ABSTRACT. The Urban Institute (UI) worked with five cities in
post-Soviet Kyrgyzstan to apply better management practices through the
development of Strategic Land Management Plans. Kyrgyzstan transferred
property to local governments, but municipal land management had
remained poor owing to a proliferation of responsible agencies, lack of
rule of law, corruption, and passiveness on the part of local
governments. UI worked with local governments to make an inventory of
municipal land, publicize the results, and develop a strategy that
articulated principles for land management and an implementation plan.
This led to several improvements including proper registration of
parcels and proactive policies to lease and sell land through open
competition. It also established a model for determining public policy
that countered corruption and public deliberation of costs and benefits
in the use of local assets. Donor involvement to promote good land
legislation, the property registration system, and decentralization was
also critical to success.
KEYWORDS: Land management; Local government; Municipal property;
Decentralization; Transparency
SANTRAUKA
Urbanistikos institutas bendradarbiavo su penkiais posovietines
Kirgizijos miestais, kad, pletodamas strategines zemetvarkos planus,
ivestu geresne vadybos praktika. Kirgizijoje nuosavybe perduota vietos
valdziai, taciau zemetvarkos bukle savivaldybese isliko vargana del
atsakingu tarnybu gausos, istatymu trukumo, korupcijos it vietos
valdzios pasyvumo. Urbanistikos institutas bendradarbiavo su vietos
valdzia, siekdamas inventorizuoti savivaldybiu zeme, paskelbti
rezultatus ir sukurti strategija, pabreziancia zemetvarkos principus ir
jgyvendinimo plana. Tai leido kai ka patobulinti, iskaitant derama
sklypu registravima ir aktyvia zemes nuomos bei pardavimo per atvirus
konkursus politika. Be to, sudarytas modelis, nustatantis viesaja
politika, kovojancia su korupcija, ir viesus sanaudu ir naudos
svarstymus naudojant vietini turta. Prie geru zemes istatymu, nuosavybes
registravimo sistemos ir decentralizacijos sekmingo propagavimo daug
prisidejo it remejai.
1. INTRODUCTION
Local governments are often considered to be poor managers of land
because they lack the incentives of the private sector to maximize
utility from land and because politicians and the citizens that hold
politicians accountable tend to view land as simply one of the component
means to deliver public services rather than a discrete asset to be
managed. Yet public land often is a substantial part of local
governments' asset bases, and improved management will necessarily
have broad budgetary, public policy, and service delivery impacts. This
is particularly evident in countries undergoing decentralization: newly
empowered local governments can demonstrate greater responsiveness and
effectiveness in their management of a key local resource. Improved
municipal land management is thus at the intersection between efforts to
(i) improve regulations and practice to foster effective property/land
management and (ii) decentralize public management to obtain the
interrelated benefits of increased participation of citizens in
governance and more effective, responsive, and accountable local
government.
The authors of this paper were the primary staff of the Urban
Institute seeking to apply better land management and decentralization
principles in local governments in the former Soviet republic of
Kyrgzystan. This work was undertaken as part of a technical assistance
project funded by the U.S. Agency for International Development to
support more effective and responsive local government. We faced
specific circumstances where public land management and particularly
decentralized government in practice did not fully match the ideal
conditions due to the political realities of how Kyrgyzstan had
conducted reforms in these areas. These included in particular cynicism
about formal legal process and lack of genuine participation among
citizenry and corresponding motivation and responsiveness of local
governments. The imperfect, incomplete nature of public land management
is more likely the norm than the exception (Rajack, 2007; Garba and
Al-Mubaiyedh, 1999; Buckley and Kalarickal, 2006). Therefore the
realities of improving municipal land management in Kyrgyzstan are
likely relevant to other transitional countries, particularly in the
former Soviet Union. Yet despite the challenges, improvements could and
did occur, albeit not as rapidly or as fully as might have been the case
with more effective public land management systems and decentralization.
This paper summarizes the work performed and assesses the context,
lessons learned, and factors of success in the development of Strategic
Land Management Plans (SLMPs) in five Kyrgyz cities--Osh, Jalalabat,
Karakol, Cholponata, and Karabalta. The SLMPs emerged thanks to
cooperation between local officials in each of the 5 cities and the
Urban Institute. The paper first reviews the country context for the
SLMPs, including an overview of Kyrgyzstan's land management and
decentralization reforms and a listing of key factors blocking effective
public land management at the local level. Than, the paper outlines a
detailed framework for strategic land management and discusses results
and implications of applying this framework in five cities. It concludes
with reflections on lessons that can be learned by donors and local
actors.
2. COUNTRY CONTEXT
2.1. Review of reforms
Kyrgyzstan is a small country in Central Asia, with the population
of about 5.2 million of which 1/3 is urban. It became an independent
state in 1991 following the break-up of the Soviet Union. During the
first 10 years of independence, the country was a leading reformer among
post-Soviet countries, including ambitious efforts to denationalize real
estate and enterprises and to decentralize government. In particular,
there were several important changes in terms of property rights to
land:
--The Constitution established that there are distinct state,
municipal, private, and other types of property, and all forms are
equally protected by law;
--The Constitution and other legislation established decentralized
local 'self' government, i.e. locally constituted governments
empowered with autonomy from the central state, particularly with regard
to municipal property. This meant that local governments enjoyed, at
least in principle, independent authority to make and implement land
management decisions, which is unusual among post-Soviet countries where
central governments retain a variety of controls over local
administrations;
--The Land Code (adopted in 1999, revised in 2001) mandated that
all land inside city, towns, and villages, which is not state and not
private, is in municipal ownership. Moreover, this provision was
interpreted by government agencies to be directly applicable, i.e.
requiring no additional implementing regulations to transfer land from
state to municipal ownership. This comprehensive granting of property
rights to local governments made transfer of urban land into municipal
ownership substantially easier than, for instance, in Russia where a
similar transfer requires site-by-site approval by regional branches of
the central government agency.
--The 1999 Land Code also stipulated that allocations of land to
private individuals or legal entities must be in the form of either a
transfer of full ownership rights or lease right, thus precluding the
provision of "indefinite" or "permanent" use rights
to private persons and entities. Moreover, legislation introducing the
1999 Land Code called for the automatic conversion of << permanent
>> use rights (the main land tenure form in the Soviet Union) to
full ownership. The Land Code identified a special category of
land--"public use land" (streets, roads, public parks,
etc.)--that may not be privatized and may only be leased for up to 5
years. The Land Code stipulated that allocation of vacant land to
private parties should be conducted through auctions or tender
procedures (except land plots allocated, once-in-a-lifetime, for
individual housing);
--The Civil Code established that property rights are not legally
valid until they are registered by a special state agency. The State
Agency for Registration of Rights to Immoveable Property (Gosregister),
was established for registering property rights and transactions
involving such rights in 2000. Thanks to a World Bank loan and technical
assistance Gosregister was able to establish 50 regional offices and
conduct systematic registration of all real estate in cities and towns
by the end of 2004.
