Document of The World Bank FOR OFFICIAL USE ONLY PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 15.1 MILLION (US$2.5 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR A LAND ADMINISTRATION PROJECT July 8, 23 Report No: This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its content may not otherwise be disclosed without World Bank authorization. AFTS4 Country Department 1 Africa Regional Office

2 CURRENCY EQUIVALENTS (Exchange Rate Effective July 31,22) Currency Unit = Ghanaian Cedis Cedis 1 = USS.12 US$l.OO = Cedis 899 FISCAL Y Eh January 1 -- December 3 1 APL CAS CDF CFAA CLA CLAMP CPAR CPPR DFID DPP EAP EIA EPA E M ERR EU FGD FINMI FMR GBSA GEF GLSS GOG GPI GPN GPP GPS GTZ IDA KNUST LAC LAP LAPSC LAPU LIS LTR MLF NGO NIRP NLP NLVB NPP NPV NFWP OASL oss PAD PPMED RSA SIL SOE SPN TCPD UNDB ABBREVIATIONS AND ACRONYMS Adjustable Program Loan Country Assistance Strategy Comprehensive Development Framework Country Financial Accountability Assessment Customary Land Authority Community Land Awareness and Mobilization Program Country Procurement Assessment Report Country Portfolio Performance Review Department for Intemational Development, UK Detail Procurement Plan Environmental Action Plan Environmental Impact Assessment Environmental Protection Agency Environmental Resource Management Project Economic Rate of Return European Union Focus Group Discussions Financial Management Initiative Financial Monitoring Report Gazzetment of Globally Significant Biodiversity Area Global Environment Facility Ghana Living Standard Survey Govemment of Ghana Ghana Planning Institute General Procurement Notice Global Procurement Plan Global Positioning System German Technical Cooperation Intemational Development Association Kwame Nlaumah University of Science and Technology Local Advisory Committee Ghana Land Administration Project Land Administration Project Steering Committee Land Administration Program Unit Land Information System Land Title Registry Ministry of Lands and Forestry Non Governmental Organization National Institutional Renewal Project National Land Policy National Land Valuation Board National Patriotic Party Net Present Value Natural Resources Management Project Office of Administrator of Stool Lands One-Stop-Shop Service Project Appraisal Document Policy, Planning, Monitoring and Evaluation Department of MLF Rapid Social Assessment Sector Investment Loan Statement of Expenses Specific Procurement Notice Town and Country Planning Department United Nations Development Business Vice President: Country Director: Sector Manager: Task Team Leader: Callisto E. Madavo Mats Karlsson Joseph Baah-Dwomoh Solomon Bekure

3 FOR OFFICLAL USE ONLY GHANA LAND ADMINISTRATION PROJECT CONTENTS A. Project Development Objective 1. Project development objective 2. Key performance indicators Page 3 3 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2. Main sector issues and Government strategy 3. Sector issues to be addressed by the project and strategic choices C. Project Description Summary 1. Project components 2. Key policy and institutional reforms supported by the project 3. Benefits and target population 4. Institutional and implementation arrangements D, Project Rationale 1, Project alternatives considered and reasons for rejection 2. Major related projects financed by the Bank and/or other development agencies 3. Lessons leamed and reflected in the project design 4. Indications of borrower commitment and ownership 5. Value added of Bank support in this project E. Summary Project Analysis 1. Economic 2. Financial 3. Technical 4. Institutional 5. Environmental 6. Social 7. Safeguard Policies F. Sustainability and Risks 1. Sustainability 2. Critical risks 3 32 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization.

4 3. Possible controversial aspects 33 G. Main Loan Conditions 1. Effectiveness Condition 2. Other H. Readiness for Implementation I. Compliance with Bank Policies Annexes Annex 1: Annex 2: Annex 3: Annex 4: Annex 5: Annex 6: Annex 7: Annex 8: Annex 9: Project Design Summary Detailed Project Description Estimated Project Costs Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary Financial Summary for Revenue-Earning Project Entities, or Financial Summary (A) Procurement Arrangements (B) Financial Management and Disbursement Arrangements Project Processing Schedule Documents in the Project File Statement of Loans and Credits Annex 1: Country at a Glance Annex 1 1 : Environmental Impact Assessment Annex 12: Social Assessment Annex 13: Statement o f the Government of the Republic of Ghana on Land Policy MAW) IBRD No

5 GHANA Land Administration Project Project Appraisal Document Africa Regional Office AFTS4 Team Leader: Solomon Bekure r Manager: Joseph Baah-Dwomoh Sector(s): General agriculture, fishing and forestry sector Country Director: Mats Karlsson (1%) Project ID: PO Theme(s): Land management (P) [ ]Loan [XI Credit [ ]Grant [ ]Guarantee [ ]Other: For Loans/Credits/Others: Amount (US$m): 2.5 Proposed Terms (IDA): Standard Credit I IDA CANADA: CANADIAN INTERNATIONAL DEVELOPMENT AGENCY (CIDA) UK: BRITISH DEPARTMENT FOR INTERNATIONAL DEVELOPMENT (DFID) GERMANY: GERMAN TECHNICAL ASSISTANCE CORPORATION (GTZ) GERMANY: KREDITANSTALT FUR WIEDERAUFBAU (UW) NORDIC DEVELOPMENT FUND Total:

6 ~ Borrower: REPUBLIC OF GHANA Responsible agency: MINISTRY OF LANDS AND FORESTRY Address: P.. Box M. 212 Accra Ghana Contact Person: Mr. Sulemana Mahama Project Coordinator Tel: (233) Fax: (233) SmahamaaMlf-Gh.Com Estimated Disbursements ( Bank FY/US$m): Project implementation period: Expected effectiveness date: Expected closing date:

7 A. Project Development Objective 1. Project development objective: (see Annex 1) The government of Ghana issued its Land Policy in June This was subsequently amended by the current National Patriotic Party administration in 22 as summarized in Annex 13. The long-term goal of the Government s land policy is to stimulate economic development, reduce poverty and promote social stability by improving security of 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 of 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 of this long-term land administration reform. A major feature of this first phase LAP is its role in providing an enabling environment for exploration, testing and learning by doing. The need for flexibility among and within activities i s emphasized. The specific objective of the project is 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 of land titling, registration, land use 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 of the project s development objectives would be monitored through a set of 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 of land litigation cases in courts of pilot land titling and registration areas; (d) increased investment in the property sector as security for land owners and users is enhanced and mortgage financing is 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 of at least 5 customary land administration units; (b) one-stop-shop centers established in at least three regions: (c) at least 1 NGOs involved in promoting local level land administration and land management; (d) titling and registration of 3, parcels of urban land to individuals and at least 8 allodial titles to stools, skins, tendambas clans and families; and (e) reduction in the 35, land cases in courts. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: 2185 Date of latest CAS discussion: March 3, 2 The proposed project is consistent with the Bank s Ghana CAS and the Ghana Poverty Reduction Strategy (GPRS), discussed by the Board on May 8,23. Both the CAS and the GPRS aim at reduction in the incidence o f poverty in both rural and urban areas and strengthened capabilities of the poor and vulnerable to earn income. The project would address this by facilitating access to land and improving -3-

8 security of rights and interests in land. The legal, policy and institutional reforms envisaged in the project are in line with the CAS goals of (i) promoting decentralized and efficient delivery of key services; (ii) redefining the role of 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, using it as vehicle to make progress on important issues such as legal reform, governance/cormption and financial management. The project will support the attainment of these objectives and those of 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 of tenure to land and peaceful possession, facilitating investments in housing, industry, agriculture and services sectors of the economy that will generate employment and economic growth. Second, reforming and modernizing public sector administration and management of 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 of civil society and the private sector would check excesses of public sector management, reduce land transaction costs and promote transparency in the administration and management of both public and private land and self help initiatives for growth and development, building on the cultural heritage of Ghana. 2. Main sector issues and Government strategy: Background The different types of land tenure and the land administration system prevailing in Ghana today evolved over time from the interplay of the sociopolitical organizations of the various tribes, clans and families through trade, wars and incorporation; the advent of colonial rule and subsequent introduction of tree crop agriculture as well as commercial exploitation of timber and mineral resources; post independence politics; and urbanization. Differences in natural 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 of 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 of these entities had guaranteed access to the usufruct right of 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 of people under their control through incorporation of 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 of 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 during the first half of the 2th century. The demand for land and labor for growing cash crops such as cocoa and oil palm and exploitation of mineral resources gave rise to chiefs allocating land concessions to prospectors and migrant farmers -4-

9 under long-term lease arrangement or even outright sale of land. The colonial policy of indirect rule vested in chiefs more exclusive administrative power over their people, removing social restraint over their authority inherent in the indigenous system of authority, allowing some chiefs to pursue private gains at the expense of communal interest and progress. With commercialization of land for agricultural and urban development, chiefs and heads of clans and families became more than mere trustees on behalf of their communities, increasingly allowing them the right to freely dispose of unallocated land. This emphasized the relationship between some of the chiefs and members of their communities into one approximating that between landlords and tenants. Some chiefs and heads of clan and families became unscrupulous and gave out rights on the same land to two or more parties. In urban 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 of rights on the same parcel of land to multiple parties. These malpractices have given rise to lengthy litigation clogging the courts. The Greater Accra region alone is reported to have over 15, land disputes pending court adjudication. Colonial land policy also introduced the notion of eminent domain, providing for compulsory acquisition of 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 of 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 of compensation arising out of compulsory acquisition of land by the state in the 196s are still outstanding. In some instances, while very large tracts of 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 of the land owners. Such grievances have created a great deal of 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 of 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 of Stool Lands were created to administer these lands and their revenues. The operations o f these institutions and their bureaucracies have been cause of dissatisfaction and frustration by all parties having to deal with them. The granting of land use rights, their registration and the administration of 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 of land revenues given to district assemblies. Members of the communities are concerned that there is no legal requirement for chiefs to share the revenue they receive with community members. In general, there is 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 of 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 in land and other sectors of the economy. The Government s Land Policy Overtime, as land became more scarce, indigenous arrangements under which individual members of the lineage enjoyed general rights o f access to land have been rendered untenable. Indigenous tenancies have -5-

10 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 of 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 of legislation to deal with specific problems in an ad hoc basis, not forming part of a comprehensive policy of land acquisition or land use administration. It was the realization of the need for more coherent long-term land policy and its effective administration that instigated GOG to develop a national land policy in 1999, as amended in 22, and seek ways of implementing it. The specific objectives of GOG s land policy are to: (a) harmonize statute and customary laws to facilitate equitable access to and enhance security of 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 of 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 of land encroachment, unapproved development schemes, multiple or illegal land sales, undue land speculation and land racketeering. A number of 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 is 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 in recent years, particularly where rural areas are converted to urban house plots. Women and poorer members of the group have been shown to often lose land rights in this process. The absence of development of a large number of large scale commercial farms in Ghana has also helped check inequities in land distribution. Inadeauate Policv and Legal Framework: Land administration in Ghana is govemed by both customary and enacted legislation. Courts have also ruled on customary subjects resulting in a body of 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 of these laws and regulations conflict with one another and some are outdated andor irrelevant. Their existence is used often to confuse issues, delay implementation of programs and prolong land litigation in courts. While lack of a comprehensive land policy framework that has bedeviled land administration is addressed by the National Land Policy, it has not been implemented. In many areas, the Policy provides broad strokes which now need elaboration. Inadequate security of land tenure due to conflicts of interest between and within land-owning groups and the state, and the slow disposal of land cases by the courts adds to land transaction costs and frustrates potential indigenous and foreign investors. Compulsory acquisition by the state of large tracts of lands that have not been fully utilized and for which payment of compensation has been delayed has created intractable problems. This policy has left landowners almost landless, denied their source of 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 of land in the northern part of the country has unintentionally heightened disputes among landowners and land -6-

11 authorities as different interest groups struggle to capture the returned land under their own authority. An added dimension is the confusion generated concerning the amount of compensation to be paid for lands developed for the communities' direct benefit, such as schools and clinics. Lack of consultation with land owners and chiefs in decision making for land allocation, acquisition, management, utilization and development of 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 of the country land is communally owned, held in trust for the community or group by a stool or skin as symbol of traditional authority or by a family. Stool or skin lands are a feature of 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 is a small percentage of vested lands whose administration are a form of split ownership between the state and the allodial owners. Scattered all over Ghana are also a number of social groups that do not recognize a stool or skin as symbolizing private communal land ownership. In such instances, the traditional arrangement is normally that of vesting land ownership in the clan, family or individual. This practice is prevalent in the Volta Region and in some traditional areas in other regions. The state has responded to this situation by creating a number of land sector agencies with fragmented land administration responsibilities. The main agencies are the: (i) Lands Commission, (ii) NationaVRegional House of Chiefs; (iii) office of Administrator of Stool Lands; (iv) Land Valuation Board; (v) Survey Department; (vi) Land Title Registry; and (vii) Department of 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 of 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 is no systematic cadastral mapping, registration and titling program in Ghana. Indeterminate boundaries of stool, skin and family lands resulting from lack of reliable property maps andor plans and the use of old inaccurate boundary maps, lead to protracted litigation and freezing of land for development. Frequent encroachments on both public and private lands, multiple-sales of residential parcels, unapproved development schemes, resulting in haphazard developments, environmental degradation and frequent violent confrontations between and among opposing claimants. The inefficiency of the land markets is manifested by the unmet demand, in the urban market, for housing, industrial and commercial land because of shortage of secure unencumbered lands. This shortage has led to high urban land prices and subsequently influenced the development of 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-

12 , 3. Sector issues to be addressed by the project and strategic choices: The proposed project would address all the issues raised in the Land Policy Statement in an environment of 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 of decentralized and efficient land administration services. The system for storage and retrieval of land records will be overhauled and improved to enable easy access to public, traditional and private interests via digital search. Partnership with traditional authorities in land administration has been very limited. Recognizing that close to 8% of the land area of Ghana is 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 of community members on whose behalf they act. The project will explore with traditional authorities appropriate divisions of 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% of 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 in the areas from where the revenue originated. The acquisition of land for development projects has also been a problem. The project would bring land administration services to the doorsteps of the populace. It would work with selected district assemblies and the Town and Country Planning Department to help them improve the delivery of land use planning services and ensuring adherence to planned development of human settlements. The capacity of the Ministry of Land and Forestry (MLF) to formulate policies and monitor and evaluate the performance of the land sector and the impact of land policies and development efforts would be strengthened. Public awareness and education programs would be launched to inform the populace of developments and how they may improve their land security. The project will also adopt a participatory approach wherever possible. Consultation with and involvement of the public will be specifically sought in the 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 of land records to ensure these are useable by clients. The project will explore the establishment of local land fora as a place where local concerns and interests may be expressed and discussed. These would be first developed in pilot areas. -8-

13 C. Project Description Summary 1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown): The Ghana Land Administration Project will comprise the following components: Harmonizing Land Policy and Legislative Framework I.19.9 Institutional Reform & Development Improving Land Titling, Registration, Valuation and Information Systems Project Management, Monitoring and evaluation PPF Total Project Costi s1 I I 2.5 I 1. Total Financing Required I 55.5 I 1. I 2.5 I 1. Component I: Harmonizing Land Policy and Regulatory Framework for Sustainable Land Administration Revisions of policies, laws and regulations for an effective and efficient land administration Strengthening o f civil courts to expedite resolution of land cases and developing alternative land dispute resolution mechanisms Inventory of all acquired state lands and determination of outstanding compensation Policy studies: i. Land tenure registration to formulate government policy on what rights will be registered on land titles; ii. Divestiture of vested lands; iii. Finance and fees structure of land administration system to formulate government policies on fees and taxes for registration of land transactions; iv. Gender study and analysis; and v. Assessment o f current land administration services provided by customary land authorities, Land Policy development process Component 11: Institutional Reform and Development 2.1 Restructuring of 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 administration and management training and research institutions Component I11 Improving Land Titling, Registration, Valuation and Information Systems 3.1 Developing the cadastre and land information systems; 3.2 Cadastral mapping;

14 Establishing model land titling and registration offices; Improving deed and title registration; Land use planning and management Establishing land valuation data base; Piloting demarcation and registration of allodial land boundaries; and Piloting systematic land titling 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 institutional reforms supported by the project: One o f the key policy issues supported by the project is the revision of the existing plethora of 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,) pending land cases clogging the courts and to avoid the accumulation o f pending cases in the future. In addition, alternative land dispute resolution mechanisms with active participation of communities will be encouraged and facilitated under the project. A major resentment of landowners towards successive governments is the issue of lands compulsorily acquired by the state for some of 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 of state lands will be made to determine their status to serve as a basis for decisions for compensation and return of land to their original owners. Strong partnership will be developed with traditional authorities for effective and participatory land administration and management and for instituting alternative land dispute resolution mechanisms. There is 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) of 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 of the Kumasi Traditional Council and Gbawe family lands in Accra, but would be expanded to at least 5 CLS. This will also promote and strengthen decentralized land administration. The land titling, registration and valuation program will address the issue of insecurity by systematic ascertaining of interests in land on a pilot basis. It is acknowledged that land titling would not be appropriate in every case and may not deliver the intended benefits. Formal land titling may be expensive for the rural population and difficult to justify in every part of 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 involving titling 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-

15 The institutional reform under the project will comprise revising the mandates and roles of the six public land agencies, streamlining and restructuring them, if possible, under one land administration umbrella and decentralizing their operation for delivery of timely and efficient land administration services. Modernizing of operations with improved use of technology, record systems and information management will be an integral aspect of the institutional reform. Integrated user-friendly one-stop-shop centers will be established, initially in Accra and Kumasi and subsequently at regional and distinct levels in order to make land administration services more accessible, efficient and responsive to the community. Concomitant with this effort, the project will facilitate the participation of the private sector in cadastral mapping and land titling and valuation for promoting efficient land markets. Professional associations of chartered surveyors, land valuers and real estate agents would be strengthened to build the capacity of the private sector and to enhance the skills and promote ethical professional conduct of their membership. The production of 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 of the project. 3. Benefits and target population: The legislative reviews that will lead to consolidating the plethora of 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 of Ghana. The demarcation of boundaries of allodial land owners and titling and registration of land interests will increase the security of land tenure for the communities in the pilot areas selected for systematic land titling. Specific beneficiaries of 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 high costs and freezing of lands from development. The project would promote the development of local conflict resolution mechanisms. The mapping of traditional land boundaries and issuing of land titles to cover such holdings, would facilitate the resolution of boundary conflicts. The courts would be strengthened to expedite the resolution of the large number of land cases clogging the court system. In addition, training would be provided to traditional owners in basic land administration and records management. Partnerships developed in the course of the project implementation would be sustained with assistance and encouragement to develop land offices of traditional authorities such as the Asantehene s Land Secretariat in Kumasi and the land administration of the Gbawe family in Greater Accra. Vulnerable GrouDs: : Several areas of the forest belt and the transitional zone are settled by poor farmers who are not native to their areas of operation under various forms of tenancy arrangements with their hosts. Due to the undocumented nature of 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 of their farms. In all areas of Ghana women constitute a large percentage of the farming population. However, their land rights are not clearly defined and documented and many stand the risk of 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 of 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

