Document of The World Bank ReportNo: 25913 FOROFFICIAL USEONLY PROJECT APPRAISAL DOCUMENT ONA PROPOSEDCREDIT INTHEAMOUNTOFSDR 15.1MILLION(US$20.5MILLIONEQUIVALENT) TO THE REPUBLICOF GHANA FORA LAND ADMINISTRATION PROJECT July 8, 2003 This document has a restricteddistribution and may be usedbyrecipients only inthe performance o f their official duties. Its content may not otherwise be disclosed without World Bank authorization. AFTS4 CountryDepartment10 AfricaRegionalOffice CURRENCYEQUIVALENTS (Exchange RateEffectiveJuly 31,2002) CurrencyUnit = GhanaianCedis Cedis 1000 = USS0.12 US$l.OO = Cedis 8099 FISCAL Y E h January 1 --December31 ABBREVIATIONSAND ACRONYMS APL AdjustableProgramLoan CAS Country Assistance Strategy CDF ComprehensiveDevelopmentFramework CFAA CountryFinancialAccountability Assessment CLA CustomaryLandAuthority CLAMP CommunityLandAwareness andMobilizationProgram CPAR Country ProcurementAssessmentReport CPPR Country PortfolioPerformanceReview DFID Departmentfor IntemationalDevelopment,UK DPP DetailProcurementPlan EAP EnvironmentalActionPlan EIA EnvironmentalImpactAssessment EPA EnvironmentalProtectionAgency E M EnvironmentalResourceManagementProject ERR EconomicRateof Return EU EuropeanUnion FGD FocusGroupDiscussions FINMI FinancialManagementInitiative FMR FinancialMonitoringReport GBSA Gazzetmentof Globally Significant BiodiversityArea GEF GlobalEnvironmentFacility GLSS GhanaLiving Standard Survey GOG Govemment of Ghana GPI GhanaPlanningInstitute GPN GeneralProcurementNotice GPP GlobalProcurementPlan GPS Global PositioningSystem GTZ GermanTechnical Cooperation IDA Intemational DevelopmentAssociation KNUST KwameNlaumahUniversityof Science andTechnology LAC LocalAdvisory Committee LAP GhanaLandAdministration Project LAPSC LandAdministrationProject SteeringCommittee LAPU LandAdministrationProgramUnit LIS LandInformationSystem LTR LandTitle Registry MLF Ministry of Lands andForestry NGO NonGovernmentalOrganization NIRP NationalInstitutionalRenewalProject NLP NationalLandPolicy NLVB NationalLandValuationBoard NPP NationalPatrioticParty NPV NetPresentValue NFWP NaturalResourcesManagementProject OASL oss Office of Administrator of StoolLands One-Stop-Shop Service PAD Project Appraisal Document PPMED Policy, Planning,Monitoringand EvaluationDepartmentof MLF RSA RapidSocialAssessment SIL Sector InvestmentLoan SOE Statementof Expenses SPN Specific ProcurementNotice TCPD Town andCountryPlanningDepartment UNDB UnitedNations DevelopmentBusiness Vice President: CallistoE.Madavo CountryDirector: MatsKarlsson Sector Manager: JosephBaah-Dwomoh Task TeamLeader: SolomonBekure FOR OFFICLAL USEONLY GHANA LANDADMINISTRATIONPROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 3 2. Key performance indicators 3 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 3 2. Main sector issues and Government strategy 4 3. Sector issues to be addressedby the project and strategic choices 8 C. Project Description Summary 1. Project components 9 2. Key policy and institutional reforms supported by the project 10 3. Benefits and target population 11 4. Institutional and implementation arrangements 13 D,Project Rationale 1, Project alternatives considered andreasons for rejection 15 2. Major related projects financed by the Bank and/or other development agencies 16 3. Lessons leamed and reflected inthe project design 17 4. Indications o f borrower commitment and ownership 17 5. Value added o f Bank support inthis project 18 E. Summary Project Analysis 1. Economic 18 2. Financial 19 3. Technical 21 4. Institutional 21 5. Environmental 23 6. Social 24 7. Safeguard Policies 29 F. Sustainability and Risks 1. Sustainability 30 2. Critical risks 32 This document has a restricted distributionand may beusedby recipients only in the performance of their official duties. I t s contents may not be otherwise disclosed without World Bank authorization. 3. Possible controversialaspects 33 G. Main Loan Conditions 1. Effectiveness Condition 33 2. Other 33 H. Readinessfor Implementation 33 I.CompliancewithBankPolicies 34 Annexes Annex 1: Project Design Summary 35 Annex 2: Detailed Project Description 42 Annex 3: EstimatedProject Costs 58 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 61 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary 66 Annex 6: (A) Procurement Arrangements 67 (B) Financial Management and Disbursement Arrangements 72 Annex 7: Project Processing Schedule 77 Annex 8: Documents inthe Project File 78 Annex 9: Statement o f Loans and Credits 80 Annex 10: Country at a Glance 82 Annex 11: Environmental Impact Assessment 84 Annex 12: Social Assessment 88 Annex 13: Statement o f the Government o f the Republic o f Ghana on Land Policy 101 MAW) IBRDNo. 32475 GHANA LandAdministrationProject Project Appraisal Document Africa RegionalOffice AFTS4 Team Leader: SolomonBekure r Manager: JosephBaah-Dwomoh Sector(s): Generalagriculture,fishing andforestry sector Country Director: Mats Karlsson (100%) Project ID: PO71157 Theme(s): Landmanagement(P) [ ]Loan [XI Credit [ ]Grant [ ]Guarantee [ ]Other: For Loans/Credits/Others: Amount (US$m): 20.50 Proposed Terms (IDA): StandardCredit I 0.00 IDA 8.52 11.99 20.51 CANADA: CANADIAN INTERNATIONALDEVELOPMENT 0.33 0.70 1.03 AGENCY (CIDA) UK:BRITISHDEPARTMENTFORINTERNATIONAL 3.55 5.48 9.02 DEVELOPMENT(DFID) GERMANY:GERMANTECHNICAL ASSISTANCE 1.30 2.67 3.98 CORPORATION(GTZ) GERMANY: KREDITANSTALTFURWIEDERAUFBAU 0.06 5.96 6.03 (UW) NORDICDEVELOPMENTFUND 4.62 2.30 6.92 Total: 25.94 29.11 55.05 _______ ____~ Borrower: REPUBLICOF GHANA Responsible agency: MINISTRY OF LANDSAND FORESTRY Address: P. 0.Box M.212 Accra Ghana Contact Person: Mr.Sulemana Mahama Project Coordinator Tel: (233)-21-687349 Fax: (233)-21-666801 Email: SmahamaaMlf-Gh.Com Estimated Disbursements ( Bank FY/US$m): Project implementation period: 2003 - 2008 Expected effectiveness date: 1013112003 Expected closing date: 1213112008 - 2 - A. Project Development Objective 1. Project development objective: (see Annex 1) The government o f Ghana issued its Land Policy in June 1999. This was subsequently amended by the current National Patriotic Party administration in 2002 as summarized in Annex 13. The long-term goal o f the Government's land policy i s to stimulate economic development, reduce poverty and promote social stability by improving security o f land tenure, simplifying the process for accessing land and making it fair, transparent and efficient, developing the land market and fostering prudent land management. This will be achieved through implementation o f a long term (15-25 years) land administration reform program. The Ghana Land Administration Project (LAP) will be the first phase that would lay the foundation for implementation o f this long-term land administration reform. A major feature o f this first phase L A P i s its role in providing an enabling environment for exploration, testing and learning by doing. The needfor flexibility among and within activities i s emphasized. The specific objective o f the project i s to develop a sustainable and well functioning land administration system that is fair, efficient, cost effective, decentralized and that enhances land tenure security. It would seek to (a) harmonize land policies and the legislative framework with customary law for sustainable land administration; (b) undertake institutional reform and capacity building for comprehensive improvement in the land administration system; (c) establish an efficient, fair and transparent system o f land titling, registration, landuse planning and valuation; and (d) issue and register land titles in selected urban and rural areas as a pilot to test (b) and (c) above and innovative methodologies, including community level land dispute resolution mechanisms. 2. Key performance indicators: (see Annex 1) The progress towards achievement o f the project's development objectives would be monitored through a set o f key indicators which would include: (a) land policy and legislative review completed and codified land legislation drafted and approved by Cabinet; (b) improved land administration procedures and information system implemented making access to land easier and transaction costs lower; (c) reduced number o f land litigation cases in courts o f pilot land titling and registration areas; (d) increased investment in the property sector as security for land owners and users i s enhanced and mortgage financing i s facilitated in pilot land titling and registration areas; (e) increased revenues from land transactions in pilot land titling and registration areas; (f)public sector land agencies are restructured and customary land administration authorities strengthened; (g) NGOs, communities and the private sector play an active role in land administration; and (g) increased land titles registered by women. Key output indicators include: (a) establishment o f at least 50 customary land administration units; (b) one-stop-shop centers established in at least three regions: (c) at least 10 NGOs involved in promoting local level land administration and land management; (d) titling and registration o f 300,000 parcels o f urban land to individuals and at least 80 allodial titles to stools, skins, tendambas clans and families; and (e) reduction in the 35,000 land cases incourts. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supportedby the project: (see Annex 1) Document number: 20185 Date of latest CAS discussion: March 30, 2000 The proposed project is consistent with the Bank's Ghana CAS and the Ghana Poverty Reduction Strategy (GPRS), discussed by the Board on M a y 8,2003. Both the CAS and the GPRS aim at reduction in the incidence o f poverty in both rural and urban areas and strengthened capabilities o f the poor and vulnerable to earn income. The project would address this by facilitating access to land and improving - 3 - security o f rights and interests in land. The legal, policy and institutional reforms envisaged inthe project are in line with the CAS goals o f (i) promoting decentralized and efficient delivery o f key services; (ii) redefining the role o f the state by collaborating more effectively with partners outside the government, especially traditional authorities, civil society and the private sector; and (iii)supporting reforms in public sector management, usingit as vehicle to make progress on important issues such as legal reform, governance/cormption and financial management. The project will support the attainment o f these objectives and those o f the GPRS in three ways. First, improving the land administration framework to reduce conflicts in land ownership and land use, and provide secure land titles in both urban and rural areas. The land titles would assure security o f tenure to land and peaceful possession, facilitating investments in housing, industry, agriculture and services sectors o f the economy that will generate employment and economic growth. Second, reforming and modernizing public sector administration and management o f land and decentralizing land administration services to the local level structures would rationalize land policies and institutional responsibilities for land administration, and streamline operational practices. This would strengthen land use planning and enable transparent and secure land transactions, reduce transaction costs to rural and under privileged communities, thus facilitating investment, and growth while considering the competing interests for land and reserving space for future community development. Third, facilitating participation o f civil society and the private sector would check excesses o f public sector management, reduce land transaction costs and promote transparency in the administration and management o f both public and private land and self help initiatives for growth and development, buildingon the cultural heritage o f Ghana. 2. Main sector issues and Government strategy: Background The different types o f land tenure and the land administration system prevailing in Ghana today evolved over time from the interplay o f the sociopolitical organizations o f the various tribes, clans and families through trade, wars and incorporation; the advent o f colonial rule and subsequent introduction o f tree crop agriculture as well as commercial exploitation o f timber and mineral resources; post independence politics; and urbanization. Differences innatural endowments between the savanna north, the forest south and coastal littoral have also influenced development in trade and colonization, which have in turn affected developments in land tenure and land administration. The basic land laws in Ghana are, therefore, deeply embedded in the sociocultural systems and political institutions of its indigenous societies even though they have been fundamentally influenced by administrative and statutory rules o f the modern state. In all the indigenous social administrations, land is communally held in trust for the tribe or clan or family and administered by the chiefs, tendumbus or heads of these sociopolitical entities. `Indigenes' or members o f these entities had guaranteed access to the usufruct right o f land. Individuals or groups who were unable to access land in their own societies migrated elsewhere and could readily get land for farming. As long as population densities remained low and land had little commercial value, local chiefs historically sought to enhance their influence by increasing the number o f people under their control through incorporation o f non-indigenous groups. The indigenous societies were thus sufficiently accommodating that migrants or `strangers' were able to establish use rights in land at their new place o f settlement through political incorporation, long-term lease arrangement or sharecropping agreement. These arrangements have historically played a key role in making land available to those who needed it, particularly duringthe first half o f the 20th century. The demand for land and labor for growing cash crops such as cocoa and oil palm and exploitation o f mineral resources gave rise to chiefs allocating land concessions to prospectors and migrant farmers - 4 - under long-term lease arrangement or even outright sale o f land. The colonial policy o f indirect rule vested in chiefs more exclusive administrative power over their people, removing social restraint over their authority inherent in the indigenous system o f authority, allowing some chiefs to pursue private gains at the expense o f communal interest and progress. With commercialization of land for agricultural and urban development, chiefs and heads o f clans and families became more than mere trustees on behalf o f their communities, increasingly allowing them the right to freely dispose o f unallocatedland. This emphasizedthe relationship between some o f the chiefs and members o f their communities into one approximating that between landlords and tenants. Some chiefs and heads o f clan and families became unscrupulous and gave out rights on the same land to two or more parties. Inurban and peri-urban areas, not only family heads, but also individual family members sold or leased land without reference to their head, resulting in confusing assignment o f rights on the same parcel o f land to multiple parties. These malpractices have given rise to lengthy litigation clogging the courts. The Greater Accra region alone i s reported to have over 15,000 land disputes pending court adjudication. Colonial land policy also introducedthe notion o f eminent domain, providing for compulsory acquisition o f stool, skin and family lands for public needs. Although compensation was stipulated for fixed developments on the land, the legislation did not provide for compensation o f land itself, nor for the inconvenience of people being dislodged from it. Post independence governments used this notion with impunity to establish state farms, plantations, the Volta Lake, the Volta River Authority, airfields and other public utilities and amenities. Some claims o f compensation arising out o f compulsory acquisition o f land by the state in the 1960s are still outstanding. In some instances, while very large tracts o f land were acquired by the State for specific purposes, their use has been changed and/or subdivided and leased out to non-indigenes, gifted or outright sold without consultation o f the land owners. Such grievances have created a great deal o f resentment and distrust among traditional landowners towards the local and national governments. The post-independence government enacted legislation that vested stool, skin and family lands in the State in trust for the benefit of the allodial owners and their communities. The State acquired the right o f administration over these lands and specified how land revenues will be shared between the state, the local government and the allodial owners. Much to the chagrin of the chiefs and clan and family heads, the Lands Commission and later, the Administration o f Stool Lands were created to administer these lands and their revenues. The operations o f these institutions and their bureaucracies have been cause o f dissatisfaction and frustration by all parties having to deal with them. The granting o f land use rights, their registration and the administration o f the land revenues have not always been transparent, Rent seeking behaviors have been rampant in the public land agencies. The allodial owners o f land are against the high proportion o f land revenues given to district assemblies. Members o f the communities are concerned that there i s no legal requirement for chiefs to share the revenue they receive with community members. In general, there i s a strong demand that land should be administered, not by government agencies, but by the allodial landowners themselves and through procedures which are accountable to community members. Because of the insecurity surrounding land rights, land figures very little in the valuation o f residential and commercial property, thus minimizing its value in the economy and as collateral for loans as well as for tax assessment by both local and national governments. Furthermore, it undermines both national and international investor confidence inland and other sectors o f the economy. The Government'sLandPolicy Overtime, as land became more scarce, indigenous arrangements under which individual members o f the lineage enjoyed general rights o f access to land have been rendered untenable. Indigenous tenancies have - 5 - been generally replaced by sharecropping (abusa and abunu systems) that enabled local landowners to gain labor for their farms. Commercial transactions in land and the transformation o f inheritance rules compounded by population pressure have given rise to increased litigation over land as individuals sought to exclude those they believed to hold illegitimate claims, and especially migrant farmers. Post-independence governments enacted a multiplicity o f legislation to deal with specific problems in an ad hoc basis, not forming part o f a comprehensive policy o f land acquisition or land use administration. It was the realization o f the need for more coherent long-term landpolicy and its effective administration that instigated GOG to develop a national land policy in 1999, as amended in 2002, and seek ways o f implementing it. The specific objectives o f GOG's land policy are to: (a) harmonize statute and customary laws to facilitate equitable access to and enhance security o f tenure o f land through registering systematically all interests in land; (b) create and maintain effective institutional capacity and capability at the national, regional, district and where appropriate, community levels for land service delivery; (c) promote community and participatory land management and land use planning within a decentralized planning system; (d) minimize and eliminate where possible the sources o f protracted land boundary disputes, conflicts and litigation in order to bring their associated economic costs and sociopolitical upheavals under control; (e) formalize land markets where appropriate and instill order and discipline to curb the incidence o f land encroachment, unapproved development schemes, multiple or illegal land sales, undue land speculation and land racketeering. A number o f issues that require immediate attention have been identified in many previous land administration related studies and are summarized in the National Land Policy document. The main sector issues can be characterized as: (i)inadequate policy and legal framework; (ii)fragmented institutional arrangements and weak institutional capacity; and (iii)underdeveloped land registration system and inefficient land market. It i s interesting to note that inequity in land holdings has not been an issue in the past because the rules governing access to land allowed families to claim land roughly proportionate to their total labor endowment, resulting in generally little disparity in land distribution, These mechanisms may have broken down inrecent years, particularly where rural areas are converted to urban house plots. Women and poorer members o f the group have been shown to often lose land rights in this process. The absence o f development o f a large number o f large scale commercial farms in Ghana has also helped check inequities inland distribution. Inadeauate Policv and Legal Framework: Land administration in Ghana i s govemed by both customary and enacted legislation. Courts have also ruled on customary subjects resulting in a body o f legal precedents for some land related customs. Some 166 state laws that regulate land administration and establish mandates for different agencies exist in the statute books. Many o f these laws and regulations conflict with one another and some are outdated andor irrelevant. Their existence i s used often to confuse issues, delay implementation o f programs and prolong land litigation in courts. While lack o f a comprehensive land policy framework that has bedeviled land administration i s addressed by the National Land Policy, it has not been implemented. Inmany areas, the Policy provides broad strokes which now need elaboration. Inadequate security o f land tenure due to conflicts o f interest between and within land-owning groups and the state, and the slow disposal o f land cases by the courts adds to land transaction costs and frustrates potential indigenous and foreign investors. Compulsory acquisition by the state o f large tracts o f lands that have not been fully utilized and for which payment o f compensation has been delayed has created intractable problems. This policy has left landowners almost landless, denied their source o f livelihood and made them tenants on their own lands, giving rise to poverty and disputes between the state and the stools, as well as within the private land sector. Divesting o f land in the northern part o f the country has unintentionally heightened disputes among landowners and land - 6 - authorities as different interest groups struggle to capture the returned land under their own authority. An added dimension i s the confusion generated concerning the amount o f compensation to be paid for lands developed for the communities' direct benefit, such as schools and clinics. Lack o f consultation with land owners and chiefs in decision making for land allocation, acquisition, management, utilization and development o f state acquired lands has generated intractable disputes between the state and the private land owning groups and within communities. Fragmented Institutional Arranpements and Weak Capacitv: In most parts o f the country land i s communally owned, held in trust for the community or group by a stool or skin as symbol o f traditional authority or by a family. Stool or skin lands are a feature o f land ownership in almost all the Akan traditional groups in southern Ghana and in most tribes and clans in northern Ghana. Sandwiched between the public and private lands i s a small percentage o f vested lands whose administration are a form o f split ownership between the state and the allodial owners. Scattered all over Ghana are also a number o f social groups that do not recognize a stool or skin as symbolizing private communal land ownership. In such instances, the traditional arrangement i s normally that o f vesting land ownership in the clan, family or individual. This practice i s prevalent inthe Volta Region and in some traditional areas in other regions. The state has responded to this situation by creating a number o f land sector agencies with fragmented land administrationresponsibilities. The main agencies are the: (i)Lands Commission, (ii)NationaVRegionalHouse o f Chiefs; (iii) of Administrator o f Stool Lands; (iv) Land Valuation office Board; (v) Survey Department; (vi) Land Title Registry; and (vii) Department o f Town & Country Planning. Enabled by enacted legislation, the different agencies and offices administer public lands, stool lands and vested lands and maintain land records, without appropriate mechanisms for coordination o f land use policies, plans and programs. The relationship among these has been dominated by the public sector that defines the rules and enforces compliance. The state agencies have not developed good mechanisms for active collaboration with the traditional authorities and all land stake holders to ensure proper land records are kept and maintained. This results in lengthy land acquisition procedures for agricultural, industrial, commercial and residential development purposes due to conflicting claims to ownership and varied and outmoded land disposal procedures. Underdeveloped Land Repistration svstem and Inefficient Land Market: Except in few urban centers that have benefited from earlier urban renewal and development projects, there i s no systematic cadastral mapping, registration and titling program in Ghana. Indeterminate boundaries o f stool, skin and family lands resulting from lack o f reliable property maps andor plans and the use o f old inaccurate boundary maps, lead to protracted litigation and freezing o f land for development. Frequent encroachments on both public and private lands, multiple-sales o f residential parcels, unapproved development schemes, resulting in haphazard developments, environmental degradation and frequent violent confrontations between and among opposing claimants. The inefficiency o f the land markets i s manifested by the unmet demand, in the urban market, for housing, industrial and commercial land because o f shortage of secure unencumbered lands. This shortage has led to high urban land prices and subsequently influenced the development o f peri-urban lands in a haphazard manner not supported by appropriate infrastructure services like roads, drainage, water and electricity. Many such transactions are informal and therefore the revenues that could be generated for national and local governments are lost, but these governments bear the costs of such developments through increased demand for social services and abating environmental and health problems associated with such settlements. - 7 - 3. Sector issues to be addressed by the project and strategic choices: The proposed project would address all the issues raised inthe LandPolicy Statement in an environment o f high stakeholder participation. Land laws and regulations in the statute books will be reviewed and rationalized in order to produce unambiguous and clear land legislation consistent with customary practice and the 1992 Constitution. Public land agencies would be restructured and reformed and their capacity strengthened to ensure better cooperation and delivery o f decentralized and efficient land administration services. The system for storage and retrieval o f land records will be overhauled and improved to enable easy access to public, traditional and private interests via digital search. Partnership with traditional authorities inland administrationhas been very limited. Recognizingthat close to 80% o f the land area o f Ghana i s held in customary tenure, the project would seek to assist traditional authorities to develop local land administration in a transparent and accountable manner and with increased participation o f community members on whose behalf they act. The project will explore with traditional authorities appropriate divisions o f responsibility and linkages with public land agencies. Collaborative programs for simplified mapping, registering and titling customary land would be developed and implemented in partnership with traditional authorities, civil society and the private sector. ,One-stop-shop centers and local government land administration offices would be set-up and land record data banks established. Appropriate evolving roles, powers and relationships among customary land administrations, local governments and state agencies will be explored, defined and tested with an emphasis throughout upon improving public accessibility and accountability. Under the 1992 Constitution, the District Assemblies are allocated 55% o f revenues accruing from transactions in stool and skin lands after administrative costs are deducted. They are also enjoined to acquire land for investment and development purposes. Weak land administration has not enabled the district assemblies to fully benefit from such revenues or to use these for developing services inthe areas from where the revenue originated. The acquisition o f land for development projects has also been a problem. The project would bringland administrationservices to the doorsteps o f the populace. It would work with selected district assemblies and the Town and Country Planning Department to help them improve the delivery o f land use planning services and ensuring adherence to planned development o f human settlements. The capacity o f the Ministryo f Land and Forestry (MLF) to formulate policies and monitor and evaluate the performance o f the land sector and the impact o f land policies and development efforts would be strengthened. Public awareness and education programs would be launched to inform the populace o f developments and how they may improve their land security. The project will also adopt a participatoryapproach wherever possible. Consultationwith andinvolvement of the public will be specifically sought inthe design and implementation of policy, legislative and institutional reviews. Representative participation will be sought when designing the system for cadastral mapping, land titling and registration and management o f land records to ensure these are useable by clients. The project will explore the establishment o f local land fora as a place where local concerns and interests may be expressed and discussed. These would be first developedinpilot areas. - 8 - C. Project Description Summary 1. Projectcomponents(see Annex 2 for a detailed descriptionandAnnex 3 for a detailedcost breakdown): The Ghana Land Administration Project will comprise the following components: Harmonizing Land Policy and Legislative Framework 1.16 2.I 0.19 0.9 Institutional Reform& Development 29.22 53.1 9.23 45.0 Improving Land Titling, Registration, Valuation and 16.30 29.6 6.92 33.8 Information Systems Project Management, Monitoring and evaluation 7s1 I 13.6 3.30 16.1 PPF 0.86 1.6 0.86 4.2 Total Project Costi 55.05 100.0 I 20.50 I 100.0 TotalFinancingRequired I 55.05 I 100.0 I 20.50 I 100.0 ComponentI:HarmonizingLandPolicy andRegulatoryFrameworkfor SustainableLand Administration 1.1 Revisions o f policies, laws and regulations for an effective and efficient land administration 1.2 Strengthening o f civil courts to expedite resolution o f land cases and developingalternative land dispute resolutionmechanisms 1.3 Inventory o f all acquired state lands and determination o f outstanding compensation 1.4 Policy studies: i.Landtenureregistrationtoformulategovernmentpolicyonwhatrightswillberegisteredon land titles; ii.Divestitureofvestedlands; iii.Financeandfeesstructureoflandadministrationsystemtoformulategovernmentpolicieson fees and taxes for registrationo f land transactions; iv. Gender study and analysis; and v. Assessment o f current land administrationservices providedby customary land authorities, 1.5 Land Policy development process Component11:InstitutionalReformandDevelopment 2.1 Restructuringo f public sector land agencies; 2.2 Decentralizing and strengthening land administration services; 2.3 Strengthening customary land administration; 2.4 Strengthening private land sector institutions; and 2.5 Strengthening land administrationand management training and research institutions ComponentI11ImprovingLandTitling, Registration,ValuationandInformationSystems 3.1 Developing the cadastre and land information systems; 3.2 Cadastral mapping; - 9 - 3.3 Establishingmodel landtitling and registrationoffices; 3.4 Improving deed and title registration; 3.5 Landuse planning and management 3.6 Establishingland valuation data base; 3.7 Piloting demarcation and registrationof allodial landboundaries; and 3.7 Piloting systematic landtitling and registration. Component IV: Project Management, Monitoring and Evaluation 4.1 Project coordination and management; 4.2 Human resources development; 4.3 Communication strategy; and 4.4 Monitoring and evaluation and impact assessment. 2. Key policy and institutionalreforms supported by the project: One o f the key policy issues supported by the project i s the revision o fthe existing plethora o f conflicting and obsolete land laws and regulations in the statute books as well as judicial decisions relating to interests in land and land administration in order to streamline them and make them clear, unambiguous and consistent with customary practice and the 1992 Constitution. Civil courts would be established and strengthened to expedite settlement o f the large number (about 35,000) pending land cases clogging the courts and to avoid the accumulation o f pending cases in the future. Inaddition, alternative land dispute resolution mechanisms with active participation o f communities will be encouraged and facilitated under the project. A major resentment of landowners towards successive governments i s the issue o f lands compulsorily acquired by the state for some o f which compensation has not been paid. Other lands so acquired by the state for specific reasons have been put to other uses or the interests transferred to third parties without the consent of the landowners. In some cases the state has acquired land far in excess of its need. An inventory o f state lands will be made to determine their status to serve as a basis for decisions for compensation and return o f land to their original owners. Strong partnership will be developed with traditional authorities for effective and participatory land administration and management and for institutingalternative land dispute resolution mechanisms. There i s a growing need for better information as a tool to prevent multiple allocations of the same parcel of land by customary land authorities and to improve their transparency and accountability. This would be assisted by improvements to record keeping concerning stool, skin and family land allocations. Customary land secretariats (CLS) o f the chieftainships will be developed, their capacities strengthened through training and supported on a pilot basis in selected areas. This would start with existing secretariats o f the Kumasi Traditional Council and Gbawe family lands in Accra, but would be expanded to at least 50 CLS. This will also promote and strengthen decentralized land administration. The land titling, registration and valuation program will address the issue o f insecurity by systematic ascertaining o f interests in land on a pilot basis. It i s acknowledged that land titling would not be appropriate in every case and may not deliver the intendedbenefits. Formal land titling may be expensive for the rural population and difficult to justify in every part o f the country. In some cases, land titling may risk altering or abolishing customary interests in land, thus creating new problems. Therefore, one has to proceed cautiously in implementing systematic land titling and registration. Under the proposed project, the process will test various assumptions, hypotheses, policies, procedures and methodologies involvingtitling interests in land and registering and valuing them. The experience gained and the lessons learnt from the pilots will provide the basis for scaling-up operations in subsequent land administration projects. - 1 0 - The institutional reform under the project will comprise revisingthe mandates and roles o f the six public land agencies, streamlining and restructuring them, if possible, under one land administration umbrella and decentralizing their operation for delivery o f timely and efficient land administration services. Modernizing o f operations with improved use o f technology, record systems and information management will be an integral aspect o f the institutional reform. Integrateduser-friendly one-stop-shop centers will be established, initially inAccra and Kumasi and subsequently at regional and distinct levels inorder to makeland administrationservices more accessible, efficient andresponsive to the community. Concomitant with this effort, the project will facilitate the participation o f the private sector in cadastral mapping and land titling and valuation for promoting efficient land markets. Professional associations o f chartered surveyors, land valuers and real estate agents would be strengthened to build the capacity o f the private sector and to enhance the skills and promote ethical professional conduct o f their membership. The production o f surveys and cadastral maps will be contracted out to the private sector. Civil society will be involved in promoting alternative land dispute resolution mechanisms and awareness creation and education campaigns implemented under the communications strategy o f the project. 