--Privatization of urban land was conducted through simple
channels: for individuals, land plots occupied under various "use
rights" and used for single family homes or household kitchen
gardens were automatically converted to private ownership; enterprises,
which were privatized before the new Land Code was enacted in 2001,
received their land sites in private ownership free of charge as well;
owners of apartments in multi-apartment buildings are entitled to common
shared ownership of land sites appurtenant to the buildings (in
practice, the process of identifying the borders of these sites is not
completed yet).
To date, more then 6% of the country's entire territory is
privately owned, with a much higher share of private land in urban areas
(the vast majority of territory are state-owned mountain ranges and
pastures). For example, in five cities discussed in this paper private
land makes up from 18 to 50 percent of city area, being close to 50
percent in three of these cities. Moreover, the real estate market in
urban areas is quite active. For example, in 2006 5.3% percent of all
registered residential properties and 3.3% of non-agricultural land
sites in our five cities went through sale transactions. This is a very
active market, by any standard (Kaganova, 1999).
One of Kyrgyzstan's fundamental steps in launching its program
of government decentralization was to transfer substantial portfolios of
built-up property (e.g., school and kindergarten buildings, town halls,
clinics, and local cultural facilities) and municipal service
enterprises (e.g., water/sewer utilities and companies providing solid
waste management, street cleaning) into municipal ownership. This
transfer happened, similarly to many other transitional countries,
quickly (Kaganova, 2006), almost overnight. For example, as the result
of this transfer, the cities of Osh and Jalalabat received about 140
properties each. The very fact that there was some process and procedure
of the transfer, and the transferred properties were identified,
established a clear initial point for local governments to start
recognizing their new role of property owners (though this explicit
transfer was not prepared well, especially for the enterprises, and has
been associated with some long-lasting legal, accounting, and
operational issues. However, given the strong inertia of centralized
government from the Soviet era, the newness of the concept of municipal
ownership, and initial weakness of local governments, property asset
management in cities was quite embryonic until technical assistance on
this subject was offered by USAID-sponsored projects. With technical
assistance, some cities moved energetically with improving some elements
of asset management, such as testing competitive procedures of engaging
private investors (Kaganova et al., 2001). Also, many cities started
registering their municipal ownership on the transferred properties. By
late 2003, about 56 percent of the transferred properties were
registered, on average, in all 25 cities of Kyrgyzstan.
Unlike built-up properties, taking control over municipal land
turned to be a bigger challenge for local governments, and progress on
this front has been substantially delayed compared to the built-up
properties explicitly transferred to local governments. Such a lag for
asserting control over vacant land parcels has been typical for cities
in many, if not most, transitional countries. For example, many cities
in Croatia, even those that progressed well with improving management of
their portfolios of built-up properties, still don't have complete
inventories of their land. In Kyrgyzstan and other Newly Independent
States much of the confusion lies in the Soviet-era determination that
land rights followed, rather than were primary to, the rights to
buildings (FIRS, 2005; Strong, 2003). This led to a situation where
there were transfers of buildings with land being an afterthought,
providing grounds for competing assessments of the borders of land
parcels appurtenant to buildings. Furthermore, it meant that land
without buildings were generally not established as distinct parcels.
2.2. Challenges to effective land management
The overall situation with municipal land in Kyrgyzstan's
cities prior to introduction of Strategic Land Management Plans can be
summarized as follows:
--Competing agencies involved with land management. Management of
urban land in Kyrgyzstan, as in most post Soviet Union countries, is one
of the most non-transparent and confusing areas of public management.
There are three key institutional players involved in a process of
allocating vacant land and land rights for new construction: a local
branch of the State Architecture & Urban Planning Agency
('Architecture Department'), local branch of Gosregister, and
local government. Both the Architecture Department and local Gosregister
are subordinate to a central government agency rather than to local
government. Traditionally, the allocation of vacant land has been the
stronghold of the State Architecture & Urban Planning Agency, which
controlled the process and held information about vacant land.
Gosregister attempted to carve a niche for itself in the process, well
beyond its direct responsibility to register rights and transactions,
emerging as a second strong player through its control over securing the
legal rights to land. Gosregister was created out of older Soviet-era
registration and mapping entities but granted additional powers to
'promote the land market' and was the implementing agency for
successive World Bank-funded projects. It had resources, a large staff,
a broad but vague mandate, as well as a dynamic Director to compete with
the Architecture Departments for power over land management. Municipal
Property Departments at local governments that, theoretically, should
have assumed management of all municipal property including land as the
representative of the 'owner', i.e. the municipality itself,
have been the weakest institutional link. Moreover, in most cities,
particularly larger ones with independent Architecture Departments,
these departments have been explicitly removed from dealing with land
management in any substantial way. At most the Municipal Property
Departments oversaw short-term leases on small plots located on
"public-use lands" to street retailers. The key process of
allocating vacant land for construction has been controlled by the
better staffed and almost always more experienced Architecture
Departments and Gosregister. This is despite the fact that allocation
decisions must be formally approved by the Mayor or his/ her deputy;
these figures in effect wholly relied on agencies not under their direct
authority rather than their own property departments. Inertia from the
Soviet era where local mayors were directly subordinate to the State
contributed to local governments' passiveness.
--Fragmented, unreliable information about land. Information on
municipal land has been fragmented, unreliable, and on the whole not
available to citizens and local governments themselves. Thus, local
governments--which technically by law are owners of all land that is not
private or state--have very incomplete information about which sites are
municipally owned and where they are located. Some information about
vacant land has been in possession of the local Architecture Departments
and some information in Gosregister branches, but these agencies
typically do not share or join information on a systematic basis. During
systematic registration by Gosregister, most parcels, which should have
been identified as municipal land, were given only
"preliminary" registration in the absence of a specific
document detailing the given parcel. Moreover, Gosregister officials
routinely commented that local governments did not bother to utilize the
systematic registration process to clarify their rights and their
specific land parcels. We found that many cities indeed were passive in
asserting their rights, despite repeated urgings to be more cognizant of
the need, responsibility, and benefit to having a clearly defined
portfolio of municipal land. This led to a situation where Gosregister
offices arbitrarily determined municipal land in 2000-2002, leading to a
very large margin of error both in favor and against cities. For
instance, according to surveys of municipal lands undertaken with our
project's help in five cities, the difference between actual
holdings of municipal land and official Gosregister data is in the range
of 7-24% of the city territory (for further discussion see Table 1 in
section 3).
