Nayana Mawilmada has a challenging role ahead of him as the Urban Development Authority’s (UDA) Director General, especially with the government’s ambitious plans for a Colombo megacity. His responsibilities range from urban regeneration and historical buildings restoration to traffic congestion and evolving urban development regulation. A specialist in urban planning and real estate and infrastructure projects, it would be difficult to find a better-qualified individual for the job. His previous experience includes leading urban sector investments for the Asian Development Bank.
Nayana talked to Echelon about changes he has instituted at the UDA in the past year and the direction of its work in the immediate future…
Can you talk about some changes you’ve made at the UDA since February?
A: When we came in, there were a lot of projects in which financial discipline was lacking. We’ve straightened out those finances, got the audits done and moved forward that process.
On the regulation side, we’ve tried to make the process easier, in terms of engaging with investors more constructively. We’ve set up provincial planning committees, so that everything doesn’t need to come to Colombo and any issues at the provincial level can be sorted out immediately at that level. That has made things a little bit more efficient. We have now created main planning committee more as a policy body so we’ve tried to streamline that. We’ve also re-engaged in a big way in planning because obviously we’re very involved in the megapolis effort. We’re also looking quite critically at Galle, Kandy, Trincomalee and Jaffna, and trying to figure out how to systematically roll out a program of action for these cities. Another important change is the housing program we’ve instituted. It’s a very ambitious program, but we’ve also identified a few weaknesses that we’re trying to sort out.
Is this the resettlement of low-income housing dwellers?
A: Yes. We call it an urban regeneration program. We’re trying to mainstream social engagement within the program. When we moved people before, where we fell short was in engaging the community in a transformative process. Now we’re working with civil society organizations on a pilot to engage the community and understand what they need in terms of social, educational and vocational support to use this transfer from a hut to an apartment as a life-changing opportunity rather than just another housing opportunity. We want to put in place an entire support system around them so we’re looking at effectively redesigning that program.
People need to be in the city. Always moving people aside is not the answer. We have to take these communities seriously and try to help them make something of their lives.
Do you have numbers for these housing projects?
A: We had roughly 65,000 slum and shanty dwellers at the beginning of the program who occupied roughly 900 acres. We have relocated about 4,300 and have about 10,000 more units under construction. The target is to systematically reach most of these people. Beyond that 15,000, do we adjust the model and improve it? That’s under discussion.
Colombo looks very congested, but you’ve talked previously about its land being underutilized?
A: It’s a question of density. From a traffic point of view, yes, the city is congested. But we haven’t used this land very intensely. We have a very low, broad sprawl of development. As soon as you leave the core of Colombo, the building height profile decreases, and it spreads like a cancer. There are lots of pockets where land could be reused and adapted. For instance, a lot of state agencies occupy space in the city, some of it prime property, which could be used for commercial purposes. We’re going to systematically move these out of Colombo towards Battaramulla. We won’t do a shock treatment where we move everything immediately. We’ll do it systematically and consolidate them to enable easier access. We’re studying how it can be moved out systematically. So, yes, there’s no real shortage of land as such. On the surface, there seems to be, but what’s required is just some reorganizing. And that’s what we’re doing.
In cities like New York, most people who work in the city don’t actually live there. Does Colombo face a similar situation?
A: That’s a key problem. In our mapping, the time series shows that the core of Colombo population is decreasing while the population on the fringe is increasing. It’s a function of the land pricing and some distortions in the market. We’re not at a point where the city completely empties out at night; we still have a fairly large residential population. I think from a policy point of view, it’s quite critical to ensure that a lot of residential remains in the city. That’s what keeps it alive.
Can you really ensure that with the pricing now? Most people are just priced out of the city.
A: The problem is that most people want single-family detached housing. You can’t really do that in Colombo anymore. We’re very conscious of that, which is why we’re launching a middle-income housing program shortly, where we’ll build houses for the middle class or put in incentives for developers to build. This will be in and around the city, but not at the very core, because of the high land prices.
Can you talk a little bit about the UDA’s mandate?