16 would also seek to institute legislative protection of the rights of individuals, very often poor farmers who stand to be evicted through acquisition of land by the state or local government or through urbanization. Traditional authorities will be assisted to devise formula which ensure that poorer members of the community are not made landless when rural lands are converted into urban housing plots. Land litigation and the threat of violence on disputed lands discourage domestic and international investors who seek land for development. The provision of secure titles to land would facilitate orderly and legal acquisition of 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 of procedures and reduction in transaction costs will substantially widen the range of beneficiaries. Special attention would be paid to issues of land rights in the north of the country where the rural poor constitute the larger percentage of the population National and Local Governments : It is expected that the project will generate incremental revenue to both national and local governments. These will accrue from registration fees, estate property tax, capital gains tax and stamp duty. The emphasis is not so much on increased taxing mechanisms but equity in the application of existing ones. Thus, increased revenue will accrue from (a) an increase in the proportion of 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 registration and more objective and improved methods of land valuation which the project will promote. Another benefit to all levels of government will be the clearing of court cases much faster and removal of 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 is little consultation and coordination between land agencies and the District Assemblies. Assemblies will benefit by the decentralization of 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 of 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 streamlining their functions and fostering cooperative production of 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 of 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 of land disputes over different interests in the same parcel of 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 of the project activities in the form of 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 -12-

17 strengthened through training and support to their professional associations. These activities further strengthen the role of the private sector in the economy. Central Government and Securitv Apencies: Land disputes often degenerate into violent confrontations that cause losses of life and property, disrupting normal socioeconomic activities. Considerable time, energy and cost is 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 of land related disturbances. The judicial system will also benefit as the project would provide resources to expedite settlement of land cases and introduce alternative dispute resolution mechanisms 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 of 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. Institutional and implementation arrangements: Proiect Management and Coordination. The project would be implemented by MLF, the land sector public agencies, the Ministry of Justice, traditional councils, academic and research institutions, NGOs and the private sector. However, the project s overall management will be the responsibility of the Chief Director (CD) of MLF. The Land Administration Programs Unit (LAPU), the secretariat of the project, will be located in the CD s office and will report directly to the CD. A Project Coordinator will head LAPU and will be responsible for coordinating and monitoring the day to day activities of the project under the guidance of the CD. More specifically, the LAPU 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. LAPU would be responsible for organizing training, workshops and seminars and implementation of the communication strategy under the project. The detailed terms of reference of LAPU and its staff are provided in the PIM. The heads of all IAs will be responsible for the implementation of 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 of the Finance and Administration Department, MLF. IAs will finance operating expenses and procurement o f small-ticket items on the basis of 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 of the PPMED, MLF, monitoring of implementation progress will be the responsibility of IAs with guidance and oversight by PPMED. Key monitoring indicators will be agreed upon and reporting formats developed jointly by PPMED and IAs that will utilize the monitoring information as management tools to improve upon their own performance. The IAs will submit their monitoring reports to PPMED at agreed intervals. PPMED will be responsible for compiling monitoring reports of 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 consultation with 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. -13-

18 Proiect Oversight: MLF will be assisted in the implementation of the project by two oversight committees. A Lands Policy Steering Committee (LPSC) that will provide guidance on the policy and management aspects of the project and a Lands Sector Technical Committee (LSTC) that will provide guidance and supervision on the technical aspects of the project. Members of the LPSC will be the principal stakeholders and prominent professionals in Ghana s land policy scene; i.e. :(i) Minister, MLF (Chairperson); Deputy Ministers of Ministry of: (ii) MLF (Lands); (iii) Justice; (iv) Local Government 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 of Parliament on Lands; (xi) Representative, National House of Chiefs; (xii) Renowned land tenure scholar; (xiii) Renowned jurist; (xiv) President, Ghana Bar Association; (xv) representative of land sector NGOs; (xvi) Representative of Academic or Research Institutions; and (xvii) Head of the 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 of 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 of the ministries of Information and Finance and Economic Planning and representative of land sector NGOs and the Bar Association. The Project Coordinator will be the Secretary of the LSTC. Staffiw of LAPU: LAPU will be manned by six professionals to enable it coordinate implementation of the project, provide facilitating services for project IAs and follow-up on pending issues These will be: (i) The Project Coordinator; (ii) Legal Advisor; (iii) Social Science Specialist; (iv) Public Administration Specialist; (v) Communications Specialist; and (vi) Internationally Recruited Project Management Advisor, The job description of these specialists will be included in the PIM. The staffing of the LAPU with these specialists will be a condition of disbursement of 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 IAs (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 implementing agencies and to 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 monitoring and evaluation work are carried out properly and reported 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

19 D. Project Rationale 1. Project alternatives considered and reasons for rejection: Key design alternatives contemplated for the project were whether: (i) the project would be financed 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 of land administration via titling, records management and promoting private participation in cadastral surveys and titling, etc. (iii) titling and registration of 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 of the whole country would be attempted. FinancinP the Project Through a Learning or Adaptable Prowam Loan (LIL, APL): Although the project is envisaged as the first phase of a long-term program lasting over 15 or more years, a sector investment loan (SIL) was deemed more appropriate as the focus of the project would be on the development of 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 is ripe for the broad reform approach as the sector problems are recognized in 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 resolved without the streamlining and harmonization of 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 of all stakeholders and it would not be difficult to commit GOG to this broad approach. Rural vs. Urban Lands. The selection of the broad policy, legislative and institutional reform approach requires joint consideration of rural and urban land issues. Furthermore, many urban areas in the southern part of the country are sprawling fast into rural lands. Dealing with both rural and urban issues simultaneously would ensure the emergence of consistent policies and legislation that would protect the different interests in land and the development of procedures for cadastral mapping, systematic titling and registration of 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 of 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 is a very slow and expensive process. The systematic land registration approach involves mapping and registering land titles simultaneously in a contiguous manner covering lands sub-district by sub-district, resolving boundary issues of 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 of 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 in both rural and urban situations, Very useful lessons would emerge from the implementation of these pilots with respect to participation - 15-

20 of 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). Sector Issue Ban k-financed 1. Rehabilitation and improvement of essential infrastructure and capacity development of District Assemblies; Institutional reform of housing sector parastatals; Upgrading of urban infrastructure in Tema and Kumasi; and line of credit to establish a pilot housing finance sub-project. Project Urban I1 - closed June 1999 Latest Supervision (PSR) Ratings (Bank-finance1 projects only) Implementation Progress (IP) S Development Objective (DO) S 2. Institutional development to support the implementation of the Government's Environmental Action Plan (EAP). 3. Establish the institutional and operational framework for sustainable, participatory management of Ghana's land and forest resources. 4. Strengthening municipal management to ensure the sustainable delivery of adequate urban infrastructure and services, particularly in under-served urban towns; and Urban infrastructure rehabilitation and construction. 3ther development agencies 1 Capacity building for DAs 2. Civil service reform for the entire public sector for performance improvement 3. Land tenure studies in collaboration with French speaking West African countries (IIED) 4. Land use planning study '/DO Ratings: HS (Highly Satisfactory), S ( 3hana Environmental Resourcc Management Project (GERMP). closed 1999 Vatural Resource Management Program Phase I - ongoing Jrban 5 Project funded by IDA md Nordic Development Fund. March 2 - ongoing 3U DAs Capacity building xoject - ongoing 3FID Civil Service Reform?roject - ongoing 3FID and GTZ Program on Land Tenure Research - mgoing ;A atisfactory), U (Unsatisfactory), ~ HU (Highly Unsatisfa ory) S S U - 16-

21 3. Lessons learned and reflected in the project design: The World Bank has assisted many land reform and titling projects since the formulation of its "Land Reform Policy Paper" in 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 of a broader policy dialogue rather than as a string of narrowly oriented technical interventions. Experience shows that a lack of consensus on the broader subject of land policy has often compromised the effect on development of specific interventions such as land titling. Moreover, the social and political sensitivity of 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 is 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 of rural development. Otherwise, imperfections in other factor markets may undermine or even eliminate the advantages from possession of title. Third, there is a rediscovery of the value of 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 of 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 is need to encourage such stakeholder participation to obtain their input in land dispute resolution, titling and registration of 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 of map production. The role of the private sector will be expanded to include not only surveyors but also solicitors and private contractors and NGOs in decentralization of land management and capacity development in customary land administration. The proposed project will facilitate this and build the capacity of the private sector through the training institutions offering diploma and degree courses in surveying and land administration and management and through professional associations of chartered surveyors, land valuers and real estate agents. 4. Indications of borrower commitment and ownership: Improving land administration has been the subject of 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 of studies were carried out (including review of the Survey Department, records storage and management, statistical review of 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, properties were re-evaluated in Kumasi, Tamale, and Sekondi-Takoradi and about 1,2 land titles were issued in Accra and Kumasi. The Urban V Project includes a $.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. In his inaugural speech in 21, the President of the Republic of Ghana mentioned facilitating access to land for economic development as one of the thrusts of his administration. GOG has subsequently promised to return the administration and management of vested lands to its allodial owners and pay outstanding compensation which has been the source of discontent among affected customary land - 17-

22 owners. GOG formed a Land Sector Technical Committee comprising representatives from the land sector agencies that actively participated in the preparation of the project. All of 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 of the project and their active participation in the implementation of its components. 5. Value added of Bank support in this project: The value of 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 of 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 of projects covering forestry & wildlife, environment, agriculture and water resources. It has established a strong relationship with the key Government agencies, the Ministries of 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 of the investments. In addition, improving the land administration regime to ensure security of tenure in land for development fulfills the Bank s role in enhancing growth and reducing poverty in Ghana. E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8) 1. Economic (see Annex 4): NPV=US$ million; ERR = 39 % (see Annex 4) Cost benefit 2 Cost effectiveness Other (specify) The major expected benefits of the Ghana Land Administration Project are: i. Improved land tenure security: The project will reduce land security risks of land grabbing, encroachment, land disputes, and expropriation. Lack of tenure security has been identified as one of major problems which contributes to poverty and inhibits economic and social development Around 3, individual urban land titles and 5 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 of titling opportunities. ii. Increased land-related investment: Investments on land, from both domestic and international sources, will increase as a result of increased confidence of investors towards a more secure, stable and predictable investment environment and improved access to formal financial credit. iii. Improved efficiency of land resource use: Formation of rural land markets and improvements of urban land market will result in a more efficient use of 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. -18-

23 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 in the land administration sector: Through ensuring that the needs of poorer members of the community and those disadvantaged by discriminatory practices or conditions are attended to in building improved systems, the project will enhance the poverty focus of land administration development. Data and methodology: The data used for the economic analysis is the Ghana Living Standard Survey (GLSS), conducted by the Ghana Statistical Service which covered neatly 6, households from all 1 administrative regions of the nation. Based on the GLSS household and plot-level data, linear regression was used to analyze the effect of titling on land prices and to estimate the economic rate of return (ERR) to the investment in the project. Land prices are used as a proxy for economic value of 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 of all the benefits of 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 of the Accra, other urban, rural coastal, rural forest, and rural savanna). Regional dummies were also added to control the difference among the 1 administrative regions. The total plot sample size used in the econometric analysis was 3,45. Results: The overall economic rate of return of holding a land title is estimated as 39 percent, and the coefficient of title is statistically significant at 99 percent confidence level and the result is robust to different specifications. This means that the value of a plot with a title will be 39 percent higher than that of 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 of 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 3-34 percent. Increase in the value of holdings is not only important for investors but also for the majority of households whose only capital asset is their land. 2. Financial (see Annex 4 and Annex 5): NPV=US$7.42 million; FRR = 17 % (see Annex 4) Financial Analysis The purpose o f conducting a financial analysis is 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 of credit from formal financial institutions by using secure titles as collateral. As a result of 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-

24 acquiring the title would be higher than the cost of the title. In most cases, land titling projects adopt a so-called systematic adjudication method to undertake land tilting in large volumes. To ensure a high participation of landholders on a voluntary basis, the cost of land titling has been kept at a level significantly lower than the cost of producing a title. The affordability of the poorest landholders is one major criteria of setting an appropriate registration fee For example, in the case of Thailand, landholders are charged less than US$5 per title, compared to the actual cost of US$36 per title. In the case o f Indonesia, landholders are charged about US$2 per title while the actual cost is 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 is recovered by charging economic registration and other fees on subsequent land transactions. This arrangement has worked well in many countries. It is expected that a similar arrangement would be introduced in Ghana. Current estimates show that the real cost per title is around US$35. Based on the estimated costs of titling related components and the total number titles that will be issued under the project, the average cost per title is about US$28.3. However, this average cost does not include the Government s future management costs associated with each title. To calculate the actual cost of each title, it is assumed that (i) government will spend about three percent of the current cost each year after the project implementation period to ensure each title is still valid and (ii) the discount rate is 1 percent. Based on these two assumptions, the actual total cost of each title is 28.3+(28.3x.2)/.1= Based on this estimate and given that the proposed 3, titles to be issued by the project will be concentrated in urban areas, a fee about US$lO per title would be reasonable. There are indications that the current actual cost of sporadic titling can be as much as US$3 per parcel. Financial benefits and costs for the Government: The Government will receive incremental revenues ( financial benefits) from the following sources: i. initial registration fee (US1 per title); ii. derivative registration fee (Le., administrative fees collected by land commission, land valuation board, land registration services, and surveying department, etc.). Based on information supplied by the Government, the total amount of different fees for sporadic registration accounts for two and half percent of the land value; stamp tax (to land buyer) of two percent of the land value; and iv. capital gains tax (to land seller) which is 1 percent of amount of value increased The economic analysis of the project shows that nationwide, land values will increase by about 4 percent due to land titling, and given that urban area will generally enjoy a higher return rate than the national average, it is assumed that urban land values would increase by about 5 percent in urban areas. 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 maintaining the benefits of titling beyond the end of the project (two percent of total project costs). However, given the proposed project is the first phase of 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 of 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 of the long-term program. The same logic can be applied to the activities of land use planning (US7 million soft loan from Nordic Development Fund) as well as activities of strengthening land administration systems (USS8.6 million, under the IDA credit). Costs of these activities should be either omitted or prorated according to certain criteria. Based on the nature of the - 2 -

25 different investment, it was decided to include the following costs in the financial analysis: 1 percent of investment directly related to titling; 5 percent of the cost of strengthening administration and management system; 5 percent of investment related to development of regulatory framework and policy studies; and 33 percent of the cost of office construction; and finally, 2 percent of investment related to land use planning. A sensitivity test shows that, even if all IDA investment included in the calculation, without changing other assumptions, the FRR is still 13 percent with NPV of US$3.7 million. The counterpart funding o f GOG which is 9 percent in the form of duties and taxes, is also excluded, because this is not a real expenditure as it is cost to the project, but income for the treasury. Fiscal Impact: The analysis shows that the financial rate of return (FRR) is about 17 percent and net present value (NPV) is US$7.42 million (at a discount factor.1). The fiscal impact of the proposed project should be. neutral in the short-run given that less than 15 percent of the total project cost will be financed by the GOG in the form of duty and tax exemption. In the long-run, it is expected that the fiscal impact of 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 of the financial analysis. A sensitivity analysis was conducted to test the financial robustness of the proposed project regarding the changes of these parameters. The resulting FRR ranged from 13 percent to 2 percent. 3. Technical: The project will adopt streamlined methods of cadastral survey, bearing in mind efficiencies and cost savings possible with the use of a combination of old and new technologies {Global positioning system (GPS), rectified aerial photography, orthomapping, satellite imagery and total station}. Most of these technologies are known and are already being used by the Survey Department and the private sector. However, shortage of equipment to expand this work has been a major problem which will be addressed by the project. The issuance of 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 is important that computerized records and land information system would be legally recognized in Ghana as official records. This will be part of the land administration policy reform sought under the project. 4. Institutional: The multiplicity of public sector agencies in land administration will 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 of land administration with District Assemblies and land owning traditional authorities as central ministries and agencies are known to desist devolution of authority to local levels. Strong commitment and support of the Minister of 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 of the project with all the public land sector agencies implementing its various components. Other agencies outside MLF participating in the implementation of the project are the Ministry of Justice, the House of Chiefs, the universities, NGOs, professional associations such as Ghana Institute of Surveyors, and the Ghana Institute of Planners and private firms, Streamlining the activities of the public land sector agencies, restructuring and bringing them under one umbrella to provide a one-stop shop for land administration services has been recommended. The details -21 -

26 of how to achieve this would be studied and implemented in the first two years of project implementation. The types of training required to upgrade the skills of the staff of these agencies as well as personnel of 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 of the project components has been identified during project preparation and will be executed largely with the support of bilateral donors. 4.2 Project management: Project Coordination: Because of its breadth and cross-agency involvement, the project s overall management will be exercised through the Office of the Chief Director, MLF. A Land Administration Programs Unit (LAPU) has been set-up within this office. The head of this unit will be the Project Coordinator, who will be designated to manage the day to day activities of the project under the guidance of the Chief Director, MLF. The financial and procurement management capacity of 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. LAPU has no experience in managing projects. Initially, technical assistance will be provided under the project to support it in project management, procurement, monitoring, implementation of 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 A consultant report in 1997 and a Country Portfolio Performance Review (CPPR) in 1998 identified the lack of a comprehensive legal framework and a uniform and codified procurement procedures and regulations as well as weak capacity of procurement staff as the key problem areas of public procurement governance in Ghana. A draft Public Procurement Act was prepared in mid-21 with assistance under the IDA-financed Public Finance Management Technical Assistance Project and is awaiting Parliamentary approval. It is expected that the Act will receive Parliamentary approval for the new procurement code to come into effect in 23. For donor-financed projects, for works and goods contracts below ICB thresholds and for selection of consultants, most entities follow the Bank s guidelines as the official procurement procedure. Procurement under the project would be the responsibility of the Finance and Administration Department of MLF. Procurement capacity in this department is inadequate. This will be strengthened with the identification and training of capable and trainable mainstreamed staff in the MLF. This action will be a follow up of the recommendation contained in the PAD of the Northern Savanna Biodiversity Conservation Project to create a procurement unit and staff it with three officers. To minimize procurement risks in the absence of a national procurement code, the procurement procedures to be followed are outlined in Annex 6 and will be fully described in the Project Implementation Manual (PIM). 4.4 Financial management issues: A country financial accountability assessment (CFAA) was conducted for Ghana in 22. It identified the main accountability issue as: (a) fragmented legal framework and lack of enforcement of 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 of the Ministry o 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