--Prevalence of transactions inconsistent with law. Local practices
of land allocation to private parties very often occurred with
significant violations of land legislation. Typical violations included:
* allocation of land to private parties without competitive
procedures,
* allocation of the land rights without terms or without specific
types of use,
* privatization of "public use land," especially park
land, and
* creation of conflicting claims due to allocation of the same
sites to various holders.
Many of these violations were not intentional, especially in early
2000s. They occurred due to several factors, including simple ignorance
of legislation at the local level among all of the actors--local
governments, state agencies, entrepreneurs, and general public;
insufficient professional skills of municipal staff, often as a result
of high turnover; and an aversion to directly applying new, reformist
legislation without a specific implementing regulation from the central
government, a typical problem with the legal culture of many former
states. The general ignorance of existing laws at all levels of
government is well illustrated by the fact that the central government
agencies and the government of Bishkek attempt, time to time, to promote
their interests by introducing new laws and regulations that explicitly
conflict with existing laws. For instance, legislation was adopted that
effectively contravenes the principle of competitive allocation of
property rights in order to facilitate a particular deal.
--Corruption, at least in perception. Land allocation and
registration, at least in popular perception and in surveys on
corruption, are perceived to have high incidence of corruption and abuse
of power. In particular, there is the widespread perception that the
following occurs: (i) allocation of land sites by corrupt officials for
informal payments approximating market prices, while the formal prices
are substantially below market or zero, and (ii) land grabs by those in
power and their networks of land that is otherwise not available (for
example, land plots for individual housing allocated to high-ranked
officials on land cut from parks). This perception was confirmed in
several cases against municipal officials for improper allocation of
land.
--Lack of a proactive government strategy to manage land,
particularly allocation. Not surprisingly, with the competing agencies
and poor information, local governments are not prepared to engage in
proactive management. It takes private sector to be motivated enough to
navigate these problems and secure the allocation of public land. Thus,
in general, the process of allocating land to new tenants--be this a
small spot on a sidewalk for a short-term lease or a lucrative site for
new construction--has occurred when potential tenants "find"
land sites suitable for improvement and go to authorities with requests
to allocate the sites to them. Local governments haven't been
supplying sites for lease or sale by their own initiative and through
open procedures, except some very limited "show cases" in
large cities such as Bishkek and Osh.
3. STRATEGIC LAND MANAGEMENT PLANS
3.1. Objectives
Given this situation, we thought it would be useful to offer cities
assistance on improving management of municipally owned land. This work
was to be conducted in the context of our project to support effective
decentralized governance; making land management a matter of local
public policy was an important element in support of this project goal.
The main objectives in proposing to develop land management plans were
to:
* Help local governments assert management control over municipal
land, which should include oversight by local councils;
* Introduce greater transparency in the land allocation process to
build public trust as well as the opportunity for more popular control;
* Switch the land allocation process from re-active and
non-transparent to more pro-active, with local governments offering land
on market within explicit long-term land allocation plans;
* Facilitate transition to full observance of all legislation
governing land allocation and management;
* Improve the investment climate for private investment in real
estate;
* Establish land allocation as part of public policy, with
requirements of government to balance interests of various groups in the
community in order to meet development and social equity goals, and
* Increase budget revenues from land sales and leases and establish
the practice of earmarking capital revenues from land sales for capital
investment.
The fiscal objective of increasing local budget revenues through
realizing full market value of municipal land was considered very
important because cities in Kyrgyzstan are poor and the taxes assigned
to local governments are mostly insignificant and subject to de facto
control by the central government. There were various indications that
revenue-generating potential of municipal land was underutilized;
moreover the increased revenues by law should not be subject to
reallocation as was the case with most key local taxes. It should be
noted, however, that local officials often did not believe that their
governments would benefit from increased revenues due to the range of
central government controls over the local budget process prior to
fiscal decentralization reforms in 2007. These controls included
requirements for centralized confirmation of revenues and expenditures,
which in practice included even individual line items, and a centralized
treasury system that was selectively responsive in administering local
budgets. Local officials expressed fear that increased revenues from
land would de facto be offset by cuts in other revenues, as the State
would seek to retain as many revenues as possible. Part of our
team's task was to use our involvement in order to raise awareness
about the detrimental effect of the threat of offsets and advocate for
national legislative changes providing local budget autonomy to
eliminate the controls that allowed for such offsets.
Land is the most valuable asset that local governments in
Kyrgyzstan own--they are "income poor, land rich." Demand for
land in many Kyrgyzstan's cities is manifested in relatively high
and quickly growing land prices on the private land market. Also, there
is high interest to land sites occasionally auctioned in big cities, at
least in cases when sale conditions where reasonably formulated.
Finally, international experiences pointed to the high revenue potential
of municipal land in an increasing number of cities in various countries
that were able to leverage their land to achieve remarkable development
(Peterson, 2006, 2007).
The new approach to land management, which was proposed in
Kyrgyzstan cities, involved a strategic rather than ad hoc approach.
This means that municipal land was to be acquired, held, used, and
disposed of based on relevant information and explicit policy, in a
systematic (planned) and transparent way. An important milestone of
implementing such an approach would be adoption by local government of
"Strategic Land Management Plan" (SLMP). Furthermore, this
adoption should ideally be codified as a local normative act that is
therefore legally binding for all parties, above all the local
government.
3.2. Framework
The obvious starting point was information. None of the above
objectives could be achieved without local governments having explicit,
reviewable, current, and reasonably complete information about municipal
land. Therefore, creating an inventory of municipal land at Municipal
Property Departments was a core task. Even in developed countries, such
as the U.S., developing in maintaining a good parcel-based geographic
information system (GIS) is still a challenge that requires highly
qualified expertise and effort (Hall, 2001), and by late 1990s, the
estimated share of jurisdictions in the country working on developing
such systems was about 25% (Moundon and Hubner, 2000). At the same time,
the encouraging experience from the pre-digital times is that in the
U.K., yet back in 1980s, local governments were required to have
registers of sites in public ownership that might be available for
development (Bramley, 2001). Based on this, from the very beginning, we
were oriented toward low-cost and simple methods of inventorying, which
would be reproducible in all cities at costs affordable to local
governments.
As a pilot project, we offered technical assistance on inventorying
land and developing a SLMP to the City of Jalalabat, the 3d largest city
in the country. The city was chosen for subjective reasons: the
Municipal Property Department has been an active partner since 2000 in
its attempts to improve management of municipal property assets;
moreover, despite some turnover there was substantial continuity of
practice. Soon, several additional cities asked for assistance,
including the capital Bishkek. Bishkek, as the center of the
country's economic activity, was particularly attractive. Five of
the cities succeeded with developing SLMPs, though to varying degrees of
detail and implementation. Bishkek, however, did not proceed with an
inventory. The Mayor's office resisted conducting an inventory of
plots that would be made public, despite strong support for the measure
from the City Council, including several formal resolutions ordering the
Mayor's office to conduct the inventory of land.