3. Benefitsandtarget population: The legislative reviews that will lead to consolidating the plethora o f land laws and harmonize them with customary land administration practices and the institutional reform that will streamline and restructure public sector land agencies, strengthen their capacity and decentralize their operations, in collaboration with the traditional land councils, will benefit the entire population o f Ghana. The demarcation o f boundaries o f allodial land owners and titling and registration o f land interests will increase the security o f land tenure for the communities in the pilot areas selected for systematic land titling. Specific beneficiaries o f the project are as follows. Traditional Land Owners: Customary land owners have often relied on courts during land disputes to determine their boundaries. Often court rulings are contested and result in further appeals with attendant highcosts and freezing o f lands from development. The project would promote the development o f local conflict resolution mechanisms. The mapping o f traditional land boundaries and issuing o f land titles to cover such holdings, would facilitate the resolution o f boundary conflicts. The courts would be strengthened to expedite the resolution o f the large number o f land cases clogging the court system. In addition, training would be provided to traditional owners in basic land administration and records management. Partnerships developed inthe course o f the project implementation would be sustained with assistance and encouragement to develop land offices o f traditional authorities such as the Asantehene's Land Secretariat inKumasi and the land administration o f the Gbawe family in Greater Accra. Vulnerable GrouDs: : Several areas o f the forest belt and the transitional zone are settled by poor farmers who are not native to their areas o f operation under various forms o f tenancy arrangements with their hosts. Due to the undocumented nature o f the arrangements, tensions often arise and sometimes flare up into confrontations. With land shortage, strangers and tenants sometimes find that landlords or chiefs change the terms o f their land occupation unilaterally. Recent research shows that strangers and tenants who are women are afraid to put their land under fallow for the usual periods in case this gives landlords an excuse to repossess the land. This affects the productivity o f their farms. In all areas of Ghana women constitute a large percentage o f the farming population. However, their land rights are not clearly defined and documented and many stand the risk o f dispossession once they are no more with their spouses or families, when they are widowed or when land shortage becomes acute. The project would sponsor specific studies into these phenomena to enable a negotiated mechanism to be established for the registration o f these types o f interest in land. It would work with customary authorities to help them adopt new procedures to attend to the land rights of women, tenants and strangers. The project -11 - would also seek to institute legislative protection o f the rights o f individuals, very often poor farmers who stand to be evicted through acquisition o f land by the state or local government or through urbanization. Traditional authorities will be assisted to devise formula which ensure that poorer members o f the community are not made landless when rural lands are converted into urban housing plots. Land litigation and the threat o f violence on disputed lands discourage domestic and international investors who seek land for development. The provision o f secure titles to land would facilitate orderly and legal acquisition o f land for development either by outright purchase or long-term lease thus enabling land to serve as collateral for credit to improve and develop land. Simplification o f procedures and reduction in transaction costs will substantially widen the range o f beneficiaries. Special attention would be paid to issues o f land rights in the north o f the country where the rural poor constitute the larger percentage o f the population National and Local Governments : It i s expected that the project will generate incrementalrevenue to both national and local governments. These will accrue from registration fees, estate property tax, capital gains tax and stamp duty. The emphasis i s not so much on increased taxing mechanisms but equity in the application o f existing ones. Thus, increased revenue will accrue from (a) an increase inthe proportion o f land titled and registered; (b) improved efficiency in land administration, making registration cheaper and easier; and (c) an invigorated land market in rural and urban areas. Higher revenues would also result from higher land values arising from rising land and property prices reflecting a future net income stream created by land titling and registrationand more objective and improved methods o f land valuation which the project will promote. Another benefit to all levels o f government will be the clearing o f court cases much faster and removal o f the barriers to investment and development which exist with the current system o f land acquisition. Land management functions are currently centralized at the national and regional levels. There i s little consultation and coordination between land agencies and the District Assemblies. Assemblies will benefit by the decentralization o f land management functions to the districts through being able to link their service provision with land administration developments. Both human capital as well as material resources such as equipment for land use planning would be provided by the project. The project's support to district Town and Country Planning Departments in upgrading o f the planning system, processes and practices, training staff and provision of logistical support will enable proper land use planning and implementation. The project will spearhead building a more responsible attitude to land management among public land administrators as well as the general public. Land Sector Apencies: The project will benefit land sector agencies through streamliningtheir functions and fostering cooperative production o f land administration services, if possible, under one integrated umbrella. They will benefit directly through capacity building in both human and material resources. Staff would undergo various forms o f technical and professional training; and equipment, improved office space and work environment and other resources would be provided. This would improve performance and enable MLF to formulate appropriate land policies and to monitor and evaluate land sector activities more efficiently. Private Sector Enterprises: Land acquisition for investment purposes are often fraught with uncertainty as a result o f land disputes over different interests in the same parcel o f land. The project would assist in identifying the land ownership categories and providing them with secure titles. Private sector entrepreneurs could then transact on these lands without fear. Secure and transferable land titles would revitalize land and financial markets, particularly in urban settings. In addition, some o f the project activities in the form o f cadastral mapping and surveying would be contracted out to private firms and individuals. Capacities of those engaged in these functions and in real estate markets would be - 1 2 - strengthened through training and support to their professional associations. These activities further strengthen the role o f the private sector inthe economy. Central Government and Securitv Apencies: Land disputes often degenerate into violent confrontations that cause losses o f life and property, disrupting normal socioeconomic activities. Considerable time, energy and cost i s expended by Government and security agencies to contain such conflicts. The project would, through participatory approaches, promote local conflict resolution mechanisms and provide secure titles to land and hence minimize the threat o f land related disturbances. The judicial system will also benefit as the project would provide resources to expedite settlement o f land cases and introduce alternative dispute resolutionmechanisms that would minimize court litigation. Research Institutions: Research institutions have been engaged in research on land issues for a long time and have contributed to understanding the limitations and inadequacies o f the land administration system in Ghana. DFID and GTZ have commenced an initiative to improve learning about land tenure in the region and fostering collaboration with other West African states especially Francophone West Africa. The project would involve these development partners to foster continuous research on land tenure issues and development and their impact on people. 4. Institutionaland implementation arrangements: Proiect Management and Coordination. The project would be implemented by MLF, the land sector public agencies, the Ministry o f Justice, traditional councils, academic and research institutions, NGOs and the private sector. However, the project's overall management will be the responsibility o f the Chief Director (CD) o f MLF. The Land Administration Programs Unit (LAPU), the secretariat o f the project, will be located in the CD's office and will report directly to the CD. A Project Coordinator will head L A P U and will be responsible for coordinating and monitoring the day to day activities o f the project under the guidance o f the CD. More specifically, the L A P U staff will ensure that all the technical assistance and other inputs the implementing agencies (IAs) require for implementing agreed upon workplans and budgets are provided adequately in a timely manner. L A P U would be responsible for organizing training, workshops and seminars and implementation o f the communication strategy under the project. The detailed terms o f reference o f LAPU and its staff are provided in the PIM. The heads o f all I A s will be responsible for the implementation o f components andor sub-components or activities assigned to them for implementation. They will execute the annual work plans and budgets agreed upon, monitor and report on progress achieved and returns on expenditures. Financial management and procurement involving national and international shopping and bidding will be the responsibility o f the Finance and Administration Department, MLF. IAs will finance operating expenses and procurement o f small-ticket items on the basis o f an imprest advance whose expenditure has to be fully accounted for prior to its replenishment. While overall responsibility for monitoring and evaluation will be that o f the PPMED, MLF, monitoring o f implementation progress will be the responsibility o f I A s with guidance and oversight by PPMED. Key monitoring indicators will be agreed upon and reporting formats developed jointly by PPMED and I A s that will utilize the monitoring information as management tools to improve upon their own performance. The I A s will submit their monitoring reports to PPMED at agreed intervals. PPMED will be responsible for compiling monitoring reports o f all IAs into a coherent whole report of the project for GOG, its development partners and the public at large. Beneficiary assessment and impact evaluation work will be contracted out to academia, think tanks, NGOs and private consulting firms. PPMED will, in consultationwith IAs, be responsible for preparing the TORS, selecting and supervising the consultants contracted to carryout beneficiary assessments and impact evaluation. PPMED will be strengthened with additional staff, training and logistics to carry out its M&E functions effectively. - 1 3 - Proiect Oversight: MLF will be assisted in the implementation o f the project by two oversight committees. A Lands Policy Steering Committee (LPSC) that will provide guidance on the policy and management aspects o f the project and a Lands Sector Technical Committee (LSTC) that will provide guidance and supervision on the technical aspects o f the project. Members o f the LPSC will be the principal stakeholders and prominent professionals in Ghana's land policy scene; i.e.: (i)Minister, MLF (Chairperson); Deputy Ministers o f Ministry of: (ii) (Lands); (iii)Justice; (iv) Local Government MLF and Rural Development; (v) Information and Presidential Affairs; (vi) Environment and Science; (vii) Food and Agriculture; (viii) Women and Children's Affairs; (ix) Finance and Economic Planning; (x) Chairman, Select Committee o f Parliament on Lands; (xi) Representative, National House o f Chiefs; (xii) Renowned land tenure scholar; (xiii) Renowned jurist; (xiv) President, Ghana Bar Association; (xv) representative o f land sector NGOs; (xvi) Representative o f Academic or Research Institutions; and (xvii) Heado fthe National Women's Development Council. The Project Coordinator will be Secretary to the LPSC. The LSTC will be chaired by the Chief Director, MLF and comprise all the heads o f all the project implementation agencies as well as the Technical Director (Lands), MLF; Director, Finance and Administration, MLF; Director, PPMED, MLF; Coordinator, National Institutional Renewal and representatives o f the ministries o f Information and Finance and Economic Planning and representative o f land sector NGOs and the Bar Association. The Project Coordinator will be the Secretary o f the LSTC. Staffiw of LAPU: LAPUwill be mannedby six professionals to enable it coordinate implementationo f the project, provide facilitating services for project I A s and follow-up on pending issues These will be: (i) ProjectCoordinator; (ii) Advisor; (iii) ScienceSpecialist;(iv)PublicAdministration The Legal Social Specialist; (v) Communications Specialist; and (vi) Internationally Recruited Project Management Advisor, The job description o f these specialists will be included in the PIM. The staffing o f the L A P U with these specialists will be a condition o fdisbursement o f IDA funds under the project. Proiect Execution: The project components will be executed on the ground (district to regional and national levels) by the various I A s (the public sector agencies as restructured under the project, traditional authorities, Ministry of Justice, KNUST, professional associations, etc.) on the basis of agreed upon annual program and budget approved by the (LPSC). The responsibility of the Project Coordinator will be to (a) facilitate the work of these implementingagencies andto service their needs through the timely disbursement of funds and procurement of goods and services; (b) arranging for training of staff in accordance with the human resources development plan; (c) ensuring that the monitoringand evaluation work are carried out properly andreported upon promptly; (d) ensuring that the public awareness and education and public relations activities of the project are conducted in collaboration with project implementing entities; (e) generating financial and project implementation reports for GOG, development partners and the public at large; (f) ensuring that all land data is accessible and exchanged between project partners as required; (g) acting as secretary to the two oversight committees, LPSC and LSTC; and (h) liaising with the Ministry of Finance and Economic Planning, other relevant ministries and agencies, NGOs, the private sector and development partners on project related activities. - 14- D. Project Rationale 1. Project alternatives consideredand reasons for rejection: Key design alternatives contemplated for the project were whether: (i) project would be financed the through a learning and innovation loan (LIL) or adaptable program loan (APL); (ii) the focus would be on broad policy, legislative and institutional reform or narrower institutional reform that would emphasize improving efficiency o f land administration via titling, records management and promoting private participation in cadastral surveys and titling, etc. (iii) titling and registrationo f only rural lands or both rural and urban lands would be included; (iv) sporadic or systematic contiguous land registration approach would be used; and (v) pilot areas would be selected for cadastral mapping, registration and titling or coverage o fthe whole country would be attempted. FinancinP the Project Through a Learning or Adaptable Prowam Loan (LIL,APL): Although the project i s envisaged as the first phase o f a long-term program lasting over 15 or more years, a sector investment loan (SIL) was deemed more appropriate as the focus o f the project would be on the development o f the policy and regulatory framework, building institutions and testing processes, procedures and methodologies in land administration. As policy, legislative and institutional reforms are difficult and lengthy processes, it was deemed that they would not be amenable to clearly identified and time-bound triggers required for an APL. Broad vs. Narrow Policy, Legislative and Institutional Reform. Although substantial efforts would be required in revising current legislation and customary laws and policies and restructuring land sector agencies, the situation in Ghana i s ripe for the broad reform approach as the sector problems are recognizedin the government's Land Policy Statement which lays out the principles for addressing these issues. The intractable land problems and disputes mentioned earlier cannot be hlly resolvedwithout the streamlining and harmonization o f the prevailing contradictory policies and legislation and reforming the non-collaborating and inefficient public sector land agencies. Resolving these problems as expeditiously as possible would be in the interests o f all stakeholders and it would not be difficult to commit GOG to this broadapproach. Rural vs. Urban Lands. The selection o f the broad policy, legislative and institutional reform approach requires joint consideration o f rural and urban land issues. Furthermore, many urban areas in the southern part o f the country are sprawling fast into rural lands. Dealing with both rural and urban issues simultaneously would ensure the emergence o f consistent policies and legislation that would protect the different interests in land and the development o f procedures for cadastral mapping, systematic titling and registration o f land and land records management. Of particular importance in supporting sustainable land management will be the project priority to land use planning in peri-urban areas where problems o f land conflict abound. Sporadic vs. Systematic Land Redstration. The sporadic approach involves preparing cadastral maps for large tracts o f land and then carrying out land registration for those who are interested in land titles after the maps have been produced. Experience in other countries shows that this i s a very slow and expensive process. The systematic land registration approach involves mapping and registeringland titles simultaneously in a contiguous manner covering lands sub-district by sub-district, resolving boundary issues o f allodial owners through community participation as the cadastral mapping and registration proceeds. The systematic approach was chosen as the more appropriate method for Ghana. However, this will be attempted on a pilot basis to be scaled-up in subsequent projects. Pilot vs. National Coverage. Although the final aim o f the project would be to cover the entire nation with cadastral mapping, registration and titling, the first phase o f the project will concentrate efforts on selected areas, representing the different land tenure patterns prevalent inboth rural and urban situations, Very useful lessons would emerge from the implementation o f these pilots with respect to participation - 15- o f traditional land authorities and communities, technical and logistic issues in land titling and registration, as well as land records management and inter-agency collaboration. These lessons would be used in scaling-up the program to the national level in subsequent phases. 2. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned). Latest Supervision Sector Issue Project (PSR) Ratings (Bank-finance1 projects only) Implementation Development Bank-financed Progress (IP) Objective (DO) 1.Rehabilitation and improvemento f Urban I1- closed June 1999 S S essential infrastructure and capacity development o f District Assemblies; Institutionalreformo fhousing sector parastatals; Upgrading o furban infrastructure inTema and Kumasi; and line o f credit to establish a pilot housing finance sub-project. 2. Institutionaldevelopment to support 3hana Environmental Resourcc S the implementation o f the Management Project (GERMP) Government's Environmental Action .closed 1999 Plan (EAP). 3. Establishthe institutional and Vatural Resource Management S operational framework for sustainable, Program Phase I- ongoing participatory management o f Ghana's land and forest resources. 4. Strengthening municipal Jrban 5 Project funded by IDA U management to ensure the sustainable mdNordic DevelopmentFund. delivery o f adequate urban March 2000 - ongoing infrastructure and services, particularly inunder-served urbantowns; and Urban infrastructure rehabilitation and construction. 3ther development agencies 1Capacity buildingfor DAs 3UDAsCapacity building xoject - ongoing 2. Civil service reformfor the entire 3FID Civil Service Reform public sector for performance ?roject - ongoing improvement 3. Land tenure studies in collaboration 3FID and GTZ Program on with French speaking West African Land Tenure Research - countries (IIED) mgoing 4. Land use planning study ;A0 '/DO Ratings: HS (Highly Satisfactory), S ( atisfactory), U (Unsatisfactory), HU (Highly Unsatisfa ~ ory) - 16- 3. Lessonslearnedandreflectedinthe projectdesign: The World Bank has assisted many land reform and titling projects since the formulation o f its "Land Reform Policy Paper" in 1975. Three major lessons can be drawn from the Bank's experience in this projects over the past 25 years. First, land policy should be viewed as an integral element o f a broader policy dialogue rather than as a string o f narrowly oriented technical interventions. Experience shows that a lack o f consensus on the broader subject o f land policy has often compromised the effect on development o f specific interventions such as land titling. Moreover, the social and political sensitivity o f land issues and the need to adapt to site-specific conditions often require that carefully designed, small circumscribed area experiments should be conducted and evaluated before any fundamental nationwide policy change i s implemented. Second, land titling should be area-based, that is, it should cover an entire area at once (systematic registration), and fit within a broader strategy o f rural development. Otherwise, imperfections in other factor markets may undermine or even eliminate the advantages from possession o f title. Third, there i s a rediscovery o f the value o f traditional land rights arrangements. In some areas, comparing with freehold titles, traditional tenure arrangements may be more cost-effective in increasing tenure security and even in providing a basis for land transactions. The proposed project takes into account the above lessons by emphasizing broader policy dialogue, systematic registration, and decentralization o f land services taking into account local situations and participation o f the stakeholders including traditional or customary land councils operating under chieftainships. Community involvement in development projects in agriculture, water and forest management in Ghana has seen considerable progress. There i s need to encourage such stakeholder participation to obtain their input in land dispute resolution, titling and registration o f interests in land. In the Ghana Urban I1 mapping programs, the private sector has facilitated the effort and freed the Survey Department to concentrate on other aspects o f map production. The role o f the private sector will be expanded to include not only surveyors but also solicitors and private contractors and NGOs in decentralization o f land management and capacity development in customary land administration. The proposed project will facilitate this and build the capacity o f the private sector through the training institutions offering diploma and degree courses in surveying and land administration and management and through professional associations o f chartered surveyors, land valuers and real estate agents. 4. Indicationsof borrowercommitmentand ownership: Improving land administration has been the subject o f several public discussion and pronouncements by GOG. This is reflected in the Ghana Poverty Reduction Strategy Paper and the 1999 National Land Policy, subsequently amended by the NPP Government. The govemment has committed some resources for improving urban land administration. The Urban development projects assisted by the Bank and other donors have included urban land administration sub-components. Institutional support and technical assistance was given to land administration agencies. A number o f studies were carried out (including review o f the Survey Department, records storage and management, statistical review o f parcels o f land subject to conveyancing in Accra and Kumasi, and urban land administration). Large scale photo-maps were produced for Accra and Kumasi. About 87,000 properties were re-evaluated in Kumasi, Tamale, and Sekondi-Takoradi and about 1,200 land titles were issued inAccra and Kumasi. The Urban V Project includes a $0.55 million mapping component for producing digital and hard copy base maps for 25 towns and for building capacity in the Survey Department and regional survey offices and the 23 District Assemblies involved. Inhis inaugural speech in2001, the President o f the Republic o f Ghana mentioned facilitating access to land for economic development as one o f the thrusts o f his administration. GOG has subsequently promised to return the administration and management o f vested lands to its allodial owners and pay outstanding compensation which has been the source o f discontent among affected customary land - 17- owners. GOG formed a Land Sector Technical Committee comprising representatives from the land sector agencies that actively participatedin the preparation o f the project. All o f the land sector agencies are eager to implement the project and the customary landowners have at various consultative fora declared their support, participation and commitment to the objectives o f the project and their active participation inthe implementation o f its components. 5. Value added of Banksupportinthis project: The value o f the Bank's involvement would be its proven ability to integrate technical, institutional and policy considerations at both the working level and the higher levels o f Bank/GOG dialogue, and particularly across ministries and agencies and with participating development partners. The Bank has been active in the natural resources sector and has funded a number o f projects covering forestry & wildlife, environment, agriculture and water resources. It has established a strong relationship with the key Government agencies, the Ministries o f Lands and Forestry, Food and Agriculture, Finance and Local Government, the Lands Commission, the Survey Department and the Land Valuation Board. It has also funded and aided the development o f land titling and registration projects in many other countries, including CGte d'Ivoire and Thailand. The Bank has considerable experience and comparative advantage in encouraging institutional development, long-term sustainability and ensuring appropriateness o f the investments. Inaddition, improving the land administration regime to ensure security of tenure inland for development fulfills the Bank's role inenhancing growth and reducingpoverty in Ghana. E. Summary Project Analysis (Detailed assessmentsare inthe project file, see Annex 8) 0 Costbenefit 1. Economic(see Annex 4): NPV=US$ million; ERR= 39 % (see Annex 4) `2Cost effectiveness 0 Other (specify) The major expectedbenefits of the Ghana LandAdministrationProjectare: i.Improved land tenure security: The project will reduce land security risks of land grabbing, encroachment, land disputes, and expropriation. Lack o f tenure security has been identified as one of major problems which contributes to poverty and inhibits economic and social development Around 300,000 individual urban land titles and 50 allodial titles will be issued. Procedures through which land rights may be swiftly and cheaply recorded and titled will be identified and tested to facilitate mass use o f titling opportunities. ii.Increasedland-relatedinvestment:Investmentsonland,frombothdomesticandinternationalsources, will increase as a result o f increased confidence o f investors towards a more secure, stable and predictable investment environment and improved access to formal financial credit. iii.Improvedefficiencyoflandresourceuse:Formationofrurallandmarketsandimprovementsofurban land market will result in a more efficient use o f land resources. iv. Increased information benefits: Land valuation system, tax collection system, and land use planning system will benefit from the information provided by an improved land registry and cadastre system, and the information generated from the titling process. v. More sustainable land use behavior: A secure land tenure environment may induce a more sustainable resource use behavior because landholders will pay more attention to the long-term productivity of their land. - 1 8 - vi. Improved social process: By adopting decentralized approaches and strengthening community capacity to administer customary land rights, procedures which are more locally operated and accountable will be fostered. vii. Improved poverty focus inthe land administration sector: Through ensuring that the needs o f poorer members o f the community and those disadvantaged by discriminatory practices or conditions are attended to in building improved systems, the project will enhance the poverty focus o f land administrationdevelopment. Data and methodology: The data used for the economic analysis i s the 1998-99 Ghana Living Standard Survey (GLSS), conducted by the Ghana Statistical Service which coveredneatly 6,000 households from all 10 administrative regions o f the nation. Based on the GLSS household and plot-level data, linear regression was used to analyze the effect o f titling on land prices and to estimate the economic rate o f return (ERR) to the investment in the project. Landprices are used as a proxy for economic value o f land to calculate the ERR under the assumption that all titling benefits will eventually be reflected in land price changes, i.e., the change in land prices captures the net effect o f all the benefits o f land titling, other factors held constant. Factors besides land title do affect land prices and should be controlled in order to have a meaningful analysis. The following household and plot characteristics were controlled: per capita income, education, age and gender of household's economic head, whether the plot planted tree crops or not, ecological zone of the plot (Le., costal, forest, savanna), location o f the plot @e., Accra, other urban, rural coastal, rural forest, and rural savanna). Regional dummies were also added to control the difference among the 10 administrative regions. The total plot sample size used in the econometric analysis was 3,405. Results: The overall economic rate of return o f holding a land title i s estimated as 39 percent, and the coefficient o f title i s statistically significant at 99 percent confidence level and the result i s robust to different specifications. This means that the value o f a plot with a title will be 39 percent higher than that o f a plot without a title, holding other factors constant. Findings from studies conducted by the Bank in other countries with similar projects give additional confidence to this result. For example, in the case o f Indonesia, where the first phase of a long-term land administration program was completed, the ERR was about 33 percent. In Thailand, where a World Bank-assisted 16-year land titling program was successfully completed, the ERR ranged 30-34 percent. Increase in the value o f holdings i s not only important for investors but also for the majority of households whose only capital asset i s their land. 2. Financial (see Annex 4 andAnnex 5): NPV=US$7.42 million; FRR = 17 % (see Annex 4) Financial Analysis The purpose o f conducting a financial analysis i s to assess whether the net financial benefits expected from the project are attractive enough. There are two key project participants, Le., the landholders and the Government. As in many other countries, two considerations motivate landholders to obtain land titles: (a) to improve land ownership security that provides peace o f mind, increases marketability and value of the property; and (b) to enable access to a cheaper as well as a larger amount o f credit from formal financial institutions by using secure titles as collateral. As a result o f an improved land tenure security and improved accessibility to formal credit, the landholders will increase the investment in land and hence increase the productivity and income. Under the normal situation where titles are issued upon request by landholders (Le., sporadic registration which requires landholders to pay the full cost), the landholders who request a titling service do so with the expectation that the financial return from - 19- acquiring the title would be higher than the cost o f the title. Inmost cases, land titling projects adopt a so-called systematic adjudication method to undertake land tilting in large volumes. To ensure a high participation o f landholders on a voluntary basis, the cost o f land titling has been kept at a level significantly lower than the cost o f producing a title. The affordability o f the poorest landholders i s one major criteria o f setting an appropriate registration fee For example, in the case o f Thailand, landholders are charged less than US$5 per title, compared to the actual cost o f US$36 per title. In the case o f Indonesia, landholders are charged about US$2 per title while the actual cost i s around US$26. The difference between the actual titling cost and the fee charged to landholders i s the subsidy from the Government. Usually, the subsidy i s recovered by charging economic registration and other fees on subsequent land transactions. This arrangement has worked well inmany countries. It is expected that a similar arrangement would be introduced in Ghana. Current estimates show that the real cost per title i s around US$35. Based on the estimated costs o f titling related components and the total number titles that will be issued under the project, the average cost per title i s about US$28.30. However, this average cost does not include the Government's future management costs associated with each title. To calculate the actual cost o f each title, it i s assumed that (i)government will spend about three percent of the current cost each year after the project implementation period to ensure each title i s still valid and (ii) discount rate i s 10 percent. Based on these two assumptions, the actual total cost o f the each title i s 28.3+(28.3x 0.02)/0.1=34.96. Based on this estimate and given that the proposed 300,000 titles to be issued by the project will be concentrated inurban areas, a fee about US$lO per title would be reasonable. There are indications that the current actual cost o f sporadic titling can be as much as US$300 per parcel. Financialbenefitsand costs for the Government:The Government will receive incremental revenues ( financial benefits) from the following sources: i.initialregistrationfee(US10pertitle); ii.derivativeregistrationfee (Le., administrative fees collectedbylandcommission, landvaluation board, land registration services, and surveying department, etc.). Based on information supplied by the Government, the total amount o f different fees for sporadic registrationaccounts for two and half ... percent o f the land value; 111. stamp tax (to land buyer) o f two percent o f the land value; and iv. capital gains tax (to land seller) which is 10 percent o f amount o f value increased The economic analysis o f the project shows that nationwide, land values will increase by about 40 percent due to land titling, and given that urban area will generally enjoy a higher return rate than the national average, it i s assumed that urban land values would increase by about 50 percent inurban areas. Thefinancial costs to the Government, inprinciple, should be the project costs (excluding the grant from different donors such as DFID, GTZ and CIDA) and the Government's future management costs for maintaining the benefits o f titling beyond the end o f the project (two percent o f total project costs). However, given the proposed project i s the first phase o f a long-term program with a focus on institutional building, many project activities will either be not directly related to titling or have benefits beyond the narrow confines o f the project. For example, US$6 million (under the KfW soft loan) will be invested in office buildings, class rooms and laboratories that will benefit both non-project areas as well as subsequent projects o f the long-term program. The same logic can be applied to the activities o f land use planning ( U S 7 million soft loan from Nordic Development Fund) as well as activities o f strengthening land administration systems (USS8.6 million, under the IDA credit). Costs o f these activities should be either omitted or prorated according to certain criteria. Based on the nature of the - 20 - different investment, it was decided to include the following costs in the financial analysis: 100 percent o f investment directly related to titling; 50 percent o f the cost o f strengthening administration and management system; 50 percent o f investment related to development o f regulatory framework and policy studies; and 33 percent o f the cost o f office construction; and finally, 20 percent o f investment related to land use planning. A sensitivity test shows that, even if all IDA investmentincludedinthe calculation, without changing other assumptions, the FRR is still 13 percent with NPV of US$3.07 million. The counterpart fundingo f GOGwhich is 90 percent inthe form o f duties andtaxes, is also excluded, because this is not a real expenditure as it i s cost to the project, but income for the treasury. Fiscal Impact: The analysis shows that the financial rate o f return (FRR) i s about 17 percent and net present value (NPV) i s US$7.42 million (at a discount factor 0.1). The fiscal impact o f the proposed project should be . neutral in the short-run given that less than 15 percent o f the total project cost will be financed by the GOG inthe form o f duty and tax exemption. Inthe long-run, it is expected that the fiscal impact o f the proposed project will be positive as shown by the relatively high FRR. The average land transaction value, turnover rate and initial registration fee are important parameters o f the financial analysis. A sensitivity analysis was conducted to test the financial robustness o f the proposed project regarding the changes o f these parameters. The resulting FRR ranged from 13 percent to 20 percent. 3. Technical: The project will adopt streamlined methods o f cadastral survey, bearing in mind efficiencies and cost savings possible with the use o f a combination o f old and new technologies {Global positioning system (GPS), rectified aerial photography, orthomapping, satellite imagery and total station}. Most o f these technologies are known and are already being used by the Survey Department and the private sector. However, shortage o f equipment to expand this work has been a major problem which will be addressed by the project. The issuance o f a large number of titles under systematic adjudication creates a large records management problem and many land offices will not be able to cope with it without computerization. A computerized land records system would be designed and staff trained in its operation and management. It i s important that computerizedrecords and land information system would be legally recognized in Ghana as official records. This will be part o f the land administration policy reform sought under the project. 4. Institutional: The multiplicity o f public sector agencies inland administrationwill pose significant challenge to project implementation. Reforming and restructuring these agencies and bringing them under one umbrella will be difficult but not insurmountable. Another challenge would be decentralization and creating collaborative modes o f land administration with District Assemblies and land owning traditional authorities as central ministries and agencies are known to desist devolution o f authority to local levels. Strong commitment and support o f the Minister o f Land and Forestry and senior officials would be crucial to forging ahead with the institutional reform envisaged under the project. 4.1 Executing agencies: MLF will guide and direct implementation o f the project with all the public land sector agencies implementing its various components. Other agencies outside MLFparticipating inthe implementation o f the project are the Ministry o f Justice, the House o f Chiefs, the universities, NGOs, professional associations such as Ghana Institute o f Surveyors, and the Ghana Institute o f Planners and private firms, Streamlining the activities o f the public land sector agencies, restructuring and bringingthem under one umbrella to provide a one-stop shop for land administration services has been recommended. The details -21 - o f how to achieve this would be studied and implemented in the first two years o f project implementation. The types o f training required to upgrade the skills o f the staff o f these agencies as well as personnel o f the customary land councils will be identified, using skill gap analysis. An appropriate human resources development and change management plan will be crafted and implemented. The technical assistance required for implementing all o f the project components has been identified during project preparation and will be executed largely with the support o f bilateral donors. 4.2 Project management: Project Coordination: Because o f its breadth and cross-agency involvement, the project's overall management will be exercised through the Office o f the Chief Director, MLF. A Land Administration Programs Unit (LAPU) has been set-up within this office. The head o f this unit will be the Project Coordinator, who will be designated to manage the day to day activities o f the project under the guidance o f the Chief Director, MLF. The financial and procurement management capacity o f MLF will be strengthened through setting-up a computerized accounting and financial management system and a Procurement Unit and training staff in its operation as well as in the Government's procurement policies and procedures. L A P U has no experience in managing projects. Initially, technical assistance will be provided under the project to support it in project management, procurement, monitoring, implementation o f a human resource development and change management plan as well as the public awareness and information program. 