27 system and reporting requirements under NRMP and the NSBCP. The computerization of 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 of recording correctly all transactions undertaken by the project. The system also assures adequacy of maintenance of underlying records or support documents which form the basis for the preparation of 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 of MLF is headed by a qualified accountant, and assisted by four other accounting staff with varying degrees of accounting qualifications. All the staff have been trained in World Bank disbursement procedures and performance under the current projects they are servicing is satisfactory. The internal audit functions will be strengthened and staff given further training, The financial arrangements agreed to safeguard the fiduciary requirements are given in Annex 6 and are reflected in the 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 is 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 is borne out by several land administration projects the Bank has financed in different parts of 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 in improved 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 of forest and wildlife reserves and gazzetment of globally significant biodiversity areas (GSBAs) is 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 registering the holdings of communities and individuals surrounding the reserves and GSBAs, thus rendering encroachment of these reserves difficult and facilitating the maintenance and ensuring the sustainability of their environmental integrity. The production of 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 of Science and Technology and selected customary land secretariats. No involuntary acquisition of land is foreseen. However, while lands belonging to the university and the traditional authorities are free of any squatters, the proposed construction site for headquarters building of the public sector agencies in Accra is partially occupied by squatters. In case 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 of 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 EMP 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 is earmarked for these assessments and implementing the

28 mitigation plans. 5.3 For Category A and B projects, timeline and status of EA: Date of receipt of final draft: 2/5/23 EA start-up date: Date of first EA draft: Expected date of final draft: August, 21 October, 22 February How have stakeholders been consulted at the stage of (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 of 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 invited to and participated. 5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? Overall responsibility for the implementation of the EA and RPF is with the Ministry of Lands and Forestry. However, the Environmental Protection Agency (EPA) would take responsibility for compliance monitoring of 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 of proposals in the EA and ensuring compliance of standards. The Ministry of Lands and Forestry, working together with the Ministries of Finance and Economic Planning, and Manpower Development and Social Welfare, would be responsible for implementation of 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 implemented prior 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 of the project. The RSA undertook a disaggregated analysis of the stakeholders' interests, the perceived positive and potential negative impacts or risks of the project, and possible mitigation measures as summarized in a matrix form in Annex 13. The following are the key social issues identified: Demand for Project Interventions: The customary trustees of land and the communitylfamily elders are willing to pursue demarcation of properties and assist in negotiating and settling boundary disputes, using customary arbitration forms and mechanisms for conflict resolution. There is an even stronger demand for the project in the urban and peri-urban areas (Accra, Sekondi-Takoradi, Kumasi and Tamale). This can be attributed to the large number of disputes associated with multiple sales of 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 of perceived oppressive legislation that has contributed to the usurpation of powers vested in customary forms of governance. In both urban and rural areas the project is seen as addressing important social and economic issues,

29 Divesting and Compensation. The government s compulsory acquisitiodvesting of private lands without any consultation with or approval by customary authorities, non-implementation of proper resettlement of displaced persons and continued non-payment of just compensation have created a strong sense of 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 is 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 of the country and facilitate implementation of the project. It is expected that these changes will create space for greater social and gender equity, while being supportive of vulnerable groups in the context of access to and security in land. Building Conjdence and Trust in Government: The need for strengthening trust in the various instances of 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 of 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 of 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 of the proposed reforms. Trust will also have to be reestablished between land owners and the government land administration system where, given the low level of remuneration some staff exhibit rent-seeking tendencies. The shortcomings of the present land administration system result in cumbersome procedures and delays that frustrate all those having to deal with government in registering land transactions. Registering a parcel of 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 of government land services and making these available to the public in a timely and affordable manner. Government and Customary Authorities: There is 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 of rationality by which development projects and activities are selected, and the lack of proper consultation in disbursing revenues 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 8 percent of the land in Ghana. At the same time the project will foster systems which increase accountability of 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 recognition of 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 of the country where families are administering lands directly, some family members forge signatures and thumbprints to sell rights to land illegally, creating indiscipline in the land market. The social benefits of the proposed confidence-building activities will include greater willingness on the part of the public to participate in rational urban

30 development, greater stability and clarity in the land market and a reduction in rent-seeking behavior and predatory land sales. Lack of confidence in the land adjudication and judicial systems to swiftly resolve land disputes is prompting some of the landowners and lessees to hire guards to protect their lands. The project will not only assist demarcating the boundaries of customary areas through community participation, but will strengthen customary land administration to ensure greater accountability and transparency to the members of the community. Alternative Land Dispute Resolution (ADR) Mechanisms: The pervasiveness of distrust and the latent and sometimes open conflict over land highlights the need to encourage the use of 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 of 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 of a land dispute resolution mechanism using local institutions and the participation of the community should be encouraged and promoted in other areas, if deemed 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 is no longer functional, alternative mechanisms will be modeled in conjunction with project land titling activities. A particularly valuable aspect of any dispute resolution mechanism is 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 is enacted. Gender Issues: Cultural and traditional factors related to land vary from area to area within the country. In some areas women have tended to be marginalized through inheritance customs and practices. Women can generally access land for residential and agricultural purposes. However, land ownership by women is 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 men to assert their rights during the 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 is the household head. Gender studies will be conducted in areas representing all the prevalent land tenure systems in Ghana to inform formulation of policies, laws and procedures in registering land rights including those to be conducted at the customary level. These studies, together with experience accumulated in project pilot 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 of the need for participation of women in project activities and decision-making. One social development outcome in relation to titling and registration is ensuring that women s rights to land are respected, including recording of the names of both spouses on the title of joint family properties. Moreover, it is 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 of some families. Secondary use rights, such as the right o f poor village women to harvest the fruits of

31 certain trees or the right of 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 of this possibility, the project will carefully document the situation of 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 of the institutional restructuring of 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 of social scientists (a social development specialist and an economist) will be conducted to inform sufficiently the development of the resettlement plans, that will be implemented prior to the commencement of any project activities that trigger resettlement. These plans will develop concrete, time-bound benchmarks and measurable indicators, which will facilitate the effective monitoring of these resettlement activities and to ensure timely and adequate compensation. The GoG budget allocation will take into account the eventuality of any resettlement. Indigenous Minorities: The case of indigenous minorities does not arise in Ghana because there is no political dominant group marginalizing others, no dominant languages silencing minority languages, no tradition of 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 is a multiplicity of 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: How are key stakeholders participating in the project? The project requires a high level of participation by relevant stakeholders in planning, implementation, monitoring and evaluation, including decision-making at all stages, in order to be effective and sustainable. In recognition of this the project design had adopted a participatory approach. A stakeholder analysis was conducted as part of 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 of 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 land policy

32 formulation and legal and institutional reform, to land titling and strengthening of customary land administration systems. This outreach strategy will have the dual function of providing necessary information regarding the project and related issues to permit meaningful participation by stakeholders, and of ensuring that opportunities exist for effective participation, including the incorporation of feedback into project planning on an iterative basis. At each stage of surveying and adjudicating land parcels, 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 of poor and vulnerable claimants, will be developed or local customary systems adapted to resolve outstanding disputes. Beneficiary and impact assessment will adopt methodologies to ensure that representative members of project communities are heard and that any excluded groups are identified for remedial action. 6.3 How 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 of local groups to own and use land for development. A number of these groups were identified during the stakeholder analysis and will be incorporated into project implementation. These include the House of Chiefs, the Land Tenure Center of the Kwame Nkrumah University of Science and Technology, the Law School at the University of Ghana, the Ghana Bar Association, Associations of 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 of 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 of land. Where conflicts over disputed land occur, qualified NGOs and civil society organizations will play a key role in developing and encouraging the use of 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 of land issues. Gender analysis, for instance, will inform how the project will take into account the rights of women to land and benefits from land. NGOs will also be involved in ensuring that the process of monitoring, evaluation and impact assessment is participatory by building the capacity of communities to become actively involved in these project activities. The project will also provide assistance to strengthen land secretariats of the traditional councils and the land sector professional associations to enable them play their roles effectively. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? The project will recruit a social development expert as core staff of LAPU to ensure that implementation of 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 of 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 of 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 in land administration. Considering the

33 possible biases against women and migrant tenants, it is strongly recommended that the project s institutional design for delivery at the community level ensure the representation of 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 in how the structural arrangements and the processes can be designed to allow transformation among government land agencies, the local government authorities, and members of the legislative and judicial branches of government. The objectives of 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 of the Land Administration Project s empowerment objectives. The project would strive to promote such a commitment among all the stakeholders. 6.5 How will the project monitor performance in terms of social development outcomes? The project will include social scientists in implementation of activities to ensure the systematic collection of relevant data and their refinement, as necessary, of the social developments indicators specified in the project logframe. It is envisaged that annual independent supervision and monitoring activities will be undertaken to monitor and measure project performance in terms of social development outcomes. A number of social process and output monitoring indicators have been identified, including: the level of participation of all stakeholders, including vulnerable groups; the number of land disputes and the proportion resolved through community-based dispute resolution mechanisms; the number of land titles issued to women and other vulnerable groups; proportion of women making claims to land and securing land title; the percentage of female staff at the management and technical level within project activities and in land administration agencies; increased understanding and appreciation of land related gender issue, etc. Additional performance monitoring mechanisms and indicators will be developed to take into account the nuances of the desired social development outcomes in the course of 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 of relevant social indicators, as they relate to land, into regular information collection and analysis activities. 7. Safeguard Policies: Environmental Assessment (OP 4.1, BP 4.1, GP 4.1) Natural Habitats (OP 4.4, BP 4.4, GP 4.4) [--For%y (OP 4.36, GP 4.36) Pest Management (OP 4.9) Cultural Propertv (OPN 11.3) Indigenous Peoples (OD 4.2) Involuntary Resettlement (OP/BP 4.1 2) Safety of Dams (OP 4.37, BP 4.37) Projects in International Waters (OP 7.5, BP 7.5, GP 7.5) Yes (3 No C: Yes NO Cl Yes NO L Yes No C! Yes NO CI Yes NO Yes C; NO 3 Yes NO Yes NO I Projects in Disputed Areas (OP 7.6, BP 7.6, GP 7.6)* I Yes NO I

34 7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. The project has been designed to ensure compliance with the Bank s applicable safeguard policies. Contracts for construction of 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 of potential environmental significance. Institutional arrangement will be made with the Ghana Environmental Protection Agency for ensuring compliance of project activities with its guidelines and staff designated and trained to guide and monitor for environmental and social safeguards. 8. Business Policies 8.1 Check applicable items: Financing of recurrent costs (OMS 1.2) Cost sharing above country 3-yr average /OP 6.3. BP 6.3, GP 6.3) Retroactive financing above normal limit JOP BP GP 12.1) Financial management [OP 1.2, BP 1.2) Involvement of NGOs /GP 14.7) 8.2 For business policies checked above, describe issue(s) involved. F. Sustainability and Risks 1. Sustainability: The main risk for the sustainability of the policy, legislative and institutional reforms envisaged in the project is 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 building measure of its seriousness and commitment. This will win the support of 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 is of 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 during project preparation exhibited a high degree of support for the project as explained in Section 6 above. Implementation of the project s communication strategy will promote the awareness of these stakeholders and heighten their commitment to these reforms. Although the increased efficiency arising out of the land administration reform will reduce costs as well as the land disputes clogging the courts, and the project is 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, - 3 -

35 with community and NGO participation, to educate the populace on the social and economic advantages of land title registration to pave the way for systematic land titling in areas where it is 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 of land administration services, involving customary land owners and their land secretariats, the participation of the community in alternative land dispute mechanisms and the establishment of land courts will, in the first place, reduce land disputes. It will enable speedy resolution of those that will arise, bringing decision making on land issues closer to the communities and giving them a high degree of ownership and enhancing sustainability of the system, Finally, the institutional reform and capacity building activities of the project will lay the foundation for continued sustainability of subsequent land administration reform programs

36 2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1): Risk From Outputs to Objective 1. Sustained political commitment to a long-term participatory land administration reform program, including customary land authorities, civil society and the private sector. 2. Legislation mandating policy reform, including restructuring of public land agencies is passed. 3. GOG will continue to support participatory land administration by traditional authorities and the private sector 4.Governance improves to effect administrative and fiscal decentralization and check corruption From Components to Outputs 1, Land owners and users willing to participate in policy, legislative and institutional reforms and accept measures undertaken as a result o f the reforms. 2. Public land management institutions and traditional authorities will collaborate effectively 3. District Assemblies and traditional authorities are willing to develop capacity for land administration and land owners and users are willing to participate in the land titling and registration process. 4. Public land administration agencies accept institutional reform and cooperate effectively to make it work. Overall Risk Rating Risk Risk Ratina I Risk Mitiaation Measure M S M S M S M M S Public and civil society awareness and debate on socioeconomic impact of lack of political commitment and government inaction will be promoted through the communication strategy of the project. The House of Chiefs, civil society and the private sector will be encouraged and supported to play an active role in the land administration program. Public participation and awareness programs will be conducted to facilitate broad-based understanding of the legislative and institutional reforms will be sought. Civil society and the House of Chiefs will be actively involved in the land administration program Donors are keen that poverty reduction, decentralization and improved governance remain priority issues and will ascertain it through the implementation of projects under the CDF. Public participation and awareness programs will be conducted to facilitate broad-based understanding o f the legislative reforms sought Participation of stakeholders will be included in the design of the policy, legal and institutional reforms and training of key personnel and traditional leadership in land administration to facilitate such collaboration. Stakeholder analysis and consultations and awareness creation will be conducted and staff of land secretariats of customary authorities will be trained and provided with logistics. Special emphasis will be given to ensuring that titling processes are community driven and managed. Land administration agencies will participate ir the reforms envisaged and their staff trained in change management and skills required for reorienting their work. I

37 3. Possible Controversial Aspects: G. Main Loan Conditions 1. Effectiveness Condition i. Parliamentary Approval of the Development Credit Agreement (DCA). ii. Attorney General's Legal Opinion certifying that the DCA has been duly executed and ratified and is legally binding on the Borrower. 2. Other [classify according to covenant types used in the Legal Agreements.] Disbursement Conditions i. For categories (1)-(4) of expenditures: the initial deposit of US $5, equivalent paid into the project account; ii. For the allodial demarcation subcomponent: (i) the Lands Policy Steering Committee has been established, and (ii) an assessment is made of the current land administration services provided by customary land authorities through interviews with those who have used their services; and iii. For the land titling subcomponent: recommendations of the studies on rights and interests in land and registration of land titles have been taken into account, and there are assurances, satisfactory to IDA, with respect to the continuing validity of customary freeholds and other traditional allocations of land. 3. Other Conditions to be included i. Recruiting a sociologist and a communication specialist no later than six months after credit effectiveness; ii. Preparing an institutional reform study no later than December 3 1, 24; iii. Cabinet approval o f the draft legislation for restructuring of the land administration agencies no later than December 3 1,25; and iv. Mid-term review 2 years after effectiveness. H. Readiness for Implementation 1. a) The engineering design documents for the first year's activities are complete and ready for the start of project implementation. 1. b) Not applicable. 2. The procurement documents for the first year's activities are complete and ready for the start of project implementation The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. 4. The following items are lacking and are discussed under loan conditions (Section G): Interpretation of an article of the 1992 Constitution affects the land titling subcomponent o f the project. The Borrower was requested to provide an official clarification of this issue at appraisal. Progress had been made and a roundtable discussion of prominent jurists and lawyers with the Ministers

38 of Land and Forestry and the Attorney General was organized, but failed to materialize because of a Cabinet reshuffle. This requirement is now made a condition of disbursement under the titling subcomponent. The procurement plan for the first two years has been prepared and included in the PIM. Bidding documents for the project s initial procurement are being prepared and would be completed prior to Board presentation, but this is not made a condition for Board Presentation. To the credit of the Project, the Land Sector Technical Committee, one of the oversight committees o f the project has been constituted and has started meeting to guide and monitor project pre-implementation activities financed by the PPF, the Project Coordinator has been designated, and the Project Financial Controller is in place and already managing two other IDA and GEF financed projects within the Ministry of Lands and Forestry. I. Compliance with Bank Policies 1. This project complies with all applicable Bank policies. c! 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. Team Leader Sector Manager Country Director

39 Annex 1: Project Design Summary GHANA: Land Administration Project Economic and social growth Increase in household incomes GLSS reports enhanced and poverty reduced and reduction in poverty in by improved access to land pilot areas. and enhanced land tenure security. Role of civil society and Number of traditional MLF monitoring reports private sector expanded. councils, NGOs, academia and private sector participating directly or indirectly in land administration services. Governance improved. - Corruption in land administration reduced. - Roles of central and local governments in land administration clarified. - Chiefs and other traditional land authorities adopting more participatory procedures. - Customary land administration systems playing larger role in land administration. - Transparency checks and balances and participatory procedures adopted by traditional land authorities. - Sustainable land use planning and management practices developed. MLF, Head of Civil Service & Ministry of local government reports, media reports, M&E survey reports, land information systems. GOG retains poverty alleviation as a key priority and commitment to land administration reform. GOG will continue to support participatory land administration, including customary land authorities, civil society and the private sector

40 ~ developed I Project Development I Outcome / Impact I Project reports: I (from Objective to Goal) ' Objective: Indicators: Sustainable land - Turn around time and - Project monitoring and administration system that is transaction cost of processing evaluation (M&E) reports; fair, efficient, cost effective, land administration services - Socioeconomic impact ' decentralized and increasing reduced. studies. land tenure security is - Land litigation cases and filly decreased in courts of pilot ' functioning. areas. - Land transaction revenues to local and central government increased. I - Loan and mortgage financing secured by land titles in pilot areas increased. - Investment in the property sector increased. - Land titles registered by women increased. - Land owners and users willing to participate in policy, legislative and institutional reforms and accept measures undertaken as a result o f the reforms. - Laws mandating land agencies reform are passed. - Public land management institutions and traditional authorities will collaborate effectively. - Government will resource courts to expedite settlement of land cases

41 htput from each :omponent: :omponent 1. Land policies nd regulatory framework evised and harmonized with ustomary land laws. Zomponent 2. 'ublic land sector agencies eformed and developed. Output Indicators: 1.1 Reports on policy and legislative reviews completed and codified revised land legislation drafted and approved by Ministerial Cabinet Backlog of land cases reduced from 35, 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 of the continued validity of customary freehold and other customary titles Studies completed and recommendations adopted on: a. what rights will be registered on land titles; b. divestiture o f vested lands; c. finance and fee structures in land administration; d. gender analysis o f land rights and administration; e. assessment o f current land administration services provided by customary land authorities. 2.1 Report of study on comprehensive organization, management and operations of public land sector agencies completed and recommendations implemented. 2.2 one-stop-shop centers established in at least three regions and functioning customary land secretariats established and strengthened through physical and technical assistance, with more effective and inclusive administrative procedures. 2.4 At least ten NGOs actively 'roject reports: 'roject reports, evised land policy paper, lraft land legislation. Zourt records, roject M&E reports. Project (M&E) reports. Socioeconomic impact :valuation reports. From Outputs to Objective) iustained political :ommitment to the land Idministration reform program 'y successive administrations.. Public land administration agencies accept institutional :eform and decentralization and cooperate effectively to nake it work.. Legislation mandating?olicy reform, including restructuring o f public land igencies is passed.. Public land management institutions and traditional authorities will collaborate :ffectively. - GOG will continue to support participatory land idministration by xaditional authorities and the

