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Bridging the financing gap for slum and settlement upgrading

This course aims to provide a clear conceptual understanding of the financial services and products that are required to address the complexities of urban settlement development and to provide a set of practical tools for use by practitioners who have the responsibility for financially packaging and implementing home improvement programmes and settlement upgrading projects. There will also be a chance to become familiar with some of the new institutional developments that are taking place including focussed capacity building and systems development.

Improving the lives of slum dwellers is a major objective of the Millennium Development Goals, and a critical component of ensuring a sustainable and equitable future for us all. Policies to address urban poverty and to enable the upgrading of informal, slum and low-income settlements, and, where necessary, resettlement, are an important step in addressing these important challenges. However, little can be achieved if practical mechanisms to finance the development needed are not identified, understood and applied by the key stakeholders involved.

Financing mechanisms need to be able to address not just small-scale one-off projects but the longer term scaling up of solutions that are both acceptable and affordable within the context of developing country realities. Micro Finance is beginning to fill some of the existing gaps, especially with regard to loans for individual home improvement. However the range of financing required to address major settlement upgrading and resettlement is far more diverse and there is a major financing gap that needs to be addressed. This short course has been designed to help practitioners to bridge that gap.

The programme has been developed by the Development Planning Unit, in close collaboration with Homeless International and Happold Consulting. Both of these agencies have extensive experience of slum and settlement upgrading initiatives.Participants will therefore have a rare opportunity to learn with a resource group of experts and peers, and to build an effective network for future support and exchange.

The training programme will be anchored in a number of case studies and exercises that will be used to explore the continuum of financing for slum and settlement upgrading, and to apply a comprehensive range of financial analysis, planning and monitoring tools. The sessions will cover forms of finance, the application of financial management tools, presentations by visiting speakers, assignment work, Excel “clinics”, and opportunities for peer to peer learning. The first week will focus on planning and preparation. The second week will focus on implementation, including the production of a detailed project and/or programme financing proposal. 

The course has been designed for practitioners working on housing, settlement & slum upgrading programmes & projects in local authorities, NGOs, donor agencies, Micro Finance Institutions, banks and other financial institutions. Practitioners should have a background in housing, slum upgrading, urban development or other relevant field. Participants will need to have good basic Excel skills and be fluent in English. English language qualifications such as an IELTS score of 6.5 with a minimum of 6 in each subtest or a paper TOEFL score of 580 plus 4 in written English (TWE) are acceptable. Details of other relevant English language qualifications can be obtained from the Development Planning Unit administration office. Participants are advised to bring their own working laptop.

By the end of the course each participant will have developed a comprehensive financial proposal in response to a specific slum or settlement upgrading scenario, and will have had the opportunity to have this proposal assessed and responded to by an experienced and competent jury. In addition participants will:

  • Understand the continuum of forms of finance required for slum and settlement upgrading
  • Have the capacity to assemble the legal architecture required for financing project and programme loans
  • Be able to use the following tools competently:
  • Project and programme costing and budgets
  • Project & programme cash flow projection
  • Loan repayment calculation & affordability analysis
  • Project viability & sensitivity analysis
  • Project Implementation Plan (PIP)
  • Loan Guarantee Agreements
  • Build Operate Transfer (BOT) agreements
  • Clear outline of legal architecture for loan extension
  • Arrangement for contractor’s bond
  • Risk analysis and risk mitigation & management plan.
  • Have developed the necessary communication & documentation skills to facilitate financing arrangements including bank loan and guarantee agreements.

Caren Levy

View Caren's profile

is an urban planner with experience of working on community-led housing, as well as a long standing Board member of Homeless International and Chair of their Financial Services Group.

Ruth McLeod

View Ruth's profile

is a senior teaching fellow at DPU and has worked in urban finance for more than 25 years, including development of the Community-Led Infrastructure Finance Facility and UN HABITAT’s Slum Upgrading Facility.

Larry English

is the Chief Executive of Homeless International. An architect and urban designer, he was previously Director for Programme Development at Habitat for Humanity International, and has taught at the universities of Natal, Witwatersrand, Pretoria and is at Eastern University, Pennsylvania.

Raja Shankar

View Raja's profile

is the Head of Economics and Business Consulting at Happold Consulting International, with experience both in international development and management consulting.

Course fees

The Course fee is £2300. The fee covers the cost of all tuition and basic course costs, including a field visit. Participants should allow approximately £900 for 2 weeks to cover the cost of living and local travel in London.

Application process

In order to apply for the training programme you must send us all of the following documentation:
1. One application form fully completed.
The application form can either be downloaded clicking here or  be requested from the DPU administration office
2. One copy of your latest Curriculum Vitae (CV)
3. One confidential work reference letter
4. Payment: If paying by electronic transfer then please contact the DPU for details.

If paying by cheque then please make it out to University College London.
Please send the completed application and the relevant documents to:
The Programme Administrator
The Development Planning Unit
University College London
34 Tavistock Square
London WC1H 9EZ
Tel: +44 (0) 20 7679 1111
Fax: +44 (0) 20 7679 1112
Email: dpu@ucl.ac.uk