4.3 Procurement issues: The World Bank conducted Country Procurement Assessment Reports (CPAR) in 1985 and 1996. A consultant report in 1997 and a Country Portfolio Performance Review (CPPR) in 1998 identified the lack o f a comprehensive legal framework and a uniform and codified procurement procedures and regulations as well as weak capacity o f procurement staff as the key problem areas o f public procurement governance in Ghana. A draft Public Procurement Act was prepared in mid-2001 with assistance under the IDA-financed Public Finance Management Technical Assistance Project and is awaiting Parliamentary approval. It i s expected that the Act will receive Parliamentary approval for the new procurement code to come into effect in 2003. For donor-financed projects, for works and goods contracts below ICB thresholds and for selection o f consultants, most entities follow the Bank's guidelines as the official procurement procedure. Procurement under the project would be the responsibility o f the Finance and Administration Department o f MLF. Procurement capacity in this department i s inadequate. This will be strengthened with the identification and training o f capable and trainable mainstreamed staff in the MLF. This action will be a follow up o f the recommendation contained inthe PAD o f the Northern Savanna Biodiversity Conservation Project to create a procurement unit and staff it with three officers. To minimize procurement risks in the absence o f a national procurement code, the procurement procedures to be followed are outlined in Annex 6 and will be fully described inthe Project Implementation Manual (PIM). 4.4 Financialmanagement issues: A country financial accountability assessment (CFAA) was conducted for Ghana in 2002. It identified the main accountability issue as: (a) fragmented legal framework and lack o f enforcement o f existing penalties for noncompliance; (b) ineffective and inefficient internal auditing functions; (c) weak human resource capacity because o f poor public sector remuneration; and (d) weak payroll and pension control systems. A financial management capacity assessment was conducted to determine whether the finance unit o f the Ministryo f Lands and Forestry, responsible for the financial management under the project, has adequate and acceptable financial management capability to undertake the assigned tasks. The unit has an accounting manual approved by the World Bank, which documents the accounting - 22 - system and reporting requirements under NRMP and the NSBCP. The computerization o f the accounting system has just been completed and tested and in use for the NRMP. This would be modified to incorporate activities to be covered under the Land Administration Project. The present financial management arrangements are considered acceptable since they are capable o f recording correctly all transactions undertaken by the project. The system also assures adequacy o f maintenance o f underlying records or support documents which form the basis for the preparation o f regular and reliable financial statements and other similar reports, safeguard the project's assets, and are subject to auditing arrangements acceptable to IDA. The accounts unit o f MLF i s headed by a qualified accountant, and assisted by four other accounting staff with varying degrees o f accounting qualifications. All the staff have been trained in World Bank disbursement procedures and performance under the current projects they are servicing i s satisfactory. The internal audit functions will be strengthened and staff given further training, The financial arrangements agreed to safeguard the fiduciary requirements are given inAnnex 6 and are reflected inthe PIM. 5. Environmental: Environmental Category: B (Partial Assessment) 5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. The project i s classified as Category B because it does not pose any major environmental issue. It would rather provide more secure land tenure arrangements and dynamic land markets, that are conducive to investment in land improvement and better land management techniques, resulting in positive environmental impact. This i s borne out by several land administration projects the Bank has financed in different parts o f the world (e.g., Thailand, Indonesia and Brazil). Transparent and efficient land administration systems and coherent and transparent land management policies have provided incentives for investment inimproved long-term land use such as soil conservation and tree crop production in rural areas and investment in environmental infrastructure like improved kitchen and bathrooms in urban areas. Project outputs including spatial data such as aerial photographs and cadastral maps have been useful inputs into environmental management. The demarcation o f forest and wildlife reserves and gazzetment of globally significant biodiversity areas (GSBAs) i s being carried out by a separate IDA financed Natural Resources Management Project and the GEF-supported Forest Biodiversity and Savanna Biodiversity Protection Projects. The proposed project would complement these projects by titling and registeringthe holdings o f communities and individuals surrounding the reserves and GSBAs, thus rendering encroachment of these reserves difficult and facilitating the maintenance and ensuring the sustainability o f their environmental integrity. The production o f maps will enable the land use planning agencies to provide more appropriate land use and zoning maps to the communities. Better land information in general will help making better informed decisions in all areas o f land administration and land management. Civil works are envisaged in constructing offices for the public sector land agencies, the Kwame Nkrumah University o f Science and Technology and selected customary land secretariats. No involuntary acquisition o f land i s foreseen. However, while lands belonging to the university and the traditional authorities are free of any squatters, the proposed construction site for headquarters building o f the public sector agencies inAccra i s partially occupied by squatters. Incase it would be necessary for some squatters to be moved from government lands, a resettlement policy framework has been prepared by the Borrower, which has agreed that a detailed environmental impact assessment and resettlement and compensation plan satisfactory to the Bank will be prepared prior to the commencement o f civil works. 5.2 What are the main features of the EMP and are they adequate? A separate environmental assessment report was submitted by the Borrower prior to project appraisal. The only E M P required would be for the civil works to be carried out under the project. Specific environmental impact assessments will be carried out during implementation for the specific sites selected for civil works. A US$lOO,OOO i s earmarked for these assessments and implementing the - 23 - mitigation plans. 5.3 For Category A and B projects, timeline and status o f EA: Date o f receipt o f final draft: 02/05/2003 EA start-up date: August, 2001 Date o f first EA draft: October, 2002 Expecteddate o f final draft: February 2003 5.4 H o w have stakeholders been consulted at the stage o f (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms of consultation that were used and which groups were consulted? Stakeholders were consulted at various fora during project design and preparation o f the environmental impact assessment. The draft EA was disclosed and discussed at a workshop to which environmental NGOs, bilateral donors and the public at large were invitedto andparticipated. 5.5 What mechanisms have been established to monitor and evaluate the impact o f the project on the environment? D o the indicatorsreflect the objectives and results o f the EMP? Overall responsibility for the implementation o f the EA and RPF i s with the Ministry o f Lands and Forestry. However, the Environmental Protection Agency (EPA) would take responsibility for compliance monitoring o f guidelines related to environmental safeguards, particularly those related to construction and rehabilitation works. Its regional offices in Accra and Kumasi will have direct responsibilities for monitoring implementation o f proposals in the EA and ensuring compliance o f standards. The Ministry o f Lands and Forestry, working together with the Ministries o f Finance and Economic Planning, and Manpower Development and Social Welfare, would be responsible for implementation o f recommendations related to resettlement and compensation. It will ensure that a Resettlement Plan acceptable to the Bank and endorsed by the project-affected persons i s prepared and implementedprior to commencement of any construction or rehabilitation work. 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. As a prelude to project preparation, a rapid social assessment (RSA) was conducted to identify the key stakeholders and consult with them, with a view to incorporating their issues and concerns in the design o f the project. The RSA undertook a disaggregated analysis o f the stakeholders' interests, the perceived positive and potential negative impacts or risks o f the project, and possible mitigation measures as summarized in a matrix form inAnnex 13. The following are the key social issues identified: Demandfor Project Interventions: The customary trustees o f land and the communitylfamily elders are willingto pursue demarcation o fproperties and assist innegotiatingand settlingboundary disputes, using customary arbitration forms and mechanisms for conflict resolution. There i s an even stronger demand for the project in the urban and peri-urban areas (Accra, Sekondi-Takoradi, Kumasi and Tamale). This can be attributedto the large number o f disputes associated with multiple sales o f lands, encroachments, and other pressures on land brought about by rapid urbanization. Customary land authorities also see the Project as an opportunity to discuss and negotiate with the State for the repeal o f perceived oppressive legislation that has contributed to the usurpation o f powers vested in customary forms o f governance. In bothurban and rural areas the project i s seen as addressing important social and economic issues, - 24 - Divesting and Compensation. The government's compulsory acquisitiodvesting o f private lands without any consultation with or approval by customary authorities, non-implementationo fproper resettlement o f displaced persons and continued non-payment o f just compensation have created a strong sense o f injustice meted by the State. The project will assist the State in addressing these issues in a fair, participatory and transparent manner to restore trust between government, customary authorities and local people. It i s expected that this will pave the way for a lasting partnership to reform the land administration system. Legal Reforms: The project proposes to harmonize legislation and regulations with a view to eliminating contradictions, creating measures that will strengthen the land administration o f the country and facilitate implementation o f the project. It i s expected that these changes will create space for greater social and gender equity, while being supportive o f vulnerable groups in the context o f access to and security in land. Building Conjdence and Trust in Government: The need for strengthening trust in the various instances o f land administration has been identified as a necessary condition for attaining project social objectives. At the national level, there is a need to develop and maintain a high level o f trust between the various land agencies that will be required to operate in an integrated manner within the one-stop-shop concept. At present, there is limited cooperation and sharing o f information and records among these agencies. In this context, the project will promote a broad-based dialogue, including participatory decision-making, to ensure understanding and acceptance o f the proposed reforms. Trust will also have to be reestablished between land owners and the government land administration system where, given the low level o f remuneration some staff exhibit rent-seeking tendencies. The shortcomings o f the present land administration system result in cumbersome procedures and delays that frustrate all those having to deal with government in registeringland transactions. Registeringa parcel o f land can easily take up to three years. The Government must not only ensure the integrity of its staff involved in land administration, but also ensure timely and affordable land services. The project will seek to restore trust in government by facilitating the rationalization o f government land services and making these available to the public in a timely and affordable manner. Government and Customary Authorities: There i s an urgent need to promote confidence building between Government and customary authorities. Distrust of the manner in which District Assemblies utilize revenues generated by stool and skin lands appears strong, especially in the rural areas. Customary authorities lament the apparent lack o f rationality by which development projects and activities are selected, and the lack o f proper consultation in disbursingrevenues generated from stool and skin lands, To attain confidence building and trust the project will strengthen and/or develop appropriate legal, institutional and policy linkages between the government land administration system and customary authorities that own 80 percent o f the land in Ghana. At the same time the project will foster systems which increase accountability o f traditional authorities to their constituent land holders. The project will encourage representation of customary authorities in government land administration decision-making at the district level. Additionally, the project will promote mutual recognitiono f and deference to respective authorities and powers (government and customary authorities) through participatory institutional mechanisms at the national and district levels in a complimentary and non-competitive manner. Conjdence-Building at the Local Level: Within customary areas, undeveloped land has been sold and leased by powerful authorities, who collude with developers and construct buildings without proper permits and consultation with the relevant communities. In the areas o f the country where families are administeringlands directly, some family members forge signatures and thumbprints to sell rights to land illegally, creating indiscipline inthe land market. The social benefits o f the proposed confidence-building activities will include greater willingness on the part o f the public to participate in rational urban - 25 - development, greater stability and clarity in the land market and a reduction inrent-seeking behavior and predatory land sales. Lack o f confidence in the land adjudication andjudicial systems to swiftly resolve land disputes i s prompting some o f the landowners and lessees to hire guards to protect their lands. The project will not only assist demarcating the boundaries o f customary areas through community participation, but will strengthen customary land administration to ensure greater accountability and transparency to the members o f the community. Alternative Land Dispute Resolution (ADR) Mechanisms: The pervasiveness o f distrust and the latent and sometimes open conflict over land highlights the need to encourage the use o f ADR mechanisms which, in many cases, already exist within the customary system. For instance, in the Ashanti region, disputes involving demarcation of boundaries within the Kumasi Customary Area will rarely be brought to court as the Asantehene has directed all villages to settle land disputes using customary laws and local community mechanisms. Should a party not be satisfied by the ruling o f the elders o f the community and the customary land authorities, the aggrieved person can appeal to the Asantehene's court. People can take their case to the formal courts only after exhausting these avenues. The Ashanti model o f a land dispute resolution mechanism using local institutions and the participation o f the community should be encouraged and promoted in other areas, ifdeemed appropriate. ADR mechanisms will be encouraged and strengthened by the project where they exist. In urban areas, where conflicting claims to land exist and customary dispute resolution i s no longer functional, alternative mechanisms will be modeled in conjunction with project land titling activities. A particularly valuable aspect of any dispute resolution mechanismi s that it ensure the claims of vulnerable individuals and groups are adequately identified and fully protected. The judiciary will also be encouraging ADR mechanisms when the ADR bill currently before Parliament i s enacted. Gender Issues: Cultural and traditional factors related to land vary from area to area within the country. Insome areas women have tended to be marginalizedthrough inheritance customs and practices. Women can generally access land for residential and agricultural purposes. However, land ownership by women i s heavily dependent on the customary laws exercised by the different ethno-cultural groups. Women right holders may, for example, find it relatively more difficult than mento assert their rightsduringthe titling process, or to make use of the proposed new registration systems effectively. Rural women-headed households are typically poorer than male-headed households, but frequently have greater access to land than women where the male i s the household head. Gender studies will be conducted in areas representing all the prevalent land tenure systems in Ghana to inform formulation o f policies, laws and procedures in registering land rights including those to be conductedat the customarylevel.These studies, together with experience accumulated inprojectpilot area activities, will help inform legislative reform and project implementation. Gender-disaggregated project data will be collected on a regular basis, where relevant. An action plan will be developed to sensitize project and partner staff on gender issues, to ensure greater understanding o f the need for participation o f women in project activities and decision-making. One social development outcome in relation to titling and registration i s ensuring that women's rights to land are respected, including recording o f the names of both spouses on the title of joint family properties. Moreover, it i s expected that women will be encouraged to participate and be represented in a meaningful way in staffing and decision-making as these relate to project activities. Protecting Land Rights of Disadvantaged Groups: While the project will seek to strengthen land rights and tenure arrangements through improved land administration systems, project activities such as titling and registration may result in loss of land rights for some people and the unintentional displacement o f some families. Secondary use rights, such as the right o f poor village women to harvest the fruits o f - 26 - certain trees or the right o f the community to use an established path across a property might be extinguished with titling. Tenant and sharecropping arrangements may be terminated immediately before titling, to disencumber the property, or soon afterwards as land prices rise and properties are put on the market. Women may experience more difficulty in accessing land following titling, if increased land values lead to higher value land uses controlled by men. Local village youth, especially those from poor families, have a direct stake in decisions on land but may not be consulted. The poor and vulnerable are most likely to lose rights through this process. Some families that are strangers or migrants in the community may be displaced altogether. In recognition o f this possibility, the project will carefully document the situation o f secondary rights to land through baseline studies and encourage local communities to develop mechanisms to address these issues in a fair and transparent manner. Where these mechanisms prove inadequate, the project will undertake remedial action to assist poor families that have a legitimate claim to land. Resettlement: As a result o f the institutional restructuring o f government land services, the projects will undertake some civic works on Government owned land. A Resettlement Policy Framework has been prepared which lays out the World Bank's principles and procedures for ensuring that adversely affected people are compensated adequately, and their livelihoods restored at least to pre-project levels. In cases where resettlement will be occurring, a site specific socioeconomic survey and analysis by a team o f social scientists (a social development specialist and an economist) will be conducted to inform sufficiently the development o f the resettlement plans, that will be implemented prior to the commencement o f any project activities that trigger resettlement. These plans will develop concrete, time-bound benchmarks and measurable indicators, which will facilitate the effective monitoring o f these resettlement activities and to ensure timely and adequate compensation. The GoG budget allocation will take into account the eventuality o f any resettlement. Indigenous Minorities: The case of indigenous minorities does not arise in Ghana because there i s no political dominant group marginalizing others, no dominant languages silencing minority languages, no tradition o f the civilized versus the uncivilized or autochthones and simple peoples. Although ethnic groups in Ghana do involve different size populations no one i s excluded form sharing equal rights as a citizen. There i s a multiplicity o f ethnic traditions and customary land laws adjudicating land and governing its use. These customary land laws have legal status in the formal court system. They are practiced without challenge to their local legitimacy and are recognized where land disputes are appealed beyond local areas. The project proposes to build on and strengthen customary land laws and governance which have to-date not differentiated between majorities and minorities. Therefore, preparing mitigation plans for indigenous minorities does not arise. 6.2 Participatory Approach: H o w are key stakeholders participating inthe project? The project requires a high level o f participation by relevant stakeholders in planning, implementation, monitoring and evaluation, including decision-making at all stages, in order to be effective and sustainable. Inrecognition o f this the project design had adopted a participatory approach. A stakeholder analysis was conducted as part o f project preparation (Annex 13). Principal stakeholders include land owners and users, various government ministries and agencies, customary authorities, land research institutions, civil society and NGOs, the private sector and the general public. The low level o f knowledge about the National Land Policy among the general public, including government agency staff, implies the need to design and implement an accelerated information and education campaign among government, customary authorities and the general public. A well-informed bureaucracy and the general constituency will always be in a better position to assert and enforce rules, and support attainment of commonly shared objectives. The project has developed a communication strategy to promote community outreach and participation, covering all project activities from landpolicy - 27 - formulation and legal and institutional reform, to land titling and strengthening o f customary land administration systems. This outreach strategy will have the dual function o f providing necessary information regarding the project and related issues to permit meaningful participation by stakeholders, and o f ensuring that opportunities exist for effective participation, including the incorporation o f feedback into project planning on an iterative basis. At each stage o f surveying and adjudicatinglandparcels, the community or the parties directly involved, together with customary authorities, will actively participate in the process. This will be carried out to guarantee transparency and ensure that marginalized individuals or groups are not discriminated against. Demarcation and titling will only proceed once ownership has been clearly established, secondary or derivative claims to land dealt with and any boundary disputes settled. Transparent dispute resolution mechanisms, designed to protect the interest o f poor and vulnerable claimants, will be developed or local customary systems adapted to resolve outstanding disputes. Beneficiary and impact assessmentwill adopt methodologies to ensure that representative members o f project communities are heard and that any excludedgroups are identified for remedial action. 6.3 H o w does the project involve consultations or collaboration with NGOs or other civil society organizations? NGOs and other civil society groups have increasingly championed measures to protect and enhance capacities o f local groups to own and use land for development. A number o f these groups were identified during the stakeholder analysis and will be incorporated into project implementation. These include the House o f Chiefs, the Land Tenure Center o f the Kwame NkrumahUniversity o f Science and Technology, the Law School at the University o f Ghana, the Ghana Bar Association, Associations o f Land Valuers, Chartered Surveyors and Planners as well as NGOs in the land sector and women associations. NGOs will play a key role in implementing the project's communication strategy. They will be contracted to build the capacity o f communities and ensure that participatory techniques are used in project implementation. They will assist in mobilizing communities to engage in policy and legal reform dialogues and debates and become proactive in mapping, registering and titling o f land. Where conflicts over disputed land occur, qualified NGOs and civil society organizations will play a key role in developing and encouraging the use o f effective dispute resolution mechanisms acceptable to local communities. Research institutions, civil society organizations and NGOs will be contracted to conduct studies and analyses to better understand the many social dimensions and local nuances o f land issues. Gender analysis, for instance, will inform how the project will take into account the rights o f women to land and benefits from land. NGOswill also be involved inensuring that the process o f monitoring, evaluation and impact assessment i s participatory by buildingthe capacity o f communities to become actively involved in these project activities. The project will also provide assistance to strengthen land secretariats o f the traditional councils and the land sector professional associations to enable them play their roles effectively. 6.4 What institutional arrangements have beenprovided to ensure the project achieves its social development outcomes? The project will recruit a social development expert as core staff o f LAPU to ensure that implementation o f all activities to attain its social development objectives are appropriately designed and implemented, and that studies are conducted to provide feedback on the social impacts o f the project. As indicated earlier, NGOs will participate actively in the program to inform, educate and assist communities on the debates on land policy, legislative and institutional reforms, and the process o f land adjudication and title registration. Their involvement should ensure that no social or income groups are excluded from their rights to receive titles to land and that good governance prevails inland administration. Consideringthe -28 - possible biases against women and migrant tenants, it i s strongly recommended that the project's institutional design for delivery at the community level ensure the representation o f these various groups in relevant working committees to be formed during the implementation of the project, to give them access to policy, legislative and decision-making processes which will affect their lives. The most difficult challenge to the Project still lies inhow the structural arrangements and the processes can be designed to allow transformation among government land agencies, the local government authorities, and members o f the legislative and judicial branches o f government. The objectives o f harmonizing statutory with customary laws, decentralizing land administration and services delivery up to the community levels, and community participation in decision making, evidently require a major paradigm shift among those who are currently holding power positions by virtue of their legal authority to decide on land issues. The joint management (allodial owners and government authorities) concept in land administration will work only to the extent that these institutions accept, prepare and commit themselves to the full realization o f the Land Administration Project's empowerment objectives. The project would strive to promote such a commitment among all the stakeholders. 6.5 H o w will the project monitor performance interms o f social development outcomes? The project will include social scientists in implementation of activities to ensure the systematic collection o f relevant data and their refinement, as necessary, o f the social developments indicators specified in the project logframe. It i s envisaged that annual independent supervision and monitoring activities will be undertaken to monitor and measure project performance interms o f social development outcomes. A number o f social process and output monitoring indicators have been identified, including: the level o f participation o f all stakeholders, including vulnerable groups; the number o f land disputes and the proportion resolved through community-based dispute resolution mechanisms; the number o f land titles issued to women and other vulnerable groups; proportion o f women making claims to land and securing land title; the percentage o f female staff at the management and technical level within project activities and in land administration agencies; increased understanding and appreciation o f land related gender issue, etc. Additional performance monitoring mechanisms and indicators will be developed to take into account the nuances o f the desired social development outcomes in the course o f project implementation. The consolidated government land administration agencies will be assisted in developing effective data gathering and information management capacity, and encouraged to build the collection o f relevant social indicators, as they relate to land, into regular information collection and analysis activities. 7. Safeguard Policies: Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) Yes (3 No Natural Habitats (OP 4.04, BP 4.04, GP 4.04) C: Yes 0 NO [--For%y (OP 4.36, GP 4.36) Cl Yes 0 NO Pest Management (OP 4.09) L'Yes No Cultural Propertv (OPN 11.03) C!Yes 0 NO IndigenousPeoples (OD 4.20) CI Yes NO Involuntary Resettlement(OP/BP 4.12) Yes C; NO Safety of Dams (OP 4.37, BP 4.37) `3Yes NO ProjectsinInternational Waters (OP 7.50, BP 7.50, GP 7.50) 0Yes0 NO I ProjectsinDisputedAreas (OP 7.60, BP 7.60, GP 7.60)* I 0 0Yes NO I - 29 - 7.2 Describe provisions made by the project to ensure compliance with applicable safeguardpolicies. The project has been designed to ensure compliance with the Bank's applicable safeguard policies. Contracts for construction o f office buildings and training facilities will be subject to environmental impact assessment. Provision has been made in the project costs for such an assessment. Although civil works will be carried out on vacant lands owned by the government, universities and customary land councils, it will comply with the resettlement policy framework prepared for the project. The pilot allodial boundary demarcation and systematic land titling activities will not involve areas o f potential environmental significance. Institutional arrangement will be made with the Ghana Environmental Protection Agency for ensuring compliance o f project activities with its guidelines and staff designated and trained to guide and monitor for environmental and social safeguards. 8. BusinessPolicies 8.1 Check applicable items: Financing o f recurrent costs (OMS 10.02) Cost sharing above country 3-yr average /OP 6.30. BP 6.30, GP 6.30) Retroactive financing above normal limit JOP12.10. BP 12.10. GP 12.10) Financial management [OP 10.02, BP 10.02) Involvement ofNGOs /GP 14.70) 8.2 For business policies checked above, describe issue(s) involved. F. Sustainability and Risks 1. Sustainability: The main risk for the sustainability o f the policy, legislative and institutional reforms envisaged in the project i s the political will to carry them out to their completion. Another risk would be the willingness of government officials in the public sector land agencies as well as traditional councils and their leadership to adopt the institutional and governance reforms engendered in the project. The current government has shown its strong commitment to reforming the land administration system in Ghana. It has decided to return vested lands to the traditional owners and settle outstanding land compensation claims as a confidence buildingmeasure o f its seriousness and commitment. This will win the support o f the paramount chiefs in harmonizing statutory land laws with customary laws and instituting an accountable system of titling and registering interests in land and arranging for their smooth transfer through inheritance, gifting and the land market. Nonetheless, land administration reform i s o f necessity a long-term program that will need to have continued relevance and priority spanning over several administrations, thus demanding their continued commitment and support. The paramount and lesser chiefs who were consulted duringproject preparation exhibited a high degree o f support for the project as explained in Section 6 above. Implementation o f the project's communication strategy will promote the awareness o f these stakeholders and heightentheir commitment to these reforms. Although the increased efficiency arising out o f the land administration reform will reduce costs as well as the land disputes clogging the courts, and the project i s expected to increase revenues derived from service fees, land rent and land taxation by the national and local authorities, financial sustainability would not be a short-term goal. A more important consideration would be to price land administration services at a level that will not discourage documenting land transactions through official channels, Once a critical mass o f titles have been registered, subsequent derivative transactions will generate the revenue that in the long-term will make land titling self-financing. A public awareness campaign will be waged, - 30 - with community and NGO participation, to educate the populace on the social and economic advantages o f land title registrationto pave the way for systematic land titling in areas where it i s deemed suitable. A study will be undertaken to develop appropriate tax and fees on land transactions and services, taking into account their impact on people's decisions to use formal channels to ascertain their interests in land. The systematization and decentralization o f land administration services, involving customary land owners and their land secretariats, the participation o f the community in alternative land dispute mechanisms and the establishment o f land courts will, in the first place, reduce land disputes. It will enable speedy resolution o f those that will arise, bringing decision making on land issues closer to the communities and giving them a high degree o f ownership and enhancing sustainability o f the system, Finally, the institutional reform and capacity building activities o f the project will lay the foundation for continued sustainability o f subsequent land administrationreformprograms. - 31 - 2. Critical Risks (reflecting the failure o f critical assumptions found inthe fourth column o fAnnex 1): Risk Risk Ratina I Risk Mitiaation Measure From Outputs to Objective 1. Sustainedpolitical commitment to a M Public and civil society awareness and debate long-term participatory land on socioeconomic impact o f lack o f political administration reform program, including commitment and government inaction will be customary land authorities, civil society promoted through the communication strategy and the private sector. o fthe project. The House o f Chiefs, civil society and the private sector will be encouraged and supported to play an active role inthe landadministrationprogram. 2. Legislation mandatingpolicy reform, S Public participationand awareness programs including restructuringo f public land will be conducted to facilitate broad-based agencies i s passed. understanding o f the legislative and institutional reforms will be sought. 3. GOG will continue to support M Civil society and the House o f Chiefs will be participatory land administrationby actively involved inthe land administration traditional authorities and the private program sector 4.Governance improves to effect S Donors are keen that poverty reduction, administrative and fiscal decentralization decentralization and improved governance and check corruption remainpriority issues and will ascertain it through the implementation o f projects under the CDF. From Components to Outputs 1, Land owners and users willing to M Public participationand awareness programs participate inpolicy, legislative and will be conducted to facilitate broad-based institutional reforms and accept measures understanding o f the legislativereforms sought undertaken as a result o f the reforms. 2. Public land management institutions S Participation o f stakeholders will be included and traditional authorities will inthe design o fthe policy, legaland collaborate effectively institutionalreforms and training o f key personnel and traditional leadership in land administrationto facilitate such collaboration. 3. District Assemblies and traditional M Stakeholder analysis and consultations and authorities are willing to develop awareness creation will be conducted and staff capacity for land administration and land o f land secretariats o f customary authorities owners and users are willing to will be trained and provided with logistics. participate inthe land titling and Special emphasis will be given to ensuring that registrationprocess. titling processes are community driven and managed. 4. Public land administrationagencies M Land administration agencies will participate ir accept institutional reform and cooperate the reforms envisaged andtheir stafftrained in effectively to make it work. change management and skills required for reorienting their work. Overall Risk Rating S I Risk - 32- 3. Possible Controversial Aspects: G. Main Loan Conditions 1. Effectiveness Condition i.ParliamentaryApprovaloftheDevelopmentCreditAgreement(DCA). ii.AttorneyGeneral'sLegalOpinioncertifyingthattheDCAhasbeendulyexecutedandratifiedandis legally bindingon the Borrower. 2. Other [classify according to covenant types usedinthe Legal Agreements.] DisbursementConditions i.Forcategories(1)-(4)ofexpenditures:theinitialdepositofUS$50,000equivalentpaidintothe project account; ii.Fortheallodialdemarcationsubcomponent:(i) LandsPolicySteeringCommitteehasbeen the established, and (ii) an assessment i s made o f the current land administration services provided by customary land authorities through interviews with those who have usedtheir services; and iii.Forthelandtitlingsubcomponent:recommendationsofthestudiesonrightsandinterestsinlandand registrationo f land titles have been taken into account, and there are assurances, satisfactory to IDA, with respect to the continuingvalidity o f customary freeholds and other traditional allocations o f land. 3. Other Conditions to be included i.Recruitingasociologistandacommunicationspecialistnolaterthansixmonthsaftercredit effectiveness; ii.PreparinganinstitutionalreformstudynolaterthanDecember31,2004; iii.Cabinetapprovalofthedraftlegislationforrestructuringofthelandadministrationagenciesnolater than December 3 1,2005; and iv. Mid-termreview 2 years after effectiveness. H. Readinessfor Implementation 1. a) The engineering design documents for the first year's activities are complete and ready for the 11.b)Not start o f project implementation. applicable. 