42 Component 3. Procedures, processes and information system for deeds/ land title registration and land valuation improved and tested in pilot allodial boundary demarcation and land title registration sub-projects Component 4. Project implementation by various agencies well coordinated and project activities monitored and their socioeconomic and environmental impacts assessed and evaluated. The long-term land involving in promoting improved local level land administration. 2.5 Private land sector institutions deliver land administration services more efficiently. 2.6 Land administration training and research institutions supported through provision of classroom, laboratory and office buildings and equipment. 2.7 Quality of land sector education enhanced. 2.8 Increased research on land tenure and land administration with linkages to practice established. 3.1 Cadastre and land information system designed and implemented. 3.2 Deed and title registration procedures and data storage and retrieval systems improved. 3.3 digital and hard copy maps prepared for customary land boundary demarcations, systematic land titling and land use planning. 3.4 simplified land information, registration and mapping procedures developed to improve accessibility in rural areas. 3.5 Altemative land valuation and land fees collection designed and implemented pilot allodial land boundaries demarcated and registered , land titles adjudicated and registered. 4.1 Project coordination and management carried out effectively. 4.2 Skill gap analysis conducted and master human resources development plan prepared and implemented. 'roject (M&E) reports. jocioeconomic impact :valuation reports. Jient satisfaction surveys. ncrease in land fees collected. mplementation assistance nission reports. 'roject (M&E) reports. Zlient surveys. lrivate sector. District Assemblies and raditional authorities are villing to develop capacity for and use planning and land.dministration and land iwners and users are eager to iarticipate in the land titling.nd registration processes. Governance improves to iffect administrative and fiscal lecentralization and check :omuption. Surveys and maps required 'or land titling and registration will be produced in real time. District Assemblies and raditional authorities are willing to develop capacity for and administration and land Iwners and users are eager to )articipate in the land titling md registration process.. PPMED, LMF and the Land 4dministration Program Unit Staffed with competent xofessionals.. Civil society and the private jector willing to participate in.mpact evaluation assessment ind studies and public iwareness campaign

43 idministration program lefined on the basis of the :xperience gained and the essons learnt and a Phase I1 Iroject prepared and ipproved. 4.3 A communication strategy to sensitize, educate and invite the public to participate in discussion of land policy issues, in designing and implementing allodial land boundary demarcation and land titling and registration and in setting-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 I1 project designed and proposal prepared and approved by MLF

44 1 'roject Components I ju b-components: Zomponent 1 : Harmonizing 2and Policy and Regulatory jramework for Sustainable and Administration. 1. Revisions of laws and,egulations for an effective ind efficient land idministration. ). Expediting settlement of and cases in the courts and leveloping alternative land lispute resolution nechanisms. ;. Inventory of all acquired State lands and determination if outstanding compensation. i. Policy studies:. Land tenure registration: to Formulate government policy in what rights will be eegistered on land titles; i. Divestiture of vested lands;.ii. Finance and fees structure 3f land administration system ;o formulate government policies on fees and taxes for registration of land transactions; iv. Gender study and analysis on land rights and land administration; v. Assessment of current land administration services provided by customary land authorities; Component 2: Institutional Reform and Development a. Institutional reform. b. Decentralizing and strengthening land Administration services. c. Strengthening customary land secretariats. d. Strengthening the private land sector institutions. e. Strengthening Land Administration and Management Training Institutions. Component 3: Improving iputs: (budget for each omponent) JS$l, 16 million. JS$29.22 million. US$16.3 million roject reports: :mi-annual supervision :ports. Iid-term review report. nplementation completion :port. rom Components to utputs) - 4 -

45 Land Titling, Registration, Valuation and Information Systems a. Establishment of deeds registry b. Delineation and registration of allodial rights c. Pilot systematic land titling and registration d. Mapping, land use planning and management support for land administration e. Establishment of Model Land Titling and Registration Offices Component 4: Project Management, Monitoring and Evaluation a. Project coordination and management b. Human Resources Development c. Communication strategy d.monitoring and evaluation and impact assessment JS7.51 million -41 -

46 The amounts below include contingencies. By Component: Annex 2: Detailed Project Description GHANA: Land Administration Project 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 of 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 of land by govemment. The process of 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 of 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 is also a need to re-examine the policy in the light of 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 if the broad objectives of GoG and those of LAP-I are to be met includes: Considering and elaborating policies that are unclear and establishing new policies; Preparing a prioritized list of land laws and judicial decisions for review; Developing new laws where necessary legislation is lacking; Resolving conflict and overlaps, and redrafting laws so that they are consistent with the Constitution and in harmony with customary practice; Recommending legal and policy changes to the Minister, MLF and the Attorney General; and 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 of the project, in cooperation with the Law Reform Commission and the Statute Review Committee and the MLF Minister. It is 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 of consultations through land policy fora at the local and national level, and the findings of 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 is contained in WP 1 of GoG s project proposal. (Hereinafter, such working papers will be referred to as WP 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, 25, while the laws related to acquisition of land and land policy will involve more public consultation and will take more time. The draft of either a comprehensive new land legislation or a series of revised land acts would be prepared and tabled before Parliament no later than four years after the date of credit effectiveness. A suitable legal advisor consultant will be recruited and posted in LAPU

47 to follow-up on the implementation of this component. Specific issues which would be addressed during the project's lifetime include: Clarification of the relative weight of interest in the allodial and customary freehold entitlements; Clarification or revisit of the constitutional position on customary freehold; provision of mechanisms through which customary occupants may register their traditional interests (including customary freeholds) without loss of rights in their conversion to leaseholds and the subordination of their rights therefore to tenancy of a lessor; Examination of ways through which spousal and family co-ownership may be further developed in policy and law; Exploration of ways through which local group occupancy and rights such as in respect of local forest, woodland, swamps (sacred groves) and other resources may be made registrable entitlements (e.g. commonhold); Legal provision for simple inventory registration where cadastral titling is not feasible or affordable by rightholders; Clarification and provision of legal instruments through which customary authorities may establish the boundaries of their land administration jurisdiction without these boundaries necessarily implying landlord status such as currently implied in the allodial entitlement; Re-examination o f procedures for re-vesting land in landowners which enable certain conditions to restitution of 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 of direct benefit to the landowners have already been constructed; and Development with traditional land authorities of mechanisms through which land interests held by 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: the interface between the customary and non-customary administration sectors with a view to providing clear relationships; the role of local governments (district assemblies) in land administration, in light of the national commitment to decentralization, and 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 Land Disuute Resolution Mechanisms: The history of land boundary disputes in Ghana is one of long delays with a growing backlog of 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, land disputes before the courts. The prospect o f early resolution of these cases is 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 is a protracted and costly proposition, alternative methods of resolving them will be pursued under the project. While the pilot land titling areas would be selected on the basis of 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 of stools/skins or land owning families. Cases that could not be resolved at this level would be referred to the Local Advisory

48 Committee (LAC), which would intervene to assist in reaching a mediated solution. The LAC would be established at the district level and its members selected from community elders jointly by the District Assembly and the chiefs in the district in consultation with the community. A public awareness campaign would be conducted before establishing LACs. Cases would go to courts only when the LAC fails in the mediation. In Ashanti Region, this would be modified with the intervention of the Asantehene s court before reference to the civil courts. LACs would be established prior to commencement of land boundary demarcation and registration in any 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 of courts. A draft ADR bill is currently being circulated by the task force with the expectation of a final version being presented to Parliament in 23. The project will link the following ongoing activities into this process: the work of the Human Rights Commission; the GTZ-assisted legal pluralism and gender project; the research studies in altemative dispute resolution being undertaken by IDS with ILMAD; the justice reform program being developed; and the NorTrad mediation project in the north supported by DANIDA. Subcomponent 1.3 Inventory Of All Acauired State Lands And Determination Of Outstanding Comuensation: GoG has declared its intention to retum vested land and land compulsorily acquired by the State, for which compensation has not been paid and is in excess of the needs of Govemment, to its customary owners. The State would develop a realistic, fair and timely compensation policy and disclose it to affected parties. This policy would be applied consistently across the board in paying compensation for all lands it wants to keep but for which it has not paid compensation. Implementation of this decision requires detailed demarcation, surveying and valuation of such lands. The project would support this work to be carried out by private contractors under the supervision of the Lands Commission, the Survey Department and the Land Valuation Board. However, it should be noted that IDA funds cannot be used for payment of 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 of new land policies and preparation of new land legislation. Direct support to ILMAD to undertake some of these studies in addition to studies contracted out to other research bodies 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: Land Tenure Registration, to formulate government policy on what rights will be registered on land titles, especially customary land rights and particularly the rights of vulnerable populations such as women, migrants and tenants. This study would also address the issue of rights acquired under customary freehold and common law freehold and how these rights are to be recorded in the land registry. Divestiture of vested lands, to examine the process and effect of divesting lands in the northem third of the country in 1978/79 to assist in the development of appropriate conditionalities for divestiture relating both to prior property rights but also to future transparency and accountability for the administration of lands divested. Finance and Fees Structure of Land Administration System, to formulate government policies on fees and taxes which are conducive to the financial sustainability of the system and at the same time ensure registration of land transactions and inheritances, taking into account the users willingness to pay and the need to correct land market distortions

49 Gender analysis, to examine how project activities can be informed by the input of and participation by women and designed so that women will benefit from those activities. 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 of setting-up customary land administration secretariats and their governance. The findings of the policy studies will be widely discussed with stakeholders and publicized in the media. (See WP 1 for 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 of government s intent for a land policy. There are already recognized shortcomings of the document in terms of detail, relation to other government activities, and timetable for implementation of the policy. The project would support an ongoing discussion of the land policy in light of project activities and legal reform. This activity would establish a structure through which a wide range of 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 is 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 of 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 coordinating point in the Ministry of Lands and Forestry. Project Component 2 - US$29.22 million Institutional Reform and Development The existing land administration system is highly fragmented and overlapping. The strategy for dealing with this problem is to: streamline the roles and functions of public land administration agencies, restructuring and strengthening them under one umbrella for efficient delivery of services; decentralizing land administration services; and building the capacities of the customary land authorities

50 Subcomponent 2.1 Restructurinp of Public Sector Land Agencies: A comprehensive organization, management and operations (OMO) study of all the land sector institutions is being undertaken, financed by the project preparation facility provided by IDA. The main objective of the study is to develop a structure for the land administration sector as a whole that would achieve transparent, effective and efficient delivery of land administration services that satisfy customer requirements. Establishing a 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 of 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 is elaborated in WP2. The study team will work very closely with staff of 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 of the gainers and losers of 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 of the recommendations agreed upon with the MLF. The terms of reference for this study is given in the PIM. The study would be completed and agreed upon recommendations will be adopted no later than December 3 1, 24. The draft legislation restructuring these agencies will be approved by the Cabinet no later than December 3 1,25. Subcomponent 2.2 Decentralizinp and Strenptheninp Land Administration Services: 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 of agency services would include careful consideration of requirements for improving local access to services. It could be the case that the first implementation of restructured agency services is delivered in the form of integrated OSS at the district or even customary authority level where these involve large areas. The role of district assemblies in providing land use planning services would be strengthened. This subcomponent also has close links with subcomponent 3.3 for the establishment of model land titling and registration offices at the local level. A business model for the management of the land sector agencies will be developed. In addition, 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 of the training would be good governance and raising the consciousness of 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 of purpose-built offices, equipment, transport and operating budget would be provided under the project. Technical assistance would be provided in the introduction of 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 of land service delivery and for computerizing the Land Commission and Land Registry records. (See WP 4 for details)

51 Subcomponent 2.3 Strewthenin9 Customary Land Administration: The goal of 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 of 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 of the local chief, tindaana or family head. In all cases, the development of 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 of common interest to the community; identify and resolve overlapping claims of rights among landholders; develop more effective dispute resolution procedures, including the adoption of record keeping to help establish precedent; reach agreement with neighboring communities on the boundaries of the customary and area; establish simple registries to record land allocations, transactions and land use planning decisions; develop forms of certificates or entitlements which precisely reflect the nature of rights over the property awarded and the terms and conditions; methodically identify, adjudicate, demarcate and register holdings in the customary area, without formal survey input as appropriate; and develop mechanisms which improve the security of those identified as most likely to be vulnerable, women, very poor and landless families in the 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 of 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 of 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 of complexity and conflict in customary land relations exist. Over five years, it would be expected that up to 5 customary land areas would receive direct facilitation and support. Replication and expansion, if appropriate, to upwards of 5 other customary land areas (villages or larger units) would be through development and dissemination of best practice models, formulation of 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 international experts as appropriate would be provided. Outputs would include: a manual of procedures, devised on the basis of learning by doing experience; an institutional plan for providing sustained support to develop customary land administration; development of a training course for traditional land authorities; identification of the statutory provisions needed to support administration in the customary land sector;

52 significantly improved customary land administration in at least 5 customary land areas and improved administration in upwards of 5 other areas, including improvements in the full complement of areas from local adjudication, allocation and recording procedures to rules which protect the land rights of vulnerable sectors; and a body of trained facilitators who may incrementally service interested customary communities. For many elements of this subcomponent a detailed work program will be developed during project implementation with technical and financial support by DFID, linking directly with policy, legal, institutional and technical developments laid out in other components. Some of the routes for linkage are articulated in the PIM. Subcomponent 2.4 Strengthening the Private Land Sector Institutions: The Survey Act and associated regulations provide for the Director of Surveys to appoint licensed surveyors operating in the private sector to undertake surveys on behalf of 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 of 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 of economies of scale to acquire modem digital survey and mapping equipment to provide more effective service. The Ghana Institute of Surveyors will be supported to facilitate this. Currently, the licensing of private surveyor rests solely on the Director of Surveys. The Minister, MLF will review the procedure for vetting and licensing of 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 WP 2 for details). Subcomponent 2.5 Strenptheninp Land Administration and Manapement Training and Research Institutions: The main institute for professional education in surveying, mapping, land administration and management is the Kwame Nkrumah University of Science and Technology (KNUST). The Center of Land Administration (CLA) is 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 of 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 of Land Estate Management and the proposed Department of 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) of KNUST and the University of Ghana have also research facilities that could support the project, an efficient running of a modern land market and a relevant system of land administration in Ghana. Besides the expansion and modernization of 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 of the project's interventions. Part o f the research and M&E budget of the project will be earmarked for these institutions, while they would be allowed to compete in bidding for contract work to access additional funds for research services they are capable of providing. (See WP 2 for details). Project Component 3 - US$ 16.3 million Improving Land Titling, Registration, Valuation and Information Systems

53 Subcomponent 3.1 Develoument of Cadastre and Land Information Svstems: The fundamental data set forming a land information system (LIS) is the cadastre which records the physical location of the land parcel, the nature of its tenure, the rights held over it and the holders of those rights. A range of 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 in the LIS. The manual LIS currently being used in Ghana is 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 of digital technology and GIS systems, there is 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 of 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 is secure and the training of staff on its operation. Designing the LIS and its operation will involve the participation and collaboration of the Survey Department, Land Title Registry, Land Commission, Land Valuation Board and Town and Country Planning Department towards achieving the common goal of an effective LIS. The individual responsibilities of 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 platform shared by all land sector agencies. (See WP 3 for details). Subcomponent 3.2 Cadastral Mauuing: Inadequate survey and mapping contribute to lack of clear definitions of boundary locations that result in the large and growing number of land disputes that are severely hindering the effectiveness of land administration and the land market. Lack of suitably accurate cadastral plans and maps to record parcel locations is 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 is aimed at producing digital and hard copy maps at appropriate scales for customary land boundary demarcations, systematic land titling in urban areas and land use planning. The effort would be led by the Survey Department which has gained much experience from other Bank-funded urban projects. An intensive program of 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 is weak, incomplete and is in imperial units of measurement. The network will be recomputed and adjusted to provide effective support to the development o f a computerized national 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 of the benefits offered by digital technology. The benefits include, in particular, production efficiencies and facilitating the development of a national LIS that will lead to wider availability and use of large scale spatial land data for national planning and land administration. The project will support the construction of purpose-built offices to adequately protect expensive and sensitive survey and mapping equipment, However, care should be taken not to overbuild the capacity of the Survey Department to the detriment of development of the private sector to undertake cadastral survey and mapping on behalf of 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). Subcomponent 3.3 Establishment of Model Land TitlinP and Registration Offices: One-stop-shops (OSS) where clients would submit their request for land administration services to one office that would

54 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 of OSS and the range of services they provide need to be experimented with under Ghanaian conditions. A OSS can have all the service providers or processors located in one building or it can be a cheaper model of just 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 of 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 expanding their 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 in Accra and Kumasi to be constructed under the project. This would be of 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 of these OSS would be developed during project implementation as experience i s gained from the activities in the 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 of land recording which several hundred CLAs could be assisted to utilize. Care would be taken to maximize uniformity of land administration systems among CLAs to enable them provide a foundation for possible survey of 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 of CLAs to land record keeping processes. Late in the project, a detailed review of the OSS experience will be conducted. This review will include a series of stakeholder workshops and will be distilled into a comprehensive report setting out recommendations for future phases of the land administration program. Establishment of the OSS as single point of 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; linking the public with specialist assistance in the 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 accounting thereof; developing multi-skilled staff through training programs; conducting public awareness and education campaigns to encourage public participation and trust in the land administration system and the responsible agencies; - 5 -

55 conducting customer satisfaction surveys and programs to mitigate dissatisfaction and improve services. (See WP 2 for details). Subcomponent 3.4 Improvement of 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 16 years of 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 of 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 of paper records would also be improved by the provision of adequate storage facilities. Computer software that enables systematic digital storage and retrieval of 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 of the paper record to digital format would start with the most recent entries and work backwards to Technical assistance would be provided under the project to improve the organization and procedures of 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 is not efficiently guided, leading to land speculation, illegal land development and degradation of the environment. The process of issuing land development and building permits 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 of social and economic development. The need for better land use planning and control is nowhere more apparent than in peri-urban areas of Accra, for which reason Greater Accra will be chosen as a focus area. To achieve better planning in these and other areas development and adoption of new laws, new approaches to town and country planning and institutional strengthening will be required. The land use planning subcomponent will: (i) develop and test models and processes of land use planning and development controls with clear definition of roles and responsibilities at the district, region and national levels, in partnership with and participation of 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 of 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 of the overall legal reform of the land legislation; (iv) implement information systems including new orthophoto base maps and integration of existing data (maps and other data) suitable to support integrated planning at all levels; and (v) support implementation of land use planning and development controls in Greater Accra Region and selected pilot areas in other Regions

