government contributions are signicant, boththrough sta and oce support and in terms o directcash contributions to a range o upgrading projects.The 15 projects under development range romprogressive upgrading to inrastructure hook-ups thatare expected to reach over 3,500 people in the nextour years. Innovative nancing mechanisms suchas Community Real Estate Investment Trusts will bepiloted through the Indonesia Local Finance Facilities.
sri Lanka nationaL Finance FaciLity
The Lanka Financial Services or Under-servedSettlements (LFSUS) acility is a national non-banknancial institution that provides credit enhancementto a growing number o projects across Sri Lanka. Soar loans and guarantees have been negotiated orour projects. One project in Kirulapone, Colombo,has completed upgrading construction or 31households. A loan was provided by HSBC Bank inFebruary, 2009, and the project is managed by projectpartner, South Asia Partnerships Sri Lanka (SAPSRI),which is actively involved in the community. Thereare zero non-perorming loans thus ar. Three otherprojects are set to begin construction soon. The LankaFinancial Services or Under-served Settlements hasattracted commitments rom national government inurther capitalisation, and has helped conrm secureland tenure so ar or over 100 households in threeprojects. High land values in Colombo mean thissecure tenure is a signicant realised asset or lowincome communities. The Lanka Financial Services orUnder-served Settlements is expected to reach over1,000 households by 2014, with expected leverage oover 6:1 o project value to credit enhancement unds.
tanzania nationaL Finance FaciLity
A National Finance Facility is currently beingestablished in Tanzania with strong support rom theMinistry o Lands and Housing, who plan to contributeto the Tanzania Financial Services or Under-servedSettlements. Secretariat sta are being hired to ensurethat projects can be developed and risk mitigationmeasures are well established. Strong communityorganisation and the link with Women’s Land AccessTrusts are assets as the project goes orward.
a sto o t ao djo S ojt g.
Photo © E. M. Osae
Discussions are underway with the MunicipalCouncil o Kisumu, Millennium Cities and theAgence Française pour le Développement or theestablishment o a Local Finance Facility as part o abroad urban upgrading plan or this ast expandingKenyan city. Kisumu is one o nine Millennium Citiesin Arica, and there is obviously scope to expand toall Millennium Cities on the continent. Explorationsare also underway in Mozambique and Uganda orpotential Local Finance Facilities.There is potential to develop a Local Finance Facility
prototype to assist with the reconstruction o Haiti,and these discussions are underway as a part o theUN-HABITAT response to the crisis and the need orhousing and security o tenure.There may also be scope or a broader Global FinanceFacility Reconstruction Fund that can be establishedto address uture natural disasters or post-confictrebuilding situations, where the need or immediateunds is great and there is scope or repayment asa part o the regeneration eorts, but where creditenhancement and technical support is also needed.