaja, tome los datos de dos de estas personas, nada mas. Asim s,,-.o, s.1 1 T de ps t- I Prop6aito dd Modo prtmauto de Dinnscia riempo que tiempo que gasta CuAnto gssta en ZCuantas veces Modo .4.e .pre1.In1 p-f fd p,, I se-ad I e! di. tqnet aLO prG_ O Aml ^.od -ii deslino en ilegar _la'ito vebkulo end IDA) mes hace este transporte (utilizado Si COMBINA MAS DE minutes de embarque. sitio de vi4je? en combinaci6n con e. 1 ENTONCES Imhsrne (SOLO PARA EL modo ,mrn'i UNTE PARA EL TRANSPORTE (Encuestdor: (Respuesta multiple) PRUviERO) PRMIARIO) nunte siL a (Sien Pr.5a (Si en Pr- nor semana o Camina 01 Camina 01 | mendona los | mendona los (Solo nama bus, | Vmes BicicIeI 02 Bicicleta 02 c|diegs 1.2. 3 |cdi2s 1. 2. 3| minibus, tai | Vecuo Vehiculo uses a Pr.5E) pose a Pr.5E) SMg2n1riWg Pr.pio 03 Propio 03 icrobus 04 compardido 05 axi 06 Taarx d I I Taxwrid 06 BTGi a Bus re7ular 07 Bus reTaiar 07 i|Ot, I I I UOm,o,cual 08 1cu 08 | NS/NR °9 | _ | | | _ _NS/NR 99 I Trabajo | n|miimbro I 1 Nombre: 4 l l ll l l |miembro2: Nombre: r3 |Escuela/ univ-| rr |miembro I 4 |EscuclaAmiv- | micmbro 2 5 |Mfcaido | | (ndebacc I | |las omnpms) | I Nombre: I 6 |Seniciod | | Waud | |Nombre: 97 6. (Entregue tarjeta Pr.6) En su opini6n cuales de los.siguientes cambios ayudarian mAs a mejorar el sis.erma de utaLspore? Lscoja tur MaXIMO 3, en urder. (Ercuestadur.: ura, o Is e order. ue .iporturw,u. I c.aa: Iff1, ur,.rut , te 2ug,l.uu flM4a5 .,,.po,-rita, t, terucru mhs importante, 9 no sabe) Anote en orden de importancia I... .Reducir el tiempo de espera de los buses 2...Reducir la cantidad de gente en los buses 3...Agregar nuevas rutas de buses A RpAuAiur In tn Afa uA1 h,Uc 5. Mejorar la seguridad en los buses 6.. Tener buses mas nuevos y mejor mantenidos - | j8 ..Otro (Espec.) I. r I. MJIEMB-ROS DEL HIOGAR 1. Cuantas personas en total viven en esta vivienda (incluyendose U'd y las personas que estan tempoirimente ' ause zites) 2. Durante el ultimo aflo el numero de personas que viven en esta vivienda cambio? Aument6 1 ; Continue No cambi6 _ 2 [ PaseaPr.4 Disminuy6 3 | PaseaPr. 4 3. El crecimiento de su hogar se debe a: Naci6 un beb6 (o ins de uno) 1 Vinieronaurvivir ens ui hogar otas peronnasc A. 1 hec Lho a-L--n gasto en Q01..A A.urnt+ e! ZU!t:o- me ara i-. nfas Ae 16t hogar9 FSI~~~~ f ;Cuanto gasto9? |SI I _ _1 | NS/NR I 9 98 5. Ahora cuenteme sobre los miembros de su hogar (incluyendo a las personas que estan temporalmente [Ercuestador: comie7icecon el encuestado. L-uego uriOte lus demas perurnus que cunfurman el hogar, de mayor a menor edadypregunte) 5A 1C SE SF Paracada persona | No Nombre EDAD Estado civil Educad6n Ocupad6n principal responda 5G-SKK Yo Rad6n con el jefe (una sola) SH Sexo ~~~~~de familsiaI SG Casadoiunl6n libre Ninguna l QuhacerNs ddi hogar I Es de tiempo Estha Jefe de familia ...I... Primaria copleea 2 Estudia iod rbj opt4 sg Hombre IEsposo/a ....... 2 Vindo Prnmaria incompleta 3 Trabaj3 Mujer 2 H ijo ......... 3 A Secundaaa 41 juoiiado 4 rarnoo SiiS Hija,. 4 4 Divordado/ ISecundaria inwmpleta I Desempleado 5 empleador I No 2 No . Hermano . . . . S Separado Universitaria mcompleta 6 Nada 6 Empleado NS/NR 9 NS/NF nn,nmuass. U | v E un.vc:rsIwh.n vumaspte , as--anano I I Abuelo 7 Stero 4 PsPostgrado 8 w | Trabajaporsu Abuela . 