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ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery Specialist- IOM, Nepal Regional Earthquake Recovery Dialogue for BBB UN-ESCAP, SDMC and NPC –1-2 Oct. 2015

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Page 1: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

ECONOMICS OF BUILD BACK BETTER

Recovery and Reconstruction

Housing and Human Settlements

Gorkha Earthquake 2015

Suman Kumar Karna, PhD

Recovery Specialist- IOM, Nepal

Regional Earthquake Recovery Dialogue for BBB

UN-ESCAP, SDMC and NPC – 1-2 Oct. 2015

Page 2: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Overview

• Housing and Human Settlements

Recovery and Reconstruction

Gorkha Earthquake 2015

• BBB Perspective – In general

Page 3: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

BBB Perspective:

• Clinton Proposition of BBB

• BBB Concept, Framework and Principles

• Shelter Recovery – Key Issues

• Shelter in Disaster Recovery Context

• Shelter Vulnerability Factors

Page 4: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Tsunami Recovery 2006 –

Clinton’s Proposition of BBB:

1. Community Driven.

2. Fairness and Equity.

3. Preparedness for future disasters.

4. Local Government Empowerment

5. Recovery planning/effective coordination and IM.

6. Clear role of UN, WB, and other multilateral agencies.

7. Role of NGOs and the Red Cross.

8. Allow entrepreneurs to flourish.

9. Co-ordinated Support to affected populations.

1 0. Reduce risks and Build resilience.

Page 5: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Build Back Better:

Ensure that the affected community is

regenerated in a resilient manner for the future.

As a way to utilize the reconstruction process to

improve a community’s physical, social,

environmental and economic conditions to create

a more resilient community………..

Page 6: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

A – Key Propositions for Building Back Better ( )

B – Principles for settlement and shelter, (UNDRO, 1982)

C – Post-Tsunami R&R Strategy and BBB Guiding Principles,

(GoSL, 2005)

D – Rebuilding for a more Sustainable Future: An Operational

Framework, (FEMA, 2000)

E – Bam‘s Reconstruction Charter, BRSSPA, (Omidvar et al., 2010)

F – R&R Framework, VBRRA, (VBBRA, 2009 and 2011)

G – Recovery Strategy, CERA, (CERA, 2013)

Documents Referred:

Page 7: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

S

N

BBB Concepts BBB Guidelines Score

A B C D E F G

1 Community-driven R&R 7

2 Fairness/Equity/Transparency 5

3 Pre-prepared Recovery Plans 4

4 Empowerment of local Government 5

5 Coordination of activities 4

6 Livelihood and economic recovery 5

7 DRR, Resilient, Safety of people 7

8 Needs-based resource allocation 5

9 Locally appropriate solutions 7

10 Legislation/policies to facilitate R&R 3

11 Evacuation and resettlement 5

12 Training/education for community 3

13 updating BC/Construction methods 3

Page 8: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

BBB Concepts Areas of Recovery

Community-driven R&R Community – at driving seat, empowerment,

engagement, ownership, inclusive

Fairness/Equity/Transparency Community – participation & empowerment , good

governance - effective IM, M&E, auditing

Pre-prepared Recovery Plans Efficiency, Effectiveness, Speed

Empowerment of local Government LG - empowerment, engagement, capacity building

Coordination of activities Efficiency, Effectiveness, Speed (EES)

Livelihood and economic recovery Empowerment, Enterprise, Economic Recovery

DRR, Resilient, Safety of people Risk, Hazard, Built Environment, Relocation

Needs-based resource allocation Local community based

Locally appropriate solutions Local- community, culture, design, materials, skills,

habits, norms and practices

Legislation/policies to facilitate R&R Risks, Hazards, BE, Location, EES

Evacuation and resettlement Risks, Hazards, Built environment, Relocation

Community participation, Social, Economical

Training/education for community Community engagement and empowerment

Updating BC/Construction methods Risk, Hazard, Built Environment, Location

Page 9: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

BBB Framework:

Page 10: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Shelter in RECOVERY Context – either provided

with, or are facilitated in the self-provision of,

Housing Solutions that are:

• Permanent

• Sustainable

• Hazard resilient

• Culturally acceptable

• Environmentally friendly

Page 11: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Key Sources of Shelter Vulnerability:

Page 12: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Housing and Human Settlements

Recovery and Reconstruction

Gorkha Earthquake 2015

• Pre-Disaster Context – Baseline Info.

• Post-Disaster Context

• Recovery and Reconstruction Strategy

• Implementation Arrangements

Page 13: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Pre-Disaster Context – Baseline Information

• Relevant Constitutional Acts and Policies are

thoroughly reviewed:

� 2007 Interim Constitution – land to economically

weak and/or landless

� 2007 National Urban Policy – safe, prosperous and

resilient settlement, LG capacity building

� 2012 National Shelter Policy – right to safe and

adequate housing for all

� 2015 NUDS – resilience in urban development

Page 14: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Continued…

� 2012 National Land Use Policy – settlement development in hazard free, safer location

� 1999 LSGA, 2013 EFLG – role of local government

� 1999 Building Act – promotes safer building practices (MTR, NBC)

� 1997 Apartment Act – increasing housing demand

� 1999 Nepal Engineers Act – NEC role, Ntnl. Plan of Action for Safer Building Construction

Sufficient Legal and Institutional backing

to integrate Principles of BBB in

EQ Recovery & Reconstruction Programme.