This section lists key activities undertaken, with UI's
assistance, by participating cities for introducing strategic land
management. It also includes some "know-how" comments based
primarily on the complete experience with the pilot city of Jalalabat.
Several steps are straightforward; however the key process of field work
to conduct an inventory in the Kyrgyz context (step 3) is discussed at
greater length.
1) Secure high-level commitment and support at the Mayor's
office. Either Mayor himself should be interested in having the SLMP
prepared or his First Deputy with sufficient "weight" and
dedication.
2) Establish a special inter-agency working group. The group should
be lead by either Mayor or his Deputy and include Heads (and staff) of
the three key players: the Municipal Property Department, the
Architecture Department, and Gosregister. The task of this group is
developing the SLMP and addressing all technical and institutional
issues that arise during the process, including cooperation among these
three agencies.
3) Conduct initial inventory of land that is expected to be
municipal and clarify city's ownership rights. Because of the
incomplete information, the working group with our assistance had to
engage in identifying parcels, in part mimicking the way that
entrepreneurs had sought to 'find' land parcels for
allocation. With respect to Kyrgyzstan's cities, the types of land
to be identified fit into four main land portfolios:
Portfolio 1. Land sites associated with municipal buildings and
facilities, including those under control of municipal enterprises and
institutions;
Portfolio 2. Vacant, potentially buildable land, not encumbered
with third-party rights; Portfolio 3. Public-use land (parks, streets,
etc.);
Portfolio 4. Land leased out to third parties or encumbered by
other partial rights of third parties.
Portfolio 4 of leased land may overlap with both Portfolio 2 and
Portfolio 3, and sorting this out is one of subsequent tasks. However,
the first step is to create initial lists of these four portfolios.
Identifying Portfolio 1 of land associated with municipal buildings
and facilities is relatively easy because the address lists of these
properties exist. Moreover, in Jalalabat, most of these properties
already went through registration in Gosregister, which legally defined
the size of land sites. However, in other cities, where properties from
these portfolios were not registered yet, a problem encountered was that
sites' size often varied according to varying sources of
information. This lack of registration of the parcel was due primarily
to local governments' earlier passiveness during systematic
registration.
For Portfolio 2 of vacant land, we recommended establishing
initially only basic information in order to reduce costs and delays:
* Site identification number;
* Address (location);
* Size (sq. m).
Later, during clarification of a legal status of the vacant sites
and for planning their future, two additional characteristics were added
for each site: its legal status and land-use zone according to the
official city zoning.
Our initial discussions with the Architecture Department and
Gosregister in Jalalabat quickly lead us to a conclusion--which later
was confirmed in other four cities--that neither of these agencies had
reliable information on vacant sites. Therefore, a lone feasible
solution was to conduct a survey of the entire territory of the city, in
order to identify such sites. The technique used was very simple and
based on walk-through and visual identification of vacant sites on the
entire city territory (except districts known as fully built-up). We
hired a team of surveyors (generally from among professional surveyors
unemployed at that moment and/or staff of the Architecture Department
and Gosregister who did this work on weekends or took vacation from
their regular work to participate in this survey), assigned to each
surveyor a specific territory, gave him a map of this territory in the
scale 1:500 provided by Architecture Department (topography maps shown
existing buildings and borders of sites, and though the maps were not
completely current, they provided some reasonable background) and asked
to walk through his assign territory, block by block, and identify,
measure, and mark on the map vacant sites and record them on note pads
(the lists were then computerized). The minimum plot site subject to
recording varied by city. For example, in Jalalabat, the minimum size
was about 50 sq.m., while in Osh--about 70 sq.m. During these surveys,
surveyors drew sketch plans of each site. When available in other cities
that conducted an inventory later, copies of Gosregister's
digitized maps in the scale 1:2000 were used instead of the Architecture
Department paper maps, and vacant sites were consequently marked on
digital maps. Results submitted by surveyors were subject to
verification by the working group and random walk-through inspections by
a UI project supervisor. The local government of one of the
participating cities, Karakol, organized the land inventory
independently in cooperation with a respected local NGO.
The next step after the vacant sites were listed and mapped was to
clarify their legal status, i.e. whether they had been allocated to
somebody and which rights were registered in Gosregister. For doing
this, the lists were given to both the Architecture Department and
Gosregister. The Architecture Department provided site-by-site
information whether it had issued or was in the process of issuing land
development permits, and Gostegister provided site-by-site information
on which rights were registered, to whom, and based on what
right-establishing documents. This exercise demonstrated that a very
substantial part of vacant sites had encumbrances, of which some were
legitimate and some were questionable. For example, in Jalalabat, among
129 sites found by the survey and believed to be free of encumbrances,
41 sites turned out to have some rights registered on them. After such
sites were identified, the Municipal Property Department and Gosregister
started a process of clarifying each site's legal situation in
order either to exclude the site from the municipal inventory list (if
it was legitimately privatized), register the parcel in municipal
ownership (in addition to already registered partial private rights,
such as lease), or challenge the legitimacy of private rights in court.
This clarification revealed that some sites initially identified as
vacant (neither state or private) and hence municipal were already
privatized. The City decided not to dispute ownership of these sites
because it was suitably convinced by documentation that privatization
had occurred while its claim was based solely on the general deductive
approach set for in the Land Code (what is not State or private is
municipal). In the case of other sites, the process of clarifying
legitimate rights would take a long time. It should be noted that in
some cities the review by Gosregister and/ or the Architecture
Department took a large amount of time. The staff of both entities, as
they were not subordinate to the city, received no extra payment, and
transactions were not imminent, often placed little priority on this
work. It would take six or more months to complete the process.
Portfolio 3 consists mainly of streets that usually are not
registered as separate "objects" of real estate, and specific
"objects" such as parks, standard protected strips along
rivers and canals, and parking lots. Identifying land in this portfolio
is not difficult, in general.
Identification of Portfolio 4 of leased and otherwise encumbered
municipal sites was based on combining two lists: the list of land lease
contracts kept by the Municipal Property Department and the lists of all
sites with some private rights (such as lease and "use"
rights, but not private ownership) registered in Gos-register. However,
finalizing this combined list presented some challenges. First, we were
led to understand that not all leases, especially short-term leases, are
formalized in written contracts. Second, similar to Portfolio 2, many
sites turned out to be burdened by rights, but these rights were
improperly or illegally granted, requiring legal clarification. For
example, in Osh, a large amount of land (about 86 hectares, or about 10%
of the estimated amount of municipal land in the city) was registered in
"temporary use" (but not lease) of 178 private individuals and
legal entities, which was in direct violation of the law. This
revelation took Osh Mayor by surprise, and the Work Group was tasked to
clarify the situation on a site-by-site basis, with the intent to
convert these arrangements into leases.