2. The procurement documents for the first year's activities are complete and ready for the start o f 8 project implementation. 3. The Project Implementation Plan has been appraised and found to be realistic and o f satisfactory quality. 4. The following items are lacking and are discussedunder loan conditions (Section G): 0 Interpretationo f an article o f the 1992 Constitution affects the landtitling subcomponent o f the project. The Borrower was requested to provide an official clarification o f this issue at appraisal. Progress hadbeen made and a roundtable discussion of prominent jurists and lawyers with the Ministers -33 - o f Land and Forestry and the Attorney General was organized, but failed to materialize because o f a Cabinet reshuffle. This requirement i s now made a condition o f disbursement under the titling subcomponent. 0 The procurement plan for the first two years has beenprepared and included in the PIM. Bidding documents for the project's initial procurement are beingprepared and would be completed prior to Board presentation, but this i s not made a condition for Board Presentation. T o the credit o f the Project, the Land Sector Technical Committee, one o f the oversight committees o f the project has been constituted and has started meetingto guide and monitor project pre-implementation activities financed by the PPF, the Project Coordinator has been designated, and the Project Financial Controller i s inplace and already managing two other IDA and GEF financed projects within the Ministryo fLands andForestry. I. Compliance with Bank Policies c! 1. This project complies with all applicable Bank policies. 2. The following exceptions to Bank policies are recommendedfor approval. The project complies with all other applicable Bank policies. Team Leader Sector Manager Country Director - 34 - Annex 1: Project Design Summary GHANA: Land Administration Project Economic and social growth Increase inhousehold incomes GLSS reports GOGretains poverty enhanced and poverty reduced and reduction inpoverty in alleviation as a key priority by improved access to land pilot areas. and commitment to land and enhanced land tenure administration reform. security. Role o f civil society and Number o f traditional MLFmonitoring reports GOGwill continue to support private sector expanded. councils, NGOs, academia and participatory land private sector participating administration, including directly or indirectly in land customary land authorities, administration services. civil society and the private sector. Governance improved. - Corruption in land MLF,Heado fCivil Service & administration reduced. - Roles Ministryo flocal government o f central and local reports, media reports, M&E governments in land survey reports, land administration clarified. information systems. - Chiefs and other traditional land authorities adopting more participatory procedures. - Customary land administration systems playing larger role inland administration. - Transparency checks and balances and participatory procedures adopted by traditional land authorities. - Sustainable land use planning and management practices developed. -35- I Project Development IOutcome / Impact IProject reports: I(from Objective to Goal) ' Objective: Sustainable land -Indicators: time and Turnaround - Projectmonitoring and - Land owners andusers administration system that i s transaction cost o fprocessing reports; willing to participate inpolicy, ' fair,efficient, cost effective, land administration services -evaluation (M&E)impact Socioeconomic legislative and institutional decentralized and increasing reduced. studies. reforms and accept measures land tenure security is - Land litigation cases undertaken as a result o f the ' developed and filly decreased incourts o f pilot reforms. - Laws mandatingland ~ functioning. areas. - Land transaction revenues to agencies reform are passed. local and central government - Public landmanagement -increased. institutions and traditional Loan and mortgage financing I authorities will collaborate secured by land titles inpilot effectively. -areasincreased. - Government will resource Investment inthe property courts to expedite settlement sector increased. o f land cases. - Land titles registered by women increased. - 36- htput from each Output Indicators: 'roject reports: From Outputsto Objective) :omponent: :omponent 1. Land policies 1.1 Reports on policy and 'roject reports, iustainedpolitical ndregulatory framework legislative reviews completed evised land policy paper, :ommitment to the land evised and harmonized with andcodifiedrevised land lraft land legislation. Idministration reform program ustomary land laws. legislation drafted and 'y successive administrations. approved by Ministerial Cabinet. Zourt records, 1.2. Backlog o f land cases roject M&Ereports. reduced from 35,000. 1.3. Policy on land compensation developed. 1.4 Lands forcibly acquired by the State for which Compensation has not been paid identified and compensation levels determined. 1.5 legally conclusive confirmation o f the continued validity o f customary freehold and other customary titles. 1.6. Studies completed and recommendations adopted on: a. what rights will be registered on land titles; b. divestiture o fvested lands; c. finance and fee structures inland administration; d. gender analysis o f land rights and administration; e. assessment o f current land administration services provided by customary land authorities. Zomponent 2. 2.1 Report o f study on Project (M&E) reports. . Public landadministration 'ublic land sector agencies comprehensive organization, agencies accept institutional eformed and developed. management and operations of :eform and decentralization public land sector agencies Socioeconomic impact andcooperate effectively to completed and :valuation reports. nake it work. recommendations . Legislationmandating implemented. ?olicyreform, including 2.2 one-stop-shop centers restructuring o f public land established inat least three igencies is passed. regions and functioning. . Publiclandmanagement 2.3 50 customary land institutions and traditional secretariats established and authorities will collaborate strengthened through physical :ffectively. and technical assistance, with - GOG will continue to more effective and inclusive support participatory land administrative procedures. idministration by 2.4 At least ten NGOs actively xaditional authorities and the - 37 - involving inpromoting lrivate sector. improved local level land District Assemblies and administration. raditional authorities are 2.5 Private land sector villing to develop capacity for institutions deliver land anduseplanning and land administration services more .dministration and land efficiently. iwners and users are eager to 2.6 Land administration iarticipate inthe land titling training and research .ndregistration processes. institutions supportedthrough Governance improves to provision o f classroom, iffect administrative and fiscal laboratory and office buildings lecentralizationand check and equipment. :omuption. 2.7 Quality o f land sector education enhanced. 2.8 Increasedresearch on land tenure and land administration with linkages to practice established. Component 3. 3.1 Cadastre and land 'roject (M&E) reports. Surveys and maps required Procedures, processes and information system designed 'or land titling and registration information system for deeds/ and implemented. jocioeconomic impact w i l l be produced inreal time. land title registration and land 3.2 Deed and title registration :valuation reports. District Assemblies and valuation improved and tested procedures and data storage raditional authorities are inpilot allodial boundary and retrieval systems Jient satisfaction surveys. willingto develop capacity for demarcation and land title improved. and administration and land registration sub-projects 3.3 digital and hard copy maps ncrease inland fees collected. Iwners and users are eager to prepared for customary land )articipate inthe land titling boundary demarcations, mdregistrationprocess. systematic land titling and land use planning. 3.4 simplified land information, registration and mapping procedures developed to improve accessibility inrural areas. 3.5 Altemative land valuation and land fees collection designed and implemented. 3.6 50 pilot allodial land boundaries demarcated and registered. 3.7 300,000 land titles adjudicated and registered. Component 4. Project 4.1 Project coordination and mplementation assistance . PPMED, LMFand the Land implementation by various management carried out nission reports. 4dministration Program Unit agencies well coordinated and effectively. Staffed with competent project activities monitored 'roject (M&E) reports. xofessionals. and their socioeconomic and 4.2 Skill gap analysis . Civil societyandthe private environmental impacts conducted and master human Zlient surveys. jector willing to participate in assessed and evaluated. resources development plan .mpact evaluation assessment prepared and implemented. indstudies andpublic The long-term land iwareness campaign. - 38 - idministration program 4.3 A communication strategy lefined on the basis of the to sensitize, educate and invite :xperience gained and the the public to participate in essons learnt and a Phase I1 discussionof land policy Iroject prepared and issues, indesigning and ipproved. implementing allodial land boundary demarcation and land titling and registration and insetting-up alternative land dispute resolution mechanisms, developed and implemented. 4.4 Monitoring and progress reports produced quarterly. 4.5 Number of beneficiary assessment and impact evaluation reports. 4.6 Phase I1project designed and proposal prepared and approved by MLF. - 39 - 1 'roject ComponentsI iputs: (budgetfor each rojectreports: romComponentsto jub-components: omponent) utputs) Zomponent 1: Harmonizing JS$l, 16 million. :mi-annual supervision 2andPolicy and Regulatory :ports. jramework for Sustainable and Administration. Iid-termreview report. 1. Revisions o f laws and ,egulations for an effective nplementation completion indefficient land :port. idministration. ). Expediting settlement o f and cases inthe courts and leveloping alternative land lispute resolution nechanisms. ;. Inventory o f all acquired State lands and determination ifoutstandingcompensation. i.Policystudies: . Land tenure registration: to Formulate government policy inwhat rights will be eegistered on land titles; i.Divestitureofvestedlands; .ii.Financeandfeesstructure 3 f land administration system ;o formulate government policies on fees and taxes for registration o f land transactions; iv. Gender studyand analysis on land rights and land administration; v. Assessment o f current land administration services provided by customary land authorities; Component 2: Institutional JS$29.22 million. Reform and Development a. Institutional reform. b. Decentralizing and strengtheningland Administration services. c. Strengthening customary land secretariats. d. Strengtheningthe private land sector institutions. e. StrengtheningLand Administration and Management Training Institutions. Component 3: Improving US$16.30million - 40 - Land Titling, Registration , Valuation and Information Systems a. Establishment o f deeds registry b. Delineationand registration o f allodial rights c. Pilot systematic land titling andregistration d. Mapping, landuse planning and management support for land administration e. Establishment of Model Land Titling and Registration Offices Component 4: Project JS7.51 million Management, Monitoring and Evaluation a. Project coordination and management b. Human Resources Development c. Communication strategy d.Monitoring and evaluation and impact assessment -41 - Annex 2: Detailed Project Description GHANA: Land Administration Project The amounts below include contingencies. By Component: Project Component 1 US$1.16 million - Harmonizing Land Policy and Regulatory Framework for Sustainable Land Administration Subcomponent 1.1 Revisions Of Laws And Regulations For An Effective And Efficient Land Administration: All land related policies, laws and regulations would be reviewed with the view o f formulating appropriate policies that would facilitate GoG's objectives for the land administration program and eliminating from the statute books those that are redundant, obsolete and inconsistent with new policy directions. The studies would also seek to modify, amalgamate andor streamline the fundamental laws for land administration and reviewing the law concerning compulsory acquisition o f land by govemment. The process o f harmonizing customary and statutory land laws would begin. The National Land Policy was inaugurated in June 1999 after considerable discussion by the different stakeholders. The current administration believes that it does not go far enough to serve as a basis to reform land administration in practice and has begun revising it by adding new initiatives such as the policy o f returning vested land to the customary owners and paying compensation on outstanding claims on lands acquired by the State (See GoG's Land Policy Statement in Annex 13). There i s also a need to re-examine the policy in the light o f the legal review to be conducted. Draft land policies and legislation required for legal and institutional reforms would be widely disseminated and debated among the public before submission to Cabinet for approval and to Parliament for enactment. The detailed review that needs to be done ifthe broad objectives o f GoG and those o f LAP-Iare to be met includes: 0 Considering and elaborating policies that are unclear and establishing new policies; 0 Preparing a prioritized list o f land laws andjudicial decisions for review; 0 Developing new laws where necessary legislation i s lacking; 0 Resolving conflict and overlaps, and redrafting laws so that they are consistent with the Constitution and inharmony with customary practice; 0 Recommending legal and policy changes to the Minister, MLF and the Attorney General; and 0 Obtaining Cabinet approval for revised and new policies and legislation. This review work will be undertaken by a team o f consulting lawyers, led by the national legal adviser consultant o f the project, in cooperation with the Law Reform Commission and the Statute Review Committee and the MLF Minister. It i s likely that these individuals may form a core standing group over the project lifetime involving different personnel and expertise depending upon the issue under examination. This review may need to be undertaken in stages and changes to current legislation identified on an incremental basis. It will build upon the findings o f consultations through land policy fora at the local and national level, and the findings o f pilot experiences and studies on specific subjects. Policy and legal development will therefore be an on-going activity. Detailed discussion on Ghana's land policy and land legislation i s contained in W P 1 o f GoG's project proposal. (Hereinafter, such working papers will be referredto as W P followed by their number, e.g. WP2). The law for reorganization of land sector institutions would be tabled to Parliament no later than December 31, 2005, while the laws related to acquisition o f land and land policy will involve more public consultation and will take more time. The draft o f either a comprehensive new land legislation or a series o f revised land acts would be prepared and tabled before Parliament no later than four years after the date o f credit effectiveness. A suitable legal advisor consultant will be recruited and posted in L A P U - 42 - to follow-up on the implementation o f this component. Specific issues which would be addressed during the project's lifetime include: Clarification o fthe relative weight o f interest inthe allodial and customary freehold entitlements; Clarification or revisit o f the constitutional position on customary freehold; provision o f mechanisms through which customary occupants may register their traditional interests (including customary freeholds) without loss o f rights intheir conversion to leaseholds and the subordination o ftheir rightstherefore to tenancy o f a lessor; Examination o f ways through which spousal and family co-ownership may be further developed in policy and law; Exploration o fways through which local group occupancy and rights such as inrespect o f local forest, woodland, swamps (sacred groves) and other resources may be made registrable entitlements (e.g. commonhold); Legal provision for simple inventory registrationwhere cadastral titling i s not feasible or affordable by rightholders; Clarification and provision of legal instruments through which customary authorities may establish the boundaries o f their land administration jurisdiction without these boundaries necessarily implyinglandlord status such as currently implied inthe allodial entitlement; Re-examination o fprocedures for re-vestingland in landowners which enable certain conditions to restitution o f ownership to local landowners, such as reducing the scope for landowners to seek compensation for lands upon which schools, health clinics, roads and other developments o f direct benefit to the landowners have already been constructed; and Development with traditional land authorities o f mechanisms through which land interests heldby strangers and tenants may be better protected. Other policy and legal points are expected to arise during the project's lifetime. Among these are issues arising from these three pivotal areas: 0 the interface between the customary and non-customary administrationsectors with a view to providing clear relationships; 0 the role o f local governments (district assemblies) in land administration, inlight o fthe national commitment to decentralization, and 0 the extent to which customary land administration systems will need more specific statutory support. Subcomponent 1.2 Exueditinp Settlement of Land Cases in Courts And Developing Alternative LandDisuute ResolutionMechanisms: The history o f land boundary disputes inGhana is one o f long delays with a growing backlog o f proceedings. The Stool Land Boundary Settlement Commission set up under respective decree and law in 1973 and 1986 was not effective and has been disbanded with responsibility for deliberation on disputes passed to the judiciary. There are currently about 35,000 land disputes before the courts. The prospect o f early resolution o f these cases i s very low. The project would provide resources to courts in regional capitals to clear this backlog as speedily as possible. Because resolving land disputes through the courts i s a protracted and costly proposition, alternative methods o f resolving them will be pursued under the project. While the pilot land titling areas would be selected on the basis o f general agreement concerning boundaries, some disagreement can be expected when boundaries depicted graphically are transferred to the ground. In such cases, land titling will not be done on land parcels or allodial land boundaries until they are mediated and amicably resolved by the contesting parties. The approach to mediation involving elders in the communities would be hierarchical, First, the disputes would be resolved on the ground between representatives o f stools/skins or land owning families. Cases that could not be resolved at this level would be referred to the Local Advisory - 43 - Committee (LAC), which would intervene to assist in reaching a mediated solution. The L A C would be established at the district level and its members selected from community elders jointly by the District Assembly and the chiefs inthe district in consultation with the community. A public awareness campaign would be conducted before establishing LACs. Cases would go to courts only when the L A C fails in the mediation. In Ashanti Region, this would be modified with the intervention o f the Asantehene's court before reference to the civil courts. LACs would be established prior to commencement o f landboundary demarcation and registration inany community. (See WP 8 for details). The project would support ongoing activities in altemative dispute resolution (ADR). A judiciary task force has been created to develop a training program for the judiciary and registrars o f courts. A draft ADR bill is currently being circulated by the task force with the expectation o f a final version being presented to Parliament in2003. The project will link the following ongoing activities into this process: 0 the work o f the Human RightsCommission; 0 the GTZ-assisted legal pluralism and gender project; 0 the research studies in altemative dispute resolutionbeingundertakenby IDS with ILMAD; 0 the justice reformprogram being developed; and 0 the NorTrad mediationproject inthe north supported by DANIDA. Subcomponent 1.3 Inventory Of All Acauired State Lands And DeterminationOf Outstanding Comuensation: GoG has declared its intention to retumvested land and land compulsorily acquired by the State, for which compensation has not been paid and i s in excess o f the needs o f Govemment, to its customary owners. The State would develop a realistic, fair and timely compensation policy and disclose it to affectedparties. This policy would be applied consistently across the board inpaying compensation for all lands it wants to keep but for which it has not paid compensation. Implementation o f this decision requires detailed demarcation, surveying and valuation o f such lands. The project would support this work to be carried out by private contractors under the supervision o f the Lands Commission, the Survey Department and the Land Valuation Board. However, it should be noted that IDA funds cannot be used for payment o f compensation for land forcibly acquired by the State. Subcomponent 1.4 Policv Studies: Policy studies, including public consultation, would be undertaken to inform and enlighten the discussion and formulation o f new land policies and preparation o f new land legislation. Direct support to ILMADto undertake some o f these studies in addition to studies contracted out to other researchbodies and NGO's would be provided by the project. Facilities would be developed to discuss and disseminate research findings.Policy studies that have so far been identified include: 0 Land Tenure Registration, to formulate government policy on what rights will be registered on land titles, especially customary land rights and particularly the rights o f vulnerable populations such as women, migrants and tenants. This study would also address the issue o f rights acquired under customary freehold and common law freehold and how these rights are to be recorded in the land registry. 0 Divestiture of vested lands, to examine the process and effect o f divesting lands inthe northem third o f the country in 1978/79 to assist in the development o f appropriate conditionalities for divestiture relating both to prior property rights but also to future transparency and accountability for the administrationo f lands divested. 0 Finance and Fees Structure of Land Administration System, to formulate government policies on fees and taxes which are conducive to the financial sustainability o f the system and at the same time ensure registrationo f land transactions and inheritances, taking into account the users' willingness to pay and the need to correct land market distortions. - 44 - 0 Gender analysis, to examine how project activities can be informed by the input o f and participation bywomen and designed so that women will benefit fromthose activities. 0 Performance of Customary Land Authorities, to review and assess the current land administration services provided by customary land authorities through interviews with those who have used their services in order to inform the process o f setting-up customary land administration secretariats and their governance. The findings o f the policy studies will be widely discussed with stakeholders and publicized inthe media. (See WP 1for details). Subcomponent 1.5 Policv Development Process: The government adopted the National Land Policy in 1999 after protracted debate. While this document states the government's objectives, it can be seen as a delineation o f government's intent for a land policy. There are already recognized shortcomings o f the document in terms o f detail, relation to other government activities, and timetable for implementation of the policy. The project would support an ongoing discussion o f the land policy in light o f project activities and legal reform. This activity would establish a structure through which a wide range o f actors may participate in policy formulation development and finalization. The mechanisms for this would vary by area but would broadly be designed to include representative land holders, traditional land administrators, local government and public sector land service providers, nongovernment agencies operating in the area and other interest holders. Such fora would be incrementally developed where the project i s focusing implementation such as in pilot areas. They are likely to develop at customary area or district levels as appropriate. This will enable stakeholders to review legal or policy proposals and findings from studies to be examined in light o f their own practical situations. NGOs may be invited to submit proposals to help establish these fora and networks to link these with a national land policy forum. The project will seek advice from the existing LANDNET initiative as to the best way to proceed. LAPU will be responsible for identifying a coordinatingpoint inthe Ministry of Lands and Forestry. Project Component 2 US$29.22 million - Institutional Reform and Development The existing land administration system i s highly fragmented and overlapping. The strategy for dealing with this problem i s to: 0 streamline the roles and functions o f public land administration agencies, restructuringand strengthening them under one umbrella for efficient delivery of services; 0 decentralizing land administrationservices; and 0 buildingthe capacities ofthe customary landauthorities. - 45 - Subcomponent2.1 Restructurinpof Public Sector Land Agencies: A comprehensive organization, management and operations (OMO) study o f all the land sector institutions i s being undertaken, financed by the project preparation facility provided by IDA. The main objective o f the study is to develop a structure for the land administration sector as a whole that would achieve transparent, effective and efficient delivery o f land administration services that satisfy customer requirements. Establishinga single land sector agency combining all the current six agencies and providing a one-stop-shop service (OSS) to customers may be difficult at the beginning, given the entrenched identities and interests o f the public land sector agencies. However, this should be the preferred model to be considered. General agreement was obtained, during project preparation, that a model combining all land sector agencies under a proposed Surveying and Land Administration Commission or Land Management and Development Commission would be feasible. This i s elaborated in WP2. The study team will work very closely with staff o f all the land sector agencies as well as collaborate with the World Bank-supported National Institutional Renewal Project (NIRP) and take into account the guidelines and policies that have evolved by the government under this initiative. The study will conduct a political analysis o f the gainers and losers o f the institutional reform, identify champions for the reform and recommend a strategy for leveraging their influence and effectiveness. The project will support this study and prompt implementation o f the recommendations agreed upon with the MLF.The terms o f reference for this study i s given in the PIM. The study would be completed and agreed upon recommendations will be adopted no later than December 31, 2004. The draft legislation restructuring these agencies will be approved by the Cabinet no later than December 31,2005. Subcomponent2.2 Decentralizinpand Strenptheninp LandAdministrationServices: To the extent possible and practicable, land administration services would be provided at the district level. Integrated user-friendly OSS centers would be established, initially at national and regional levels and subsequently at the district level, and supported in order to make land administration services more accessible and responsive to the community. Planning for this component would be closely linked to subcomponent 2.1 above and subcomponent 2.3 below. That is, the study to identify rationalization o f agency services would include careful consideration o f requirements for improving local access to services. It could be the case that the first implementation o f restructured agency services i s delivered in the form o f integrated OSS at the district or even customary authority level where these involve large areas. The role o f district assemblies in providing land use planning services would be strengthened. This subcomponent also has close links with subcomponent 3.3 for the establishment o f model land titling and registration offices at the local level. A business model for the management o f the land sector agencies will be developed. Inaddition, a human resources management and development study will be carried out, based on a skill gap analysis, in order to develop a coordinated staff training and recruitment program. The core o f the training would be good governance and raising the consciousness o f staff to be customer and service-oriented. The capacity building program would include private sector, NGOs and research and educational institutions. An improved working environment by way o f purpose-built offices, equipment, transport and operating budget would be provided under the project. Technical assistance would be provided in the introduction o f new and more efficient systems and procedures. This will apply particularly to land title registration as much greater demand will be placed on this service with the increased output and increased business arising from the project. Support will be provided for this reorientation o f land service delivery and for computerizing the Land Commission and Land Registry records. (See WP 4 for details). - 46 - Subcomponent 2.3 Strewthenin9 Customary Land Administration: The goal o f this component would be to lay the foundation for clearer and more cohesive development in the customary land administration sphere and for its further consolidation and evolution in subsequent land administration projects. To lay such a foundation, the project would work directly with customary land authorities to help them improve and develop customary land administration. Institutionally, in some areas this would result in the establishment o f centralized secretariats modeled on the Gbawe family (Greater Accra) and the Asantehene's land secretariats to which early project support would be given. In others, village land committees or similar institutions would emerge as the formal administrative authority under the aegis o f the local chief, tindaana or family head. Inall cases, the development o f institutions and systems that are participatory and accountable to community membership would be encouraged. In consultation with community members, customary land administration authorities would be assisted to: consolidate and develop landholding rules and develop public land allocation and transaction procedures to limit double allocations; adopt simple land use planning of the customary area to minimize inappropriate land use and protect areas o f common interest to the community; identify and resolve overlapping claims o f rights among landholders; develop more effective dispute resolutionprocedures, including the adoption o frecord keepingto help establish precedent; reach agreement with neighboring communities on the boundaries o f the customary and area; establish simple registries to record land allocations, transactions and land use planning decisions; develop forms o f certificates or entitlements which precisely reflect the nature o f rights over the property awarded and the terms and conditions; methodically identify, adjudicate, demarcate and register holdings inthe customary area, without formal survey input as appropriate; and develop mechanisms which improve the security o f those identified as most likely to be vulnerable, women, very poor and landless families inthe community and strangers and tenants. In these and related tasks, the project would assist customary authorities to work with formal land administration agencies to enable the development o f procedures that are simple and cheap for landholders and customary administrators but also interface with more formal survey and registration procedures. The project would also assist customary land authorities to work together for mutual problem solving and to use traditional councils or other fora to inform policy making at district, regional and national levels. Implementation o f this component would proceed through piloting in selected areas in all ten regions. These would sample rural, urban and peri-urban cases and areas where different levels o f complexity and conflict in customary land relations exist. Over five years, it would be expected that up to 50 customary land areas would receive direct facilitation and support. Replication and expansion, if appropriate, to upwards o f 500 other customary land areas (villages or larger units) would be through development and dissemination o f best practice models, formulation o f guidelines, participation in workshops, and opportunities for more structured training. Implementation would be heavily dependent upon able facilitation and the project would identify and fund a lead facilitator in each region. These facilitators would be coordinated by a national facilitator. Periodic technical assistance by recruited national or internationalexperts as appropriate would be provided. Outputs would include: 0 a manual o f procedures, devised on the basis o f learning by doing experience; 0 an institutional plan for providing sustained support to develop customary land administration; 0 development o f a training course for traditional land authorities; 0 identification o f the statutory provisions needed to support administration inthe customary land sector; - 47 - 0 significantly improved customary land administrationin at least 50 customary land areas and improved administrationinupwards o f 500 other areas, including improvements inthe full complement o f areas from local adjudication, allocation and recordingprocedures to rules which protect the land rightso fvulnerable sectors; and 0 a body o ftrained facilitators who may incrementally service interested customary communities. For many elements o f this subcomponent a detailed work program will be developed during project implementationwith technical and financial support by DFID, linking directly with policy, legal, institutional and technical developments laid out in other components. Some o f the routes for linkage are articulated inthe PIM. Subcomponent 2.4 Strengthening the Private Land Sector Institutions: The Survey Act and associated regulations provide for the Director o f Surveys to appoint licensed surveyors operating in the private sector to undertake surveys on behalf o f government. There are about 25 licensed surveyors and five middle-sized firms operating in Accra. A further 9 individuals operate in Kumasi. As surveying and mapping work expands to service allodial boundary demarcation and systematic land titling and registration, the current capacity and capability o f the private sector will need to be expanded and training programs developed for private sector surveyors. Individual surveyors would be encouraged to form companies to take advantage o f economies o f scale to acquire modem digital survey and mapping equipment to provide more effective service. The Ghana Institute o f Surveyors will be supported to facilitate this. Currently, the licensing o f private surveyor rests solely on the Director o f Surveys. The Minister, MLF will review the procedure for vetting and licensing o f private surveyors with a view to make it more participatory and transparent by establishing a board or a committee on which the profession and the academic community are represented. (See W P 2 for details). Subcomponent 2.5 Strenptheninp Land Administrationand Manapement Training and Research Institutions: The main institute for professional education in surveying, mapping, land administration and management i s the Kwame Nkrumah University of Science and Technology (KNUST). The Center o f Land Administration (CLA) i s also located at KNUST. However, KNUST does not have adequate logistics to deliver high caliber training in these fields. The project will support the construction o f classrooms, offices and laboratories and the provision of modern digital surveying and mapping equipment for KNUST to enable adequate hands-on experience for trainees in advanced technology currently used in most geo-spatial organizations. The Department o f Land Estate Management and the proposedDepartment o f Surveying of the Kumasi Polytechnic will also be supported under the project to enable them train specialists and technicians in land administration both for the public and private sectors. (See WP 2 for details). The Institute for Land Management and Development (ILMAD) o f KNUST and the University o f Ghana have also research facilities that could support the project, an efficient runningo f a modern land market and a relevant system o f land administration in Ghana. Besides the expansion and modernization o f the teaching facilities at ILMAD,the project will support these institutions to provide research in land tenure issues, land use planning and land management as well as conducting beneficiary assessment and impact evaluation o f the project's interventions. Part o f the research and M&E budget o f the project will be earmarked for these institutions, while they would be allowed to compete inbiddingfor contract work to access additional funds for research services they are capable o f providing. (See W P 2 for details). Project Component 3 US$ 16.30 million - ImprovingLandTitling,Registration,Valuationand InformationSystems - 48 - Subcomponent 3.1 Develoument of Cadastreand LandInformationSvstems: The fundamental data set forming a land information system (LIS) i s the cadastre which records the physical location o f the land parcel, the nature o f its tenure, the rights held over it and the holders o f those rights. A range o f other information related to land use and land values, as well as natural and man made resources, might also be linked to the cadastre recorded inthe LIS. The manual LIS currently beingused inGhana i s in the form of hard copy graphical maps, cadastral data and textual records. However, the linkage between these manual records has been poor and accessing the data has been difficult. As Ghana moves towards increasing use o f digital technology and GIS systems, there i s a need to design a properly structured computer-based LIS that records the basic cadastral infrastructure and better allow user access and integration within different data sets. This would lead to a reduction in the duplication o f data recording across agencies and would provide a means for developing better security measures for the extremely valuable cadastral and tenure records stored in archives across the land agencies. The project would provide for an establishment o f such computer-based LIS which i s secure and the training o f staff on its operation. Designing the LIS and its operation will involve the participation and collaboration o f the Survey Department, Land Title Registry, Land Commission, Land Valuation Board and Town and Country Planning Department towards achieving the common goal o f an effective LIS. The individual responsibilities o f each agency would be clearly defined and a program established to transform the current manually stored data into a more easily managed computer-based system. Technical assistance would be provided under the project in developing and implementing the LIS on a common information technology platformshared by all land sector agencies. (See WP 3 for details). Subcomponent 3.2 CadastralMauuing: Inadequate survey and mapping contribute to lack of clear definitions o f boundary locations that result in the large and growing number o f land disputes that are severely hinderingthe effectiveness o f land administration and the land market. Lack o f