INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: August 28, 2014 Report No.: 90459 1. Basic Project Data Country: Timor-Leste Project ID: P148264 Project Name: Building Capacity for Land Administration Services to Communal Lands Project in Timor-Leste Task Team Leader: Keith Clifford Bell Estimated Appraisal Date: October 2014 Estimated Board Date: NA Managing Unit: GURDR Lending Instrument: Trust Fund Sector: Agriculture and Rural Development (30%), Infrastructure (30%), Law and Justice (30%), Trade and Investment (10%) Theme: Conflict Prevention and Post Conflict Recovery IBRD Amount (US$ m.) : 0.00 IDA Amount (US$m.) : 0.00 GEF Amount (US$m.) : 0.00 TF Amount (US$) : 3,000,000.00 Other financing amounts by source: Nil. Trust Fund: Stability and Peace Fund (SPF) Environmental Category: B Repeater Yes [ ] No [X] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies) 2. Project Objectives A. Proposed Development Objective(s) The project development objective is to build the government’s capacity to provide land administration services for communal lands. 1 B. Key Results The Project is expected to deliver below key results: (a) Policy and guidelines for communal lands is prepared and submitted to the Ministry of Justice; (b) At least 70 percent of staff trained on land administration and management; and (c) Policy and guidelines for Community Protection Zones (CPZs) is prepared and submitted to the Ministry of Justice. 3. Project Description A. Project Components Component 1: Communal Lands Policy and Public Engagement (US$915,000). This component would support the preparation of a set of policy studies and the development of awareness raising strategies and information materials on communal land rights. The development of these studies would be subjected to a series of consultations involving all relevant stakeholders, which may include the participants in the Land Governance Assessment Framework (LGAF) that the Bank will support separately through the Korean Trust Fund for Knowledge and Learning. Sub-Component 1.1: Policy Development. This would support the conduct of strategic policy studies in critical areas of communal land administration and management and include: (a) Policy Study on Communal Land Administration and Management. This study will review the current approaches and provide recommendations for strengthening land administration and customary practices. It would cover: (i) the definition of communal land and methods by which these are currently administered and managed; and (ii) the mapping and demarcation of communal land boundaries; and (iii) the preparation of a comprehensive communal land policy strategic framework; (b) Guidelines and Procedures re Decentralization of Land Administration and Management. This study would cover the development of guidelines and procedures for: (i) service delivery to communal land areas; (ii) urban and peri-urban land management; and (iii) land acquisition and land conversion in urban and rural areas; and (c) Guidelines and Procedures on Dispute Resolution. This study would cover the existing dispute resolution mechanisms (official and customary) with regard to land and property. It will also review the experiences and good practices in Timor-Leste and other parts of the region. Additional studies may be defined as required following the above policy studies. This subcomponent would finance the strategic policy studies and any subsequent dissemination activities including printing, travel and workshops. Sub-Component 1.2: Public Awareness Raising and Engagement of Civil Society. This would assist the DNTPSC in developing public awareness raising and community engagement strategy and program regarding communal land rights. The activities would 2 include: (a) design and pilot testing of gender-sensitive information, education and communication (IEC) materials on communal land rights, tenure arrangements and general awareness on governance; (b) training of DNTPSC staff and local NGOs to undertake village level information dissemination campaigns; and (c) conduct of targeted outreach programs for women and vulnerable groups on their land rights under the current legislation and in relation to the draft land law. In addition, a government-civil society working group on land will be established to serve as a forum for exchange of information. The main outputs will include a public awareness raising and community engagement strategy, handbook of procedures and IEC materials for awareness-raising at the grassroots level. This sub-component would support the training of a pool of master trainers and local NGO community facilitators in the adoption of the program. This subcomponent would finance the public awareness raising and community engagement strategy and program preparation and any subsequent dissemination activities including printing, travel and workshops. Component 2: Institutional Strengthening to Improve Land Governance (US$1,110,000). This component would support the strengthening of DNTPSC to enable them to cope with their new and expanded role in the management of the registry, state property and regulation of land ownership. Sub-Component 2.1: Institutional Assessment. This would support the review of the institutional arrangements of DNTPSC aimed at improving their capacity and delivery of land administration and other cadastral services. The assessment would: (a) determine the existing capacity, structures and institutional arrangements at the national and district offices, vis a vis the current and expanded roles and responsibilities in providing land administration services; and (b) recommend priority areas to strengthen human resources and staff development. This subcomponent would finance the institutional assessment. Sub-Component 2.2: Capacity Building. This would support the preparation and implementation of a Capacity Development Program for DNTPSC’s national and district offices. It will draw from the results of the institutional assessment and other inputs. A training needs assessment will be conducted and a training plan prepared. Activities will include training sessions and workshops, on-the-job training and capacity building at selected land offices and south-south learning events. Areas for capacity building would include policy development, understanding the requirements of a communal land registry, surveying, adjudication, land records management, public awareness raising, land information systems (LIS), information management, service delivery and complaints handling. This subcomponent would finance the preparation and implementation of the capacity development program as well as any implementation monitoring, and further preparation of, materials, travel, conference fees and additional workshops. 