56 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 of other government and quasi-government institutions also perform land valuation functions. The LVB has been unable to establish a register of values and publish the bulletin of official notification of values due to lack of resources. A draft Valuation Bill is being prepared to address duplication of 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 of the national valuation database to support all valuation functions in Ghana and to use the database as a basis for the publication of official information in respect of land values as provided in the proposed legislation. A series of pilot mass appraisal operations is proposed under this component to assist in rapidly building a database of 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 land transactions and for the determination of 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 of the policy study on finance and fee structure of the land administration system, mentioned in Section 1.4 above, will be implemented. (See WP 5 for details). Subcomponent 3.7 Pilot Proiects in Demarcation and Registration of Allodial Land Boundaries: The basic ownership of land in Ghana is the allodial interest which rests with the customary authorities as trustees for all members of the community. Most stool/skin, tendamba and family lands are not registered and the transient nature of 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 of 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 is that certainty o f allodial rights is the starting point for the registration of subsequent rights which flow from this root title. The objective of the pilots is to develop field proven, efficient, transparent and community accepted procedures to define and demarcate the boundaries of 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 of the pilot would be to develop: efficient and cost effective methods of boundary demarcation with defined standards of survey and boundary demarcation; a community participation program to maximize inter-stool and intra-stool consultations and active participation in the demarcation process; create a system for effective mediation of boundary disputes through community participation; registration of agreed allodial rights; and contributions to the development of transparent systems for the management of 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 of land tenure in Ghana, i.e., stool, skin, tendamba and family lands. Care would be taken to avoid areas where there is pending litigation or active boundary contest. In order to gain from past experience, the reasons for the failure of 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 of 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 of the boundaries of the allodial holding. This work will assist in the establishment of a system to maintain the register of rights within the stool/skin and family. On completion of the pilots the experience would be scaled-up. The communication strategy to be developed under the project to sensitize all stakeholders on land

57 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 I1 of the project preparation report for details). Subcomponent 3.8 Pilot Svstematic Land Titling and Registration: The 1986 Land Title Registry Law provided for a systematic conversion of 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 of 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 of operation, there have been less than 12, titles registered with a commensurately small number of derivative transactions. There are about 37, applications awaiting registration. The objectives of the titling program have not been achieved, adding to the uncertainty of 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 of the customary freehold. It is generally concluded that the major reason for such low title registation is not the defect in the law, but in weaknesses in the mode and speed of its implementation. The proposed systematic land titling and registration pilot under the project would test ways of accelerating the registration of 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 a jurisdiction 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 is open, accessible, widely publicized, highly visible and based on an integrated delivery of services by a small operational unit located within the pilot target areas. The objective is to test and implement efficient procedures for systematic adjudication and cadastral mapping to accelerate the registration of land title in Ghana. Initially, three pilot areas will be chosen within existing declared title districts in Accra, Kumasi. and the lands of the Gbawe family in Greater Accra. Scaling-up to other title districts will take place after evaluation and consolidation of the experience in the initial pilots. It is envisaged that about 3, 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 registering rights 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 of plot numbers. (See Volume I1 of the project preparation report for details). Project Component 4 - 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 of the Chief Director (CD) of 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 of the CD. LAPU will be manned by six professionals to enable it coordinate implementation of the project, provide facilitating services for IAs and follow-up on pending issues. These will be: (i) The Project Coordinator; (ii) Legal Advisor; (iii) Social Science Specialist; (iv) Public Administration Specialist; (v) Communications Specialist; and (vi) Internationally Recruited Project Management Advisor. The detailed terms of reference of LAPU and the job description of its staff are provided in the PIM. The staffing of the LAPU with these specialists will be a condition of disbursement of IDA funds under the project

58 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. LAPU would be responsible for organizing training, workshops and seminars and implementation of the communication strategy under the project. The heads of all departments, agencies, sections or units will be responsible for the implementation of 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 implementation progress, including retums on expenditures. Financial management and procurement involving national and international shopping and bidding will be the responsibility of the Finance and Administration Department, MLF. IAs will finance operating expenses and procurement of small-ticket items on the basis of 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 of the project and a Lands Technical Steering Committee (LTSC) that will provide guidance and supervision on the technical aspects of the project. Members of the LPSC will be the principal stakeholders and prominent professionals in Ghana s land policy; Le., Minister, MLF (Chairperson); Deputy Ministers of the ministries of 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 of Parliament on Lands; Representative, National House of Chiefs; Renowned land tenure scholar; Renowned jurist; President, Ghana Bar Association; Representative of land sector NGOs; Representative of Academic or Research Institutions; and Head of the National Women s Development Council. The Project Coordinator will be Secretary of the LPSC. The LTSC will be chaired by the Chief Director, MLF and comprise all the heads of 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 of the ministries of Finance and Information and representative of land sector NGOs and the Bar Association. The Project Coordinator will be the Secretary of 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 of this plan that will be managed by LAPU. Technical assistance will be provided for the skill gap analysis and preparation of the plan. The plan will include in-house and in-country short courses to upgrade the skills of 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 of 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 of the project will be that of the PPMED, MLF, monitoring of implementation progress will be the responsibility of IAs with guidance and oversight by PPMED. Key monitoring indicators will be agreed upon and reporting formats developed

59 jointly by PPMED and IAs who will utilize the monitoring information as management tools to improve their performance, The IAs will submit their monitoring reports to PPMED at agreed intervals. PPMED will be responsible for compiling monitoring reports of 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 of 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 of action-m&e-feedback-revised project planning-action is critical for the success of this project. A degree of flexibility will be built into the M&E program, 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 is envisaged that a number of 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 of Ghana, ILMAD of KNUST, NGOs and diverse think tanks based in Ghana. Ongoing research activities in Ghana and neighboring parts of West Africa provide a further source of complementary information of value regarding impacts from land registration, and alternative approaches to providing tenure security. A systematic review of experience could usefully be undertaken regarding how projects in Ghana and neighboring countries in the region have approached systems of registering rights, in terms of organizational choices, technical issues, financial and fiscal implications, and impacts on different groups. This assessment of findings from elsewhere is a priority in order to identify sites for study tours proposed for the early years of 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 need to 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. Integration between M&E and other components will be of particular importance for piloting of strengthened customary land administration, the communication strategy, establishment of baseline studies and exchange of findings with ongoing research and NGO activities addressing land issues in Ghana. In the interests of building on existing initiatives, the M&E activities will ensure close links with the GPRS and associated surveys to assess social and economic impacts of the project. Implementation of the project s M&E will be the responsibility of the MLF (PPMED) with oversight by the Chief Director. The Director, PPMED, will liase with the MLF Financial Controller with regards to the monitoring of the project s budget. Each IA will appoint a full-time M&E officer. Tasks of the PPMED will include the design of the overall M&E program, including methods and monitoring

60 instruments to be modified after field testing; participation in the selection of relevant staff and the provision of training in the implementing agencies; ensuring the processing and analysis of data to provide information for reviews and reports; ensuring a triangulation of methods for data collection to maximize reliability; organization of 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 PPMED will ensure liaison between M&E activities within each IA. The M&E program will be designed prior to project implementation and a baseline survey of the key indicators conducted, using funds provided by IDA under 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 high level of transparency and promoting the practice of good governance. To be sustainable, improvements will also need to leverage the systematic participation of 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 of the project implementation agencies. LAPU would then be accountable for producing a high level understanding of the objectives, details and options inherent in project activities among all stakeholders and motivate active participation in making 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 of 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 in the PIM. In brief, LAPU would include a Communications Specialist (CS) with a record of 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 of communications officers from among the staff of 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 LAP project and in the MLF. This would enable himher to be in touch with all key institutional stakeholders, maintain message coherence, veracity and timeliness of information dissemination as well as receive and channel stakeholder views, suggestions and reactions to those responsible for the technical operations of the project. The CS and the network would assure that communities, holders and users of land are informed about prospective changes in land administration policies, 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 of 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 in terms of community outreach, mobilization of support, public education and awareness raising) developed in the context of 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 required to provide different communication services at national and regional levels (opinion research, public dialogue, development of selected information, education and communication materials) and at the

61 district and community levels (targeted dissemination, focus group discussions, conflict resolution, collection of feedback, etc.). Over time, it is envisioned that local communities would assume greater participation and control over the planning and implementation of local-based campaigns, through for example, design and implementation of 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 of 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 behind it, key implementing agencies and expected outcomes); and (iv) establish a set of guidelines to direct communications processes. The effectiveness of the communications program would be monitored through indicators of audience awareness of land services and rights, accuracy of information disseminated and the timeliness of response to misinformation, volume of feedback and appropriateness of the response to it, proactive communication efforts initiated and sustained, creative approaches to harnessing opinions and elicit feedback. One indication of ownership at the local level would be that communities are actively involved in the 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)

62 Annex 3: Estimated Project Costs GHANA: Land Administration Project Project Cost Summary by Components A. HARMONIZING LAND POLICY AND REGULATORY REFORM (Component 1) 1. Harmonizing Policy and Regulatory Framework % %Total % %Total (Cedis Million) Foreign Base (US$ ') Foreign Base Local Foreign Total Exchange Costs Local Foreign Total Exchange Costs a. Compilation of Judicial Decisions /a b. Revision of Laws and Regulations , Subtotal Harmonizing Policy and Regulatory Framework , Establishment of Regional Land Courts 997 2,44 3, Inventory of Compulsorily Acquired Land , Poiicy Studies 24 2, Subtotal HARMONIZING LAND POLICY AND REGULATORY REFORM (Component 1) 2,68 5,696 8, , B. INSTITUTIONAL REFORM AND DEVELOPMENT (Component 2) 1. Restructuring Pubiic Sector Land Agencies 693 1,52 2, Decentralizing and Strengthenlng the Land Administration Services a, Strengthening Decenbralized Land Administration Services 27,363 33,913 61, ,42.4 4, , b. Building the Capacity of Land Admlnstration Agencies Lands Commission 8,444 26,989 35, ,55.5 3, , Land Title Registry (LTR) 2,161 3,54 5, Land Valuation Board (LVB) 2,926 3,575 6, Office of Administration of Stool Lands (OASL) 1,737 2,745 4, Town &Country Planning Department (TCPD) 2,816 5, , Survey Department 1,224 18, , , Subtotal Building the Capacity of Land Adminstration Agencies 28,37 6, , , Subtotal Decentralizing and Strengthening the Land Administration Services 55,67 94, , , , , strengthening Private Land Sector lnstltutions Ghana Planning Institute (GPI) , Ghana Institution of Surveyors , Subtotal Strengthenlng Private Land Sector Institutions 879 3,61 3, Strengthening Land Admin. and Management Training Insts. ILMAD 5, , ,268. 3, Geodetic Engineering 4,31 6,146 1, , Kumasi Polytechnic (KP) 3,68 5,756 9, , Planning KNUST 931 2,1 2, Subtotal Strengthening Land Admin. and Management Training Insts. 14,561 32,57 46, ,82.1 4,7.1 5, Subtotal INSTITUTIONAL REFORM AND DEVELOPMENT (Component 2) 71,83 13,795 22, , , C. IMPROVING LAND TITLING, REGISTRATION, VALUATION, AND INFORMATION SYSTEMS (Component 3) 1. Establishing Deeds Registries /b 4,4 2,966 6, Delineation and Registration of Allodial Rights ,354 12, , , Communications Strategy 8,32 3,959 11, , , Pilot Systematic land Titling and Registration 12,892 2,676 15, , , Mapping, Land Use Planning and Management Support for Land Administration 51,794 13,33 64, , , , Establishing Model Titling and Registration Offices Subtotal IMPROVING LAND TITLING, REGISTRATION, VALUATION, AND INFORMATION SYSTEMS (Component 3) 78,429 34, , ,836 4, ,

63 ~ 6,92 D. PROJECT MANAGEMENT, MONITORING AND EVALUATION (Component 4) 1. Project Coordination 2. Human Resources Development 3. Monitoring and Evaluation Subtotal PROJECT MANAGEMENT, MONITORING AND EVALUATION (Component 4) E. PPF Physical Contingencies Price Contingencies 6,577 5,69 11, , ,233 14,394 18, , , ,864 13,316 23, ,233. 1, , ,673 32,779 53, , , , ,586 21, , , , , ,634 12,444 18, , , ,93 12,929 43, , , , , , , , , ,

64 Project Cost Summary by Expenditure Category (Cedis Million) % Foreign %Total Base (US$ ') % Foreign % Total Base Local Foreign Total Exchange costs Local Foreign Total Exchange costs I. Investment Costs A. Clvil Works Construction 9,744 38,976 48, ,218 4,872 6, B. Vehicles Cross country Pickup 4x4 DC Saloon Cars Motorcycles Other la Subtotal Vehicles 67 4, , , ,23 9,572 1,665 1,655 1, ,713 16, , , , C. Equipment and Materials Office equipment Communication Equipment Other Equipment and Materials /b Fumiture Publications, reports, media Subtotal Equipment and Materials 5, ,77 5,635 1,758 41,288 13,66 1,22 39,778 3,569 1,669 59,842 19,511 1,44 67,548 9,24 3,427 11, , ,161 1, , ,48 2, ,443 1, , D. Specialist Services National consultants international consultants Subtotal Specialist Services 75,54 4,96 8,14 42,248 42,248 75,54 47,28 122, , ,2 5,281 5,281 9,382 5,91 15, E. Training Local Training Overseas Training Workshops Subtotal Training F. PPF Refinancing Total Investment Costs 13,238 1, ,62 152,558 8,352 9, ,61 6,92 176,167 21,59 1,659 1,423 33,672 6,92 328, , ,883 19,7 1,44 1, , ,21 2,699 1, , , il. Recurrent Costs 8. Perdiemlallowances 6,377 2,586 8, , D. Operation and Maintenance Buildings /c Vehicles O&M Id Equipment /e Subtotal Operation and Maintenance E. Supplies and Consumables F. Miscellaneous /f Total Recurrent Costs Physical Contingencies Price Contingencies 23 2,686 1,62 4, ,566 21,27 173,586 5,634 3,93 21, ,416 6,213 17,523 5,94 9,79 34,282 21,449 12,444 12, ,822 1,124 13,12 7,816 22,42 5,66 18,645 55,39 384,34 18,78 43, , ,196 2,628 21, ,539 25, , , ,135 4,285 26,36 1,556 1,252 29, , , ,331 6,914 48,4 2,26 4,791 55,

65 Annex 4: Cost Benefit Analysis Summary GHANA: Land Administration Project Summary of Benefits and Costs: Economic Analysis: Expected benefits a. b. C. d. e. f. g. Improved land tenure security: The project will reduce land security risks of land grabbing, encroachment, land disputes, and expropriation. Lack of tenure security has been identified as one o f major problems which contributes to poverty and inhibits economic and social development. Around 3, individual urban land titles and 5 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 of titling opportunities; Increased land-related investment: Investments on land, from both domestic and international sources, will increase as a result of increased confidence of investors towards a more secure, stable and predictable investment environment and improved access to formal financial credit; Improved efficiency of land resource use: Formation of rural land markets and improvements of urban land market will result in a more efficient use of land resources; 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; 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; 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 Improved poverty focus in the land administration sector: Through ensuring that the needs of poorer members of the community and those disadvantaged by discriminatory practices or conditions are attended to in building improved systems, the project will enhance the poverty focus of land administration development. Data and Methodolow The data used for the economic analysis is the Ghana Living Standard Survey (GLSS), conducted by the Ghana Statistical Service. The survey covered 5,998 households from all 1 administrative regions o f the nation. Based on the GLSS household and plot-level data, linear regression was used to analyze the effect of titling on land prices and to estimate the economic rate of return (ERR) to the investment in the project. Land-prices are used as a proxy for economic value of 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 of 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 of the plot (i.e., costal, forest, savanna), location of the plot (Le., Accra, other urban,

66 rural coastal, rural forest, and rural savannah) Regional dummies were also added to control the difference among the 1 administrative regions The total plot sample size used in the econometric analysis was 3,45. Results. The overall ERR of holding a land title is about 39 percent, and the coefficient of title is statistically significant at 99 percent confidence level and the result is robust to different specifications. This means that the value of a plot with a title will be 39 percent higher than that of 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 of 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 3-34 percent. However, the ERR, as calculated here, 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 is 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 high tenure security risk. In the case of Ghana, due to the lack of relevant information, the discount factor is not available. However, even if we assume that discount factor is 3 percent (Le,, a relative high risk of eviction), the ERR to the society is still about 28 percent. Plan to Improve Economic Analvsis. Given that GLSS is 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 of GLSS are landholders perceived price instead of actual market price. To improve the quality of 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 of 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 if the 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) should be collected. Moreover, in both 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 is the first phase of 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. Financial Analysis: The purpose of conducting a financial analysis i s to assess whether the net financial benefits expected from the project are attractive enough for project participants. In the proposed Ghana Land Administration Project, there are two key project participants - the landholders and the Government. Financial benefits and costs for landholders. As in many 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 of credit from formal financial institutions by using the titles as collateral, As a result of 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

67 where titles are issued upon request by landholders (i.e., sporadic registration which 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 of the title. In most cases, land titling projects adopt a systematic adjudication method to undertake land tilting in large volumes. To ensure high participation of landholders on a voluntary basis, the cost of land titling has been kept at a level significantly lower than the cost of producing a title. The affordability of the poorest landholders has been considered when setting an appropriate registration fee. For example, in the case of Thailand, landholders are charged less than US$5 per title, compared to the actual cost o f US$36 per title. In the case of Indonesia, landholders are charged about US$2 per title while the actual cost is 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 in many countries. Both the Government and the Bank agreed that a similar arrangement would be introduced in the Ghana. Current estimates show that the real cost of per title is around US$35 Based on the estimated costs of titling related components and the total numbers of title will be issued under the project, the average cost of per title is about US$28.3. However, this average cost does not include the government s future management costs associated with each title. To calculate the actual cost of each title, we assume that (i) government will spend about two percent of the current cost each year after the project implementation period to ensure each title still valid and (ii) the discount rate is 1 percent. Based on these two assumptions, the actual total cost of each title is 28.3+(28.3x.2)/.1= Based on this estimate and given that the proposed 3, titles to be issued by the project will mainly concentrate on urban areas, a fee of about US1 per title may be charged. Findings from field trips and discussions with the Government show that the fee arrangement would be reasonable. Evidence from many sources show that the actual cost of titling is several fold. Financial benefits and costs for the Government. The Government will receive incremental revenues ( j?nancial benefits) from: initial registration fee (US$lO per title); derivative registration fee (Le., administrative fees collected by land commission, land valuation board, land registration services, and surveying department, etc.). Based on information supplied by the Government, the total amount of different fees for sporadic registration accounts for two and half percent of the land value; stamp tax (to land buyer) of two percent of the land value; and capital gains tax (to land seller) which is 1 percent of amount of increased value. The economic analysis of the project shows that nationwide, land values will increase about 4 percent due to land titling, and given that urban areas will generally enjoy a higher return rate than the national average, it is assumed that land values will increase by 5 percent in urban areas. 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 of 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 of 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