suitably accurate cadastral plans and maps to record parcel locations i s leading to uncertainties about where parcels and which parcels have already been registered, often resulting in the same parcel being registered to more than one landholder, either by accident or by deliberate fraud. The cadastral mapping sub-component i s aimed at producing digital and hard copy maps at appropriate scales for customary land boundary demarcations, systematic land titling inurban areas and land use planning. The effort would be ledby the Survey Department which has gained much experience from other Bank-funded urban projects. An intensive program o f base (topographic) and cadastral mapping, based on rapid production photo-mapping techniques, and supported where necessary by extension o f the national geodetic control network will be launched. The present geodetic framework i s weak, incomplete and i s in imperial units of measurement. The network will be recomputed and adjusted to provide effective support to the development o f a computerizednational LIS. Modern survey and mapping equipment would be procured for the Survey Department supported by staff development and training programs. Included among the equipment would be systems based on digital survey and mapping technology to take advantage o f the benefits offered by digital technology. The benefits include, in particular, production efficiencies and facilitating the development o f a national LIS that will lead to wider availability and use o f large scale spatial land data for national planning and land administration. The project will support the construction o f purpose-built offices to adequately protect expensive and sensitive survey and mapping equipment, However, care shouldbe taken not to overbuild the capacity o f the Survey Department to the detriment of development o f the private sector to undertake cadastral survey and mapping on behalf o f the government. Private sector firms would be assisted to participate in the project by enhancing their capability and capacity as mentioned in Section 2.4 above. (See WP 3 for details). Subcomponent3.3 Establishment of Model LandTitlinP and Registration Offices: One-stop-shops (OSS)where clients would submit their request for land administration services to one office that would - 49 - process the request and deliver the necessary documentation (titles, deeds, etc.) for prescribed fees would be established on a pilot basis for up-scaling in subsequent projects. The type o f OSS and the range o f services they provide need to be experimented with under Ghanaian conditions. A OSS can have all the service providers or processors located in one buildingor it can be a cheaper model o fjust a front office to accept the service request forms from clients, send it to the appropriate land administration agencies for processing, collect the processed documentation and deliver it to the client and receive the appropriate fees. Such OSS could be operated from an office o f a District Assembly, a bank, a post office, etc. An important consideration in establishing integrated OSS versus a front office would be the cost involved in expandingtheir establishment nationwide. The OSS concept would be developed during project implementation in two stages. Stage one would be establishing OSS at the new land sector offices inAccra and Kumasi to be constructed under the project. This would be o f the integrated type OSS where all service providers would be located at the same building or compound. This would be followed in stage two by establishing three district OSS each in Greater Accra and Ashanti regions. These district OSS would be the front office type. The scope o f these OSS would be developed duringproject implementation as experience i s gained from the activities inthe Accra and Kumasi OSS. Either within the Accra and Kumasi cases or as a third stage, consideration will be given to how OSS may most satisfactorily operate in rural areas and where the demands for service support to Customary Land Authorities (CLAs) may be more modest. This development will go hand in hand with activities under component 2.3. This seeks, among other objectives, to assist CLAs to develop simple record systems for existing land interests ahead of cadastral development or survey mapping in those areas. The project would work with CLAs to develop a simple inventory system o f land recording which several hundred CLAs could be assisted to utilize. Care would be taken to maximize uniformity o f land administration systems among CLAs to enable them provide a foundation for possible survey o f land holding in those areas at later dates. This development will also serve an important function as a rqute to assist CLAs to identify and resolve overlapping land interests on the ground, the persistence o f which has frequently rendered formal entitlement process impossible. It will also serve to introduce a large number o f CLAs to land record keeping processes. Late inthe project, a detailed review o f the OSS experience will be conducted. This review will include a series o f stakeholder workshops and will be distilled into a comprehensive report setting out recommendations for future phases o f the land administration program. Establishment o f the OSS as single point o f initial contact for all land administration information and service should be a primary element of an overall government objective to renew confidence in the land administration system and build trust in the agencies responsible for its administration. This means the OSS will be responsible for: receiving and responding to all public and institutional enquiries on land administration procedures and processes; receiving all routine documents for processing by the respective responsible agencies; linkingthe public with specialist assistance inthe relevant agency as needed; setting performance standards for enquiry and document processing (e.g., turn-around time) and monitoring against these standards; developing and implementing document tracking systems; dispatching all processed documents to applicants; receiving all fees and charges and accountingthereof; developing multi-skilled staff through training programs; conducting public awareness and education campaigns to encourage public participation and trust in the landadministrationsystem and the responsible agencies; - 50 - 0 conducting customer satisfaction surveys and programs to mitigate dissatisfaction and improve services. (See W P 2 for details). Subcomponent3.4 Improvementof Deed and Title Registration: Although it is government policy to phase out the deeds registration, the deeds registry will continue to operate well into the future because it contains almost 160 years o f records that will be, in some cases, relevant for decades to come, particularly in relation to easements and long term leases, The land titling system will ultimately supersede the deeds system but, because many areas will not be reached by land titling activities for many years, the deeds system will remain active long into the future. The project will, therefore, strengthen both the deeds and title registry o f the Lands Commission and the Land Title Registry. Records management will be improved by developing simplified administrative procedures to streamline processing, improve efficiency and reduce processing time. Purpose-built offices with air conditioning, fire protection and proper building security would be provided. Management o f paper records would also be improved by the provision o f adequate storage facilities. Computer software that enables systematic digital storage and retrieval o f indexes and documents and file tracking would be installed and staff trained in developing and operating the system. This would facilitate computerized title and leasehold search, reducing transaction time and costs and minimizing fraud. For the Land Title Registry, conversion o f the paper record to digital format would start with the most recent entries and work backwards to 1986. Technical assistance would be provided under the project to improve the organization and procedures o f the Registry's operation and to develop the computerized record system and train staff. (See WP 4 for details). Subcomponent 3.5 Land Use Planning and Management: Because land use planning and management has not received sufficient attention and support, human settlement and land use, particularly in urban and peri-urban areas i s not efficiently guided, leading to land speculation, illegal land development and degradation o f the environment. The process o f issuing land development and buildingpermits is cumbersome and costly and slows down the formal land titling process. A coherent, streamlined and sustainable land use planning and management system would be developed as an integral part of the land administration system based on a decentralized, consultative and participatory approach designed to facilitate and manage human settlement development for providing better living conditions in balance with the environment and supporting a sustained and accelerated rate o f social and economic development. The need for better land use planning and control i s nowhere more apparent than in peri-urban areas o f Accra, for which reason Greater Accra will be chosen as a focus area. To achieve better planning inthese and other areas development and adoption o f new laws, new approaches to town and country planning and institutional strengthening will be required. The land use planning subcomponent will: (i) and test models and processes o f landuse planning develop and development controls with clear definition o f roles and responsibilities at the district, region and national levels, inpartnership with and participation o f the communities and the customary land holders; (ii)develop and test simplified and operational procedures of inter-linkage between land tenure clarification, land registration and land use management at the local level as an integral part o f the land administration system and efforts to develop a transparent and efficient land market; (iii) develop and draft a coherent and modernized legal framework for town and country planning, including model guidelines and regulations, as a component o f the overall legal reform o f the land legislation; (iv) implement information systems including new orthophoto base maps and integration o f existing data (maps and other data) suitable to support integratedplanning at all levels; and (v) support implementation o f land use planning and development controls in Greater Accra Region and selected pilot areas in other Regions. -51 - Subcomponent 3.6 Establishment of a National Land Valuation Data Base: Although the Land Valuation Board (LVB) has primary responsibility for land valuations, a host o f other government and quasi-government institutions also perform land valuation functions. The LVB has been unable to establish a register o f values and publish the bulletin o f official notification o f values due to lack o f resources. A draft Valuation Bill i s being prepared to address duplication o f valuation functions by introducing the National Land Valuation Board (NLVB). The project will assist NLVB to develop a strategic plan for the establishment and maintenance o f the national valuation database to support all valuation functions in Ghana and to use the database as a basis for the publication o f official information in respect of land values as provided in the proposed legislation. A series of pilot mass appraisal operations i s proposed under this component to assist in rapidly building a database o f unambiguous values for parcels in selected urban areas. Using the private sector, the LVB will test rapid appraisal techniques and update valuation rolls for use in landtransactions and for the determination o f appropriate duties and taxes on those transactions, taking into account the users willingness to pay, maximizing government revenues from land taxes, and correcting land market distortions. In this respect, recommendations o f the policy study on finance and fee structure o f the land administration system, mentioned in Section 1.4above, will be implemented. (See W P 5 for details). Subcomponent 3.7 Pilot Proiects in Demarcation and Registrationof Allodial Land Boundaries: The basic ownership o f land in Ghana is the allodial interest which rests with the customary authorities as trustees for all members o f the community. Most stool/skin, tendamba and family lands are not registered and the transient nature o f the landmark boundary descriptions such as trees, foot paths, streams, etc. make it easy to contest boundaries. Disputes between stool/skins, or between families and stool/skins, are commonplace. Rights to leases o f land lack credibility, or value in the marketplace if different stoolhkins, tendamba and families contest the underlying allodial rights to the land. The basis for this pilot i s that certainty o f allodial rightsi s the starting point for the registration o f subsequent rights which flow from this root title. The objective o f the pilots i s to develop field proven, efficient, transparent and community accepted procedures to define and demarcate the boundaries o f stoolhkin, tendamba and family lands, register the rights to these lands and establish with certainty the root title to land in Ghana. The specific objectives o f the pilot would be to develop: 0 efficient and cost effective methods o fboundary demarcation with defined standards o f survey and boundary demarcation; 0 a community participationprogram to maximize inter-stool and intra-stool consultations and active participation inthe demarcation process; 0 create a system for effective mediation o f boundary disputes through community participation; 0 registrationo f agreed allodial rights; and 0 contributions to the development o f transparent systems for the management o f stool/skin, tendamba and family lands which are not subject to individual freehold or usufruct, such as for forested areas, administered directly by chiefs as trustees. Pilot areas would be selected to represent all types o f land tenure in Ghana, i.e., stool, skin, tendamba and family lands. Care would be taken to avoid areas where there i s pending litigation or active boundary contest. In order to gain from past experience, the reasons for the failure o f past boundary commissions to execute this work will be closely examined and current initiatives in some regions to define allodial boundaries will be visited. Members o f the community will be involved in the allodial boundary demarcation exercise. It may be necessary in some cases to begin the process through identifying sub-stool or family land boundaries to build up an accepted picture o f the boundaries o f the allodial holding. This work will assist inthe establishment o f a system to maintain the register o frights within the stool/skin and family. On completion o f the pilots the experience would be scaled-up. The communication strategy to be developed under the project to sensitize all stakeholders on land - 52 - administration issues and problems (Subcomponent 4.3), will include information on those procedures which have been shown to be most effective and acceptable to participants. (See Volume I1o f the project preparationreport for details). Subcomponent 3.8 Pilot Svstematic Land Titling and Registration: The 1986 Land Title Registry Law provided for a systematic conversion o f rights from the deeds system to title. It was prescribed that the process be undertaken in a progressive manner within designated jurisdiction which were to be formally declared as registration districts. It was put in place to improve tenure security and provide certainty about land ownership and land transactions as an essential part o f a reformed land administration system. It was envisaged as rendering security and safety to land transaction, minimizing land disputes and litigation. However, after 15 years o f operation, there have been less than 12,000 titles registered with a commensurately small number o f derivative transactions. There are about 37,000 applications awaiting registration. The objectives o f the titling program have not been achieved, adding to the uncertainty o f land tenure with the attendant undesirable social and economic impacts. Defects in the law are partly to blame. This is the case, for example, where land holders are unable to complete the processing of their rights until there is more clarity in the status o f the customary freehold. It is generally concludedthat the major reason for such low title registation is not the defect in the law, but in weaknesses in the mode and speed o f its implementation. The proposed systematic land titling and registration pilot under the project would test ways o f accelerating the registrationo f titles in both the customary settings and legitimately acquired state lands subsequently sold or transferred to individuals, organizations and firms. The process would be undertaken on ajurisdiction basis, Le., whole district, sub-district, village or urban wards, in a transparent and participatory manner by bringing the title registration closer to the community. The project will support systematic titling which i s open, accessible, widely publicized, highly visible and based on an integrated delivery o f services by a small operational unit located within the pilot target areas. The objective i s to test and implement efficient procedures for systematic adjudication and cadastral mapping to accelerate the registration o f land title in Ghana. Initially, three pilot areas will be chosen within existing declared title districts in Accra, Kumasi. and the lands o f the Gbawe family inGreater Accra. Scaling-up to other title districts will take place after evaluation and consolidation o f the experience in the initial pilots. It i s envisaged that about 300,000 titles would be registered through this development. An effective communication strategy would be implemented to facilitate the pilot land titling and registration program. Alternative approaches to registeringrights in the customary land sector would be explored under Section 2.3 above. This would be developed in conjunction with the land agencies to maximize consistency in recording format and especially identification o f plot numbers. (See Volume I1o f the project preparation report for details). Project Component4 US$7.51 million - Project Management, Monitoring and Evaluation Sub-component 4.1 Proiect Coordination. Monitoring and Evaluation: The project's overall management will be the responsibility o f the Chief Director (CD) o f MLF. The Land Administration Program Unit (LAPU), the secretariat of the project, will be located in the CD's office and will report directly to the CD. LAPU's head will be the Project Coordinator, who will be designated to coordinate and monitor the day to day activities of the project under the guidance o f the CD. L A P U will be manned by six professionals to enable it coordinate implementation o fthe project, provide facilitating services for I A s and follow-up on pending issues. These will be: (i) Project Coordinator; (ii) Advisor; (iii) The Legal Social Science Specialist; (iv) Public Administration Specialist; (v) Communications Specialist; and (vi) Internationally Recruited Project Management Advisor. The detailed terms o f reference o f LAPU and the job description o f its staff are provided inthe PIM. The staffing o f the L A P U with these specialists will be a condition o f disbursement o f IDA funds under the project. - 53 - The LAPU staff will ensure that all the technical assistance and other inputs the IAs require for implementing agreed upon workplans and budgets are provided in a timely and adequate manner. L A P U would be responsible for organizing training, workshops and seminars and implementation o f the communication strategy under the project. The heads o f all departments, agencies, sections or units will be responsible for the implementation o f components, sub-components or activities assigned to them for implementation. They will execute the annual work plans and budgets agreed upon and monitor and report on implementationprogress, including retums on expenditures. Financial management and procurement involving national and international shopping and bidding will be the responsibility o f the Finance and Administration Department, MLF. IAs will finance operating expenses and procurement o f small-ticket items on the basis o f an imprest advance whose expenditure has to be fully accounted for prior to its replenishment. Proiect Oversbht: MLF will be assisted in the implementation of the project by two oversight committees. A high level Lands Policy Steering Committee (LPSC) that will provide guidance on the policy and management aspects o f the project and a Lands Technical Steering Committee (LTSC) that will provide guidance and supervision on the technical aspects o f the project. Members o f the LPSC will be the principal stakeholders and prominent professionals in Ghana's land policy; Le., Minister, MLF (Chairperson); Deputy Ministers o f the ministries o f Lands and Forestry (Lands), Justice, Local Government and Rural Development, Information and Presidential Affairs, Food and Agriculture, Women and Children's Affairs; Chairman, Select Committee o f Parliament on Lands; Representative, National House o f Chiefs; Renowned land tenure scholar; Renowned jurist; President, Ghana Bar Association; Representative o f land sector NGOs; Representative o f Academic or Research Institutions; and Head o f the National Women's Development Council. The Project Coordinator will be Secretary o f the LPSC. The LTSC will be chaired by the Chief Director, MLF and comprise all the heads o f all the project implementation agencies as well as the Technical Director (Lands), MLF; Director, Finance and Administration, MLF; Director, PPMED, MLF; Coordinator, National Institutional Renewal and representatives o f the ministries o f Finance and Information and representative o f land sector NGOs and the Bar Association. The Project Coordinator will be the Secretary o f the LTSC. Sub-component 4.2 Human Resources Development: A skills gap analysis would be conducted in conjunction with the institutional reform study and a human resources development plan prepared. The project will support the implementation o f this plan that will be managed by LAPU. Technical assistance will be provided for the skill gap analysis and preparationo f the plan. The plan will include in-house and in-country short courses to upgrade the skills o f staff across the board and in-country and extemal post graduate training and study tours for selected key professionals. Sub-component 4.3 Monitoring and Evaluation (M&E) and Impact Assessment: The project will design a system for M&E and impact assessment based on participatory approaches. It will be used both to track overall project performance and impact, using the key indicators in the project's logframe, through qualitative and quantitative enquiries and data collection, review o f work plans, timeframes, and financial performance, and ensure that lessons learnt will be fed-back into project implementation on a systematic basis to ensure the project remains responsive to ever-changing national and local conditions, While overall responsibility for the monitoring and evaluation o f the project will be that o f the PPMED, MLF, monitoring of implementation progress will be the responsibility of I A s with guidance and oversight by PPMED. Key monitoring indicators will be agreed upon and reporting formats developed - 54 - jointly by PPMED and IAs who will utilize the monitoring information as management tools to improve their performance, The I A s will submit their monitoring reports to PPMED at agreed intervals. PPMED will be responsible for compiling monitoring reports o f all IAs into a coherent whole report for GoG, its development partners and the public at large. PPMED will contract out beneficiary assessment and impact evaluation work to academia, think tanks, NGOs and private consulting firms. PPMED will, in consultation with IAs, be responsible for preparing the TORS, selecting and supervising the entities contracted to carryout beneficiary assessments and impact evaluation and the publication and dissemination o f the findings. PPMED will be strengthened with additional staff, training and logistics to carry out these functions effectively. PPMED will provide regular reports and organize seminars on project progress to the development partners, cooperating sector agencies and ministries, key project stakeholders, and feed these into the project's broader communication strategy. This will ensure that all project actors are well-informed and up-to-date about project activities. Key principles underlying the M&E approach thus include enhancing partnerships between the different stakeholders, and adopting a "learning approach" which recognizes that diverse experiences will be generated, from which lessons can be learned to be fed back into the project process. A structured format for ensuring this cycle o f "action-M&E-feedback-revised project planning-action" i s critical for the success o f this project. A degree o f flexibility will be built into the M&Eprogram, through a combination of qualitative and quantitative methods, such as semi-structured interviews, field missions, and open-ended discussions to complement more formal data collection through surveys. It i s envisaged that a number o f in-depth studies on specific topics, particularly on baseline studies and beneficiary impact assessment, will be conducted by local partners such as land experts at the University o f Ghana, ILMAD o f KNUST, NGOs and diverse "think tanks" based in Ghana. Ongoing research activities in Ghana and neighboring parts o f West Africa provide a further source o f complementary information o f value regarding impacts from land registration, and alternative approaches to providing tenure security. A systematic review o f experience could usefully be undertaken regarding how projects in Ghana and neighboring countries in the region have approached systems o f registering rights, interms o f organizational choices, technical issues, financial and fiscal implications, and impacts on different groups. This assessment o f findings from elsewhere i s a priority in order to identify sites for study tours proposed for the early years o f the LAP. In addition, as mentioned, it may well prove useful to engage specialists in Ghana or from elsewhere, to analyze project progress with the comparative perspective from other cases worldwide. Pilot activities will play a central role in providing concrete findings drawn from field level realities for further scaling-up. The M&E activities will needto link closely with all other areas o f project activity, to define appropriate indicators, and means by which this information will be fed-back into project management and appropriate revisions made. Integrationbetween M&E and other components will be o f particular importance for piloting o f strengthened customary land administration, the communication strategy, establishment o f baseline studies and exchange o f findings with ongoing research and NGO activities addressing land issues in Ghana. In the interests o f building on existing initiatives, the M&E activities will ensure close links with the GPRS and associated surveys to assess social and economic impacts o f the project. Implementation o f the project's M&E will be the responsibility o f the MLF (PPMED) with oversight by the Chief Director. The Director, PPMED, will liase with the MLF Financial Controller with regards to the monitoring o f the project's budget. Each IA will appoint a full-time M&E officer. Tasks o f the PPMED will include the design o f the overall M&E program, including methods and monitoring - 55 - instruments to be modified after field testing; participation in the selection o f relevant staff and the provision o f training in the implementing agencies; ensuring the processing and analysis o f data to provide information for reviews and reports; ensuring a triangulation o f methods for data collection to maximize reliability; organization o f formal and informal discussions, meetings, workshops for review and reflection on progress; establishing a feedback loop to and from all stakeholders concerned, and ensuring that lessons learned are incorporated into the project planning on an iterative basis. In addition, the Director PPMEDwill ensure liaison between M&E activities within each IA.The M&E programwill be designed prior to project implementation and a baseline survey o f the key indicators conducted, using funds providedby IDAunder the project preparation facility. Subcomponent 5.4 Communications, Consultation and Particbation: Strengthening customary land recording and conflict resolution systems, while achieving overall policy, legal and institutional improvements will require building long term political commitment, mobilizing support from diverse stakeholders, assuring a highlevel o f transparency and promoting the practice o f good governance. To be sustainable, improvements will also need to leverage the systematic participation o f affected land holders and users in identifying problems, formulating possible solutions, and implementing decisions at the different levels. MLF could facilitate these processes by integrating two-way communications systems directly into the daily operations o f the project implementation agencies. LAPU would then be accountable for producing a high level understanding o f the objectives, details and options inherent in project activities among all stakeholders and motivate active participation inmaking choices, influencing policy and resolving land administration issues. The Project's communications strategy will complement and enhance the project's social as well as M&E subcomponents as both o f these aim, among other things, to ensure that stakeholders' views and recommendations are incorporated into the project implementation and evaluation cycle. The strategy for achieving this process i s outlined inthe PIM. In brief, LAPU would include a Communications Specialist (CS) with a record o f professional achievement in both strategic communication (traditional external affairs, public and media relations) and development communication or closely related fields (agriculture extension, community development, civic and adult education). The CS would be responsible to establish and maintain a network o f communications officers from among the staff o f the agencies involved in project implementation to ensure two-way institutional communication flow. In order to accomplish this the CS would be supported by key authority figures in the L A P project and in the MLF. This would enable himher to be in touch with all key institutional stakeholders, maintain message coherence, veracity and timeliness o f information dissemination as well as receive and channel stakeholder views, suggestions and reactions to those responsible for the technical operations o f the project. The CS and the network would assure that communities, holders and users o f land are informed about prospective changes in land administrationpolicies, laws, regulations and procedures under review and given the opportunity to share their views and be involved in such matters as land allocation and the resolution o f disputes. Existing capacity within government services such as the Information Services Department (ISD) within the Ministry of Information and Presidential Affairs and MLF's extensive experience (particularly interms o f community outreach, mobilization o f support, public education and awareness raising) developed in the context o f its Natural Resource Management Program would be re-enforced and utilized in the Project's communications strategy. Services provided by the Ghana Broadcasting Corporation-especially rural radio time-would be purchased periodically to strengthen and complement other targeted communication activities. Similarly, NGOs and civil society organizations with relevant experience, would be contracted as requiredto provide different communication services at national and regional levels (opinion research, public dialogue, development o f selectedinformation, education and communicationmaterials) and at the - 56- district and community levels (targeted dissemination, focus group discussions, conflict resolution, collection o f feedback, etc.). Over time, it i s envisioned that local communities would assume greater participation and control over the planning and implementation o f local-based campaigns, through for example, design and implementation o f inter-community campaigns. Communications actions would be integrated in annual work programs and adapted according to project cycles and changing needs. To initiate the program, the CS would be hired prior to project launching, ideally as part of the pre-implementation phase to ensure systematic consultation and information dissemination to key stakeholders within the land sector agencies and other institutional allies. Hisher initial tasks would include: (i)ensuring that indicators o f land related knowledge and attitudes are included in the M&E baseline survey; (ii)training of network staff and sensitizing agencies to the need for open communication; (iii)preparing an initial information package for general use (containing basic information and facts about the Project, the rationale behindit, key implementing agencies and expected outcomes); and (iv) establish a set o f guidelines to direct communications processes. The effectiveness o f the communications program would be monitored through indicators o f audience awareness o f land services and rights, accuracy o f information disseminated and the timeliness o f response to misinformation, volume o f feedback and appropriateness o f the response to it, proactive communication efforts initiated and sustained, creative approaches to harnessing opinions and elicit feedback. One indication o f ownership at the local level would be that communities are actively involved inthe planning and implementation of these programs and activities. A website would also be developed for the project to communicate information on its implementation stages, constraints encountered, envisaged solutions, policy development and land-related debates and concerns. Although the website would target select audiences such as policy-makers, media, private sector, legal and land specialists, it would nevertheless promote a venue to promote transparency, information sharing and monitoring mechanism. Project Component 5 US$O.SS million - Project Preparation Facility (PPF) - 57 - Annex 3: Estimated Project Costs GHANA: Land Administration Project Project Cost Summary by Components % %Total % %Total (Cedis Million) Foreign Base (US$ '000) Foreign Base Local Foreign Total Exchange Costs Local Foreign Total Exchange Costs A. HARMONIZING LAND POLICY AND REGULATORY REFORM (Component 1) 1.HarmonizingPolicy and Regulatory Framework a. Compilationof Judicial Decisions/a 303 30 333 9 - 37.9 3.8 41.6 9 b. Revisionof Laws and Regulations 569 833 1,402 59 - 71.2 104.1 175.3 59 Subtotal Harmonizing Policyand Regulatory Framework 872 863 1,735 50 - 109.0 107.9 216.9 50 2. Establishmentof RegionalLand Courts 997 2,044 3,040 67 1 124.6 255.4 380.1 67 1 3. Inventoryof CompulsorilyAcquired Land 571 743 1,315 57 - 71.4 92.9 164.3 57 4. PoiicyStudies 240 2,046 2.286 89 1 30.0 255.8 285.8 89 1 Subtotal HARMONIZING LAND POLICY AND REGULATORY REFORM (Component 1) 2,680 5,696 8,377 68 2 335.0 712.0 1,047.1 68 2 B. INSTITUTIONAL REFORM AND DEVELOPMENT (Component 2) 1. RestructuringPubiicSector Land Agencies 693 1,520 2,213 69 1 86.6 190.0 276.6 69 1 2. Decentralizing and Strengthenlng the Land Administration Services a, StrengtheningDecenbralizedLand AdministrationServices 27,363 33,913 61,276 55 16 3,420.4 4,239.1 7,659.5 55 16 b. Building the Capacity of Land Admlnstration Agencies Lands Commission 8,444 26,989 35,433 76 9 1,055.5 3,373.6 4,429.2 76 9 Land Title Registry (LTR) 2,161 3,504 5,665 62 1 270.1 438.0 708.2 62 1 Land ValuationBoard (LVB) 2,926 3,575 6,500 55 2 365.7 446.8 812.5 55 2 Office of Administrationof Stool Lands (OASL) 1,737 2,745 4,482 61 1 217.1 343.1 560.2 61 1 Town &Country Planning Department(TCPD) 2,816 5,276 8.092 65 2 351.9 659.5 1,011.4 65 2 Survey Department 10,224 18,155 28.379 64 7 1,277.9 2,269.4 3.547.4 64 7 Subtotal Building the Capacity of Land Adminstration Agencies 28,307 60,244 88.551 68 23 3.538.4 7,530.6 11,068.9 68 23 Subtotal Decentralizing and Strengthening the Land Administration Services 55,670 94,158 149,828 63 39 6,958.8 11,769.7 18,728.5 63 39 3. strengthening Private Land Sector lnstltutions Ghana Planning Institute(GPI) 247 877 1,124 78 - 30.8 109.6 140.5 78 Ghana Institutionof Surveyors 632 2.184 2,816 78 1 79.0 273.0 352.0 78 1 Subtotal Strengthenlng Private Land Sector Institutions 879 3,061 3,940 78 1 109.9 382.6 492.5 78 1 4. Strengthening Land Admin. and Management Training Insts. ILMAD 5,920 18.144 24,064 75 6 739.9 2,268.0 3,008.0 75 6 GeodeticEngineering 4,031 6,146 10,177 60 3 503.8 768.2 1,272.1 60 3 Kumasi Polytechnic(KP) 3,680 5,756 9,436 61 2 460.0 719.5 1,179.5 61 2 PlanningKNUST 931 2,010 2,941 68 1 116.3 251.3 367.6 68 1 Subtotal Strengthening Land Admin. and Management Training Insts. 