8 ......cuenta 31 | Nieta 10..... _10 remuneraci6n 4 |Tio .... ........... NS/lM 9i | | | T,.,,,,,,,,,,,,,,, !2.. ...... .... |Sobim 13 1I I parentesc 16 con | encuestado . I . ~ l 7 d 1 _ _ _ __I I_ _ _ i_ _ _ _ I _ _ _ _ _ _ I _ _ _ _ _ _ I _ _ I _ _ I _ _ _ _ _ _ 1 _ _ _ 1 _ _ 1 _ _ _ 1 1 _ _ _ I _ _ _ 1 1 _ _ 1 1_ _ 6 I 1 1 1 1 I 1 11 _I1 1 . I I I I 1 I I9 99 V d- A C!Tf 'V 9"nTUCT TAIn %PAJrLY A £ J1 s WIQ VAPX 1. LTiene este hogar los siguientes articulos? (SI TIENE MAS DE UN ARTICULO DE CADA Y'rzn,fr DDr,'TrrATrrV DfnD elA n A YT7LT41 mv ET irn va rIflnn vIxr JLA A.I VA A1L MJ, JLIT ~A A. A U LAS %-I2".L' UII" "X M9.,1,ALf&3 MVY "'n"lAJdI r 1 1 _ | 111-__ A 6L.-L- TD ---- -- I %u J.A - I1 tiene? podrla venderlo boy artfculo en aflos? S I s 1 qi deddler l Ierln No 2 (Sl hay mds de , (SI hay mds de 1, 1 eo pregwzlne vor cr/unoen pregunte por c/uno) ! 1 Tel fono I -- I - _ I 2 Computador | 3 Televisi6n 4 Antena arab6lica _ _ _r_r Li____ ______ .. I 5 Camara de video 6 Cxnara de fotos _ 7 Horno _ 8 1 Hornomicroondas I 9 Refrigeradora 10 Lavadora . 11 Aire acondicionado 12 | Maquinadecoser | 13 l Plancha I 14 | Aspiradora|||| 15 j Radio,grabacora | | | _ 16 Carro/van/Camioneta | I | | 17 Motocicleta _ | K-I I a- 19 VHS _ _ _ _ _ _ electrodomdstico, | I[1- 1 1 i _ _. II 100 2. ,Cuanto gast6 este hogar en los siguientes rubros? 2A- GASTOS DEL HOGAR DE ULTIMA SEMANA No Tipo de gasto Gasto semanal I Alimentos y bebidas consumidos fuera del hogar, incluvendo refrigerion cnnwmitidn- en 1 tr-hbin v ipntneo educativos 2 Alimentos y bebidas adquiridos en tienda o supermercado y 1 I~ Iv consdo en l og so aLmen:osa y bebidas). I 3 Peri6dicos, telefono puiblico, correo, envio de fax, y otros gastos para comunicarse. 2B. GASTOS DEL HOGAR ULTIMO MES |No | Tipo de gasto | Gasto mensual I f No I Tipo de easto I Gasto mensual I Artfculos de aseo y Cuota mensual de colegios, funcionamiento de la casa: .yo institutos acad6micnq detergentes, jabones desinfectantes, cera, Escobas, cepillos, guantes, F6sforos, focos, bombillos 2 Artlculos de baflo y aseo 10 Uniformes, zapatos, uitiles y personal (pasta dientes, libros escolares desodorantes, perfmes,I III I _ I Cosmeticosetc) 3 Serv-ios~ para iacaa lavandera, chofer, jardinero, | T o,,oAn nlanrhaAnoceas costurero 4 | Libros, peri6dicos, revistas, subscripciones (no | |escolares) S Cortes de pelo, manicure, |__| masaje, gimnasio, clubes, etc | 6 Entradas a centros de recreaci6n ydiversi6n como | |cines, deportes, espectaculos| 7 Biber6n, pafiales y similar |8 Rifasyloterfas 101 2C-GASTOS DEL HOGAR ULTIMOS 12 MESES No Tipo de gasto Gasto anual | | No Tipo de gasto Gasto anual ~1j Prendas de vestir o telas 8 Servicios profesionales de (excluyendo uniformes) | j _j __abogado,_notario,_y_otros 1 1 1 ~~~~~~~~~~~~~servcios legales 2 j apatos y reparacion Ur 9 j Muitas, matncuia de vehicuio, zapatos I I licencia, seguro de autom6vil. 3 Artlculos para la casa: | [ 10 f Segurode accidente, incendio, 1 vajillas, ollas, trastos de cocina. ronadecama, d cortinas, colchones, manteles, hilo, adornos, I If1nrprne PtP 4 f Juguetes, articulos 11 | Matrimonios, funerales, fiestas deportivos, joyerla, etc. y regalos 5 Muebles y accesorios de 12 . Matrfculas escolares y cuotas | | comedor, sala, dormitoric anuales poreducacin 6 j Secadora, afeitadora 13 Hospitalizacion I electrica, onduladora 7 Hoteles, viajes,tours _ _ f _ _ _ 102 PA. Sexo | 1... Masculino ... Femenino P.D Y, ,cual es Su ocupacd6n ... que clase de trabajo desempefla para vivinr P.rI Y, cua; es la UWPuadUn UV its wperlo je.'e de te hogar ... es decdr que clase de trabajo desempefla pars vivir7 P.J. Cuentas con servicio dom6stico en esta casa? 1.S[ 0. No 9. NS/NR P.L En este hogar hay personas que estudian en dscuw;al 1 t SO. NoPA A PN v. NS,NR PASE A PN colegio o universidad? P.M Y van a escuela.colegio o universidad