The task of systematic clarification of land rights related to
municipal land and legal "cleaning" of past mistakes was
included in SLMP of Jalalabat as an on-going task. The Municipal
Property Department works on several cases, but the magnitude of past
violations is so high--everywhere, not in Jalalabat alone--that a more
radical, nation-wide solution might be needed (see Section 4.3).
4) Consult with the public on identification of municipal land. In
Jalalabat, the public was given an opportunity to comment on the initial
identification of land owned by the municipality in two ways. First, the
lists of vacant sites were displayed on the public information board
right in front of the entrance to the Mayor's Office and sent to
the Jalalabat Association of Condominium Associations. The purpose was
to make sure that the public had an opportunity to inquire about the
sites and assert their own claims to parcels. In addition, the novel
exercise in transparency increased public trust in local government.
Condominium associations were especially targeted because land parcels
appurtenant to multi-unit buildings have also either not been defined or
have been poorly defined and hence this was perhaps the single most
likely source of counterclaims.
5) Plan how to use the stock of vacant land. We urged local
governments to be proactive and strategic in making decisions about land
management after their portfolio was identified. The idea is that the
local government should decide two things regarding each site included
in Portfolio 2. first, whether the site can be used for capital
construction or for temporary light structures only, and, second, what
to do with it: sell, lease, use for public functions, preserve for the
future, etc. After discussions with the working group in Jalalabat, we
suggested the following groups for classifying vacant land:
* "Golden reserve"--several sites with high market values
(current or expected), preserved for sales or borrowing in the future
when City would need to generate funding for large infrastructure
investment;
* Category 1, land for capital construction. A sub-group Category
1/2006 included sites for auction sales in 2006;
* Category 2, small plots suitable for capital construction only
after consolidation with some adjacent sites. Can be offered for sale to
owners of adjacent sites;
* Category 3, sites not suitable for capital construction. Can be
offered for short-and mid-term lease;
* Category 4--land for future public uses.
Here is an example (see Table 1) of how Jalalabat classified its
vacant land in the SLMP.
6) Identify main issues to address in strategic land management and
reflect them in SLMP.
In Jalalabat, the SLMP had the following sections:
* Why is the SLMP needed?
* Overview of municipal land;
* Principles defining municipal land policy;
* Management of the vacant land portfolio;
* Management of the public-use land;
* Management of land leases and other partial rights;
* Organizational aspects;
* Financial aspects;
* Information for land management, monitoring and evaluation;
* Reporting.
The text was in large part drafted by the Urban Institute experts
who were involved in this pilot project, because staff at the local
government did not have either skills for such writing or time. Should
be noted, though, that in the USA similar advanced strategic documents
are produced by consultants as well. The working group studied the
draft, made modifications, and finalized it for presentation.
There were several key issues to be addressed in the SLMP. First of
all, as a matter of public policy the local government should articulate
principles upon which the plan is based. The Jalalabat SLMP formulated 5
major principles: requirements to allocate most land through competitive
procedures with exceptions only as allowed by law; provide full
ownership rather than long-term leases for sites sold for capital
construction; re-invest sale proceeds in capital projects; maintain
transparency; sell sites according to annual sale plans approved by
council.
Second, there were various organizational and financial issues and
specifics related to particular land portfolios, such as who is in
charge for SLMP implementation, how should auction preparations be
funded, and what are procedures and responsibilities in converting
"public use land" into land for private construction.
The third major area involved the organization of administration of
key aspects to ensure the ongoing implementation and amendment as
necessary of the SLMP. This included issues of collecting and
maintaining information needed for land management, as well as
monitoring, evaluation, and reporting.
While most cities followed the Jalalabat example closely, Karakol
took the Jalalabat SLMP and revised it independently according to its
needs.
7) Plan how expected sale proceeds will be used. Current budgeting
practices at local governments do not systematically earmark capital
revenues for capital expenditures, though there have been a few examples
where cities invested revenues from disposing of some properties into
capital construction or repair. In order to guard against using land
sales to cover operating deficits, we advised Jalalabat and all other
cities to explicitly plan how they were going to spend expected capital
revenues from land sales. Thus the SLMP itself defined what would be
done with proceeds, specifying which properties would be acquired/
improved, the nature of improvements, and the estimated amount needed.
In Jalalabat, this list included 10 items of the total cost of about
$68,800 (assuming some cost-sharing with donors on two projects).
8) Discuss the SLMP publicly and approve it at City Council. Upon
completion of the draft, it was discussed at a public hearing. After
input from the public, the working group then submits it to the City
Council for approval. City officials must decide whether the SLMP is an
internal document or a local normative act subject to registration at
the Ministry of Justice. In the latter case, SLMP becomes binding for
the local government. Jalalabat choose the second option.
9) Ensure monitoring and evaluation. Finally, an annual report on
SLMP implementation is supposed to be open to the public.
3.3. Current status in five participating cities
Jalalabat formally approved its SLMP in May 2006, though it started
its implementation prior to that, from January 2006. Karakol completed
and approved SLMP in December 2006. The rest three cities went through
inventorying municipal land by mid-late 2006, but have been stalled at
two stages: clarifying the legal status of some vacant sites and
classifying sites for future use. All of them planned to complete these
stages and draft SLMP in April-May 2007.
4. IMPLICATIONS FOR CITIES AND LOCAL GOVERNMENTS
Perhaps the main implication is that the process of creating an
inventory municipal land and developing SLMPs brought to light many
challenging questions of land policy and land management practices. This
first generation of SLMPs won't answer all of these questions, but
at least formulating them sets a stage for explicit discussion.