14,561 32,057 46,617 69 12 1,820.1 4,007.1 5,827.2 69 12 Subtotal INSTITUTIONAL REFORM AND DEVELOPMENT (Component 2) 71,803 130,795 202,598 65 53 8,975.3 16,349.4 25.324.7 65 53 C. IMPROVING LAND TITLING, REGISTRATION, VALUATION, AND INFORMATION SYSTEMS (Component 3) 1. EstablishingDeeds Registries/b 4,004 2,966 6,970 43 2 500.4 370.8 871.2 43 2 2. Delineationand Registrationof Allodial Rights 1.548 11,354 12,902 88 3 193.5 1,419.2 1,612.8 88 3 3. CommunicationsStrategy 8,032 3,959 11,990 33 3 1,004.0 494.8 1,498.8 33 3 4. PilotSystematic landTitling and Registration 12,892 2,676 15,568 17 4 1,611.5 334.5 1,946.0 17 4 5. Mapping,Land Use Planningand ManagementSupportfor Land Administration 51,794 13,033 64,826 20 17 6,474.2 1,629.1 8,103.3 20 17 6. EstablishingModelTitlingand RegistrationOffices 160 271 431 63 - 19.9 33.9 53 8 63 Subtotal IMPROVING LAND TITLING, REGISTRATION, VALUATION, AND INFORMATION SYSTEMS (Component 3) 78,429 34,259 112,688 30 29 9,8036 4,282 3 14,086.0 30 29 - 58 - D. PROJECT MANAGEMENT, MONITORINGAND EVALUATION (Component 4) 1. Project Coordination 6,577 5,069 11,646 44 3 822.1 633.7 1,455.8 44 3 2. Human Resources Development 4,233 14,394 18,626 77 5 529.1 1,799.2 2,328.3 77 5 3. Monitoring and Evaluation 9,864 13,316 23,180 57 6 1,233.0 1,664.5 2,897.4 57 6 Subtotal PROJECT MANAGEMENT,MONITORINGAND EVALUATION (Component 4) 20,673 32,779 53,452 61 14 2,584.2 4,097.3 6.681.5 61 14 E. PPF 2 - 865.0 865.0 100 2 ~ 6,920 6,920 100 173,586 210,449 384,034 55 100 21,698.2 26,306.1 48,004.3 55 100 Physical Contingencies 5,634 12,444 18,078 69 5 704.2 1,555.5 2,259.7 69 5 Price Contingencies 30,903 12,929 43,832 29 11 3,538.6 1,252.2 4,790.8 26 10 210,122 235,822 445,944 53 116 25,941.0 29,113.8 55,054.8 53 115 - 59 - Project Cost Summary by Expenditure Category (Cedis % %Total % % Total Million) Foreign Base (US$ '000) Foreign Base Local Foreign Total Exchange costs Local Foreign Total Exchange costs I.Investment Costs A. Clvil Works Construction 9,744 38,976 48,720 80 13 1,218 4,872 6,090 80 13 B. Vehicles Cross country 670 994 1,665 60 84 124 208 60 0 Pickup4x4 DC 4,290 6,365 10,655 60 3 536 796 1,332 60 3 Saloon Cars 420 624 1,044 60 53 78 130 60 0 Motorcycles 381 565 946 60 48 71 118 60 0 Other la 690 1,023 1,713 60 86 128 214 60 0 Subtotal Vehicles 6,451 9,572 16,022 60 4 806 1,196 2,003 60 4 C. Equipment and Materials Office equipment 5,905 13,606 19,511 70 5 738 1,701 2,439 70 5 CommunicationEquipment 220 1,220 1,440 85 27 153 180 85 0 Other Equipmentand Materials/b 27,770 39,778 67,548 59 18 3,471 4,972 8,443 59 18 Fumiture 5,635 3,569 9,204 39 2 704 446 1,151 39 2 Publications,reports, media 1,758 1,669 3,427 49 1 220 209 428 49 1 Subtotal Equipment and Materials 41,288 59,842 101,129 59 26 5,161 7,480 12,641 59 26 D. Specialist Services Nationalconsultants 75,054 75,054 20 9,382 9,382 0 20 internationalconsultants 4,960 42,248 47,208 89 12 620 5,281 5,901 89 12 Subtotal Specialist Services 80,014 42,248 122,261 35 32 10,002 5,281 15,283 35 32 E. Training LocalTraining 13,238 8,352 21,590 39 6 1,655 1,044 2,699 39 6 OverseasTraining 1,094 9,565 10,659 90 3 137 1,196 1,332 90 3 Workshops 730 693 1,423 49 91 87 178 49 0 Subtotal Training 15,062 18,610 33,672 55 9 1,883 2,326 4,209 55 9 F. PPF Refinancing 6,920 6,920 100 2 865 865 100 2 Total Investment Costs 152,558 176,167 328,725 54 86 19,070 22,021 41,091 54 86 il.Recurrent Costs 8. Perdiemlallowances 6,377 2,586 8,963 29 2 797 323 1,120 29 2 D. Operation and Maintenance Buildings/c 230 893 1,124 79 29 112 140 79 0 Vehicles O&MId 2,686 10,416 13,102 79 3 336 1,302 1,638 79 3 Equipment/e 1,602 6,213 7,816 79 2 200 777 977 79 2 Subtotal Operation and Maintenance 4,519 17,523 22,042 79 6 565 2,190 2,755 79 6 E. Supplies and Consumables 566 5,094 5,660 90 1 71 637 707 90 1 F. Miscellaneous/f 9,566 9,079 18,645 49 5 1,196 1,135 2,331 49 5 Total Recurrent Costs 21,027 34,282 55,309 62 14 2,628 4,285 6,914 62 14 173,586 210,449 384,034 55 100 21,698 26,306 48,004 55 100 PhysicalContingencies 5,634 12,444 18,078 69 5 704 1,556 2,260 69 5 Price Contingencies 30,903 12,929 43,832 29 11 3,539 1,252 4,791 26 10 210,122 235,822 445,944 53 116 25,941 29,114 55,055 53 115 - 60 - Annex 4: Cost Benefit Analysis Summary GHANA: Land Administration Project Summary of Benefits and Costs: EconomicAnalysis: Expectedbenefits a. Improved land tenure security: The project will reduce land security risks o f land grabbing, encroachment, land disputes, and expropriation. Lack o f tenure security has been identified as one o f major problems which contributes to poverty and inhibits economic and social development. Around 300,000 individual urban land titles and 50 allodial titles will be issued. Procedures through which land rights may be swiftly and cheaply recorded and titled will be identified and tested to facilitate mass use o f titling opportunities; b. Increased land-related investment: Investments on land, from both domestic and international sources, will increase as a result o f increased confidence o f investors towards a more secure, stable and predictable investment environment and improved access to formal financial credit; C. Improved efficiency of land resource use: Formation o f rural land markets and improvements o f urban land market will result in a more efficient use o f landresources; d. Increased information benefits: Land valuation system, tax collection system, and land use planning system will benefit from the information provided by an improved land registry and cadastre system, and the information generated from the titling process; e. More sustainable land use behavior: A secure land tenure environment may induce a more sustainable resource use behavior because landholders will pay more attention to the long-term productivity o f their land; f. Improved social process: By adopting decentralized approaches and strengthening community capacity to administer customary land rights, procedures which are more locally operated and accountable will be fostered; and g. Improvedpoverty focus in the land administration sector: Through ensuring that the needs o f poorer members o f the community and those disadvantaged by discriminatory practices or conditions are attended to in building improved systems, the project will enhance the poverty focus o f land administrationdevelopment. Data and Methodolow The data used for the economic analysis i s the 1998-99 Ghana Living Standard Survey (GLSS), conducted by the Ghana Statistical Service. The survey covered 5,998 households from all 10 administrative regions o f the nation. Based on the GLSS household and plot-level data, linear regression was used to analyze the effect o f titling on land prices and to estimate the economic rate o f return (ERR) to the investment in the project. Land-prices are used as a proxy for economic value o f land to calculate the ERR under the assumption that all titling benefits will eventually be reflected in land price changes, Le., the change in land prices captures the net effect of all the benefits o f land titling, other factors held constant. Factors besides land title do affect land prices and should be controlled in order to have a meaningful analysis. The following household and plot characteristics were controlled: per capita income, education, age and gender o f household's economic head, whether the plot planted tree crops or not, ecological zone o f the plot (i.e., costal, forest, savanna), location o f the plot (Le., Accra, other urban, -61 - rural coastal, rural forest, and rural savannah) Regional dummies were also added to control the difference among the 10 administrative regions The total plot sample size used in the econometric analysis was 3,405. Results. The overall ERR o f holding a land title is about 39 percent, and the coefficient o f title is statistically significant at 99 percent confidence level and the result i s robust to different specifications. This means that the value o f a plot with a title will be 39 percent higher than that o f a plot without a title, holding other factors constant Findings from studies conducted by the Bank in other countries with similar projects give additional confidence to this result. For example, inthe case o f Indonesia, where the first phase of a long-term land administration program was completed, the ERR was about 33 percent. In Thailand, where a World Bank-assisted 16-year land titling program was successhlly completed, the ERR ranged from 30-34 percent. However, the ERR, as calculatedhere, may overvalue the net benefits from the perspective o f the society as a whole. The overvaluation stems from, as argued by Feder et. al. (1988), the fact that landowners are risk averse, while society i s risk neutral (or less risk averse). Therefore, landowners pay a higher risk premium to security than the society does. To reflect the ERR to the society, the ERR to farmers should be discounted, particularly in areas with very hightenure security risk. Inthe case o f Ghana, due to the lack o f relevant information, the discount factor is not available. However, even if we assume that discount factor i s 30 percent (Le,, a relative highrisk o f eviction), the ERRto the society is still about 28 percent. Plan to Improve Economic Analvsis. Given that GLSS i s designed for the purpose other than conducting economic analysis, it does not have all the necessary information required by a project economic analysis. For example, GLSS does not give detailed information on plot characteristics. Moreover, the land prices o f GLSS are landholders' perceived price instead o f actual market price. To improve the quality o f the economic analysis, a baseline survey as well as a socio-economic impact survey would be conducted in selected project area before and after the project implementation. These surveys will provide a basis for an ex-post evaluation on the economic benefits o f the proposed project. These surveys should be contracted out to the Ghanaian Statistical Service or other professional companies. Data need to include very detailed plot characteristics (e.g., land rights information, size, irrigation status, soil quality, investment activities on the plot, location, information on farming activities ifthe plot for farming purpose, price, etc.) and household characteristics (e.g., education, age structure, gender structure, per capita income and expenditure, wealth, etc.). Ideally, a panel data (Le,, cross-sectional and time series) shouldbe collected. Moreover, inboth rural and urban areas, information about control groups (i-e., areas which are not covered by the project) should also be collected to allow a better control for household-specific characteristics. As the proposed project i s the first phase o f a long-term program, the findings from the baseline and socio-economic impact surveys will also be used to evaluate a possible follow-up project. FinancialAnalysis: The purpose o f conducting a financial analysis i s to assess whether the net financial benefits expected Administration Project, there are two key project participants - the landholders and the Government. from the project are attractive enough for project participants. In the proposed Ghana Land Financialbenefits and costs for landholders. As inmany other countries, two considerations motivate landholders to obtain land titles: (a) to improve land ownership security; and (b) to access a cheaper as well as larger amount o f credit from formal financial institutions by using the titles as collateral, As a result o f an improved land tenure security and improved accessibility to formal credit, landholders will increase their investment in land and hence increase productivity and income. Under normal situation - 62 - where titles are issued upon request by landholders (i.e., sporadic registrationwhich requires landholders to pay the full cost), landholders who request a titling service do so with the expectation that the financial retum from acquiring title would be higher than the cost o f the title. Inmost cases, land titling projects adopt a systematic adjudication method to undertake land tilting in large volumes. To ensure high participation o f landholders on a voluntary basis, the cost o f land titling has been kept at a level significantly lower than the cost o f producing a title. The affordability o f the poorest landholders has been considered when setting an appropriate registrationfee. For example, inthe case o f Thailand, landholders are charged less than US$5 per title, compared to the actual cost o f US$36 per title. Inthe case o f Indonesia, landholders are charged about US$2 per title while the actual cost i s around US$26. The difference between the actual titling cost and the fee charged to landholders i s the subsidy from the government, which can recover the subsidy by charging full registration fee on subsequent land transactions and collecting other revenues associated with land transaction. This arrangement has worked well inmany countries. Both the Government and the Bank agreed that a similar arrangement would be introduced inthe Ghana. Current estimates show that the real cost of per title i s around US$35 Based on the estimated costs o f titling related components and the total numbers o f title will be issuedunder the project, the average cost o f per title i s about US$28.3. However, this average cost does not include the government's future management costs associated with each title. To calculate the actual cost o f each title, we assume that (i) government will spend about two percent o f the current cost each year after the project implementation period to ensure each title still valid and (ii)the discount rate i s 10 percent. Based on these two assumptions, the actual total cost o f each title i s 28.3+(28.3x 0.02)/0.1=34.96. Based on this estimate and given that the proposed 300,000 titles to be issuedby the project will mainly concentrate on urban areas, a fee o f about US10 per title may be charged. Findings from field trips and discussions with the Government show that the fee arrangement would be reasonable. Evidence from many sources show that the actual cost o f titling i s several fold. Financialbenefits and costs for the Government. The Government will receive incrementalrevenues (`j?nancial benefits) from: 0 initial registrationfee (US$lO per title); 0 derivative registrationfee (Le., administrative fees collectedby land commission, land valuation board, land registration services, and surveying department, etc.). Based on information suppliedby the Government, the total amount o f different fees for sporadic registration accounts for two and halfpercent o f the land value; 0 stamp tax (to landbuyer) o f two percent o f the land value; and 0 capital gains tax (to land seller) which i s 10percent o f amount o f increased value. The economic analysis o f the project shows that nationwide, land values will increase about 40 percent due to land titling, and giventhat urbanareas will generallyenjoy a higher return rate than the national average, it is assumed that land values will increase by 50 percent inurbanareas. The revenues are extrapolated over 35 year period and no further assumptions are made regarding any expected changes to these revenues. The revenues from managing public land (Le., state land and stool land vested in Government) are excluded due to lack o f information. However, this exclusion should not be a big issue since the Land Commission confirmed that the revenues from managing public land account for a very small proportion o f government's total revenues from land administration. Thefinancial costs to the Government, in principle, should be the project costs (excluding the grant from different donors such as DFID, GTZ and CIDA) and the Government's future management costs for - 63 - maintaining the benefits o f titling beyond the end o f the project (two percent o f total project costs). However, given the proposed project i s the first phase o f a long-term program with a focus on institutional building, many project activities will either be not directly related with titling or have benefits beyond the narrow confines o f the project. For example, US$6 million (from KfW) will be invested in civil works, which will benefit both non-project area as well as the follow-on projects o f the long-term program. The same logic can be applied to the activities o f land use planning (US$7 million, from Nordic Development Fund) as well as activities o f strengthening land administration and administration system (US$8.6 million, from IDA). Therefore, costs o f these activities should be either omitted or prorated according to certain criteria. Based on the nature o f different investments, it was decided to include the following costs in the financial analysis: 100 percent o f investment directly related with titling; 50 percent o f investment related with strengthening administration and management system; 50 percent o f investment related with development o f regulatory framework and policy studies; and 33 percent o f investment related to civil works; and finally, 20 percent o f investment related with land use planning. A sensitivity test shows that, even if all IDA investment were included in the calculation, without changing other assumptions, the FRR i s still 13 percent with NPV o f US$3.07 million. The counterpart funding from the Government, with 90 percent in form o f duty and tax, i s also excluded, since it i s not a real cost to the Government and hence has no financial implications. Results. The GLSS data shows that the turnover rate inurban area i s about 2.1 percent, which means a relatively active land market. Field observations also confirmed that the land market in urban areas i s quite active. The information from the Land Valuation Board suggests that the average land transaction value inurban areas i s about US$5,000. Based on this information, the financial analysis (Table 1) shows that the financial rate o f return (FRR) i s about 17 percent and net present value (NPV) i s US$7.42 million (at a discount factor 0.1). FiscalImpact: The fiscal impact of the proposed project shouldbe neutral inthe short-run given that less than 15 percent o f the total project cost will be financed by the Government inthe form o f duty and tax exemption. Inthe long-run, it i s expected that the fiscal impact o f the proposedproject will be very positive as shown by the relatively highFRR. Main Assumptions: The major assumptions o f the FRR calculation are: (a) Distribution o f the 300,000 individual parcel titles inmainly urbanareas and 50 allodial titles mainly inrural areas; (b) Registrationfee structure: (depends per parcel (Rural and Urban); (e) Turnover rate (annual 2%); and (0 Subsequent transaction registration on fee structure suggested); (c) Average price per square meter (Rural and Urban); (d). Average size o f fee. Sensitivity analysis/ Switchingvalues of critical items: The average land transaction value; turnover rate and initial registration fee are important parameters o f the financial analysis. Therefore, a sensitivity analysis was conducted to test the financial robustness o f the proposed project regarding changes in these parameters. The following results show that with significant changes o f these key parameters, ie., 20 percent decrease or increase, the project would remain financially attractive to the Government. The results o f the sensitivity analysis are: 0 Ifaverage oflandtransaction value increases 20percent, NPV will beUS$11.53 million; FRR=20 percent; 0 Ifaverage oflandtransaction value decreases20percent, NPVwill beUS$3.30million; FRR=13 percent; 0 Ifturnover rateincreases 20percent, NPVwillbeUS$l1.53million; FRR=20percent; - 64 - 0 If ratedecreases20percent,NPVwillbeUS$3.30million;FRR=13percent; turnover 0 Ifregistrationfee increases 20percent, NPVwillbeUS$7.86 million; FRR= 18percent; 0 Ifregistrationfee decreases20percent, NPVwillbeUS$6.98million; FRR= 16percent. Year Total Benefits cost Initial registrationfee Derivative registration fee Stamp tax Capital gain tax Net benefits ~ 1 2.90 0.30-2.60 2 4.77 0.60-4.17 3 ] 3.96 1 0.70-2.37 4 I 3.17 0.70-0.87 5 1.96 0.51 6 0.98 III 0.21 0.36 0.80 ~ 7 8 0.36 0.80 9 0.36 0.80 10 0.36 0.80 11 I1 0.36 1I 0.80 12 0.36 0.80 13 0.36 0.80 14 0.36 0.80 15 0.36 0.80 16 0.36 0.80 17 0.36 II1 0.80 18 I1 0.36 I 0.80 19 0.36 0.80 20 0.36 0.80 21 0.36 0.80 22 0.36 0.80 23 0.36 0.80 24 0.36 0.80 25 0.36 0.80 26 0.36 0.80 27 1II11I 0.36 1IIIII 0.80 28 0.36 0.80 29 0.36 0.80 30 0.36 0.80 31 0.36 0.80 32 0.36 0.80 33 0.36 0.80 34 IIII 0.36 II1I 0.80 35 0.36 0.80 NPV = US$ 7.42 (discount factor 10%) FRR= 17% -65 - Annex 5: Financial Summary GHANA: Land Administration Project Years Ending I Year1 I year2 I year3 I Year4 I Year5 I Year6 I Year 7 Total Financing Required Project Costs Investment Costs 8.1 15.5 11.9 6.5 3.3 1.4 0.0 Recurrent Costs 0.7 1.5 1.7 1.8 1.8 0.9 0.0 Total Project Costs 8.8 17.0 13.6 8.3 5.1 2.3 0.0 Total Financing 8.8 17.0 13.6 8.3 5.1 2.3 0.0 ~ Financing IBRDllDA 3.4 5.6 4.6 3.7 2.3 1.o 0.0 Government 1.3 2.5 1.9 1.o 0.5 0.2 0.0 Central 1.3 2.5 1.9 1.o 0.5 0.2 0.0 Provincial 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Co-financiers 4.1 8.9 7.1 3.6 2.3 1.o 0.0 User FeeslBeneficiaries 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Project Financing 8.8 17.0 13.6 8.3 5.1 2.2 0.0 Main assumptions: Cofinanciers will successfully conclude separate agreements with the Borrower. - 66 - Annex 6(A): Procurement Arrangements GHANA: Land Administration Project Procurement Introduction The World Bank conducted Country Procurement Assessment Reports (CPAR) in 1985 and 1996. A consultant report in 1997 and a Country Portfolio Performance Review (CPPR) in 1998 cite: (i) o f a lack comprehensive legal framework, and a uniform codified procurement procedures and regulations, (ii) weak capacity o f procurement staff, and (iii)loose institutional and organizational arrangements for collective decision making in awarding o f contracts, as major factors contributing to weaknesses in public procurement practices. Some o f the unacceptable features in the current public procurement practices highlighted are (i) extensive use o f sole method for selection o f consultants, (ii) extensive and repetitive use o f shoppingprocedures, often including same firms, (iii) unclear procedures for opening o f bids and criteria for bid evaluationand contract award, (iv) post contract negotiations, (v) mandatory use o f the state insurance company for goods contracts, and (vi) over-centralization o f procurement inAccra. The reports recommended a comprehensive procurement reform for Ghana. This recommendation was also endorsed inthe 1999 CDF initiative document for Ghana. Procurement Reform The Government has realized these serious deficiencies in the public procurement system and has embarked on a reform program financed with an IDA credit under the Public Finance Management Technical Assistance Project. Consultants were commissioned to work in close liaison with stakeholders in public and private sectors, paying due attention to consultation, participation and ownership and prepare the Government's procurement policy. A draft Public Procurement Act was prepared in mid-2000. It has now been tabled before Parliament and i s expected to be enacted inthe 2003 session. Inthe absence o f a national procurement code, the procurement procedures to be followed will be fully described inthe Project Implementation Manual (IPM). RegistratiodClassification o f contractors may be used for establishing bidder qualification or for preparing a list for use under quotationprocedure but not as criteria for biddingor for award o f contract. Use of Bank Guidelines All works and goods financed under the Credit would be procured in accordance with the document "Guidelines: Procurement under IBRD Loans and IDA Credits, January 1995 and as revised in January and August 1996, September 1997 and January 1999". Consultants will be selected in accordance with the document "Guidelines: Selection andEmployment o f Consultants byWorld Bank Borrowers, January 1997 and as revised September 1997, January 1999 and M a y 2002". National Competitive Bidding (NCB) procedures will include: (a) an explicit statement to bidders o f the evaluation and award criteria; (b) national advertising with public bid opening; (c) award to the lowest evaluated responsive and qualified bidder and (d) foreign bidders would not be precluded from participationinNCB. The Bank's Standard Bidding Documents (SBD) will be used for all ICB (and with appropriate amendments for all NCB) for works and goods. The Bank`s Standard Request for Proposals (SRFP) would be used for all consulting assignments. Less competitive bidding and selection procedures should not be used as an expedient to by-pass more competitive methods. Fractionating o f large procurements - 67 - into smaller ones to use less competitive methods will not be allowed. The detailed procedures to be followed will be described inthe PIM. Advertising A General Procurement Notice (GPN) is mandatory and will be published in the UN Development Business as provided under the Guidelines. The GPN would be updated on a yearly basis and would show all outstanding ICB and all consulting services estimated to cost US$200,000 or more. Specific Procurement Notices (SPN) will be requiredfor contracts to be procured under ICB and NCB procedures and for consultant contracts with an estimated cost o f US$lOO,OOO or more to obtain expressions o f interest (EOI) prior to the preparation o f the shortlist. SPNs will (as a minimum) be published in a newspaper o f wide national circulation. Consultant contracts estimated to cost US$200,000 or more would be advertised in Development Business. Sufficient time would be allowed (not less than 30 days) for N C B and for EO1to allow adequate time to obtain documents and respond appropriately. Procurementcapacity Procurement under the project would be the responsibility o f the Finance and Administration Department of MLF. Procurement capacity in this department i s inadequate. It will be strengthened with the identification and training o f capable and trainable mainstreamed staff in the MLF prior to project effectiveness. This action will be a follow up o f the recommendation contained in the PAD o f the ongoing GEF-financedNorthern Savanna Biodiversity Conservation Project. ProcurementPlans MLF will prepare a Global Procurement Plan (GPP) for the whole project, and a Detailed Procurement Plan (DPP) for the first two years o f the project showing contract packages, and for each package its estimated cost, procurement method and processing times for key activities till completion. The GPP and the DPP will be part o f the P I M that will be completed before project effectiveness. The PIM contains the project workplans from which the procurement schedules would be derived. The plans will be agreed with IDA. Three months prior to the start o f each subsequent fiscal year, MLF will submit up-dated versions o f the GPP, and the annual DPPs inrespect o f the following year. Each quarter MLF will submit to IDA a procurement monitoring report as part o f the Project's quarterly progress report. ProcurementImplementationArrangements The Finance and Administration Department o f MLF will be responsible for procurement planning and processing o f works and goods contracts and the selection o f consultants. Procurement o f small contracts for miscellaneous items o f supplies [often required for operation and maintenance] would be delegated to project implementing agencies that would follow simplified shopping procedures. LAPU will track the accumulation o f contracts under each procurement method and will consolidate the information so as to ensure that the aggregate amounts under the non-ICB procurement methods are not exceeded. Scope of procurementand procurementmethods Works. IDA funds will not be disbursed for civil works as these will be financed byKfW. Goods would consist of vehicles (estimated to cost US$2.0 million) and other goods (estimated to cost US$4.4 million) which include, office, audio-visual, survey and other equipment. furniture and - 68 - computers. To the extent possible, goods that could be procured under one supplier would be grouped into contract packages, and packages estimated to cost the equivalent o f US$200,000 or more would be procured under ICB procedures. Procurement o f goods packages estimated to cost more than US$30,000 but less than US$200,000 [up to an aggregate amount of US$l,OOO,OOO) would be procuredby NCB. Goods packages estimated to cost less than US$30,000 (up to an aggregate amount of US$700,000 would be procured by shopping on the basis o f comparison o f quotations from at least three eligible and qualified suppliers. Requests for such quotations would include a clear description and quantity o f the goods; submission date, payment terms as well as requirements for delivery time and point o f delivery. Goods o f a proprietary nature, may be procured under contracts negotiated directly with the manufacturershppliers or their authorized agents in accordance with the World Bank procurement guidelines. Consulting Services (estimated to cost US$7.4 million) would consist o f various studies, field work, surveys and technical assistance to be carried out by both national and international consultants. As a rule, consulting firms for all assignments estimated to cost the equivalent o f US$lOO,OOO or more would be selected through Quality and Cost Based Selection (QCBS) methodology. Assignments estimated to cost the equivalent o f US$200,000 or more would be advertised for EO1 in the United Nations Development Business (UNDB) and in at least one newspaper o f wide national circulation. In addition, EO1for specialized assignments may be advertised in an international newspaper or magazine. In the case o f assignments estimated to cost between US$lOO,OOO and US$200,000, the assignment would be advertised nationally. The shortlist o f firms for assignments estimated to cost less than US$200,000 may be made up entirely o f national consultants. Foreign consultants who wish to participate would not be excluded from consideration. Consultant services estimated to cost less than the equivalent o f US$30,000 may be contracted by comparing the qualifications o f consultants. Auditors and engineers would be selected using Least-Cost-Selection procedures. In case o f assignments requiring individual consultants, the selection would follow the procedures stipulated in Section V o f the Consultants Guidelines. Training Droprams and workshom (estimated to cost USS2.2 million) would be packaged in the project's annual workplans and budgets and items therein procured using appropriate methods. IDA would review and clear training packages as appropriate. IDA Review All goods contracts estimated to cost US$200,000 or more would be subject to IDA'Sprior review in accordance with the procedures in Appendix Io f the Procurement Guidelines for Goods and Works. All contracts awarded on basis o f Direct Contracting or Sole Source basis would require prior review and clearance o f IDA. The TOR for all consulting assignments irrespective of value of the assignment and all Single Source selection would be subject to IDA prior review. Consultancy contracts with firms with estimated value o f US$200,000 or more, and consultancy contracts with individuals estimated value o f US$50,000 or more would be subject to prior review by IDA in accordance with the procedures in Appendix Io f the Consultants Guidelines. The objective o f all training programs, seminars, workshops etc. would be subject to IDAprior review. Contracts, which are not subject to prior review, would be selectively reviewed by IDA during project implementation and would be governed by the procedures set forth in paragraph 4 o f Appendix Ito the relevant Guidelines. NCB documents for works and goods will be cleared with the Bank as part o f the - 69 - work plan. Procurement methods (Table A) Table A. Project Costsby ProcurementArrangements (US$equivalent) (1,869,400) (1,869,400) (3,738,800) F. PPF - (250,000) (400,000) (215,000) (865,000) Total 10,860,248 17,450,000 2,927,000 7,708,600 7,988,000 55,068,600 Total( IDA) (5,515,000) (820,500) (7,790,000) (2,339,400) (4,045,400) (20,510,300) Note: Figures inparenthesis are the respective amounts financedby IDA N.B.F.= (Non BankFunding)Le., Fundingby other donors - 70 - Prior review thresholds (Table B) Table B: Thresholds for Procurement Methods and Prior Review' 1. Works I 2. Goods >200,000 ICB All <200,000 NCB None 3. Services a. Firms >100,000 QCBS All Contracts <100,000 QCBS, LCS None <30,000 CQ None b. Individuals >50,000 Individual All Contracts <50,000 Selection None All values Single Source All Contracts 4. Training, Workshops, All Study Tours 5. Incremental Operating Costs 6. Miscellaneous Total value of contracts subject to prior review: US$6.20 million Overall Procurement Risk Assessment: Average Frequencyof procurementsupervision missionsproposed: One every 6 months (includes special procurement supervision for post-review/audits) I\ Thresholds generallydiffer by countryandproject. Consult "Assessmentof Agency's Capacityto Implement Procurement"andcontactthe RegionalProcurementAdviser for guidance. -71 - Annex 6(B): Financial Managementand DisbursementArrangements GHANA: LandAdministration Project FinancialManagement 1. Summary of the FinancialManagementAssessment A Financial Management Capacity Assessment was conducted in May 2002 to determine whether the Finance and Administration Department, MLF, responsible for the financial management under the proposed Project, has adequate and acceptable financial management capability to undertake the assigned tasks. The assessment included the review o f the agency's accounting system o f recording and reporting, internal controls and auditing arrangements. CountryIssues A Country Financial Accountability Assessment (CFAA) was conducted for Ghana in2000. An exercise i s currently under way to update the assessment in the light o f actions taken by the Government to improve the public financial management systems. The previous findings clearly identified the main accountability issue in Ghana to include: (i)fragmented legal framework and lack o f enforcement o f existing penalties for noncompliance; (ii)ineffective and inefficient internal auditing functions; (iii) weak human resource capacity because of poor public sector remuneration; and (iv) weak payroll and pension control systems. It i s believed that actions taken so far by Government will lead to elimination or improvement o f these weaknesses. Based on the CFAA findings, assessment o f the financial management systems o f the Ministry responsible for the implementation o f the project and knowledge o f the sector and country, a summary o f the risk analysis i s provided below. ImplementingAgency The Finance and Administration Department, MLF i s presently managing the finances o f the ongoing Natural resources Management Project (NRMP) financed by IDA and other donors and the Northern Savanna Biodiversity ConservationProject (NSBCP) financed by GEF. The accounts unit i s headed by a qualified accountant, and assisted by four other accounting staff with varying degrees o f accounting qualifications. All the staff have been trained in World Bank disbursement procedures and performance under the current projects i s satisfactory. The unit has an accounting manual approved by IDA, which documents the accounting system and reporting requirements under NRMP and the NSBCP. The computerization o f the accounting system has just been completed and tested and in use for the NRMP and NSBCP. This would be modified to incorporate activities to be covered under the proposed project. The present financial management arrangements are considered acceptable since they are capable o f recording correctly all transactions undertaken by the project. The system also assures adequacy o f maintenance o f underlyingrecords and supporting documents which form the basis for the preparation o f regular and reliable financial statements and other similar reports, safeguard the project's assets, and are subject to auditing arrangements acceptable to IDA. - 72 - Summary of Risk Analysis Risk RiskRating RiskMitieationMeasure Inherent Risks: Government is modernizing its systems. In Country addition it needs to institute measures that a) N o n compliance o f statutory ensure the update and enforcement o f regulations and non enforcement o f S penalties for non compliance. penalties. Government will seek donor assistance to b) Inadequacy of legal framework address this weakness. to regulate internal audit functions incountrv. H Overall Inherent Risk S Control Risk Staffing o f the Agency The Controller and accountant's General's Department periodically seconds qualified a) Inadequate human resource staff to the ministries. Inthe absence, the capacity o fthe requiredgov't N project will supplement by recruiting financial staffto manage projects. qualified staff to address this weakness. Funds Flow Delays in accounting for funds Fundsmanagement will be centralized, with transferred to various implementing M releases to implementingagencies being agencies results inthe slow down o f limited to imprest amounts for incremental subseauent releases. oDerating cost. Internal Audit The project has outlined in its accounting N o professional internal audit (IA) manual an expenditure approval processes function. Government IA is limited S which ensures that only legitimate to pre-auditing, with no added value expenditures will be paid for by the project. External Audit Likely, project audit reports will be Auditors would be inplace prior to credit submitted late. M effectiveness and non compliant auditors would be changed. The timely submission o f audit reports would also be part o f the financial controller's performance measurement. ReportingandMonitoring The accounting system is now computerized and this should improve the timeliness o f Delays inthe submission o f project the submission o f the financial monitoring and financial monitoring reDorts. M reDorts. Information Systems Computerized systems are not fully All staffwould be trained, and a program used due to poor training, and M putinplace to trainnew staffwhen ever inadequate support. they join. Have a maintenance service contract inplace. Overall Control Risk M The project will operate a centralized system o f funds management and there will be no elaborate flow o f hnds to other implementing agencies. The use o f funds by the implementing agencies will be limited to -73 - imprest releases for their incremental operating activities. Based on the assessment o f the financial management systems in place under the implementing arrangements proposed, there will be the need for minor additions and modifications to the Ministry'spresent financial systems as indicated in the action plan. Strength The significant strengths that provide a basis o f reliance o f the project financial management system include: (i) the presence o f a qualified accountant as head o f the finance and accounts unit with overall responsibilities for project financial management; (ii)the presence o f an accounting and financial procedures manual which have been used to manage the on-going NRMP and the NSBCP; (iii) accounting staff have all received training in World Bank disbursement procedures; (iv) an operational accounting software for use, with capability to produce financial monitoring reports; and (v) the unit's experience inproducing financial monitoring reports for the NRMP. FundsFlow Arrangements The MLF would open a U S dollar Special Account at a commercial bank acceptable to the Bank into which IDA funds would be lodged. In addition, a Cedi account would be opened at the Bank o f Ghana into which GoG counterpart funds released for the project would be lodged. To ensure smooth implementation o f the project separate Cedi Bank Accounts would be opened by each of the project Implementing Agency at commercial banks. The project will operate a centralized funds management system, so the participating implementing Agencies would operate on imprest system o f accounting. The MLF would release GoG counterpart funds to the agencies Cedi Accounts based on forecast cashflow statements prepared quarterly in advance. On completion they would submit their returns for reimbursement. Further transfer o f funds to the agencies would then be made from the IDA Special Account to the implementing agencies on approved SOEs submitted for reimbursement. Major payments for civil works, goods and consultancy services and training would be done by the accounts unit, MLF, upon request from the agency incurring the expenditure. The preparation and submission o f withdrawal applications to IDA for reimbursements would be preparedby the accounts unit, MLF. Reporting andMonitoring The World Bank has introduced a new initiative, the Financial Management Initiative (FINMI). FINMI requires projects to prepare quarterly financial monitoring reports (FMRs) in the areas o f finance, procurement including contract details, and project progress. Ouarterly Financial ReDorts: would consist o f Sources o f Funds and their Uses, Statement o f Uses o f Fundsby Project Components and Activities, Special Account Reconciliationstatement anda six-months Project Cash Forecast where necessary; Ouarterly Proiect Progress ReDort: would consist o f Output Monitoring Report on contract Management and on Unit o f Output by project activity; Ouarterlv Procurement Management Report would consist o f procurement process monitoring for goods and works and that for consultants' services, and contract Expenditure reports for goods, works and consultants' services. Computerizationo f the accounting system o f NRMP, under the Ministry,has been completed and FMRs - 74 - (formally PMRs) are now being generated by the system. MLF's accounting system which would be used for the implementation o f the project has the capacity to generate the FMRs, and the system would be modified to enable it produce the FMRs for the Land Administration Project at the start o f project implementation. 