A: There are several aspects to the UDA’s core mandate. One is integrated planning. We have to work with several other agencies and guide the development trajectory of areas that are designated as urban development. Our powers are limited to these urban areas.
The second task is to manage and execute projects that are critical to these planning efforts. We have the mandate to implement core pieces of development that need to be done through state intervention. We’re also the custodian of some state assets, so it’s our duty to manage that and, in some cases, dispose or acquire it.
A fourth aspect is regulating land use. That’s linked to the first one, where we work out a plan about how land use needs to work. We set land regulation for factors like how much density is allowed, how high constructions can go, how much floor area can be built, how far it needs to be set back, etc. and then we have to actually regulate that.
And those do evolve as needs change?
A: Periodically, those regulations get reviewed and optimized. We expect those regulations to get revised once the megapolis project is completed. I hope we’ll revisit that again. We try to ensure compliance, and a lot of those powers, especially as the regulatory authority, we delegate to the local authority actually. So the local authorities handle most of the frontline. If there’s a hiccup, a complex issue, that gets referred to us to resolve. All those buildings come first to the CMC of whatever local authority concerned. And if it’s not your standard garden-variety thing that can be sorted out with the existing thing, if there’s some interpretation required, it comes to us, and we have a planning committee that deliberates over that and makes a decision.
How easy is it to work with these other agencies?
A: Inter-agency coordination is always challenging, whether it’s sector-wise or institution-wise. And there’s always a political layer that sometimes gets a little complicated. So we try to balance it all, but it’s obviously complicated. A lot of the time, what we see must be done technically isn’t always easy to convert into action because it needs to go through a process. In a way, I think that’s also OK, because that process is also important. It’s about changing minds along the way, and changing outlooks.
Some people claim that the new government hasn’t quite carried on with the old government’s Colombo restoration projects?
A: The former government has to be given credit for making Colombo a more beautiful place. Now we have some nice open spaces, a couple of parks, some really iconic buildings. All that is fine. But the challenge has been managing the finances associated with that. We’ve tried to get all that organized and resolved, manage all the contracts that were backed up and so on.
What could’ve also been done better or should be done now is looking at this structurally and asking, what do we want Colombo to be? We need to build a proper foundation for the city to develop on. These open spaces are absolutely critical. It needed to be done, and it’s great that it was done. Now our challenge is to set the structural foundations of the city so that the private sector can build it. We need to create an environment for the private sector to prosper and develop. We need to set the rules and regulations so that the city evolves in a way that is sustainable into the future. I think that’s the way the government should play it. That’s certainly the way I think about it. Our job is not necessarily to build everything, but to create a climate for entrepreneurs to do so.
But there is certain urban development that has to be handled by the state?
A: Yes, that’s how it is in most successful cities; the state needs to put in key infrastructure, because it just cannot be done by the private sector alone. But once those have been built, what happens around it is really a function of the private sector. The classic example is Central Park, which was done by the state. But then you have an entire eco-system that was built around it. So there are these catalytic interventions that the state can put in.
For example, mass transit is a catalytic intervention. Once the state builds that, we need to ask, how does this investment transform into an economic opportunity for people and developers? Since you have so much more carrying capacity on that corridor now, there’s an obligation or a responsibility to densify or allow more dense land use along that corridor. So if we previously allowed only four-storey development on this major corridor, then we probably need to allow higher developments now. Our role is to set that regulatory environment in which the private sector can build. If you take an analogy, we need to lay out the skeleton of a city so that the private sector can fill in the flesh.
Is the UDA continuing with projects that were unfinished when the government changed – the Lotus Tower, the restoration of Fort buildings?
A: Yes, those are getting organized. The Lotus Tower project is continuing, although it’s not us, but the TRC, which is handling that. We were just involved in enabling that, with the land and so on. We have a plan developed for Fort restoration, which we’ve submitted for the budget. Work on the Gafoor Building has started. It’s a beautiful asset. The difference in our approach is that we’re looking at structurally stabilizing it and then getting a private investor to do the actual development and adaptation. With a lot of these projects, we’re trying to find avenues for private investors to come in and invest. We want to create an environment where the state doesn’t do everything. That’s the shift in gears.