3 Sub-Component 2.3: Capacity Building for Land Dispute Resolution. This would support the DNTPSC’s staff responsible for land dispute resolution to improve their capacity to process claims received. Drawing upon the study subcomponent 1.1, a training needs assessment will be undertaken and a training plan will be developed and implemented. The training would be based on the guidelines and procedures on existing and alternative dispute resolution mechanisms to improve the staff’s mediation and resolution skills and techniques. The experiences gained from implementing this sub- component are expected to feed into the establishment of the proposed Cadastral Commission. This subcomponent would finance the preparation of the land dispute resolution training needs assessment, development and implementation of the training program and any implementation monitoring, and further preparation of, materials, travel, conference fees and additional workshops. Sub-Component 2.4: Land Information Management. This would support the DNTPSC to undertake land information management which is essential for the land administration system. Activities would include the preparation of a strategy that will guide the government in launching a program to modernize the existing land administration system and meet the demand for timely and updated land administration information by government agencies involved in land administration under a national LIS, i.e., development of protocols for data sharing at different levels of government and with external stakeholders. The land information plan will include an outline for the government’s strategy for National Spatial Data Infrastructure (NSDI). The outline for the NSDI strategy may encompass, among other things, legal requirements, the identification of the lead agency role and foundation data custodians, as well as considering arrangements for national geoportal. Training activities would also be undertaken to provide the staff with additional knowledge on land information management, use of LIS and awareness of NSDI. This subcomponent would finance the preparation of the land information management strategy, hardware and software for land information management, training workshops and travel. Component 3: Administration and Management of Communal Land (US$325,000). This component would support the DNTPSC’s preparation of guidelines and procedures for the administration and sustainable management of communal lands which include: (a) surveying of communal land; (b) participatory mapping of individual and community land rights for official adjudication and registration; (c) updating and completion of spatial data coverage; (d) updating and completion of cadastral records in communal land (i.e., areas used by community groups and by individuals); (e) improved storage, access and updating of land use information; and (f) administration and management of CPZs, including requirements for community consultations according to the established principles of Free and Prior Informed Consent (FPIC). This component would also support DNTPSC’s national and district offices’ adoption of the procedures and guidelines. 4 This component would finance the preparation of procedures and guidelines, as well as any training workshops, travel, testing of community land mapping and further costs for printing of additional materials. Component 4: Project Management (US$650,000). This component would support the overall supervision and coordination of project activities. These include ensuring monitoring and evaluation (M&E) of activities and targets, and compliance with safeguards and fiduciary requirements. Technical Assistance (TA) will be engaged to support project management and improve the in-house capacity of the DNTPSC. Training will also be provided in project management, M&E, planning, financial management and procurement. This component would finance the consultants for the Project Management Unit, printing, hardware and software for project management, travel and workshops. 4. Project Location and Salient Physical Characteristics Relevant to the Safeguard Analysis The project interventions will be delivered in form of TA and training of DNTPSC at national and district levels, specifically to: (a) prepare policy studies and draft regulations and implementing guidelines; (b) build up capacity of the DNTPSC to provide services to communal lands; and (c) drafting of operations guidelines and procedures for participatory mapping of individual and community land rights, preparation of a work plan and cycle for public consultations and awareness raising on communal lands, and preparation of manual and guidelines for FPIC on economic activities within the demarcated CPZs. These drafts will be consistent with the Government’s and Bank’s safeguards policies and guidelines and consultants’ Terms of Reference (ToR) will be drafted accordingly. As the proposed activities under this project will only involve technical and analytical assistance, advisory services, and building capacities of the GoTL’s to design, pilot, and roll-out a national program for strengthening communal land tenure security, there will be no civil works or tangible investment with salient physical characteristics to be supported under this project. 5. Environmental and Social Safeguards Specialists Ross Butler, Senior Social Development Specialist (GURDR) Kian Siong, Environmental Specialist (EASIS) 5 6. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggere Explanation (Optional) d Environmental Yes The Environmental Assessment policy is triggered as the project activity will result Assessment OP/BP in drafting of guidelines and procedures for the administration of CPZs and 4.01 community lands, development of procedures for mapping, demarcation and identification of CPZs and drafting of a comprehensive communal land policy strategic framework – all of which have the longer term, downstream potential to have impacts on land use and individual and community rights. The policy frameworks, procedures, guidelines, strategy, plans and assessments and their ToR will include environmental and social elements which will be informed by policy requirements of OP 4.01 and other relevant applicable Bank safeguard policies. The relevant ToR will be cleared by the Bank. Natural Habitats Yes The Natural Habitats policy is triggered due to the potential downstream impacts OP/BP 4.04 that could arise from any policies and procedures that are ultimately adopted by government on Natural Habitat. Draft policies for the demarcation and registration of community lands and for the demarcation of CPZs will be informed by OP/BP 4.04. The drafting of the Operational Procedures for the registration of community lands will also pay particular attention to natural habitats and ensure that the relevant requirements of the policy are integrated into the procedures. Pest Management No The project will not undertake any activities related to pest management. OP/BP 4.09 Forests OP/BP 4.36 Yes The Forests Policy is triggered due to the potential downstream impacts that could arise from any policies and procedures that are ultimately adopted by government on Forests. The preparation of draft policies and procedures for the demarcation and registration of communal lands and for the demarcation of CPZs will aim to facilitate proper mapping of forest areas and forest lands for management purposes, and will incorporate relevant principles of OP/BP 4.37. Physical Cultural Yes The Physical Cultural Resources Policy is triggered due to the potential Resources OP/BP downstream impacts that could arise from any policies and procedures that are 4.11 ultimately adopted by government on Physical Cultural Resources.. The project will not involve any civil works nor is expected to affect any Physical Cultural Resources. Nevertheless, the preparation of draft policies for the demarcation and registration of communal lands and for the demarcation of CPZs, including the drafting of Operational Procedures for the surveying and registration of community lands will include identification and mapping of any PCR identified through the process and reporting to proper authorities within the country. 6 Indigenous Peoples Yes The Indigenous Peoples Policy is triggered due to the potential downstream impacts OP/BP 4.10 that could arise from any policies and procedures that are ultimately adopted by government on Indigenous Peoples. The Project will benefit Indigenous People of Timor-Leste through the preparation of policies, regulation and capacity building of the DNTPSC. Given Timor-Leste’s complex social history, as part of project preparation, SSLP/DNTPSC would require a Social Assessment (SA) to inform the project design based on international good practice standards and in accordance with Bank policy on IP. However since this is a TA and the ToRs. This is a TA and the ToR for the policy process as well as the consultations around the policy process will reflect the principles of OP 4.10 (including measures for conducting and complying with FPIC requirements of OP 4.10). In this regard it is noted that the Government proposes to achieve FPIC as stated by the UN Declaration on the Rights of Indigenous Peoples (UNDRIP). The SA to be undertaken prior to the start of all other activities will identify the potential social risks and key IP stakeholders who should participate in decision-making in accordance with Bank policy. Preparation of an Indigenous Peoples Plan is not required. Involuntary Yes The Involuntary Resettlement Policy is triggered due to the potential downstream Resettlement impacts that could arise from any policies and procedures that are ultimately OP/BP 4.12 adopted by government on Involuntary Resettlement. Although the project will not involve any relocation or land acquisition per se, it may result in involuntary restriction of access to livelihoods as a result of the implementation of policies for demarcation and registration. Measures to be taken to address access restriction will be the same as that of OP 4.10, in which prior to the project implementation SSLP/DNTPSC will undertake a Social Assessment to identify the potential social risks and all key stakeholders who should participate in decision-making, and to inform the conduct of project activities in accordance with the principles of the Bank policy. Project implementation will contain clear steps for community level consultations and dialogue in designing policies, programs and regulations for CPZs and communal land areas, and the relevant provisions of OP 4.12 particularly on access restriction to resource use will be taken into consideration. Safety of Dams No The project will not finance construction or rehabilitation of any dams. OP/BP 4.37 Projects on No Project sites will not be located in the watersheds of any international waterways. International Waterways OP/BP 7.50 Projects in Disputed No The project is not located in any known disputed areas as defined under the policy. Areas OP/BP 7.60 7 A. Summary of Key Safeguards Issues 1. Describe any safeguard issues and impacts associated with the project. Identify and describe any potential large scale, significant and/or irreversible impacts. The project will contribute to the development of the policy and regulatory framework within which tenure security in communal lands in Timor-Leste will be strengthened. The support will be directed towards building capacities of the national and district offices of DNTPSC under the State Secretariat for Land and Property (SSLP) of the Ministry of Justice. There are no civil works planned under the activities and, therefore, no direct environmental or social impacts are anticipated from the proposed activities. The TA outcomes however may have longer term, downstream potential to have impacts on land use and individual and community rights. To address this this downstream potential, it is proposed to trigger a number of the safeguard policies so that TA activities may be informed by the principles