publica o I 1. Publica 2. Ambas 3. Privada privada? tr.N Aosdmra tomar vacactones con su familia L I . ntm u. No PASE A P.P Y. NSi/N rA;> A r.P P.0 Vacadona dentro o fuera del pals? 1. Dentro del Dals 2. Ambos 3.Fuera del pals P.P. Tiene vehiculo propio para ei uso de ia familia? i ... Si 0 ... NO Pase a P.R ... NSNR PaseaP.R P.Q De que aflo es el vehiculo parm uso familiar? Sl 1. Antes de 1990 TIENE VARIOS. PREGUNTE POR EL VEHICULO MAS RECIENTE EN CASO DE QUE TENGAN MAS 2. Do 1990 a 1995 3. De 1996 en adelante DE UNO____________ I-RK ue acuerao con esta taijeta, cuil es el ingreso total 1. Menos ae ˘2,5D0 t. ˘7,501 a 1i0,500 mensual de este hogar? MUESTRE LA 2. ˘2,501 a ˘3,500 7. ˘10,501 a ˘13,500 | TARJETAILEA LA USTA 3. ˘3,501 a ˘4,500 8. ˘13,501 a ˘15,000 | | 4. ˘4.501 a 05.500 9. Mis de d15.000 - | s5. ˘5,501 a ˘7,500 0. NS/NR |P.S Cuanmas perSonas viven en ee nogar...? |r | Fecha de le entrevista: Nombre del entrevistador: Firma: Supervisor de Campo: I I 1 Finma: HORA DE FINALIZACION: DURACION DE LA ENTREVISTA: Muchfsimas gracias por su colaboracidnl 103 Annex 3 Basic Service Indicators for Several Cities The following indicators are presented as a reference point. It must be clear'for the reader that these indicators come from different sources and years, and that in many cases their definitions vary, making strict comparisons impossible. In most cases the data available show coverage at city level and rarely is it discriminated by income group. Research by the World Bank shows that coverage of basic services in Latin America, although still deficient, is not the main issue. The most important problem lies in the quality of these services. Thus, many households might be connected to the services but receive it few hours per week. Cities |j Publicwater | Hygiene | 'Connectionto | Electricity |, Source I Year I 'connection1/ rnfacility i- ; public connection c)nne ,0 . t i house; .:sewerage',' (legaor Cities in the City Poor City Poor Poor City Poor AM4Z. I 92 0/ I 2°)0/0 RO/. 67%0/ 2R0/ I R 73% I 9%00/ 000/I Wnried n I 20fl00 1 I Teguciaalpa 877% ; ;1 2 7 99% 194% I orBldBank I2000 0 | Panama-City 197% | 88% | 74% | 38% | 70% 1 40% | 98% 1|93% | WorldBank 2000 | (Reference | cities B3ogota 99% 1 l 0 1 99°/° | 1 99%/0 VDA-NFE 3/ 1 1998 IIBelo 1 99% 1 1 1 1 85°>'o 1 1 a nr.A 1 I D~~~~1UY/ 10370IPE I VI I Horizonte | |Buenos Aires 79% 66% | | Aguas 1999 1 5/ 1 1 1 1 1 1 1 1 1 Arzentinas I | Cali 100% 100% | 85% | 73% 199% I 99% | 100% I 100% I World Bank 1 1999 | DANE (on 1998 sewerage) 9 |Caracas 98% 99% 98% |ESA 19971 i I I. I I IAC I I I onsutores I b-ulitMa IVY 10%7l 0% PA|19 I r.::at a I 64% I 59%/ OI I I 7AO/n 9010/n I ESA I !7 c fity I I I | |Consultores f | LaPaz % 59% 94% UNCHS 19961 Quito | 94% | I I | 93% | 1'100% I I UNCHS | 1996 | Riode 93% I I 94% I I I 1IPEA 1999 Janeiro I I 1 |SantaFe |87% | I |65% DIPOS- 2000| I_____ I____ I I_. I __I I _ _I I__ I APSF 6/ 11 104 ISaoPaulo 100% 91% I EA 1999 Notes: 1. Includes intermittent water service, exterior connections, and service for less than 24 hours) 2. - The poor are defned as the first auintile of aarepate consumption in the case of AMSS, Tegucigalpa, and Panama City. - The poor in Cali correspond to the first income quintile. - The poor in Caracas correspond to households in three slum areas: Cotiza, Petare Norte, and La Vega. - The poor in Guatemala City correspond to households in two slum areas: Mezquital and El Gran Mirador. 