68 maintaining the benefits of titling beyond the end of the project (two percent of total project costs). However, given the proposed project is the first phase of 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 of 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 of the long-term program. The same logic can be applied to the activities of land use planning (US$7 million, from Nordic Development Fund) as well as activities of strengthening land administration and administration system (US$8.6 million, from IDA). Therefore, costs of these activities should be either omitted or prorated according to certain criteria. Based on the nature of different investments, it was decided to include the following costs in the financial analysis: 1 percent of investment directly related with titling; 5 percent of investment related with strengthening administration and management system; 5 percent of investment related with development of regulatory framework and policy studies; and 33 percent of investment related to civil works; and finally, 2 percent of 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 is still 13 percent with NPV of US$3.7 million. The counterpart funding from the Government, with 9 percent in form of duty and tax, is also excluded, since it is not a real cost to the Government and hence has no financial implications. Results. The GLSS data shows that the turnover rate in urban 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 is quite active. The information from the Land Valuation Board suggests that the average land transaction value in urban areas is about US$5,. Based on this information, the financial analysis (Table 1) shows that the financial rate of return (FRR) is about 17 percent and net present value (NPV) is US$7.42 million (at a discount factor.1). Fiscal Impact: The fiscal impact of the proposed project should be neutral in the short-run given that less than 15 percent of the total project cost will be financed by the Government in the form of duty and tax exemption. In the long-run, it is expected that the fiscal impact of the proposed project will be very positive as shown by the relatively high FRR. Main Assumptions: The major assumptions of the FRR calculation are: (a) Distribution of the 3, individual parcel titles in mainly urban areas and 5 allodial titles mainly in rural areas; (b) Registration fee structure: (depends on fee structure suggested); (c) Average price per square meter (Rural and Urban); (d). Average size of per parcel (Rural and Urban); (e) Turnover rate (annual 2%); and ( Subsequent transaction registration fee. Sensitivity analysis / Switching values of critical items: The average land transaction value; turnover rate and initial registration fee are important parameters of the financial analysis. Therefore, a sensitivity analysis was conducted to test the financial robustness of the proposed project regarding changes in these parameters. The following results show that with significant changes of these key parameters, ie., 2 percent decrease or increase, the project would remain financially attractive to the Government. The results o f the sensitivity analysis are: If average of land transaction value increases 2 percent, NPV will be US$11.53 million; FRR = 2 percent; If average of land transaction value decreases 2 percent, NPV will be US$3.3 million; FRR = 13 percent; If turnover rate increases 2 percent, NPV will be US$l 1.53 million; FRR = 2 percent;

69 ~ ~ If turnover rate decreases 2 percent, NPV will be US$3.3 million; FRR = 13 percent; If registration fee increases 2 percent, NPV will be US$7.86 million; FRR = 18 percent; If registration fee decreases 2 percent, NPV will be US$6.98 million; FRR = 16 percent. Year 1 2 Total Benefits cost Initial registration fee Derivative registration fee Stamp tax Capital gain tax Net benefits ] I 3.17 I I I I I.8.36 I.8 17 I I I I.36 I I I.8 27 I.36 I I.36 I.8 32 I.36 I.8 33 I I.36 I NPV = US$ 7.42 (discount factor 1%) FRR= 17%

70 ~ 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 Recurrent Costs Total Project Costs Total Financing Financing I BRDll DA o. Government o.5.2. Central o.5.2. Provincial Co-financiers o. User FeeslBeneficiaries Other Total Project Financing Main assumptions: Cofinanciers will successfully conclude separate agreements with the Borrower

71 Annex 6(A): Procurement Arrangements GHANA: Land Administration Project Procurement Introduction The World Bank conducted Country Procurement Assessment Reports (CPAR) in 1985 and A consultant report in 1997 and a Country Portfolio Performance Review (CPPR) in 1998 cite: (i) lack of a comprehensive legal framework, and a uniform codified procurement procedures and regulations, (ii) weak capacity of procurement staff, and (iii) loose institutional and organizational arrangements for collective decision making in awarding of contracts, as major factors contributing to weaknesses in public procurement practices. Some of the unacceptable features in the current public procurement practices highlighted are (i) extensive use of sole method for selection of consultants, (ii) extensive and repetitive use of shopping procedures, often including same firms, (iii) unclear procedures for opening of bids and criteria for bid evaluation and contract award, (iv) post contract negotiations, (v) mandatory use of the state insurance company for goods contracts, and (vi) over-centralization of procurement in Accra. The reports recommended a comprehensive procurement reform for Ghana. This recommendation was also endorsed in the 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-2. It has now been tabled before Parliament and is expected to be enacted in the 23 session. In the absence o f a national procurement code, the procurement procedures to be followed will be fully described in the Project Implementation Manual (IPM). RegistratiodClassification of contractors may be used for establishing bidder qualification or for preparing a list for use under quotation procedure but not as criteria for bidding or for award of 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 Consultants will be selected in accordance with the document Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January 1997 and as revised September 1997, January 1999 and May 22. National Competitive Bidding (NCB) procedures will include: (a) an explicit statement to bidders of 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 participation in NCB. 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 of large procurements

72 into smaller ones to use less competitive methods will not be allowed. The detailed procedures to be followed will be described in the 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$2, or more. Specific Procurement Notices (SPN) will be required for contracts to be procured under ICB and NCB procedures and for consultant contracts with an estimated cost of US$lOO,OOO or more to obtain expressions of interest (EOI) prior to the preparation of the shortlist. SPNs will (as a minimum) be published in a newspaper of wide national circulation. Consultant contracts estimated to cost US$2, or more would be advertised in Development Business. Sufficient time would be allowed (not less than 3 days) for NCB and for EO1 to allow adequate time to obtain documents and respond appropriately. Procurement capacity Procurement under the project would be the responsibility of the Finance and Administration Department of MLF. Procurement capacity in this department is inadequate. It will be strengthened with the identification and training of capable and trainable mainstreamed staff in the MLF prior to project effectiveness. This action will be a follow up of the recommendation contained in the PAD of the ongoing GEF-financed Northern Savanna Biodiversity Conservation Project. Procurement Plans MLF will prepare a Global Procurement Plan (GPP) for the whole project, and a Detailed Procurement Plan (DPP) for the first two years of 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 of the PIM 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 of each subsequent fiscal year, MLF will submit up-dated versions of the GPP, and the annual DPPs in respect of the following year. Each quarter MLF will submit to IDA a procurement monitoring report as part of the Project s quarterly progress report. Procurement Implementation Arrangements The Finance and Administration Department of MLF will be responsible for procurement planning and processing of works and goods contracts and the selection o f consultants. Procurement o f small contracts for miscellaneous items of 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 of 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 procurement and procurement methods Works. IDA funds will not be disbursed for civil works as these will be financed by KfW. Goods would consist of vehicles (estimated to cost US$2. million) and other goods (estimated to cost US$4.4 million) which include, office, audio-visual, survey and other equipment. furniture and

73 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 of US$2, or more would be procured under ICB procedures. Procurement of goods packages estimated to cost more than US$3, but less than US$2, [up to an aggregate amount of US$l,OOO,OOO) would be procured by NCB. Goods packages estimated to cost less than US$3, (up to an aggregate amount of US$7, would be procured by shopping on the basis of comparison of quotations from at least three eligible and qualified suppliers. Requests for such quotations would include a clear description and quantity of the goods; submission date, payment terms as well as requirements for delivery time and point of delivery. Goods of 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$7.4 million) would consist of various studies, field work, surveys and technical assistance to be carried out by both national and international consultants. As a rule, consulting firms for all assignments estimated to cost the equivalent of US$lOO,OOO or more would be selected through Quality and Cost Based Selection (QCBS) methodology. Assignments estimated to cost the equivalent of US$2, or more would be advertised for EO1 in the United Nations Development Business (UNDB) and in at least one newspaper of wide national circulation. In addition, EO1 for specialized assignments may be advertised in an international newspaper or magazine. In the case of assignments estimated to cost between US$lOO,OOO and US$2,, the assignment would be advertised nationally. The shortlist of firms for assignments estimated to cost less than US$2, may be made up entirely of national consultants. Foreign consultants who wish to participate would not be excluded from consideration. Consultant services estimated to cost less than the equivalent of US$3, may be contracted by comparing the qualifications of consultants. Auditors and engineers would be selected using Least-Cost-Selection procedures. In case of assignments requiring individual consultants, the selection would follow the procedures stipulated in Section V of 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$2, or more would be subject to IDA S prior review in accordance with the procedures in Appendix I of the Procurement Guidelines for Goods and Works. All contracts awarded on basis of Direct Contracting or Sole Source basis would require prior review and clearance of 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 of US$2, or more, and consultancy contracts with individuals estimated value o f US$5, or more would be subject to prior review by IDA in accordance with the procedures in Appendix I of the Consultants Guidelines. The objective of all training programs, seminars, workshops etc. would be subject to IDA prior 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 of Appendix I to the relevant Guidelines. NCB documents for works and goods will be cleared with the Bank as part of the

74 work plan. Procurement methods (Table A) Table A. Project Costs by Procurement Arrangements (US$ equivalent) F. PPF Total Total( IDA) (1,869,4) (1,869,4) (3,738,8) - (25,) (4,) (2 15,) (865,) 1,86,248 17,45, 2,927, 7,78,6 7,988, 55,68,6 (5,515,) (82,5) (7,79,) (2,339,4) (4,45,4) (2,51,3) Note: Figures in parenthesis are the respective amounts financed by IDA N.B.F. = (Non Bank Funding) Le., Funding by other donors - 7 -

75 Prior review thresholds (Table B) Table B: Thresholds for Procurement Methods and Prior Review' 1. Works I 2. Goods >2, <2, 3. Services a. Firms b. Individuals >1, <1, <3, >5, <5, ICB NCB QCBS QCBS, LCS CQ Individual Selection All None All Contracts None None All Contracts 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: Overall Procurement Risk Assessment: Frequency of procurement supervision missions proposed: US$6.2 million Average One every 6 months (includes special procurement supervision for post-review/audits) I\ Thresholds generally differ by country and project. Consult "Assessment of Agency's Capacity to Implement Procurement" and contact the Regional Procurement Adviser for guidance

76 Annex 6(B): Financial Management and Disbursement Arrangements GHANA: Land Administration Project Financial Management 1. Summary of the Financial Management Assessment A Financial Management Capacity Assessment was conducted in May 22 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 of the agency s accounting system of recording and reporting, internal controls and auditing arrangements. Country Issues A Country Financial Accountability Assessment (CFAA) was conducted for Ghana in 2. An exercise is currently under way to update the assessment in the light of 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 of enforcement of 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 is believed that actions taken so far by Government will lead to elimination or improvement of these weaknesses. Based on the CFAA findings, assessment of the financial management systems of the Ministry responsible for the implementation of the project and knowledge of the sector and country, a summary of the risk analysis is provided below. Implementing Agency The Finance and Administration Department, MLF is presently managing the finances of the ongoing Natural resources Management Project (NRMP) financed by IDA and other donors and the Northern Savanna Biodiversity Conservation Project (NSBCP) financed by GEF. The accounts unit is headed by a qualified accountant, and assisted by four other accounting staff with varying degrees of accounting qualifications. All the staff have been trained in World Bank disbursement procedures and performance under the current projects is 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 of 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 of recording correctly all transactions undertaken by the project. The system also assures adequacy of maintenance of underlying records and supporting documents which form the basis for the preparation of regular and reliable financial statements and other similar reports, safeguard the project s assets, and are subject to auditing arrangements acceptable to IDA

77 Summary of Risk Analysis Risk Inherent Risks: Country a) Non compliance of statutory regulations and non enforcement of penalties. b) Inadequacy of legal framework to regulate internal audit functions in countrv. Overall Inherent Risk Control Risk Staffing of the Agency a) Inadequate human resource capacity of the required gov t financial staff to manage projects. Funds Flow Delays in accounting for funds transferred to various implementing agencies results in the slow down of subseauent releases. Internal Audit No professional internal audit (IA) function. Government IA is limited to pre-auditing, with no added value External Audit Likely, project audit reports will be submitted late. Reporting and Monitoring Delays in the submission o f project and financial monitoring redorts. Information Systems Computerized systems are not fully used due to poor training, and inadequate support. Overall Control Risk Risk Rating S H S N M S M M M M Risk Mitieation Measure Government is modernizing its systems. In addition it needs to institute measures that ensure the update and enforcement o f penalties for non compliance. Government will seek donor assistance to address this weakness. The Controller and accountant s General s Department periodically seconds qualified staff to the ministries. In the absence, the project will supplement by recruiting qualified staff to address this weakness. Funds management will be centralized, with releases to implementing agencies being limited to imprest amounts for incremental oderating cost. The project has outlined in its accounting manual an expenditure approval processes which ensures that only legitimate expenditures will be paid for by the project. Auditors would be in place prior to credit effectiveness and non compliant auditors would be changed. The timely submission of audit reports would also be part of the financial controller s performance measurement. The accounting system is now computerized and this should improve the timeliness o f the submission o f the financial monitoring redorts. All staff would be trained, and a program put in place to train new staff when ever they join. Have a maintenance service contract in place. The project will operate a centralized system o f funds management and there will be no elaborate flow of hnds to other implementing agencies. The use o f funds by the implementing agencies will be limited to

78 imprest releases for their incremental operating activities. Based on the assessment of the financial management systems in place under the implementing arrangements proposed, there will be the need for minor additions and modifications to the Ministry s present financial systems as indicated in the action plan. Strength The significant strengths that provide a basis of reliance of the project financial management system include: (i) the presence of a qualified accountant as head of the finance and accounts unit with overall responsibilities for project financial management; (ii) the presence of 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 in producing financial monitoring reports for the NRMP. Funds Flow Arrangements The MLF would open a US 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 of Ghana into which GoG counterpart funds released for the project would be lodged. To ensure smooth implementation of 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 of 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 of 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 of withdrawal applications to IDA for reimbursements would be prepared by the accounts unit, MLF. Reporting and Monitoring 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 of finance, procurement including contract details, and project progress. Ouarterly Financial ReDorts: would consist o f Sources of Funds and their Uses, Statement of Uses of Funds by Project Components and Activities, Special Account Reconciliation statement and a six-months Project Cash Forecast where necessary; Ouarterly Proiect Progress ReDort: would consist of Output Monitoring Report on contract Management and on Unit of Output by project activity; Ouarterlv Procurement Management Report would consist of procurement process monitoring for goods and works and that for consultants services, and contract Expenditure reports for goods, works and consultants services. Computerization of the accounting system of NRMP, under the Ministry, has been completed and FMRs

79 ~~ (formally PMRs) are now being generated by the system. MLF's accounting system which would be used for the implementation of 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 of project implementation. 2. Audit Arrangements Independent and qualified external auditors acceptable to IDA would carry out the audit of the project. The selection o f auditors shall be on competitive basis in accordance with the World Bank's guidelines and would be in place by effectiveness of 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 in respect of each of these statements o f accounts would be furnished to IDA within six months of the close of each fiscal year. 3. Disbursement Arrangements The proceeds of the credit would be disbursed over a five-year period. A period of four months after closing date would be allowed to make disbursements for expenditures incurred until the closing date of the credit. Allocation of credit proceeds (Table C) Table C: Allocation of Credit Proceeds Expenditure Category I Amount in US$million I Financing Percentage 1. Works 2. Goods 5.7 1% of foreign and 9% of local expenditures 3, Consulting Services % 14. Training, Workshops and Study Tours % of foreign and 9% of local emenditures 5. Incremental Operating Costs % 6. PPF.87 1% 7. Unallocated 1.96 Total Project Costs with Bank Financing 2.5 Total 2.5 Use of statements of expenditures (SOEs): Disbursements for all expenditures would be against full documentation, except for items of expenditures under contracts and purchase orders below US$ 1, equivalent each, for works, goods and consulting firms, and US$5, for consultant services (individuals), training and incremental costs for which disbursements would be based on statement of expenditures (SOEs). Supporting documentation for SOEs would be retained by the Borrower (GOG) for review by IDA missions and external auditors. Special account: To facilitate disbursements, a Special Account for the Ministry of Lands and Forestry would be

80 established and operated in US$ at a commercial bank, under terms and conditions satisfactory to the IDA. Upon credit effectiveness, a sum of 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. Project Account (PA) The Borrower will establish a Project Bank Account for financing its counterpart funds with an initial deposit of US$5,. Major procurement and consulting contracts would be financed from these accounts. However, operating expenses of implementing agencies and workshops and training organized by them will be financed by release of 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 in the Financial Manual. Table D. Action Plan Agreed at Appraisal Action Step Revise Accounting Manual of MLF to accommodate LAP Project accounting requirements Modify computerized accounting system to include accounts codes of new txoiects Appoint external auditor Opening Special Account (with signatures, etc.) Due Date Responsibility or Action By 8/3/3 Financial Controller Financial Controller 9/15/3 MLF / Financial Controller Before request Ministry of Finance and for initial Economic Planning / deposit MOFEP -FC

81 Annex 7: Project Processing Schedule GHANA: Land Administration Project Time taken to prepare the project (months) First Bank mission (identification) Appraisal mission departure Negotiations Planned Date of Effectiveness /1/23 9/27/22 1/6/ /28/ Prepared by: The Ministry of Lands and Forestry, Govemment of the Republic of Ghana Preparation assistance: Japanese Population and Human Resources Development (PHRD) Grant; and FAOICP Technical Assistance. Bank staff who worked on the project Name Solomon Bekure (AFTS4) John Bruce (LEGEN) Wael Zakout (EASRD) Dan Aronson (ASPEN) Naima Hasci (AFTS2) S. Omar Fye (ASPEN) Edward F. Dwumfour (AFTS4) Patience Mensah (AFTS4) Lucie Tran (AFTS3) Mbuba Mbungu (AFTPC) Tsri Apronti (AFTPC) Fred Yankey (AFTFM) David Webber (LOAG1) Karen Hudes (LEGAF) Smile Kwawukume (AFTPR) Guo Li (EASRD) Daniel Boakye (AFTP4) Beatrice Spadacini (EXTCD) Azra Lodi (AFTS3) Joseph Ellong (AFTS4) Rose Ampadu (AFC 1) ncluded: Speciality Task Team Leader Land Policy and Legislation Cadastral Survey and Land Titling Social Assessment Social Assessment Environmental Assessment Environmental Assessment Monitoring and Evaluation Program Cost Analysis Procurement Procurement Disbursement Disbursement Country Lawyer Public Sector Economic and Financial Analysis Economic and Financial Analysis Development Communications Strategy Document Processing Document Processing Team Assistance