2. Audit Arrangements Independent and qualified external auditors acceptable to IDA would carry out the audit o f the project. The selection o f auditors shall be on competitive basis in accordance with the World Bank's guidelines and would be inplace by effectiveness o f the project. The project accounts, SOEs and the special account would be audited by the selected independent auditors who will be acceptable to IDA. The auditors' reports and opinions inrespect o f each o f these statements o f accounts would be furnished to IDA within six months ofthe close o f each fiscal year. 3. DisbursementArrangements The proceeds o f the credit would be disbursedover a five-year period. A period of four months after closing date would be allowed to make disbursements for expenditures incurred untilthe closing date o f the credit. Allocation of credit proceeds(TableC) Table C: Allocationof Credit Proceeds Expenditure Category I Amount in US$million I FinancingPercentage 1. Works 2. Goods 5.70 100% o f foreign and 90% of local expenditures 3, Consulting Services 6.65 90% 14. Training, Workshops and Study Tours 1.95 100% o f foreign and 90% o f local emenditures 5. Incremental Operating Costs 3.37 90% 6. PPF 0.87 100% 7. Unallocated 1.96 ~~ Total Project Costs with Bank Financing 20.50 Total 20.50 Use of statements of expenditures (SOEs): Disbursements for all expenditures would be against full documentation, except for items of expenditures under contracts and purchase orders below US$100,000 equivalent each, for works, goods and consulting firms, and US$50,000 for consultant services (individuals), training and incremental costs for which disbursements would be based on statement o f expenditures (SOEs). Supportingdocumentation for SOEs would be retained by the Borrower (GOG) for review by IDA missions and external auditors. Specialaccount: To facilitate disbursements, a Special Account for the Ministry o f Lands and Forestry would be - 75- established and operated in US$ at a commercial bank, under terms and conditions satisfactory to the IDA. Upon credit effectiveness, a sum o f US$1.5 million would be deposited by the Bank into this account. Further deposits would be made into this account against withdrawal applications supported by appropriate documentation. ProjectAccount (PA) The Borrower will establish a Project Bank Account for financing its counterpart funds with an initial deposit o f US$50,000. Major procurement and consulting contracts would be financed from these accounts. However, operating expenses o f implementing agencies and workshops and training organized by them will be financed by release o f imprest to be accounted for on a regular basis with supporting records and documents. The details o f the procedures to be followed for accounting and reporting by implementing agencies are documented inthe Financial Manual. Table D. Action PlanAgreed at Appraisal Action Step DueDate Responsibilityor Action - By 1 Revise Accounting Manual o f MLF 08/30/03 Financial Controller to accommodate L A P Project accounting requirements 2 Modify computerized accounting 09130103 Financial Controller system to include accounts codes o f new txoiects 3 Appoint external auditor 09/15/03 MLF/ Financial Controller 4 Opening Special Account (with Before request Ministryo fFinance and signatures, etc.) for initial Economic Planning / deposit MOFEP-FC - 76 - Annex 7: Project Processing Schedule GHANA: Land Administration Project Time taken to prepare the project (months) 12 15 First Bank mission (identification) 11/01/2003 Appraisal mission departure 09/27/2002 01/06/2003 Negotiations 0111412003 04/28/2003 Planned Date of Effectiveness 1013112003 Prepared by: The Ministry of Lands and Forestry, Govemment of the Republic of Ghana Preparationassistance: Japanese Population and Human Resources Development (PHRD) Grant; and FAOICP Technical Assistance. Bank staff who worked on the project ncluded: Name Speciality Solomon Bekure (AFTS4) Task Team Leader John Bruce (LEGEN) LandPolicy and Legislation Wael Zakout (EASRD) Cadastral Survey and Land Titling DanAronson (ASPEN) Social Assessment Naima Hasci (AFTS2) Social Assessment S. Omar Fye (ASPEN) EnvironmentalAssessment EdwardF. Dwumfour (AFTS4) EnvironmentalAssessment Patience Mensah(AFTS4) Monitoring and Evaluation Lucie Tran (AFTS3) Program Cost Analysis MbubaMbungu(AFTPC) Procurement Tsri Apronti (AFTPC) Procurement FredYankey (AFTFM) Disbursement DavidWebber (LOAG1) Disbursement KarenHudes(LEGAF) Country Lawyer Smile Kwawukume (AFTPR) Public Sector Guo Li(EASRD) Economic and FinancialAnalysis Daniel Boakye (AFTP4) Economic and FinancialAnalysis Beatrice Spadacini (EXTCD) Development Communications Strategy Azra Lodi (AFTS3) Document Processing Joseph Ellong (AFTS4) Document Processing Rose Ampadu (AFC10) Team Assistance - 77 - Annex 8: Documents in the Project File* GHANA: Land Administration Project A. Project ImplementationPlan 1. Ghana LandAdministration Project: Environment Impact Assessment. Ministryo f Lands and Forestry. February 2003. 2. Ghana Land Administration Project: Project Implementation ManuaLMinistry o f Lands and Forestry. March 2003, 3. Ghana LandAdministration Project: Project Preparation Report Volumes Iand 11, prepared by Land Sector Planning Committee, Ministryo fLands and Forestry and Hatch Associates Pty. Ltd., March 2002. 4. Ghana LandAdministration Project: Resettlement Policy Framework. Ministryo fLands and Forestry. February 2003. B. Bank Staff Assessments 1,Ghana LandAdministration Project: Social Assessment, January 2002. C. Other 1. KasimKasanga: LandTenure and the Development Dialogue. Department o fLandEconomy, Cambridge University 1988. 2. John Bruce and Shem Migot-Adholla Editors: Searching for Land Tenure Security inAfrica. The World Bank 1994. 3. Kasim Kasanga: The Role o f Chefs and Tendamba inLand Administration inNorthern Ghana. The Royal Institute o f chartered Surveyors, June 1996. 4. Kasim Kasanga, Jeff Cochrane, RudithKingand Michael Roth: LandMarkets and Legal Contradictions inthe Peri-UrbanArea o f Accra, Ghana: InformalInterviews and Secondary Data Investigations, Land Tenure Center, University o f Wisconsin M a y 1996. 5. Michael Mortimore: History and Evolution o f Land Tenure and Administration inWest Africa, Intemational Institute for Environment and Development: M a y 1997. 6. Land Security and the Poor in Ghana- I s there a Way Forward? A Land Sector Scoping Study, by L i z Alden Wily and Daniel Hammond for DFID Ghana Rural Livelihoods Programme. October 2001. 7. Ministryo f Lands and Forestry: National Land Policy, June 1999. 8. Kasim Kasanga: Land Tenure and Regional InvestmentProspects: The Case o f the Tenurial Systems o fNorthern Ghana. Institute o f Land Management and Development, University o f Science and Technology, Kumasi, September 1999. 9. Kasim Kasanga: LandPolicy and National Development in Ghana. Center for Democracy and Development, Ghana. October 2000. 10. Ministryo f Lands and Forestry: Land Records Storage and Management Study. May 1998. 11. Ministryo f Lands and Forestryand the World Bank: Ghana UrbanLandAdministration Study, May 1998. 12. InternationalInstitute for Environment and Development: Land Tenure and Resource Access inWest Africa: Issues and Opportunities for the Next Twenty Five Years. 1999 London, 13. Philippe Lavigne Delville: Harmonizing Formal Law and Customary Land Rights in French-Speaking West Africa. International Institute for Environment and Development June 1999. 14. Center for Democracy and Development, Ghana: Corruption and Other Constraints on the Land Market and LandAdministration inGhana: A preliminary Investigation. 2000. - 78 - 15. Kasim Kasanga and NiiAshie Kotey: LandManagement in Ghana: Buildingon Tradition and Modernity. Land Tenure. InternationalInstitute for Environment and Development.February 2001. 16. S.E Migot-Adholla, Frank Place, George Benneh and Steven Atsu. Lad Use Rights and Agricultural Productivity o f Ghanaian Farmers. The World Bank Draft Undated Manuscript. 17. Isac Bonsu Karikari, John Stillwell and Steve Carver: GIS Application to Support Land Administration Services in Ghana: Institutional Factors and Software Development. Working Paper 02/02 Schoolo f Geography, University o f Leeds. *Including electronicfiles - 79 - Annex 9: Statement of Loans and Credits GHANA: LandAdministration Project 26-Jun-2003 Differencebetweenexpected and actual OriginalAmount in US$ Millions disbursements' Project ID FY Purpose IBRD IDA GEF Cancel. Undisb. Orig Frm Rev'd P073649 2003 HEALTHSECTOR PROGRAMSUPPORTPROJEC 0.00 57.30 0.00 0.00 96.11 0.00 0.00 PO76808 2003 GH PRSC I 0.00 88.00 0.00 0.00 127.98 0.00 0.00 PO71399 2003 Promoting Partnerships with Traditional 0.00 5.00 0.00 0.00 5.22 0.00 0.00 PO67685 2002 Ghana:GEF- Northern Savanna TF050723 0.00 0.00 7.90 0.00 7.97 2.63 0.00 ~ PO50623 2002 GH ROAD SECTOR DEVELOPMENTPROGRAM 0.00 220.00 0.00 0.00 229.59 40.92 0.00 PO00968 2001 AGRIC SERVICES 0.00 67.00 0.00 0.00 59.58 74.04 0.00 PO71617 2001 Ghana AIDS Response Project (umbrella) 0.00 25.00 0.00 0.00 18.56 -8.84 0.00 P050624 2000 URBAN5 0.00 10.83 0.00 0.00 5.88 5.41 0.54 PO69465 2000 RURAL FINANCIAL SERVICES PROJECT 0.00 5.13 0.00 0.00 4.75 14.67 0.00 PO50616 2000 COMMUNITY WATER II 0.00 25.00 0.00 0.00 17.23 -8.70 0.00 PO50615 1999 PUBSECTOR MNGT.PROG 0.00 14.30 0.00 0.00 2.95 3.17 0.00 PO40557 1999 ERSOII 0.00 178.20 0.00 18.41 28.51 0.45 0.00 PO40659 1999 COMMUNITY DEV. 0.00 5.00 0.00 0.00 3.98 3.76 0.86 PO00974 1999 NAT FUNC LIT PROG 0.00 32.00 0.00 0.00 24.03 12.82 5.16 P000970 1999 TRADE GATEWAY 8 INV. 0.00 50.50 0.00 0.00 27.23 20.29 0.00 PO00946 1998 NAT.RES.MANAGEMENT 0.00 9.30 0.00 0.00 0.35 0.61 0.00 PO45188 1998 GH:FOREST BIODIVERSITY 0.00 0.00 8.90 0.00 6.50 4.26 0.00 PO41150 1997 VILLAGE INFRASTRUCTURE 0.00 30.00 0.00 0.00 8.93 10.32 0.00 P045588 1997 PUB. FIN. MGMT. TAP 0.00 20.90 0.00 0.00 1.07 2.72 0.00 PO00973 1996 URBAN ENVIRONMENTALSANITATION 0.00 71.00 0.00 0.00 3.14 10.40 4.73 PO42516 1996 PUBLIC ENTERPRISE/PR 0.00 26.45 0.00 0.00 6.37 8.06 0.00 PO00926 1995 GH THERMAL (P-VII) 0.00 175.60 0.00 0.00 23.57 27.41 26.70 Total: 0.00 1116.51 16.80 18.41 709.51 224.42 38.00 - 80 - GHANA STATEMENT OF IFC's HeldandDisbursedPortfolio May 30 - 2003 InMillionsUS Dollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 1993 AEF Afariwaa 0.16 0.00 0.00 0.00 0.16 0.00 0.00 0.00 1995 AEF Antelope Co. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 AEF Computer Sch 0.15 0.00 0.00 0.00 0.15 0.00 0.00 0.00 2001 AEF GPPI 1.70 0.00 0.00 0.00 1.70 0.00 0.00 0.00 1998 AEF NCS 0.00 0.00 0.53 0.00 0.00 0.00 0.53 0.00 1997 AEF PTS 0.00 0.00 0.31 0.00 0.00 0.00 0.31 0.00 1999 AEF PharmaCare 0.18 0.00 0.00 0.00 0.18 0.00 0.00 0.00 1994 AEF Shangri-la 0.93 0.00 0.00 0.00 0.93 0.00 0.00 0.00 1996 AEF Tacks Farms 0.43 0.00 0.00 0.00 0.43 0.00 0.00 0.00 1989191193 Cont Acceptances 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 Diamond Cement 5.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 ELAC 0.00 0.10 0.00 0.00 0.00 0.10 0.00 0.00 GAGL 0.00 0.00 3.26 0.00 0.00 0.00 3.26 0.00 1990191/96 GHANAL 0.00 0.44 0.00 0.00 0.00 0.44 0.00 0.00 1991 GhanaLeasing 0.00 0.73 0.00 0.00 0.00 0.73 0.00 0.00 MFISSLC 0.00 0.49 0.00 0.00 0.00 0.49 0.00 0.00 1992193 2001 Total Portfolio: 8.55 2.76 4.10 0.00 3.55 1.76 4.10 0.00 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic 2000 GAGL IV-Restr 0.00 0.54 0.00 0.00 Total Pending Commitment: 0.00 0.54 0.00 0.00 -81 - Annex IO: Country at a Glance GHANA Land Administration Project Sub- POVERTYand SOCIAL Saharan Low- Ghana Africa income Developmentdiamond' 2001 Population,mid-year(millions) 19.7 674 2311 Life expectancy GNI per capita (Atlasmethod, US$) 290 470 430 GNI (Atlas method, US$ billions) 5.7 317 1,069 - Average annual growth, 1995-01 Population (%) 2.2 2.5 1.9 Laborforce (%) 2.5 2.6 2.3 Gross primary Most recent estimate (latest year available, 1995-01) capita enrollment Poverty(% ofpopulation below nationalpoverty line) Urbanpopulation(% of totalpopulation) 36 32 31 Life expectancyat birth (years) 57 47 59 1 Infantmortality(per 1,000live births) 50 91 76 Chiid malnutrition(% of children under 5) 25 Access to improvedwater source Access to an improvedwater source (% ofpopulation) 64 55 76 illiteracy (% ofpopulation age 75+) 27 37 37 Gross primaryenrollment (% of school-agepopulation) 70 70 96 - Male 02 85 103 Ghana Low-income group Female 74 72 08 KEY ECONOMICRATIOSand LONG-TERM TRENDS 1981 1991 2000 2001 Economic ratios* GDP (US$ billions) 4.2 6.6 5.0 5.3 Gross domestic investmenffGDP 4.6 15.9 23.7 24.0 Exportsof goods and serviceslGDP 4.0 17.0 49.2 52.2 Trade Gross domestic savingslGDP 4.0 7.3 3.3 5.0 Gross nationalsavingslGDP 3.7 0.0 13.4 17.0 Currentaccount balancelGDP -12.0 -6.9 -12.1 -11.4 InterestpaymentslGDP 0.7 1.o 2.4 1.5 Total debffGDP 36.4 66.4 133.6 126.2 Total debt servicelexports 14.2 27.1 19.1 15.3 Presentvalue of debffGDP 70.8 L Presentvalue of debffexports 160.0 Indebtedness 1981-91 1991-01 2000 2001 2001-05 (average annualgrowth) GDP 4.0 4.2 3.7 4.0 5.0 - GDP per capita 0.3 1.9 1.3 1.9 3.5 Ghana Low-income group EXDO~~Sof aoods and services 4.9 10.4 -2.3 0.3 2.0 STRUCTUREof the ECONOMY 1981 1991 2000 2001 1 Growth of investment and GDP (%) (% of GDP) c Agriculture 53.1 45.5 35.3 35.9 ' Industry 9.2 17.0 25.4 25.2 1 2o0 Manufacturing 0.0 9.3 9.0 9.2 Services 37.0 37.5 39.3 30.9 1-20 Privateconsumption 07.2 03.2 01.4 70.7 1-40-I General governmentconsumption 0.0 9.5 15.3 15.6 Importsof goods and services 5.3 25.5 69.6 70.5 -GDI +GDP 1981-91 1991.01 2000 (average annualgrowth) [Growth of exports and imports (%) L Agriculture 1.7 3.5 2.1 Industry 5.6 3.0 3.0 Manufacturing 6.2 -1.2 3.7 Services 6.5 5.3 5.1 Privateconsumption 3.9 4.0 -2.2 Generalgovernmentconsumption 2.7 5.5 20.1 Gross domestic investment 6.3 1.4 -19.1 -1.1 -Exports +Imports Importsof goods and services 4.1 10.3 -17.3 2.0 I ~ ~ ~~~~ Note:2001 data are preliminaryestimates. . . . . - . - - 82 - Ghana PRICES and GOVERNMENT FINANCE 1981 1991 2000 2001 Domestic prices (% change) Consumer prices 116.5 18.1 25.0 33.0 Implicit GDP deflator 75.6 20.0 27.2 34.6 ' "'I Governmentfinance (% of GDP, includes current grants) Current revenue 6.6 20.8 18.6 20.6 1 96 97 98 i 9 00 Current budget balance -5.2 9.5 0.1 1.2 -GDP deflator *CPI Overall surplusldeficit 1.7 -9.1 -10.0 TRADE 1981 1991 2000 2001 1 (US$ millions) Export and import levels(US$ mill.) Total exports (fob) 998 2,189 2,380 14,000 - Cocoa 347 452 503 Timber 124 199 215 Manufactures Total imports (cifl 1,412 3,608 3,781 Food 39 Fuel and energy 175 232 257 Capital goods 247 1 Export price index (1995=100) 84 101 106 95 96 97 98 99 00 01 Import price index (1995=100) 79 79 83 I aExports Imports Terms of trade (19951100) 107 127 129 BALANCE of PAYMENTS 1981 1991 2000 2001 (US$ millions) 1 Currentaccount balanceto GDP (%) Exportsof goods and services 830 1,098 2,418 2,452 Imports of goods and services 1,246 1,652 3,525 3,554 Resource balance -416 -554 -1,107 -1,103 Net income -88 -119 -147 -178 Net current transfers -4 219 650 788 Current account balance -508 -454 -605 -602 Financing items (net) 472 625 632 681 Changes in net reserves 36 -171 -27 -79 1-20 1 Memo: Reservesincludinggold (US$ millions) 224 431 Conversion rate (DEC, local/US$) 17.2 367.8 5,455.1 7,170.8 EXTERNAL DEBT and RESOURCE FLOWS 1981 1991 2000 2001 ~~~~ ~~~ ~ (US$ millions) Compositionof 2001 debt (US$mill.) Total debt outstandingand disbursed 1,539 4,380 6.648 6,690 IBRD 129 103 9 6 I IDA 111 1,522 3,130 3,172 G:604 A: Total debt service 119 300 467 380 IBRD 12 21 9 4 IDA 1 12 47 59 Compositionof net resourceflows Official grants 34 470 226 Official creditors 79 353 179 223 Private creditors -3 35 -59 76 Foreigndirect investment 16 20 110 Portfolioequity 0 0 17 D:544 c:284 World Bank program Commitments 28 168 93 433 A IBRD- E- Bilateral Disbursements 31 199 204 193 B IDA . D Other multilateral F Private - ~ ~ Principal repayments 5 14 33 37 C IMF ~ G Short-tern Net flows 26 185 171 156 Interestpayments 9 19 23 25 Net transfers 17 167 148 130 Note: Inis table was prooucearrom me ueveiopment tconomics central a a t a b a s b - 83 - Additional Annex 11: EnvironmentalImpactAssessment GHANA: Land Administration Project Background An environmental screening o f the project's potential environmental impacts on human populations or environmentally important areas was undertaken at the early stage o f project preparation. The project was classified as Category B, reflecting the low degree o f the perceived environmental risks associated with it. An environmental impact assessment (EIA) o fthe project was conducted under the auspices o f an international firm that collaborated with the Borrower in preparing the project proposal (Working Paper 13 o f the Project Proposal). EIA Findings The general conclusion o f this assessment i s that the project i s expected to have positive environmental and social impacts including improved land administration and management, security o f tenure and ownership, sanity in the land market, and land resource management. As shown in Attachment 1, environmental and social risks to air, ecology and biodiversity, human health and safety were found to be limited inscope and negligible inmagnitude. Land Titling: The project envisages no involuntary acquisition o f land. Neither the allodial land demarcation, systematic land titling nor the civil works components would lead to any physical displacements or dislocation o f people and communities or loss o f assets and incomes or loss o f access to assets. It i s however, likely that there could be some instances o f conflicts where titles and boundaries are disputed, particularly among landowners and claimants to titles. Even before the proposed project i s implemented, the Borrower has secured assistance from GTZ to establish alternative land dispute resolution mechanisms. This would be tested and improved at the pre-implementationphase and applied inresolvingdisputes that would arise duringthe implementationo fthe proposedproject. Proper boundary demarcation and titling system operating under an improved judicial system and alternative conflict resolution mechanisms as envisaged under the project should lead to reduced conflicts, and improved security o f tenure and ownership, land administration and management, biodiversity conservation and sustainable resource use. Improved security o f tenure and ownership would result in good governance and improvement in the land market, small-holder farm productivity and incomes for the rural poor. The EIA reveals that the project would result in the creation o f short- to medium-termjob opportunities for both skilled and unskilled labor. For the constructionworks, boundary surveys and tilting skilled professionals and artisans in fields such as civil engineering, architecture, surveying, carpentry, masonry, draughtmanship, etc. would be employed. The project would also provide opportunities for food vending by rural women. Civil Works: To avoid any social problems, the Borrower has agreed to select sites, for the civil works under the project, on lands owned by the state or the customary land authorities where there are no occupancy or squatter problems, or where ownership i s not in dispute. The Borrower also has agreed that, inthe event the proposed civil works may affect people's livelihood, it would develop and implement a resettlement policy framework acceptable to the Bank. The EL4 showed that the civil work component would not affect water systems since construction sites would be chosen considerable distances away from water bodies. Duringthe construction phase, the use o f heavy equipment and construction vehicles and the removal o f topsoil, tipping and stockpiling o f sand and stone could increase the level o f dust around the construction sites. However, given the type o f civil works and other physical infrastructure to be constructed, it i s unlikely that the quality o f air would be adversely impaired through potential emissions o f fumes (hydrocarbons), smoke, dust and particulates from asphalt plants, vehicles, equipment - 84 - and other machinery beyond the work sites. Vehicular movement and other construction activities such as excavation, drilling and concrete mixing could result in increases in noise and vibration levels, albeit minimal, above acceptable national standards. Besides, civil work activities at any o f the selected sites could result in the generation o f waste - both solid and liquid - in the form o f excavated soils, pieces o f discarded wood and blocks, paper, nails, glass, plastics, spilled or discarded oil and lubricants, human urine and excreta. These activities could lead to temporary landscape modifications and reduced aesthetics or pose a danger to humans. The impact o f construction on air quality, noise and vibration levels, aesthetics, human health and safety could be prevented, minimized or mitigated by adherence to the manufacturer's specifications with regard to maintenance o f equipment and machinery. The effective compliance and enforcement o f ambient noise levels as indicated in the Environmental Protection Agency (EPA) standards and guidelines i s crucial in preventing any human health problems. Regular dousing o f the site with water would contribute to reduction in levels o f dust emissions. The assessment report recommends that pollution abatement measures should focus on compliance and enforcement o f national safety and quality standards as well as waste disposal guidelines. As part o f the preventive and mitigation measures, the implementing agency, Ministry o f Lands and Forestry (MLF) in collaboration with EPA would ensure that the contractor provides proper sanitary facilities such as portable toilets and waste containers at the construction site for use by the workers and vendors to store petroleum derivatives (fuel, waste oil and lubricants), and prevent indiscriminate defecation and pollution o f nearby environs. For prevention o f leaks and spillages from large quantities o f storage these facilities would have to have properly fitted oil traps. Additionally, the building contractor would be obliged to provide workers on site with protective clothing such as ear stuffers, nose masks, helmets and boots, that would have to be worn on a mandatory basis. In order to prevent workers from falling from heights due to faulty scaffolds, these would be periodically inspected to check on their strength status. MLF would also ensure that the contractor provides a well-stocked first aid box to cater for minor injuries and illness at the construction site. It is unlikely that the proposed civil works would impact adversely on the ecology and biodiversity o f the sites. The Borrower agrees to site all civil works inalready built up areas where the original ecology has already been irreversibly influenced and biodiversity conservation, particularly plant and ecosystem conservation i s currently not relevant. The Borrower agrees to ensure that the perimeters o f the civil works are cleaned up o f all debris and restored to a form similar to the original status before commencement o f work. Construction sites would be planted up with grass and amenity trees to offer the sites acceptable levels o f vegetation cover and aesthetics. The assessment revealed that it i s also likely that improper boundary demarcations and non-conformity to land use planning and development schemes formulated by the Ghana Town and Country Planning Department o f the Ministry o f Science and Technology could result inunacceptable landscape/ecosystemmodification, albeit insignificant. InstitutionalAssessment: The EIA also involved an assessment o f institutional capacities incountry to ensure that key EIA-related functions including review o f the EM, environmental monitoring, compliance (inspection) and enforcement, or management o f preventive and remediation measures for the proposed project are implemented and monitored. The Government o f Ghana has adopted a comprehensive National Environmental Policy (199l), which aims at ensuring sound management o f resources and the environment and to avoid any exploitation o f these resources in a manner that might cause irreparable damage to the environment. The policy endorses the preventive approach to environmental management and emphasizes the need to promote socio-economic development within the context o f prescribed acceptable environmental standards and safeguards. In addition, the state in 1994 through the enactment o f the Environmental Protection Agency Act (Act 490) established an effective environmental impact assessment frameworkkystem, giving responsibility to the Environmental - 85 - Protection Agency (EPA) to ensure compliance with any laid down environmental impact assessment procedures in the planning and execution o f development programs and projects, including even compliance in respect o f existing initiatives. The Ghana Environmental Assessment Regulations, L.1 1652 promulgated in 1999 gave complete legal backing to the procedures under which the EPA ensures environmental management in the country. L.I. 1652 requires that all significant adverse impact scale developments (currently 17 types are classified) are subject to an environmental impact assessment. These include mining, petroleum and gas field development, construction o f dams, harbors and roads, logging and waste disposal. Inpursuance o f its statutory role, the EPA has developed acceptable national standards and guidelines for water and air quality and ambient noise level monitoring. The EM also revealed the technical capacity o f project-affectedorganizations to implement and monitor the mitigation plan. The findings show that the Borrower's designated authority with responsibility for environmental management inthe country, the EPA, i s well positionedto oversee the implementation and monitoring o f the EM-related functions mentioned above under LAP. The corporate structure o f the EPA includes two long-established and efficient units namely, the Environmental Assessment Unit and the Inspectorate Unit with long experience in EIA-related activities. These units would appoint qualified professionals to handle issues related to EIA implementation and monitoring under the proposed project. Inaddition, the project would have accessto staff ofthe EPA regionaloffices, who would be available for ensuring effective implementation on site o f the various EIA-related activities under the environmental and social mitigation plan. The EIA revealed, however, that capacities within the land sector agencies and the Ministry o f Lands and Forestry for implementing EIA-related functions i s inadequate and that their capacity would have to be strengthened through short courses and training for selected staff from project-affected public sector organizations. Training should start quite early in the implementation phase and continuedthroughout the life o f the project. The EPA, in consultation with MLF, as the implementing agency on behalf o f the Government o f Ghana, has agreed to report, within the broad frame o f project M&E, on (i) compliance with the measures agreed with the Bank on the basis o f the findings and results o f the EIA, (ii) status o fremediation measures, the and (iii)the findings o f monitoring programs. The Government o f Ghana fully understands that monitoring information would assist to evaluate success o f mitigation measures as part o f the overall project supervision, and allow corrective actions to be taken when needed. The M&E o f the environment mitigation plan would be integrated with the project's overall design, budget, implementation, and M&E. Stakeholder Consultation: Duringthe project identification and the EL4process, the Ministry o f Lands and Forestry consulted widely with project-affected groups @.e.,farmers, tenants, landowners, traditional authorities, judicial and legal services, Attorney General's Office, public and private sector organizations, research and academia, women and youth), community-based organizations and national nongovernmental organizations about the project's environment aspects and took their views into account in finalizing the EM. The Borrower would continue the consultation process with such groups throughout the project's implementation as necessary to address EM-related issues that affect them, particularly duringthe implementation o f the civil works component. The EIA assessment indicated that the project preparation team provided relevant material (e.g., Project Information Document, Project Concept Document, draft versions o f the EA reports) to project-affected entities through advertisement in two local daily newspapers - The Daily Graphic and The Ghanaian groups, CBOs and NGOs prior to consultation. The MLF will officially disclose the draft EA to these Times. In addition, a one-day national workshop will be held in Accra. Kumasi and Tamale for public and private sector organizations, research and academia, traditional authorities, nongovernmental organizations and other civil society groups and the views expressed during the sessions will be - 86 - incorporated into the final EIA report. On the basis o f the findings from the analysis o f extent o f perceived impacts the consultants prepared an environmental management plan detailing time bound actions to prevent, minimize or mitigate potential risks. The total cost for monitoring the environment mitigation plan has been estimated at US$lOO,OOO and would be incorporated into the budget for the overall M&E. Summary of magnitudeof impacts andbenefits Health and Safety 0 0 -1 0 Employment-and Income 0 +2 +3 0 Conflicts 0 -1 0 -1 Scores: Impacts are scored on a basis o f 0 to a maximum of 3. The numbers reflect the magnitude of the impact, where "1" i s a slight, insignificant impactbenefit, "2" a moderate impactbenefit and 3 a significant impactbenefit. A "0" indicates that no adverse impact i s expected. Benefits are indicatedby a positive (+) sign and adverse impacts by a negative (-) sign. - 87 - Additional Annex 12: Social Assessment GHANA: Land Administration Project Background As a prelude to project preparation, a rapid social assessment (RSA) was conducted to identify the key stakeholders o f the proposed project, their issues and concerns which the Project Preparation Team should consider in designing the project, and to obtain qualitative information to assess whether the initially proposed project concept and its key components are acceptable to them. Among the foremost concerns o f the RSA was to determine whether customary authorities, under whose stewardship 80 percent o f the country's lands lie, will recognize the need for the project, accept its importance and usefulness to their roles and responsibilities as custodians o f the lands, and commit themselves to support and participate in the design and implementation o f the proposed project. Their support was considered crucial and a critical risk in the initial project concept document. Key findings from the RSA were presented to senior management o f the Ministryo f Lands and Forestry, heads and staff o f the public sector land agencies, Greater Accra-based Customary Heads o f Stools and Family lands, civil society and the private sector (surveyors and realtors). The Team Leader and some members o f the Project Preparation Team attended the RSA findings validation meeting. The discussion that ensued further enriched the findings. The key findings o f the RSA were analyzed for each o f the major stakeholders. The interests o f the stakeholders, the positive impacts o f the project, its possible negative impacts or risks and possible mitigation measures for these are summarized in a matrix form in Attachment 1. Highlights o f the RSA findings are presentedbelow. Land Ownership andAdministration There are four categories o f land ownership in Ghana governed by both customary practices and enacted legislation. These are: (a) state lands, compulsorily acquired by the government through the invocation o f appropriate legislation and held in trust for the entire people o f Ghana; (b) private lands belonging to stools , skin or family communities, and held in trust on their behalf (by chiefs, tendana, family heads, etc.); (c) vested lands, belonging to stools or skins, but vested in the State in trust for the people o f the stool or skin or family from which it was vested; and (d) private lands given or sold as freehold by stools, skins and families to individuals, corporations and institutions [only freehold private ownership obtained prior to the enactment o f the 1992 Constitution i s legally recognized as Act. 267 (5) bars creation o f freehold interests in land out o f Stool land and by implication Skin land as well]. The Lands Commission i s responsible for and managing State and vested lands and for providing consent to the disposition o f stool, skin and family lands provided the development i s consistent with the approved planning schemes o f the area. Private lands, estimated to account for more than 80 percent o f the country's total land area are communally owned, and held in trust for the community and its future generations by a stool, a skin, or family as symbols o f customary authority. A famous Ghanaian saying depicts this tradition - "land belongs to the many who are dead, to the few that are alive and to the numerous who are yet to be born." Irrespective o f the governance structure established according to their customary practices, all allodial (original) title holders hold the land in trust for the subjects o f the stool, skin, clans or families inaccordance with their customary laws. Although allocation o f usufruct rights is retained by the allodial owners, the Office o f the Administrator for Stool Lands (OASL), collects rents and distributes the proceeds in accordance with the provisions o f the 1992 Constitution in the proportion of: (a) the district assembly 49.5 percent; (b) the stool or skin 22.5 percent; (c) the customary council 18 percent and (d) OASL 10 percent to cover its administrative expenses as provided in the 1992 Constitution. - 88 - In addition to these two public sector agencies, there are four other agencies involved in land administration. These are: (a) the Land Title Registry responsible for registering interests in land and issuingtitle certificates; (b) the Survey Department responsible for cadastral, geodetic and hydrographic surveying and the production o f base maps and cadastal plans for each individual parcels o f land for which title certificate i s issued (c) the Land Valuation Board responsible for Government property valuation functions such as compiling valuation rolls for local authorities for taxation purposes, assessing compensation in state acquisitions, establishing the capital value o f state-owned properties and valuing mineral and forest concessions; and (d) the Town and Country Planning Department (TCPD) responsible for land use planning in urban and peri-urban areas. All o f these agencies operate under the Ministry o f Lands and Forestry except TCPD which i s under the Ministryo f Science and Technology. Performanceof the State andPublicSector LandAgencies State Land Acquisition. The power to acquire lands by the State has been exercised in a manner that has adversely impactedmany allodial land owners who harbor several grievances against the State. First, the procedure for acquisition by notification o f affected persons o f the intent to acquire lands in the local newspapers i s highly unsatisfactory, considering the predominantly illiterate society in the rural areas. Kasanga notes that so inadequate i s the publicity accorded to land acquisition that very often, affected persons know that their lands have been taken away from them only when they see notices being posted on their lands, announcing such acquisitions and indicating that their lands have now become Government property. Second, although compensation i s guaranteed by law, it has not been paid in several acquisitions by the State. Even when compensation has been paid, affected parties claim that the compensation i s woefully inadequate to cover the inconveniency o f dislocation and acquiring land in other location and starting a new life altogether. Third, affected land owners complain that some o f the lands compulsorily acquired by the State are not being utilized for the explicit purposes for which they have been acquired and that such lands have been transferred to third parties without the consent o f the original owners. Fourth, large tracts o f land forcibly acquired by the State remain unutilized and allodial owners o f land do not see the rationale why the land was forcibly acquired from them if it were to lie idle for a long period o f time. The problem i s acute in the urban areas, particularly in the Greater Accra Region, where an estimated 50 percent o f lands o f the Ga has been compulsorily acquired by the State in creating the city o f Accra. Consequently, Ga indigenes have access to very little land. Moreover, compensation has not been provided for several of these acquisitions. The L a Customary Council sued the State in court to obtain payment for their lands. After a prolonged court battle, they won the case but suffered another setback when the government decided to freeze all payments o f land compensation in the country. Inthe case o f the Dansoman Estates land acquisition in Accra, the State Housing Company rehsed to pay the agreed annual rents to the affectedlandowners, despite the huge benefits it derived from land sales. Participants o f focus group discussions (FGDs) indicated that the government's compulsory acquisitionhesting of private lands without any consultation nor approval by customary authorities, non implementation o f proper resettlement o f displaced persons and continued non-payment o f just compensation have affected negatively their perceptions o f obtaining justice from the State. Filing cases in court has practically drained them o f financial resources which could have been invested in the delivery o f social services. They said that the wheels o fjustice grind slowly when one files cases against the State or its parastatals and influential people. The customary land authorities are increasingly clamoring for the return of their authority to administer and manage lands themselves. The State needs to address these issues in a fair, participatory and transparent manner to restore trust between government and customary authorities and pave the way for a lasting partnership to reform the land administration - 89 - system and sustainably administer and manage the country's lands and natural resources. Fortunately, the new NPP Government i s acutely aware o f these problems and has demonstrated its political will to address the issues o f compensation and vested lands. Public Sector Land Apencies. The six land agencies are represented only at the central and regional levels. Their operations are, therefore, highly centralized. Furthermore, they are inadequately staffed and funded and have little access to modern equipment and information technology. These inadequacies result in cumbersome procedures and delays that frustrate all those having to deal with them in registeringland transactions. Concluding land transactions take anywhere from two months to three years or more, sometimes costing more than the price o f the transaction itself. The low level o f staff compensation lead to rent seeking behaviors that add to such frustrations. Furthermore, there i s no culture o f cooperation and sharing o f information and records. In one survey, one third o f respondents who were engaged in land transactions stated that they had no intention o f going through the ordeal o f registering their land transactions. Frustrations likewise arise due to the long-drawn process o f obtaining planning and development permits for buildings, which can take one to two years, with 75 percent o f respondents spending some Cedis 0.5-1.O Million. Distrust o f the manner inwhich District Assemblies utilize revenues generatedby the stool lands appears strong, especially in the rural areas. Customary authorities lament the apparent lack o f rationality by which development projects and activities are selected, and the lack o f proper consultation, indisbursing revenues generated by the stools. Customary authorities demand more transparency and participation in decision-making, even suggesting that changes need to be made to ensure that a larger share o f the revenue generated must go to the stools that generated it in the first place. While this parochial perspective can limit initiatives for integrated area development, it clearly illustrates the absence or inadequate involvement o f stool/skin authorities in the planning and decision-making processes for development work in their respective areas. Customarv Land Authorities. Except in certain urban areas, boundaries between allodial land owners and derivative land use rights are not demarcated using permanent pillars or geographic coordinates. Land marks that are ephemeral like trees and trails are used. Boundary disputes arise when these land marks disappear. Only a few o f the customary land authorities are organized, like the Asahantene's Land Secretariat and the Gbawe Family Land Council to discharge their function o f land administration effectively. The Gbawe family owns land at the outskirts o f Tema town. Their land council has reserved a large tract o f land that i s systematically planned for the construction o f modem residential units with specific plots allocated for every resident family in the community. These plots cannot be sold nor leased to outsiders. Land transactions, particularly deeds o f leased land inrural and some urban areas are verbal despite the Administration o f Stool Lands Act o f 1962, which stipulates that land transactions between locals and migrants are not effective, unless validated by the appropriate government authority. The records o f written land transactions are not properly kept, sometimes leading to multiple sale or lease o f the same parcel o f land that are causes o f land litigation. Some tenants with verbal agreements are subjected to extortion payments when chieftainship changes hands. Some chiefs