of the policies. Relevant Social Aspects: That both OP 4.10 on Indigenous Peoples and OP 4.12 Involuntary Resettlement have been triggered and considering Timor-Leste’s complex social history, as part of project preparation, DNTPSC has initiated a SA to identify the potential social risks and all key stakeholders who should participate in decision-making, and to inform the conduct of project activities in accordance with Bank policy prior to the start of all project activities. It is estimated that about 97% of the country’s land area is claimed under customary rights despite its weak legal recognition, and the benefits of such a project are available to the majority of the population. Preliminary indications from the SA suggests that there is a risk that the poor and outer lying areas could be ignored from such a land administration policy dialogue. Direct efforts will be required to reach poorer, rural owners, particularly vulnerable groups like urban/peri-urban poor, women, previously displaced communities. The SA will be completed prior to implementation of other project activities and where necessary may continue during project implementation to further assess and address social issues arising out of project activities including guidance in measuring public awareness and identifying avenues for increasing participation. According to the preliminary observations from the SA, communal land areas are vulnerable to state expropriation for development projects and to land disputes with third party private investors. The project activities design and implementation will be enhanced by the observations and recommendations proposed by the SA. In turn, the project is expected to lead to positive social outcomes. A comprehensive communal land policy framework prepared through a consultative process is the principal social development outcome of the project. The existing lack of clarity and uncertainties over the legal status of communal land areas and individual holdings would be bridged. Those living in the remote areas would benefit from opportunities to engage in a dialogue similar to those available in urban centers and disadvantaged communities or those with no access to modern technology or services would gain the opportunity to engage as community level consultations to mobilize inputs are suggested. It is also noted that the government itself has insisted that the FPIC principles be adopted in all policies, procedures and guidelines drafted under the project. The SA preliminary observations have also confirmed a general interest in gaining improved access to information and services among communities on issues such as tenure security and dispute resolution. The public awareness raising sub-component has been and continues to be designed on the basis of 8 the preferences and communication constraints observed in Timor-Leste and initial work will help to develop a set of modules and materials. During preparation the Government has consulted with several civil society groups and also followed up the earlier Bank-supported policy study work on communal lands (2010). The proposed project will build on these initial discussions to expand the understanding on social, cultural factors and ensure that customary practices are duly incorporated in the policy development. The project will not be undertaking surveying or land data collection activities. It will also not engage in land registration or land expropriation. 2. Describe any potential indirect and/or long-term impacts due to anticipated future activities in the project area. As this project is limited to policy development and capacity building, no direct environmental or social impacts are anticipated from the proposed activities. The TA outcomes however may have longer term, downstream potential to have impacts on land use and individual and community rights. To address this this downstream potential, it is proposed to trigger a number of the safeguard policies so that TA activities may be informed by the principles of the policies. The proposed TA activities under the Project, on communal lands and CPZs and those activities related to the preparation of guidelines, operations manuals, and procedures required for the land agency to implement its mandate in CPZs and community lands, have very limited potential to lead to indirect long term environmental and social impacts. These impacts may arise primarily in relation to the specific mandates of the DNTPSC in terms of future demarcation and registration of community lands, of the demarcation of CPZs, and of the mediation services the DNTPSC which would be required to address disputes over boundaries and land rights. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The Project’s activities have been designed in order to enable the DNTPSC to implement demarcation and registration of communal lands and the demarcation of Community Protection Zones. The Project’s activities will also strengthen DNTPSC’s capacity to mediate land-related disputes under the principles of FPIC leading to a substantial support by the involved communities and in a participatory way. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The policy frameworks, procedures, guidelines, strategy, plans and assessments and their ToR will include environmental and social elements and policy requirements of OP 4.01 and other relevant applicable Bank safeguard policies. The relevant ToR will be cleared by the Bank. In addition, the 9 government has conducted a SA the results of which have provided inputs into the project design and will continue to do so during project implementation. The SA will be continued during implementation to further assess impacts of the project. During project preparation SSLP/DNTPSC has drafted a package of ToR for the three major activities to be financed by the project for designing policies, programs, and regulations for Community Protection Zones (CPZs) and community land including capacity building activities. These draft ToR have integrated a requirement that the principles of the Bank’s safeguard policy requirements be included in TA activities and will be finalized during project implementation. During implementation, the Government will draft an Operations Manual which upon adoption