4.1. Quantitative insights
Identifying municipal land parcels
Inventorying municipal land produced several important quantitative
results. First, it made clear that the formal state statistics about
municipal land ownership--which is based on data officially presented by
the Gos-register annually (Form 22)--is not reliable and deviates from
the reality substantially. Gosregister tends to provide an overall
figure for municipal and state owned land based on historic breakdowns
of the total area of cities rather than recalibrating the totals as the
sum of individually registered parcels. Thus, Table 2 illustrates that
when municipal land holdings were carefully reviewed and measured (see
3.2.3 above), the difference between the estimated area of municipal
land and the formal data was in the range from 7.3% of the city area
(Kara-Balta) to 23.8% (Cholponata). Deviations can be in either
direction: for Osh, Jalalabat, Karakol, and Karabalta the state
statistics reported more municipal land than the cities had in the
reality; for Cholponata, the state statistics substantially
underreported municipal land. And though the inventory estimates are not
final since some land might be added or removed from this count after
clarification of municipal land rights on some sites, these corrections
would not significantly affect the gap. It's important to emphasize
that:
* Gosregister officials at local branches in these cities admit
that the data on municipal land is obsolete and has not been precise
from the very beginning (because the initial systematic registration in
Kyrgyzstan never aimed for precise measuring of land sites), and
* Until this process of developing SLMPs started, the owners of
municipal land, cities, did not make systematic efforts to properly
identify, document, and register municipal land.
Second, the inventory demonstrated that the situation with
municipal vacant land varies dramatically from city to city. Thus,
Karakol has 20% of the entire city territory in its ownership and
vacant! At the same time, Osh owns only 69 ha of vacant land, which
constitutes 0.4% of its territory. Obviously local land policy should
vary with such differences among cities regarding land holdings.
Finally, there was a further substantial revision to estimates of
municipal land based on a review of registered in Gosregister temporary
use rights granted by local government resolutions or other decisions.
This review was conducted in Jalalabat after the initial field survey
and involved mining Gosregister for several months to identify these
additional cases. The results were remarkable in terms of how local
officials had been providing large amounts of land on an ad hoc basis
and the amount of forgone revenue from not signing leases. By checking
Gosregister's data with the Municipal Property Department's
list of leases, the team in Jalalabat additionally identified a total of
380 additional parcels comprising 197 hectares. Of these parcels, only
34 comprising 8.2 hectares had existing leases. All of the other
municipally owned parcels were being used without lease payments,
resulting in striking amount of forgone revenues as estimated in the
section below.
Competitive allocation and maximization of revenues to city
The Urban Institute's analysis of land allocation practices in
Jalalabat and Osh provided quite important insights on land management
issues. In connection with this it should be noted that Jalalabat not
only was the first city in Kyrgyzstan to go ahead with registration of
its built-up properties and development of SLMP, but it also pioneered
processing of all (or at least, most) land allocations through
competitive bidding as required by law. Jalalabat officials started
regularly auctioning land in 2004, and by mid 2006, some data on land
prices on municipal auctions has been accumulated.
Figure 1 shows two important trends on the market of municipal land
in Jalalabat. First, it indicates that when land is sold competitively,
on auctions, the land prices gradient is similar to the gradient in true
land markets, be it New York over its history (Atack and Margo, 1998) or
post-socialist cities (Bertaud and Renaud, 1997): prices differ by
location, falling when sites are offered at less preferred and more
remote from the center locations. Second, it shows a dramatic increase
in prices from year 2005 to 2006 in similar locations--by 150% in the
central part of the city and by about 100% in other locations. This
uneven increase implies that the land price gradient became steeper,
which indicated that the market matured and quickly, according to
Bertaud and Renaud (1997). This increase in auction land prices reflects
the overall trend of rapid and continuing crease in real estate market
prices that have occurred over the past few years and is likely to
continue. Increase in real estate prices has been fueled by a number of
factors, chief of which are the fact that real estate was a favored
investment for proceeds from remittances and the gray economy and
increased demand due to cities' increasing populations.
Further, Figure 2 provides an important insight on a much-debated
issue of whether auctioning land helps increase revenues from sales,
comparing to sales by "estimated market value". It shows that
even if starting prices try to mimic market prices, which is the case in
Jalalabat where a special commission establishes the starting prices
based on their knowledge of the real estate market without any discount,
auctioning increased sale revenues very substantially: the increases
between the actual sales price and the starting prices were on average
24% in 2005 and 46% in 2006. Moreover, the very provision of lots to the
local market on a competitive basis allows the local government to help
contribute to the market's growth.
The a gap between "estimated market prices" and auction
prices in Osh, during the period from 2004 through the first six months
2006 was even bigger than in Jalalabat. Thus, Table 3 demonstrates that
prices of so called "direct land sales" (i.e. sales to tenants
of structures with incomplete rights to the appurtenant land parcel)
conducted by "estimated market prices" determined by
professional appraisers, were on average 2-3 times lower than the prices
obtained on auctions, despite the fact that the sites for these
"direct sales" were in better areas than the auctioned sites
(as the last column of Table 3 indicates).
[FIGURE 2 OMITTED]
Another important glimpse into land management practices in Osh is
provided by data on "use" vs. "lease" allocations
(Table 4). This table indicates that, while "small" lease
tenants occupying the total of 11.5 hectares have to pay for land use, a
much larger area--86 ha--was given to various "big" tenants
free of charge, without land leases signed with them. It should be noted
that most of these "free" allocations happened during
2002-2006, after enacting the Land Code that outlawed such
"use" rights for private tenants.
Not surprisingly, such practices of direct sales and free of charge
land allocations lead to forgone income for the city budget. We
estimated Osh losses for year 2005 to be at least as follows:
--6% of the total city budget for 2005, or 16% of total own source
revenues, including:
--3.6%--<> instead of auctions;
--2.2%--<--0.2%--recurrent annual loss due to land lease rates defined by
"formula" instead of auctions.
Even more striking were the findings in Jalalabat. If one were to
apply the lowest existing lease rates in the city (7.8 som or about
$0.20 per square meter per month) to the 197 hectares given for
free-of-charge temporary uses, then the annual forgone revenues from
these properties is about $4.73 mln, which is 150% of the city's
annual budget; at the average rate of 12.9 som per square meter per
month, the forgone amount is 250% of the budget! By comparison, actual
revenues from leases of land made up only 1% of the budget.
The striking difference in forgone rental incomes in Osh and
Jalalabat sheds some light on another important issue: land lease rates
are set up in Kyrgyzstan cities quite arbitrary, according to some local
administrative norms and intra-city zones, and have no connection to
market land values. In particular, in Osh, municipal land lease rates
are substantially lower that in Jalalabat, despite the fact that the
market land prices in Osh are much higher than in Jalalabat.
Nevertheless, being able to present the foregone income is a
crucial argument for local governments to engage in proactive land
management.
4.2. Institutional and policy achievements
The development of SLMPs and related improvements in land practices
in five cities brought up several changes significant for urban land
management in these and other cities and towns.
