Document of The World Bank Report No: 68549-CO RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE PROTECTION OF LAND AND PATRIMONY OF INTERNALLY DISPLACED PERSONS – PHASE III GRANT NO. TF094596 TO REPUBLIC OF COLOMBIA June 12, 2012 ABBREVIATIONS AND ACRONYMS DPS Administrative Department for Social Prosperity/Accion Social IDP Internally Displaced Persons IOM International Organization for Migration MADR Ministry of Agriculture and Rural Development PIU Project Implementation Unit Regional Vice President: Hasan Tuluy Country Director: Gloria M. Grandolini Sector Manager: Maninder Gill Task Team Leader: Victoria Stanley 2 Restructuring Restructuring Type: Level two 1. Basic Information Project ID & Name P115630: CO Protection Land and Patrimony of IDP Country Colombia Task Team Leader Victoria Stanley Sector Manager/Director Maninder Gill/Ede Jorge Ijjasz-Vasquez Country Director Gloria M. Grandolini Original Board Approval Date 01/15/2009 Original Closing Date: 10/29/2012 Current Closing Date 10/29/2012 Proposed Closing Date [if applicable] EA Category C-Not Required Revised EA Category C-Not Required EA Completion Date Revised EA Completion Date 2. Revised Financing Plan (US$m) Source Original Revised BORR 0.00 0.00 SPBF 5.00 5.00 Total 5.00 5.00 3. Borrower Organization Department Location IOM Colombia 4. Implementing Agency Organization Department Location Special Administrative Unit for Colombia Land Restitution 5. Disbursement Estimates (US$m) Actual amount disbursed as of 03/30/2012 3.53 Fiscal Year Annual Cumulative 2012 1.83 3.53 Total 3.53 3 6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? N Does the restructured projects trigger any new safeguard policies? If yes, please select N from the checklist below and update ISDS accordingly before submitting the package. 7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes The main objective of the project is to diminish the risk of impoverishment of displaced persons and contribute to the peace-building process in Colombia by promoting the application of measures to protect their patrimonial assets, provision of land titles for those IDPs whose rights have been protected but do not have legal titles, and proposing public policy initiatives for restitution of properties to IDPs. 7b. Revised Project Development Objectives/Outcomes [if applicable] n/a 4 PROPOSED RESTRUCTURING OF THE COLOMBIA PROTECTION OF LAND AND PATRIMONY OF INTERNALLY DISPLACED PERSONS – PHASE III A. SUMMARY This Project is financed by a grant from the State and Peace Building Fund (TF094596) and the objective of the Project is to diminish the risk of impoverishment of displaced persons and contribute to the peace-building process in Colombia. Upon taking office in August 2010, the President of Colombia decided to restitute the land to the internally displaced persons and compensate the victims of the conflict. To this end, the Victims Law 1448 was promulgated on June 10, 2011. This law includes a chapter on land restitution which was based mainly on the results and experience of the Protection of Land and Patrimony of Internally Displaced Persons (IDPs) Project supported by the Bank since its inception in 2001. The Law 1448 also mandates the creation of a Special Administrative Unit on Land Restitution, as a specialized temporary entity for a ten years period, which will report to the Ministry of Agriculture and Rural Development. The new Special Administrative Unit on Land Restitution has taken over implementation of the Project as of January 1, 2012. The above change requires a change in the institutional arrangements for the Project. The client has also requested a reallocation among expenditure categories. B. PROJECT STATUS Both the Implementation Progress and Development Objective Progress ratings for the Project are satisfactory. As of May 2012, the Project has accomplished 91% of the goals regarding protection of IDPs’ land rights, 82% on land titling and 100% of the goals related to the public policies on land restitution. As of May 2012 the funds are 71% disbursed and 86% committed. C. PROPOSED CHANGES There are no changes to the development objective, components, indicators or safeguards. Institutional arrangements According to the Grant Agreement, the Presidential Agency for Social Action and International Cooperation (Accion Social)1 is the implementing entity and the International Organization for Migration (IOM) is the recipient of the grant funds. A Subsidiary Agreement (Otrosi No. 04) was signed between Accion Social and IOM on 28 October 2009 outlining the responsibilities of both parties and how they would work together to implement the Project. However, as of January 1, 2012, the Special Administrative Unit on Land Restitution (Restitution Unit) has taken responsibility as the implementing entity and the institutional arrangements should be modified in the Grant Agreement accordingly. IOM remains the 1 Accion Social has been renamed the Administrative Department for Social Prosperity (DPS). 5 ‘recipient’ and the financial and procurement arrangements have not changed.2 The disbursement arrangements and flow of funds are also unchanged and remain solely through IOM. IOM and the Restitution Unit will amend3 the existing Subsidiary Agreement to substitute the Restitution Unit for the previous implementing entity (Accion Social). The amendment to the Subsidiary Agreement has been reviewed by the Bank and is satisfactory. The Project Implementation Unit specified in the Grant Agreement (Article 1, Section 1.01 (f)) no longer exists. The implementing entity will fulfill all requirements of the former PIU. The composition of the Steering Committee will also change. The Victims Law, Article 107, defines the composition of the Steering Committee for the new Restitution Unit. The Grant will therefore be consistent with the Law and there will be one Steering Committee for the new Restitution Unit for implementation of the Law and the Grant. Financing Reallocations: A reallocation of $267,000 of grant funds from category (3) training and workshops to category (1) consultants is needed to finance additional consultancies needed to help implement the restitution, including additional policy work and support for the regional offices. This is necessary because restitution is now a legal process and must be implemented. Prior to the passage of the Victims Law 1448 in 2011, the main focus of the Project was registering the land rights of IDPs. The work on restitution was focused on policy dialogue and law reform. Now that the Victim’s Law and land restitution must be implemented, additional consultancies are needed to support the Restitution Unit to undertake this task. Category of Expenditure Allocation (US$) % of Financing Current Revised Current Revised Current Revised (1) Consultant (1) Consultant 3,156,320 3,423,320 100% 100% Services Services (2) Goods (2) Goods 344,700 344,700 100% 100% (3) Training and (3) Training 667,750 400,750 100% 100% workshops and workshops (4) Operating (4) Operating 381,230 381,230 100% 100% Costs Costs (5) non- (5) non- 450,000 450,000 100% 100% consultant consultant services services TOTAL 5,000,000 5,000,000 This is the first restructuring of the Project. 2 This has been confirmed by the Bank’s Procurement Specialist and Financial Management Specialist. 3 OTROS� No 8 AL CONVENIO MARCO DE COOPERACIÓN No. CM- 022 DE 2008 (CM-068-2008) 6