will be applicable through the SSLP/DNTPSC. This Manual will include a section on safeguards and will serve as the guide to address the potential risks and negative impacts that may otherwise be generated in administering communal land areas. Safeguards Institutional Analysis: As an institution, SSLP/DNTPSC has had an experience with a previous land projects in 2006-2007 (the USAID-funded Ita Nia Rai Project) and is familiar with relevant social issues, particularly for what concerns resettlement policies on which the Asian Development Bank (ADB) is providing a specific TA program. Following its collaboration with ADB, the government is expected to be ready with a draft on resettlement policies by end 2014. However, the proposed financed grant project will be the first experience of DNTPSC working with the Bank. Therefore, support for capacity building and TA will be required for the DNTPSC to successfully implement and manage the project. Component 2 of the Project has been designed with this goal in mind. During the project preparation, the Bank team has provided a series of informal orientation and trainings on the Bank’s environmental and social safeguards policies, specifically as part of the preparation of Social Assessment to its counterparts in SSLP/DNTPSC. During the project implementation, more formal and informal training will be provided to SSLP/DNTPSC implementation team to properly implement the social and environmental provisions resulting from the project design, including strengthening the capacity to oversee and guide the work of the consultants tasked with the completion of the Social Assessment. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. In addition, the Social Assessment identified all key stakeholders who should participate in decision- making on project design and implementation and will continue to do so during implementation; considered all of the project’s key stakeholders in a significant and adequate for the design, promotion, and execution of the project; and identified the possible risks that could hinder the achievement of project objectives and make recommendations to compensate for such risks. The assessment was based on quantitative and qualitative methods. The preliminary and continued assessment has and will continue to identify project beneficiaries and stakeholders as (a) specific focus groups such as the very poor, communal land holders at Suco (village) level, etc. These include land holders whose possessions are not protected and recognized indigenous communities and 10 customary rights holders; (b) national and district level land administration officials; and (c) civil society-the population in urban and rural areas. Although the benefits of policy development on communal lands in terms of improving tenure security have been recognized by the overwhelming majority of stakeholders, additional work during implementation will be needed to avoid the creation of false expectations. Therefore, civil society is one of the key stakeholders and beneficiaries to strengthen them into a strategic ally. Integrated planning will also help to secure support of local authorities in their land planning and indirectly support private sector investments in a transparent manner. Even though there are no direct potential safeguards issues or impacts expected to arise out of project activity since the project has no physical works, reconstruction, rehabilitation or design or analysis for such activities will be carried out under the project, other issues of inclusion of IPs and other vulnerable groups will be addressed. The key project stakeholders include communities, Suco representatives, local authorities and land offices, various line ministries and agencies (e.g., Ministry of Environment, State Secretary for Culture, Ministry of Agriculture (including the State Secretariat for Forests), Ministry of Public Works and Transport, Ministry of Finance. Consultations with these stakeholders were carried out during (a) the preparations of the feasibility report (2009-10); (b) project preparation missions; and (c) in drafting the Social and Stakeholder Assessment in November 2013-June 2014. Additional consultations will be continued during the conduct of SA during project implementation. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Safeguard Management Framework (SMF) Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank: During appraisal Date of "in-country" disclosure: N/A Date of submission to InfoShop: N/A For category A projects, date of distributing the Executive N/A Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: covered in SMF Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A Indigenous Peoples Plan/Planning Framework: covered in SMF Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A 11 Pest Management Plan: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: As a nation emerging from decades of civil strife, public access to communication facilities are not uniform and remain a challenge. Presently, the Government is using formal and informal channels of communication to disseminate information to public e.g., newspapers, television and radio and internet, and occasional personal contact too. The reach of these channels is limited in the rural areas due to lack of reliable arrangements for information dissemination, and poor power supply and facilities. To compensate these shortcomings, the project will support dissemination of information through periodic direct contact programs and support to provide orientation to district and Suco representatives and establishing a network for regular communication. The aim is to strengthen access to information on land administration and management and thereby providing impetus for gain in state capability. It will also cover consultations with local leaders on policy issues. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? No If yes, then did the Regional Environment Unit or Sector Manager (SM) N/A review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the N/A credit/loan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's N/A Infoshop? Have relevant documents been disclosed in-country in a public place in a N/A form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies 12