82 Annex 8: Documents in the Project File* GHANA: Land Administration Project A. Project Implementation Plan 1. Ghana Land Administration Project: Environment Impact Assessment. Ministry of Lands and Forestry. February Ghana Land Administration Project: Project Implementation ManuaLMinistry of Lands and Forestry. March 23, 3. Ghana Land Administration Project: Project Preparation Report Volumes I and 11, prepared by Land Sector Planning Committee, Ministry of Lands and Forestry and Hatch Associates Pty. Ltd., March Ghana Land Administration Project: Resettlement Policy Framework. Ministry of Lands and Forestry. February 23. B. Bank Staff Assessments 1, Ghana Land Administration Project: Social Assessment, January 22. C Other Kasim Kasanga: Land Tenure and the Development Dialogue. Department of Land Economy, Cambridge University John Bruce and Shem Migot-Adholla Editors: Searching for Land Tenure Security in Africa. The World Bank Kasim Kasanga: The Role of Chefs and Tendamba in Land Administration in Northern Ghana. The Royal Institute of chartered Surveyors, June Kasim Kasanga, Jeff Cochrane, Rudith King and Michael Roth: Land Markets and Legal Contradictions in the Peri-Urban Area of Accra, Ghana: Informal Interviews and Secondary Data Investigations, Land Tenure Center, University of Wisconsin May Michael Mortimore: History and Evolution of Land Tenure and Administration in West Africa, Intemational Institute for Environment and Development: May Land Security and the Poor in Ghana - Is there a Way Forward? A Land Sector Scoping Study, by Liz Alden Wily and Daniel Hammond for DFID Ghana Rural Livelihoods Programme. October 21. Ministry of Lands and Forestry: National Land Policy, June Kasim Kasanga: Land Tenure and Regional Investment Prospects: The Case of the Tenurial Systems of Northern Ghana. Institute of Land Management and Development, University of Science and Technology, Kumasi, September Kasim Kasanga: Land Policy and National Development in Ghana. Center for Democracy and Development, Ghana. October 2. Ministry of Lands and Forestry: Land Records Storage and Management Study. May Ministry of Lands and Forestry and the World Bank: Ghana Urban Land Administration Study, May International Institute for Environment and Development: Land Tenure and Resource Access in West Africa: Issues and Opportunities for the Next Twenty Five Years London, Philippe Lavigne Delville: Harmonizing Formal Law and Customary Land Rights in French-Speaking West Africa. International Institute for Environment and Development June Center for Democracy and Development, Ghana: Corruption and Other Constraints on the Land Market and Land Administration in Ghana: A preliminary Investigation

83 15. Kasim Kasanga and Nii Ashie Kotey: Land Management in Ghana: Building on Tradition and Modernity. Land Tenure. International Institute for Environment and Development. February S.E Migot-Adholla, Frank Place, George Benneh and Steven Atsu. Lad Use Rights and Agricultural Productivity of 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 2/2 School of Geography, University of Leeds. *Including electronic files

84 TF5723 Annex 9: Statement of Loans and Credits GHANA: Land Administration Project Jun-2 3 Difference between expected and actual Original Amount in US$ Millions disbursements' Project ID FY Purpose IBRD IDA GEF Cancel. Undisb. Orig Frm Rev'd P HEALTH SECTOR PROGRAM SUPPORT PROJEC PO GH PRSC I PO Promoting Partnerships with Traditional PO67685 PO5623 PO968 PO71617 P 5624 PO69465 PO5616 PO5615 PO4557 PO4659 PO974 P 97 PO946 PO45188 PO4115 P PO973 PO42516 PO Ghana:GEF- Northern Savanna ~ 22 GH ROAD SECTOR DEVELOPMENT PROGRAM 21 AGRIC SERVICES 21 Ghana AIDS Response Project (umbrella) 2 URBAN5 2 RURAL FINANCIAL SERVICES PROJECT 2 COMMUNITY WATER II 1999 PUBSECTOR MNGT.PROG 1999 ERSOII 1999 COMMUNITY DEV NAT FUNC LIT PROG 1999 TRADE GATEWAY 8 INV NAT.RES.MANAGEMENT 1998 GH:FOREST BIODIVERSITY 1997 VILLAGE INFRASTRUCTURE 1997 PUB. FIN. MGMT. TAP 1996 URBAN ENVIRONMENTAL SANITATION 1996 PUBLIC ENTERPRISE/PR 1995 GH THERMAL (P-VII) Total:

85 GHANA STATEMENT OF IFC's Held and Disbursed Portfolio May 3-23 In Millions US Dollars IFC Committed IFC Disbursed FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 1993 AEF Afariwaa AEF Antelope Co. 2 AEF Computer Sch AEF GPPI AEF NCS AEF PTS AEF PharmaCare AEF Shangri-la AEF Tacks Farms Cont Acceptances 21 Diamond Cement ELAC.1.1 GAGL /96 GHANAL Ghana Leasing MFI SSLC Total Portfolio: Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic 2 GAGL IV-Restr.54 Total Pending Commitment:

86 ~ ~ ~~~~ POVERTY and SOCIAL 21 Population, mid-year (millions) GNI per capita (Atlas method, US$) GNI (Atlas method, US$ billions) Average annual growth, Population (%) Labor force (%) Most recent estimate (latest year available, ) Poverty (% of population below national poverty line) Urban population (% of total population) Life expectancy at birth (years) Infant mortality (per 1, live births) Chiid malnutrition (% of children under 5) Access to an improved water source (% ofpopulation) illiteracy (% of population age 75+) Gross primary enrollment (% of school-age population) Male Female KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1981 GDP (US$ billions) Gross domestic investmenffgdp Exports of goods and serviceslgdp Gross domestic savingslgdp Gross national savingslgdp Current account balancelgdp Interest paymentslgdp Total debffgdp Total debt servicelexports Present value of debffgdp Present value of debffexports Annex I O: Country at a Glance GHANA Land Administration Project (average annual growth) GDP GDP per capita EXDO~~S of aoods and services STRUCTURE of the ECONOMY (% of GDP) Agriculture Industry Manufacturing Services Private consumption General government consumption Imports of goods and services (average annual growth) Agriculture Industry Manufacturing Services Private consumption General government consumption Gross domestic investment Imports of goods and services Note: 21 data are preliminary estimates. Ghana o Sub- Saharan Africa Lowincome , Development diamond' capita Life expectancy - 1 Gross primary enrollment Access to improved water source - Ghana Low-income group Economic ratios* Trade L Indebtedness - Ghana Low-income group 2o 21 1 Growth of investment and GDP (%) c 35.9 ' I GDI +GDP [Growth of exports and imports (%) Exports +Imports 2. I L

87 ~~~~ ~~~ ~ Other Private Ghana PRICES and GOVERNMENT FINANCE Domestic prices (% change) Consumer prices Implicit GDP deflator Government finance (% of GDP, includes current grants) Current revenue Current budget balance Overall surplusldeficit ' i9 -GDP deflator *CPI "'I TRADE (US$ millions) Total exports (fob) Cocoa Timber Manufactures Total imports (cifl Food Fuel and energy Capital goods Export price index (1995=1) Import price index (1995=1) Terms of trade (199511) , , , , , Export and import levels (US$ mill.) 14, a Exports Imports I BALANCE of PAYMENTS (US$ millions) Exports of goods and services Imports of goods and services Resource balance , ,98 1, ,418 3,525-1, ,452 3,554-1,13 1 Current account balance to GDP (%) Net income Net current transfers Current account balance Financing items (net) Changes in net reserves Memo: Reserves including gold (US$ millions) Conversion rate (DEC, local/us$) , ,17.8 EXTERNAL DEBT and RESOURCE FLOWS (US$ millions) Total debt outstanding and disbursed IBRD IDA , , , , ,69 6 3,172 Composition of 21 debt (US$ mill.) I G: 64 A: Total debt service IBRD IDA Composition of net resource flows Official grants Official creditors Private creditors Foreign direct investment Portfolio equity World Bank program Commitments Disbursements Principal repayments Net flows Interest payments Net transfers D:544 c:284 A - IBRD E - Bilateral B. IDA D ~ multilateral F ~ C ~ IMF G - Short-tern Note: I nis table was prooucea rrom me ueveiopment tconomics central a a t a b a s b

88 Background Additional Annex 11 : Environmental Impact Assessment GHANA: Land Administration Project An environmental screening o f the project s potential environmental impacts on human populations or environmentally important areas was undertaken at the early stage of project preparation. The project was classified as Category B, reflecting the low degree of the perceived environmental risks associated with it. An environmental impact assessment (EIA) of the project was conducted under the auspices of 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 of this assessment i s that the project is expected to have positive environmental and social impacts including improved land administration and management, security of 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 in scope and negligible in magnitude. Land Titling: The project envisages no involuntary acquisition of land. Neither the allodial land demarcation, systematic land titling nor the civil works components would lead to any physical displacements or dislocation of people and communities or loss of assets and incomes or loss of access to assets. It is however, likely that there could be some instances of conflicts where titles and boundaries are disputed, particularly among landowners and claimants to titles. Even before the proposed project is implemented, the Borrower has secured assistance from GTZ to establish alternative land dispute resolution mechanisms. This would be tested and improved at the pre-implementation phase and applied in resolving disputes that would arise during the implementation of the proposed project. 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 of tenure and ownership, land administration and management, biodiversity conservation and sustainable resource use. Improved security of 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 of short- to medium-term job opportunities for both skilled and unskilled labor. For the construction works, 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 is not in dispute. The Borrower also has agreed that, in the 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. During the construction phase, the use of heavy equipment and construction vehicles and the removal of topsoil, tipping and stockpiling of sand and stone could increase the level of dust around the construction sites. However, given the type of civil works and other physical infrastructure to be constructed, it is unlikely that the quality of air would be adversely impaired through potential emissions of fumes (hydrocarbons), smoke, dust and particulates from asphalt plants, vehicles, equipment

89 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 of the selected sites could result in the generation of waste - both solid and liquid - in the form of excavated soils, pieces of 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 of 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 of equipment and machinery. The effective compliance and enforcement of ambient noise levels as indicated in the Environmental Protection Agency (EPA) standards and guidelines is crucial in preventing any human health problems. Regular dousing of the site with water would contribute to reduction in levels of dust emissions. The assessment report recommends that pollution abatement measures should focus on compliance and enforcement of national safety and quality standards as well as waste disposal guidelines. As part of the preventive and mitigation measures, the implementing agency, Ministry of 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 of nearby environs. For prevention of leaks and spillages from large quantities of 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 of the sites. The Borrower agrees to site all civil works in already built up areas where the original ecology has already been irreversibly influenced and biodiversity conservation, particularly plant and ecosystem conservation is currently not relevant. The Borrower agrees to ensure that the perimeters of the civil works are cleaned up of all debris and restored to a form similar to the original status before commencement of work. Construction sites would be planted up with grass and amenity trees to offer the sites acceptable levels of vegetation cover and aesthetics. The assessment revealed that it is 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 of the Ministry of Science and Technology could result in unacceptable landscape/ecosystem modification, albeit insignificant. Institutional Assessment: The EIA also involved an assessment of institutional capacities in country to ensure that key EIA-related functions including review of the EM, environmental monitoring, compliance (inspection) and enforcement, or management of preventive and remediation measures for the proposed project are implemented and monitored. The Government of Ghana has adopted a comprehensive National Environmental Policy (199 l), which aims at ensuring sound management of resources and the environment and to avoid any exploitation of 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 of prescribed acceptable environmental standards and safeguards. In addition, the state in 1994 through the enactment of the Environmental Protection Agency Act (Act 49) established an effective environmental impact assessment frameworkkystem, giving responsibility to the Environmental

90 Protection Agency (EPA) to ensure compliance with any laid down environmental impact assessment procedures in the planning and execution of development programs and projects, including even compliance in respect of existing initiatives. The Ghana Environmental Assessment Regulations, L promulgated in 1999 gave complete legal backing to the procedures under which the EPA ensures environmental management in the country. L.I 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 of dams, harbors and roads, logging and waste disposal. In pursuance of 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 of project-affected organizations to implement and monitor the mitigation plan. The findings show that the Borrower s designated authority with responsibility for environmental management in the country, the EPA, is well positioned to oversee the implementation and monitoring of the EM-related functions mentioned above under LAP. The corporate structure of 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. In addition, the project would have access to staff of the EPA regional offices, who would be available for ensuring effective implementation on site of 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 of Lands and Forestry for implementing EIA-related functions is 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 continued throughout the life of the project. The EPA, in consultation with MLF, as the implementing agency on behalf of the Government of Ghana, has agreed to report, within the broad frame of project M&E, on (i) compliance with the measures agreed with the Bank on the basis of the findings and results of the EIA, (ii) the status of remediation measures, and (iii) the findings of monitoring programs. The Government of Ghana fully understands that monitoring information would assist to evaluate success of mitigation measures as part of the overall project supervision, and allow corrective actions to be taken when needed. The M&E of the environment mitigation plan would be integrated with the project s overall design, budget, implementation, and M&E. Stakeholder Consultation: During the project identification and the EL4 process, the Ministry of Lands and Forestry consulted widely with project-affected 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 during the implementation of 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 of the EA reports) to project-affected groups, CBOs and NGOs prior to consultation. The MLF will officially disclose the draft EA to these entities through advertisement in two local daily newspapers - The Daily Graphic and The Ghanaian 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

91 incorporated into the final EIA report. On the basis of the findings from the analysis of extent of 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 magnitude of impacts and benefits Health and Safety Employment-and Income Conflicts Scores: Impacts are scored on a basis of to a maximum of 3. The numbers reflect the magnitude of the impact, where 1 is a slight, insignificant impactbenefit, 2 a moderate impactbenefit and 3 a significant impactbenefit. A indicates that no adverse impact is expected. Benefits are indicated by a positive (+) sign and adverse impacts by a negative (-) sign

92 Background Additional Annex 12: Social Assessment GHANA: Land Administration Project As a prelude to project preparation, a rapid social assessment (RSA) was conducted to identify the key stakeholders of 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 of the RSA was to determine whether customary authorities, under whose stewardship 8 percent of the country s lands lie, will recognize the need for the project, accept its importance and usefulness to their roles and responsibilities as custodians of the lands, and commit themselves to support and participate in the design and implementation of 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 of the Ministry of Lands and Forestry, heads and staff of the public sector land agencies, Greater Accra-based Customary Heads of Stools and Family lands, civil society and the private sector (surveyors and realtors). The Team Leader and some members of the Project Preparation Team attended the RSA findings validation meeting. The discussion that ensued further enriched the findings. The key findings of the RSA were analyzed for each of the major stakeholders. The interests of the stakeholders, the positive impacts of the project, its possible negative impacts or risks and possible mitigation measures for these are summarized in a matrix form in Attachment 1. Highlights of the RSA findings are presented below. Land Ownership and Administration There are four categories of 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 of appropriate legislation and held in trust for the entire people of 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 of 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 of the 1992 Constitution is legally recognized as Act. 267 (5) bars creation of freehold interests in land out of Stool land and by implication Skin land as well]. The Lands Commission is responsible for and managing State and vested lands and for providing consent to the disposition of stool, skin and family lands provided the development is consistent with the approved planning schemes of the area. Private lands, estimated to account for more than 8 percent of 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 of 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 in accordance with their customary laws. Although allocation of usufruct rights is retained by the allodial owners, the Office of the Administrator for Stool Lands (OASL), collects rents and distributes the proceeds in accordance with the provisions of 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 1 percent to cover its administrative expenses as provided in the 1992 Constitution

93 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 issuing title certificates; (b) the Survey Department responsible for cadastral, geodetic and hydrographic surveying and the production of base maps and cadastal plans for each individual parcels of land for which title certificate is 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 of 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 of these agencies operate under the Ministry of Lands and Forestry except TCPD which is under the Ministry of Science and Technology. Performance of the State and Public Sector Land Agencies State Land Acquisition. The power to acquire lands by the State has been exercised in a manner that has adversely impacted many allodial land owners who harbor several grievances against the State. First, the procedure for acquisition by notification of affected persons of the intent to acquire lands in the local newspapers is highly unsatisfactory, considering the predominantly illiterate society in the rural areas. Kasanga notes that so inadequate is 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 is 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 is woefully inadequate to cover the inconveniency of dislocation and acquiring land in other location and starting a new life altogether. Third, affected land owners complain that some of 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 of the original owners. Fourth, large tracts of land forcibly acquired by the State remain unutilized and allodial owners of land do not see the rationale why the land was forcibly acquired from them if it were to lie idle for a long period of time. The problem is acute in the urban areas, particularly in the Greater Accra Region, where an estimated 5 percent o f lands of the Ga has been compulsorily acquired by the State in creating the city of Accra. Consequently, Ga indigenes have access to very little land. Moreover, compensation has not been provided for several of these acquisitions. The La 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 of land compensation in the country. In the case of the Dansoman Estates land acquisition in Accra, the State Housing Company rehsed to pay the agreed annual rents to the affected landowners, despite the huge benefits it derived from land sales. Participants of focus group discussions (FGDs) indicated that the government s compulsory acquisitionhesting of private lands without any consultation nor approval by customary authorities, non implementation of proper resettlement of displaced persons and continued non-payment of just compensation have affected negatively their perceptions of obtaining justice from the State. Filing cases in court has practically drained them of financial resources which could have been invested in the delivery of social services. They said that the wheels of justice 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

94 system and sustainably administer and manage the country s lands and natural resources. Fortunately, the new NPP Government is acutely aware of these problems and has demonstrated its political will to address the issues of 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 registering land transactions. Concluding land transactions take anywhere from two months to three years or more, sometimes costing more than the price of the transaction itself. The low level of staff compensation lead to rent seeking behaviors that add to such frustrations. Furthermore, there is no culture of cooperation and sharing of information and records. In one survey, one third of respondents who were engaged in land transactions stated that they had no intention of going through the ordeal of 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 of respondents spending some Cedis.5-1.O Million. Distrust of the manner in which District Assemblies utilize revenues generated by the stool lands appears strong, especially in the rural areas. Customary authorities lament the apparent lack of rationality by which development projects and activities are selected, and the lack of proper consultation, in disbursing 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 of 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 of 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 of the customary land authorities are organized, like the Asahantene s Land Secretariat and the Gbawe Family Land Council to discharge their function of land administration effectively. The Gbawe family owns land at the outskirts o f Tema town. Their land council has reserved a large tract of land that is systematically planned for the construction of 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 of leased land in rural and some urban areas are verbal despite the Administration of Stool Lands Act of 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 of the same parcel of land that are causes of 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 of using the services of 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 in some 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. In the Upper East and Upper West regions paramount and lesser chiefs were introduced by the - 9 -

95 Colonial Government. The true administrators of 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 of 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 of the land without the consent of the land owners. This accounts for the mounting number of court cases where rights to the same parcels of lands are being claimed by various individuals and groups. For most parts of rural Ghana, customary councils interviewed indicate that settlers sub-letting to relatives of agricultural lands, and/or expansion of the area being cultivated beyond the area granted to them (without the consent of the land owner) as the most common forms of violations committed against the land owners. Generally, rural land is 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 of confidence in the land adjudication system, in the judicial system to swiftly resolve land disputes and in the land market is prompting some of the landowners and lessees to hire land guards. This is specifically observable in the Greater Accra region, and has strong probability of replication in other regions where conflicts on land are obtaining (Ashanti, Eastem, Brong-Ahafo and Northern regions). In some parts of 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 of Gbawe family lands, migrants allocated plots along the stool s boundaries are mobilized to patrol the boundaries of the lands and are required to report unauthorized occupation. Land Dispute Resolution In the Ashanti region, disputes involving demarcation of boundaries 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 of the elders of 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 of the lands or their representatives, elders, members of the village development committees and the youth. Land can only be allocated subject to the approval of the customary owners. The LACs monitor any encroachment or violations of customary land laws. Conflicts regarding boundaries are settled among members of the community with the assistance of the LACs. If a conflict is irresolvable at that level, the problem is 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 of members of 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 of both stools meet to resolve them. The Ashanti model of a land dispute resolution mechanism using local institutions and participation of the community should be encouraged and promoted in all areas to avoid and minimize protracted and