Page 15: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Building Damage by Typology:

EXISTING BUILDING TYPOLOGIES IN 31 AFFECTED DISTRICTS

Low strength

masonry

Cement

mortared

masonry

Reinforced

concrete frame

Wood and

Bamboo based

58% 21 % 15% 6%

Building types – in line with 2011 Census

Page 16: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Building Typologies (Source- NSET)

Abode Bldg. – Sun dried brick with Mud Brick in Mud Building

Stone and Brick in MudStone in Mud Building

Page 17: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Stone in Cement BuildingEngineered RCC Frame Structure

Non-engineered RCC BuildingBrick in Cement Building

Page 18: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

• Fully Collapsed – 498,852

• Partially Collapsed – 256,697

Analysis of Building Damage

BUILDING TYPOLOGIES AND DAMAGE

Typology of buildings Fully Collapsed Partially Collapsed

Low strength masonry 474,025 (95%) 173,867 (67.7%)

Cement mortared

masonry

18,214 (3.7%) 65,859 (25.6%)

Reinforced concrete

frame

6,613 (1.7%) 16,971 (6.7%)

TOTAL 498,852 (100%) 256,697 (100%)

Physical damage – Vulnerability Curves by NSET

Page 19: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery
Page 20: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery
Page 21: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery
Page 22: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Recovery and Reconstruction Strategy:

� Owners’ Driven Approach

� holistic Habitat development

� Principles of BBB – safer settlements/Resettlement

� Increase Community Resilience – reduce

vulnerabilities, strengthen capacity, mitigate future

disaster, improve construction practices

� Strengthen local economy – upgrade living conditions

� Sustainable & environmental friendly- CC, NRM, SRA

� Equitable and Inclusive

Page 23: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

� Land Use and Clustering of Housing –

� Choose only in case of no option

� 22,256 hhs needs clustering

� Rigorous multi-hazard study of each site

� Select low risk location

� Holistic approach to Habitat

� Participatory, link to livelihood opportunities

� Improve overall living standard

Page 24: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

� Settlement Planning Approach for

Rural Housing –

�Adopt Consultative Process

� Include Community Infrastructure

� Integrate Risk Mitigation Measures

� Promote Planning Principles

Page 25: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

� Risk Sensitive Planning for Urban Areas –

�Norms/Standards for safer settlements

� Integration of indigenous and technical

knowledge

� Risk Sensitive land use plan

�Multi-hazard risk assessment

� Promote planning principles

Page 26: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Contd….

• Review of future seismic hazards – NBC 105 and

108 for structures

• Special focus to settlements with heritage

importance

• Follow regional planning perspective – develop

smaller municipalities

• High-rise building – BC, height, FAR,

development controls, enforcement, capacity

Page 27: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Social/Technical Facilitation

Grants linked to Compliance

Facilitated Mgt. Structure

Trained Masons, Carpenters and

Artisans

Participatory Planning

Detailed Hazard Mapping

Rapid Urban Expansion

Study

Address

Underlying

causes of

Vulnerabilities

Strategy for

Reconstruction

Phase

Page 28: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Socio/Technical Facilitation

MoU between Govt and HH

IMS to Coordinate &Monitor Recovery

Basic disaster-resistant elements

Proper masonry construction

practices

RCC – proper seismic detailing

MRT-NBC where applicable Construction

adheres practices that BBB advocates

Imp

lem

en

tati

on

Str

ate

gy

Construction Material/Labor

Simple method for repair /retrofitting

Robust System – Cash Transfer

Building Damage and Eligibility

Survey

Quality Assurance and Compliance

Training/Certification of trainers

Risk Coverage -Insurance

Awareness Programme

Independent Monitoring/Auditing

Page 29: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

Subsector Disaster Effects (NPR million)

Damage Loss Total

Homes destroyed 258,442 - 258,442

Homes damaged 24,598 - 24,598

Household goods 16,382 - 16,382

Real-estate sector 4,210 20,000 24,210

Demolition and removal of

debris

- 9,941 9,941

Transitional sheltering costs - 14,968 14,968

Rental losses - 1,999 1,999

Total 303,632 46,908 350,540

Summary of Damages and Losses

Page 30: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

R&R Needs Total

Recovery Needs 39,023

Demolition and rubble removal 9,941

Provision of temporary shelter 14,968

Planning of reconstruction 6,273

Training and quality control 7,841

Reconstruction Needs 288,739

House reconstruction 247,025

Repair and retrofitting 31,189

Clustering costs 10,525

Total Needs 327,762

Recovery and Reconstruction Needs:

Page 31: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

TOTAL BBB Cost:

Activities Number/Cost

(Million)

Basis BBB Cost

(Million)

Reconstruction of Fully

Damaged Houses

609,938 /247,025

(450 Sq.ft @ 900)

10% of Total Cost 24,702

Reconstruction of Partial

Damaged Houses

256,697 Repair and

Retrofitting

31,189

Clustering Cost 22,256 hhs Total Cost 22,256

Urban Planning /Heritage

Settlement Planning

LS 2% of R&R Cost 6,273

Training and Quality

Control

LS 2.5% of R&R Cost 7,841

TOTAL BBB Cost (Housing & Human Settlement Cost i.e. 350,540 M)

92,261

(26%)

Page 32: ECONOMICS OF BUILD BACK BETTER - UN ESCAP...ECONOMICS OF BUILD BACK BETTER Recovery and Reconstruction Housing and Human Settlements Gorkha Earthquake 2015 Suman Kumar Karna, PhD Recovery

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