3. DAD=Colom.bia st.fistic-M d-pa-Ment. 4. Brazil's Instituto de Pesquisa Economica Aplicada 5. Only includes the coverage of the concession: Aguas Argentinas SA 6. Water concession for the city of Santa Fe, Argentina. 105 Annex 4 mnternationalAid in 1o n. USalvava.Or, ondu.ra3s, and P.a.nam- (by end of 2001) Table 1. El Salvador WORLD BANK PORTFOLIO Project Name Closing Loan Amount r Description Date Amount US Disbursed as l $ of: Secondary Education 2003-June 30 $58.0 M Feb.15,2001: The project aims to increase $12.98 M coverage of secondary education and build on the successes and new demands generated by the basic education reform process; and UPFd & k Q%ULU,%tAy VL erlUallL Lu UI V labor market to increase El Ralvadorle ommptitivenessc in th,e global market. Public Sector I2001-Aug. $24.0 M IFeb.15,2001: The PSM-TAL has four components: Modernization 31 $10.35 M (1) Institutional Restructuring (IR) and 'Debureaucratization; (2) Human Resources and Financial Mgmt.; (3) Privatization and Private Sector I | | Participation in the Provision of I l l l | Public.Services; and (4) Project T pCoordination. f Land Administration 2001-June 30 $50.0 M Feb. 15,2001:| The project would finance a six-year, l M program to (a) consouiiate, strengthen, and decentralize the CNR (b) acquire land data to regularize the nan I n2tifnlh11 li I rI,Iiqhn , uinnt ns%adetrP and(c)carry out project administration. The proiect would A cover all 14 departments of El l l I I . l ~~~~~~~~~~~~~Salvador. |Agricultural Sector 2001-Dec.31 1 $ M Oct. 15,2000: | Theprojecthastwocomponents: (1) Reform & $16.6 M reform and institutional development Investment I I I I at MAG and CENTA to finance I I l l § technical assistance, equipment, training, civil worKs and incremenial operating, and (2) agricultural rese-- *. anA LU. -omall jit. medium farmers to finance technical I ~ ~ ~ ~~I I I IsgssC,VhGeselimo I Ri-qtnrtP. vehideq pnninrnient training, civil works rehabilitation, Ilandincremental recurrentl L I__ _ _ _ _ _ _ _ _ _ [ _ _ _ _ _ _ _ _ I I__ _ _ _ _ _ I expenditures. IEnergy Sector I 2001-Dec.31 | $65.0 M IFeb. 15,2001: This project has 3 parts. Part A: Modernization $21.8 M Studies and Technical Assistance, I | which includes: (a)Energy Sector Restructuring. (b)Power Sector Restructuring. (c)Engineering Studies and Training. 106 1 T 1 1 Part B. Rehabilitation, Modernization and Expansion of Hydroelectric Plants. Part C. Modernization of CEL's Telecommunications and Information Competitiveness 1 2001-June 30 | $16.0 M Feb. 15, 2001: The project consists of three Enha nniment $945 M Inmnnnnt (i) a RiiBiness Environment component with four subcomponents; (ii) a Technological Capabilities component with three subcomponents; (iii) a Public Information component with two subcomponents. A fourth component would strengthen Project Administration. Project physical and I I | co~~~~st coiiingeiicies compriseine remainder of project financing. | Basic Educati;on | 2001-Jn e 31 1 $34.0 M A Feb. 15,2000 1 . e project -vi. ( a) Id ---- A Modernization $33.73 M to Preschool and Basic Education in 1 15 target miiiciininq and (h{) Improvement in education quality; and (c) Institutionalmmodernization ________________ I ___________ I |__________ I ____________ I and strengthening. Non-lending $0.26 M Sept 2001 The Cities Alliance grant will be activities: $0 used to help strengthen OPAMSS's -Strengthening of capacity to design and implement OPAMSS urban upgrading projects atthe metropoliian ievei. I -Cent. 