Slum Upgrading Facility Pilot Programme End-of-Programme Evaluation

The evaluation report titled “Slum Upgrading Facility Pilot Programme End-of-Programme Evaluation” provides an in-depth evaluation of the Slum Upgrading Facility (SUF) initiated by UN-Habitat. The evaluation focuses on the performance and outcomes of the SUF pilot phase across four countries: Ghana, Indonesia, Sri Lanka, and Tanzania. It aims to inform future actions and decisions regarding slum upgrading initiatives.

Background and Objectives

The SUF was established to address the challenges faced by urban poor populations living in slums. Funded by donors including the governments of Norway, Sweden, and the UK, the program sought to mobilize domestic capital for slum upgrading and improving living conditions in informal settlements. The evaluation was prompted by a request from these donors and aimed to assess the effectiveness, relevance, sustainability, and impact of the SUF pilot program.

Methodology

The evaluation employed a mixed-methods approach, including document reviews, interviews with approximately 80 stakeholders, site visits to each pilot country, and discussions with representatives from six Local Finance Facilities (LFFs) established under the SUF. While no extensive socio-economic surveys were conducted, simpler surveys were used to gauge the repayment capacity of beneficiaries involved in LFF projects.

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Key Findings

1. Relevance

The SUF pilot program was found to be highly relevant as it addressed significant gaps in financing for slum upgrading. The establishment of LFFs represented an innovative approach to mobilizing local financial resources for housing improvements and neighbourhood infrastructure. This initiative fills a critical niche that traditional donor programs often overlook.

2. Effectiveness

The SUF pilot program successfully improved living conditions for approximately 340-350 households, benefiting around 1,600 individuals. However, stakeholders noted that initial goals were overly ambitious. The program demonstrated that in-situ upgrading—enhancing existing settlements rather than relocating residents—is generally more effective than new construction.

3. Efficiency

The evaluation highlighted some inefficiencies within the governance structure of the SUF. The decision-making body was deemed too large and diverse, complicating efficient governance. Additionally, while some funds were allocated effectively towards credit enhancement activities within LFFs, a significant portion was spent on operational costs at the Program Management Unit in Nairobi.

4. Sustainability

Sustainability remains a concern for the SUF initiatives. While LFFs have shown potential for long-term impact, their ability to sustain operations without ongoing external support is uncertain. The evaluation emphasized the need for continuous capacity building within local institutions to ensure that these facilities can operate independently over time.

5. Impact on Beneficiaries

Although direct socio-economic impacts were challenging to quantify due to data limitations, anecdotal evidence suggested improvements in housing quality and access to basic services among beneficiaries. However, there is a need for more robust monitoring mechanisms to better assess long-term impacts on slum dwellers.

Recommendations

The evaluation concluded with several recommendations aimed at enhancing future slum upgrading efforts:

• Strengthening Local Finance Facilities: Enhance the capacity of LFFs to mobilize resources effectively while ensuring they are adequately supported by local governments.
• Improving Governance Structures: Streamline decision-making processes within SUF governance bodies to enhance efficiency.
• Focus on In-Situ Upgrading: Prioritize in-situ upgrading strategies over relocation to maintain community cohesion and minimize disruption.
• Data Collection and Monitoring: Implement robust data collection methods to track socio-economic impacts more accurately and inform future interventions.

Conclusion

The evaluation of the Slum Upgrading Facility Pilot Programme underscores its relevance and potential impact on improving living conditions for urban poor populations. While challenges remain in terms of sustainability and efficiency, the lessons learned from this pilot phase can guide future initiatives aimed at slum upgrading globally. By focusing on local financing mechanisms and participatory approaches, cities can better address the needs of their most vulnerable residents while promoting sustainable urban development.