96 costly land litigations in the courts. Women s Access and Rights to Land: Women can access land for use o f residential and agricultural purposes. However, ownership of land by women is 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 of biases against women when it comes to acquisition and ownership of 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 of 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 by their in-laws to leave their conjugal home a few months after their husband death. In Tamale, however, Lands Commission representatives indicated that women are actually active in land acquisition by themselves, but request secrecy of 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 of land. Research studies should be commissioned, if the Project wishes to establish the situation in all major ethnic groupings in Ghana. The Women Association of Tomato Growers in the Upper East region are finding it more and more difficult to lease agricultural lands in the 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, should these lands be converted to other use, their income will be reduced. In the absence of any empirical evidence, the RSA could not conclude the relative incidence and severity of gender biases regarding ownership and of landed properties in Ghana. It is recommended that a special study addressing this issue be conducted as a matter of high priority under the project to guide policy and legislative considerations and implementation of the project. Social AcceptabilitV of the Proiect Although awareness of the land mark Land Policy of 1999 i s generally low, social acceptability of the proposed project is high at the central and regional level. Customary trustees of land and the community/family elders in the urban and rapidly urbanizing areas are willing to pursue demarcation of properties and assist in negotiating and settling boundary disputes, using customary 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 of 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 of the Ashantis, Asantehene Otumfuo Osei Tutu 11, summed it up by saying, This Project is long overdue. Comparing the intensity of reactions generated by the presentation of 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 of lands, encroachments, and other pressures on land brought by the requirements of rapid urbanization. In the Greater Accra Region alone, about 15, land cases are pending before the courts

97 In both urban and rural areas, customary land authorities see the Project as an opportunity to discuss and negotiate with the State for the repeal of perceived oppressive legislation that have contributed to the usurpation of powers vested in customary forms of governance. In general, there is 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 of Chieftaincy, it was observed that generally, the ChiefdClan Heads continue to be the center of the communities social and political life. Public land sector agency officials at district offices who participated in the meetings and FGDs appreciate the concept of the proposed Project, and look forward to its immediate realization. Regarding the idea of 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 of information among themselves. However, lack of 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 is timely. Institutional transformation is both demanded at the community and government institutions levels. The proposed project can provide the necessary opportunities for productive interaction, to promote the development of trust, effective institutional linkages, among the local government authorities, national land agencies and the customary authorities. The challenge is to design the most appropriate, integrated institutional structure responsive to the emerging requirements for effective and sustained participation of customary leaders and communities in land administration decision-making; develop workable mechanisms to ensure transparency of transactions in all levels; and formulate practical communication/feedback systems to ensure that all stakeholders are informed of what structural and institutional changes are happening as the project progresses. The low level of 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 of 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 of the information and education program for each of 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 is important is to ensure that participatory processes are employed in defining the objectives of the partnership, the mechanisms required to be set up, the roles and responsibilities, including the corresponding authorities of each institution, and the means by which the commitments of each party to the partnership will be provided, monitored and evaluated. Considering the possible biases against women and migrant tenants, it is strongly recommended that the project s institutional design for delivery at the community level must ensure the representation of 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

98 The most difficult challenge to the Project still lies in how 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 of government. The objectives of 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 Administration Project s empowerment objectives. In the final analysis, absence of such a commitment maybe the biggest risk to Project success. itakeiolders :overnment.and Lgencies Interests on Land Administration Coherent set of land laws incorporating state and customary interests uniformly applied throughout the country Efficient land information system installed up to the community level Individuals have equitable access & security of tenure based on registered land Protected rights of landowners and their descendants Discipline in the land market Resolution of land boundary disputes Decentralized land delivery services with customary authorities and communities as partners Documentation of all land transactions Appropriate revenue from land transactions to sustain government operations and attract competent and dedicatec personnel General orientation and acceptance by the public of the Land laws and support for their implementation Weeding out of incompetent surveyors and unscrupulous land agents to restore investment confidence in the land market Ghana Land Administration Project Stakeholder Analysis Positive Project. Impact 1 Interests DProject will address need to harmonize state and customary laws through review and development of relevant legislation,project will install and support systems to produce comprehensive data base of the country s land resources DWith appropriate documentation of transactions, both landowners and leaseholders will be more secure D Capacity-building will be a major component of the Project, up to the community level, and information dissemination will form part of a massive information education program Income from land transact-ions will be more definite as rules are defined and agreed upon,land adjudication and management committees involving community representatives set-up with help of the Project will facilitate monitoring of activities of private sector agents ossible Negatiw roject Impact 1 Risks Structural mergers will be inevitable, to facilitate delivery of service and make land administration systems more efficient. Participatory natur of the project involving local communities and securing o f land administration records may make rent seeking behavior difficult. Resistance to such changes is highly likely and may make institutional restructuring very difficult Possible Mitigation Measures Organization development efforts must be incorporated in the Project Design to ensure that the required procedural and behavioral changes will be understood, accepted and supported by each civil servant in the bureaucracy Political will on the part of the Ministry s management to execute the desired changes must be demonstrated, to send the right signal to everyone concerned Management must be equipped with advanced conflict resolution skills (alternative dispute resolution methods) to be able to resolve conflicts on the basis of interests and not positions

99 'takeolders 'arliamen nd :xecutive udiciary Interests on Land Administration Enactment of relevant laws which will operationalize Constitutional provisions invoking inclusiodapplication of customary laws in govemment operations Economic development within the framework of sustainable land use Equality of access, acquisition and utilization of land resources by both genders Sustainable resource generation to support country's development efforts Coherent set of land laws which can be referred to for rendering judgment on cases filed by petitioners in court 1 Reliable information from Land Agencies to use as basis for rational and fair judgment of cases involving land disputes 1 Reduction in land litigations to relieve congestion o f court cases and overload of work on judges Positive Project. Impact on Interests Review and development of relevant legislation will be undertaken by the Project. Stakeholder participation in identifying the Agenda for review and development will ensure relevance of desired legal interventions to their needs Studies to determine requirements for sustaining operations of the systems to be installed will be conducted Participation of customary authorities can generate financial counterpart funds from communities, which can reduce government costs in deliverv o f services Project will contribute to review and development o f land legislations Project will install systems which will enable land agencies to access reliable information which can be provided to the courts, when called upon 1 Introduction of land tribunals supported under the project will fast-track decisions on land disputes 1 With active involvement o f customary authorities and communities in resolution o f land disputes land-related disputes elevated to the court are expected to be reduced Possible Negative Project Impact or Risks None identified There may be resistance to introduction of land tribunals Possible Mitigation Measures Tot necessary 4wareness campaign on :he usefulness of land tribunals

100 Itakelolders Ietropolitanl Iistrict memblies rational and Legional [ouse of lhiefs Interests on Land Administration Boundaries between and among stools, sub-stools and family lands clearly established so that development planning can take place with legitimate owners participation Land transactions properly and accurately recorded, to be able to reduce boundary conflicts within their areas Orderly development of urban and periurban areas Investors confidence in the land market improved as a result of secure tenure and reliable land records and streamlined procedures and processes for land acquisition, leading to economic development Increased revenue from ensuing thriving land markets Respect for customary authorities capacity to contribute to better land administration delivery systems Delineate the powers o f the state and customary authorities in allocation, acquisition, utilization and disposal of the country s land and natural resources Inclusion of applicable customary practices in land administration concerns Community involvement in monitoring land transactions, to ensure that benefits accrue to displaced members of the communities Identify Chiefs who are involved with anomalous land transactions, as reported by studies conducted, as they destroy the credibility and sacredness of the position Reduction in land litigation before the courts Positive Project. Impact on Interests Project will initiate demarcation of boundaries between properties. Land transactions will be documented and information properly stored to enable fast retrieved. Accurate land records facilitate land use planning and orderly development of urban and periurban land With increased security in land transactions, investors will have more confidence in the country s land market Project supports Constitutional provisions describing integration of customary values and practices to relevant aspects of national life Project will cause the review and development of legislation, which will take the best and the finest aspects of customary rule Project will establish existing profile of land ownership; fraudulent practices will be exposec by the process of getting communities engaged in these activities Project will design the most suitable/feasible institutional arrangement to: protect the community against fraud and force; prevent violence and arbitrariness and ensure fulfillment of legitimate contracts and relations established by such contracts among human beings With active involvement of customary authorities and communities in resolution of land disputes land-related disputes elevated to the court are expected to be reduced Possible Jegative Projec mpact or Risk! No foreseen negative impact on interest. The Assemblies stand to gain a lot with the implementation o the Project It is a possible that Assemblies may be threatenel by customary authorities interest to participate in decision making over how land revenues would t shared and spent. No foreseen negative impact a of preparation of this document ossible Mitigation Measures Representatives from the Assemblies must be made to understand, accept and commit to the new institutional arrangements and see the involvement of customary authorities as a strategic advantage in boosting economic growth and alleviating poverty in the areas. The possibility of sharing a much larger revenut from a thriving land market will facilitate shared interest and cooperation. 4ot necessary

101 takeholders Interests on Land Administration Demarcation of aramount Chiefs, boundaries within the :Ian and Family stoollskin, and [eads, Members 1 boundaries in relation to le Customary other stoolshkins :ouncils m Deeds granted and records kept by customaq authorities and local governments m Information made available regarding status of undeveloped lands vested in government Government respect for their customary authority to administer lands ligrants and mints m Their tenure of land is secure and their access to land facilitated m Honoring of oral land leases; m Determination of land boundaries Positive Project. ImDact on Interest Maps of boundaries drawn and existing rights recorded with active involvement of Customary leaders and family representatives Legislative and institutional reforms under the Project will recognize customary authorities powers to allocate, utilize, and dispose land resources and delineate land administration responsibilities betweer them and public land administration agencies Project may lead to improved security of leased land and development of better terms and conditions Documentation of agreements and their enforcement will be a public concern, as terms are negotiated in a transparent manner Possible Negative roject Impact or Risk Customary authorities ma feel threatened by capacity-building efforts of the Project to be launched at grassroots level and resist reforms sought under the Project Chiefs involved in fraudulent practices may not support the Project and may mount heavy resistance and frustrate information gathering, boundary demarcation ani land titling and registration activities 1 With low levels of literacy, and much of tenural arrangements undocumented, landowners may tend to renege on their oral agreements or try to limit tenants rights Possible Mitigation Measures Identify and isolate potential hotspots to intensify community land awareness and mobilization program (CLAMP), allow community to decide how best to neutralize Chiefs resisting reform. Government can demonstrate political will to enforce accountability and transparency in land transactions by asking Houses of Chiefs to sanction erring Chief or To alleviate fears, process 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 them better leaders of thei communities Tenants should be represented in village committees to ensure that their interests are heard and that principles o f fairness and justice are applied in securing oral lease agreements Rules for reviewing land leases and rentals should 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

102 #take-.olders 'rivate urveyors Interests on Land Administration D More secure access to land fox Vomen agriculture or residential use D Registration of their rights ove trees which their ancestors were allowed to plant or collect fruits from trees on other families' lands D Inclusion of name in the Certificate of Title to be issuec D Right to acquire property D Participation in decision-making if conjugal property were to be leased or alienated for longer duration D Participation in monitoring land transactions to ensure transparency in allocation and administration of communal property of the family or stool iar D Consistent and coherent laws issociatio in land administration D Accurate Information on land resources, to obtain facts on land disputes being litigated D D Participation in Project activities for survey work Exposure to better technologies in survey work Positive Project. Impact on Interests 'Project will ensure women involvement in village committees to be set up for Project implementation I Project will sponsor further studies into gender considerations relative to acquisition, ownership, utilization and disposal of lands to inform legislative and institutional reform 1 Review and development of relevant laws will provide employment opportunities to lega luminaries interested in shaping the political structure of Ghana 1 Data base to be established by the land administration information system will be usehl to their interests 1 Contracting opportunities for survey work will open up 1 Surveyors will receive training both in the training institutes and short courses organized by the Survey Department and the universities 1 Community and customary authorities' involvement in Land Adjudication Committees will speed up survey work 1 Improved licensing procedures will strengthen the profession and its ethics Possible Negative Project Impact or Risks In patrilineal societies. women participation in village committees may be rejected by predominantly male leadership in the villages Possible loss of income for lawyers as a result of reduced land disputes appearing before the courts and for those who are interested in dragging land litigations No foreseen negative impacts, except the weeding out of "quack" surveyors who victimize illiterate landowners Possible Mitigation Measures Mount aggressive awareness programs for women through the media and by involving civil society and NGOs Not necessary 1 Not necessary

103 Interests on Land Administration Accurate information on Private existing land use on which to Appraisers1 base fair valuation of land Valuers and land based properties for transactions Reserving valuable lands for Youth their future access Access to information about land being allocated or sold by their elders and Chiefs Protection of their ancestral lands from encroachers More accountability by the Chiefs and Elders relative to income generated from land administration Civil Protect the rights of rightful Society owners of lands Organi- Engage in community zations/ awareness programs to educate NGOs citizenry on their rights in land administration and obligations Foster alternative land dispute resolution mechanisms Establishing partnerships with government for people s participation in local governance Active participation in information campaigns to inform citizens of their rights and how to obtain due process Promote transparency and democracy in national and local govemance Vital issues which can attract listenerdviewers to increase their ratings Positive Project. Impact on Interests Project will establish accurate land information and institutionalize its periodic update Participation of youth in village committees and their participation ir land awareness and mobilization committees will enable them to access information they need to check the Customary Council members who err in their commitment to serve the interests of the community Project offers opportunities for NGOs in community organization work, to: 1 systematically deliver information and education programs on the provisions of the National Land Policy; and 1 ensure organized participation of communities in demarcation of land boundaries, and Land is such a hot issue that media (print, broadcast and television) can be tapped as Project partners to have a massive outreach program to educate the public on ongoing debate in policy formulation, legislative and institutional reform and the application of laws, rules and regulations governing land transactions. The media will be particularly useful, especially in the urban and peri-urban areas, where radio and television broadcasts are usually devoted to community news. Possible Negative Project Impact or Risks No known negative impact Exclusion of youth from active participation in village committees If work relationship is not clarified well and the rules of engagement are vague, NGOs or government may be frustrated by outcome If NGOs engages in hostile advocacy work, public land agencies may isolate them and make difficult their access to government resources for community capacity-building work 1 No negative impact as Possible Mitigation Measures Not necessary Awareness campaign Interested NGOs that wish to participate in Project implementation must be properly oriented, trained, and provided with supportive monitoring work for effective collaboration with the project Not necessary

104 Additional Annex 13: Statement of the Government of Ghana on Land Policy GHANA: Land Administration Project 1. Background Ghana is 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 of access to land, security of land tenure and prudent use of the nation s land resources determines the pace of 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 of customary and common law is beset with a number of problems, contributing to the slow pace of 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 of these objectives and the Government s land policy that will be achieved through specific reforms targeted at the source of the land sector problems are consistent with the objectives of the GPRS. 2. Major Constraints of the Land Sector Overtime, as land became more scarce, indigenous arrangements under which individual members of the lineage enjoyed general rights of access to land have been rendered untenable. Indigenous tenancies have been generally replaced by sharecropping (abusa and abunu systems) that enabled local land owners to gain labor for their farms. Commercial transactions in land and the transformation of 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 of legislation to deal with specific problems in an ad hoc basis, not forming part of a comprehensive policy of land acquisition or land use administration. It was the realization of the need for more coherent long term land policy and its effective administration that instigated GOG to develop a national land policy and seek ways of implementing it. A number of land sector constraints that require immediate attention have been identified in many previous land administration related studies and summarized in the National Land Policy document. The main sector issues can be characterized as follows: inadequate policy and legal framework; fragmented institutional arrangements and weak institutional capacity; weak land administration system, that excludes land owners and chefs from major decisions on land administration; underdeveloped land registration system and inefficient land markets; and compulsory acquisition by Government of large tracts of land without payment of compensation These issues have given rise to: indeterminate boundaries of customarily held lands, spawning massive land disputes and litigation; inadequate security of land tenure, undervaluing urban property, making it difficult to use land values as collateral for loans and depressing - 1-

105 3. national and local government revenues; difficult access to land, thwarting both urban and rural development; and general indiscipline in the land market. Objectives of the Land Policy The objectives of the land policy that will address these constraints are to: harmonize statute and customary laws to facilitate equitable access to land and enhance security of tenure of land through registering systematically all interest in land; minimize and eliminate where possible the sources of 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 of 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 of 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 planning within 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 is to secure the best optimum economic, financial and social returns towards a self financing land policy. 4. Land Sector Reforms The objectives of the land policy will be achieved through policy, legislative and institutional reforms. i. Policv Reform: The development of appropriate land policies is a dynamic process that the 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 of the populace. In this regard, state and vested lands have become vexing issues, creating mistrust between the state and allodial land owners. The situation of vested lands and compulsorily acquired lands for which compensation has not been paid will be reviewed with the aim of: determining whether the rational for vesting of land is still valid, where the conditions do not merit continued vesting to restore the land to their customary owners; using divesting of land as an incentive for settling disputes with customary owners; consolidating land required for public service; surrendering those which are in excess of public requirements; and paying compensation for those which are still required in the 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 of coherent and consistent legislation to support land administration. Communities would be empowered to use

106 alternative mechanisms to resolve land disputes. Land tribunals would be reintroduced to expedite the resolution of the land disputes that cannot be dealt with at the community level and to clear the staggering number of pending land cases before the courts. iii. Institutional Reforms: 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 decentralized and the capacity of 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 of land administration both to the public land sector agencies and customary land councils to expedite land titling and registration and processing of land transactions. 5. Land Administration Program: The reforms outlined above would be implemented through the Land Administration Program, which is a long term commitment by the Government of Ghana to enhance economic and social growth by improving the security of tenure, simplifying prudent land management by establishing an efficient system of land administration both state and customary, based on clear, coherent and consistent policies and laws supported by appropriate institutional structures. The long-term program would result in: a clear, coherent and consistent set of land administration policies and laws; a clear hierarchy of customary land holdings and capacity to dispose of land which will lead to a formal recognition of the rights of all categories of land holders and facilitation of recording of these rights in an enhanced and decentralized land administration system; an efficient decentralized land administration system operating throughout Ghana in accordance with Government policy and compatible with cultural usage and responsive to the needs of the people, within a self-sustaining financing mechanism; an up-to-date, efficient land information system that supports good land records management and transparent transactions in land; and a well functioning land market operating in both urban and rural areas. Given the complexity of the issues, it has been estimated that it will take more than 15 years to complete the implementation of the Program. Based on international experience, it is felt prudent that the Program be implemented in three five-year phases, particularly given that Ghana has a very complex hierarchy of interest in land. There are many stakeholders and the emphasis on the first phase would be a range of studies that seek to confirm policy detail within the framework of 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 proven methodologies that can be used to scale up these activities under subsequent phase of the long-term Land Administration Program. The first phase of the Program would be implemented through the Land Administration Project. The project has the objectives of: 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;