'Ame ......... ca I I ~I Il Tcourse isad8Wessed-ntiW UI- | Urban Management and local government officials, I Cniirse I I I I NG sC4 involved in urban development, and academia. The purpose is to provide tools for the comprehensive analysis of urban problems and the design of city development strategies. [ .. . _ , . ~WORLD BANK PIEPELINE Juaiciary Kerorm I rY uli5 I _ _1_. I I | Earlthquake |~I FY02 $150M Imwgwuncy I I I I F Health I I T J I vV A I ,< T~i.xfJ V _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Rural Development |FY03 $50M M _ I Meotropolitan BarAfs I FYV A3 I C)5 M I I F INTERAMERICAN DEVELOPMENT BANK PORTFOLIO (*nnlv urban/mvinirina*1 FTechnical foIh Under $330 M IIReorpanize the Municivalitv of San | Cooperationfor the |execution Salvador,(2) LandTitlingand Modernization of the improvement of the legal system [MunicipalGovt. of | 107 San Salvador I ___ I I_ _ I _ I I_^.-L:A ____ __A. _l ILC euICE U uu S l Di IlVI iu IVS UHL pUJLO J ',V'_L"Vn"VLr -. (l)a Cooperation to execution Diagnosis and preparation of a plan :uLl.~.., v~ nLn.aa~,uL I tn mnrnvp the finnn2-il n12n0gPMPnt systems in the system; (2) Formulation of a municinalitv of San technical design for accounting Salvador models; (3) Diagnosis and preparation of a plan to improve the l_______________ I l__________ [ _ ____________ tax managem ent system. INTERAMERICAN DEVELOPMENT BANK PIPELINE National Housing T$50M 1 l-Tns project has 4 components: (l) Program Institutional strengthening to iUpr[vu pUlncy UIZL&U1I anu management in the housing sector; I(2) rnnm-o the Ae-ae-l-t,An* of a ,I . - =,- , _ secondary mortgage market; (3) Sunnort the FSV Reform; (4) Support FONAVIPO reform program for low income households. 108 Table 2. Honduras [ WWDT An DANW Df%DTUdn Tf% [ VYStJ. Sl ĥA1 A * * A A ^' AJAtJ Priet Namp l CrItineIa n l Amnuunt I D&Krrintinn Date Amount US Disbursed as ------ Da _e _ $ of: Transport Sector 2001-March $85.0 M Oct. 15,2000 This project has 4 main Rehabilitation 30 $77.4 M components: (1) Feeder Roads Rehabilitation, (2) Periodic Maintenance of Paved and Unpaved roads; (3) Bridge Construction and Rehabilitation Program; (4) Runway Rehabilitation/Apron Construction-San Pedro Sula iA'lu aulu I aeciuc f1I Assisll% _______________ ___________ ___________ _____ Trainingand Consultant Services Ff11 IV 202-Feb.28 $6.5 M I Oct. 15,2000: I.I pr ect prov financg for $44.0 M j wide range of urgent small-scale | social and economic infrastructure subprojects particularly in health, education, water and sanitation and economic infrastructure, as well as special programs for disadvantaged and vulnerable population groups including street children, women, l.jua.I l~uu I~,.t.u I Oct.l15, 2000: tne elderly and handicapped, and I I | | | ~~~~~~~~~~~~~~~ethnic minorities. I R a||. S,I ..V. I ms prujuvi hua b-ve maii Management $15.5 M components: (1) Land | (2)LandAdministration Mdert-tio;.o Expwnsion, 3 Natural Forest Management; (4) I I I I uI nd for Upland-°oducernfrInnd Producers; snd { j ___________ J | (5) Biodiversity Conservation. Public Sector I 2000-June 30 1 $9.6 M I $6.4 M I The proiect has three components: Modernization (1) Private Sector Participation in TAC Public Services (telecoms, civil aviation, ports); (2) Administrative Reform including Reform of Public I I I l | Management;and (3) Project I ________________ I ___________ I ____________ I __________ _ l C oordination. Public Sector Zuul-June ju Ii 15.7 M uct. I1, ZUUU: 'mlie project has 4 components: (1) Modernization $83.2 M Private Sector Participation in Public Services (Telecommunications, Civil Aviation, Electric Power) (2) Institutional Restructuring I Impuymmu and Siair-y Regiues Rationalization