The construction of public housing is critical for urban development anywhere, but Kathmandu Valley´s limited experience in this area is not very encouraging.
In 1977, the Nepali Government chose two sites west of the Bishnumati River to develop as housing projects. One was the locality of Kuleshwor near Kalimati, and the other was Dallu near the temple complex at Swayambhu.
The work at Kuleshwor, which was the first housing venture in the country to provide "site and services" proceeded as planned. The Kathmandu Valley ToWn Development Committee (KVTDC)acquired521ropanis (26.5 hectares) of land and prepared 810 housing plots with basic services like access roads, water drainage and electricity. All the plots were sold to civil servants and the scheme was declared completed in 1990.
Dallu was to be developed next, or so everyone thought. Without giving any explanation or warning, however, the KVTDC shifted its attention to a site 10 km to the north, in Golfutar, near Bansbari. "Vested interests" had apparently got interested.
An influential power broker holding alarge chunk of real estate in Golfutar found KVTDC officials as willing allies in a plan to neutralise tenants with whom he had been engaged in legal wrangling for years. A Government-sponsored housing development boondoggle was the best way to get the tenants off his back, and he got what he wanted. The KVTDC authorities turned out to be only too eager, in the heyday of the Panchay at, to oblige. They shifted all the resources at their command to Golfutar.
The Government used the principle of eminent domain to acquire 213 ropanis (10.85 ha) of Golfutar land. Altogether 581 housing plots were created and sold on first-come first-served basis, as a result of which most plots landed in the hands of speculators rather than genuine householders. KVTDC also established, for the first time, a policy of exchanging developed land for undeveloped properly, as a mode of compensation. This was done basically to please the Golfutar power broker, who reaped huge adv an t age. All the Go If u tar p!o ts were sold within a mere three days, and the project, financially in the red, was officially terminated in 1990. According to residents, the promised facilities such as proper roads have not been provided and, lately, commercial activity, including carpetmaking, has begun in this exclusively residential zone.
Dallu´s tale, on the other hand, has been replete with sorrow. Originally envisaged as a site and services project, the Government-imposed moratorium on the sale and construction ofany sort is still inplaceinDallu today. In 1977, when the KVTDC used its eminent domain prerogatives and acquired 352 ropanis (17,90 ha), the property owners had beenoffered official rates which were far below the prevailing market price, as is usually the case with Government compensation. The alienated landowners, who had not wanted the project in the first place, refused to accept any form of compensation for the expropriated land. Only about 20 per cent of them took compensation, much to their subsequent chagrin .The deadlock has continued. Successive administrations adopted a policy of wait-and-see over the ten years.