and customary land councils also use illegally personnel who are not competent nor authorized, to document indentures for them. In efforts to bypass the frustration and high cost o f using the services o f the Survey Department and the TCPD, the customary land authorities use quack surveyors and physical planners which exacerbates problems regarding boundaries and haphazard urban development insome areas. Some unscrupulous chiefs who want to enrich themselves sell or lease undeveloped land without consulting community elders and collude with developers who construct buildings without proper permits. Inthe Upper East and Upper West regions paramount and lesser chiefs were introduced by the -90 - Colonial Government. The true administrators o f land are the Tendamba or fetish priests. The current chiefs are bypassing the Tendamba and allocating lands, creating confusion and dissension among the communities there. In the south o f the country where families are administering lands, family members forge signatures and thumbprints to sell rights to land illegally, thus causing indiscipline in the land market. Within the past three years customary councils and govemment authorities alike note that violations of the land owner's interests, especially in the rapidly developing areas, are rising. Cases include mortgaging, sub-letting, leasing or outright selling part o f the land without the consent o f the land owners. This accounts for the mounting number o f court cases where rights to the same parcels o f lands are being claimedby various individuals and groups. For most parts o f rural Ghana, customary councils interviewed indicate that settlers' sub-letting to relatives o f agricultural lands, and/or expansion o f the area being cultivated beyond the area granted to them (without the consent o f the land owner) as the most common forms o f violations committed against the land owners. Generally, rural land i s still perceived as "plentiful", and can be shared with those who are willing to follow the tribes' customs and observe the conditions for the grant. However, they cannot own the land allocated to them. Lack o f confidence inthe land adjudication system, inthe judicial systemto swiftly resolve land disputes and in the land market i s prompting some o f the landowners and lessees to hire land guards. This i s specifically observable in the Greater Accra region, and has strong probability o f replication in other regions where conflicts on land are obtaining (Ashanti, Eastem, Brong-Ahafo and Northern regions). In some parts o f the country, queen mothers organize men and the youth to form vigilante patrols that monitor encroachment on their ancestral lands. In the urban and peri-urban areas, communities plant white flags to inform encroachers that they must either contact the customary land authorities or face eviction. In the case o f Gbawe family lands, migrants allocated plots along the stool's boundaries are mobilized to patrol the boundaries o f the lands and are requiredto report unauthorizedoccupation. LandDisputeResolution Inthe Ashanti region, disputes involving demarcation o fboundaries within the Kumasi Customary Area will rarely be brought to Court, as the Asantehene himself has directed all villages to settle disputes using customary laws and institutional mechanisms. Should a party not be satisfied by the ruling o f the elders o f the community and the customary land authorities, the aggrieved person can appeal to the Asantehene's court. Some communities in Ashanti have now set-up Land Allocation Committees (LACs) comprising the customary custodians o f the lands or their representatives, elders, members o f the village development committees and the youth. Land can only be allocated subject to the approval o f the customary owners. The LACs monitor any encroachment or violations o f customary land laws. Conflicts regarding boundaries are settled among members o f the community with the assistance o f the LACs. If a conflict i s irresolvable at that level, the problem i s raised before the Paramount Chief. The Chief sends two elders to investigate and gather information, and discuss the case with those affected by the conflict, in the presence o f members o f the Customary Council if required (especially if the case involves disputes among sub-stools within the customary area). If the boundary conflict involves another stool, then the Customary Councils o f both stools meet to resolve them. The Ashanti model o f a land dispute resolution mechanism using local institutions and participation o f the community should be encouraged and promoted in all areas to avoid and minimize protracted and - 91 - costly land litigations inthe courts. Women's Access and Rightsto Land: Women can access land for use o f residential and agricultural purposes. However, ownership o f land by women i s a totally different matter, heavily dependent on the customary laws exercised by the different ethno-cultural groups. While most focus group discussions (FGD) participants indicated the absence o f biases against women when it comes to acquisition and ownership o f properties. FGD with a women association in the Northern Region (Bolgatanga) revealed their difficulties in acquiring properties by themselves. Women related that access and purchase o f usufructuary rights can only be done through a male intermediary, a husband, a brother, or a son. It was reported that women in some tribes are forced bytheir in-laws to leave their conjugal home a few months after their husbanddeath. InTamale, however, Lands Commission representatives indicatedthat women are actually active inland acquisition by themselves, but request secrecy o f the transactions involved. Two queen mothers in the Ashanti region indicated they have no problem in acquiring and owning land, as inheritance laws guarantee them access to and ownership o f land. Research studies should be commissioned, if the Project wishes to establish the situation in all major ethnic groupings inGhana. The Women Association o f Tomato Growers in the Upper East region are finding it more and more difficult to lease agricultural lands inthe peri-urban areas. As farm lands are converted to other uses, they are driven to farm further away from their domicile, causing not only economic hardships but physical difficulties by having to walk far as well. Cases in the Northern region were reported where women derive income from shea trees in lands which they either lease or where they have been granted usufruct rights. Again, shouldthese lands be converted to other use, their income will be reduced. Inthe absence o fany empirical evidence, the RSA could not conclude the relative incidence and severity o f gender biases regarding ownership and o f landed properties in Ghana. It i s recommended that a special study addressingthis issue be conducted as a matter o fhighpriority under the project to guide policy and legislative considerations and implementation o f the project. SocialAcceptabilitV of the Proiect Although awareness of the land mark Land Policy o f 1999 i s generally low, social acceptability o f the proposed project i s high at the central and regional level. Customary trustees o f land and the community/family elders in the urban and rapidly urbanizing areas are willing to pursue demarcation o f properties and assist innegotiating and settling boundary disputes, usingcustomary arbitration forms and mechanisms for conflict resolution. The customary leaders are willing to participate in survey work; pay some amount for registration and documentation work as long as these are within their capacities to pay. However, they expressed strong reservation on their ability to pay the total cost o f boundary demarcation and registration. The customary land authorities welcome government's technical and material assistance in setting-up their own land secretariat. The powerful King o f the Ashantis, Asantehene Otumfuo Osei Tutu11,summed it up by saying, "This Project is long overdue." Comparing the intensity o f reactions generated by the presentation o f the initial project concept, participants from the urban and peri-urban areas (Accra, Sekondi-Takoradi, Kumasi and Tamale), indicate a stronger demand for the project, as compared to their rural counterparts. This demand can be attributed to the large number of disputes associated with multiple sales o f lands, encroachments, and other pressures on land brought by the requirements o f rapid urbanization. In the Greater Accra Region alone, about 15,000 land cases are pending before the courts. - 92 - Inbothurban andrural areas, customary land authorities see the Project as an opportunity to discuss and negotiate with the State for the repeal o f perceived oppressive legislation that have contributed to the usurpation o f powers vested in customary forms o f governance. Ingeneral, there i s a strong demand for land to be administered by the allodial owners, and not by government agencies. It must be noted that despite various political upheavals which have taken place since 1979, and the pressure from nationalists to restructure the institution o f Chieftaincy, it was observed that generally, the ChiefdClan Heads continue to be the center o f the communities' social and political life. Public land sector agency officials at district offices who participated in the meetings and FGDs appreciate the concept o f the proposed Project, and look forward to its immediate realization. Regarding the idea o f the one-stop-shop for all land agencies, the field officials registered support for it and look at it as a long-term objective. Almost all recognize their interdependence, and accept the need for the immediate sharing o f information among themselves. However, lack o f logistics, even to reproduce information, negates such collaborative arrangement among them. Challenges to the Project Design and Implementation: Given the preceding highlights, the proposed project i s timely. Institutional transformation i s both demanded at the community and government institutions levels. The proposed project can provide the necessary opportunities for productive interaction, to promote the development o f trust, effective institutional linkages, among the local government authorities, national land agencies and the customary authorities. The challenge i s to design the most appropriate, integrated institutional structure responsive to the emerging requirements for effective and sustained participation o f customary leaders and communities in land administration decision-making; develop workable mechanisms to ensure transparency o f transactions in all levels; and formulate practical communication/feedback systems to ensure that all stakeholders are informed o f what structural and institutional changes are happening as the project progresses. The low level o f knowledge about the National Land Policy, even among government agency staff, implies the need to design and implement an accelerated information and education program among government, customary authorities and the general public. A well-informed bureaucracy and the general constituency will always be in a better position to assert and enforce rules, and support attainment o f commonly shared objectives. The project would need an information and education subcomponent that reflects the rationale, objectives, strategies, structures for effective delivery, and the indicators against which to measure the effectiveness o f the information and education program for each o f the target groups. A program must be designed to enable District/Metropolitan Assemblies, customary authorities and public land sector agencies, to form and sustain effective partnerships for development work, and that all groups eventually recognize and value the benefits derived from such development partnerships. What i s important i s to ensure that participatory processes are employed in defining the objectives o f the partnership, the mechanisms required to be set up, the roles and responsibilities, including the corresponding authorities o f each institution, and the means by which the commitments o f each party to the partnership will be provided, monitored and evaluated. Considering the possible biases against women and migrant tenants, it i s strongly recommended that the project's institutional design for delivery at the community level must ensure the representation o f these various groups in relevant working committees to be formed duringthe implementationo f the project, to give them access to policy, legislative and decision-making processes which will affect their lives. - 93 - The most difficult challenge to the Project still lies inhow the structural arrangements and the processes can be designed to allow transformation among government land agencies, the local govemment authorities, and members of the legislative and judicial branches o f government. The objectives o f harmonizing state with customary laws, decentralizing land administration and services delivery up to the community levels, and community participation in decision making, evidently require a major paradigm shift among those who are currently holding power positions by virtue of their legal authority to decide on land issues. The joint management (allodial owners and government authorities) concept in land administration will work only to the extent that these institutions accept, prepare and commit themselves to the full realization of the Land AdministrationProject's empowerment objectives. Inthe final analysis, absence o f such a commitment maybe the biggest riskto Project success. Ghana LandAdministrationProject StakeholderAnalysis itake- Interestson 'ossible Negatiw PossibleMitigation iolders LandAdministration PositiveProject. Impact 01 'rojectImpact01 Measures Interests Risks Coherent set o f land laws DProject will address need to Structural mergers Organization :overnment incorporating state and harmonize state and will be inevitable, development efforts .and customary interests uniformly customary laws through to facilitate mustbe incorporated Lgencies applied throughout the country review and development o f delivery of service inthe ProjectDesign Efficient land information relevant legislation and make land to ensure that the system installedup to the ,Project will install and administration requiredprocedural community level support systems to produce systems more and behavioral Individuals have equitable comprehensive data base of efficient. changeswill be access & security o f tenure the country's landresources Participatory natur understood, accepted based on registered land DWithappropriate o fthe project and supported by each Protected rights o f landowners documentation o f involving local civil servant inthe and their descendants transactions, both landowners communities and bureaucracy Discipline inthe land market and leaseholders will be more securing o f land Political will on the Resolution of land boundary secure administration part of the Ministry's disputes DCapacity-buildingwill be a records may make management to Decentralized land delivery major component of the rent seeking execute the desired services with customary Project, up to the community behavior difficult. changes must be authorities and communities as level, and information Resistance to such demonstrated, to send partners dissemination will form part changes is highly the right signal to Documentationo f all land o fa massive information likely and may everyone concerned transactions education program make institutional Management mustbe Appropriate revenue from land 'Income from land restructuring very equippedwith transactions to sustain transact-ions will be more difficult advanced conflict government operations and definite as rules are defined resolution skills attract competent and dedicatec and agreed upon (alternative dispute personnel ,Land adjudication and resolutionmethods) to General orientation and management committees be able to resolve acceptance by the public o f the involvingcommunity conflicts on the basis Land laws and support for their representativesset-up with of "interests" and not implementation help o f the Projectwill "positions" Weeding out o f incompetent facilitate monitoring o f surveyors and unscrupulous activities o fprivate sector land agents to restore agents investment confidence inthe land market - 94 - 'take- Interests on Possible Negative Possible Mitigation olders LandAdministration Positive Project. Impact Project Impact or Measures on Interests Risks Enactment o f relevant laws Review and development o f None identified Tot necessary 'arliamen which will operationalize relevant legislation will be nd Constitutional provisions undertaken by the Project. :xecutive invoking Stakeholder participation in inclusiodapplication o f identifyingthe Agenda for customary laws in review and development will govemment operations ensure relevance o f desired Economic development legal interventions to their withinthe framework o f needs sustainable land use Studies to determine Equality of access, requirementsfor sustaining acquisition and utilization of operations o fthe systems to land resources by both be installedwill be conducted genders Participation o f customary Sustainable resource authorities can generate generation to support financial counterpart funds country's development from communities, which can efforts reduce government costs in deliverv o f services udiciary Coherent set o f landlaws Project will contribute to There may be resistance 4wareness campaign on which can be referred to for review and development o f to introduction o f land :he usefulness o f land renderingjudgment on cases land legislations tribunals tribunals filed bypetitioners incourt Project will install systems 1Reliable information from which will enable land LandAgencies to use as agencies to access reliable basis for rational and fair information which can be judgment o f cases involving provided to the courts, when land disputes calledupon 1 Reductioninland litigations 1Introduction o f landtribunals to relieve congestion o f supported under the project court cases and overload o f will fast-track decisions on work onjudges land disputes 1With active involvement o f customary authorities and communities inresolution o f land disputes land-related disputes elevated to the court are expected to be reduced - 95 - Itake- Interests on Positive Project. Impact on Possible 'ossible Mitigation lolders Land Administration Interests Jegative Projec Measures mpact or Risk! Boundaries between and among Project will initiate demarcation o fNo foreseen Representativesfrom Ietropolitanl stools, sub-stools and family lands boundaries betweenproperties. negative impact the Assemblies must Iistrict clearly established so that Land transactions will be on interest. The be made to memblies development planning can take documented and information Assemblies stand understand, accept place with legitimate owners' properly stored to enable fast to gain a lot with and commit to the participation retrieved. the new institutional Land transactions properly and Accurate land records facilitate implementation o arrangements and see accurately recorded, to be able to land use planning and orderly the Project the involvement o f reduce boundary conflicts within development o f urban and It i s a possible customary authorities their areas periurban land that Assemblies as a strategic Orderly development o f urban and With increased security inland may be threatenel advantage inboosting periurban areas transactions, investors will have by customary economic growth and Investors confidence inthe land more confidence inthe country's authorities' alleviating poverty in market improved as a result o f landmarket interest to the areas. The secure tenure and reliable land participate in possibility o f sharing records and streamlined procedures decision making a much larger revenut and processes for land acquisition, over how land from a thriving land leadingto economic development revenues would t market will facilitate Increasedrevenue from ensuing shared and spent. shared interest and thrivinglandmarkets cooperation. rational and Respect for customary authorities Project supports Constitutional No foreseen 4ot necessary Legional capacity to contribute to better provisions describing integration of negative impact a [ouse of land administrationdelivery customary values and practices to of preparationo f lhiefs systems relevant aspects o fnational life this document Delineate the powers o f the state Project will cause the review and and customary authorities in development o f legislation, which allocation, acquisition, utilization will take the best and the finest and disposal o f the country's land aspects of customary rule and naturalresources Project will establish existing Inclusion o f applicable customary profile o f landownership; practices in land administration fraudulent practices will be exposec concerns by the process o fgetting Community involvement in communities engaged inthese monitoring landtransactions, to activities ensure that benefits accrue to Project will designthe most displaced memberso f the suitable/feasible institutional communities arrangement to: protect the IdentifyChiefs who are involved community against fraud and force; with anomalous landtransactions, prevent violence and arbitrariness as reported by studies conducted, and ensure fulfillment o f legitimate as they destroy the credibility and contracts and relations established sacredness o f the position by such contracts among human Reductioninland litigation before beings the courts With active involvement o f customary authorities and communities inresolution o f land disputesland-related disputes elevated to the court are expected to be reduced - 96 - `takeholders Interests on PositiveProject. PossibleNegative PossibleMitigation LandAdministration ImDact on Interest 'roject Impactor Risk Measures Demarcation o f Maps o fboundaries Customary authorities ma Identify and isolate aramountChiefs, boundaries within the drawn and existing feel threatened by potential "hotspots" to :IanandFamily [eads,Members01 stoollskin, and rights recordedwith capacity-building efforts intensifycommunity land l e Customary boundaries inrelation to active involvement o f o f the Project to be awareness and :ouncils other stoolshkins Customary leaders and launched at grassroots mobilization program m Deeds granted and family representatives level and resist reforms (CLAMP), allow records kept by customaq Legislative and sought under the Project community to decide authorities and local institutionalreforms Chiefs involved in how best to neutralize governments under the Project will fraudulent practices may Chiefs resisting reform. m Information made recognize customary not support the Project Government can available regarding status authorities powers to and may mount heavy demonstrate political will o f undeveloped lands allocate, utilize, and resistance and frustrate to enforce accountability "vested" ingovernment dispose land resources information gathering, and transparency in land Government respect for and delineate land boundary demarcation ani transactions by asking their customary authority administration land titling and Houses o f Chiefs to to administer lands responsibilities betweer registration activities sanction erring Chief or them andpublic land To alleviate fears, process administration agencies for identifjmg, selecting and defining responsibilities o f various village committees to be set up must involve the Chiefs and their councils. Efforts must be exerted to convince the Customary Authorities that people participation can make thembetterleaders o fthei communities m Their tenure o f land i s Project may lead to 1With low levels o f Tenants shouldbe ligrants and secure and their access to improved security o f literacy, and much o f representedinvillage mints land facilitated leased land and tenural arrangements committees to ensure that m Honoring o f oral land development o fbetter undocumented, their interests are heard leases; terms and conditions landowners may tend to and that principles o f m Determination o f land Documentationo f renege on their oral fairness andjustice are boundaries agreements and their agreements or try to limit applied insecuring oral enforcement will be a tenants rights lease agreements public concern, as Rules for reviewing land terms are negotiated in leases and rentals should a transparent manner be transparent and must evolve as a product o f discussions between migrants and landowners, with local governments providing guidance and enforcement when called uuon - 97 - #take- Interestson PossibleNegative PossibleMitigation .olders LandAdministration PositiveProject.Impacton ProjectImpactor Measures Interests Risks DMore secure access to land fox 'Project will ensure women Inpatrilineal societies. Mount aggressive Vomen agriculture or residential use involvement invillage women participation awareness programs for DRegistrationo f their rights ove committees to be set up for invillage committees women through the trees which their ancestors Project implementation may be rejectedby media and by involving were allowed to plant or I Project will sponsor further predominantly male civil society andNGOs collect fruits from trees on studies into gender leadership inthe other families' lands considerations relative to villages DInclusion o f name inthe acquisition, ownership, Certificate o f Title to be issuec utilization and disposal o f lands DRight to acquire property to inform legislative and DParticipation in institutional reform decision-making if conjugal property were to be leasedor alienated for longer duration DParticipation inmonitoring land transactions to ensure transparency inallocation and administration of communal property o f the family or stool iar DConsistent and coherent laws 1Reviewand development o f Possible loss o f Not necessary issociatio inlandadministration relevant laws will provide income for lawyers as DAccurate Information on land employment opportunities to lega a result o f reduced resources, to obtain facts on luminaries interested inshaping land disputes land disputes being litigated the political structure o f Ghana appearing before the 1Data base to be established by the courts and for those land administration information who are interestedin systemwill be usehl to their dragging land interests litigations 'rivate DParticipation inProject 1Contracting opportunities for N o foreseen negative 1Not necessary urveyors activities for survey work survey work will openup impacts, except the DExposure to better 1Surveyors will receive training weeding out o f technologies in survey work both inthe training institutes and "quack" surveyors short courses organized by the who victimize Survey Department and the illiterate landowners universities 1Community and customary authorities' involvement inLand Adjudication Committees will speed up survey work 1Improvedlicensing procedures will strengthen the professionand its ethics - 98 - Interests on Possible Negative Possible Land Administration Positive Project. Impact on Project Impact or Mitigation Interests Risks Measures Accurate information on Project will establish accurate land N o knownnegative Not necessary Private existing land use on which to information and institutionalize its impact Appraisers1 base fair valuation o fland periodic update Valuers and land basedproperties for transactions Reserving valuable lands for Participationo f youth invillage Exclusion o fyouth from Awareness Youth their future access committees and their participation ir active participation in campaign Access to information about land awareness and mobilization village committees land being allocated or sold by committees will enable them to their elders and Chiefs access information they needto Protectiono f their ancestral check the Customary Council lands from encroachers members who err intheir More accountability by the commitment to serve the interests of Chiefs and Eldersrelative to the community income generated from land administration Civil Protect the rights o frightful Project offers opportunities for Ifwork relationship is InterestedNGOs Society owners o f lands NGOs incommunity organization not clarified well and the that wish to Organi- Engage incommunity work, to: rules o f engagement are participate in zations/ awareness programs to educate 1 systematically deliver information vague, NGOs or Project NGOs citizenry on their rights inland and education programs on the government may be implementation administration and obligations provisions o f the National Land frustrated by outcome mustbe properly Foster alternative land dispute Policy; and IfNGOsengagesin oriented, trained, resolutionmechanisms 1 ensure organized participation o f hostile advocacy work, and provided with Establishing partnerships with communities in demarcation o f land public land agencies may supportive government for people's boundaries, and isolate them and make monitoring work participation inlocal difficult their access to for effective governance government resources collaboration with for community the project capacity-building work Active participation in Land is such a "hot" issue that 1N o negative impact as Not necessary information campaigns to media (print, broadcast and inform citizens o f their rights television) can be tapped as Project and how to obtain due process partners to have a massive outreach Promote transparency and program to educate the public on democracy innational and ongoing debate inpolicy local govemance formulation, legislative and Vital issues which can attract institutional reform and the listenerdviewersto increase application o f laws, rules and their ratings regulations governing land transactions. The media will be particularly useful, especially inthe urban and peri-urban areas, where radio and television broadcasts are usually devoted to community news. - 99 - Additional Annex 13: Statement of the Government of Ghana on Land Policy GHANA: LandAdministration Project 1.0 Background Ghana i s heavily dependent on primary land-based products for its socioeconomic sustenance. Agriculture, mining, timber and construction dominate sector contributions to the country's gross domestic product. Ease o f access to land, security o f land tenure and prudent use o f the nation's land resources determines the pace o f socioeconomic growth. For a long time, Ghana's economy has faced a downturn which needs to be critically addressed. The land ownership and management regime based on a duality o f customary and common law i s beset with a number o f problems, contributing to the slow pace o f socioeconomic development. The Government has embarked upon the Ghana Poverty Reduction Strategy (GPRS), a comprehensive policy to promote growth and poverty reduction. The medium term priorities hinge on infrastructure development, modernized agriculture based on rural development and good governance among others. The land sector plays a considerable role in the attainment o f these objectives and the Government's land policy that will be achieved through specific reforms targeted at the source o f the land sector problems are consistent with the objectives o f the GPRS. 2.0 Major Constraints of the LandSector Overtime, as land became more scarce, indigenous arrangements under which individual members o f the lineage enjoyed general rights o f access to land have been rendered untenable. Indigenous tenancies have been generally replacedby sharecropping (abusa and abunu systems) that enabled local land owners to gain labor for their farms. Commercial transactions in land and the transformation o f inheritance rules compounded by population pressure have given rise to increased litigation over land as individuals sought to exclude those they believed to hold illegitimate claims. Post-independence governments enacted a multiplicity o f legislation to deal with specific problems in an ad hoc basis, not forming part o f a comprehensive policy of land acquisition or land use administration. It was the realization o f the need for more coherent long term land policy and its effective administration that instigated GOG to develop a national landpolicy and seek ways o f implementing it. A number o f land sector constraints that require immediate attention have been identified in many previous land administration related studies and summarized inthe National Land Policy document. The main sector issues can be characterized as follows: 0 inadequate policy and legal framework; 0 fragmented institutional arrangements and weak institutionalcapacity; 0 weak land administration system, that excludes land owners and chefs from major decisions on land administration; 0 underdevelopedlandregistration systemand inefficient landmarkets; and 0 compulsory acquisition by Government o f large tracts o f land without payment o f compensation These issues have given rise to: 0 indeterminate boundaries o f customarily heldlands, spawning massive land disputes and litigation; 0 inadequate security o f landtenure, undervaluing urbanproperty, making it difficult to use land values as collateral for loans and depressing - 100- 0 national and local government revenues; 0 difficult access to land, thwarting both urban and rural development; and 0 general indiscipline inthe landmarket. 3.0 Objectives of the Land Policy The objectives o f the landpolicy that will address these constraints are to: harmonize statute and customary laws to facilitate equitable access to land and enhance security o f tenure o f landthrough registeringsystematically all interest inland; minimize and eliminate where possible the sources o f protracted land boundary disputes, conflicts and litigation in order to bring their associated economic costs and sociopolitical upheavals under control; ensure payment within reasonable time o f fair compensation for land acquired by Government from customary or private landowners; instill order and discipline in the land market to curb the incidence of land encroachment, unapproved development schemes, multiple or illegal land sales, land speculation and other forms o f land racketeering; create and maintain effective institutional capacity and capability at the national, regional, district and where appropriate, community levels for land service delivery; and promote community and participatory land management and land use planningwithin a decentralized planning system. formalize land markets where appropriate; promote business-like and professional property management principles based on sound economic, and financial considerations. The aim i s to secure the best optimum economic, financial and social returnstowards a selffinancing landpolicy. 4.0 Land Sector Reforms The objectives o f the landpolicy will be achievedthrough policy, legislative and institutionalreforms. i. PolicvReform: Thedevelopmentofappropriatelandpoliciesisadynamicprocessthatthe Government would be continually engaged in. it would build up its policy formulation, monitoring and evaluation capability to ensure that land policies are reviewed periodically and are consistent with the national development objectives and the aspirations o f the populace. Inthis regard, state and vested lands have become vexing issues, creating mistrust between the state and allodial land owners. The situation o f vested lands and compulsorily acquired lands for which compensation has not beenpaid will be reviewed with the aim of: 0 determining whether the rationalfor vesting o f land i s still valid, where the conditions do not merit continued vesting to restore the landto their customary owners; 0 usingdivesting o flandas an incentive for settlingdisputes with customary owners; 0 consolidating landrequired for public service; 0 surrendering those which are inexcess o f public requirements; and 0 paying compensation for those which are still requiredinthe public interest. ii. Legislative Reform: The numerous land related legislative enactments in the statute books will be reviewed with the view to removing repugnant, outdated, conflicting and duplicated legislations and harmonizing them with customary land laws. The laws would then be codified into a set o f coherent and consistent legislation to support land administration. Communities would be empowered to use - 101 - alternative mechanisms to resolve land disputes. Land tribunals would be reintroduced to expedite the resolution o f the land disputes that cannot be dealt with at the community level and to clear the staggering number o f pendingland cases before the courts. iii. InstitutionalReforms: The roles and functions of all public land administration institutions would be streamlined and organized under one umbrella to become output and client oriented, working with clear and transparent processes. Land administration would be decentralizedand the capacity o f the customary land secretariats or committees strengthened to enable them manage their own lands directly free from interference by public sector agencies. The private sector will be assisted to provide some aspects o f land administration both to the public land sector agencies and customary land councils to expedite land titling and registration and processing o f landtransactions. 5.0 LandAdministrationProgram: The reforms outlined above would be implemented through the Land Administration Program, which i s a long term commitment by the Government o f Ghana to enhance economic and social growth by improving the security o f tenure, simplifying prudent land management by establishing an efficient system o f land administration both state and customary, based on clear, coherent and consistent policies and laws supported by appropriate institutional structures. The long-term programwould result in: 0 a clear, coherent and consistent set o f land administrationpolicies and laws; 0 a clear hierarchy o f customary land holdings and capacity to dispose o f land which will lead to a formal recognition o f the rights o f all categories of land holders and facilitation o f recording o f these rightsinan enhanced and decentralizedlandadministration system; 0 an efficient decentralized land administration system operating throughout Ghana in accordance with Government policy and compatible with cultural usage and responsive to the needs o f the people, within a self-sustaining financing mechanism; 0 an up-to-date, efficient land information system that supports good land records management and transparent transactions inland; and 0 a well functioning land market operating inboth urban and rural areas. Giventhe complexity o f the issues, it has beenestimated that it will take more than 15 years to complete the implementation o f the Program. Based on international experience, it i s felt prudent that the Program be implemented inthree five-year phases, particularly given that Ghana has a very complex hierarchy o f interest in land. There are many stakeholders and the emphasis on the first phase would be a range o f studies that seek to confirm policy detail within the framework o f the National Land Policy and initiate, reforms and pilot land titling and registration activities that would seek to build consensus and develop efficient, cost-effective and field provenmethodologies that can be used to scale up these activities under subsequentphase o f the long-termLand AdministrationProgram. The first phase o f the Program would be implemented through the Land Administration Project. The project has the objectives of: 0 harmonizing the policy and legislative framework for sustainable land administration by: fostering a link to land use planning; encouraging the active participation and engagement of customary land owners; and defining clear and complementary roles for the land sector agencies, district assemblies, customary authorities and the private sector; - 102 - 0 formalizing the institutional arrangements in a strengthened and decentralized land administration system, strengthening land sector agencies, developing a model o f a decentralized one stop shop and strengthening customary secretariats; 0 improving security o f tenure by developing and testing systems and methodologies to determine boundaries o f customary-held lands; 0 undertaking systematic land titling in areas where it i s viable, and agreeing on approaches in areas where alternatives to titling seem more appropriate; and 0 strengthening revenue generation within a framework o f developing a sustainable, self financing land administration system. - 103 - - 104 Map Section