in the Civil Service Ic1 --I I T-JJc.O+L-Ut.on (3) Reform of Public Management (Comprehensive Public Sectnor I | Human Resource Managementand 109 1 1 l l | EffectiveControlMechanisms, and Management and Investment Prnmrmminia Basic Education 2001-June 30 $30.0 M Oct. 15, 2000: The project has 4 components: (1) $22.1 M Human Resources Strengthening; (2) Physical Inputs in Infrastructure such as Instructional Materials; (3) Special Programs including a Bilingual Education Pilot and an Education System Evaluation; and (4) Management Strengthening in the Minisury of Education and Establish and support Departmental In-Furnnmpntn1 I I)nn1-T.. i I T1A 2 M I 1 1 I 200 - -. A ,IN Development $8.97 M Enviromnental Planning and PRODESAM - ' : I Legislation: (2) Environmental Quality Assessment; (3) Local Government Environment Management; and (4) Administration and Project _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ j A | Coordination. lHiealtn & Nurmlon lVuu-1uec. J I 1 3.4 M Uct. 15, ZUUU: I ne Nupplementai credit was $8.97 M approved by the World Bank board IULIJ nUUWy 28, I 999iu WUI WllulWV, the successful and effective l l l l | I~~~~~~~~~~~~~~D:A is currently financing the II SuDlemental Credit in the amount l . 30 I $3 M: of US$10.4(91%ofprojectcost) |PROFUTURO- 2002-Oct.30 $8.3M Oct.15,2000: 1 The project consists of three Interactive $1.7 M components: (1) Sustainable Environmental Development Resources; (2) Learning& j j Capacity Building and Science j j Communication; and (3) Project I _I I I I impiemention unit (Piu). Natural Disaster 2005-Apr. 15 $10.82 M N/A The project would be comprised of iV1iLI4ULI 1 I I Tnerouiowmg components: (1) Strengthening of Monitoring, r FUrzMUiiing, Early a Waring nd I GIS-based Information ll M^naAgeImenL, (2)J Su vungniWngl UL National Capacity to Support En,arnannc,yP oenonseat ,Mu.nicipa! Level; and (3) Building up l l l l I CapA^~~~~~~~~~~r nn it,vin niq st.er M itgto a LocalGovernmentLevel. F Economic & 2001-Aug. | $19.0 M N/A 1 The project consists of six FinancialMgmt. 130 I I components: (1) Public Finance | TA Management and Internal Control; (2) Administrative and Technical | Restructuring of the Comptroller 110 |General'sOffice (CGR); (3) Human Resource Maimn;(4) Developing Planning and Pvoluiot4nn Tnctit.d4nhnal Conpaift,* Consolidating Reforms to Regulatory Frameworks and Bro_denin g Privatization Efforts; and (6) Public Procurement. Road 2006-Mar. $66.5 M N/A The project is composed of the Reconstruction and 31 following components: (1) Road Improvement Reconstruction, Rehabilitation and Improvements; (2) Rural Transport hInfrastructure (roads and bridges); (3) Road Maintenance Pilot Project; and (4) Consultants/TA/Training/Studies Access to Land N/A The project has wo main W -iot rogect components: Land Administration Modernization, and Land Fund. Modeization component would | LandInformation System; (b) Canacitv Building of Persormelto nmanage7the system; and (c) Legal and Administrative Institution Building; and (2) Land Fund componenthasfour subcomponents: (a) Land Purchase; (b) Complementary Investments; (c) I echnicai Assistance and Legai Services; and (d) Administration Iau rluuuuuuL. WORLD BANK PIPELINE Sustainable Costal | FY02 $5M |Tourim'IIIII Health [FY02 1 $22M _ I _ INTERAMERICAN DEVELOPMENT BANK PORTFOLIO (*only urban / municipal*) | Municipal j Under $40M (Tegu) 1 I Project components for SPS and Development in execution $30M (SPS) | Tegucigalpa: (1) Technical San Pedro Sula assistance to improve financial and Tegucigalpa administration