First and foremost, the pilot project in Jalalabat demonstrated
that it's feasible for local governments to take municipal land
under their control. A study tour to Jalalabat for officials from other
cities sparked enthusiasm. Jalalabat's working group demonstrated
the entire process--from taking visitors to the "golden
reserve" sites and sites for sale to providing samples of documents
prepared by Municipal Property Department for registering municipal
ownership to hosting them at the public hearing on the SLMP. The City of
Karakol made the next important step and demonstrated that strategic
land management can be introduced with very limited help from outside:
after Karakol's delegation participated in the study tour to
Jalalabat, its local government energetically proceeded with
development, approval, and implementation of its SLMP, with very limited
technical assistance by Urban Institute.
Second, the realization by local governments that municipal land
represents public value that should be protected is growing. In
particular, the number of local governments asking the Urban Institute
for help with land management increases, and they often lament why they
weren't educated on this issue earlier.
Third, local branches of Gosregisters started to perform the
"complete" registration of vacant municipal land based on the
Land Code as "directly applicable law," which is an
outstanding achievement for a post-Soviet country. Credit for
establishing a precedent in early 2006 goes to the Director of the
Jalalabat branch of Gosregister.
Fourth, preparation of SLMPs and related public hearings opened for
public debate the issues of managing municipal land. Intuitively, local
officials and ordinary citizens understand that municipal land cannot be
given to everybody, as land quantity is very limited. In such a case,
what could be a fair and pro-poor solution? Is selling public land,
especially on auctions, when land goes to those who can pay more then
others, fair? In the past, local governments avoided discussing this
issue, but silent uncertainty and doubt did exist. We at the Urban
Institute suggested, and our advice was well received by local
governments and citizens at public hearings--that social justice and
concern for the poor would come through governments being effective
managers of municipal land maximizing its economic usage, while using
the proceeds to provide facilities and services for all citizens.
Therefore the governments should unlock the full potential market value
of its most valuable land, sell it to those who can purchase it at the
highest prices (through transparent competitive procedures), and use the
revenues for the benefits of the entire city population and / or the
poor. In the Jalalabat SLMP, this concept translated into two policy
principles: land is sold and leased through auctions, and revenues from
sales and long-term leases are invested in public infrastructure
according to the list of projects approved by the City Council.
Finally, the work was particularly effective in countering
corruption and perceptions thereof in an area that was notoriously
corrupt. Information about what the city owns has been made publicly
available in most of the target cities and the others are awaiting full
review from Gosregister or the Architecture Department. Jalalabat has an
established routine of processing all new land allocations through
auctions. Another very encouraging example comes from Osh: during the
process of inventorying portfolios of municipal land, the Municipal
Property Department substantially improved its leasing practices. First,
information management was improved (all leases were sorted out,
documents assembled in lease-by-lease folders and also computerized);
second, collecting cash was fully excluded from the practice of the
Department and, instead, all lease payments became collected through
bank payments by lessees. The most encouraging appears to be a concept
underpinning these changes and promoted by the Head of the Department.
His position boiled down to the idea that transparency was beneficial
for the Department and that it was in Department's best interests
to establish transparent practices that would protect it from potential
suspicions or accusations in corrupt practices.
4.3. Obstacles for further progress
There have been and remain many problems in introducing strategic
land management in Kyrgyzstan's cities. Above all, ingrained
practices in which some entities and individuals have vested interests
are must be broken with. The key specific obstacles have been:
* Lack of follow through. Our close cooperation with local
officials tended to generate additional commitment and interest in
developing the SLMPs. Once developed, and our presence was not as
constant, there was less will to implement the recommendations. This is
particularly the case in unraveling prior, probably illegal, allocations
of land in order to put them on a proper lease footing. This was true
even if the SLMP was a local legal act, which reflects the generally
weak rule of law. For instance, in Jalalabat in 2006, the spending of
proceeds from land sales deviated from the approved list of capital
projects very substantially. A positive side was, however, that the
local government at least had a record of how the sale revenues where
spent and had the courage to note these deviations from the plan in the
annual report on SLMP execution.
* Resistance to transparency. In some cities, even participating in
this project, there is resistance to compiling a comprehensive inventory
of municipal land that would then be made available to the public.
Without a strong political will by Mayors to overcome resistance,
inventories will not be done. Further, there are opportunities for
agencies involved to make the inventories purposefully incomplete. This
option is important to acknowledge and neutralize. A way for protecting
municipal land sites from being "hidden" from formal
inventorying would be to have independent examiners authorized to access
all agencies' information and qualified for conducting checks and
verification. At the same time, frequently local officials were
reluctant to publicize lists in order to avoid arguments with other
claimants or more generally drawing attention to the holdings owned by
the city (and what the city already lacks), or perhaps prior actions
undertaken that were questionable from a legal standpoint.
* High cost of registration deters local governments from asserting
rights. The high costs of registering municipal property or preparing
information for registration is typical for many transition countries
(e.g., Armenia, Georgia, Serbia). In Jalalabat, long negotiations were
held between the local government, Gosregister, and the Architecture
Department, to agree what kind of information is required for
"complete" registration of municipal land, who will prepare
it, and for which price. In general, in most transition countries, the
problem is that even if the initial registration of public property is
free of charge, the cost of preparing information required for
registration, such as site and building plans, is high. This is often
aggravated by registration agencies' requirements for excessive
information, not needed for confirming property rights.
* Turnover. Kyrgyz local governments are heavily prone to turnover.
A change in mayor frequently results in the turnover of almost all key
staff. In the 25 cities in which we worked from 2000 to 2006, only 4
retained the same key personnel (and in most cases there were multiple
cases of turnover). For municipal asset management (land management is
part of it) this is especially devastating because this is a technically
complex issue and learning this craft takes time.
* Legal conundrums. A large share of privately owned or leased land
sites was allocated with violations of the Land Code and other laws.
Clarifying property rights of these landholders is an important task,
which often goes beyond local government authority and involves
interests of many players. However, in many cases the current local
governments are interested in resolving site-related conflicts. Some of
our pilot cities are trying to sue land tenants, some land tenants would
perhaps sue cities, but this is an inefficient and expensive process.
The national government should consider means to clarify these problems
on a systematic basis. Neighboring Kazakhstan is currently conducting a
'capital amnesty' whereby individuals can clean up title to
property, which is added to tax rolls. There are social equity issues
with this approach, but it does allow for achieving a clean slate on
property issues rather than having land tied up in legal limbo.