Where does the UDA source its funding?
A: We have two sources. We generate revenue from our rental assets. We also lease out some properties long-term. Apart from that, for major projects, we get an allocation from the Treasury.
What about this debenture issued in 2011?
A: The debenture was issued to fund a housing program. The logic was that you issue the debenture and you develop this real estate. As a result, you liberate certain pieces of land, which can then be released to the market for commercial development.
It didn’t quite work out like that?
A: Well, it’s a long cycle. You build a building, it takes three years. I wouldn’t say it hasn’t worked out. It’s just that the cycle is long, so we’ll probably have to raise more money from the market to complete the program.
Has a new debenture been issued to cover the one that matured?
A: It will be shortly.
The SEC wanted an audit of the financials at one point?
A: We did that already. We were a little backed up on audited reports at that point. As I said, we’ve been doing a lot of cleaning up.
Can we talk a little bit about the megapolis project?
A: The megapolis project has a few core tenets. One is to somehow manage Colombo’s so-farun checked sprawl, which is unsustainable, and contain it before it really destroys the Western Province. To do that, we need to densify certain nodes, which is the second tenet. For instance, we need to change current one-storey areas into two-storey areas. We have to figure out where these nodes are located and intensify them, get in more people into the existing catchment. The third tenet is linking these areas with mass transit.
We also need specialized economic clusters, which will hopefully create a lot of new employment, economic and business opportunities. We’re looking at industrial clusters, maybe an IT-focused cluster or two, logistics-focused cluster, a more plantation-oriented cluster. We want to plant seeds for really strong economic clusters in Greater Colombo.
On top of all that, the Western Province is really unique in that one-third of its land is wetlands. We want to preserve this and capitalize on it. We want to conserve these wetlands and delicate areas and guide development in a focused way.
What about the Colombo Metropolitan Transport Development Cell that’s being instituted to integrate urban development and transport? Has this already been set up?
A: No, it hasn’t been set up yet. Some institutional mechanism to manage urban transport is clearly required, and I believe it’ll be worked into some of the legislation about the Western Province. I think we’ve recognized that coordination across agencies is required. What that structure should be and how it should be set up hasn’t been decided yet.
Traffic is a huge issue right now. What is the UDA doing to combat the traffic issue?
A: The traffic problem needs a long-term solution. There are no quick fixes to traffic. You can’t build a flyover and expect the traffic to ease, because within two months, your flyover will be full. Transport needs to be looked at structurally. You need a systems approach to solve the transport problem. Right now, we’re trying to understand how we can introduce mass transport and on which corridors. I think the only real sustainable solution is introducing mass transit. There’s nothing else we can do.
On top of that, we’re going to launch a few other projects. We’re working with the Ministry of Transport to introduce some measures but, again, those are going to take some time. For example, we’re actively working on identifying a rail trace between Pelawatte and Colombo. Not the monorail, just a regular rail. We’re also working on a road trace that’ll link OCH to the new Kelani bridge. That will also be through Battaramulla. So some volume enhancement will happen. But I want to emphasize that that’s not going to solve the problem completely. Mass transit has to be introduced.
Is there anything in the works?
A: A lot of studies have been done. I can’t say what’s in the works right now. There are various conversations on various modes, on various corridors. That’s still fluid. Once the megapolis plan is finalized, we should have a much better take.
In your personal opinion, is there anything that you think would work best for Colombo?
A: My personal view is that one technology is not going to solve this problem. We need to look at this as a door-to-door issue. We have to start from both ends. We have to provide certain services in the city. We have to provide rail from the outer regions into Colombo. We have to also improve the bus system, because if we lose people at the doorstep, they’re not going to plug into the mass transit system in the end. I think it’s a misnomer to think that a monorail would solve the problem. I think we need to take an entire systems approach. That’s why we need a key institution to look at this as a system and solve it. Saying better buses would solve the problem isn’t correct; it’s only one part of a larger solution.
This is really what we need to start doing as a country – do more integrated planning and look at these as systems. It’s challenging, but we’re trying to do it.