in the municipalities and improve the capacity of service supervision; (2) Execution of action plans to restructure these services, and (3) Eligible municipal investments for the non/transferable responsibilities of private participants foliowing tne ________________ ____________ _____ __ prrestructurizationprogram . Project components for SPS: (1) Promote reorgani7ation of the municipality; (2) assist in the modernizatinn of the municinal finance sector; (3) transfer of e-n-vir-onm-e-n-tal m-a-nag_e_men_t to -the Municipality; (4) contribute to the business management of the municipality water company; (5) endorse, establish and finance key investments for public transportation and a road network; (6) assist in the contracting of garbage disposal services, (7) support the municipality in the execution of an integrated approach for urban upgrading. Project components for Tegu (1) Modernize Municipai Finances; (2) transfer environmental management 01 Ir IvIutulipwIty-, (3) endorse, establish and fnance a mechanism I I I I I +.o s ~~~~~~~~~- - r0e .. 16^ofo-^ and public transportation; (4)) I Iccaist in tha -cntlmn of -rba-e disposal services, and (5) assist the I I I I I ~~~~~~~~~~~~~~Miiicinaditv to ininlpnent an |integrated strategy to legalize land Hondus N ET ownership andurbanupradmg. US AGENCY FOR TERNAITIONALDEVELOPMENTPORTFOLIO (*only urban/regional*) | Honduras | | $500M | The projecthas 2 components: (1) Municipal to institutionalize responsive and Development in effective municipal government Secondary Cities I I through (1) advocacy and legal reform; (2) training and technical assistance in municipal administration, and (3) investments I. I___________ I I__ _ _ _ _ _ L _________ __________ in local infrastructure. 112 Table 3. Panama WORLD BANK PORTFOLIO Project Name Closing Loan Amount Description Date I Amount US Disbursed as $ of: Roads 2002-Mar. $60.0 M Set. 30, 2000: The project has 3 components : (1) Rehabilitation 31 | $48.4 M an urban transport cormponent; (2) an inter-urban roads component, and (3) a policy reform and an institutional strengthening component aimed at: (a) retorming the regulatory policy of the for-hire roua wranipun IMrv1cS; uo) improving overall transport sector fl-n.ng and nnl ,- fv-.rmlot;4n (c) laining MOP staff to prepare nroiects for orivate sector | implementation and to manage the | contracts; and (d) preparing studies _________________ I ____________ j |____________ J _______________ j for possible follow -up activities. Social Investment 2001-Dec. 311 $28.0 M Sept. 30,2000: The project includes three Fund (FIS) $7.1 M | components. (1) The infrastructure | component and (2) The pilot programs component includes (a) a targeted school-feeding program; (b) a Grupos Vulnerables(GV) l l l l | ~~~~~~~~~~~~~~program that finds social services | vI NOOs; an(c) micro-enterpnse activities; and (3) The project I I I I I ~~~~~~~~~~~~management component seeKs to I l l l l | ~~~~~~~~~~~~~~strengthen the capacity of FIS staff| I IartIcIpin pwiaor-y pia--nnmg I community maintenance. t Basic Education t2001-Dec.31 $35.0 M Sept.30,2000: | The project has three components: II0Q 9 M I1) Tmnrnv( m the qualitv of hscir | _education; (2) Expansion of Non- I Formal Preschool Education and (3)Institutional Strengthening of l l l l |~~~~ ~ ~ ~~~~~ MOE. Rural Health 2002-June 30 $25.0 M 1 Sept. 30, 2000: The project consists of three $11.0 M components: (1) The Nutrition Component is targeted to the 28 poorest districts; (2). The Rural .water iuppiy andsamtation Component is