In the early 1970s the Sudanese Government started a large-scale programme of restructuring squatter settlements and 'native lodging areas' in Port Sudan, because it was realised that the conventional sites and services approach failed to reach the low-income population. Fundamental aspects of the new approach are the residents' strong involvement in the programme and its incremental nature, both with regard to shelter and infrastructure. Political rivalry diluting the neighbourhood committees' representativeness, insufficient institutional arrangements and financial constraints are the causes of a recent slow-down in implementation of the continuing programme.