A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science

Thesis (M.Sc.) - Asian Institute of Technology, 1993

Squatter settlements in Kathmandu city are not yet a major problem, but are going to be so within a short time, as evidenced by the significantly higher growth rate (12 %) of the squatter population as compared to the population growth rate (5. 8 %) of city. Nevertheless these settlements face serious problems such as a lack of infrastructure and services, a deteriorating physical environment, a lack of security of tenure, and poverty. These call for immediate attention, otherwise the problems will continue multiplying. The object of this study was to assess the physical, environmental and socio-economic characteristics of the squatter settlement, to identify their improvement priorities, to explore their willingness and ability to pay for upgrading and finally to design an upgrading project proposal. The research included the selection of a typical squatter settlement in Kathmandu city, a physical survey of the existing infrastructure facilities and services including housing condition and a socio-economic survey among all the households with the help of a standardized questionnaire. The information collected was carefully analyzed using statistical techniques. It was found that the dwellers were dissatisfied with the existing conditions, and were eager to participate in the upgrading, attaching a high priority to sanitation, land slide prevention and road construction. Based on the dwellers' priorities, a project proposal for upgrading was designed. Based on the assumption that 23 % of the income can be spent housing, the upgrading proposal is affordable to 95% of the squatter dwellers, if a loan is granted with 16% interest rate and 15 years repayment period.