designed to help the I ti uyofHEal'.o constn&uML:w 7 water supply systems in unserved | I I [ I I ~~ onmmulnities; (3)Thnen+;^foa Strengthening Component is designed to strenuthen the | operations andtraining programs for 113 the staff of a number of institutions hy irwnvfiina finfiina fnr Shidies, participatory research, poverty monitoring, proiect reviews. staff training and`project administration. Rural Poverty 2002-Jun. 30 $22.5 M Sept. 30, 2000: The principal objective of this Natural Resources $9.2 M project is to apply, on a pilot basis, methodologies that would channel financial resources to rural communities to assist them in promoting sustainable productive systems, and thereby reduce rural poe , k - A--A.Yon o4f na I resources and migration. Ha-lith Sectnr 200 Il-Yec 31 'A I ' M Seprt 30n 0nnn0 The. pilot-ing of A new model for Reform Pilot $0.5 M providing, organizing and financing ------ I heiath servirm.s in the- SMTTR is expected to: (a) increase access and facilitate utilization of health I services, particularly of the poor; I (b) improve the efficiency of health expenditures; and c) carry out institutional strengthening activities at the MOH cental level to implement the pilot in the SMHR, and initiate preparation activities tor the scaling up of the reform to other Basic Education II 2005-June 30 $35.0 M N/A This project has the following textbooks andsupplementary readine materials to all students attending public primary and lower secondary schools; (ii) finance | about 9000 scholarships to students selected on the basis of poverty ]l l criteria; (iii) Pilot Project of Distance Basic Education t IeieDasica); (iv) Renabiitation of Educational Infastructure; (v) I I I I ~ ~~~~~~~~~~~~~~~~ I.ApmI. of Ul No FI Preschool Education Program; and I I I ~~~~~~(x,) Tnct,i,titinnni Ctmenathnina nf I l_____________ l I I |the Education System. WORLD BANK PIPELINE Public Policy | FY02 1 T Reform TA _ I I Trade Labor I FY 03 j FESH I FY03 7 1 1_1 Canal Watershed jFY04 _ Health FY04 | _ r 114 _NI-i ERAMEARICAN DEVELOPMENT BANK (*OnlY urban/munIcIpal-) TT-J-- d'r')XR 1 I 'L! -. - 1 - riwuMuct %16} UIlWl DJZ.lVI I 115 pIUJrkA Uda J VUIpUilWI1L. ki) Comprehensive execution Overall diagnostic of the Municipal municipality; (2) Servier Development improvement; (3) Marginal I ProgramI- Neighborhood improvement; (4) Environmental and Urban Planning; and (5) Dimensioning, structuring and assessing the feasibility of the City's four-year capital investment program. IN 1 ERAMEKICAN DEVELOPMENT BANK IPIPELINE (*only urban/municipal*) Municipal $14M This project has 3 components: Promotion of Development, (2) Modernization of D'ec e"ntral ization Municinal Government and Citv Participation, and (3) Local| investment.I Support for the $70M This project has2 components: (1) Strengthening and I I F Establish bilateral mechanismsto Development of promote cooperation between the Municipality of institutions; and (2) Finalize a IPanama I I I strategy tor intervention. U ;AGENCY FOrUrIttiLERiAiU1OAL UDVLOLPEVNLT r rTFOULIUO -only ISAI.zLI~I urban/regional*) | Sustainable | Under | $27M | | This project has 3 components: (1) Msmncrement ofthe I execntion I I I evelon and implement inteoratedI PanamaCanal Solid Waste management; (2) I Watershed Strengthen local government and private sector capacity for environmental management, and develop environmental action plans; and (3) improve environmental - ______ _______ __ 1 __ ________ j ____ _______ 1 I __ J practices of industries. 115 I RePort No.: 22590 LACI Type: ERI II