5. CONCLUSIONS
Comparing the results of this pilot project in five Kyrgyzstan
cities with existing practices in many transitional and developing
economies, we believe this is a success and it can be reproduced
elsewhere. However, for transferring this experience to other soils, one
needs to look at factors of this success. Our interpretation of key
factors is following:
Synergy among several successful technical assistance projects
sponsored by international donors. The main three directions of reforms
assisted by donors were:
* Enacting good legislation on land and municipal property, in
particularly determining that all non-private and non-state land in
cities, towns, and villages being municipal under 'directly
applicable law," without site-by-site approval by the central
government;
* Establishment of a working property registration system;
critically important for our story is that the majority of private land
holders--even if their rights were only term rights as leases or
"use" rights--tended to register their rights in Gosregister;
for local governments this implied that Gosregister became a depository
of information that the Municipal Property Departments initially might
not have, but were able to obtain from Gosregister during the
inventorying (in particular, about the portfolio of sites with
encumbrances). Although Gosregister has been the target for criticism,
it has come to fulfill the role as the unquestioned depositor of
property rights, allowing for building an information base to make
property decisions in the public and private sector;
* Local government reform, which included substantial emphasis on
endowing municipalities with autonomous property rights.
Linkage between municipal land management with overall attempts to
improve local governance instead of focusing only on "land
reform" technical assistance. We consider this a critical
orientation: urban land management is a fundamental matter of local
public policy, and good land management should be fostered and supported
as a core skill set for local government with large implications for all
of local government operations. Even in a small country like Kyrgyzstan
the local land situation and practices varies dramatically, and locally
specific (and relevant) solutions are needed. There are close synergies
between land and property management and other local government
functions such as service delivery, the budget process, and the
promotion of economic development. Furthermore, the use of land assets
should be subject to public scrutiny. This view does not imply, of
course, that other components of technical assistance on land reform
should not exist: as noted above, this success would not take place if
at earlier stages of technical assistance donors would not help the
central government to create a framework for land management, which
included good land legislation, straightforward land devolution to local
governments, and establishment of the land registration system.
A legal environment that rewards local governments for better
governance is important. The benefits of better management must be
tangible for local governments to break with past practice. Kyrgyzstan
had relatively good legislation regarding autonomous municipal property
rights. Moreover, changes in the budgeting system are creating the
incentive for local governments to increase their local revenues to the
benefit of their citizens. Local government skills and capacity have
increased over a series of years not only in asset management, but also
in citizen information and participation and strengthening local
councils. The confluence of all these factors makes local governments
more willing to implement reform and to do it well. This also reinforces
the point above.
ACKNOWLEDGEMENTS
We are endlessly thankful to two groups of people. First, to our
many counterparts in five pilot cities--and not only at local
governments but also at local branches of the Gosregister and
Architecture Departments--whose interest, dedication to the good of
their cities, and hard work contributed in improvements of land
management. Second, to our clients at the USAID who supported our work
on land management, and in particular, to Ivan Apanasevich and Ted
Priftis. We also are thankful to colleagues from the World Bank with
whom we have discussed the issues of municipal property registration. We
thank Victor Vorobyev for his help with presenting illustrative data.
Finally, we are grateful to the anonymous reviewer for very useful
comments and suggestions.
Received 28 March 2008; accepted 2 June 2008
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Olga KAGANOVA (1) ([mail]), Abdirasul AKMATOV (2) and Charles
UNDELAND (3)
(1) Senior Associate, Urban Institute, 2100 M St., NW, Washington,
DC 20037, USA E-mail: okaganova@urban.org
(2) Land Management Expert, Urban Institute IBishkek, 195
Tynystanova St, Bishkek, Kyrgyzstan E-mail: aakmatov@ui.kg
(3) Independent consultant, 45 Orozbekov St., Bishkek, Kyrgyzstan
E-mail: cundeland@gmail.com
Table 1. Initial classification of vacant land
in Jalalabat
Category Number Area,
of sites sq.m.
Golden reserve 15 192,356
Category 1/2006, 11 14,496
Category 1/2007 & 61 240,097
after and Category 4,
together
Category 2 3 329
Category 3 39 52,224
Category 4 See above See above
Total 168 499,511
Table 2. Population and land of five cities
Osh Jalalabat Karakol
Population, thousand 241 (1) 83.4 (2) 62.2 (3)
Total city area, hectares (6) 16 769 2 499 4 402
By type of ownership, according
to formal Gosregister data (6): 5 701 1 182 2 130
Privately owned, hectares & (34%) (47%) (48%)
(% of total city area)
State owned, hectares 8 661 295 419
Municipal, hectares 2 407 1022 1 854
1Estimated municipal land, 890 732 920
according to the direct survey
of land sites, (7) hectares
Estimated vacant municipal land, 69 (0.4%) 50 (2%) 880 (20%)
according to this direct survey,
hectares & (% of total city area)
Surveyed territory a, % of total 90% 70% 95%
city area
Cholponata Karabalta
Population, thousand 8.9 (4) 43.5 (5)
Total city area, hectares (6) 3 886 3 201
By type of ownership, according
to formal Gosregister data (6): 683 1 611
Privately owned, hectares & (18%) (50%)
(% of total city area)
State owned, hectares 2 912 781
Municipal, hectares 291 809
Estimated municipal land, 1215 574
according to the direct survey
of land sites, (7) hectares
Estimated vacant municipal land, 233 (6%) 80 (2.5%)
according to this direct survey,
hectares & (% of total city area)
Surveyed territory a, % of total 80% 70%
city area
Sources: (1) www.oshcity.kg estimates for 2006; (2) www.citykr.kg
estimates for 2004; (3) www.citykr.kg estimates for 2003;
(4) http://life.undp.kg estimates for 1999; (5) www.citykr.kg
estimates for 2001; (6) Gisregister, Annual land statistics 2006,
Form 22; (7) The sum of all identified and surveyed sites, including
public use land and some sites with disputed municipal rights.
Notes: (a) Specific territories excluded from the surveying were
those where no municipal vacant land could be found as the matter of
certain knowledge (i.e. either fully built-up or privately owned).
Table 3. Results of "direct sales" and auctions, Osh,
2004--six months of 2006
Share of
sites inside
the 1-km zone
Average around city's
Number sale "central point"
of Total price (b), % of
sites area, (a), transactions
sold he $ / sq.m in this group
2004 Direct sales 93 5.00 2.15 32%
Auctions 20 0.77 4.61 10%
2005 Direct sales 77 5.74 1.15 28%
Auctions 23 0.33 3.83 4%
2006 Direct sales 29 0.86 3.0 13%
(first Auctions 18 0.48 5.54 11%
6 months)
Source: The Municipal Property Department, Osh.
Notes: (a) In actual prices, with the exchange rates as follows:
2004: 1 USD = 48.4 som; 2005: 1 USD = 48.0 som; 2006: 1USD = 44.0 som;
(b) The old bus terminal as city's "central point".
Table 4. Free temporary use and lease of land in Osh
Number of Total Average size
Type of rights tenants area, he of site, sq.m.
Free-of-charge temporary use 178 86 4800
Lease 561 11.5 224
Source: The Municipal Property Department and Gosregister, Osh.
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